Clearway Energy (CWEN) Q2 2024 earnings summary

Executive summary

• Delivered strong Q2 2024 results with Adjusted EBITDA of $353 million and CAFD of $187 million, reaffirming 2024 CAFD guidance of $395 million and targeting $2.15 CAFD per share by 2026.

• Increased quarterly dividend by 1.7% to $0.4171 per share, annualized at $1.6684, with a 5–8% annual growth target through 2026.

• All excess proceeds from the district thermal business sale and $750 million in capital are fully committed to accretive growth investments.

• Advanced major projects, including Luna Valley, Daggett 1, and Pine Forest Solar plus storage, and secured long-term contracts such as Marsh Landing RA.

• Sponsor pipeline includes 7.9 GW of late-stage projects and 3.5 GW originated in 1H'24, supporting long-term growth and portfolio diversification.

Financial highlights

• Q2 2024 Adjusted EBITDA: $353 million; CAFD: $187 million; Net Income: $4 million; Q2 2024 EPS: $0.43.

• Year-to-date Adjusted EBITDA: $564 million; CAFD: $239 million; six-month net income: $49 million.

• Q2 2024 operating revenues: $366 million (down from $406 million in Q2 2023); six-month revenues: $629 million.

• Pro forma CAFD outlook raised to $435 million ($2.15 per share); corporate debt at $2,125 million as of June 30, 2024.

• Total liquidity as of June 30, 2024: $1.07 billion, including $570 million in cash and $495 million in revolver availability.

Outlook and guidance

• Reaffirmed full-year 2024 CAFD guidance of $395 million, based on P50 median renewable production and committed growth investments.

• Path to $2.15 CAFD per share by 2026 is established, with no need for external equity to meet current growth targets.

• Targeting upper range of 5–8% DPS growth through 2026; updated guidance expected after Q3.

• Management expects to continue paying comparable cash dividends, subject to available capital and market conditions.

• Liquidity and cash flows from operations are expected to be adequate for financial commitments and growth.