• Full Year Adjusted EBITDA: $1.146 billion.
• Full Year CAFD: $425 million, exceeding guidance of $395 million.
• Fourth Quarter Adjusted EBITDA: $228 million.
• Fourth Quarter CAFD: $40 million.
• 2025 CAFD Guidance Range: $400 million to $440 million.
• Growth Investments for 2024: Approximately $450 million committed.
• Dividend Per Share Growth Commitment: Met for 2024.
• Renewable Power Generation and Energy Storage Capacity: Over one gigawatt brought online in 2024.
• Tuolumne Acquisition: Expected to generate approximately 12% five-year average annual CAFD yield.
• Honeycomb Battery Hybridization Program Investment: Approximately $78 million committed.
• Western US Storage Projects: Added 492 megawatts to future dropdown opportunities.
• Repowering of Wind Portfolio: 712 megawatts repowered or committed to repower.
• California Flexible Generation Fleet: Fully contracted in 2026 and 78% contracted through 2027.
• Wildorado Wind Farm PPA Extension: Contract extended to 2030.
• 2027 CAFD Per Share Target Range: $2.40 to $2.60 per share.

• Warning! GuruFocus has detected 9 Warning Signs with CWEN.

Release Date: February 24, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Clearway Energy Inc (NYSE:CWEN) exceeded its financial and operational objectives for 2024, surpassing key targets and setting a strong foundation for future growth.
• The company committed to approximately $450 million in growth investments, bringing over one gigawatt of renewable power generation and energy storage capacity online.
• Clearway Energy Inc (NYSE:CWEN) reaffirmed its 2025 guidance range and expressed confidence in meeting or exceeding the midpoint of that range.
• The company announced attractive investments in existing fleet projects, including the Honeycomb storage projects and the repowering of Mt. Storm, supported by a PPA with a major technology company.
• Clearway Energy Inc (NYSE:CWEN) has a robust pipeline of projects and growth prospects for 2027 and beyond, with a focus on renewable energy and energy storage solutions.

Negative Points

• The company faces potential risks and uncertainties related to forward-looking statements and assumptions, which could impact actual results.
• Clearway Energy Inc (NYSE:CWEN) must navigate policy risks, such as changes in tariffs and trade laws, which could affect supply chain and project costs.
• The company is reliant on securing permits and regulatory approvals for future projects, which can be subject to delays and challenges.
• Clearway Energy Inc (NYSE:CWEN) needs to manage its capital allocation carefully to avoid the need for external equity funding to meet its growth targets.
• The company operates in a competitive market for renewable energy projects, which could impact its ability to secure favorable contracts and acquisitions.

Q & A Highlights

Q: Can you explain the increase in your excess debt capacity from $300 million-plus to $300-$400 million? A: Craig Cornelius, CEO: The increase reflects our outlook for long-run CAFD contribution from the fleet, incorporating recent updates. We maintain this outlook by considering investment commitments, CAFD contributions from our operating fleet, and new commitments. Sarah Rubenstein, CFO, added that re-contracting assets and executing plans have made us comfortable with achieving up to $400 million of excess debt capacity without additional capital commitments.

Q: How is Clearway Energy managing potential risks from tariffs on steel and aluminum, and do you expect any delays or renegotiations of PPAs due to increased equipment costs? A: Craig Cornelius, CEO: We have arrangements with revenue contracts and equipment suppliers that allow us to absorb tariff changes without impacting our growth goals. The importance of near-term constructible projects means that incremental costs from tariffs can be absorbed while still delivering value to customers.

Q: What types of M&A opportunities are you considering, and would you consider a large equity raise for the right transaction? A: Craig Cornelius, CEO: We focus on acquisitions that complement our existing portfolio and offer synergy opportunities. We are looking at projects across wind, solar, battery, and gas resources. While we prioritize acquisitions that fit our capital allocation framework, we remain open to larger opportunities if they align with our growth profile.

Q: Can you elaborate on your data center capabilities and how they align with customer needs? A: Craig Cornelius, CEO: We have five gigawatts of projects in development that can serve data center demand. Our projects are in service territories where we can deliver renewable or battery power to meet hyper scalers' needs. We have land positions and interconnection agreements that align with data center development, providing us with a speed-to-market advantage.

Q: How has the President's executive order on federal permitting affected your ability to secure permits for wind projects? A: Craig Cornelius, CEO: The executive order has had limited impact on our late-stage pipeline, with only 391 megawatts of projects relying on federal right-of-way. Most of our projects are on private lands and have necessary permits. We continue to make progress and are optimistic about the administration's support for energy projects.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.