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Sep 30, 2021
Clearway Energy Q3 2021 Earnings Report
Reported third quarter 2021 financial results, showing a mix of increased revenue and strategic business moves.
Key Takeaways
Clearway Energy, Inc. reported Net Income of $25 million, Adjusted EBITDA of $337 million, Cash from Operating Activities of $288 million, and Cash Available for Distribution (CAFD) of $161 million for the third quarter of 2021. The company is reaffirming its 2021 financial guidance and initiating 2022 financial guidance, while also increasing the quarterly dividend by 1.6% to $0.34 per share in the fourth quarter of 2021.
Signed a binding agreement with KKR to sell Clearway’s Thermal Business for $1.9 billion.
Entered into new Resource Adequacy contracts for Marsh Landing and Walnut Creek, securing contracts through 2026.
Executed an agreement to acquire the remaining 50% interest in the 530 MW Utah Solar Portfolio.
Refinanced $350 million of corporate debt through the issuance of the 2032 Green Bond Senior Notes.
Clearway Energy
Clearway Energy
Clearway Energy Revenue by Segment
Revenue by Segment
Renewables & Storage Revenue
CapyFin.com Forward Guidance
The Company is reiterating its 2021 full year CAFD guidance of $325 million and initiating 2022 full year CAFD guidance of $395 million, which assumes a full year contribution from the Thermal Business of approximately $40 million. With the effects above, the timing of CAFD realization pursuant to 5-year averages, asset CAFD across all segments being materially in-line with current profiles, and the impact of the disposition of the Company's Thermal Platform, the Company is updating its pro forma CAFD outlook expectations to approximately $385 million.
Positive Outlook
- Reaffirming 2021 full year CAFD guidance of $325 million.
- Initiating 2022 full year CAFD guidance of $395 million.
- Expected full year contribution from the Thermal Business of approximately $40 million in 2022.
- Updating pro forma CAFD outlook expectations to approximately $385 million.
- The Company is well positioned to be in the upper range of its 5% to 8% annual dividend growth objective through at least 2026
Challenges Ahead
- 2021 financial guidance factors in the contribution of committed growth investments based on current expected closing timelines, the change in cash interest payments due to corporate financings, estimates for potential impacts on Thermal volumes related to the COVID-19 pandemic, and the impact from the February 2021 severe weather event in Texas.
- 2021 CAFD guidance does not factor in the timing of when CAFD is realized from new growth investments pursuant to 5-year averages beyond 2021.
- 2022 full-year CAFD does not factor in the timing of when CAFD is realized from new growth investments pursuant to 5-year averages beyond 2022.
- The Company plans to update 2022 full year CAFD guidance after the Thermal Business transaction closes.
- Guidance continues to be based on median renewable energy production estimates for the full year.