Q1 2022 Clearway Energy Inc Earnings Call
Ladies and gentlemen, your conference will begin momentarily.
Once again, ladies and gentlemen, please standby your conference call will begin momentarily. Thank you for your patience.
[music].
Good day and thank you for standing by welcome to the Clearway Energy, Inc. First quarter 2022 earnings conference call. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question. During the session you will need to press star one on your telephone please be advised that today's conference.
Maybe Rick White recorded if you require any further assistance. Please press Star then zero I would now like to hand, the conference over to your host today, Chris Sotos, President and CEO of Clearway Energy Inc. Please go ahead.
Good morning.
First thank you for taking the time to join today's call.
Joining me this morning is acute.
Director of Investor Relations, Chad Plotkin, our Chief Financial Officer, and Craig <unk>.
<unk> and CEO of Clearway Energy group.
It will be available for the Q&A portion of our presentation.
Before we begin I'd like to quickly note that today's discussion will contain forward looking statements, which are based on assumptions that we believe to be reasonable as of this date.
Actual results may differ materially.
Please review the Safe Harbor in today's presentation as well as the risk factors in our SEC filings and.
In addition, we refer to both GAAP and non-GAAP financial measures.
Information regarding our non-GAAP financial measures and reconciliations to the most directly comparable GAAP measures. Please refer today's presentation.
Turning to page four.
First quarter results, which on a seasonal basis, the smallest contributor for the full year within a sensitivity range with Kathy at negative 2 million for the quarter, which is historically, our lightest quarter for Kathy generation due to the timing of debt payments and Logan renewable generation.
So we have also increased the dividend by 2% to 3536 per share or 1414 on annualized basis, thereby keeping us on track to deliver at the upper end of our range.
And dividend growth objectives for the year.
Importantly, our sale of the thermal business closed on May four with 135 billion of expected net proceeds which after accounting for $600 million of previously committed growth investments these clear way with $750 million in capital available to be allocated.
As a result of the thermal sale, we are revising our capital guidance for 2000 $22 million to $365 million.
Clearly pro forma Kathy outlook remains on track with less than $56 million of previously announced committed investments to fund and with Cod's on track for 2022 and 2023 as previously planned when completed these renewable assets will put clear ways pro forma Kathy at 385.
Milk or $1 90 per share with $750 million of unallocated capital remaining to be deployed.
And working with our new colleagues, we continue to advance the development projects that we've announced previously.
Want to take a moment to address some of the concerns out in the market generally regarding supply chain challenges and other risks.
Broader economy here of our country. There is of course crackling with dislocations in supply and increasing the cost for labor commodities and freight.
Power industry is no different.
Certainties in the policy environment for renewable power certainly add to the dynamics that businesses like ours have to address.
But admits those pressures we looked at the business. We have been really energy Inc. As one that is very well insulated from those complexities, leaving us very confident believe to fulfill the upper range, although long term dps growth strategy of 5% to 8% through 2026.
But certainly enterprise as a whole has the benefit during these times with having tremendous scale diversification and financial flexibility, which together put our integrated enterprise in the sweet spot generally and especially in market conditions like these.
We see this from the fact that Clearway group has a pipeline that is large enough diversified though that can provide clearway energy, Inc. With capital investment opportunities that will hold up across various market and policy scenarios.
And because of its ownership interest in 85 million shares and see what when clearly those projects goal is first how to meet the capital deployment needs, we have while balancing providing our shareholders with strong capture accretion.
This allows the entire enterprise during volatile periods such as this so the flex the system to assure that <unk> is able to invest that's targeted capital deployment levels and also it's targeted returns.
As well so it groups development platform and its parent region GOP also large enough prioritization with suppliers and other stakeholders when complex situations arise.
They bring to the procurement work a deep understanding of policy and global reach which has led to supply chain strategies that are proving relatively resilient.
And very importantly, the capital investment requirements, we need the need to drive our dividend per share growth requirements at Clearway Energy, Inc. Are substantial but not so great that our sponsor can be surgical about the choices. It makes it on supply chain.
That is serving us well today.
<unk> has been able to establish supply chains and project plans for both policy resilient and redundant or ability to enable our meeting the goals that we set for capital deployment.
As a result of this I am pleased to announce an increase in the amount of capital we expect to deploy relative to clearly development projects totaling $300 million and approximately eight 5% cap deals.
And projects provide a strong start to the allocation of our excess capital, giving clearway energy, Inc. Composite can achieve or beat the $2 15 <unk> per share outlook.
$750 million in proceeds from the final sale are completely deployed.
Turning to page five.
Let me spend some time, we are emphasizing clearway group's approach development and how the scale supports <unk> as a whole.
On the left side of the page you can get a better view affiliate groups development scale.
With over 22 Gigawatts of development projects, an increase of three gigawatts since last quarter.
It is diversified among wind solar and batteries with six seven gigawatts of late stage development.
Execution of this pipeline will benefit from rational policy decision, making untrue and could be accelerated to enactment of clean energy tax credits currently be advanced through Congress. The pipeline is robust and can enable growth for clearway energy, Inc. Across the spectrum of policy scenarios.
Moving to the longer term investors, including what is important to note that clearly groups pipeline is five times larger than at the time of VIP investments.
To elaborate further facts and circumstances make us confident that we are positioned to deploy that $56 million committed capital. We have planned for investment and familiarity one viola and Doug at solar during 2022 and 2023.
Does have their status in construction and because of the supply chain is being used as a global projects.
First and foremost with respect to the projects being constructed in Hawaii.
<unk> received the panel supply prior to the commencement of the investigation and are now advancing into commissioning will be completed this year, all without being subject to the risk of duties on rising up to the commerce Department's inquiry.
And second with respect to that yet.
It makes use of the supply chain designed to enable use of U S made polysilicon.
Assessing that polysilicon and wafers cells and modules for the <unk>.
Thats occurring outside of China.
Hope of the anti circumvention petition did not target a supply chain of this configuration.
Fact affirmed in a memo issued earlier this week on May 2nd by the Commerce Department and we just did that's the modules made with wafers produced outside of China, We're not subject to the inquiries for.
While the <unk> for decades, two phases have been extended by six months into 2023.
Pension that enabled to establish on the supply chain, which we're pleased to be it will be a plus.
Moving to the right side of the slide and looking after the next wave of growth. We are planning with our sponsor we believe should prove similarly.
We only sold funds that we now hold an option to invest in our fully operational or being constructed with solar modules already in the country today.
And across the range of subsequent projects, but clearly group this time for Texas with expansion expansion of our portfolio and queso work in PJM is advancing projects that make use of both wind and solar technologies, providing diversification against policy risks and.
And also has secured redundant module suppliers producers.
Producers, whose manufacturing footprint includes supply chain options outside of the scope of the commerce Department's investigation as it is presently defined.
As noted these investments will have a weighted average contract tenure of 13 years.
We'll tour at least $300 million of capital deployment, and an average eight 5% Cathy and approximately eight 5% cap deals we.
We are working with Clearway group to arrange succession of financial closings for these dropdowns over the forthcoming months.
With the majority of those planned for the next six months.
Importantly, the range of projects and flexibility and capital structures.
You can deploy reinforces our confidence for $300 million capital deployment goal can be met.
The weight policy choices on trade are ultimately made by the administration and we see new energy clean energy tax credit is enacted we would anticipate the ability to deploy substantially more capital into this family of projects with a corresponding increase in the catheter that will generate over time.
In summary, we groups development scale and flexibility provides ceiling with transparent and core growth strategy driving Kathy per share growth into the future and we are optimistic about what the outlook holds seaborne shareholders.
Turning to page six.
Page six updates our projects progress to the $2 15 of <unk> per share as we deploy the $750 million of excess cash proceeds given the increase from $250 million to at least $300 million that we foresee and our latest potential dropdowns from Clearway group. We now see that we have line of sight to $26 million of additional Kathy versus.
$21 million as Kathy that we presented last quarter or $2.04 of taxi for Sherwin advocate with the $450 million of proceeds remain.
Over the next several quarters, we look forward to increasingly deployment of capital and achieving or exceeding the $2 15 by this time next year with that I will turn it over to Jeff Jeff.
Thank you, Chris turning to slide eight.
Today Clearway is reporting first quarter, adjusted EBITDA of $260 million and cash available for distribution or Kathy of negative $2 million.
An amount within the company as expected quarterly sensitivity range.
During the quarter the company's conventional segment performed in line with expectations.
For renewables the utility scale solar portfolio performed well.
Overall conditions led to production, 6% over expectations.
However, this was offset by more challenging operational conditions at our wind portfolio, which impacted results during the quarter.
Overall, while first quarter copy results were at the lower end of the company's target quarterly sensitivity range. We note that due to the seasonality of our portfolio. The first quarter is generally a small contributor to full year results.
As previously discussed due to the original uncertainty of when the thermal transaction would close 2020 to cap. The guidance was originally established as its own the thermal business for the full year.
With the thermal sale now complete we are updating our 2022 capex guidance to $365 million, which no longer factors in the expected contribution from the thermal business beginning in may of this year.
As a reminder, 22 cap team Kathy guidance continues to assume the achievement of full year P 50 renewable performance.
Not factor in the full contribution from existing committed growth investments, which informs the expected $385 million and pro forma Kathy that Chris referenced earlier.
For further information as it relates to the seasonality expectations of the portfolio and the timing of expected cap the realization from our growth investments. Please refer to the appendix section of today's presentation.
Turning to the balance sheet here.
Adhering to our long term credit metrics, while maintaining flexibility and how we fund growth continues to be core to our overall business strategy.
As discussed on our previous quarterly calls due to the timing of when we expected to receive the net proceeds from the thermal sale relative to when we needed to finance committed growth investments, we require temporary financing to bridge the companys capital needs.
Now with the thermal sale complete we are fully repaid the outstanding $640 million in short term borrowings as at the end of the first quarter, which included the $305 million under the revolver and a $335 million bridge loan used to fund the acquisition of the remaining interest in the Utah solar portfolio.
With these repayments the company's pro forma credit metrics are now back in line with long term targets. There are no cash borrowings under the revolver and the company has virtually no interest rate exposure at 99% of our consolidated long term debt is fixed with the earliest corporate maturity in 2028.
With the strength of our balance sheet and the excess of $750 million in proceeds from the thermal sale C. When now has unprecedented flexibility to execute on its long term objectives as significant growth can be achieved without requiring capital market access.
Maintaining our balance sheet targets.
Now I will turn the call back to Chris for closing remarks.
Thank you Jen.
Turning to page 10.
Our goals for the year are simple first.
Our financial and operational commitments.
Close the thermal transaction, we are on track to hit our revised capital guidance for the year and we intend to increase our dividend at the upper range of our long term, 5% to 8% EPS growth target.
As we discussed during this presentation, we and our colleagues at Clearway group.
Our focus on allocating our capital to new dropdown assets and providing greater visibility to achievement of the $2 15, and Kathy per share when deployed.
And finally, we continue to engage in discussions to hedge our natural gas assets with the emphasis on El Segundo.
In conclusion.
Overall, the first quarter is where we want about execution and moving forward with our growth plans and I think we've made a great start to the year.
Operator, please open the lines for questions.
Thank you if you have a question at this time. Please press Star then one on your Touchtone telephone. If your question has been answered or you wish to remove yourself from the queue. Please press the pound key.
And our first question comes from the line of Julien Dumoulin Smith with Bank of America. Your line is open. Please go ahead.
Hey, good morning team. Thanks for the time and the opportunity to connect I Hope you guys are doing well.
Couple of quick questions here first off congrats on the thermal sale here.
I'm just curious a little bit more if you can elaborate on how you think about redeployment proceeds timeline et cetera.
What does that marketplace look like at present, how much is the <unk>.
Trade and development activity impairments.
Packed at all your ability to look at other assets that are already operating here I mean, just curious curious on the timeline now that you've got the cash in hand, how about how long are we going to need to wait and then I'll just throw the second question.
Brief clarification, just what were the operational issues just tied to win that you alluded to a second ago Chuck.
Sure. Thanks, Julian I'll take the first one and then I'll, let Chad kind of take the second obviously.
To your first question as usual a couple of pieces on packing your questions Julien, but for part one basically the timing of it will be that 300 million will kind of be spend in conjunction with development projects. So I would say over 'twenty two 'twenty three 'twenty four in terms of the deployment of the remainder of that capital.
We're working to deploy it frankly now we will see how it kind of all that goes.
But I think for US we definitely wanted to make sure that we can come to conclusion, but I would say by this time next year. When we've had calls previously I kind of said after.
After a year of trying to deploy capital we haven't found a use for it that would be.
That makes sense to return to shareholders. So I think for our view about we intended to deploy the capital, but kind of this time next year and see where we end up but Chad for Julian second question.
Yes, sure Julien I mean, if you look at some of the data in the appendix Joanne I'd say there were certain instances in the quarter were resource was not optimal to what our expectations were we also had some availability challenges that some of the assets say in Texas and the Midwest, where we have some of the I've seen that happen in February .
In early March which pushed out availability and then obviously what pushed down revenue capture as well those were a couple of the core items that I would say impacted the wind assets during the quarter.
Chris just going back to what you said a second ago.
You flagged.
After a year you might return it to shareholders here again.
Certainly not the core expectation you're right again, I don't want to put words in your mouth I just wanted to make sure of it right there.
Julien the goal is to deploy the capital in most efficient way as possible.
The great Depression hits in the stock in 2017, we might have a different view.
But I think given where we sit right now the focus is on redeploying it into other assets.
Got it.
And at risk of pushing.
Further.
Any.
Evolving focus.
Think about wind and solar versus the litany of other asset classes within energy transition.
Just curious if the setting expectations early if you guys are looking at anything more novel.
I don't think anything in particular, Julian I want to get I don't think the majority of those excess proceeds would be in a completely different asset class. If thats. Your question, maybe at the margin, but that's fairly minimal I would think.
Alright excellent well. Thank you guys best of luck, we'll talk soon.
Thank you.
Thank you and our next question comes from the line of William <unk> with UBS. Your line is open. Please go ahead.
Good morning, and thank you. My first question just on the Commerce memo a couple of days ago. It appears to clarify that the duty rates.
If any ultimately end up being applied on southeast Asian module imports would be equal to the company's existing rate for imports from China.
Do you think that potentially gives developers and manufacturers enough clarity now to kind of restart imports now that sort of that risk can actually be quantified.
Our trick once you take that one youre probably in the best position yes.
Yes.
First just emphasize that same memo provided the clarity.
That I think.
We were looking to see.
Committed projects that we're advancing into construction and that align with the $56 million worth of.
Upcoming investments for <unk> as noted before so I think at least as far as our company is concerned thats more of a question about the environment for future projects.
Just just to state that unequivocally.
But for the broader industry as context I think.
Our perspective is that.
The Commerce Department.
In that memo was looking to do something helpful to the industry.
Trying to create a ceiling that people could look to as the basis for.
Structuring financings projects could commence construction with an understanding of how high the potential duty load might go.
But as the broader landscape of industry participants has consulted with each other over the course of the last couple of days I think.
Our collective perspective remains the same which is that we're grateful for that helpful gesture, but.
Yes.
That fundamental revisiting of.
What product definition is within the scope of the inquiry, we still believe to be unlawful and.
Yeah.
And the focus for the Commerce Department really should be on getting to a comp negative determination and that inquiry, which we believe to be inconsistent with both one prior precedent.
Sure.
And I think that's really where the focus needs to remain for the Commerce Department.
The spectrum of potential duty level that.
That are produced by that and the fact that some wafer producers have no corresponding company specific tariff rate because they don't also make solar cells and modules means that it is helpful, but not really what the industry requires in order to achieve the kind of growth that the economy needs and and that also is needed attendance decline Nichols.
Sure.
Understood Okay.
My last question here is just on the eight 5% target yield on the reinvestment of the $300 million.
I'm curious to what extent is that based on your ongoing discussions versus perhaps.
Conservative assumptions.
Particularly here in light of the rising rate environment.
Sure I think it's really the rising rate environment I don't think has translated precisely through winter marginal bid is externally for assets that may take some time. So if your question is bullish should we expect to really do that much better than the eight and a half, especially on the development Dropdowns from.
C. G. I don't think Thats, a good working assumption that the house has kind of taken into account and where those projects are in the economics of them I don't think youre going to see.
A very elastic curve so to speak with the movements youre seeing in treasury directly translatable to higher cap deals here in the very very short term if that's your question.
Okay very clear alright, that's it for me thanks very much sure.
Thank you and our next question comes from the line of Colton Bean with Tudor Pickering Holt. Your line is open. Please go ahead.
Good morning, Chris I think you just touched on this in terms of evaluation impact. So I guess just broadly for the third party M&A market. You can you describe the level of activity Youre seeing there and the opportunity set that you see for that remaining $450 million. It doesn't sound like you've seen a shifting and evaluations, but also would appreciate an update if any.
Sure I mean, I think to answer your question. There is a large amount of assets that are out there I think obviously, we do our own sourcing as well on a bilateral basis and so from our view.
Spain auctions for assets that are out there where it makes sense. We'll also engage in bilateral I think to your question around <unk>.
Are we seeing the move in treasury so to speak.
Move through in terms of a new bidding paradigm not to achieve your question I think a little bit that remains to be seen.
Sort of.
Bids lately that kind of gone out to see if the move in treasuries in the lake have actually moved.
The overall pricing of assets. So I think it's a little bit remains to be seen but I think the one part to emphasize is we can really be patient in our capital deployment, it's not as though with the $450 million, we need to get it done in three months or something of that nature. So I think to kind of hold your question as well as some others were really going to take our time.
And to make certain that we're investing in the appropriate assets that are quality assets in that appropriate returns to make sure that we can kind of group for the long term because we have the flexibility of time and not needing to do something here in the next.
Three six months to kind of get the cash off our balance sheet. That's not the total we're going to take.
Great and then just on the on the development pipeline and any change to your approach and securing long lead items.
<unk> further afield, maybe earlier stage projects and starting those conversations have been earlier than you otherwise would have.
Chris.
Yes.
Yes, we've done that I think I understand your question to be.
Are we securing.
Major components for projects at an earlier juncture in the project lifecycle than we might have historically in the industry and the answer is yes.
No.
For example for the projects that you see.
Reference for the roughly two gigawatts worth new dropdown opportunities on which we're focused today, we've secured the major components for all of those projects.
And in the past industry paradigm that might not be the case Jeff.
Generally speaking as we are developing projects today, we are now.
Looking to.
Sign agreements that entitled US to the required components for our project at the same time that we're signing.
The revenue contracts that represent the bulk of the projects planned capacity. So we're doing that earlier.
And I think Thats fair.
It's both for us and our off takers because in an environment that is now inflationary and also on.
Over a 24 month interval.
Harder to predict in terms of evolution in the last decade wise.
For us and our customers, it's best for us to decide at the same time, what the project.
We designed and capital costs will be and to assure each other that we've reached an agreement on the revenues that we required for the project to be feasible. So yes.
We're procuring earlier.
To enable that certainty and I think one of the things that we enjoy and clearway group at the parent entity level as we have a very substantial balance sheet and.
Our ultimate upstream parent.
A source of capital that is greater than we could ever really require so when we can make rational decisions that help us.
<unk> pipeline with more certainty than others, we're doing that.
We think that we think that that kind of advantage is going to inure to us.
In the marketplace during the course of the next few years.
That's helpful. I appreciate the time.
Thank you and our next question comes from the line of Michael Lapides with Goldman Sachs. Your line is open. Please go ahead.
Hey, guys. Thank you for taking my questions I have.
Two that are kind of unrelated to each other I apologize for that.
Question number one is just broadly speaking.
When you're looking at you at utility scale solar and storage contracts today and.
And what the PPA prices for <unk>.
And also when contracts today.
The PPA prices are and kind of just compare them to what they were 12 or 18 months ago, how big of a change like.
Like how much our PPA prices in the market place and I know theres. Some uncertainty obviously with the department of Commerce overhang, but just curious just on broader inflationary and supply chain trends, how much your PPA prices changing in the marketplace.
Sure Craig.
Substantially.
But what's interesting is that I think our customers.
Relative to the range of alternative sources of supply healthy financial benefit in those elevated PPA prices and of course continue to have.
Long run the carbonization goals that they are trying to meet so.
Thanks.
Hi.
Can put numbers to it I mean, there are substantial.
15% to 30% increases in wind PPA rates over the space of the last 16, alright six months.
Areas.
Sort of resource adequacy contract pricing on.
Battery deliveries for sort of the near term.
Substantially higher than that in terms of percentage values.
For solar PPA rates.
Again, there are substantially higher than those percentage values. As you can appreciate Michael there is a variety of idiosyncrasies that come with resource and project location.
The Bottomline is PPA prices are increasing.
Between 15, and 50% roughly for.
Vintages during the course of say the next 24 to 36 months.
But they still offer.
Relative to alternatives are pretty favorable.
Value proposition for customers.
We've seen upward trends on racks that are.
Even higher than those percentage values and I think with that also reflects.
Is the fact that sort of supply chain dislocations and project completion timelines.
Converging with escalating demand for renewable energy products.
Lead customers to be prepared to pay more for those racks. So in total we are seeing a pretty significant escalation in renewable power prices.
As somebody who wants to see the resource accelerate broadly across the country as fast as possible.
I don't relish, the fact that market conditions require that.
But we are seeing customers be prepared to continue to engage with us and advanced projects forward, even with that price escalation because the renewable projects relative to other fuel sources are still disinflationary.
Got it Okay. That's super helpful.
The second question unrelated one little quiet on this topic any update on the California gas plants.
Maybe some political cycle not a big update we continue to work on it I think that we've talked about a little bit previously is most of the California ISO is procurement covenants in the second and third quarter. So we can work on.
But that's probably where we'll get our next significant update is probably a more third quarter ish along those lines.
Any thoughts on what any potential change in the retirement of Diablo Canyon, obviously theres been some perhaps out of the Governor's office, what that would mean for one of those asset and one of the assets yet.
I really don't see that big a delta just because of as we've talked about over the years. The importance of the assets. We do have and I think in a lot of ways given what we're seeing in the market today.
The assets are as needed if not more so than ever so.
Don't think it would really affect things that much but remains to be seen.
Got it thanks guys much appreciate it.
Thank you and our last question comes from the line of Noah Kaye with Oppenheimer. Your line is open. Please go ahead.
Thanks for taking the question could you give us a bit more of an update on the battery supply situation.
What youre seeing in terms of cost increases there and any kind of pushout in delivery dates how are you managing that aspect of the project development.
Great.
Yes.
It's an interesting dynamic.
Because theres so many different factors that converge.
On the one hand.
Accelerating demand for.
For use of batteries and automotive applications.
Strained the supply expansions that were planned already by different manufacturers.
Push outs of parents solar and storage projects in the U S.
Have.
Tempered.
Some of the pricing escalation that we're seeing taking up at the beginning of this year.
On.
So.
For our company, specifically I think we enjoy.
<unk> of customers or suppliers I should say.
Because of.
The.
Many gigawatt hours worth of batteries. We are we have procured or are planning to procure for project completions. During the next four years.
But also upstream from Clearway group and Clearway Energy Inc.
It is our own or is it.
As a global investor with a very global footprint.
Renewable and storage investments and those suppliers recognize that as they're engaging with us they're also sort of engaging with that broader family.
So we're able to have strategic conversations with them and and and within those for those to keep our project schedules on track as we look forward.
I think our company and others like us are looking to establish analogues to the type of framework agreements that the automotive industry in place with those suppliers.
And with those framework agreement.
Give ourselves.
Certainty of supply certainty as cost structure within ranges and also.
Evolution of what that manufacturing footprint might look like and.
The suppliers with whom we are engaged on those types of framework agreements really see.
How essential it is for the long run story, our industry can tell for policymakers and citizens in America that they've built manufacturing footprint here in America. So as we're crafting those framework agreement.
We are first looking to secure adequate supplies. So that we can build the resources that our customers need here.
Second looking to establish a card or a cost.
Now us to be confident that developing projects for third also looking too.
Accelerate establishment.
Establishment of battery supply chains.
Here in the Continental U S.
With that.
Footprint can both diminished risk around trade and freight.
But also make good on that.
The kinds of commitments that we're looking to make or policymakers.
<unk> established a more robust environment for incentives for the deployment of batteries in renewables.
Great. Thank you Craig and just a quick housekeeping item.
If I can clarify that.
There's a helpful table in the appendix around the contribution of <unk>.
Committed or closed growth investments.
Year basis.
Cascade for 'twenty, three and 'twenty four possible to give us roughly what that might be for 2022, how material. It is.
Okay.
Shad once it's exactly I think it's basically the 56 million, but go ahead.
Yes, maybe I wasn't exactly following the question. So are you just asking how much of that incremental capital would come in 'twenty two.
How much of the capacity.
Contribution in 2022 is from.
The committed or closed broke investments.
Oh.
Well I think if you think about it from a timing perspective, so what I would say is if you look at the table, which I believe you are looking at a slide 14. So obviously anything that had funded through the end of last year and then early part of this year, so really through Blackrock, that's almost entirely encapsulated in our <unk>.
2022 expectations.
I would say with regards to <unk> in Daggett.
Somewhat of a negligible contribution in the 2022.
Forecast what I'd ask you to do is is that what we tried to do is give a sense of the shape as those materialize, which you can see on slide 17, So basically the way I would think about it is is that assuming we had all of our targets.
On <unk> and those begin to generate the revenue and associated Kathy we would expect to see a pretty sizeable bump up starting next year.
Right right. So if I could just reflect that.
Kathy for this year is done and whatever it gets done this year in terms of additional projects.
Any contribution would be upside.
That is a fair way to think about it right.
Great. Thank you.
Yes.
Thank you and that does conclude today's question and answer session and I would like to turn the conference back over to Kris Douglas for any further remarks.
Thank you everyone for your time I appreciate the support and everyone stay safe. Thank you.
This concludes today's conference call. Thank you for participating you may now disconnect everyone have a great day.
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[music].
Okay.
Yes.
Okay.
Okay.
Okay.
Okay.
Okay.
Okay.
Okay.
Yes.
Yes.
Yes.
Okay.
Okay.
Sure.
Yes.
Okay.
[music].
Yes.
Thanks.
Yes.
Okay.
Okay.
Yes.
Sure.
Yes.
Yes.
Okay.
Okay.
Okay.
Yes.
Sure.
<unk>.
Yes.
Yes.
Okay.
Yes.
Yes.
[music].
Yes.
Thanks.
Yes.
Okay.
Yes.
Yes.
Yes.
Okay.
Okay.
[music].
Okay.
Okay.
Yes.
Okay.
Okay.
Okay.
Thanks.
Yes.
Okay.
Thank you.
Yes.
Yes.
[music].
Okay.
Okay.
Okay.
Okay.
[music].
Okay.
Sure.
Okay.
Okay.
Yes.
Okay.
Yes.
Okay.
Yes.
Okay.
Okay.
Okay.
Yes.
Okay.
Okay.
Okay.
Yes.
Sure.
Okay.
[music].
Okay.
Thanks.
Okay.
Okay.
[music].
Yes.
Yes.
Okay.
Okay.
Okay.
Yes.
Yes.
Okay.
Okay.
Okay.
Yes.
Okay.
Okay.
Sure.
Yes.
[music].
Yes.
[music].
Okay.
Yes.
Okay.
Sure.
Okay.
Yes.
Yes.
Okay.
Okay.
Okay.
Yes.
Yes.
[music].
Yes.
Yes.
Yes.
[music].
Yes.
Yes.
[music].
Hum.
Tom.
Yes.
Okay.
Yes.
Yes.
Yes.
Yes.
[music].
[music].
Yes.
Yes.
[music].