From Nasdaq Stock Market: 2025-02-24 23:00:14

Clearway Energy (NYSE: CWEN) held its Q4 2024 earnings call on Feb 24, 2025, discussing financial and operational results that exceeded key objectives, with commitments to growth investments and renewable power generation. The company reaffirmed its 2025 guidance range, with confidence in meeting or exceeding the midpoint through committed investments and fleet performance. Clearway also announced commitments to new projects like the Honeycomb battery hybridization program and the repowering of Mt. Storm, showcasing a strong growth outlook for 2027 and beyond.

In a recent recommendation, analysts highlighted potential investment opportunities in companies like Nvidia, Apple, and Netflix. Clearway Energy has continued to make value accretive growth moves, signing agreements to acquire Tuolumne and committing to the Honeycomb battery hybridization program, expanding its renewable energy portfolio. The company remains focused on delivering sustainable earnings growth and setting the gold standard for being a leading energy company in the United States. Clearway Energy (CWEN) plans to invest $78 million in corporate capital in a program with an attractive CAFD yield. The company will fund this investment in 2026 with existing sources of liquidity. CWEN has also added 492 megawatts of Western U.S. storage projects to its identified drop-down opportunities list. The company is focused on high-return life-extending repowerings in its wind fleet, with 712 megawatts repowered or committed to be repowered. CWEN’s Mt. Storm repowering project is expected to increase capacity and drive incremental CAFD growth. The company is also contracting open positions on its operating fleet to drive future organic cash flow growth.

In the last quarter, Clearway Energy successfully contracted its California gas fleet and announced new RA contracts at El Segundo for approximately 272 megawatts. The company’s California flexible generation fleet is now fully contracted in 2026 and 78% contracted through 2027. Clearway Energy is focused on capturing full value for its plant’s RA capacity through methodical power marketing. The company is also exploring PPA extensions and repowerings on renewable projects to firm up growth visibility without deploying additional capital.

Looking ahead, Clearway Energy is in a strong position to achieve the top half of its 2027 CAFD per share target range. The company has identified multiple pathways to deliver CAFD per share growth for investors, including deploying over $350 million of capital and pursuing additional growth opportunities in its pipeline. CWEN is focused on creating shareholder value through growth investments, fleet optimization, and strategic contracting to meet its financial targets. Clearway Energy is actively evaluating M&A opportunities in the market to acquire assets within their capital allocation framework. Fleet optimization improvements, such as revenue contracting at El Segundo and Wildorado, are expected to increase future CAFD per share levels. Financial results for the full year show adjusted EBITDA of $1.146 billion and CAFD of $425 million. The company plans to utilize retained CAFD as a primary source of capital to fund growth investments and expects to achieve their 2025 CAFD guidance range of $400 million to $440 million. Clearway Group’s late-stage pipeline offers over $750 million of potential corporate capital investments through 2029 to meet growth objectives. The company is positioning itself as a leading energy provider to meet the rising demand for electricity in the U.S. due to digital infrastructure growth and reindustrialization. Clearway Group is actively developing five gigawatts of projects to serve data center demand across multiple markets. They are also scoping behind-the-meter projects with Elbow Creek Wind hosting the first demonstration project. Clearway aims to meet financial objectives for 2025 and beyond, with a focus on growth pathways and capital allocation. They anticipate continued success and growth, aiming for long-term CAFD per share growth. The company remains optimistic about the future, focusing on creating shareholder value and serving energy demand with innovative solutions.

In a recent update, Clearway Group announced an increase in excess debt capacity to $300-400 million. This reflects their outlook for long-term CAFD contribution and investment commitments. The company is confident in achieving this capacity based on fleet recontracting and operating changes. They are focused on executing plans and realizing incremental CAFD from the existing fleet. Clearway is also considering the impact of political changes, such as reciprocal tariffs and trade policies, on their operations and growth strategy. Clearway Group has successfully navigated changes in tariff rates by establishing revenue contracts and supplier relationships that allow for planned projects to proceed as scheduled. The company’s focus on constructible projects and customer needs has helped absorb additional costs. Clearway is looking at potential M&A opportunities in wind, solar, battery, and gas resources that align with its growth profile. Contracts for El Segundo were priced to meet the company’s 2027 CAFD per-share range, with further upside potential. Analysts are interested in Clearway’s data center capabilities and their impact on future growth. Clearway Energy is developing five gigawatts of projects in five states for meter and gigawatt scale. They are focused on supporting the energy needs of hyperscalers and colo customers by aligning land positions, interconnection, and mix of resources. The company is working on front-of-the-meter arrangements and complex colocation projects to provide renewable power to support load growth over the next three to four years. Clearway Energy is confident in their ability to deliver and construct the necessary technologies to meet the growing demand for digital infrastructure.

With capabilities in solar, wind, and storage, Clearway Energy is exploring solutions for data center customers. They are considering various revenue contracting structures that align with regulations and technological capabilities. While rules for interconnection and cost allocation are still evolving, Clearway Energy is focused on creating technology-driven physical infrastructure that can support multiple generation sources in one location. The company is optimistic about the future opportunities in the energy sector and is committed to sharing more information as their projects develop. Clearway Energy Group has been able to continue advancing its development pipeline despite the changing landscape of federal permitting for wind projects. A large part of their late-stage pipeline is on private lands, minimizing the impact of the executive order. The company remains optimistic about the progress of essential projects. Repowering projects have shown a greater level of certainty and value proposition for Clearway Energy, Inc. Analysts are pleased with the company’s update, noting the progress towards their 2027 targets and improved CAFD yields on recent announcements. The company remains focused on delivering top-half earnings per share and pursuing growth investments. Clearway Energy, Inc. aims to deliver high CAFD yields with an acceptable risk profile. They have a goal of a 10% CAFD yield for long-term growth. The company plans to allocate capital to assets with the highest long-term internal rate of return and CAFD yield. They are focused on value optimization and delivering compelling CAFD yields. Clearway Energy remains disciplined and cautious in their corporate capital structure.

Clearway Energy remains confident in their financial commitments and growth targets. They aim to show compelling growth and financial discipline that will be rewarded with a compelling valuation. The company plans to execute their growth goals and prudently build their business model for long-term success.

Clearway Energy is focused on asset acquisitions with the potential to repower in the future. They have a unique approach to value creation for assets like Tuolumne and Mt. Storm. The company stands out as a buyer who can improve assets and compete against other financial investors. The demand for renewable operating assets has shifted, giving Clearway Energy an advantage in the market. Clearway Energy, Inc. is looking to execute investments with a compelling value proposition in the next six months. They have strong financial sponsors in GIP BlackRock and Total to support their clean power assets. The company aims to leverage these relationships for future opportunities. The recent conference call highlighted their commitment to excellence and discipline in the market. The call concluded with positive remarks from CEO Craig Cornelius. Analysts also discussed potential M&A deals involving renewable power portfolios and financial backing. Overall, Clearway Energy is focused on growth and capital deployment with the support of their sponsors. 1. The stock market saw a significant increase today, with the S&P 500 reaching a new record high. The Dow Jones Industrial Average also saw gains, closing up over 200 points.

2. In international news, tensions are rising between Russia and Ukraine as reports of military buildup near the border have surfaced. The United States and European Union have expressed concern over the situation.

3. A new study released by the CDC shows that the efficacy of the Pfizer-BioNTech COVID-19 vaccine remains high, even against the Delta variant. The study found that the vaccine was 90% effective at preventing infection.

4. In sports news, tennis star Serena Williams has announced her withdrawal from the US Open due to a hamstring injury. This comes as a disappointment to fans who were looking forward to seeing her compete.



Read more at Nasdaq Stock Market: Clearway Energy (CWEN) Q4 2024 Earnings Call Transcript