Clearway Energy, Inc. Reports Third Quarter 2024 Financial Results
Clearway Energy (CWEN) reported Q3 2024 financial results with Net Income of $27 million, Adjusted EBITDA of $354 million, and Cash Available for Distribution (CAFD) of $146 million. The company signed an agreement to invest in a 500 MW solar plus storage project and received an offer for a 320 MW storage hybridization project. CWEN reaffirmed its 2024 CAFD guidance of $395 million and initiated 2025 guidance range of $400-440 million. The quarterly dividend was increased by 1.7% to $0.4240 per share. The company is targeting CAFD per share of $2.40-2.60 in 2027, representing 7.5% to 12% annual growth from 2025.
Clearway Energy (CWEN) ha riportato i risultati finanziari del terzo trimestre del 2024 con un reddito netto di 27 milioni di dollari, un EBITDA rettificato di 354 milioni di dollari e un cash disponibile per distribuzione (CAFD) di 146 milioni di dollari. L'azienda ha firmato un accordo per investire in un progetto solare da 500 MW con stoccaggio e ha ricevuto un'offerta per un progetto di ibridazione da 320 MW. CWEN ha confermato la sua guida CAFD per il 2024 di 395 milioni di dollari e ha iniziato a fornire un intervallo di previsione per il 2025 di 400-440 milioni di dollari. Il dividendo trimestrale è stato aumentato dell'1,7% a 0,4240 dollari per azione. L'azienda punta a un CAFD per azione di 2,40-2,60 dollari nel 2027, rappresentando una crescita annuale dal 7,5% al 12% rispetto al 2025.
Clearway Energy (CWEN) informó los resultados financieros del tercer trimestre de 2024 con un ingreso neto de 27 millones de dólares, un EBITDA ajustado de 354 millones de dólares y un efectivo disponible para distribución (CAFD) de 146 millones de dólares. La compañía firmó un acuerdo para invertir en un proyecto solar de 500 MW con almacenamiento y recibió una oferta para un proyecto de hibridación de 320 MW. CWEN reafirmó su guía de CAFD para 2024 de 395 millones de dólares y comenzó a proporcionar un rango de guía para 2025 de 400-440 millones de dólares. El dividendo trimestral se incrementó en un 1,7% a 0,4240 dólares por acción. La compañía tiene como objetivo un CAFD por acción de 2,40-2,60 dólares en 2027, lo que representa un crecimiento anual del 7,5% al 12% desde 2025.
클리어웨이 에너지 (CWEN)는 2024년 3분기 재무 결과를 보고하며 순이익 2,700만 달러, 조정 EBITDA 3억 5,400만 달러, 배당 가능한 현금 (CAFD) 1억 4,600만 달러를 기록했습니다. 회사는 500MW 태양광 및 저장 프로젝트에 투자하기 위한 계약을 체결했으며, 320MW 저장 하이브리드화 프로젝트에 대한 제안을 받았습니다. CWEN은 2024년 CAFD 가이던스를 3억 9,500만 달러로 재확인했으며, 2025년 가이던스 범위를 4억에서 4억 4,000만 달러로 설정했습니다. 분기배당금은 1.7% 증가하여 주당 0.4240달러로 조정되었습니다. 회사는 2027년에 주당 CAFD 2.40-2.60달러를 목표로 하고 있으며, 이는 2025년 대비 연간 7.5%에서 12% 성장에 해당합니다.
Clearway Energy (CWEN) a rapporté ses résultats financiers pour le troisième trimestre 2024, avec un revenu net de 27 millions de dollars, un EBITDA ajusté de 354 millions de dollars et un cash disponible pour distribution (CAFD) de 146 millions de dollars. L'entreprise a signé un accord pour investir dans un projet solaire de 500 MW avec stockage et a reçu une offre pour un projet d'hybridation de 320 MW. CWEN a confirmé sa prévision de CAFD pour 2024 de 395 millions de dollars et a commencé à fournir une fourchette de prévisions pour 2025 de 400 à 440 millions de dollars. Le dividende trimestriel a été augmenté de 1,7 % pour atteindre 0,4240 dollar par action. L'entreprise vise un CAFD par action de 2,40 à 2,60 dollars d'ici 2027, représentant une croissance annuelle de 7,5 % à 12 % par rapport à 2025.
Clearway Energy (CWEN) berichtete über die finanziellen Ergebnisse des 3. Quartals 2024 mit einem Nettoeinkommen von 27 Millionen Dollar, einem bereinigten EBITDA von 354 Millionen Dollar und Cash Available for Distribution (CAFD) von 146 Millionen Dollar. Das Unternehmen hat eine Vereinbarung unterzeichnet, um in ein 500 MW Solar-Plus-Speicherprojekt zu investieren, und erhielt ein Angebot für ein 320 MW Hybridisierungsprojekt. CWEN bestätigte die CAFD-Prognose für 2024 in Höhe von 395 Millionen Dollar und leitete einen Prognosebereich für 2025 von 400-440 Millionen Dollar ein. Die vierteljährliche Dividende wurde um 1,7 % auf 0,4240 Dollar pro Aktie erhöht. Das Unternehmen strebt an, bis 2027 einen CAFD pro Aktie von 2,40-2,60 Dollar zu erreichen, was einem jährlichen Wachstum von 7,5 % bis 12 % im Vergleich zu 2025 entspricht.
- Net Income increased to $27M in Q3 2024 from $15M in Q3 2023
- Adjusted EBITDA grew to $354M from $323M year-over-year
- Renewable generation increased 27% compared to Q3 2023
- Secured new growth investment in 500 MW solar plus storage project
- Dividend increased by 1.7% to $0.4240 per share
- CAFD decreased to $146M in Q3 2024 from $156M in Q3 2023
- Conventional segment availability dropped to 87.5% from 97.9% year-over-year
- Total liquidity decreased by $239M to $1,266M from December 2023
Insights
The Q3 2024 results show mixed performance with notable highlights. Net Income increased to
The company's growth strategy is materializing with two significant developments: a
The 2025 CAFD guidance of
The operational metrics reveal important trends in the renewable portfolio. Renewable generation increased by
The strategic focus on hybrid projects (solar-plus-storage) positions CWEN well in the evolving energy landscape. The Pine Forest project's 20-year power purchase agreements provide stable long-term cash flows, while the Honeycomb storage project addresses grid reliability needs. The Capistrano Wind refinancing demonstrates effective capital management, extending debt maturity to 2033.
- Signed agreement with Clearway Group to commit to invest in a 500 MW solar plus storage project
- Received offer from Clearway Group to invest in a 320 MW storage hybridization project
- Reaffirming 2024 financial guidance and initiating 2025 financial guidance
- Increasing the quarterly dividend by
1.7% to$0.42 40 per share in the fourth quarter of 2024, or$1.69 60 per share annualized
PRINCETON, N.J., Oct. 30, 2024 (GLOBE NEWSWIRE) -- Clearway Energy, Inc. (NYSE: CWEN, CWEN.A) today reported third quarter 2024 financial results, including Net Income of
"Clearway remains well positioned to meet or exceed its 2024 financial objectives, has initiated a 2025 financial guidance range providing for robust growth, and remains committed to the financial objectives previously outlined through 2026,” said Craig Cornelius, Clearway Energy, Inc.’s President and Chief Executive Officer. “With the commitment to Pine Forest and offer to invest in Honeycomb Phase 1, we have further set the stage for sustainable long-term growth. Based on our growth outlook and updated assumptions for levelized resource adequacy pricing, we are targeting CAFD per share of
Adjusted EBITDA and Cash Available for Distribution used in this press release are non-GAAP measures and are explained in greater detail under “Non-GAAP Financial Information” below.
Overview of Financial and Operating Results
Segment Results
Table 1: Net Income/(Loss)
($ millions) | Three Months Ended | Nine Months Ended | ||||||||||||||
Segment | 9/30/24 | 9/30/23 | 9/30/24 | 9/30/23 | ||||||||||||
Conventional | 25 | 38 | 50 | 99 | ||||||||||||
Renewables | 66 | 62 | 60 | 112 | ||||||||||||
Corporate | (64 | ) | (85 | ) | (125 | ) | (152 | ) | ||||||||
Net Income/(Loss) | $ | 27 | $ | 15 | $ | (15 | ) | $ | 59 |
Table 2: Adjusted EBITDA
($ millions) | Three Months Ended | Nine Months Ended | ||||||||||||||
Segment | 9/30/24 | 9/30/23 | 9/30/24 | 9/30/23 | ||||||||||||
Conventional | 66 | 84 | 174 | 236 | ||||||||||||
Renewables | 295 | 246 | 770 | 645 | ||||||||||||
Corporate | (7 | ) | (7 | ) | (26 | ) | (24 | ) | ||||||||
Adjusted EBITDA | $ | 354 | $ | 323 | $ | 918 | $ | 857 |
Table 3: Cash from Operating Activities and Cash Available for Distribution (CAFD)
Three Months Ended | Nine Months Ended | |||||||||||||||
($ millions) | 9/30/24 | 9/30/23 | 9/30/24 | 9/30/23 | ||||||||||||
Cash from Operating Activities | $ | 301 | $ | 287 | $ | 578 | $ | 496 | ||||||||
Cash Available for Distribution (CAFD) | $ | 146 | $ | 156 | $ | 385 | $ | 289 | ||||||||
For the third quarter of 2024, the Company reported Net Income of
Operational Performance
Table 4: Selected Operating Results1
(MWh in thousands) | Three Months Ended | Nine Months Ended | ||||||||||||||
9/30/24 | 9/30/23 | 9/30/24 | 9/30/23 | |||||||||||||
Conventional Equivalent Availability Factor | 87.5 | % | 97.9 | % | 90.3 | % | 87.5 | % | ||||||||
Solar MWh generated/sold | 2,943 | 1,822 | 6,999 | 4,232 | ||||||||||||
Wind MWh generated/sold | 2,012 | 2,085 | 7,478 | 7,262 | ||||||||||||
Renewables generated/sold2 | 4,955 | 3,907 | 14,477 | 11,494 | ||||||||||||
In the third quarter of 2024, availability at the Conventional segment was lower than the third quarter of 2023 primarily due to outages at certain facilities. Generation in the Renewables segment during the third quarter of 2024 was
Liquidity and Capital Resources
Table 5: Liquidity
($ millions) | 9/30/2024 | 12/31/2023 | ||||||
Cash and Cash Equivalents: | ||||||||
Clearway Energy, Inc. and Clearway Energy LLC, excluding subsidiaries | $ | 90 | $ | 410 | ||||
Subsidiaries | 202 | 125 | ||||||
Restricted Cash: | ||||||||
Operating accounts | 183 | 176 | ||||||
Reserves, including debt service, distributions, performance obligations and other reserves | 199 | 340 | ||||||
Total Cash | $ | 674 | $ | 1,051 | ||||
Revolving credit facility availability | 592 | 454 | ||||||
Total Liquidity | $ | 1,266 | $ | 1,505 | ||||
Total liquidity as of September 30, 2024, was
As of September 30, 2024, the Company's liquidity included
Potential future sources of liquidity include excess operating cash flow, availability under the revolving credit facility, asset dispositions, and, subject to market conditions, new corporate debt and equity financings.
Growth Investments and Strategic Announcements
Pine Forest
On October 28, 2024, the Company, through an indirect subsidiary, entered into agreements to acquire cash and tax equity interests in a 500 MW solar plus storage project currently under construction in Hopkins County, Texas that is expected to reach commercial operations in 2025 for a total investment of
Honeycomb Phase 1 Offer
On October 18, 2024, Clearway Group offered the Company the opportunity to enter into partnership arrangements to own cash equity interests in a portfolio of 320 MW storage hybridization projects that is expected to reach commercial operations in 2026. The potential corporate capital commitment for the investment is expected to be approximately
Financing Update
Capistrano Wind Refinancing
On October 23, 2024, the Company, through its indirect subsidiary, Capistrano Portfolio Holdco LLC, entered into a financing agreement which included the issuance of a
Quarterly Dividend
On October 29, 2024, Clearway Energy, Inc.’s Board of Directors declared a quarterly dividend on Class A and Class C common stock of
Seasonality
Clearway Energy, Inc.’s quarterly operating results are impacted by seasonal factors, as well as weather variability which can impact renewable energy resource throughout the year. Most of the Company's revenues are generated from the months of May through September, as contracted pricing and renewable resources are at their highest levels in the Company’s portfolio. Factors driving the fluctuation in Net Income, Adjusted EBITDA, Cash from Operating Activities, and CAFD include the following:
- Higher summer capacity and energy prices from conventional assets;
- Higher solar insolation during the summer months;
- Higher wind resources during the spring and summer months;
- Renewable energy resource throughout the year
- Debt service payments which are made either quarterly or semi-annually;
- Timing of maintenance capital expenditures and the impact of both unforced and forced outages; and
- Timing of distributions from unconsolidated affiliates
The Company takes into consideration the timing of these factors to ensure sufficient funds are available for distributions and operating activities on a quarterly basis.
Financial Guidance
The Company is reaffirming its 2024 full year CAFD guidance of
The Company is initiating a 2025 full year CAFD guidance at a
Earnings Conference Call
On October 30, 2024, Clearway Energy, Inc. will host a conference call at 8:00 a.m. Eastern to discuss these results. Investors, the news media and others may access the live webcast of the conference call and accompanying presentation materials by logging on to Clearway Energy, Inc.’s website at http://www.clearwayenergy.com and clicking on “Presentations & Webcasts” under “Investor Relations.”
About Clearway Energy, Inc.
Clearway Energy, Inc. is one of the largest owners of clean energy generation assets in the US and is leading the transition to a world powered by clean energy. Our portfolio comprises approximately 11.7 GW of gross capacity in 26 states, including 9 GW of wind, solar, and energy storage and over 2.7 GW of dispatchable power generation providing critical grid reliability services. Through our diversified and primarily contracted clean energy portfolio, Clearway Energy endeavors to provide our investors with stable and growing dividend income. Clearway Energy, Inc.’s Class C and Class A common stock are traded on the New York Stock Exchange under the symbols CWEN and CWEN.A, respectively. Clearway Energy, Inc. is sponsored by our controlling investor, Clearway Energy Group LLC. For more information, visit investor.clearwayenergy.com.
Safe Harbor Disclosure
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements are subject to certain risks, uncertainties and assumptions, and typically can be identified by the use of words such as “expect,” “estimate,” "target," “anticipate,” “forecast,” “plan,” “outlook,” “believe” and similar terms. Such forward-looking statements include, but are not limited to, statements regarding, Clearway Energy, Inc.’s (the “Company’s”) dividend expectations and its operations, its facilities and its financial results, statements regarding the likelihood, terms, timing and/or consummation of the transactions described above, the potential benefits, opportunities, and results with respect to the transactions, including the Company’s future relationship and arrangements with Global Infrastructure Partners, TotalEnergies, and Clearway Energy Group (collectively and together with their affiliates, “Related Persons”), as well as the Company's Net Income, Adjusted EBITDA, Cash from Operating Activities, Cash Available for Distribution, the Company’s future revenues, income, indebtedness, capital structure, strategy, plans, expectations, objectives, projected financial performance and/or business results and other future events, and views of economic and market conditions.
Although the Company believes that the expectations are reasonable at this time, it can give no assurance that these expectations will prove to be correct, and actual results may vary materially. Factors that could cause actual results to differ materially from those contemplated above include, among others, the Company's ability to maintain and grow its quarterly dividend, impacts related to COVID-19 (including any variant of the virus) or any other pandemic, risks relating to the Company's relationships with its sponsors, the failure to identify, execute or successfully implement acquisitions or dispositions (including receipt of third party consents and regulatory approvals), risks related to the Company's ability to acquire assets, including risks that offered or committed transactions from Related Persons may not be approved, on the terms proposed or otherwise, by the Corporate Governance, Conflicts, and Nominating Committee of the Company’s Board of Directors (the “GCN”), or if approved, timely consummated; from its sponsors, the Company’s ability to borrow additional funds and access capital markets due to its indebtedness, corporate structure, market conditions or otherwise, hazards customary in the power industry, weather conditions, including wind and solar performance, the Company’s ability to operate its businesses efficiently, manage maintenance capital expenditures and costs effectively, and generate earnings and cash flows from its asset-based businesses in relation to its debt and other obligations, the willingness and ability of counterparties to the Company’s offtake agreements to fulfill their obligations under such agreements, the Company's ability to enter into new contracts as existing contracts expire, changes in government regulations, operating and financial restrictions placed on the Company that are contained in the project-level debt facilities and other agreements of the Company and its subsidiaries, and cyber terrorism and inadequate cybersecurity. Furthermore, any dividends are subject to available capital, market conditions, and compliance with associated laws and regulations.
In addition, this release contains reference to certain offered and committed transactions with Related Persons, which transactions are subject to the review, negotiation and approval of the GCN. Transactions referred to as “offered” (or any variation thereof) have been presented to the Company by the Related Persons, but the terms remain subject to review and negotiation by the GCN. Transactions may have been recently offered or undergone more extensive negotiations. Unless otherwise noted, no assumptions should be made with respect to the stage of negotiation of an offered transaction, nor should any assumptions be made that any offered transaction will be approved, committed or ultimately consummated on the terms described herein. Transactions referred to as “committed” or “signed” (or any variation thereof) represent transactions which have been approved by the GCN and for which definitive agreements have been delivered; however, such transactions have not yet been consummated and remain subject to various risks and uncertainties (including financing, third party consents and arrangements and regulatory approvals). The Company provides information regarding offered and committed transactions believing that such information is useful to an understanding of the Company’s business and operations; however, given the uncertainty of such transactions, undue reliance should not be placed on any expectations regarding such transactions and the Company can give no assurance that such expectations will prove to be correct, as actual results may vary materially.
The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The Cash Available for Distribution are estimates as of today’s date, October 30, 2024, and are based on assumptions believed to be reasonable as of this date. The Company expressly disclaims any current intention to update such guidance. The foregoing review of factors that could cause The Company's actual results to differ materially from those contemplated in the forward-looking statements included in this news release should be considered in connection with information regarding risks and uncertainties that may affect The Company's future results included in The Company's filings with the Securities and Exchange Commission at www.sec.gov. In addition, The Company makes available free of charge at www.clearwayenergy.com, copies of materials it files with, or furnishes to, the Securities and Exchange Commission.
# # #
Contacts: | |
Investors: | Media: |
Akil Marsh | Zadie Oleksiw |
investor.relations@clearwayenergy.com | media@clearwayenergy.com |
609-608-1500 | 202-836-5754 |
CLEARWAY ENERGY, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | |||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
(In millions, except per share amounts) | 2024 | 2023 | 2024 | 2023 | |||||||||||
Operating Revenues | |||||||||||||||
Total operating revenues | $ | 486 | $ | 371 | $ | 1,115 | $ | 1,065 | |||||||
Operating Costs and Expenses | |||||||||||||||
Cost of operations, exclusive of depreciation, amortization and accretion shown separately below | 135 | 134 | 378 | 360 | |||||||||||
Depreciation, amortization and accretion | 164 | 133 | 471 | 389 | |||||||||||
General and administrative | 9 | 9 | 29 | 28 | |||||||||||
Transaction and integration costs | — | 1 | 4 | 3 | |||||||||||
Total operating costs and expenses | 308 | 277 | 882 | 780 | |||||||||||
Operating Income | 178 | 94 | 233 | 285 | |||||||||||
Other Income (Expense) | |||||||||||||||
Equity in earnings of unconsolidated affiliates | 13 | 11 | 33 | 11 | |||||||||||
Other income, net | 8 | 15 | 36 | 32 | |||||||||||
Loss on debt extinguishment | — | — | (3 | ) | — | ||||||||||
Interest expense | (139 | ) | (48 | ) | (284 | ) | (202 | ) | |||||||
Total other expense, net | (118 | ) | (22 | ) | (218 | ) | (159 | ) | |||||||
Income Before Income Taxes | 60 | 72 | 15 | 126 | |||||||||||
Income tax expense | 33 | 57 | 30 | 67 | |||||||||||
Net Income (Loss) | 27 | 15 | (15 | ) | 59 | ||||||||||
Less: Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests | (9 | ) | 11 | (100 | ) | 17 | |||||||||
Net Income Attributable to Clearway Energy, Inc. | $ | 36 | $ | 4 | $ | 85 | $ | 42 | |||||||
Earnings Per Share Attributable to Clearway Energy, Inc. Class A and Class C Common Stockholders | |||||||||||||||
Weighted average number of Class A common shares outstanding - basic and diluted | 35 | 35 | 35 | 35 | |||||||||||
Weighted average number of Class C common shares outstanding - basic and diluted | 83 | 82 | 83 | 82 | |||||||||||
Earnings Per Weighted Average Class A and Class C Common Share - Basic and Diluted | $ | 0.31 | $ | 0.03 | $ | 0.72 | $ | 0.36 | |||||||
Dividends Per Class A Common Share | $ | 0.4171 | $ | 0.3891 | $ | 1.2306 | $ | 1.1454 | |||||||
Dividends Per Class C Common Share | $ | 0.4171 | $ | 0.3891 | $ | 1.2306 | $ | 1.1454 |
CLEARWAY ENERGY, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) | |||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
(In millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||
Net Income (Loss) | $ | 27 | $ | 15 | $ | (15 | ) | $ | 59 | ||||||
Other Comprehensive (Loss) Income | |||||||||||||||
Unrealized (loss) gain on derivatives and changes in accumulated OCI, net of income tax (benefit) expense of | (13 | ) | 8 | (13 | ) | 8 | |||||||||
Other comprehensive (loss) income | (13 | ) | 8 | (13 | ) | 8 | |||||||||
Comprehensive Income (Loss) | 14 | 23 | (28 | ) | 67 | ||||||||||
Less: Comprehensive (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests | (18 | ) | 17 | (107 | ) | 23 | |||||||||
Comprehensive Income Attributable to Clearway Energy, Inc. | $ | 32 | $ | 6 | $ | 79 | $ | 44 |
CLEARWAY ENERGY, INC. CONSOLIDATED BALANCE SHEETS | |||||||
(In millions, except shares) | September 30, 2024 | December 31, 2023 | |||||
ASSETS | (Unaudited) | ||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 292 | $ | 535 | |||
Restricted cash | 382 | 516 | |||||
Accounts receivable — trade | 199 | 171 | |||||
Inventory | 63 | 55 | |||||
Derivative instruments | 34 | 41 | |||||
Note receivable — affiliate | — | 174 | |||||
Prepayments and other current assets | 81 | 68 | |||||
Total current assets | 1,051 | 1,560 | |||||
Property, plant and equipment, net | 9,895 | 9,526 | |||||
Other Assets | |||||||
Equity investments in affiliates | 322 | 360 | |||||
Intangible assets for power purchase agreements, net | 2,170 | 2,303 | |||||
Other intangible assets, net | 70 | 71 | |||||
Derivative instruments | 70 | 82 | |||||
Right-of-use assets, net | 548 | 597 | |||||
Other non-current assets | 123 | 202 | |||||
Total other assets | 3,303 | 3,615 | |||||
Total Assets | $ | 14,249 | $ | 14,701 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current Liabilities | |||||||
Current portion of long-term debt | $ | 412 | $ | 558 | |||
Accounts payable — trade | 78 | 130 | |||||
Accounts payable — affiliates | 14 | 31 | |||||
Derivative instruments | 51 | 51 | |||||
Accrued interest expense | 35 | 57 | |||||
Accrued expenses and other current liabilities | 71 | 79 | |||||
Total current liabilities | 661 | 906 | |||||
Other Liabilities | |||||||
Long-term debt | 6,732 | 7,479 | |||||
Deferred income taxes | 58 | 127 | |||||
Derivative instruments | 279 | 281 | |||||
Long-term lease liabilities | 570 | 627 | |||||
Other non-current liabilities | 316 | 286 | |||||
Total other liabilities | 7,955 | 8,800 | |||||
Total Liabilities | 8,616 | 9,706 | |||||
Redeemable noncontrolling interest in subsidiaries | 9 | 1 | |||||
Commitments and Contingencies | |||||||
Stockholders’ Equity | |||||||
Preferred stock, | — | — | |||||
Class A, Class B, Class C and Class D common stock, | 1 | 1 | |||||
Additional paid-in capital | 1,831 | 1,732 | |||||
Retained earnings | 301 | 361 | |||||
Accumulated other comprehensive income | 1 | 7 | |||||
Noncontrolling interest | 3,490 | 2,893 | |||||
Total Stockholders’ Equity | 5,624 | 4,994 | |||||
Total Liabilities and Stockholders’ Equity | $ | 14,249 | $ | 14,701 |
CLEARWAY ENERGY, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | |||||||
Nine months ended September 30, | |||||||
(In millions) | 2024 | 2023 | |||||
Cash Flows from Operating Activities | |||||||
Net (Loss) Income | $ | (15 | ) | $ | 59 | ||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||
Equity in earnings of unconsolidated affiliates | (33 | ) | (11 | ) | |||
Distributions from unconsolidated affiliates | 21 | 17 | |||||
Depreciation, amortization and accretion | 471 | 389 | |||||
Amortization of financing costs and debt discounts | 10 | 9 | |||||
Amortization of intangibles | 137 | 139 | |||||
Loss on debt extinguishment | 3 | — | |||||
Reduction in carrying amount of right-of-use assets | 11 | 11 | |||||
Changes in deferred income taxes | 23 | 49 | |||||
Changes in derivative instruments and amortization of accumulated OCI | 34 | (64 | ) | ||||
Cash provided by (used in) changes in other working capital: | |||||||
Changes in prepaid and accrued liabilities for tolling agreements | 3 | (23 | ) | ||||
Changes in other working capital | (87 | ) | (79 | ) | |||
Net Cash Provided by Operating Activities | 578 | 496 | |||||
Cash Flows from Investing Activities | |||||||
Acquisition of Drop Down Assets, net of cash acquired | (671 | ) | 100 | ||||
Capital expenditures | (237 | ) | (143 | ) | |||
Return of investment from unconsolidated affiliates | 38 | 14 | |||||
Decrease (increase) in note receivable — affiliate | 184 | (215 | ) | ||||
Investments in unconsolidated affiliates | — | (28 | ) | ||||
Other | 12 | 1 | |||||
Net Cash Used in Investing Activities | (674 | ) | (271 | ) | |||
Cash Flows from Financing Activities | |||||||
Contributions from noncontrolling interests, net of distributions | 1,385 | 294 | |||||
Payments of dividends and distributions | (249 | ) | (231 | ) | |||
Tax-related distributions | — | (21 | ) | ||||
Proceeds from the issuance of long-term debt | 255 | 293 | |||||
Payments of debt issuance costs | (7 | ) | (14 | ) | |||
Payments for long-term debt | (1,664 | ) | (384 | ) | |||
Other | (1 | ) | (2 | ) | |||
Net Cash Used in Financing Activities | (281 | ) | (65 | ) | |||
Net (Decrease) Increase in Cash, Cash Equivalents and Restricted Cash | (377 | ) | 160 | ||||
Cash, Cash Equivalents and Restricted Cash at Beginning of Period | 1,051 | 996 | |||||
Cash, Cash Equivalents and Restricted Cash at End of Period | $ | 674 | $ | 1,156 |
CLEARWAY ENERGY, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY For the Nine Months Ended September 30, 2024 (Unaudited) | |||||||||||||||||||||||||||
(In millions) | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Noncontrolling Interest | Total Stockholders’ Equity | ||||||||||||||||||||
Balances at December 31, 2023 | $ | — | $ | 1 | $ | 1,732 | $ | 361 | $ | 7 | $ | 2,893 | $ | 4,994 | |||||||||||||
Net loss | — | — | — | (2 | ) | — | (45 | ) | (47 | ) | |||||||||||||||||
Unrealized (loss) gain on derivatives and changes in accumulated OCI, net of tax | — | — | — | — | (2 | ) | 1 | (1 | ) | ||||||||||||||||||
Distributions to CEG, net of contributions, cash | — | — | — | — | — | (1 | ) | (1 | ) | ||||||||||||||||||
Contributions from noncontrolling interests, net of distributions, cash | — | — | — | — | — | 215 | 215 | ||||||||||||||||||||
Transfers of assets under common control | — | — | 2 | — | — | (42 | ) | (40 | ) | ||||||||||||||||||
Non-cash adjustments for change in tax basis | — | — | 6 | — | — | — | 6 | ||||||||||||||||||||
Stock-based compensation | — | — | 1 | — | — | — | 1 | ||||||||||||||||||||
Common stock dividends and distributions to CEG unit holders | — | — | — | (47 | ) | — | (34 | ) | (81 | ) | |||||||||||||||||
Other | — | — | — | (1 | ) | — | — | (1 | ) | ||||||||||||||||||
Balances at March 31, 2024 | — | 1 | 1,741 | 311 | 5 | 2,987 | 5,045 | ||||||||||||||||||||
Net income (loss) | — | — | — | 51 | — | (51 | ) | — | |||||||||||||||||||
Unrealized gain on derivatives and changes in accumulated OCI, net of tax | — | — | — | — | — | 1 | 1 | ||||||||||||||||||||
Contributions from CEG, net of distributions, cash | — | — | — | — | — | 222 | 222 | ||||||||||||||||||||
Contributions from noncontrolling interests, net of distributions, cash | — | — | — | — | — | 988 | 988 | ||||||||||||||||||||
Distributions to noncontrolling interests, net of contributions, non-cash | — | — | — | — | — | (1 | ) | (1 | ) | ||||||||||||||||||
Transfers of assets under common control | — | — | 5 | — | — | (549 | ) | (544 | ) | ||||||||||||||||||
Non-cash adjustments for change in tax basis | — | — | 85 | — | — | — | 85 | ||||||||||||||||||||
Stock-based compensation | — | — | (1 | ) | — | — | — | (1 | ) | ||||||||||||||||||
Common stock dividends and distributions to CEG unit holders | — | — | — | (48 | ) | — | (35 | ) | (83 | ) | |||||||||||||||||
Other | — | — | — | — | — | (1 | ) | (1 | ) | ||||||||||||||||||
Balances at June 30, 2024 | — | 1 | 1,830 | 314 | 5 | 3,561 | 5,711 | ||||||||||||||||||||
Net income (loss) | — | — | — | 36 | — | (13 | ) | 23 | |||||||||||||||||||
Unrealized loss on derivatives and changes in accumulated OCI, net of tax | — | — | — | — | (4 | ) | (9 | ) | (13 | ) | |||||||||||||||||
Contributions from CEG, cash | — | — | — | — | — | 6 | 6 | ||||||||||||||||||||
Distributions to noncontrolling interests, net of contributions, cash | — | — | — | — | — | (19 | ) | (19 | ) | ||||||||||||||||||
Stock-based compensation | — | — | 1 | — | — | — | 1 | ||||||||||||||||||||
Common stock dividends and distributions to CEG unit holders | — | — | — | (49 | ) | — | (36 | ) | (85 | ) | |||||||||||||||||
Balances at September 30, 2024 | $ | — | $ | 1 | $ | 1,831 | $ | 301 | $ | 1 | $ | 3,490 | $ | 5,624 |
CLEARWAY ENERGY, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY For the Nine Months Ended September 30, 2023 (Unaudited) | |||||||||||||||||||||||||||
(In millions) | Preferred Stock | Common Stock | Additional} Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Noncontrolling Interest | Total Stockholders’ Equity | ||||||||||||||||||||
Balances at December 31, 2022 | $ | — | $ | 1 | $ | 1,761 | $ | 463 | $ | 9 | $ | 1,792 | $ | 4,026 | |||||||||||||
Net loss | — | — | — | — | — | (43 | ) | (43 | ) | ||||||||||||||||||
Unrealized loss on derivatives and changes in accumulated OCI, net of tax | — | — | — | — | (1 | ) | (2 | ) | (3 | ) | |||||||||||||||||
Contributions from CEG, net of distributions, cash | — | — | — | — | — | 30 | 30 | ||||||||||||||||||||
Contributions from noncontrolling interests, net of distributions, cash | — | — | — | — | — | 215 | 215 | ||||||||||||||||||||
Transfers of assets under common control | — | — | (52 | ) | — | — | 46 | (6 | ) | ||||||||||||||||||
Non-cash adjustments for change in tax basis | — | — | 9 | — | — | — | 9 | ||||||||||||||||||||
Stock based compensation | — | — | 1 | — | — | — | 1 | ||||||||||||||||||||
Common stock dividends and distributions to CEG unit holders | — | — | — | (44 | ) | — | (32 | ) | (76 | ) | |||||||||||||||||
Balances at March 31, 2023 | — | 1 | 1,719 | 419 | 8 | 2,006 | 4,153 | ||||||||||||||||||||
Net income | — | — | — | 38 | — | 40 | 78 | ||||||||||||||||||||
Unrealized gain on derivatives and changes in accumulated OCI, net of tax | — | — | — | — | 1 | 2 | 3 | ||||||||||||||||||||
Distributions to CEG, net of contributions, cash | — | — | — | — | — | (4 | ) | (4 | ) | ||||||||||||||||||
Distributions to noncontrolling interests, net of contributions, cash | — | — | — | — | — | (5 | ) | (5 | ) | ||||||||||||||||||
Tax-related distribution | — | — | — | — | — | (19 | ) | (19 | ) | ||||||||||||||||||
Stock based compensation | — | — | (1 | ) | — | — | — | (1 | ) | ||||||||||||||||||
Common stock dividends and distributions to CEG unit holders | — | — | — | (45 | ) | — | (32 | ) | (77 | ) | |||||||||||||||||
Other | — | — | — | — | — | (1 | ) | (1 | ) | ||||||||||||||||||
Balances at June 30, 2023 | — | 1 | 1,718 | 412 | 9 | 1,987 | 4,127 | ||||||||||||||||||||
Net income | — | — | — | 4 | — | 6 | 10 | ||||||||||||||||||||
Unrealized gain on derivatives and changes in accumulated OCI, net of tax | — | — | — | — | 2 | 6 | 8 | ||||||||||||||||||||
Distributions to CEG, cash | — | — | — | — | — | (1 | ) | (1 | ) | ||||||||||||||||||
Contributions from noncontrolling interests, net of distributions, cash | — | — | — | — | — | 12 | 12 | ||||||||||||||||||||
Distributions to noncontrolling interests, non-cash | — | — | — | — | — | (7 | ) | (7 | ) | ||||||||||||||||||
Tax-related distribution | — | — | — | — | — | (2 | ) | (2 | ) | ||||||||||||||||||
Transfer of assets under common control | — | — | — | — | — | 171 | 171 | ||||||||||||||||||||
Non-cash adjustments for change in tax basis | — | — | 8 | — | — | — | 8 | ||||||||||||||||||||
Stock based compensation | — | — | 2 | (1 | ) | — | — | 1 | |||||||||||||||||||
Common stock dividends and distributions to CEG unit holders | — | — | — | (45 | ) | — | (33 | ) | (78 | ) | |||||||||||||||||
Other | — | — | — | — | — | 1 | 1 | ||||||||||||||||||||
Balances at September 30, 2023 | $ | — | $ | 1 | $ | 1,728 | $ | 370 | $ | 11 | $ | 2,140 | $ | 4,250 |
Appendix Table A-1: Three Months Ended September 30, 2024, Segment Adjusted EBITDA Reconciliation
The following table summarizes the calculation of Adjusted EBITDA and provides a reconciliation to Net Income/(Loss):
($ in millions) | Conventional | Renewables | Corporate | Total | ||||||||||||
Net Income (Loss) | $ | 25 | $ | 66 | $ | (64 | ) | $ | 27 | |||||||
Plus: | ||||||||||||||||
Income Tax Expense | — | — | 33 | 33 | ||||||||||||
Interest Expense, net | 8 | 100 | 23 | 131 | ||||||||||||
Depreciation, Amortization, and ARO | 29 | 135 | — | 164 | ||||||||||||
Contract Amortization | 5 | 41 | — | 46 | ||||||||||||
Mark to Market (MtM) Gains on economic hedges | (4 | ) | (68 | ) | — | (72 | ) | |||||||||
Other non-recurring | — | 9 | — | 9 | ||||||||||||
Adjustments to reflect CWEN’s pro-rata share of Adjusted EBITDA from Unconsolidated Affiliates | 3 | 12 | — | 15 | ||||||||||||
Non-Cash Equity Compensation | — | — | 1 | 1 | ||||||||||||
Adjusted EBITDA | $ | 66 | $ | 295 | $ | (7 | ) | $ | 354 |
Appendix Table A-2: Three Months Ended September 30, 2023, Segment Adjusted EBITDA Reconciliation
The following table summarizes the calculation of Adjusted EBITDA and provides a reconciliation to Net Income/(Loss):
($ in millions) | Conventional | Renewables | Corporate | Total | ||||||||||||
Net Income (Loss) | $ | 38 | $ | 62 | $ | (85 | ) | $ | 15 | |||||||
Plus: | ||||||||||||||||
Income Tax Expense | — | — | 57 | 57 | ||||||||||||
Interest Expense, net | 7 | 8 | 19 | 34 | ||||||||||||
Depreciation, Amortization, and ARO | 33 | 100 | — | 133 | ||||||||||||
Contract Amortization | 5 | 42 | — | 47 | ||||||||||||
Mark to Market (MtM) Losses/(Gains) on economic hedges | (3 | ) | 21 | — | 18 | |||||||||||
Transaction and integration costs | — | — | 1 | 1 | ||||||||||||
Other non-recurring | 1 | — | — | 1 | ||||||||||||
Adjustments to reflect CWEN’s pro-rata share of Adjusted EBITDA from Unconsolidated Affiliates | 3 | 13 | — | 16 | ||||||||||||
Non-Cash Equity Compensation | — | — | 1 | 1 | ||||||||||||
Adjusted EBITDA | $ | 84 | $ | 246 | $ | (7 | ) | $ | 323 |
Appendix Table A-3: Nine Months Ended September 30, 2024, Segment Adjusted EBITDA Reconciliation
The following table summarizes the calculation of Adjusted EBITDA and provides a reconciliation to Net Income/(Loss):
($ in millions) | Conventional | Renewables | Corporate | Total | ||||||||||||
Net Income (Loss) | $ | 50 | $ | 60 | $ | (125 | ) | $ | (15 | ) | ||||||
Plus: | ||||||||||||||||
Income Tax Expense | — | — | 30 | 30 | ||||||||||||
Interest Expense, net | 21 | 163 | 64 | 248 | ||||||||||||
Depreciation, Amortization, and ARO | 88 | 383 | — | 471 | ||||||||||||
Contract Amortization | 14 | 124 | — | 138 | ||||||||||||
Loss on Debt Extinguishment | — | 3 | — | 3 | ||||||||||||
Mark to Market (MtM) (Gain)/Loss on economic hedges | (9 | ) | 4 | — | (5 | ) | ||||||||||
Transaction and Integration costs | — | — | 4 | 4 | ||||||||||||
Other Non-recurring | 1 | 8 | — | 9 | ||||||||||||
Adjustments to reflect CWEN’s pro-rata share of Adjusted EBITDA from Unconsolidated Affiliates | 9 | 25 | — | 34 | ||||||||||||
Non-Cash Equity Compensation | — | — | 1 | 1 | ||||||||||||
Adjusted EBITDA | $ | 174 | $ | 770 | $ | (26 | ) | $ | 918 |
Appendix Table A-4: Nine Months Ended September 30, 2023, Segment Adjusted EBITDA Reconciliation
The following table summarizes the calculation of Adjusted EBITDA and provides a reconciliation to Net Income/(Loss):
($ in millions) | Conventional | Renewables | Corporate | Total | ||||||||||||
Net Income (Loss) | $ | 99 | $ | 112 | $ | (152 | ) | $ | 59 | |||||||
Plus: | ||||||||||||||||
Income Tax Expense | — | — | 67 | 67 | ||||||||||||
Interest Expense, net | 24 | 91 | 55 | 170 | ||||||||||||
Depreciation, Amortization, and ARO | 98 | 291 | — | 389 | ||||||||||||
Contract Amortization | 16 | 125 | — | 141 | ||||||||||||
Mark to Market (MtM) (Gain)/Loss on economic hedges | (3 | ) | (24 | ) | — | (27 | ) | |||||||||
Transaction and Integration costs | — | — | 3 | 3 | ||||||||||||
Other Non-recurring | (7 | ) | 5 | — | (2 | ) | ||||||||||
Adjustments to reflect CWEN’s pro-rata share of Adjusted EBITDA from Unconsolidated Affiliates | 9 | 45 | — | 54 | ||||||||||||
Non-Cash Equity Compensation | — | — | 3 | 3 | ||||||||||||
Adjusted EBITDA | $ | 236 | $ | 645 | $ | (24 | ) | $ | 857 |
Appendix Table A-5: Cash Available for Distribution Reconciliation
The following table summarizes the calculation of Cash Available for Distribution and provides a reconciliation to Cash from Operating Activities:
Three Months Ended | Nine Months Ended | ||||||||||||||
($ in millions) | 9/30/24 | 9/30/23 | 9/30/24 | 9/30/23 | |||||||||||
Adjusted EBITDA | $ | 354 | $ | 323 | $ | 918 | $ | 857 | |||||||
Cash interest paid3 | (96 | ) | (89 | ) | (252 | ) | (237 | ) | |||||||
Changes in prepaid and accrued liabilities for tolling agreements | 19 | 33 | 3 | (23 | ) | ||||||||||
Adjustments to reflect sale-type leases and payments for lease expenses | (10 | ) | 2 | (5 | ) | 5 | |||||||||
Pro-rata Adjusted EBITDA from unconsolidated affiliates | (25 | ) | (28 | ) | (64 | ) | (64 | ) | |||||||
Distributions from unconsolidated affiliates | 6 | 6 | 21 | 17 | |||||||||||
Changes in working capital and other | 53 | 40 | (43 | ) | (59 | ) | |||||||||
Cash from Operating Activities | 301 | 287 | 578 | 496 | |||||||||||
Changes in working capital and other | (53 | ) | (40 | ) | 43 | 59 | |||||||||
Return of investment from unconsolidated affiliates4 | 3 | 4 | 10 | 14 | |||||||||||
Net contributions (to)/from non-controlling interest5 | (14 | ) | (8 | ) | (43 | ) | (28 | ) | |||||||
Maintenance capital expenditures | (4 | ) | (9 | ) | (8 | ) | (22 | ) | |||||||
Principal amortization of indebtedness6 | (87 | ) | (78 | ) | (205 | ) | (230 | ) | |||||||
Cash Available for Distribution before Adjustments | $ | 146 | $ | 156 | $ | 375 | $ | 289 | |||||||
2024 Net impact of drop downs from timing of construction debt service | — | — | 10 | — | |||||||||||
Cash Available for Distribution7 | $ | 146 | $ | 156 | $ | 385 | $ | 289 |
Appendix Table A-6: Nine Months Ended September 30, 2024, Sources and Uses of Liquidity
The following table summarizes the sources and uses of liquidity in 2024:
Nine Months Ended | ||||
($ in millions) | 9/30/24 | |||
Sources: | ||||
Contributions from noncontrolling interests, net of distributions | 1,385 | |||
Net cash provided by operating activities | 578 | |||
Proceeds from issuance of long-term debt | 255 | |||
Decrease in note receivable — affiliate | 184 | |||
Return of investments from unconsolidated affiliates | 38 | |||
Other net cash inflows | 4 | |||
Uses: | ||||
Payments for long-term debt | (1,664 | ) | ||
Acquisition of Drop Down Assets, net of cash acquired | (671 | ) | ||
Payments of dividends and distributions | (249 | ) | ||
Capital expenditures | (237 | ) | ||
Change in total cash, cash equivalents, and restricted cash | $ | (377 | ) |
Appendix Table A-7: Adjusted EBITDA and Cash Available for Distribution Guidance
($ in millions) | 2024 Full Year Guidance | 2025 Full Year Guidance Range | ||||
Net Income | 90 | (40) - 0 | ||||
Income Tax Expense | 20 | (4 | ) | |||
Interest Expense, net | 330 | 335 | ||||
Depreciation, Amortization, and ARO Expense | 680 | 840 | ||||
Adjustment to reflect CWEN share of Adjusted EBITDA in unconsolidated affiliates | 50 | 61 | ||||
Non-Cash Equity Compensation | 5 | 3 | ||||
Adjusted EBITDA | 1,175 | 1,195 - 1,235 | ||||
Cash interest paid | (310 | ) | (314 | ) | ||
Changes in prepaid and accrued liabilities for tolling agreements | (5 | ) | (4 | ) | ||
Adjustments to reflect sale-type leases and payments for lease expenses | 10 | 6 | ||||
Pro-rata Adjusted EBITDA from unconsolidated affiliates | (85 | ) | (83 | ) | ||
Cash distributions from unconsolidated affiliates8 | 45 | 46 | ||||
Income Tax Payments | — | (2 | ) | |||
Cash from Operating Activities | 830 | 844 - 884 | ||||
Net distributions to non-controlling interest9 | (100 | ) | (119 | ) | ||
Cash receipts from notes receivable | — | 3 | ||||
Maintenance capital expenditures | (40 | ) | (24 | ) | ||
Principal amortization of indebtedness10 | (295 | ) | (304 | ) | ||
Cash Available for Distribution | 395 | 400 - 440 |
Appendix Table A-8: Adjusted EBITDA and Cash Available for Distribution Growth Projects
($ in millions) | Pine Forest 5 Year Ave. 2026-2030 | ||
Net Income | 13 | ||
Interest Expense, net | 6 | ||
Depreciation, Amortization, and ARO Expense | 22 | ||
Adjusted EBITDA | 41 | ||
Cash interest paid | (6 | ) | |
Cash from Operating Activities | 35 | ||
Net distributions (to)/from non-controlling interest | (18 | ) | |
Principal amortization of indebtedness | (1 | ) | |
Estimated Cash Available for Distribution | 16 | ||
Non-GAAP Financial Information
EBITDA and Adjusted EBITDA
EBITDA, Adjusted EBITDA, and Cash Available for Distribution (CAFD) are non-GAAP financial measures. These measurements are not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures of performance. The presentation of non-GAAP financial measures should not be construed as an inference that Clearway Energy’s future results will be unaffected by unusual or non-recurring items.
EBITDA represents net income before interest (including loss on debt extinguishment), taxes, depreciation and amortization. EBITDA is presented because Clearway Energy considers it an important supplemental measure of its performance and believes debt and equity holders frequently use EBITDA to analyze operating performance and debt service capacity. EBITDA has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of our operating results as reported under GAAP. Some of these limitations are:
- EBITDA does not reflect cash expenditures, or future requirements for capital expenditures, or contractual commitments;
- EBITDA does not reflect changes in, or cash requirements for, working capital needs;
- EBITDA does not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on debt or cash income tax payments;
- Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA does not reflect any cash requirements for such replacements; and
- Other companies in this industry may calculate EBITDA differently than Clearway Energy does, limiting its usefulness as a comparative measure.
Because of these limitations, EBITDA should not be considered as a measure of discretionary cash available to use to invest in the growth of Clearway Energy’s business. Clearway Energy compensates for these limitations by relying primarily on our GAAP results and using EBITDA and Adjusted EBITDA only supplementally. See the statements of cash flow included in the financial statements that are a part of this news release.
Adjusted EBITDA is presented as a further supplemental measure of operating performance. Adjusted EBITDA represents EBITDA adjusted for mark-to-market gains or losses, non-cash equity compensation expense, asset write offs and impairments; and factors which we do not consider indicative of future operating performance such as transition and integration related costs. The reader is encouraged to evaluate each adjustment and the reasons Clearway Energy considers it appropriate for supplemental analysis. As an analytical tool, Adjusted EBITDA is subject to all of the limitations applicable to EBITDA. In addition, in evaluating Adjusted EBITDA, the reader should be aware that in the future Clearway Energy may incur expenses similar to the adjustments in this news release.
Management believes Adjusted EBITDA is useful to investors and other users of our financial statements in evaluating our operating performance because it provides them with an additional tool to compare business performance across companies and across periods. This measure is widely used by investors to measure a company’s operating performance without regard to items such as interest expense, taxes, depreciation and amortization, which can vary substantially from company to company depending upon accounting methods and book value of assets, capital structure and the method by which assets were acquired.
Additionally, Management believes that investors commonly adjust EBITDA information to eliminate the effect of restructuring and other expenses, which vary widely from company to company and impair comparability. As we define it, Adjusted EBITDA represents EBITDA adjusted for the effects of impairment losses, gains or losses on sales, non-cash equity compensation expense, dispositions or retirements of assets, any mark-to-market gains or losses from accounting for derivatives, adjustments to exclude gains or losses on the repurchase, modification or extinguishment of debt, and any extraordinary, unusual or non-recurring items plus adjustments to reflect the Adjusted EBITDA from our unconsolidated investments. We adjust for these items in our Adjusted EBITDA as our management believes that these items would distort their ability to efficiently view and assess our core operating trends.
In summary, our management uses Adjusted EBITDA as a measure of operating performance to assist in comparing performance from period to period on a consistent basis and to readily view operating trends, as a measure for planning and forecasting overall expectations and for evaluating actual results against such expectations, and in communications with our Board of Directors, shareholders, creditors, analysts and investors concerning our financial performance.
Cash Available for Distribution
A non-GAAP measure, Cash Available for Distribution is defined as of September 30, 2024 as Adjusted EBITDA plus cash distributions/return of investment from unconsolidated affiliates, cash receipts from notes receivable, cash distributions from noncontrolling interests, adjustments to reflect sales-type lease cash payments and payments for lease expenses, less cash distributions to noncontrolling interests, maintenance capital expenditures, pro-rata Adjusted EBITDA from unconsolidated affiliates, cash interest paid, income taxes paid, principal amortization of indebtedness, changes in prepaid and accrued capacity payments, and adjusted for development expenses. Management believes CAFD is a relevant supplemental measure of the Company’s ability to earn and distribute cash returns to investors.
We believe CAFD is useful to investors in evaluating our operating performance because securities analysts and other interested parties use such calculations as a measure of our ability to make quarterly distributions. In addition, CAFD is used by our management team for determining future acquisitions and managing our growth. The GAAP measure most directly comparable to CAFD is cash provided by operating activities.
However, CAFD has limitations as an analytical tool because it does not include changes in operating assets and liabilities and excludes the effect of certain other cash flow items, all of which could have a material effect on our financial condition and results from operations. CAFD is a non-GAAP measure and should not be considered an alternative to cash provided by operating activities or any other performance or liquidity measure determined in accordance with GAAP, nor is it indicative of funds available to fund our cash needs. In addition, our calculations of CAFD are not necessarily comparable to CAFD as calculated by other companies. Investors should not rely on these measures as a substitute for any GAAP measure, including cash provided by operating activities.
1 Excludes equity method investments
2 Generation sold excludes MWh that are reimbursable for economic curtailment
3 2024 includes
4 2024 excludes
5 2024 excludes
6 2024 excludes
7 Excludes income tax payments related to Thermal sale
8 Distribution from unconsolidated affiliates can be classified as Return of Investment on Unconsolidated Affiliates when actuals are reported. This is below cash from operating activities
9 Includes tax equity proceeds and distributions to tax equity partners
10 2024 and 2025 excludes maturities assumed to be refinanced
FAQ
What was Clearway Energy's (CWEN) Net Income for Q3 2024?
What is CWEN's dividend payment for Q4 2024?
What is Clearway Energy's (CWEN) CAFD guidance for 2025?