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Clearway Energy, Inc. Reports Third Quarter 2019 Financial Results and Initiates 2020 Financial Guidance

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Clearway Energy, Inc. Reports Third Quarter 2019 Financial Results and Initiates 2020 Financial Guidance
  • Maintaining 2019 and Initiating 2020 CAFD Guidance

  • Reached commercial operations at the Hawaii Solar Phase I Oahu project; Repowering 1.0 remains on schedule

  • Signed new thermal energy services agreement with owner of Four Seasons Cayo Largo

  • Repurchased the outstanding non-recourse project financing for Agua Caliente Borrower 2

  • Announced sales of Energy Center Dover and a 6 MW distributed solar project

  • Partnered with Global Infrastructure Partners III to reduce future capital requirements for Carlsbad via a new non-resource financing

  • Elected not to pursue Mesquite Star drop down offer from Clearway Group

  • Declared quarterly dividend of $0.20 per share in fourth quarter 2019

PRINCETON, N.J., Nov. 06, 2019 (GLOBE NEWSWIRE) -- Clearway Energy, Inc. (NYSE: CWEN, CWEN.A) today reported third quarter 2019 financial results, including Net Income of $35 million, Adjusted EBITDA of $300 million, Cash from Operating Activities of $224 million, and Cash Available for Distribution (CAFD) of $177 million, which includes adjustments to reflect CAFD generated by unconsolidated investments that are unable to distribute project dividends due to the PG&E bankruptcy.

"During the third quarter, Clearway delivered strong operational results while also advancing the long-term growth prospects of the Company,” said Christopher Sotos, Clearway Energy, Inc.’s President and Chief Executive Officer. “Operationally, I’m pleased to report that strong performance across all of our operating segments resulted in quarterly financial performance above our expectations. For growth, due to the success in raising attractively priced, new investment grade rated non-recourse back-leverage financing at Carlsbad, Clearway’s total corporate capital requirement for this future acquisition has now been reduced by over $200 million allowing the Company to potentially acquire Carlsbad at a price that is more manageable given the current capital constraints resulting from the PG&E bankruptcy. Because of this opportunity, and due to the existing capital constraints on the Company, we continue to work with Clearway Group on optimizing the ROFO pipeline for investment timing that is more aligned to when the capital constraints are no longer an issue. Consistent with this approach we are focusing on the existing ROFO opportunities with funding dates required in late 2020 and 2021. As a result, we have elected to no longer pursue the Mesquite Star acquisition from Clearway Group. That said, as we move into 2020, and await the final resolution of the PG&E bankruptcy process, the execution of the Company’s existing commitments, the future addition of Carlsbad, and the ROFO pipeline will position Clearway for long term dividend growth.”

Overview of Financial and Operating Results

Segment Results

Table 1: Net (Loss) Income

(In millions)

Three months ended

Nine months ended

Segment

9/30/2019

9/30/2018

9/30/2019

9/30/2018

Conventional

41

39

97

107

Renewables

6

55

(70

)

131

Thermal

5

10

(5

)

24

Corporate

(17

)

(55

)

(70

)

(117

)

Net Income (Loss)

$

35

$

49

$

(48

)

$

145

Table 2: Adjusted EBITDA

(In millions)

Three months ended

Nine months ended

Segment

9/30/2019

9/30/2018

9/30/2019

9/30/2018

Conventional

85

81

230

225

Renewables

201

195

503

524

Thermal

18

20

50

50

Corporate

(4

)

(6

)

(14

)

(16

)

Adjusted EBITDA

$

300

$

290

$

769

$

783

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

Three months ended

Nine months ended

(In millions)

9/30/2019

9/30/2018

9/30/2019

9/30/2018

Cash from Operating Activities

224

215

374

396

Cash Available for Distribution (CAFD)1

177

156

232

250

For the third quarter of 2019, the Company reported Net Income of $35 million, Adjusted EBITDA of $300 million, Cash from Operating Activities of $224 million, and CAFD of $177 million, which includes adjustments to reflect CAFD generated by unconsolidated investments that are unable to distribute project dividends due to the PG&E bankruptcy. Net Income was lower than the third quarter of 2018 primarily driven by non-cash changes in the fair value of interest rate swaps. This was partially offset by lower transaction and integration costs versus the same period in 2018. Adjusted EBITDA results in the third quarter of 2019 were higher than the same period in 2018 primarily due to the contribution of growth investments and higher availability at the Conventional segment. In the third quarter of 2019, CAFD results were higher than 2018 primarily due to higher Adjusted EBITDA and lower debt service resulting from the tendering and repayment of the 2019 Convertible Notes.

Operational Performance

Table 4: Selected Operating Results

(MWh and MWht in thousands)

Three months ended

Nine months ended

9/30/2019

9/30/2018

9/30/2019

9/30/2018

Equivalent Availability Factor (Conventional) 2

99.4

%

97.0

%

93.8

%

93.2

%

Renewables Generation Sold (MWh)3

1,786

1,801

5,183

5,725

Thermal Generation Sold (MWh/MWht)

605

514

1,776

1,611

In the third quarter of 2019, availability at the Conventional segment was higher than the third quarter of 2018 primarily due to improved availability at El Segundo. Also, during the third quarter, generation in the Renewables segment was above median expectations but 1% lower than the third quarter of 2018 due to higher than normal wind resources in the same period in 2018. Further impacting production during the third quarter of 2019 was downtime related to construction activities at Elbow Creek and Wildorado under the Repowering 1.0 partnership.

Liquidity and Capital Resources

Table 5: Liquidity

(In millions)

September 30, 2019

December 31, 2018

Cash and cash equivalents:

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

$

32

$

298

Subsidiaries

116

109

Restricted cash:

Operating accounts

78

84

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

171

92

Total cash, cash equivalents and restricted cash

$

397

$

583

Revolving credit facility availability

443

454

Total liquidity

$

840

$

1,037

Total liquidity as of September 30, 2019 was $840 million, $197 million lower than as of December 31, 2018. This reduction was primarily due to the repayment, with cash on hand, of $220 million in outstanding 2019 Convertible Notes and funding of committed growth investments.

As of September 30, 2019, the Company's liquidity includes a restricted cash balance of $249 million, of which $147 million relates to subsidiaries affected by the PG&E bankruptcy. 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, 2019, these restricted funds were comprised of $78 million designated to fund operating expenses, approximately $70 million designated for current debt service payments, and $53 million of reserves for debt service, performance obligations and other items including capital expenditures. The remaining $48 million is held in distribution accounts, of which $36 million related to subsidiaries affected by the PG&E bankruptcy.

Potential future sources of liquidity include excess operating cash flow, the existing ATM program, of which $36 million remained available as of November 6, 2019, availability under the revolving credit facility, and, subject to market conditions, new corporate financings.

PG&E Bankruptcy Update

As of November 6, 2019, the Company’s contracts with PG&E have operated in the normal course and the Company currently expects these contracts to continue as such. However, unless such lenders for the related project-level debt otherwise agree, distributions to the Company from these projects may not be made during the pendency of the bankruptcy. These restrictions, therefore, have resulted in the Company accumulating less unrestricted cash and thus decreased the Company’s corporate liquidity and cash available for shareholder dividends and growth investments. The Company has entered into forbearance agreements for certain project-level financing arrangements and continues to seek similar agreements with the lenders for the remaining project-level financing arrangements affected by the PG&E bankruptcy. The Company continues to assess the potential future impacts of the PG&E bankruptcy filing as events occur.

Update to Growth Investments

Carlsbad Energy Center Update

On November 4, 2019, Carlsbad Energy Holdings LLC, a subsidiary of Global Infrastructure Partners III (GIP) and owner of the 527 MW Carlsbad Energy Center (Carlsbad), issued $216 million of investment grade rated, senior secured, non-recourse notes. These notes bear an interest rate of 4.21% and are fully amortizing over 19 years. As previously disclosed, the Company executed an equity backstop agreement with GIP for the future acquisition of Carlsbad. Pursuant to the terms previously agreed by and between the Company and GIP, the Company maintains the option until August 2020 to acquire Carlsbad from GIP. Should the Company not exercise the call right to acquire the asset by August 2020, Carlsbad will become part of the Company’s ROFO pipeline thereafter. As a result of the non-recourse financing, the Company expects the cash consideration for the potential acquisition to be approximately $180 million plus the assumption of non-recourse debt subject to purchase price adjustments. After the new non-recourse financing, the project has a five-year average annual asset CAFD profile of approximately $27 million.

Hawaii Solar Phase I ROFO Acquisition Update

On September 19, 2019, the Oahu Partnership, which is part of the previously disclosed Hawaii Solar Phase I ROFO Acquisition, commenced commercial operations. In the aggregate, the Hawaii Solar Phase I ROFO Acquisition totals approximately 80 MW of utility-scale solar projects located in Kawailoa and Oahu, Hawaii and is being purchased from Clearway Group for a total cash consideration of approximately $29 million plus the assumption of non-recourse debt of $169 million. The purchase price for the Hawaii Solar Phase I projects will be funded with existing liquidity. The projects are expected to have a five-year average annual asset CAFD of approximately $2.7 million prior to corporate financing beginning January 1, 2020.

Signed Agreement with the Owner of Four Seasons Cayo Largo

On September 18, 2019, the Company entered into a 15-year tolling agreement with a hotel owner to supply chilled water, hot water and electricity through a dedicated combined heat and power facility to be constructed in Fajardo, Puerto Rico. The Company anticipates the project will require approximately $13 million in capital and is expected to commence commercial operations by the second half of 2020. Once operational, the project is expected to have a five-year average annual asset CAFD of approximately $1.4 million on an unlevered basis prior to corporate financing beginning January 1, 2021.

Repowering 1.0 Partnership Update

On June 17, 2019, the Company, through an indirect subsidiary, entered into binding equity commitment agreements in the previously announced partnership with Clearway Group to enable the repowering of two of the Company's existing wind assets, Wildorado and Elbow Creek, which total a combined 283 MW. As part of the transaction, a subsidiary of the Company entered into a financing agreement for construction debt. The construction financing was in part used to reduce outstanding principal at the existing Viento project financing through the removal of Wildorado from the Viento collateral package. In connection with the completion of this financing, and after taking into account the reduction in debt service in 2019 resulting from the partial repayment of the Viento financing, the Company committed to invest an estimated $111 million in net corporate capital to fund the repowering of the wind facilities, subject to closing adjustments. The assets under the transaction are expected to reach COD by early 2020 and contribute incremental asset CAFD on a five-year average annual basis of approximately $12 million beginning January 1, 2020.

DG Investment Partnerships with Clearway Group

During the third quarter of 2019, the Company invested approximately $4 million in the DG investment partnerships with Clearway Group, bringing total capital invested to $256 million4 in these investment partnerships. As of September 30, 2019, through the existing partnership agreements, the Company owns approximately 253 MW5 of distributed and community solar capacity with a weighted average contract life of approximately 19 years.

Mesquite Star Drop Down Offer Update

On June 18, 2019, Clearway Group offered the Company the opportunity to purchase 100% of CEG's interests in Mesquite Star Pledgor LLC, which owns the Mesquite Star wind project, a 419 MW utility scale wind facility expected to reach COD in 2020. Due in part to ongoing capital constraints related to the PG&E situation and the prioritization of capital requirements targeted for the second half of 2020 and beyond, the Company has elected to forgo the opportunity to acquire the project.

Asset Divestitures

Sale of Energy Center Dover and Interests in Energy Center Smyrna

On September 5, 2019, the Company entered into an agreement with DB Energy Assets, LLC, which is jointly owned by DCO Energy, LLC and a subsidiary of Basalt Infrastructure Partners II GP Limited, to sell 100% of its interests in Energy Center Dover LLC and Energy Center Smyrna LLC. Energy Center Dover LLC owns a 103 MW natural gas facility located in Dover, Delaware. The transaction is subject to standard regulatory approvals and the completion of certain maintenance activities.

Sale of HSD Solar Holdings, LLC assets

On October 8, 2019, the Company, through HSD Solar Holdings, LLC ("HSD") sold 100% of its interests in certain distributed generation solar facilities totaling 6 MW to the off-taker under the PPA, for a cash consideration of $20 million. The sale took place as a result of the off-taker exercising its right of purchase pursuant to the PPA. In conjunction with the sale, the Company repaid in full the non-recourse lease financing debt associated with the HSD projects, as well as the remaining 3 MW of projects residing in the Apple I LLC portfolio. Net of cash released at closing, the Company paid $23 million to terminate this financing.

Financing Update

Agua Caliente Borrower 2 Repayment

On October 21, 2019, the Company, through Agua Caliente Borrower 2 LLC, repaid $40 million of the outstanding note balance, including accrued interest and premiums, under the Agua Caliente Borrower 2 non-recourse project financing. The repayment was funded with existing liquidity and will result in approximately $3.5 million in annual debt service savings, the savings of which will be available to corporate liquidity upon the project level event of default resulting from the PG&E bankruptcy being cured.

Quarterly Dividend

On October 29, 2019, Clearway Energy, Inc.’s Board of Directors declared a quarterly dividend on Class A and Class C common stock of $0.20 per share payable on December 16, 2019, to stockholders of record as of December 2, 2019. The Company will continue to assess the level of the dividend pending developments in the PG&E Bankruptcy, including the Company's ability to receive unrestricted project distributions.

Seasonality

Clearway Energy, Inc.’s quarterly operating results are impacted by seasonal factors, as well as variability in renewable energy resources. 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

  • Receipt of distributions from or generated by unconsolidated affiliates impacted by the PG&E bankruptcy

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.

2019 and 2020 Financial Guidance

The Company is maintaining its 2019 full year CAFD guidance of $250 million.

The Company is also initiating 2020 CAFD guidance of $295 million. Financial guidance factors in the impact of the divestitures and financing updates described above and the contribution of committed growth investments based on the current expected closing timelines. This CAFD guidance does not factor in other potential growth, including the Carlsbad transaction. CAFD guidance also does not factor in other portfolio cash flow drivers beyond 2020 or the impact of future permanent capital formation.

Financial guidance for 2019 and 2020 assumes that all CAFD related to the projects impacted by the PG&E Bankruptcy is realized and continues to be based on median renewable energy production estimates.

Earnings Conference Call

On November 6, 2019, 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 a leading publicly-traded energy infrastructure investor focused on modern, sustainable and long-term contracted assets across North America. Clearway Energy’s environmentally-sound asset portfolio includes over 7,000 megawatts of wind, solar and natural gas-fired power generation facilities, as well as district energy systems. Through this diversified and contracted portfolio, Clearway Energy endeavors to provide its investors with stable and growing dividend income. Clearway Energy’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 Global Infrastructure Partners III (GIP), an independent infrastructure fund manager that invests in infrastructure and businesses in both OECD and select emerging market countries, through GIP’s portfolio company, Clearway Energy Group.

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,” “anticipate,” “forecast,” “plan,” “outlook,” “believe” and similar terms. Such forward-looking statements include, but are not limited to, statements regarding impacts resulting from the PG&E bankruptcy, the benefits of the relationship with Global Infrastructure Partners III (GIP) and GIP’s expertise, the Company’s future relationship and arrangements with GIP 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, impacts relating to the PG&E bankruptcy, general economic conditions, hazards customary in the power industry, weather conditions, including wind and solar performance, competition in wholesale power markets, the volatility of energy and fuel prices, failure of customers to perform under contracts, changes in the wholesale power markets, changes in government regulations, the condition of capital markets generally, the Company's ability to access capital markets, cyber terrorism and inadequate cybersecurity, the ability to engage in successful acquisitions activity, unanticipated outages at its generation facilities, adverse results in current and future litigation, failure to identify, execute or successfully implement acquisitions (including receipt of third party consents and regulatory approvals), the Company's ability to enter into new contracts as existing contracts expire, risk relating to the Company's relationships with GIP and Clearway Energy Group, the Company's ability to successfully transition services previously provided by NRG, the Company's ability to acquire assets from GIP, Clearway Energy Group or third parties, the Company's ability to close drop down transactions, and the Company's ability to maintain and grow its quarterly dividends. 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 Adjusted EBITDA and Cash Available for Distribution are estimates as of today’s date, August 6, 2019, 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 SEC.


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 OPERATIONS
(Unaudited)

Three months ended
September 30,

Nine months ended
September 30,

(In millions, except per share amounts)

2019

2018

2019

2018

Operating Revenues

Total operating revenues

$

296

$

292

$

797

$

824

Operating Costs and Expenses

Cost of operations

86

84

249

247

Depreciation and amortization

112

84

285

247

Impairment losses

-

-

19

-

General and administrative

7

6

20

17

Transaction and integration costs

-

17

2

19

Development costs

1

1

4

1

Total operating costs and expenses

206

192

579

531

Operating Income

90

100

218

293

Other Income (Expense)

Equity in earnings of unconsolidated affiliates

38

32

52

65

Other income, net

2

2

6

4

Loss on debt extinguishment

-

-

(1

)

-

Interest expense

(106

)

(74

)

(337

)

(200

)

Total other expense, net

(66

)

(40

)

(280

)

(131

)

Income (Loss) Before Income Taxes

24

60

(62

)

162

Income tax (benefit) expense

(11

)

11

(14

)

17

Net Income (Loss)

35

49

(48

)

145

Less: Pre-acquisition net income of Drop Down Assets

-

-

-

4

Net Income (Loss) Excluding Pre-acquisition Net Income of Drop Down Assets

35

49

(48

)

141

Less: Income (Loss) attributable to noncontrolling interests

(4

)

28

(43

)

25

Net Income (Loss) Attributable to Clearway Energy, Inc.

$

39

$

21

$

(5

)

$

116

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

73

69

73

67

Weighted average number of Class C common shares outstanding - diluted

75

69

73

77

Earnings (Losses) per Weighted Average Class A and Class C Common Share - Basic

$

0.36

$

0.20

$

(0.04

)

$

1.14

Earnings (Losses) per Weighted Average Class A Common Share - Diluted

0.36

0.20

(0.04

)

1.14

Earnings (Losses) per Weighted Average Class C Common Share - Diluted

0.36

0.20

(0.04

)

1.10

Dividends Per Class A Common Share

0.20

0.32

0.60

0.927

Dividends Per Class C Common Share

$

0.20

$

0.32

$

0.60

$

0.927


CLEARWAY ENERGY, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)

Three months ended
September 30,

Nine months ended
September 30,

(In millions)

2019

2018

2019

2018

Net Income (Loss)

$

35

$

49

$

(48

)

$

145

Other Comprehensive (Loss) Gain

Unrealized (loss) gain on derivatives, net of income tax benefit of $0, $1, $0 and $4

(1

)

6

2

30

Other comprehensive (loss) gain

(1

)

6

2

30

Comprehensive Income (Loss)

34

55

(46

)

175

Less: Pre-acquisition net income of Drop Down Assets

-

-

-

4

Less: Comprehensive (loss) income attributable to noncontrolling interests

(4

)

31

(42

)

41

Comprehensive Income (Loss) Attributable to Clearway Energy, Inc.

$

38

$

24

$

(4

)

$

130


CLEARWAY ENERGY, INC.
CONSOLIDATED BALANCE SHEETS

(In millions, except shares)

September 30, 2019

December 31, 2018

(unaudited)

ASSETS

Current Assets

Cash and cash equivalents

$

148

$

407

Restricted cash

249

176

Accounts receivable — trade

141

104

Accounts receivable — affiliate

3

-

Inventory

43

40

Derivative instruments

1

-

Prepayments and other current assets

34

29

Total current assets

619

756

Property, plant and equipment, net

5,562

5,245

Other Assets

Equity investments in affiliates

1,181

1,172

Intangible assets, net

1,103

1,156

Derivative instruments

-

8

Deferred income taxes

73

57

Right of use assets, net

191

-

Other non-current assets

109

106

Total other assets

2,657

2,499

Total Assets

$

8,838

$

8,500

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities

Current portion of long-term debt

$

1,965

$

535

Accounts payable — trade

54

45

Accounts payable — affiliate

63

19

Derivative instruments

15

4

Accrued interest expense

49

44

Accrued expenses and other current liabilities

100

57

Total current liabilities

2,246

704

Other Liabilities

Long-term debt

4,143

5,447

Derivative instruments

95

17

Long-term lease liabilities

193

-

Other non-current liabilities

115

108

Total non-current liabilities

4,546

5,572

Total Liabilities

6,792

6,276

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); 193,413,843 shares issued and outstanding (Class A 34,599,645, Class B 42,738,750, Class C 73,336,698, Class D 42,738,750) at September 30, 2019 and 193,251,396 shares issued and outstanding (Class A 34,586,250, Class B 42,738,750, Class C 73,187,646, Class D 42,738,750) at December 31, 2018

1

1

Additional paid-in capital

1,830

1,897

Accumulated deficit

(66

)

(58

)

Accumulated other comprehensive loss

(17

)

(18

)

Noncontrolling interest

298

402

Total Stockholders' Equity

2,046

2,224

Total Liabilities and Stockholders' Equity

$

8,838

$

8,500


CLEARWAY ENERGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

Nine months ended September 30,

2019

2018

(In millions)

Cash Flows from Operating Activities

Net (loss) income

$

(48

)

$

145

Adjustments to reconcile net income to net cash provided by operating activities:

Equity in earnings of unconsolidated affiliates

(52

)

(65

)

Distributions from unconsolidated affiliates

32

58

Depreciation and amortization

285

247

Right of use asset amortization

5

-

Amortization of financing costs and debt discounts

14

19

Amortization of intangibles and out-of-market contracts

52

52

Adjustment for debt extinguishment

1

-

Impairment losses

19

-

Changes in deferred income taxes

(14

)

17

Changes in derivative instruments

101

(39

)

Loss (gain) on disposal of asset components

5

(2

)

Changes in prepaid and accrued liabilities for tolling agreements

12

8

Changes in other working capital

(38

)

(44

)

Net Cash Provided by Operating Activities

374

396

Cash Flows from Investing Activities

Acquisitions

(100

)

(11

)

Partnership interests acquisition

(6

)

-

Acquisition of the Drop Down Assets

-

(126

)

Buyout of Wind TE Holdco non-controlling interest

(19

)

-

Capital expenditures

(200

)

(62

)

Cash receipts from notes receivable

-

10

Return of investment from unconsolidated affiliates

37

22

Investments in unconsolidated affiliates

(14

)

(16

)

Other

2

8

Net Cash Used in Investing Activities

(300

)

(175

)

Cash Flows from Financing Activities

Net (distributions) contributions from noncontrolling interests

(15

)

93

Net proceeds from the issuance of common stock under the ATM

-

151

Payments of dividends and distributions

(116

)

(174

)

Payments of debt issuance costs

(15

)

(5

)

Proceeds from the revolving credit facility

22

35

Payments for the revolving credit facility

(22

)

(90

)

Proceeds from the issuance of long-term debt

586

227

Payments for long-term debt

(700

)

(385

)

Net Cash Used in Financing Activities

(260

)

(148

)

Net (Decrease) Increase in Cash, Cash Equivalents and Restricted Cash

(186

)

73

Cash, Cash Equivalents and Restricted Cash at beginning of period

583

316

Cash, Cash Equivalents and Restricted Cash at end of period

$

397

$

389


CLEARWAY ENERGY, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
For the Nine months ended September 30, 2019
(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, 2018

$

-

$

1

$

1,897

$

(58

)

$

(18

)

$

402

$

2,224

Net loss

-

-

-

(20

)

-

(27

)

(47

)

Unrealized loss on derivatives, net of tax

-

-

-

-

(1

)

(1

)

(2

)

Buyout of Wind TE Holdco non-controlling interest

-

-

(5

)

-

-

(14

)

(19

)

Capital contributions from tax equity investors, net of distributions, cash

-

-

-

-

-

19

19

Contributions from CEG for Oahu Partnership, non-cash

-

-

-

-

-

12

12

Cumulative effect from change in accounting principle

-

-

-

(2

)

-

(1

)

(3

)

Common stock dividends and distributions

-

-

(22

)

-

-

(17

)

(39

)

Balances at March 31, 2019

$

-

$

1

$

1,870

$

(80

)

$

(19

)

$

373

$

2,145

Net loss

-

-

-

(24

)

-

(12

)

(36

)

Unrealized gain on derivatives, net of tax

-

-

-

-

3

2

5

Distributions from non-controlling interests, net of capital contributions, cash

-

-

-

-

-

(30

)

(30

)

Contributions from CEG for Kawailoa, Repowering Partnerships, non-cash

-

-

-

-

-

6

6

Stock-based compensation

-

-

1

(1

)

-

-

-

Non-cash adjustment for change in tax basis of assets

-

-

2

-

-

-

2

Common stock dividends and distributions

-

-

(21

)

-

-

(17

)

(38

)

Balances at June 30, 2019

$

-

$

1

$

1,852

$

(105

)

$

(16

)

$

322

$

2,054

Net income (loss)

-

-

-

39

-

(4

)

35

Unrealized loss on derivatives, net of tax

-

-

-

-

(1

)

-

(1

)

Distributions from non-controlling interests, net of capital contributions, cash

-

-

-

-

-

(4

)

(4

)

Contributions from CEG for Kawailoa, Repowering Partnerships, non-cash

-

-

-

-

-

1

1

Stock-based compensation

-

-

1

-

-

-

1

Non-cash adjustment for change in tax basis of assets

-

-

(1

)

-

-

-

(1

)

Common stock dividends and distributions

-

(22

)

-

-

(17

)

(39

)

Balances at September 30, 2019

$

-