U.S. markets open in 8 hours 15 minutes
  • S&P Futures

    4,133.00
    -14.75 (-0.36%)
     
  • Dow Futures

    33,873.00
    -89.00 (-0.26%)
     
  • Nasdaq Futures

    12,575.00
    -49.00 (-0.39%)
     
  • Russell 2000 Futures

    1,984.70
    -8.80 (-0.44%)
     
  • Crude Oil

    73.59
    +0.20 (+0.27%)
     
  • Gold

    1,890.50
    +13.90 (+0.74%)
     
  • Silver

    22.50
    +0.10 (+0.45%)
     
  • EUR/USD

    1.0799
    +0.0002 (+0.02%)
     
  • 10-Yr Bond

    3.5320
    0.0000 (0.00%)
     
  • Vix

    18.33
    -0.40 (-2.14%)
     
  • GBP/USD

    1.2063
    +0.0007 (+0.06%)
     
  • USD/JPY

    131.7590
    +0.6090 (+0.46%)
     
  • BTC-USD

    22,775.14
    -611.52 (-2.61%)
     
  • CMC Crypto 200

    522.77
    -14.09 (-2.62%)
     
  • FTSE 100

    7,901.80
    +81.64 (+1.04%)
     
  • Nikkei 225

    27,660.93
    +151.47 (+0.55%)
     

Clearway Energy, Inc. Reports Third Quarter 2022 Financial Results

Clearway Energy, Inc
Clearway Energy, Inc
  • Received offers from sponsor to invest approximately $410 million in 1.4 GW of wind, solar, and solar plus storage projects

  • TotalEnergies acquired a 50% interest in Clearway’s sponsor from Global Infrastructure Partners

  • Entered into new Resource Adequacy contract for El Segundo

  • Closed acquisition of 413 MW wind portfolio

  • Updating 2022 financial guidance, initiating 2023 financial guidance, and updating pro forma CAFD outlook

  • Increasing the quarterly dividend by 2% to $0.3672 per share in the fourth quarter of 2022, or $1.469 per share annualized

  • Continue to target annual dividend per share growth in the upper range of 5% to 8% through 2026

PRINCETON, N.J., Nov. 02, 2022 (GLOBE NEWSWIRE) -- Clearway Energy, Inc. (NYSE: CWEN, CWEN.A) today reported third quarter 2022 financial results, including Net Income of $62 million, Adjusted EBITDA of $322 million, Cash from Operating Activities of $328 million, and Cash Available for Distribution (CAFD) of $154 million.

“While the current year financial guidance has been lowered due to forced outages at the Conventional segment, the prospects for long-term growth at Clearway remain exceptional,” said Christopher Sotos, Clearway Energy, Inc.’s President and Chief Executive Officer. “With the closing of TotalEnergies’ investment for 50% ownership of Clearway Group, our sponsor has further enhanced its ability to grow its renewable development pipeline. Additionally, with today’s announced drop-down offers and visibility into additional drop-down offers next year, the Company has line of sight to the future deployment of all of the $750 million of excess proceeds from the Thermal sale by the end of 2024. With this unprecedented visibility, Clearway remains on track to deliver at the upper range of its dividend growth target through 2026.”

Adjusted EBITDA and Cash Available for Distribution used in this press release are non-GAAP measures and are explained in greater detail under “Non-GAAP Financial Information” below.

Overview of Financial and Operating Results

Segment Results

Table 1: Net Income/(Loss)

($ millions)

 

Three Months Ended

 

Nine Months Ended

Segment

 

9/30/22

 

9/30/21

 

9/30/22

 

9/30/21

Conventional

 

 

41

 

 

 

52

 

 

 

121

 

 

125

 

Renewables

 

 

62

 

 

 

6

 

 

 

26

 

 

(23

)

Thermal

 

 

 

 

 

4

 

 

 

17

 

 

14

 

Corporate

 

 

(41

)

 

 

(37

)

 

 

950

 

 

(135

)

Net Income/(Loss)

 

$

62

 

 

$

25

 

 

$

1,114

 

$

(19

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 2: Adjusted EBITDA

($ millions)

 

Three Months Ended

 

Nine Months Ended

Segment

 

9/30/22

 

9/30/21

 

9/30/22

 

9/30/21

Conventional

 

 

94

 

 

 

109

 

 

 

277

 

 

 

292

 

Renewables

 

 

236

 

 

 

221

 

 

 

675

 

 

 

581

 

Thermal

 

 

 

 

 

17

 

 

 

23

 

 

 

53

 

Corporate

 

 

(8

)

 

 

(10

)

 

 

(27

)

 

 

(26

)

Adjusted EBITDA

 

$

322

 

 

$

337

 

 

$

948

 

 

$

900

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 3: Cash from Operating Activities and Cash Available for Distribution (CAFD)

 

 

Three Months Ended

 

Nine Months Ended

($ millions)

 

9/30/22

 

9/30/21

 

9/30/22

 

9/30/21

Cash from Operating Activities

 

$

328

 

$

288

 

$

607

 

$

529

Cash Available for Distribution (CAFD)1

 

$

154

 

$

161

 

$

328

 

$

301

 

 

 

 

 

 

 

 

 

 

 

 

 

For the third quarter of 2022, the Company reported Net Income of $62 million, Adjusted EBITDA of $322 million, Cash from Operating Activities of $328 million, and CAFD of $154 million. Net Income increased versus 2021 primarily due to non-cash changes in the fair value of interest rate swaps as a result of an increase in LIBOR. Cash from Operating Activities increased versus 2021 primarily due to the contribution of growth investments. Adjusted EBITDA and CAFD results in the third quarter of 2022 were lower than 2021 due to forced outages at the Conventional segment and the disposition of the Thermal Business, partially offset by the contribution from growth investments.

Operational Performance

Table 4: Selected Operating Results

(MWh and MWht in thousands)

 

Three Months Ended

 

Nine Months Ended

 

 

9/30/22

 

9/30/21

 

9/30/22

 

9/30/21

Conventional Equivalent Availability Factor2

 

93.9

%

 

99.8

%

 

92.5

%

 

93.4

%

Renewables Generation Sold (MWh)3

 

3,367

 

 

2,740

 

 

11,102

 

 

8,640

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In the third quarter of 2022, availability at the Conventional segment was lower than the third quarter of 2021 primarily due to forced outages at the El Segundo Energy Center and Walnut Creek facilities. Generation in the Renewables segment during the third quarter of 2022 was 23% higher than the third quarter of 2021 primarily due to the contribution of growth investments.

Liquidity and Capital Resources

Table 5: Liquidity

($ millions)

 

9/30/2022

 

12/31/2021

Cash and Cash Equivalents:

 

 

 

 

Clearway Energy, Inc. and Clearway Energy LLC, excluding subsidiaries

 

$

625

 

$

33

Subsidiaries

 

 

168

 

 

146

Restricted Cash:

 

 

 

 

Operating accounts

 

 

144

 

 

246

Reserves, including debt service, distributions, performance obligations and other reserves

 

 

219

 

 

229

Total Cash

 

$

1,156

 

$

654

Revolving credit facility availability

 

 

383

 

 

167

Total Liquidity

 

$

1,539

 

$

821

 

 

 

 

 

 

 

Total liquidity as of September 30, 2022, was $1,539 million, which was $718 million higher than as of December 31, 2021, primarily due to the proceeds received from the sale of the Thermal Business. This was partially offset by the execution of growth investments, the repayment of $305 million in outstanding borrowings under the Company’s revolving credit facility and the repayment of $335 million under the Bridge Loan Agreement.

As of September 30, 2022, the Company’s liquidity included $363 million of restricted cash. Restricted cash consists primarily of funds to satisfy the requirements of certain debt arrangements and funds held within the Company’s projects that are restricted in their use. As of September 30, 2022, these restricted funds were comprised of $144 million designated to fund operating expenses, approximately $66 million designated for current debt service payments, and $124 million of reserves for debt service, performance obligations and other items including capital expenditures. The remaining $29 million is held in distribution reserve accounts.

Potential future sources of liquidity include excess operating cash flow, availability under the revolving credit facility, asset dispositions, and, subject to market conditions, new corporate debt and equity financings.

Growth Investments and Strategic Announcements 

Cash Equity Partnership Offers for 1.4 GW of Renewable and Energy Storage Projects

On October 31, 2022, Clearway Group offered the Company opportunities to enter into partnership arrangements to own cash equity interests in 1,408 MW of projects that will include wind, solar and solar plus storage assets expected to reach commercial operations between the second half of 2023 and the second half of 2024. The potential corporate capital commitment for the investments are expected to be approximately $410 million. The investments are subject to negotiation, both with Clearway Group and a third-party equity investor, and the review and approval by the Company’s Independent Directors.

Waiawa Solar Project

On October 3, 2022, the Company, through an indirect subsidiary acquired Waiawa BL Borrower Holdco LLC, the indirect owner of the Waiawa solar project, a 36 MW solar project with 144 MWh of storage capacity, located in Honolulu, Hawaii, from a subsidiary of Clearway Group, for cash consideration of $20 million. The project is expected to achieve commercial operations in the fourth quarter of 2022 and its expected output is backed by a 20-year power purchase agreement with an investment-grade utility.

TotalEnergies Acquisition of a 50% Interest in Clearway Group

On September 12, 2022, Global Infrastructure Partners (GIP) closed a transaction whereby TotalEnergies acquired half of GIP’s interest in Clearway Group. TotalEnergies is expected to enhance growth prospects for the Clearway enterprise by providing (i) a right of first offer, through GIP, on its U.S. onshore renewable assets to the Company and (ii) access to TotalEnergies’ power marketing capabilities and corporate relationships to optimize the commercial value of the Clearway enterprise’s development and operating projects.

Resource Adequacy Agreement at El Segundo

On August 25, 2022, the Company announced that it had contracted for the El Segundo Energy Center to sell Resource Adequacy to Southern California Edison (SCE) commencing in August 2023. The agreement is for 100% of the facility’s net qualifying capacity and has a contract tenor of three years. With the execution of the contract, the Company has contracted 100% of the Resource Adequacy for the El Segundo Energy Center, Marsh Landing and Walnut Creek assets through approximately 2026.

Acquisition of 413 MW Wind Portfolio

On August 22, 2022, the Company acquired a portfolio of operating wind projects from Capistrano Wind Partners, LLC (Capistrano Portfolio) for a base purchase price of approximately $255 million before purchase price adjustments in the net amount of $16 million, representing total net consideration of $239 million. The transaction also included the assumption of $162 million of project level non-recourse debt. The Capistrano Portfolio consists of five utility-scale wind projects representing 413 MW of capacity located in Texas, Nebraska, and Wyoming that achieved commercial operations between 2008 to 2012. The assets within the portfolio sell power under power purchase agreements with investment-grade counterparties that have a weighted average remaining contract duration of approximately 10 years. Concurrent with the closing of the acquisition, the Company also entered into a Development Agreement with Clearway Group, whereby Clearway Group paid $10 million to the Company to partially fund the acquisition of the Capistrano Portfolio for an exclusive right to develop, construct, and repower the projects in the Capistrano Portfolio (Rights Fee)4.

The Company expects its total long-term corporate capital commitment for the acquisition to be approximately $110-130 million5 and is estimated to provide incremental annual levered asset CAFD on a five-year average basis of approximately $12-14 million beginning January 1, 2023.

Quarterly Dividend

On November 2, 2022, Clearway Energy, Inc.’s Board of Directors declared a quarterly dividend on Class A and Class C common stock of $0.3672 per share payable on December 15, 2022, to stockholders of record as of December 1, 2022.

For 2022, the Company anticipates that, due to the sale of the Thermal Business, it may have positive current year earnings and profits. As a result, a portion of any dividends paid to holders of Class A and Class C common stock in 2022 may be treated as taxable dividends for U.S. federal income tax purposes. Such portion of the dividends that could be treated as taxable will depend upon a number of factors, including, but not limited to, the amount of actual gain from the Thermal business sale, overall business performance, and other business activity during the year.

Seasonality

Clearway Energy, Inc.’s quarterly operating results are impacted by seasonal factors, as well as weather variability which can impact renewable energy resource. Most of the Company’s revenues are generated from the months of May through September, as contracted pricing and renewable resources are at their highest levels in the Company’s portfolio. Factors driving the fluctuation in Net Income, Adjusted EBITDA, Cash from Operating Activities, and CAFD include the following:

  • Higher summer capacity prices from conventional assets;

  • Higher solar insolation during the summer months;

  • Higher wind resources during the spring and summer months;

  • Debt service payments which are made either quarterly or semi-annually;

  • Timing of maintenance capital expenditures and the impact of both unforced and forced outages; and

  • Timing of distributions from unconsolidated affiliates

The Company takes into consideration the timing of these factors to ensure sufficient funds are available for distributions and operating activities on a quarterly basis.

Financial Guidance and Pro Forma CAFD Outlook

The Company is updating its 2022 full year CAFD guidance of $365 million to $350 million due to the forced outages experienced at the Conventional segment.

The Company is initiating 2023 full year CAFD guidance of $410 million. The Company’s 2023 financial guidance factors in the contribution of committed growth investments based on current expected closing timelines and estimates for merchant energy gross margin at the conventional fleet upon the expiry of their current toll contracts. 2023 CAFD guidance does not factor in the timing of when CAFD is realized from new growth investments pursuant to 5-year averages beyond 2023.

The Company is updating its pro forma CAFD outlook expectations from approximately $400 million to approximately $390 million.

Financial guidance and the pro forma CAFD outlook continue to be based on median renewable energy production estimates for the full year.

Earnings Conference Call

On November 2, 2022, Clearway Energy, Inc. will host a conference call at 8:00 a.m. Eastern to discuss these results. Investors, the news media and others may access the live webcast of the conference call and accompanying presentation materials by logging on to Clearway Energy, Inc.’s website at http://www.clearwayenergy.com and clicking on “Presentations & Webcasts” under “Investor Relations.”

About Clearway Energy, Inc.

Clearway Energy, Inc. is one of the largest renewable energy owners in the US with over 5,500 net MW of installed wind and solar generation projects. The Company’s over 8,000 net MW of assets also include approximately 2,500 net MW of environmentally-sound, highly efficient natural gas generation facilities. Through this environmentally-sound diversified and primarily contracted portfolio, Clearway Energy endeavors to provide its investors with stable and growing dividend income. Clearway Energy, Inc.’s Class C and Class A common stock are traded on the New York Stock Exchange under the symbols CWEN and CWEN.A, respectively. Clearway Energy, Inc. is sponsored by its controlling investor, Clearway Energy Group LLC. For more information, visit investor.clearwayenergy.com.

Safe Harbor Disclosure

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements are subject to certain risks, uncertainties and assumptions, and typically can be identified by the use of words such as “expect,” “estimate,” “target,” “anticipate,” “forecast,” “plan,” “outlook,” “believe” and similar terms. Such forward-looking statements include, but are not limited to, statements regarding, the Company’s dividend expectations and its operations, its facilities and its financial results, impacts related to COVID-19 (including any variant of the virus) or any other pandemic, statements regarding the anticipated consummation of the transactions described above, the anticipated benefits, opportunities, and results with respect to the transactions, including the Company’s future relationship and arrangements with Global Infrastructure Partners, TotalEnergies, and Clearway Energy Group, as well as the Company’s Net Income, Adjusted EBITDA, Cash from Operating Activities, Cash Available for Distribution, the Company’s future revenues, income, indebtedness, capital structure, strategy, plans, expectations, objectives, projected financial performance and/or business results and other future events, and views of economic and market conditions.

Although Clearway Energy, Inc. believes that the expectations are reasonable, it can give no assurance that these expectations will prove to be correct, and actual results may vary materially. Factors that could cause actual results to differ materially from those contemplated above include, among others, the Company’s ability to maintain and grow its quarterly dividend, impacts related to COVID-19 (including any variant of the virus) or any other pandemic, risks relating to the Company’s relationships with its sponsors, the failure to identify, execute or successfully implement acquisitions or dispositions (including receipt of third party consents and regulatory approvals), the Company’s ability to acquire assets from its sponsors, the Company’s ability to borrow additional funds and access capital markets due to its indebtedness, corporate structure, market conditions or otherwise, hazards customary in the power industry, weather conditions, including wind and solar performance, the Company’s ability to operate its businesses efficiently, manage maintenance capital expenditures and costs effectively, and generate earnings and cash flows from its asset-based businesses in relation to its debt and other obligations, the willingness and ability of counterparties to the Company’s offtake agreements to fulfill their obligations under such agreements, the Company’s ability to enter into new contracts as existing contracts expire, changes in government regulations, operating and financial restrictions placed on the Company that are contained in the project-level debt facilities and other agreements of the Company and its subsidiaries, and cyber terrorism and inadequate cybersecurity. Furthermore, any dividends are subject to available capital, market conditions, and compliance with associated laws and regulations.

Clearway Energy, Inc. undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The Cash Available for Distribution are estimates as of today’s date, November 2, 2022, and are based on assumptions believed to be reasonable as of this date. Clearway Energy, Inc. expressly disclaims any current intention to update such guidance. The foregoing review of factors that could cause Clearway Energy, Inc.’s actual results to differ materially from those contemplated in the forward-looking statements included in this news release should be considered in connection with information regarding risks and uncertainties that may affect Clearway Energy, Inc.’s future results included in Clearway Energy, Inc.’s filings with the Securities and Exchange Commission at www.sec.gov. In addition, Clearway Energy, Inc. makes available free of charge at www.clearwayenergy.com, copies of materials it files with, or furnishes to, the Securities and Exchange Commission.

Contacts:

 

 

 

 

 

 

Investors:

Media:

 

Akil Marsh

Zadie Oleksiw

 

investor.relations@clearwayenergy.com

media@clearwayenergy.com

 

609-608-1500

202-836-5754


CLEARWAY ENERGY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

 

Three months ended
September 30,

 

Nine months ended
September 30,

(In millions, except per share amounts)

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Operating Revenues

 

 

 

 

 

 

 

Total operating revenues

$

340

 

 

$

351

 

 

$

922

 

 

$

968

 

Operating Costs and Expenses

 

 

 

 

 

 

 

Cost of operations, exclusive of depreciation, amortization and accretion shown separately below

 

98

 

 

 

117

 

 

 

338

 

 

 

334

 

Depreciation, amortization and accretion

 

129

 

 

 

131

 

 

 

379

 

 

 

387

 

General and administrative

 

8

 

 

 

10

 

 

 

31

 

 

 

30

 

Transaction and integration costs

 

 

 

 

1

 

 

 

5

 

 

 

4

 

Development costs

 

 

 

 

3

 

 

 

2

 

 

 

5

 

Total operating costs and expenses

 

235

 

 

 

262

 

 

 

755

 

 

 

760

 

Gain on sale of business

 

 

 

 

 

 

 

1,291

 

 

 

 

Operating Income

 

105

 

 

 

89

 

 

 

1,458

 

 

 

208

 

Other Income (Expense)

 

 

 

 

 

 

 

Equity in earnings of unconsolidated affiliates

 

14

 

 

 

20

 

 

 

28

 

 

 

32

 

Other income, net

 

5

 

 

 

1

 

 

 

10

 

 

 

3

 

Loss on debt extinguishment

 

 

 

 

 

 

 

(2

)

 

 

(42

)

Interest expense

 

(49

)

 

 

(84

)

 

 

(143

)

 

 

(232

)

Total other expense, net

 

(30

)

 

 

(63

)

 

 

(107

)

 

 

(239

)

Income (Loss) Before Income Taxes

 

75

 

 

 

26

 

 

 

1,351

 

 

 

(31

)

Income tax expense (benefit)

 

13

 

 

 

1

 

 

 

237

 

 

 

(12

)

Net Income (Loss)

 

62

 

 

 

25

 

 

 

1,114

 

 

 

(19

)

Less: Income (loss) attributable to noncontrolling interests and redeemable noncontrolling interests

 

30

 

 

 

4

 

 

 

544

 

 

 

(78

)

Net Income Attributable to Clearway Energy, Inc.

$

32

 

 

$

21

 

 

$

570

 

 

$

59

 

Earnings Per Share Attributable to Clearway Energy, Inc. Class A and Class C Common Stockholders

 

 

 

 

 

 

 

Weighted average number of Class A common shares outstanding - basic and diluted

 

35

 

 

 

35

 

 

 

35

 

 

 

35

 

Weighted average number of Class C common shares outstanding - basic and diluted

 

82

 

 

 

82

 

 

 

82

 

 

 

82

 

Earnings per Weighted Average Class A and Class C Common Share - Basic and Diluted

$

0.28

 

 

$

0.18

 

 

$

4.89

 

 

$

0.51

 

Dividends Per Class A Common Share

$

0.3604

 

 

$

0.3345

 

 

$

1.0608

 

 

$

0.9875

 

Dividends Per Class C Common Share

$

0.3604

 

 

$

0.3345

 

 

$

1.0608

 

 

$

0.9875

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


CLEARWAY ENERGY, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

 

Three months ended
September 30,

 

Nine months ended
September 30,

(In millions)

2022

 

2021

 

2022

 

 

2021

 

Net Income (Loss)

$

62

 

$

25

 

$

1,114

 

$

(19

)

Other Comprehensive Income

 

 

 

 

 

 

 

Unrealized gain on derivatives and changes in accumulated OCI/OCL, net of income tax expense (benefit), of $3, $(2), $6 and $(3)

 

11

 

 

3

 

 

31

 

 

14

 

Other comprehensive income

 

11

 

 

3

 

 

31

 

 

14

 

Comprehensive Income (Loss)

 

73

 

 

28

 

 

1,145

 

 

(5

)

Less: Comprehensive income (loss) attributable to noncontrolling interests and redeemable noncontrolling interests

 

37

 

 

6

 

 

563

 

 

(70

)

Comprehensive Income Attributable to Clearway Energy, Inc.

$

36

 

$

22

 

$

582

 

$

65

 

 

 

 

 

 

 

 

 

 

 

 

 

 


CLEARWAY ENERGY, INC.

CONSOLIDATED BALANCE SHEETS

(In millions, except shares)

September 30, 2022

 

December 31, 2021

ASSETS

(Unaudited)

 

 

Current Assets

 

 

 

Cash and cash equivalents

$

793

 

$

179

 

Restricted cash

 

363

 

 

475

 

Accounts receivable — trade

 

200

 

 

144

 

Inventory

 

48

 

 

37

 

Derivative instruments

 

23

 

 

 

Current assets held-for-sale

 

 

 

631

 

Prepayments and other current assets

 

61

 

 

65

 

Total current assets

 

1,488

 

 

1,531

 

Property, plant and equipment, net

 

7,437

 

 

7,650

 

Other Assets

 

 

 

Equity investments in affiliates

 

377

 

 

381

 

Intangible assets for power purchase agreements, net

 

2,537

 

 

2,419

 

Other intangible assets, net

 

78

 

 

80

 

Derivative instruments

 

71

 

 

6

 

Deferred income taxes

 

 

 

95

 

Right-of-use assets, net

 

519

 

 

550

 

Other non-current assets

 

89

 

 

101

 

Total other assets

 

3,671

 

 

3,632

 

Total Assets

$

12,596

 

$

12,813

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current Liabilities

 

 

 

Current portion of long-term debt

$

493

 

$

772

 

Accounts payable — trade

 

53

 

 

74

 

Accounts payable — affiliates

 

15

 

 

107

 

Derivative instruments

 

79

 

 

46

 

Accrued interest expense

 

41

 

 

54

 

Current liabilities held-for-sale

 

 

 

494

 

Accrued expenses and other current liabilities

 

127

 

 

84

 

Total current liabilities

 

808

 

 

1,631

 

Other Liabilities

 

 

 

Long-term debt

 

6,519

 

 

6,939

 

Deferred income taxes

 

125

 

 

13

 

Derivative instruments

 

291

 

 

196

 

Long-term lease liabilities

 

541

 

 

561

 

Other non-current liabilities

 

196

 

 

173

 

Total other liabilities

 

7,672

 

 

7,882

 

Total Liabilities

 

8,480

 

 

9,513

 

Redeemable noncontrolling interest in subsidiaries

 

7

 

 

 

Commitments and Contingencies

 

 

 

Stockholders’ Equity

 

 

 

Preferred stock, $0.01 par value; 10,000,000 shares authorized; none issued

 

 

 

 

Class A, Class B, Class C and Class D common stock, $0.01 par value; 3,000,000,000 shares authorized (Class A 500,000,000, Class B 500,000,000, Class C 1,000,000,000, Class D 1,000,000,000); 201,872,521 shares issued and outstanding (Class A 34,599,645, Class B 42,738,750, Class C 82,197,376, Class D 42,336,750) at September 30, 2022 and 201,856,166 shares issued and outstanding (Class A 34,599,645, Class B 42,738,750, Class C 81,779,021, Class D 42,738,750) at December 31, 2021

 

1

 

 

1

 

Additional paid-in capital

 

1,786

 

 

1,872

 

Retained earnings (accumulated deficit)

 

494

 

 

(33

)

Accumulated other comprehensive income (loss)

 

10

 

 

(6

)

Noncontrolling interest

 

1,818

 

 

1,466

 

Total Stockholders’ Equity

 

4,109

 

 

3,300

 

Total Liabilities and Stockholders’ Equity

$

12,596

 

$

12,813

 

 

 

 

 

 

 

 


 CLEARWAY ENERGY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

Nine months ended September 30,

(In millions)

 

2022

 

 

 

2021

 

Cash Flows from Operating Activities

 

 

 

Net Income (Loss)

$

1,114

 

 

$

(19

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

 

 

 

Equity in earnings of unconsolidated affiliates

 

(28

)

 

 

(32

)

Distributions from unconsolidated affiliates

 

25

 

 

 

25

 

Depreciation, amortization and accretion

 

379

 

 

 

387

 

Amortization of financing costs and debt discounts

 

10

 

 

 

10

 

Amortization of intangibles

 

123

 

 

 

107

 

Loss on debt extinguishment

 

2

 

 

 

42

 

Gain on sale of business

 

(1,291

)

 

 

 

Reduction in carrying amount of right-of-use assets

 

10

 

 

 

8

 

Changes in deferred income taxes

 

207

 

 

 

(12

)

Changes in derivative instruments and amortization of accumulated OCI/OCL

 

77

 

 

 

50

 

Cash used in changes in other working capital:

 

 

 

Changes in prepaid and accrued liabilities for tolling agreements

 

24

 

 

 

20

 

Changes in other working capital

 

(45

)

 

 

(57

)

Net Cash Provided by Operating Activities

 

607

 

 

 

529

 

Cash Flows from Investing Activities

 

 

 

Acquisitions, net of cash acquired

 

 

 

 

(211

)

Acquisition of Drop Down Assets

 

(51

)

 

 

(132

)

Acquisition of Capistrano Wind Portfolio, net of cash acquired

 

(223

)

 

 

 

Capital expenditures

 

(95

)

 

 

(124

)

Asset purchase from affiliate

 

 

 

 

(21

)

Return of investment from unconsolidated affiliates

 

12

 

 

 

37

 

Proceeds from sale of business

 

1,457

 

 

 

 

Other

 

 

 

 

21

 

Net Cash Provided by (Used in) Investing Activities

 

1,100

 

 

 

(430

)

Cash Flows from Financing Activities

 

 

 

(Distributions to) contributions from noncontrolling interests

 

(14

)

 

 

251

 

Payments of dividends and distributions

 

(214

)

 

 

(199

)

Distributions to CEG of escrowed amounts

 

(64

)

 

 

 

Tax-related distributions

 

(8

)

 

 

 

Proceeds from the revolving credit facility

 

80

 

 

 

377

 

Payments for the revolving credit facility

 

(325

)

 

 

(300

)

Proceeds from the issuance of long-term debt

 

219

 

 

 

1,037

 

Payments of debt issuance costs

 

(4

)

 

 

(13

)

Payments for short-term and long-term debt

 

(868

)

 

 

(1,170

)

Other

 

(7

)

 

 

8

 

Net Cash Used in Financing Activities

 

(1,205

)

 

 

(9

)

Net Increase in Cash, Cash Equivalents and Restricted Cash

 

502

 

 

 

90

 

Cash, Cash Equivalents and Restricted Cash at beginning of period

 

654

 

 

 

465

 

Cash, Cash Equivalents and Restricted Cash at end of period

$

1,156

 

 

$

555

 


CLEARWAY ENERGY, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

For the Nine Months Ended September 30, 2022

(Unaudited)

(In millions)

Preferred Stock

 

Common Stock

 

Additional
Paid-In
Capital

 

Accumulated Deficit

 

Accumulated
Other
Comprehensive Loss

 

Noncontrolling
Interest

 

Total
Stockholders’
Equity

Balances at December 31, 2021

$

 

$

1

 

$

1,872

 

 

$

(33

)

 

$

(6

)

 

$

1,466

 

 

$

3,300

 

Net loss

 

 

 

 

 

 

 

 

(32

)

 

 

 

 

 

(67

)

 

 

(99

)

Unrealized gain on derivatives and changes in accumulated OCL, net of tax

 

 

 

 

 

 

 

 

 

 

 

6

 

 

 

8

 

 

 

14

 

Distributions to CEG, net of contributions, cash

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3

)

 

 

(3

)

Contributions from noncontrolling interests, net of distributions, cash

 

 

 

 

 

 

 

 

 

 

 

 

 

 

28

 

 

 

28

 

Mesquite Sky Drop Down

 

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

(7

)

 

 

(8

)

Black Rock Drop Down

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

1

 

Mililani I Drop Down

 

 

 

 

 

(11

)

 

 

 

 

 

 

 

 

(19

)

 

 

(30

)

Non-cash adjustments for change in tax basis

 

 

 

 

 

8

 

 

 

 

 

 

 

 

 

 

 

 

8

 

Stock-based compensation

 

 

 

 

 

(2

)

 

 

 

 

 

 

 

 

 

 

 

(2

)

Common stock dividends and distributions to CEG unit holders

 

 

 

 

 

(40

)

 

 

 

 

 

 

 

 

(30

)

 

 

(70

)

Balances at March 31, 2022

$

 

$

1

 

$

1,826

 

 

$

(65

)

 

$

 

 

$

1,377

 

 

$

3,139

 

Net income

 

 

 

 

 

 

 

 

570

 

 

 

 

 

 

575

 

 

 

1,145

 

Unrealized gain on derivatives and changes in accumulated OCI, net of tax

 

 

 

 

 

 

 

 

 

 

 

2

 

 

 

4

 

 

 

6

 

Distributions to CEG, net of contributions, cash

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(20

)

 

 

(20

)

Distributions to noncontrolling interests, net of contributions, cash

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(10

)

 

 

(10

)

Non-cash adjustments for change in tax basis

 

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

(1

)

Stock-based compensation

 

 

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

1

 

Common stock dividends and distributions to CEG unit holders

 

 

 

 

 

(41

)

 

 

 

 

 

 

 

 

(30

)

 

 

(71

)

Balances at June 30, 2022

$

 

$

1

 

$

1,785

 

 

$

505

 

 

$

2

 

 

$

1,896

 

 

$

4,189

 

Net income

 

 

 

 

 

 

 

 

32

 

 

 

 

 

 

27

 

 

 

59

 

Unrealized gain on derivatives and changes in accumulated OCI, net of tax

 

 

 

 

 

 

 

 

 

 

 

4

 

 

 

7

 

 

 

11

 

Distributions to CEG, non-cash

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4

)

 

 

(4

)

Contributions from CEG, net of distributions, cash

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7

 

 

 

7

 

Tax-related distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8

)

 

 

(8

)

Distributions to noncontrolling interests, net of contributions, cash

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(14

)

 

 

(14

)

Stock-based compensation

 

 

 

 

 

1

 

 

 

(1

)

 

 

 

 

 

 

 

 

 

Capistrano Wind Portfolio Acquisition

 

 

 

 

 

 

 

 

 

 

 

4

 

 

 

7

 

 

 

11

 

Kawailoa Sale to Clearway Renew LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(69

)

 

 

(69

)

Common stock dividends and distributions to CEG unit holders

 

 

 

 

 

 

 

 

(42

)

 

 

 

 

 

(31

)

 

 

(73

)

Balances at September 30, 2022

$

 

$

1

 

$

1,786

 

 

$

494

 

 

$

10

 

 

$

1,818

 

 

$

4,109