Release Date: February 24, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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.
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