Clearway Energy (CWEN) Q4 2023 earnings summary

Executive summary

• FY23 net loss was $14M; Adjusted EBITDA was $1.058B, operating cash flow was $702M and CAFD was $342M, up from $326M in FY22.

• 4Q23 net loss was $73M, with Adjusted EBITDA of $201M and CAFD of $53M.

• Committed ~$215M to 2023 growth investments, expected to generate ~10% five-year weighted-average annual CAFD yields.

• Reaffirmed 2024 CAFD guidance of $395M and dividend growth targets through 2026 without external capital; Q1 2024 annualized DPS rose 1.7% to $1.6132.

Financial highlights

• FY23 revenue was $1.314B and operating income was $263M; net loss was $14M versus net income of $1.060B in FY22.

• FY23 Adjusted EBITDA was $1.058B versus $1.160B; operating cash flow was $702M versus $787M, and CAFD was $342M versus $326M.

• 4Q23 operating cash flow was $206M; Adjusted EBITDA was $201M and CAFD was $53M.

• FY23 CAFD excluded income tax payments related to the Thermal sale.

Outlook and guidance

• 2024 CAFD guidance of $395M assumes median renewable production, expected COD timing for committed growth investments, and refinancing of 2024 debt maturities.

• Guidance includes estimated conventional-fleet merchant energy gross margin; it excludes post-2024 CAFD timing from new growth investments based on five-year averages.

• Pro forma CAFD outlook is ~$415M; potential line-of-sight CAFD is ~$435M, including ~$20M from offered projects.

• Targeting ~$2.15 CAFD per share and the upper end of 5%–8% annual DPS growth through 2026 without external capital.