Q3 2024 Clearway Energy Inc Earnings Call

October 30, 2024

Operator: Hello and welcome to Clearway Energy, Inc. Q4 2024 Earnings 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 the question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. I would now like to hand the conference over to Akil Marsh. Sir, you may begin.

Hello and welcome to Clearway Energy Inc. 3rd quarter 2024 earnings call.

Akil Marsh: Good morning. Thank you for taking the time to join Clearway Energy, Inc.'s Q3 call. With me this morning are Craig Cornelius, the company's President and CEO, and Sarah Rubenstein, the company's CFO. 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. In addition, we will refer to both GAAP and non-GAAP financial measures. For more information regarding our non-GAAP financial measures and reconciliations to the most directly comparable GAAP measures, please refer to today's 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.

Akil Marsh: Actual results may differ materially. Please review the safe harbor in today's presentation as well as the risk factors in our SEC filings. In addition, we will refer to both GAAP and non-GAAP financial measures. For more information regarding our non-GAAP financial measures and reconciliations to the most directly comparable GAAP measures, please refer to today's presentation.

Actual results may differ materially.

Please review the Safe Harbor in today's presentation as well as the risk factors in our SEC filings.

In addition, we will refer to both GAAP and non-GAAP financial measures for more information regarding our non-GAAP financial measures and a reconciliation to the most directly comparable GAAP measures. Please refer to today's presentation in.

Akil Marsh: In particular, please note that we will refer to both offered and committed transactions in today's oral presentation and also may discuss such transactions during the question-and-answer portion of today's conference. Please refer to the safe harbor in today's presentation for a description of the categories of potential transactions and related risk, contingencies, and uncertainties. With that, I'll hand it over to Craig.

In particular, please note that we will refer to both offer and committed transactions in today's oral presentation and also may discuss such transactions. During the question and answer portion of today's conference.

Please refer to the safe Harbor in today's presentation for a description of the categories of potential transactions and related risks contingencies and uncertainties.

Speaker Change: That I will hand, it over to Craig.

Craig Cornelius: Thanks, Akil. Turning to slide 4. Today, we're pleased to report that we've completed another solid quarter of execution, that we are on track to meet or exceed our key 2024 financial objectives, and that we have a strong outlook for Clearway's future. In addition to reporting on our strong performance this year, in today's call, we will provide you with guidance for our key financial expectations for 2025, we'll articulate longer-term goals for 2026 and 2027, and we'll outline the capital allocation framework we intend to employ as we go forward. Our financial results for the quarter demonstrated another quarter of strong performance in our diversified fleet, bringing us to $385 million of CAFD in the year to date and putting us in a great position to meet or exceed our 2024 guidance.

Craig: Thanks, Gil turning to slide four.

Craig: Today, we're pleased to report that we've completed another solid quarter of execution that we are on track to meet or exceed our key 2024, our financial objectives, and then we have a strong outlook for clear rates future.

Craig: In addition to reporting on our strong performance this year.

On today's call, we will provide you with guidance for our key financial expectations for 2025.

Craig: Well articulated longer term goals for 2026 and 2027.

Craig: And we'll outline the capital allocation framework, we intend to employ as we go forward.

Craig Cornelius: Our financial results for the quarter demonstrated another quarter of strong performance in our diversified fleet, bringing us to $385 million of CAFD in the year to date and putting us in a great position to meet or exceed our 2024 guidance.

Our financial results for the quarter demonstrated another quarter of strong performance in our diversified fleet, bringing.

Craig: Bringing us to $385 million of Kathy and the year to date and putting us in a great position to meet or exceed our 2020 for guidance.

Craig Cornelius: We are especially proud of the great work our team has done to run safely and improve the operations of our fleet over the last three quarters. Ever vigilant, we are pleased to say that we achieved our best-ever safety key performance indicators in the first three quarters of the year and that we have also driven meaningful improvements in plant availability and conversion efficiency in comparison to the prior year. In conjunction with this strong quarter of performance, we've also announced a fourth-quarter dividend in line with our commitment for 7% DPS growth in 2024. Looking ahead, we're pleased to report that we've continued to advance the growth of our fleet, concluding an investment commitment for the Pine Forest Solar and Storage project and having received an offer which is now under evaluation to invest in phase one of the Honeycomb Storage projects.

Craig: We are especially proud of the great work our team has done to run safely and improve the operations of our fleet over the last three quarters ever.

Craig: Ever vigilant, we're pleased to say that we achieved our best ever safety key performance indicators in the first three quarters of the year and that we have also driven meaningful improvement in plant availability and conversion efficiency in comparison to the prior year.

Craig Cornelius: In conjunction with this strong quarter of performance, we've also announced a fourth-quarter dividend in line with our commitment for 7% DPS growth in 2024. Looking ahead, we're pleased to report that we've continued to advance the growth of our fleet, concluding an investment commitment for the Pine Forest Solar and Storage project and having received an offer which is now under evaluation to invest in phase one of the Honeycomb Storage projects.

Craig: In conjunction with this strong quarter of performance, we've also announced a fourth quarter dividend in line with our commitment for 7% EPS growth in 2024.

Craig: Looking ahead, we are pleased to report that we've continued to advance the growth of our fleet, concluding an investment commitment for the pine forests solar and storage project and having received an offer which is now under evaluation to invest in phase one of the honeycomb storage projects.

Craig Cornelius: As we advance these investment prospects and look ahead to further opportunities to come, we've continued to demonstrate our ability to methodically assemble accretive building blocks for our growth over time. Today, we are establishing our financial guidance for 2025. We're establishing CAFD guidance for 2025 at a midpoint of $420 million and establishing our dividend target for the year at $1.76 per share, in line with our previously articulated commitment for 2025 DPS. We are also reaffirming our intention to target dividend per share growth in 2026 at 6.5%, fulfilling our prior commitments.

Craig: As we advance these investment prospects and look ahead to further opportunities to come we've continued to demonstrate our ability to methodically assemble accretive building blocks for our growth over time.

Craig: Today, we are establishing our financial guidance for 2025.

Craig: We're establishing kept the guidance for 2025, and a midpoint of $420 million and establishing our dividend target for the year at $1 76 per share in line with our previously articulated commitment for 2025 bps.

Craig: We are also reaffirming our intention to target dividend per share growth in 2026 at six 5% fulfilling our prior commitments.

Craig Cornelius: Though our guidance for fiscal year 2026 would be issued at this time next year, we look forward to delivering that future DPS growth in a prudent capital structure, supported by the full-year CAFD contribution from committed growth investments that will be funded over 2025, and the progressive increase in revenues that should be delivered by our fleet. Finally, we are setting a next set of goals and updating our capital allocation framework for the future. Looking ahead to 2027, we will be targeting CAFD per share of $2.40 to $2.60, a range which represents a solid growth trajectory extension of approximately 7.5% to 12%, compounded annual growth from the midpoint of our 2025 guidance, reflecting the strengthening trajectory of our core asset base and our accretive growth investment prospects.

Craig: So our guidance for fiscal year 2026 would be issued at this time next year, we look forward to delivering that future dps growth in a prudent capital structure.

Craig: <unk> by the full year Kathy contribution from committed growth investments that will be funded over 2025, and the progressive increase in revenues that should be delivered by our fleet.

Craig Cornelius: Finally, we are setting a next set of goals and updating our capital allocation framework for the future. Looking ahead to 2027, we will be targeting CAFD per share of $2.40 to $2.60, a range which represents a solid growth trajectory extension of approximately 7.5% to 12%, compounded annual growth from the midpoint of our 2025 guidance, reflecting the strengthening trajectory of our core asset base and our accretive growth investment prospects.

Craig: Finally, we are setting our next set of goals and updating our capital allocation framework for the future.

Craig: Looking ahead to 2027, we will be targeting the <unk> per share of $2 40 to $2 60.

Craig: A range, which represents a solid growth trajectory extension of approximately seven 5% to 12%.

Craig: Compounded annual growth from the midpoint of our 2025 guidance, reflecting the strengthening trajectory of our core asset base and our accretive growth investment prospects.

Craig Cornelius: From this position of strength, we will aim to fund more of our growth from retained cash flow, targeting a payout ratio in 2027 within 70% to 80%, while also growing our dividend at a competitive pace with a targeted dividend per share growth rate in the bottom half of our historical 5% to 8% range in 2027. In concert with setting these goals, we're also refreshing our capital allocation framework to one that we believe will provide investors with enhanced visibility into long-term predictable CAFD per share growth.

Craig: From this position of strength, we will aim to fund more of our growth from retained cash flow targeting a payout ratio in 2027 within 70% to 80% while also growing our dividend at a competitive pace with a targeted dividend per share growth rate in the bottom half of our historical 5% to 8% range in 2020.

Craig: In concert with setting these goals. We're also refreshing our capital allocation framework to one that we believe will provide investors with enhanced visibility into long term predictable capture your per share growth.

Craig Cornelius: Beyond our strong CAFD per share growth roadmap into 2027, we will aim to achieve a long-term goal of 5% to 8%+ in CAFD per share growth in the long term, and importantly, we'll aim to effectuate that growth with a greater reliance on our own cash flow generation, increasing the fraction of our internal cash flow we reinvest in growth over time, deploying capital in a way that is accretive, and raising capital in a way that is prudent and predictable. I'll discuss this refreshed framework in detail later in the presentation. In summary, Clearway continues to execute well, and we are excited to continue to deliver long-term accretive growth to you, our valued stakeholders. Turning to slide 5.

Craig: Beyond our strong cap D per share growth roadmap into 2027, we aim to achieve our long term goal of 5% to 8% plus and cap D per share growth in low long term and importantly will aim to effectuate that growth with a greater reliance on our own cash flow generation.

Craig: Increasing the fraction of our internal cash flow, we reinvest in growth over time deploying capital in a way that is accretive and raising capital in a way that is prudent and predictable.

Craig Cornelius: I'll discuss this refreshed framework in detail later in the presentation. In summary, Clearway continues to execute well, and we are excited to continue to deliver long-term accretive growth to you, our valued stakeholders. Turning to slide 5.

Craig: I'll discuss this refreshed framework in detail later in the presentation.

Craig: In summary, clearway continues to execute well and we are excited to continue to deliver long term accretive growth to you our valued stakeholders.

Craig: Turning to slide five.

Craig Cornelius: During the last quarter, we made solid steps forward on value accretive growth, as is evident by the completion of our investment commitment to Pine Forest on attractive terms and received a formal offer for Honeycomb Phase 1, which is now under review. As a refresher, the Pine Forest Solar Plus Storage complex will be a complementary addition to our fleet in the fast-growing power market. Its solar capacity has been fully contracted for an average of approximately 20 years at strong pricing and settlement terms, the majority contracted with a leading information technology company. Its batteries will complement our existing fleet of assets in ERCOT, and together, these will be beneficial additions to our fleet. We aim to fund the investment by the end of 2025. We're also pleased to announce that CWEN received an offer for Phase 1 of the Honeycomb Battery Hybridization program.

Craig: During the last quarter, we made solid steps forward on value accretive growth as is evidenced by the completion of our investment commitment to pine forest on attractive terms and received a formal offer for honeycomb phase one which is now under review.

Craig: As a refresher the pine forest solar plus storage complex will be a complementary addition to our fleet in the fast growing our power market.

Craig Cornelius: Its solar capacity has been fully contracted for an average of approximately 20 years at strong pricing and settlement terms, the majority contracted with a leading information technology company. Its batteries will complement our existing fleet of assets in ERCOT, and together, these will be beneficial additions to our fleet. We aim to fund the investment by the end of 2025. We're also pleased to announce that CWEN received an offer for Phase 1 of the Honeycomb Battery Hybridization program.

Craig: If solar capacity has been fully contracted for an average of approximately 20 years at strong pricing in settlement terms. The majority contracted with a leading information technology company.

Craig: It's batteries will complement our existing fleet of assets in ERCOT and together these will be beneficial additions to our fleet. We aim to fund the investment by the end of 2025.

Craig: We're also pleased to announce that <unk> received an offer for phase one of the Huntington battery hybridization program.

Craig Cornelius: As you'll recall, Clearway Group is developing and building a family of contracted battery assets adjacent to CWEN's existing fleet of solar projects in Utah. Subject to CWEN's independent director approval, CWEN has the opportunity to invest approximately $85 million in corporate capital at an approximately 10% CAFD yield into the projects and to fund this investment in 2026. Sarah will discuss the company's liquidity position more in her section, but both Pine Forest and Honeycomb are expected to be funded with existing sources of existing liquidity. Turning to slide 6. Along with the improvements we've made to our fleet this year, growth investments like these have allowed us to build an excellent foundation for achieving the goals we are now setting for 2027.

Craig: As Youll recall Clearway group is developing and building a family of contracted battery assets adjacent to <unk> existing fleet of solar projects in Utah.

Craig: Subject to see wins independent director approval. So you won't have the opportunity to invest approximately $85 million in corporate capital at an approximately 10% cap to yield into the projects and to fund this investment in 2026.

Craig Cornelius: Sarah will discuss the company's liquidity position more in her section, but both Pine Forest and Honeycomb are expected to be funded with existing sources of existing liquidity. Turning to slide 6. Along with the improvements we've made to our fleet this year, growth investments like these have allowed us to build an excellent foundation for achieving the goals we are now setting for 2027.

Craig: Sarah will discuss the company's liquidity position more in her section, but both pine forest and honeycomb are expected to be funded with existing sources of existing liquidity.

Craig: Turning to slide six.

Craig: Along with the improvements we've made to our fleet. This year growth investments like these have allowed us to build an excellent foundation for achieving the goals. We are now setting for 2020.

Craig Cornelius: Starting from our previously disclosed pro forma CAFD per share of $2.15 and then taking into account the commitment to Pine Forest and updated levelized assumptions for resource adequacy capacity revenues in our conventional fleet, our existing asset-based and committed investments set us up to target at least $2.40 per share in CAFD in 2027, constituting the bottom end of the range we're targeting for CAFD per share in the year. First, by 2027, Pine Forest will add to the other previously committed investments that underpinned our prior pro forma CAFD per share expectations. Beyond that contribution, our fleet improvement program, the results of which are evident in our strengthened results in 2024 year-to-date, adds further to our 2027 outlook. Finally, our outlook for RA capacity revenues has also strengthened as we have executed on our power marketing program this year.

Sarah: Starting from our previously disclosed pro forma cafe per share of $2 15.

Sarah: And then taking into account the commitment to pine forest and updated level lies the assumptions for resource adequacy capacity revenues in our conventional fleet.

Sarah: Our existing asset base and committed investments set us up to target at least $2 40 per share and cap D. In 2027, constituting the bottom end of the range, we're targeting for <unk> per share in the year.

Craig Cornelius: First, by 2027, Pine Forest will add to the other previously committed investments that underpinned our prior pro forma CAFD per share expectations. Beyond that contribution, our fleet improvement program, the results of which are evident in our strengthened results in 2024 year-to-date, adds further to our 2027 outlook. Finally, our outlook for RA capacity revenues has also strengthened as we have executed on our power marketing program this year.

Sarah: First by 2027 Pine Forest will add to the other previously committed investments that underpinned our prior pro forma <unk> per share expectation.

Sarah: Beyond that contribution our fleet improvement program the results of which are evident in our strengthened results in 2024 year to date, adding further to our 2027 outlook.

Sarah: Finally, our outlook for RNA capacity revenues has also strengthened as we have executed on our power marketing program this year with.

Craig Cornelius: With the contracted position we've already established for 2027, combined with RA pricing trends we're observing in current customer engagements, we are confident that the RA pricing assumption embedded within our 2027 target range is achievable relative to where we are executing today. Indeed, that strength now lets us look to build up from the bottom end of the range at $2.40 in CAFD per share to higher levels within an accretive capital allocation framework, which we'll outline later in our call. With that, I'll turn it over to Sarah to provide a summary of our key financial results for the quarter. Over to you, Sarah.

Sarah: With the contracted position we've already established for 2027 combined with <unk> pricing trends, we're observing in current customer engagements. We are confident that the raw pricing assumption embedded within our 2027 target range is achievable relative to where we are executing today.

Craig Cornelius: Indeed, that strength now lets us look to build up from the bottom end of the range at $2.40 in CAFD per share to higher levels within an accretive capital allocation framework, which we'll outline later in our call. With that, I'll turn it over to Sarah to provide a summary of our key financial results for the quarter. Over to you, Sarah.

Sarah: Indeed that strength now, let us look to build up on the bottom end of the range at $2 40 per share to higher levels within an accretive capital allocation framework, which will outline later in our call.

Sarah: With that I'll turn it over to Sarah to provide a summary of our key financial results for the quarter over to you Sarah.

Sarah Rubenstein: Thanks, Craig. On slide 8, we provide an overview of our financial results, which includes Q3 adjusted EBITDA of $354 million and CAFD of $146 million. The Q3 results reflect renewable production in line with overall fleet estimates, as well as solid conventional availability and expected results from growth investments. Based on our year-to-date results with adjusted EBITDA of $918 million and CAFD of $385 million, we are reaffirming our full-year 2024 CAFD guidance of $395 million. The Q4 represents a smaller relative contribution to CAFD based on seasonality of cash flows, and assuming P50 median renewable energy production for the Q4, the company is well positioned to meet or exceed its 2024 CAFD guidance. Turning to slide 9, the company is initiating 2025 CAFD guidance with an expected range of $400 to 440 million and a midpoint of $420 million.

Sarah: Thanks, Craig.

Sarah: Slide eight we provide an overview of our financial results, which includes third quarter, adjusted EBITDA of $354 million and Kathy at $146 million.

Sarah: Third quarter results reflects renewable production in line with overall fleet estimates as well as solid conventional availability and expected results from growth investments.

Sarah: First on our year to date results with adjusted EBITDA of $918 million and Kathy at $385 million, we are reaffirming our full year 2020 for Kathy guidance at $395 million.

Sarah Rubenstein: The Q4 represents a smaller relative contribution to CAFD based on seasonality of cash flows, and assuming P50 median renewable energy production for the Q4, the company is well positioned to meet or exceed its 2024 CAFD guidance. Turning to slide 9, the company is initiating 2025 CAFD guidance with an expected range of $400 to 440 million and a midpoint of $420 million.

Sarah: The fourth quarter represents a smaller relative contribution to cash D. Based on seasonality of cash flows and assuming peace <unk> median renewable energy production for the fourth quarter. The company is well positioned to meet or exceed its 2020 forecast the guidance.

Sarah: Turning to slide nine the company is initiating 2025, Kathy guidance with an expected range of $400 million to $440 million and the midpoint of $420 million move.

Sarah Rubenstein: Moving forward from our 2024 CAFD guidance of $395 million, our 2025 CAFD guidance range reflects the recent execution of the Capistrano refinancing, which increases principal and interest payments by approximately $10 million. The 2025 CAFD guidance range also reflects the completion of fleet improvement projects that were previously disclosed, impacting our 2024 guidance, and also reflects the full impact of CAFD contributions from previously funded investments that are now contributing fully to CAFD. We elected to establish a range for CAFD guidance that reflects P50 renewable production expectations at the midpoint, with the upper and lower ends of the range reflecting variability and potential outcomes for resource availability and energy margin pricing. In addition, the completion of committed growth investments on the currently forecasted schedules are reflected within the guidance range.

Sarah: Moving forward from our 2020 forecast the guidance of $395 million or 2025, Kathy guidance range reflects the recent execution of the cappuccino refinancing, which increases principal and interest payments by approximately $10 million.

Sarah: 125, Kathy guidance range also reflects the completion of fleet improvement projects that were previously disclosed impacting our 2020 for guidance and also reflects the full impact of Kathy contributions from previously funded investments that are now contributing fully to Kathy.

Sarah Rubenstein: We elected to establish a range for CAFD guidance that reflects P50 renewable production expectations at the midpoint, with the upper and lower ends of the range reflecting variability and potential outcomes for resource availability and energy margin pricing. In addition, the completion of committed growth investments on the currently forecasted schedules are reflected within the guidance range.

We elected to establish a range for Kathy guidance that reflects P 50, renewable production expectations at the midpoint.

The upper and lower end of the range, reflecting variability in potential outcomes for resource availability and NRG margin pricing.

Sarah: In addition, the completion of committed growth investments on the currently forecasted schedules are reflected within the guidance range.

Sarah Rubenstein: As Craig previously discussed, we expect to fund investments in the Pine Forest and Honeycomb projects in the second half of 2025 and 2026, respectively. To fund those offers as well as to fund future growth investments, we will employ our prudent capital allocation framework, which we outline in further detail on slide 10. We expect to be able to utilize retained CAFD as a primary source of capital, targeting retained CAFD of approximately $220 million accumulated over 2025 through 2027 based on the low end of our CAFD per share growth outlook. Beyond 2027, we will target maintaining a lower payout ratio of 70% to 80% in order to retain incremental CAFD while also prioritizing our other capital allocation targets.

Speaker Change: As Greg previously discussed we expect to fund investments in the pipe for Us and honeycomb project in the second half of 2025 and 2026, respectively.

Speaker Change: To fund those offers as well as to fund future growth investments, we will employ our prudent capital allocation framework, which we outline in further detail on slide 10.

Sarah Rubenstein: We expect to be able to utilize retained CAFD as a primary source of capital, targeting retained CAFD of approximately $220 million accumulated over 2025 through 2027 based on the low end of our CAFD per share growth outlook. Beyond 2027, we will target maintaining a lower payout ratio of 70% to 80% in order to retain incremental CAFD while also prioritizing our other capital allocation targets.

Speaker Change: We expect to be able to utilize retained Kathy as a primary source of capital targeting retained Kathy of approximately 220 million accumulated over 2025 through 2027 based on the low end of our cafe per share growth outlook.

Speaker Change: In 2027, and we will target maintaining a lower payout ratio of 70% to 80% in order to retain incremental Kathy while also prioritizing our other capital allocation target.

Sarah Rubenstein: We anticipate having excess corporate debt capacity based on our credit metrics calculated using the low end of our target CAFD per share numbers for 2027 that would potentially allow for excess debt capacity of over $300 million, which we could utilize to fund growth, including the approximately $300 million of growth capital required for dropdowns or M&A to enable sufficient CAFD growth to meet our 2027 CAFD per share target. Our revolving credit facility, which is largely undrawn, remains a key interim source of liquidity for the company. While we won't require external equity to fund the current identified opportunities to drive growth, our long-term vision anticipates the modest periodic issuance of equity to fund growth when growth investments and the equity issuance required to capitalize them are anticipated to be accretive and create long-term value for CWEN.

Speaker Change: We anticipate having excess corporate debt capacity based on our credit metrics calculated using the low end of our target cash per share numbers for 2027 that would potentially allow for excess debt capacity of over 300 million, which we could utilize to fund growth, including the approximately 300 million.

Speaker Change: Of growth capital required for Dropdowns or M&A to enable sufficient Kathy growth to meet our 2027 Kathy per share target.

Sarah Rubenstein: Our revolving credit facility, which is largely undrawn, remains a key interim source of liquidity for the company. While we won't require external equity to fund the current identified opportunities to drive growth, our long-term vision anticipates the modest periodic issuance of equity to fund growth when growth investments and the equity issuance required to capitalize them are anticipated to be accretive and create long-term value for CWEN.

Speaker Change: Our revolving credit facility, which is largely undrawn remains a key interim source of liquidity for the company.

Speaker Change: We won't require external equity to fund the current identified opportunities to drive growth.

Speaker Change: Long term vision anticipates, the modest periodic issuance of equity to fund your growth when growth investments and the equity issuance required to capitalize them are anticipated to be accretive and create long term value for C ran.

Sarah Rubenstein: To restate our long-term funding framework, we will look to maximize CAFD per share, net of the cost of financing, while also assuring that an investment meets its long-term metrics aligned with its underwriting criteria. Our plan to source corporate growth capital is first from retained CAFD, second with excess corporate debt capacity in line with our target BB rating, and third, we may look to issue external equity to fund investments to the extent such investment would be sufficiently accretive to shareholders. We also recognize that we have $2.1 billion of corporate bonds maturing in 2028, 2031, and 2032 that we will need to refinance within the timeframe for our longer-term goals. We will maintain a prudent approach to these refinancing activities and will reflect any meaningful impacts to our future year-specific CAFD per share targets as we move into the future.

Speaker Change: To restate, our long term funding framework, we will look to maximize <unk> per share net of the cost of financing.

Speaker Change: So assuring that an investment meet its long term metrics aligned with its underwriting criteria are.

Speaker Change: Our plan to source corporate gross capital is first from retained Kathy second with excess corporate debt capacity in line with our target that will be rating and third we may look to issue external equity to fund investments to be.

Speaker Change: Such investment will be sufficiently accretive to shareholders.

Sarah Rubenstein: We also recognize that we have $2.1 billion of corporate bonds maturing in 2028, 2031, and 2032 that we will need to refinance within the timeframe for our longer-term goals. We will maintain a prudent approach to these refinancing activities and will reflect any meaningful impacts to our future year-specific CAFD per share targets as we move into the future.

Speaker Change: Also recognize that we had $2 1 billion of corporate bonds maturing in 2028 2031 in 2032 that we will need to refinance within the timeframe for our longer term goals.

Speaker Change: We will maintain a prudent approach to these refinancing activities and we will reflect any meaningful impact to our future year specific cafe per share targets as we move into the future.

Sarah Rubenstein: Now I will turn it back to Craig to provide further detail about the company's plans for longer-term growth and capital allocation.

Speaker Change: Now I will turn it back to Craig to provide further detail about the company's plans for longer term growth and capital allocation.

Craig Cornelius: Thanks, Sarah. Given the robust asset base and capital structure we have prudently built for CWEN over time and the capabilities we have at our disposal within the broader Clearway Enterprise, our organization is confident and clear-eyed as we now set and pursue ambitious but meetable goals for the future, starting first with our 2027 target of $2.40 to $2.60 in CAFD per share. Let's talk now about how we'll get there. From the 2025 midpoint of guidance, as described previously, our already committed growth investments, fleet improvements, and enhanced capacity revenues put Clearway on a path to achieve the bottom end of our 2027 target range. Additionally, Clearway Group's abundant pipeline and leading execution capabilities, matched with the financial flexibility CWEN has to invest based on Sarah's description, provides another leg for further accretive growth for CWEN.

Craig: Thanks Sarah.

Craig: Given the robust asset base and capital structure, we have prudently built pursuant overtime and the capabilities, we have at our disposal within the broader clear way enterprise.

Craig: Our organization is confident and clear eyed as we now set and pursue ambitious but <unk> goals for the future starting first with our 2027 target of $2 40 to $2 60 <unk> per share.

Craig: Let's talk now about how we will get there.

Craig Cornelius: From the 2025 midpoint of guidance, as described previously, our already committed growth investments, fleet improvements, and enhanced capacity revenues put Clearway on a path to achieve the bottom end of our 2027 target range. Additionally, Clearway Group's abundant pipeline and leading execution capabilities, matched with the financial flexibility CWEN has to invest based on Sarah's description, provides another leg for further accretive growth for CWEN.

Craig: From the 2025 midpoint of guidance as described previously are already committed growth investments fleet improvements and enhanced capacity revenues, but clearly on a path to achieve the bottom end of our 2027 target range. Additionally.

Additionally, clearway group's abundant pipeline and leading execution capabilities matched with the financial flexibility <unk> has to invest based on Sarah's description provides another leg for further accretive growth for <unk>.

Craig Cornelius: Putting that to numbers, Clearway Group's vintage of projects targeting COD in 2026 constitute an investment opportunity of approximately $300 million in potential corporate capital, a sum which could be potentially funded by CWEN over time via incremental corporate debt capacity and retained earnings alone. This, combined with further portfolio improvements, could enable us to reach the upper end of our targeted 2027 CAFD per share range. So while there is much work ahead for these projects to advance, and as always, CWEN will need to evaluate any dropdown projects offered or third-party M&A opportunities considered for alignment with its investment requirements, we see how we can get from here to the high end of our 2027 CAFD per share range if we execute on these building blocks and continue to operate our portfolio with excellence in typical resource and market conditions. Turning to slide 13.

Craig: Putting that into numbers clearway group's vintage of projects targeting <unk> in 2026 constitute an investment opportunity of approximately $300 million in potential corporate capital.

Craig: Assam, which could be potentially funded by <unk> and over time by incremental corporate debt capacity and retained earnings.

Craig: This combined with further portfolio improvements could enable us to reach the upper end of our targeted 2027 cap per share range.

Craig Cornelius: So while there is much work ahead for these projects to advance, and as always, CWEN will need to evaluate any dropdown projects offered or third-party M&A opportunities considered for alignment with its investment requirements, we see how we can get from here to the high end of our 2027 CAFD per share range if we execute on these building blocks and continue to operate our portfolio with excellence in typical resource and market conditions. Turning to slide 13.

Craig: So while there is much work ahead for these projects to advance and as always see when we'll need to evaluate any dropdown projects offered or third party M&A opportunities.

Craig: <unk> for alignment with its investment requirements, we see how we can get from here to the high end of our 2027 cap per share range. If we execute on these building blocks and continue to operate our portfolio with excellence in typical resource and market conditions.

Craig: Turning to slide 13.

Craig Cornelius: To reinforce our confidence, we'll take a moment to highlight the ongoing progress in Clearway Group's late-stage pipeline as CWEN sponsor advances projects towards potential for future offers and dropdowns. First, Clearway Group has made investments that secure qualification for tax credits for projects across multiple COD vintages and technologies through 2028, and is establishing plans for safe harbor investments for the 2029 vintage. Furthermore, Clearway Group has continued to accumulate success in power marketing with a diverse customer set across power pools from the west to east coast, notably including engagement on 5GW of front-of-the-meter and co-located data center opportunities across multiple markets. The overall landscape of Clearway Group's origination progress attests to the locational value of its development assets and the attractiveness of Clearway's track record, and is realizing PPA pricing that's trending up with PPA terms that are trending favorable.

Craig: To reinforce our confidence will take a moment to highlight the ongoing progress and unclear Rea group's late stage pipeline as <unk> sponsor advances projects towards potential for future offers and dropped out.

Craig: First Clearway group has made investments that take care of qualification for tax credits for projects across multiple vintages and technologies through 2028 and is establishing plans for safe Harbor investments for the 2029 vintage.

Craig Cornelius: Furthermore, Clearway Group has continued to accumulate success in power marketing with a diverse customer set across power pools from the west to east coast, notably including engagement on 5GW of front-of-the-meter and co-located data center opportunities across multiple markets. The overall landscape of Clearway Group's origination progress attests to the locational value of its development assets and the attractiveness of Clearway's track record, and is realizing PPA pricing that's trending up with PPA terms that are trending favorable.

Craig: Furthermore, Clearway group has continued to accumulate success and the power marketing with a diverse customer set across power pools from the west to east coast, notably, including engagement on five Gigawatts of front of the meter and co located data center opportunities across multiple markets.

Craig: The overall landscape of Clearway group's array origination progress attests to the locational value of its development assets and the attractiveness of Clearway is track record and is realizing PPA pricing thats trending up with PPA terms that are trending favorable.

Craig Cornelius: Honing in more closely on the opportunity set of the 2026 and 2027 COD vintages, these projects could allow CWEN to invest at least $475 million of corporate capital beyond what CWEN has already committed to or been offered. Collectively, these potential corporate capital investments sum up to a total greater than what would be needed to achieve the upper end of the 2027 CAFD per share target of $2.60 that we have set today. Given the sizable advanced pipeline at Clearway Group, Clearway Energy, Inc. is in the enviable position of having more than enough capital deployment opportunities to meet its growth investment objectives through 2027. As it has demonstrated over many years, Clearway Group will continue to be thoughtful about the structuring and pace of growth opportunities offered to CWEN from this opportunity set, mindful of pacing and return requirements needed for investments to be feasible and accretive.

Craig: Owning and more closely on the opportunity set of the 2026% in 2027 Seo deepen to Joe's these projects could allow us to invest at least $475 million of corporate capital beyond what <unk> has already committed to or have been offered.

Craig: Collectively these potential corporate capital investments some up to a total greater than what would be needed to achieve the upper end of the 2027 cap your per share target of $2 60 that we have set today.

Craig Cornelius: Given the sizable advanced pipeline at Clearway Group, Clearway Energy, Inc. is in the enviable position of having more than enough capital deployment opportunities to meet its growth investment objectives through 2027. As it has demonstrated over many years, Clearway Group will continue to be thoughtful about the structuring and pace of growth opportunities offered to CWEN from this opportunity set, mindful of pacing and return requirements needed for investments to be feasible and accretive.

Craig: Given the sizable advanced pipeline that Clearway group Clearway Energy, Inc. Is in the enviable position of having more than enough capital deployment opportunities to meet its growth investment objectives through 2027.

Craig: As it has demonstrated over many years Clearway group will continue to be thoughtful about the structuring and pace of growth opportunities offered to <unk> from this opportunity set.

Craig: Mindful of pacing and return requirements needed for investments to be feasible and accretive.

Craig Cornelius: Furthermore, we continue to selectively engage in asset-centered M&A opportunities, which are right-sized and could be complementary to our fleet, and see potential for pursuing targeted, value-accretive growth through those investments as well. Across all these capital allocation opportunities, the CWEN board and its independent directors will remain focused on selecting and negotiating investments so that they are accretive and consistent with its underwriting requirements. Turning to slide 14. When taking into account the CAFD per share target we've set for 2027 and what we see in front of us for long-term growth opportunities, we believe we've arrived at a sensible and value-accretive framework that allows us to deliver predictable growth, improve visibility into that growth, and that also pursues a lowered reliance on external equity issuance to achieve our long-term objectives.

Furthermore, we continue to selectively engage in asset centered M&A opportunities, which are right sized and could be complementary to our fleet and see potential for pursuing targeted value accretive growth through those investments as well.

Craig: Across all of these capital allocation opportunities the <unk> board and its independent directors will remain focused on selecting and negotiating investments so that they are accretive and consistent with its underwriting requirements.

Craig Cornelius: Turning to slide 14. When taking into account the CAFD per share target we've set for 2027 and what we see in front of us for long-term growth opportunities, we believe we've arrived at a sensible and value-accretive framework that allows us to deliver predictable growth, improve visibility into that growth, and that also pursues a lowered reliance on external equity issuance to achieve our long-term objectives.

Craig: Turning to slide 14.

Craig: When taking into account the cap deeper share target, we've set for 2027 and what we see in front of us for long term growth opportunities. We believe we've arrived at a sensible and value accretive framework that allows us to deliver predictable growth.

Craig: Improved visibility into that growth and then also pursues a lowered reliance on external equity issuance to achieve our long term objectives.

Craig Cornelius: As previously mentioned, the growth we expect from our existing asset base through 2027 puts us in a position of strength to make sound decisions as we grow Clearway Energy, Inc. Post-2027, our business model will aim to achieve 5% to 8% plus growth in CAFD per share over time. Retained CAFD will provide an increasing source of growth capital as we will be targeting a 70% to 80% payout ratio with the aim to reach the low end of that range over time. As retained CAFD increases and the platform grows, we will aim to pursue investments that are accretive on a CAFD per share basis and that meet our underwriting criteria, allowing CWEN to deploy retained CAFD towards further extending and compounding its CAFD per share growth outlook.

Craig: As previously mentioned the growth we expect from our existing asset base through 2027 puts us in a position of strength to make sound decisions as we grow Clearway Energy Inc.

Craig: Post 2000, Twenty's evidenced our business model will aim to achieve 5% to 8% plus growth in <unk> per share over time.

Craig Cornelius: Retained CAFD will provide an increasing source of growth capital as we will be targeting a 70% to 80% payout ratio with the aim to reach the low end of that range over time. As retained CAFD increases and the platform grows, we will aim to pursue investments that are accretive on a CAFD per share basis and that meet our underwriting criteria, allowing CWEN to deploy retained CAFD towards further extending and compounding its CAFD per share growth outlook.

Retained Cathy will provide an increasing source of growth capital as we will be targeting a 70% to 80% payout ratio with the aim to reach the low end of that range over time.

Craig: As retained to cap the increases and the platform grows we will aim to pursue investments that are accretive on a cafe per share basis and that meet our underwriting criteria, allowing <unk> to deploy a retained kathy towards further extending and compounding it's cafe per share growth outlook.

Craig Cornelius: After retained CAFD, we will look to excess debt capacity in line with our target BB rating as a second source of funds. As Sarah noted, our forward-looking leverage metrics position us well with additional excess debt capacity. The last piece of our funding framework will be external equity issuance. While we don't need external equity to achieve the midpoint of our 2027 CAFD per share target, we do plan to eventually fund a portion of long-term routine growth by modest levels of equity issuance, but in a way that it is predictable, deliberate, disciplined, and focused on accretion. We will always be measured when evaluating the potential issuance of shares, and it will always be for investments that increase the amount of CAFD attributable to our investors' respective ownership on a per share basis.

Craig: After retained Kathy we will look to excess debt capacity in line with our target double B rating as a second source of funds and as Sarah noted our forward looking leverage metrics position us well with additional excess debt capacity.

Craig: The last piece of our funding framework will be external equity issuance, while we don't need external equity to achieve the midpoint of our 2027 cap per share target. We do plan to eventually fund a portion of long term routine growth by modest levels of equity issuance, but in a way that it is predictable delivery.

Craig: Liberate disciplined and focused on accretion we were.

Craig: We'll always be measured when evaluating the potential issuance of shares and there will always be for investments that increase the amount of cap the attributable to our investors respective ownership on a per share basis.

Craig Cornelius: Indeed, even to achieve the top end of our base long-term growth objectives, our goals would call only for modest equity issuances that could be executed by an ATM targeting issuance of a small percentage of our public float, and without any immediate need for such issuance today. We like that this allows us to take our time, be selective with our moments for adding cash to our balance sheet via equity issuance, and to be deliberate and communicative with you about when we have reached a point in our growth capital investment program that this will begin to be part of it. Lastly, we continue to feel very confident about the commitments we've made and the choices we are making now about dividend goals for the future.

Indeed, even to achieve the top end of our base long term growth objectives or goals would call only for modest equity issuances that can be executed by an ATM targeting issuance of a small percentage of our public float and without any immediate need for such issuance today.

Craig: We like that this allows us to take our time be.

Craig: Be selective with our moments for adding cash to our balance sheet by equity issuance and to be deliberate and communicative with you about when we have reached a point in our growth capital investment program.

This will begin to be part of it.

Craig: Lastly, we continue to feel very confident about the commitments, we've made and the choices, we are making now about dividend goals for the future.

Craig Cornelius: First, we're affirming that we aim to make good on the commitments that CWEN has already made for growth and dividends through 2026. For 2027, we are targeting DPS growth at the bottom half of the range of 5% to 8%, which numerically translates to 5% to 6.5%, with the level we ultimately target being a function of our payout ratio goal of 70% to 80% for 2027. Beyond 2027, we'll be aiming to continue to pay and compound dividends per share in a way that is competitive in the marketplace for publicly listed infrastructure capital. As we compound our dividend, we'll be planning to do so while prioritizing our financial resilience, giving our shareholders the opportunity to participate in that growth via attractive dividends that we grow at a pace that is set by our actual CAFD per share growth and our payout ratio goals.

Craig: First we're affirming that we aim to make good on the commitments that <unk> has already made for growth and dividends through 2026 for 2027, and we are targeting EPS growth at the bottom half of the range of 5% to 8%, which numerically translates to five to six 5% with the level we ultimately.

Craig: Target being a function of our payout ratio goal of 70% to 80% for 2027.

Craig: Beyond 2027, we'll be aiming to continue to pay and compounds dividends per share in a way that is competitive in the marketplace for publicly listed infrastructure capital.

Craig: As we come down to our dividend, we will be planning to do so while prioritizing our financial resilience, giving our shareholders the opportunity to participate in that growth by attractive dividends that we grow at a pace that is set by our actual cafe per share growth and our payout ratio goals.

Craig Cornelius: The track record we have demonstrated over time in fulfilling the dividend commitments we make is something we are proud of, and we will aim to continue. Given the strength of our asset base, the prudence we've applied to our capital structure, and the growth prospects we have in front of us, we feel good about our ability to do that while growing accretively over time. Turning to slide 15. To recap, Clearway is in an excellent position to meet our 2024 financial objectives and is well positioned to deliver on our previously communicated growth objectives through 2026. The 2027 CAFD per share target we've set provides for strong growth with a transparent path to deliver that growth via already committed investments, a demonstrated track record for fleet improvement and RA marketing, and advanced development stage opportunities at Clearway Group and the project M&A marketplace.

Craig: The track record we have demonstrated over time in fulfilling the dividend commitments. We make is something we are proud of and we will aim to continue.

Craig: Given the strength of our asset base, the prudence, we've applied to our capital structure and the growth prospects. We have in front of US we feel good about our ability to do that while growing accretively over time.

Craig Cornelius: Turning to slide 15. To recap, Clearway is in an excellent position to meet our 2024 financial objectives and is well positioned to deliver on our previously communicated growth objectives through 2026. The 2027 CAFD per share target we've set provides for strong growth with a transparent path to deliver that growth via already committed investments, a demonstrated track record for fleet improvement and RA marketing, and advanced development stage opportunities at Clearway Group and the project M&A marketplace.

Craig: Turning to slide 15.

Craig: To recap clearway is in an excellent position to meet our 2024, our financial objectives and is well positioned to deliver on our previously communicated growth objectives through 2026.

Craig: The 2027 cap to per share target. We've set provides for strong growth with a transparent path to deliver that growth.

Craig: Already committed investments a demonstrated track record for fleet improvement in R&D marketing and advanced development stage opportunities that Clearway group and the project M&A marketplace and.

Craig Cornelius: And lastly, we have defined a roadmap for growth and capital allocation beyond 2027 in a way that we believe establishes a sustainable and attractive investment proposition for the shareholders of CWEN. We will be a company that will be predictable in meeting its core financial goals, that will be enhancing that predictability via financial flexibility over time, that will be growing its core earnings in the form of CAFD at an attractive pace, and will be providing its shareholders the opportunity to continue to participate in that growth via a secure dividend. Together, we believe these pillars will position CWEN to deliver best-in-class risk-adjusted returns for our investors and look forward to delivering that result to our investors in the years to come.

Craig: And lastly, we have defined a roadmap for growth and capital allocation beyond 2027, and a way that we believe establishes a sustainable and attractive investment proposition for the shareholders of <unk>.

Craig: We will be a company that will be predictable and meeting its core financial goals that we will be enhancing that predictability of via financial flexibility over time.

Craig: That will be growing its core earnings in the form of Kathy at an attractive pace and we'll be providing its shareholders the opportunity to continue to participate in that growth.

Craig: Secure dividend.

Craig: Together, we believe these pillars will position <unk> to deliver best in class risk adjusted returns for our investors and look forward to delivering that results to our investors in the years to come.

Craig Cornelius: We have much work ahead to be sure, but I could not be more enthused about the work our colleagues at Clearway have done to put us on such strong footing. We look forward to doing that work together and to what it will mean for you, our valued investors. Operator, you may open the lines for questions.

Craig: We have much work ahead to be sure, but I could not be more enthused about the work our colleagues at clearway I have done to put us on such strong footing.

Craig: Look forward to doing that work together and to what it will mean for you our valued investors operator, you may open the lines for questions.

Operator: Thank you. Ladies and gentlemen, as a reminder to ask the question, please press star 1 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 1 again. We ask that you limit yourself to one question and one follow-up. Please stand by while we compile the Q&A roster. Our first question comes from the line of Noah Kaye with Oppenheimer & Company. Your line is open.

Speaker Change: Thank you.

Speaker Change: Ladies and gentlemen, as a reminder to ask a question. Please press star one on your telephone and wait for your name to be announced.

Speaker Change: To withdraw your question. Please press star one again.

Speaker Change: We ask that you limit yourself to one question and one follow up.

Speaker Change: Please standby, while we compile the Q&A roster.

Speaker Change: Our first question comes from the line of Noah Kaye with Oppenheimer <unk> Company. Your line is open.

Speaker Change: Yes.

Craig Cornelius: So you've already touched on this a fair bit around the roadmap and the refreshed capital allocation strategy, but you didn't note in the deck that you had received a fair amount of feedback from financial stakeholders and investors. I'd just love to talk a little bit more about the process that you went through to set this framework. I mean, clearly still continuing to grow the dividend, but retaining more capital to provide flexibility. Just talk a little bit about the process by which you reached this decision.

Noah Kaye: So you've already touched on this a fair bit around the roadmap and the refreshed capital allocation strategy, but you didn't note in the deck that you had received a fair amount of feedback from financial stakeholders and investors. I'd just love to talk a little bit more about the process that you went through to set this framework. I mean, clearly still continuing to grow the dividend, but retaining more capital to provide flexibility. Just talk a little bit about the process by which you reached this decision.

Noah Kaye: So you've already touched on this a fair bit.

Noah Kaye: The roadmap and the refreshed capital allocation strategy, but you Didnt note in the deck that.

Noah Kaye: You had received a fair amount of feedback from financial stakeholders.

Noah Kaye: And investors.

Noah Kaye: And I would just love to talk a little bit more about.

Noah Kaye: The process that you went through to set the framework I mean clear.

Noah Kaye: Clearly still continuing to grow the dividend.

Noah Kaye: But retaining more capital to provide flexibility just talk a little bit about the process by which you reached this decision.

Sarah Rubenstein: Yeah. So I think we started this process first at looking at what we expect our fleet to do in its own right. And I think our assessment, as we went through and evaluated the pathway we're on both for revenue enhancement and operating cash flow execution, built one layer of expectations that we thought we would be able to execute. And then, in addition to that, we evaluated the growth investment prospects that we had. And those things collectively gave us a sense for the fundamental earnings growth potential of the business. And then as we've engaged with our investors, we've looked to assess the way that they think about capital allocation and value in the business. And I think what we heard from them collectively is that they would like to see the company grow within its means.

Craig Cornelius: Yeah. So I think we started this process first at looking at what we expect our fleet to do in its own right. And I think our assessment, as we went through and evaluated the pathway we're on both for revenue enhancement and operating cash flow execution, built one layer of expectations that we thought we would be able to execute.

Noah Kaye: Yes.

Noah Kaye: So I think.

Noah Kaye: We started this process first.

Noah Kaye: At looking.

Noah Kaye: At what we expect our fleet to do.

Noah Kaye: In its own right.

Noah Kaye: And and I think our assessment as we went through.

Noah Kaye: And evaluated the pathway where on both the revenue enhancement and operating cash flow execution built one layer.

Noah Kaye: Expectations that we thought we would be able to execute on.

Craig Cornelius: And then, in addition to that, we evaluated the growth investment prospects that we had. And those things collectively gave us a sense for the fundamental earnings growth potential of the business. And then as we've engaged with our investors, we've looked to assess the way that they think about capital allocation and value in the business. And I think what we heard from them collectively is that they would like to see the company grow within its means.

Noah Kaye: And then in addition to that we evaluated the growth investment prospects that we have and those things collectively gave us a sense for.

Noah Kaye: The fundamental earnings growth potential of the business.

Noah Kaye: And then as we've engaged with our investors.

Noah Kaye: We have left to assess the way that they think about capital allocation and value.

Noah Kaye: In the business and I think what we heard from them collectively is that they would like to see the company grow within its means and.

Sarah Rubenstein: And I think in particular, when they think about growing within our means, the general thought process has been that people would like to see us be able to meet our growth prospects without a substantial reliance on the issuance of equity. We think we built a plan that really should deliver leading-edge returns both through fundamentally the growth of the earnings of our business itself, but also through our ability to compound that growth using the capital that we allocate from our own fleet. So I think we've tried to incorporate that expectation from our investors in the way that we've allocated capital in the plan. When it comes to dividend growth, I think we want to remain competitive amongst investors' selection of options for listed infrastructure while not overcommitting ourselves to the growth of the dividend that we have committed to the street.

Craig Cornelius: And I think in particular, when they think about growing within our means, the general thought process has been that people would like to see us be able to meet our growth prospects without a substantial reliance on the issuance of equity. We think we built a plan that really should deliver leading-edge returns both through fundamentally the growth of the earnings of our business itself, but also through our ability to compound that growth using the capital that we allocate from our own fleet.

Noah Kaye: I think in particular, when you think about growing within our means.

Noah Kaye: The general thought process has been that people would like.

Noah Kaye: Yeah.

Noah Kaye: Be able to meet our growth prospects without a substantial reliance on the issuance of that we think we built a plan.

Noah Kaye: It really.

Noah Kaye: To deliver leading edge returns.

Noah Kaye: But fundamentally the growth of the earnings.

Noah Kaye: Of our business itself, but also.

Through our ability to compound that growth using the capital that we allocate from our own so I think.

Craig Cornelius: So I think we've tried to incorporate that expectation from our investors in the way that we've allocated capital in the plan. When it comes to dividend growth, I think we want to remain competitive amongst investors' selection of options for listed infrastructure while not overcommitting ourselves to the growth of the dividend that we have committed to the street.

Noah Kaye: We've tried to incorporate that expectation for some of our investors and the way that we've allocated capital.

When it comes to dividend growth I think we want to remain competitive amongst investors.

Noah Kaye: Selection of options for our listed infrastructure.

Noah Kaye: While not over committing ourselves to the growth of the dividend that we have committed to the street.

Sarah Rubenstein: Again, I think we've done that as well. We feel really good about the plan that we built here. We know how to execute it. We think it's actually going to provide pretty compelling growth prospects for our investors, and it will still give them the chance to participate in that growth with a dividend that we know how to pay in a secure way.

Craig Cornelius: Again, I think we've done that as well. We feel really good about the plan that we built here. We know how to execute it. We think it's actually going to provide pretty compelling growth prospects for our investors, and it will still give them the chance to participate in that growth with a dividend that we know how to pay in a secure way.

Noah Kaye: And again I think we've done that as well so we feel really good about the plan that we built here.

We know how to execute it.

Speaker Change: So you're going to provide pretty compelling.

Speaker Change: Growth prospects for our investors and it will still give them the chance to participate in that growth with the dividend that we know how to pay in a secure way.

Speaker Change: Okay.

Craig Cornelius: Thank you, Craig. And then, talking a little bit about sources of capital, appreciate the commentary around capital that you might source both from the debt and equity markets. Curious to know how you think about potential for external capital, third-party capital, potentially in some sort of a minority investment type structure or a holding type structure as an alternative to some of the sources that you've detailed, just given we are seeing some of those structures out there in the market.

Noah Kaye: Thank you, Craig. And then, talking a little bit about sources of capital, appreciate the commentary around capital that you might source both from the debt and equity markets. Curious to know how you think about potential for external capital, third-party capital, potentially in some sort of a minority investment type structure or a holding type structure as an alternative to some of the sources that you've detailed, just given we are seeing some of those structures out there in the market.

Speaker Change: Thank you thank you Craig.

Speaker Change: And then talking a little bit about sources of capital I appreciate the commentary around.

Speaker Change: Capital that you might source, both from the debt and equity markets.

Speaker Change: I'm curious to know how you think about potential for <unk>.

Speaker Change: External capital third party capital.

Speaker Change: Potentially in some sort of a minority investment types.

Speaker Change: Type structure or.

Speaker Change: Our holding type structure.

As an alternative to some of the sources that you've detailed just given we are seeing.

Some of those structures out there in the market.

Speaker Change: No.

Sarah Rubenstein: We don't require that kind of a structure to be able to execute on our plan. When we look at the cost of capital for some of those types of structures, in relation to the cost of our corporate debt, it's not particularly compelling. As we noted, we don't have to issue equity to hit the midpoint of our plan. To be able to execute to the very top end of the CAFD per share range we've articulated, the amount of equity that we'd have to issue is a very modest amount out in the later years of 2026 and 2027. We're sort of talking about something like a percentage of the public float of one of our classes of shares. So it's not a tremendous amount of capital that we'd actually have to issue in the form of equity.

Craig Cornelius: We don't require that kind of a structure to be able to execute on our plan. When we look at the cost of capital for some of those types of structures, in relation to the cost of our corporate debt, it's not particularly compelling. As we noted, we don't have to issue equity to hit the midpoint of our plan.

Speaker Change: We don't require that kind of a structure to be able to execute on our plan and when.

Speaker Change: We look at the cost of.

Speaker Change: Capital.

Speaker Change: For some of those types of structures.

Speaker Change: In relation to the cost of our corporate debt, it's not particularly compelling.

Speaker Change: And as we noted we don't have to issue equity to hit the midpoint of our plan.

Craig Cornelius: To be able to execute to the very top end of the CAFD per share range we've articulated, the amount of equity that we'd have to issue is a very modest amount out in the later years of 2026 and 2027. We're sort of talking about something like a percentage of the public float of one of our classes of shares. So it's not a tremendous amount of capital that we'd actually have to issue in the form of equity.

Speaker Change: To be able to execute to the very top end of the cap. We procure range. We've articulated the amount of equity that we would have to issue is.

Speaker Change: A very modest amount out in the later years 2026 and 2027.

Speaker Change: We're sort of talking about something like.

Speaker Change: As a percentage of the.

Speaker Change: The public flow that one of our clients sure. So not a tremendous amount of capital that we would actually have to issue in the form of equity.

Sarah Rubenstein: So rather than load up on additional capital that sits sort of at the bottom of the capital structure and would dilute the fraction of CAFD per share that our current shareholders are entitled to receive, I think we want, as I started out with, to grow within our means, driven in particular by the cash flow that our fleet will be compounding over the next three years, and then in a prudent way make use of leverage capacity between 4 and 4.5 times and potentially trending down to the low end of that range. And we see how we can achieve our growth goals really principally with those sources of funding without needing to get into thinking about sources of capital that would be diluted, whether those are public in the form of public issuance or those types of structures either.

Craig Cornelius: So rather than load up on additional capital that sits sort of at the bottom of the capital structure and would dilute the fraction of CAFD per share that our current shareholders are entitled to receive, I think we want, as I started out with, to grow within our means, driven in particular by the cash flow that our fleet will be compounding over the next three years, and then in a prudent way make use of leverage capacity between 4 and 4.5 times and potentially trending down to the low end of that range.

Speaker Change: So rather than load up on additional.

Speaker Change: Capital that sits sort of at the bottom of the capital structure and would dilute the fraction of Kathy per share that are current shareholders are entitled to receive.

Speaker Change: We want as I started out with two.

Speaker Change: Okay, well within our means driven in particular by the cash flow that our fleet will be compounding over the next three years.

Speaker Change: And then.

Speaker Change: In a prudent way, making use of leverage capacity between four and four five times and potentially trending down to the low end of that range.

Craig Cornelius: And we see how we can achieve our growth goals really principally with those sources of funding without needing to get into thinking about sources of capital that would be diluted, whether those are public in the form of public issuance or those types of structures either.

Speaker Change: And we see how we can achieve our growth goals really principally with those sources of funding without needing to get into thinking about.

Speaker Change: Sources of capital that would be dilutive, whether those are public in the form of public issuance or those types of structures either so.

Sarah Rubenstein: So I think as we move forward over time, we'll want to be thoughtful about the range of growth prospects we have and how we can continue to drive accretion for our investors. But for the moment, we don't see a need to make use of structures like what you're describing, and we're quite happy about what that means.

Craig Cornelius: So I think as we move forward over time, we'll want to be thoughtful about the range of growth prospects we have and how we can continue to drive accretion for our investors. But for the moment, we don't see a need to make use of structures like what you're describing, and we're quite happy about what that means.

Speaker Change: Yes.

Speaker Change: Wow.

Speaker Change: Want to be thoughtful.

Speaker Change: The range of growth prospects, we have.

Speaker Change: Now we can continue to drive accretion for our investors, but for the moment, we don't see a need to make use of structures like what youre, describing in and we're quite happy about what that means.

Craig Cornelius: Very helpful. Thank you. I'll leave it there.

Noah Kaye: Very helpful. Thank you. I'll leave it there.

Sarah Rubenstein: Yep. Thank you.

Craig Cornelius: Yep. Thank you.

Speaker Change: Very helpful. Thank you I'll leave it there.

Operator: Thank you. As a reminder, ladies and gentlemen, we ask that you limit yourself to one question and one follow-up. Please stand by for our next question. Our next question comes from the line of Julian Dumoulin-Smith with Jefferies. Your line is open.

Speaker Change: Thank you.

Speaker Change: As a reminder, ladies and gentlemen, lastly, you limit yourself to one question and one follow up please.

Speaker Change: Please standby for our next question.

Speaker Change: Our next question comes from the line of Julien Dumoulin Smith with Jefferies. Your line is open.

Craig Cornelius: Hey, good morning, team. Thank you very much. Congratulations, Craig, Sarah. Appreciate the time. Just following up here on the update, really nicely done here. Just in terms of the overall RA uplift here in that 240 to 260 or however you want to frame it, the bottom end on 240, what's reflected there in terms of continued ability to see RA uplift materialize? Given how robust of an outlook you've provided here on 2027, is there still a further step function change that you would expect over time there in the RA levels? I know that this is obviously ahead of plan, if you will. Just wanted to kind of clarify what's reflected. And also, what else is in the portfolio improvements? I know you mentioned some key factors.

Julien Dumoulin-Smith: Hey, good morning, team. Thank you very much. Congratulations, Craig, Sarah. Appreciate the time. Just following up here on the update, really nicely done here. Just in terms of the overall RA uplift here in that 240 to 260 or however you want to frame it, the bottom end on 240, what's reflected there in terms of continued ability to see RA uplift materialize?

Speaker Change: Hey, good morning team. Thank you very much congratulations Craig said I appreciate the time.

Speaker Change: Just following up here on the update really nicely done here just in terms of the overall uplift here in that $2 40 to 60, or however, you want to frame that the bottom end of 240, what's reflected there in terms of continued ability to CRA uplift materialize given how robust are an outlook you provided here on 2007 is there still a further.

Julien Dumoulin-Smith: Given how robust of an outlook you've provided here on 2027, is there still a further step function change that you would expect over time there in the RA levels? I know that this is obviously ahead of plan, if you will. Just wanted to kind of clarify what's reflected. And also, what else is in the portfolio improvements? I know you mentioned some key factors.

Speaker Change: Step function change that you would expect over time there in the <unk> levels I know that this is obviously ahead of plan. If you will so just wanted to kind of clarify what's reflected in also.

Speaker Change: What else is in the portfolio improvements I know you mentioned, some key factors anything else above and beyond principally the raw and packing for us here.

Craig Cornelius: Anything else above and beyond principally the RA and Pine Forest here and, I suppose, early refinancing of the 2028 bonds such that you get a run rate 2027 uplift, I presume?

Julien Dumoulin-Smith: Anything else above and beyond principally the RA and Pine Forest here and, I suppose, early refinancing of the 2028 bonds such that you get a run rate 2027 uplift, I presume?

Speaker Change: I suppose early refinancing of the 'twenty eight borrowings is that you've got a run rate 27 uplift I presume.

Sarah Rubenstein: Yeah. Yeah. Thanks. Really appreciate the question on all those fronts. I think we're quite happy with how we're executing on all of them. So first, in terms of what's embedded in the 2027 target range, we set that based on the pricing that we've been securing on forward-dated multi-year RA contracts in today's marketplace today. And in fact, I think for the capacity that's uncontracted, we've set it at a modest buffer discount to the pricing that we're realizing. And relative to what's reflected in the midpoint of our 2025 guidance, that's an uplift of about sort of $5 to 5.5 per kilowatt month versus the contracts under which we're delivering in 2025, which we'd signed some years ago.

Craig Cornelius: Yeah. Yeah. Thanks. Really appreciate the question on all those fronts. I think we're quite happy with how we're executing on all of them. So first, in terms of what's embedded in the 2027 target range, we set that based on the pricing that we've been securing on forward-dated multi-year RA contracts in today's marketplace today.

Speaker Change: Yeah, Yeah. Thanks really appreciate the question on all those fronts I think we.

Speaker Change: We're quite happy with how we're executing on all of them. So first in terms of what's embedded into 2027.

Speaker Change: Target range.

Speaker Change: We said that based on.

Speaker Change: The pricing that we've been securing on forward David multiyear contracts in today's marketplace today.

Craig Cornelius: And in fact, I think for the capacity that's uncontracted, we've set it at a modest buffer discount to the pricing that we're realizing. And relative to what's reflected in the midpoint of our 2025 guidance, that's an uplift of about sort of $5 to 5.5 per kilowatt month versus the contracts under which we're delivering in 2025, which we'd signed some years ago.

Speaker Change: <unk>.

Speaker Change: And.

Speaker Change: And in fact, I think for the capacity that some contracted we set it at.

Speaker Change: But a modest suffered discount to the pricing.

Speaker Change: And.

Speaker Change: And relative to what's reflected in the midpoint of our 2025 guidance, that's an uplift of about.

Speaker Change: Sort of five to $5 $5 per kilowatt month versus.

Speaker Change: The contracts under which we are delivering in 2025 between time some.

Sarah Rubenstein: With respect to whether you could see a further step function up from those levels beyond 2027, I would sort of hasten not to commit to that or expect that, but we do feel good about these levels being sustainable. To give you some further calibration on that, when we look at the prompt year and where contracts for the prompt year or even 2026 are being executed today, they're being executed at substantial premiums to the level we've embedded in this 2027 goal. As we manage our RA marketing program, and we've described previously, we intend to continue a pattern similar to what's evident in our current reporting today where we progressively contract on a multi-year basis our forward RA capacity while leaving some fraction of it open closer to the prompt year to be able to capture some premium value.

Speaker Change: Some years ago.

Craig Cornelius: With respect to whether you could see a further step function up from those levels beyond 2027, I would sort of hasten not to commit to that or expect that, but we do feel good about these levels being sustainable. To give you some further calibration on that, when we look at the prompt year and where contracts for the prompt year or even 2026 are being executed today, they're being executed at substantial premiums to the level we've embedded in this 2027 goal.

Speaker Change: And with respect to whether you could see a further step function up from those levels beyond 2027.

Speaker Change: I would I would sort of pace or not.

Speaker Change: To commit to that or expect that what.

Speaker Change: We do feel good about the level being sustainable.

Speaker Change: Some further calibration on that when we when we look at the crop year.

Speaker Change: And where.

Speaker Change: <unk> for the pump or.

Speaker Change: And even 2026 are being executed today, they're being executed at substantial premiums to the level, we've embedded into 2027 goal and as we manage our marketing.

Craig Cornelius: As we manage our RA marketing program, and we've described previously, we intend to continue a pattern similar to what's evident in our current reporting today where we progressively contract on a multi-year basis our forward RA capacity while leaving some fraction of it open closer to the prompt year to be able to capture some premium value.

Speaker Change: Marketing program and we've described previously we intend to.

Speaker Change: When you're a pattern similar to what's evident in our current reporting today, where.

Speaker Change: We progressively contracts on a multiyear basis, our core with capacity, while leaving some fraction of it open closer to the prompt year to be able to capture some premium value.

Sarah Rubenstein: We think that that produces a good risk-adjusted result for our business model. Based on what we see in the structural reforms, load forecast for California, the way the regulators are continuing to assign value for modern thermal resources like ours, we feel pretty good about being able to continue to run this pattern at levels sort of roughly in line with what we've embedded within the range of 240 to 260 per share. In terms of fleet improvements, we have a whole host of things that we've executed this year that we're quite proud of, which include some modernization of methods for how we're running our plants. We've restructured some O&M and service agreements that have provided some improvement to the CAFD generation of our assets. Those are both observable in our results this year and are reflected in that long-term pro forma expectation.

Craig Cornelius: We think that that produces a good risk-adjusted result for our business model. Based on what we see in the structural reforms, load forecast for California, the way the regulators are continuing to assign value for modern thermal resources like ours, we feel pretty good about being able to continue to run this pattern at levels sort of roughly in line with what we've embedded within the range of 240 to 260 per share.

Think that that produces a good risk adjusted result for our business model and based on what we see in the special requirements load forecast for California. The way the regulators are continuing to assign value for modern thermal resources like ours, we feel pretty good about being able to continue to run this pattern at levels.

Speaker Change: Sort of roughly in line with what we have embedded within the range of $2 40 to 260 per share.

Craig Cornelius: In terms of fleet improvements, we have a whole host of things that we've executed this year that we're quite proud of, which include some modernization of methods for how we're running our plants. We've restructured some O&M and service agreements that have provided some improvement to the CAFD generation of our assets. Those are both observable in our results this year and are reflected in that long-term pro forma expectation.

Speaker Change: In terms of fleet improvements.

Speaker Change: We have a whole host of things that we've executed this year that we're quite proud of.

Speaker Change: Which include some modernization of methods for how we're running our plants.

Speaker Change: We've restructured.

Speaker Change: O&M and service agreements that it provided some improvement to that.

Speaker Change: The generation of our assets.

Speaker Change: Our boat observable in our results this year and are reflected in that long term performance expectation.

Sarah Rubenstein: And then I think that probably covers all your questions, then. Oh, on the refinancing. Yeah. I think as far as what's reflected in 2027, that does reflect unassumed cost for refinancing our 2028 maturities with some buffer relative to the current yield to worst and what we would think is that execution cost. So it's not actually expense savings versus what we have in 2025, but we think it's actually a reflection of a prudent execution plan for that refinancing that we feel good about executing.

Craig Cornelius: And then I think that probably covers all your questions, then. Oh, on the refinancing. Yeah. I think as far as what's reflected in 2027, that does reflect unassumed cost for refinancing our 2028 maturities with some buffer relative to the current yield to worst and what we would think is that execution cost. So it's not actually expense savings versus what we have in 2025, but we think it's actually a reflection of a prudent execution plan for that refinancing that we feel good about executing.

Speaker Change: And then I think.

Speaker Change: I think thats probably covers all your questions.

Speaker Change: On the refinancing yes.

Speaker Change: As far as what's reflected in 2027 that does reflect.

Speaker Change: <unk> assumes cost for refinancing our 2020 maturities.

Speaker Change: With some buffer relative to the current yield to worst and what we would think is that execution cost. So it's not actually interest expense savings versus what we had in 2025, but we think it's actually.

Speaker Change: A reflection of our prudent execution plan for that refinancing that we feel good about executing.

Craig Cornelius: Excellent. Thank you so much for all those details. Really appreciate it. Just one more strategic one as a follow-up here. With respect to the lower payout ratio here, any thoughts about, A, the ability to actually obtain assets from the Clearway Group overall? It sounds like they've got an ample pipeline. That should be transparent. And then related to the extent to which you start going down the lower payout ratio, how do you think about the kinds of assets you would take on? Again, obviously, the storage assets that we're starting to see manifest themselves have a little bit less contract coverage here. Is that part of the strategic pivot as well, having a little less contracted cash flow?

Julien Dumoulin-Smith: Excellent. Thank you so much for all those details. Really appreciate it. Just one more strategic one as a follow-up here. With respect to the lower payout ratio here, any thoughts about, A, the ability to actually obtain assets from the Clearway Group overall? It sounds like they've got an ample pipeline.

Excellent. Thank you so much for all those because really appreciate it just one more strategic one as a follow up here.

Speaker Change: With respect to the lower payout ratio here any thoughts about the ability to actually obtain assets from the clearway group overall it sounds like we've got an ample pipeline that should that should be transparent and the related to the extent to which you start going down a low payout ratio. How do you think about the kinds of assets you would take on again, obviously the storage assets.

Julien Dumoulin-Smith: That should be transparent. And then related to the extent to which you start going down the lower payout ratio, how do you think about the kinds of assets you would take on? Again, obviously, the storage assets that we're starting to see manifest themselves have a little bit less contract coverage here. Is that part of the strategic pivot as well, having a little less contracted cash flow?

Speaker Change: We're starting to see manifest themselves have a little bit less contract coverage here or is that part of the strategic pivot as well having.

Sarah Rubenstein: Yeah. Thanks for the question. Yeah. So first, in terms of the Clearway Group pipeline, as we've shown, it's progressing nicely. Our organization is continuing to expand on its execution track record for pipeline progression and contracting. You probably noted that the pipeline that's disclosed reflects an improvement in the advanced stage capacity that's planned right now for 2026 and 2027 as well as 2028 and 2029, which is not a pattern you see unfolding in other parts of the industry. And to be able to execute on growth investments that would take us to the top end of the range of 240 to 260 in CAFD per share, only a fraction of that pipeline would ultimately need to be implemented and dropped down. So we feel good about the way our out-year goals have been sort of over-collateralized, to use a term.

Craig Cornelius: Yeah. Thanks for the question. Yeah. So first, in terms of the Clearway Group pipeline, as we've shown, it's progressing nicely. Our organization is continuing to expand on its execution track record for pipeline progression and contracting. You probably noted that the pipeline that's disclosed reflects an improvement in the advanced stage capacity that's planned right now for 2026 and 2027 as well as 2028 and 2029, which is not a pattern you see unfolding in other parts of the industry.

Speaker Change: Having a little of contracted cash flow.

Speaker Change: Yes, thanks for the question yes.

Speaker Change: So first in terms of the Clearway group pipeline.

Speaker Change: As we've shown.

Speaker Change: Its progressing nicely our organization.

Speaker Change: Is continuing to expand on its execution track record for pipeline progression and contracting you probably noted that.

Speaker Change: The pipeline that's disclosed reflects an improvement in the advanced stage capacity.

Speaker Change: That's planned right now for 2026, and 2027 as well as 2028 and 2029, which is not a pattern you see.

Craig Cornelius: And to be able to execute on growth investments that would take us to the top end of the range of 240 to 260 in CAFD per share, only a fraction of that pipeline would ultimately need to be implemented and dropped down. So we feel good about the way our out-year goals have been sort of over-collateralized, to use a term.

Speaker Change: Unfolding in other parts of the industry.

Speaker Change: And to be able to execute on growth investments.

Speaker Change: That would take us to the top end of the range of $2 40 to $2 <unk> per share.

Speaker Change: Only a fraction of that pipeline, but also definitely need to be implemented and dropdown.

Speaker Change: So we feel good about that.

Speaker Change: Our out year goals of any.

Speaker Change: Sort of over collateralized to use a term.

Sarah Rubenstein: With respect to growth investments, the sponsor has demonstrated its readiness to continue to make offers in a measured progression that are compatible with CWEN's ability to fund those and commit to them. So I think it's the intention that we'll continue that pattern. In terms of the lower payout ratio, it's not a reflection of a different level of risk in the assets. The storage assets the Clearway Group is developing are almost entirely in the Western markets where they're contracted typically under tolls or in resource adequacy contracts that obtain the vast, vast majority of their revenues from fixed pricing in RA. And across the storage pipeline that Clearway Group is advancing, it's almost entirely assets like that. We have, as we've noted, added battery capacity for Pine Forest in ERCOT, which we view as complementary to diminishing revenue volatility in our wind fleet.

Craig Cornelius: With respect to growth investments, the sponsor has demonstrated its readiness to continue to make offers in a measured progression that are compatible with CWEN's ability to fund those and commit to them. So I think it's the intention that we'll continue that pattern. In terms of the lower payout ratio, it's not a reflection of a different level of risk in the assets.

Speaker Change: With respect to growth investments in the sponsor has demonstrated its readiness to continue too.

Make offers and a measured progression that are compatible with the.

Speaker Change: <unk> ability to fund those and commit to them so I think that.

Speaker Change: And that will continue that pattern in terms of the lower payout ratio, it's not a reflection of a different level of risk in the asset the.

Craig Cornelius: The storage assets the Clearway Group is developing are almost entirely in the Western markets where they're contracted typically under tolls or in resource adequacy contracts that obtain the vast, vast majority of their revenues from fixed pricing in RA. And across the storage pipeline that Clearway Group is advancing, it's almost entirely assets like that. We have, as we've noted, added battery capacity for Pine Forest in ERCOT, which we view as complementary to diminishing revenue volatility in our wind fleet.

Speaker Change: The storage assets that Clearway group is developing almost entirely in the western markets, where theyre contracted typically enter tolls or and resource adequacy contracts that.

Speaker Change: Tim.

Speaker Change: Vast majority of their revenues from fixed pricing.

Speaker Change: Hi.

Speaker Change: And across the storage pipeline that Clearway group is advancing its almost entirely assets like that we have as we've known it added battery capacity for Pine Forest in ERCOT.

Speaker Change: Which we view as complimentary.

Sarah Rubenstein: But almost all the storage capacity we're advancing will produce revenues under long-term contracted toll-type agreements that are 15 to 20 years in duration, like you see for Honeycomb. So the payout ratio reduction goals that we have to reach the lower end of 70% to 80% are really about how we fund the business over time in response to the kind of question Noah asked about how we metabolize the input we got from our investors who really want to see us fund our growth principally through our cash flow generation. And driving that payout ratio over time lets us do that.

Craig Cornelius: But almost all the storage capacity we're advancing will produce revenues under long-term contracted toll-type agreements that are 15 to 20 years in duration, like you see for Honeycomb. So the payout ratio reduction goals that we have to reach the lower end of 70% to 80% are really about how we fund the business over time in response to the kind of question Noah asked about how we metabolize the input we got from our investors who really want to see us fund our growth principally through our cash flow generation. And driving that payout ratio over time lets us do that.

Speaker Change: Diminishing revenue volatility in our wind fleet, but almost all of the storage capacity, we're advancing will produce revenues under long term contract.

Speaker Change: Pull type agreements that are 15 to 20 years in duration.

Speaker Change: So the payout ratio reduction goals that we have to reach the lower end of 70% to 80% are really about how we fund the business over time in response to the kind of the question you asked about how we metabolized hope we got from our investors, who really want to see us fund our growth principally through our cash flow.

Ration in driving that payout ratio over time lets us do that.

Steve Fleishman: Excellent. Thank you guys so much.

Julien Dumoulin-Smith: Excellent. Thank you guys so much.

Speaker Change: Excellent. Thank you guys so much.

Operator: Thank you. Please stand by for our next question. Our next question comes from the line of Steve Fleishman with Wolfe Research. Your line is open.

Speaker Change: Thank you.

Speaker Change: Please standby for our next question.

Yes.

Speaker Change: Our next question comes from the line of Steve Fleishman with Wolfe Research. Your line is open.

Justin Clare: Yeah. Hi. Thanks. Congrats on the update. Very clear. So just on the you did mention maybe also ultimately looking at M&A. I think that's been hard to do, but with this increased flexibility. Just any sense, Craig, on opportunity set there and has pricing for assets kind of reset to a level where that could meet hurdles?

Steve Fleishman: Yeah. Hi. Thanks. Congrats on the update. Very clear. So just on the you did mention maybe also ultimately looking at M&A. I think that's been hard to do, but with this increased flexibility. Just any sense, Craig, on opportunity set there and has pricing for assets kind of reset to a level where that could meet hurdles?

Steve Fleishman: Yeah, Hi, thanks, Congrats on the updates.

Steve Fleishman: Clear.

So just.

Steve Fleishman: On the.

Speaker Change: You did mention maybe also ultimately looking at M&A I think that's been hard to do.

Steve Fleishman: Yeah.

Steve Fleishman: But with this increased flexibility.

Speaker Change: Just any sense any sense Craig on.

Speaker Change: Opportunity set there and as far as pricing for.

Speaker Change: For assets kind of reset to a level where that.

Speaker Change: Could meet hurdles.

Sarah Rubenstein: Yeah. Thanks for the congrats first, Steve. We're really happy with what we've settled on here as a framework. On the M&A question, we are selectively engaged on sort of individual asset or groups of assets that, as we've noted, would be right-sized relative to the capital allocation framework and growth goals that we've laid out here. And in those places where we're engaging, we are finding that there are assets that we can potentially acquire that could be acquired at CAFD yields, return requirements, and sort of risk profiles that are consistent with the types of assets the Clearway Group sponsor has been offering to CWEN and that, in some cases, also could make use of our demonstrated capability for repowering. So for the time being, it's really assets like that that we're focused on.

Craig Cornelius: Yeah. Thanks for the congrats first, Steve. We're really happy with what we've settled on here as a framework. On the M&A question, we are selectively engaged on sort of individual asset or groups of assets that, as we've noted, would be right-sized relative to the capital allocation framework and growth goals that we've laid out here.

Speaker Change: Yes, thanks for the congrats first Steve we're really happy with.

Speaker Change: But we've settled on here as a framework on the.

Steve Fleishman: The M&A question.

Speaker Change: We are.

Speaker Change: Selectively engaged.

Speaker Change: Sort of the individual asset or <unk>.

Speaker Change: With assets.

Speaker Change: As we've noted would be right sized relative to the capital allocation framework and growth goals that we've laid out here.

Craig Cornelius: And in those places where we're engaging, we are finding that there are assets that we can potentially acquire that could be acquired at CAFD yields, return requirements, and sort of risk profiles that are consistent with the types of assets the Clearway Group sponsor has been offering to CWEN and that, in some cases, also could make use of our demonstrated capability for repowering. So for the time being, it's really assets like that that we're focused on.

Speaker Change: And in those places where we're engaging.

Speaker Change: We are finding that there are assets that we can potentially acquire.

Speaker Change: Yeah.

Speaker Change: Could be acquired a passenger yields and return requirements.

Speaker Change: Certain risk profiles that are consistent with the types of assets the clearway.

Clearway group sponsor has been offering.

Speaker Change: And that in some cases also could make use of our demonstrated capability to rebalance.

Speaker Change: So thats done being it's really assets like that that we're focused on.

Sarah Rubenstein: As we've noted, we don't really need to acquire projects outside of the sponsor pipeline to be able to deliver on the growth goals we've laid out here already, which we think are quite attractive and should be to our investors. So where we're thinking about M&A, we're really doing so in a way that's disciplined and that's centered on assets that we think are complementary to our resource mix, our customer profile, and that would exhibit really attractive and accretive returns. As we go forward over the course of the next few years, surely, we can see the industry landscape evolve in ways that there's potentially a creative M&A that doesn't fit that profile. But what I described is what we're really focused on today.

Craig Cornelius: As we've noted, we don't really need to acquire projects outside of the sponsor pipeline to be able to deliver on the growth goals we've laid out here already, which we think are quite attractive and should be to our investors. So where we're thinking about M&A, we're really doing so in a way that's disciplined and that's centered on assets that we think are complementary to our resource mix, our customer profile, and that would exhibit really attractive and accretive returns.

Speaker Change: As we've noted we don't really need to acquire projects.

Speaker Change: Outside of the sponsor pipeline to be able to deliver on the growth goals. We've laid out here already which we think are quite attractive to our investors, so where we're thinking about M&A.

Speaker Change: We're doing so in a way that is disciplined and that's centered on assets that we think are complementary to our resource mix, our customer profile and that would exhibit really attractive.

Craig Cornelius: As we go forward over the course of the next few years, surely, we can see the industry landscape evolve in ways that there's potentially a creative M&A that doesn't fit that profile. But what I described is what we're really focused on today.

Speaker Change: And accretive returns.

Speaker Change: As we go forward over the course of the next few years.

Speaker Change: Certainly we can see the industry landscape evolve in ways.

Speaker Change: Theres potentially accretive M&A that doesn't fit that profile, but what I described is what we're really focused on.

Justin Clare: Okay. Great. And then just one follow-up to ask before. I might have missed this, but just the fleet improvements, could you be more specific what those are? Is it certain technologies or just across the board?

Steve Fleishman: Okay. Great. And then just one follow-up to ask before. I might have missed this, but just the fleet improvements, could you be more specific what those are? Is it certain technologies or just across the board?

Speaker Change: Okay.

Speaker Change: Great and then just just one follow up to ask before just.

Speaker Change: It could.

Speaker Change: I might have missed this but just to fleet improvements could you be more specific what those are is it.

Speaker Change: Is it certain.

Speaker Change: <unk> technologies or.

Sarah Rubenstein: Yeah. I think principally, we have been employing modernized information technology tools for work planning and sort of general execution on plant availability and conversion efficiency in parts of our fleet. So that's one thing that is helping us to improve on results year over year. Our other improvements are evident in some improvements in our conventional fleet's availability and execution versus prior years, which are a result of just some pretty intensive execution around our engagement with those plants. And then lastly, the restructuring of some service agreements and O&M agreements in our wind fleet, which have improved on our CAFD realization as a business. So those are really the principal buckets of execution. And those, we aim to make durable, which is why they're reflected in our long-term goals now.

Craig Cornelius: Yeah. I think principally, we have been employing modernized information technology tools for work planning and sort of general execution on plant availability and conversion efficiency in parts of our fleet. So that's one thing that is helping us to improve on results year over year. Our other improvements are evident in some improvements in our conventional fleet's availability and execution versus prior years, which are a result of just some pretty intensive execution around our engagement with those plants.

Speaker Change: Just across the board.

Speaker Change: Yes.

Speaker Change: I think principally.

Speaker Change: We have been employing modernized information technology tools for work planning and sort of general execution on plant availability and conversion efficiency in parts of our fleets to that.

Speaker Change: One thing that is helping.

Speaker Change: Helping us to improve on our results year over year.

Speaker Change: Our other improvement.

Speaker Change: Are evident.

Speaker Change: Some improvements in our conventional fleets.

Speaker Change: Availability and execution versus prior years.

Speaker Change: Which are.

A result of just some pretty intensive execution around.

Craig Cornelius: And then lastly, the restructuring of some service agreements and O&M agreements in our wind fleet, which have improved on our CAFD realization as a business. So those are really the principal buckets of execution. And those, we aim to make durable, which is why they're reflected in our long-term goals now.

Speaker Change: R&D agent with those plans.

Speaker Change: And then lastly.

Speaker Change: The restructuring of some service agreements and O&M agreements that are would you. Please.

Speaker Change: Improved on.

Speaker Change: And as a business. So those are really the principal buckets of execution of those.

Speaker Change: We aim to make durable which is why they are reflected.

Justin Clare: Got it. Thank you.

Steve Fleishman: Got it. Thank you.

Speaker Change: Our long term goals.

Sarah Rubenstein: Thanks, Steve.

Craig Cornelius: Thanks, Steve.

Speaker Change: Got it thank you.

Operator: Please stand by for our next question. Our next question comes from the line of Justin Clare with Roth Capital Partners. Your line is open.

Steve Fleishman: Thanks, Steve.

Speaker Change: Please standby for our next question.

Speaker Change: Our next question comes from the line of Justin Clare with Roth Capital Partners. Your line is open.

Michael Lonegan: Yeah. Hi. Good morning. Thanks for taking the question. So I wanted to first start out just on the dividend per share growth and was wondering how you're thinking about the growth of dividends per share as we look beyond 2027. And are you committed to continuing to grow the dividend but at a slower pace than CAFD? And then should we be anticipating really kind of a gradual move toward the low end of the payout ratio, or could we see something more faster? And then just wondering on if we do see a faster move to the low end, could that be driven by an equity raise? Is that a possibility?

Justin Clare: Yeah. Hi. Good morning. Thanks for taking the question. So I wanted to first start out just on the dividend per share growth and was wondering how you're thinking about the growth of dividends per share as we look beyond 2027. And are you committed to continuing to grow the dividend but at a slower pace than CAFD? And then should we be anticipating really kind of a gradual move toward the low end of the payout ratio, or could we see something more faster? And then just wondering on if we do see a faster move to the low end, could that be driven by an equity raise? Is that a possibility?

Justin Clare: Hi, good morning, Thanks for taking the question.

Justin Clare: So I wanted to first start out just on the dividend per share growth and was wondering how youre thinking about.

Justin Clare: The growth of dividends per share as we look beyond 2027.

Justin Clare: Are you committed to continuing to grow the dividend, but at a slower pace than Cathy and then should we be anticipating really kind of a gradual move toward the low end of the payout ratio.

Justin Clare: Or could we see something more.

Justin Clare: Faster.

Justin Clare: And then just wondering.

Justin Clare: If we do see a faster move to the low end could that be driven by an equity raise.

Sarah Rubenstein: Yeah. Understand. Yeah. I mean, I think that as is evident in the progression we've run through 2025, 2026, where we've reaffirmed the commitments that had already been made for gradually declining dividend per share growth rates over those years and our articulation of a range of 5 to 6.5% in DPS growth for 2027, I think we're trying to manage our progression in corporate capital allocation framework in a stepwise way. And we think that that is prudent as we move over time and together with our investors land on a capital allocation framework and growth model for the company that we're all happy with. I think we tried to be pretty intentional when articulating our framework for 2027 in describing our intention to set our dividend per share growth goals in 2028 and beyond based on a payout ratio.

Craig Cornelius: Yeah. Understand. Yeah. I mean, I think that as is evident in the progression we've run through 2025, 2026, where we've reaffirmed the commitments that had already been made for gradually declining dividend per share growth rates over those years and our articulation of a range of 5 to 6.5% in DPS growth for 2027, I think we're trying to manage our progression in corporate capital allocation framework in a stepwise way.

Speaker Change: Possibility yes.

Speaker Change: Yeah understand yes, I mean, I think that.

Speaker Change: As is evident in.

Speaker Change: The progression we've run through.

Speaker Change: 2025 2026.

Speaker Change: Where we reaffirmed the commitments that have already been made for.

Speaker Change: Gradually declining dividend per share growth rates over those years.

Speaker Change: And articulation.

Speaker Change: Range of five to six 5% and EPS growth for 2027, I think we are trying to.

Speaker Change: Manage our progression in corporate capital allocation framework in a stepwise way.

Craig Cornelius: And we think that that is prudent as we move over time and together with our investors land on a capital allocation framework and growth model for the company that we're all happy with. I think we tried to be pretty intentional when articulating our framework for 2027 in describing our intention to set our dividend per share growth goals in 2028 and beyond based on a payout ratio.

Speaker Change: And we think that that is.

Speaker Change: As prudent as we move over time.

Speaker Change: Together with our investors.

Speaker Change: Land on our capital allocation framework and growth model for the company that were all happy with.

Speaker Change: I think we tried to be pretty intentional when articulating our framework after 2027.

Speaker Change: In.

Speaker Change: Describing our intention to set our dividend per share growth goal.

Speaker Change: In 2028.

Sarah Rubenstein: So I think our intention is that we will settle on dividend per share levels for those future years based on what can reasonably be accommodated within that payout ratio level while assessing the creativeness of the use of capital when reinvested in assets that could compound our CAFD per share.

Craig Cornelius: So I think our intention is that we will settle on dividend per share levels for those future years based on what can reasonably be accommodated within that payout ratio level while assessing the creativeness of the use of capital when reinvested in assets that could compound our CAFD per share.

Speaker Change: And beyond based on the payout ratio.

Speaker Change: I think our intention is that we will settle on dividend.

Speaker Change: Dividend per share level for those future years based on what can reasonably be accommodated within that payout ratio level, while assessing the accretive net.

Speaker Change: The use of capital when reinvested in assets that could confound, our cafe per share so.

Sarah Rubenstein: So hopefully, what's evident in that game plan is that we both don't need to raise large amounts of equity that would be diluted to our current owners in a way that's sort of surprising or unpredictable, and that we would really emphasize over time establishing an increasingly robust balance sheet that allows us to meet our growth goals in any given year, really principally through our retained CAFD, which will be growing from the low hundreds to the very high hundreds or low 200s in millions of dollars of retained CAFD that's reinvestable, and our corporate leverage ratio, which we intend to manage in a way that's prudent. So I think we tried to be pretty clear about the fact that we don't intend to issue equity right now. We don't need to.

Craig Cornelius: So hopefully, what's evident in that game plan is that we both don't need to raise large amounts of equity that would be diluted to our current owners in a way that's sort of surprising or unpredictable, and that we would really emphasize over time establishing an increasingly robust balance sheet that allows us to meet our growth goals in any given year, really principally through our retained CAFD.

Hopefully what's evident in that game plan is that.

Speaker Change: We.

Speaker Change: We don't need to raise large amounts of equity that would be dilutive to our current owners.

Speaker Change: And in a way that's sort of surprising or unpredictable.

Speaker Change: And that.

Speaker Change: We would really emphasize over time establishing.

Speaker Change: And increasingly robust balance sheet debt.

Speaker Change: That allows us to meet our growth goals in any given year really principally through our retained Cathy which we'll be growing from the low hundreds to the to the very high hundreds or low two hundreds.

Craig Cornelius: Which will be growing from the low hundreds to the very high hundreds or low 200s in millions of dollars of retained CAFD that's reinvestable, and our corporate leverage ratio, which we intend to manage in a way that's prudent. So I think we tried to be pretty clear about the fact that we don't intend to issue equity right now. We don't need to.

Speaker Change: In billions of dollars of retained capital Thats re investable, and our and our and our corporate leverage ratio, which we intend to manage in a way that is prudent.

Speaker Change: <unk>.

Speaker Change: I think we've tried to be pretty clear about the fact that.

Speaker Change: We don't intend to issue equity right now we don't need to.

Sarah Rubenstein: And that as we advance on this investment program, and we're getting to the point where modest levels of equity issuances in line with the kind of pattern that Sarah and I both discussed would be in order, that we'll be communicative about it so that we're not catching anybody by surprise.

Craig Cornelius: And that as we advance on this investment program, and we're getting to the point where modest levels of equity issuances in line with the kind of pattern that Sarah and I both discussed would be in order, that we'll be communicative about it so that we're not catching anybody by surprise.

Speaker Change: And that as we advance on this investment program and we're getting to the point where.

Speaker Change: Modest levels of equity issuance is in line with the kind of pattern that Sarah and I. Both discussed would be an order that will be communicated about it so that we're not attaching by surprise.

Michael Lonegan: Okay. Got it. That's helpful. And then another question. Just wanted to ask on the open capacity that you have for your gas fleet here. It looks like the contracted capacity didn't change from last quarter when we look at the 2027 year. Just wondering if was pricing less favorable in the past quarter, and so you didn't look to contract any of the additional capacity? And then just wondering when we might see more of that 2027 capacity contracted. Is it likely to be next summer before we see more of that? And then also, how much could you potentially keep open until we get closer to 2027? Do you anticipate prices trending upward and potentially waiting to contract that open capacity?

Justin Clare: Okay. Got it. That's helpful. And then another question. Just wanted to ask on the open capacity that you have for your gas fleet here. It looks like the contracted capacity didn't change from last quarter when we look at the 2027 year. Just wondering if was pricing less favorable in the past quarter, and so you didn't look to contract any of the additional capacity?

Speaker Change: Okay got it that's helpful.

Speaker Change: And then another question just wanted to ask on.

Speaker Change: The opening capacity that you have for your gas fleet here.

It looks like the contracted capacity didn't change.

Speaker Change: From last quarter, when we look at the 2027 year.

Speaker Change: Wondering if it.

Speaker Change: Was pricing less favorable in the past quarter and so you didn't look to contract any of the additional capacity.

Justin Clare: And then just wondering when we might see more of that 2027 capacity contracted. Is it likely to be next summer before we see more of that? And then also, how much could you potentially keep open until we get closer to 2027? Do you anticipate prices trending upward and potentially waiting to contract that open capacity?

Speaker Change: So and then just wondering when we might see more of that 2027 capacity contracted is it likely to be next summer before we see more of that.

Speaker Change: And then also how much could you potentially keep open until we get closer to 2027.

Speaker Change: Do you anticipate prices trending upward.

Speaker Change: Essentially waiting to contract out that open capacity.

Sarah Rubenstein: Yeah. There are annual rhythms to the way that load-serving entities predict their resource adequacy in California. The contract that we announced in the most recent quarterly call reflected our contracting in that ordinary pattern. We do have bilateral engagements that are ongoing today. We've noted that we're marketing the open RA capacity that we have at value with patience. I think it would be our intention to increase the fraction that's capacity contracted for 2027 as we move through the next 9 months and try to create a pattern that looks like what you can see today rolled forward each year. We feel really good about that contracting process. The need for the assets remains quite evident. We feel very good about being able to execute on the kind of pricing that's embedded within our range and will be patient moving forward over time.

Craig Cornelius: Yeah. There are annual rhythms to the way that load-serving entities predict their resource adequacy in California. The contract that we announced in the most recent quarterly call reflected our contracting in that ordinary pattern. We do have bilateral engagements that are ongoing today. We've noted that we're marketing the open RA capacity that we have at value with patience.

Speaker Change: Yes, there are annual rhythms to the way that load serving entities <unk> resource adequacy.

Speaker Change: In California and.

Speaker Change: The contract that we announced.

Speaker Change: In the most recent quarterly call.

Speaker Change: Reflected.

Speaker Change: Our contracting.

Speaker Change: In that ordinary pattern.

Speaker Change: We do have bilateral engagements that are ongoing today. We've noted that we've noted that we're marketing the open capacity that we have that value with patients.

Craig Cornelius: I think it would be our intention to increase the fraction that's capacity contracted for 2027 as we move through the next 9 months and try to create a pattern that looks like what you can see today rolled forward each year. We feel really good about that contracting process. The need for the assets remains quite evident. We feel very good about being able to execute on the kind of pricing that's embedded within our range and will be patient moving forward over time.

Speaker Change: And I think it would be our intention to increase the fraction that's capacity contracted for 2027 as we move through.

Speaker Change: The next nine months and try to create a pattern that looks like what you can see today rolled forward each year.

So we feel really good about that.

Speaker Change: Contract process.

Speaker Change: The needs of the assets remains quite evident.

We feel very good about being able to execute on the kind of pricing that's embedded within our range and we'll be patient moving forward over time.

Sarah Rubenstein: I think if you look at 2025, we've contracted the capacity that we have that underpins our guidance for next year almost entirely. I think that's probably what you should expect will look like going into any given prompt year.

Craig Cornelius: I think if you look at 2025, we've contracted the capacity that we have that underpins our guidance for next year almost entirely. I think that's probably what you should expect will look like going into any given prompt year.

Speaker Change: If you look at 2025.

Speaker Change: We've contracted the capacity that we have.

That underpins our guidance for next year, almost entirely and I think thats, probably what you should expect will look like going into any given property.

Michael Lonegan: Okay. Got it. That's helpful. Thank you.

Justin Clare: Okay. Got it. That's helpful. Thank you.

Sarah Rubenstein: Thank you.

Craig Cornelius: Thank you.

Speaker Change: Okay got it that's helpful. Thank you.

Operator: Please stand by for our next question. Our next question comes from the line of Michael Lonegan with Evercore ISI. Your line is open.

Speaker Change: Thank you.

Speaker Change: Please standby for our next question.

Speaker Change: Our next question comes from the line of Mike Malone again with Evercore ISI. Your line is open.

Michael Lonegan: Hi. Thanks for taking my questions. So as we think more about some of the assumptions in the 2027 outlook, in terms of some more specific details, just wondering what you're assuming for CAFD yields on investments and then this specific refinancing rate on the 2028 bonds.

Mike Malone: Hi, Thanks for taking my questions.

So as we think more about some of the assumptions in the 2027 outlook.

Mike Malone: Some specific details just wondering what youre, assuming for Caf D yields on investments in that.

Mike Malone: The specific refinancing rate on the 2028 bonds.

Sarah Rubenstein: Yeah. I mean, I think what we've communicated historically is that for sponsor-offered dropdowns, we're planning around a 10% CAFD yield as the level on which we're trying to create and capitalize projects for dropdowns. And that's a level that the sponsor increased last fall when the cost of capital for CWEN had increased and was actually higher than it is today. We continue to plan for that in the projects that are being prepared and created. And that's approximately the basis for the goal setting for incremental growth capital investments today.

Craig Cornelius: Yeah. I mean, I think what we've communicated historically is that for sponsor-offered dropdowns, we're planning around a 10% CAFD yield as the level on which we're trying to create and capitalize projects for dropdowns. And that's a level that the sponsor increased last fall when the cost of capital for CWEN had increased and was actually higher than it is today. We continue to plan for that in the projects that are being prepared and created. And that's approximately the basis for the goal setting for incremental growth capital investments today.

Speaker Change: Yes, I mean, I think what we've communicated historically at that.

Speaker Change: For sponsor offer a dropdown.

Speaker Change: We're planning around a 10% cap deal does.

Speaker Change: The level on which we're trying to create and capitalized projects for Dropdowns.

Speaker Change: And thats the level that the <unk>.

Speaker Change: Bonser increase last fall when the cost of capital for.

Speaker Change: <unk>.

Speaker Change: That increase was actually higher than it is today.

Speaker Change: We continue to plan for that and the projects that are being prepared and created.

Speaker Change: And that's approximately the basis for the Gulf setting certain incremental growth capital investments today.

Sarah Rubenstein: As far as refinancing assumptions in 2027 are concerned, without getting into specific numbers, I can tell you that what's embedded in this range reflects a conservative estimate of the cost of refinancing those bonds relative to their current yield to worst and the advice that we get from the banks who we would engage on that refinancing. So we feel good about being able to execute at the cost of capital that's reflected in this target range based on what we see today.

Craig Cornelius: As far as refinancing assumptions in 2027 are concerned, without getting into specific numbers, I can tell you that what's embedded in this range reflects a conservative estimate of the cost of refinancing those bonds relative to their current yield to worst and the advice that we get from the banks who we would engage on that refinancing. So we feel good about being able to execute at the cost of capital that's reflected in this target range based on what we see today.

Speaker Change: And as far as refinancing assumptions in 2027 are concerned.

Speaker Change: Without getting into specific numbers I can tell you that.

What's embedded in this range.

Speaker Change: Flex Conservative estimate.

Speaker Change: Of the cost of refinancing those bonds relative to their current yield to worst.

Speaker Change: Yes.

Speaker Change: From the banks, so we would engage on that refinancing so we.

Speaker Change: We feel good about being able to execute at the cost of capital that's reflected in its target range based on what we see today.

Michael Lonegan: Great. Thanks. And then secondly from me, just wondering, as you consider the data center demand, you talked about the sponsors' engagement with corporates and load-serving entities, the power data centers. I think you highlighted 5 gigawatts of renewables. Just wondering, at the C1 level, would you consider acquiring more gas generation assets, or is your focus entirely on renewables paired with storage?

Speaker Change: Great. Thanks, and then secondly for me I was just wondering as you consider the data center demand you talked about the sponsors engagement with corporates and load serving entities. The power data centers that you highlighted five gigawatts of renewables just wondering at this current level would you consider acquiring more gas.

Speaker Change: Generation assets or is there a focus entirely on renewables paired with storage.

Speaker Change: Yes.

Sarah Rubenstein: I think that the variety of project configurations that are being evaluated in Clearway Group's work around data centers is substantial. There are certainly scenarios for certain types of project configurations that would make use of dispatchable thermal generation. The majority of what's being engaged on would reflect the use of mainstay wind, solar, and battery resources in provisioning what the data center customer would require. But it's conceivable as we look out into the future that there could be some other resource types that would complement those. I think from the context of Clearway Energy, Inc., when projects are created, the focal point would be on creating assets that are highly contracted in their cash flow profile and long in the tenor of those contracts.

Craig Cornelius: I think that the variety of project configurations that are being evaluated in Clearway Group's work around data centers is substantial. There are certainly scenarios for certain types of project configurations that would make use of dispatchable thermal generation. The majority of what's being engaged on would reflect the use of mainstay wind, solar, and battery resources in provisioning what the data center customer would require.

Speaker Change: I think.

Speaker Change: <unk>.

Speaker Change: The variety of project configurations that are being evaluated.

Speaker Change: And clear right groups work around data centers is substantial.

Speaker Change: Yeah.

There.

Speaker Change: There are certainly.

Speaker Change: Scenarios for certain types of project configurations that.

That would make us.

Speaker Change: Dispatch of ball.

Speaker Change: Thermal generation.

Speaker Change:

Speaker Change: The majority of what's being engaged on would reflect.

Speaker Change: Use of mainstay.

Speaker Change: Wind solar and battery resources and provisioning why.

Speaker Change: The data center customer would require.

Craig Cornelius: But it's conceivable as we look out into the future that there could be some other resource types that would complement those. I think from the context of Clearway Energy, Inc., when projects are created, the focal point would be on creating assets that are highly contracted in their cash flow profile and long in the tenor of those contracts.

Speaker Change: Yeah.

Speaker Change: But it's.

Speaker Change: It's conceivable if we look out into the future that there could be some.

Speaker Change: Other research sidestepping complement those I think from the from the context of Clearway Energy Inc.

Speaker Change: When projects are created the vocal point would be on creating assets that are.

Speaker Change: Highly contracted and their cash flow profile.

Sarah Rubenstein: I think what we'll be focused on when creating projects is creating projects that will be technically reliable and financially predictable, while being responsive to the needs of a data center customer. So there's a lot of time to go, but I think what we're focused on is leveraging our existing capabilities, which include wind, solar, storage, and gas-fired generation, but with a particular focal point on how to create low-carbon solutions that are highly reliable.

Craig Cornelius: I think what we'll be focused on when creating projects is creating projects that will be technically reliable and financially predictable, while being responsive to the needs of a data center customer. So there's a lot of time to go, but I think what we're focused on is leveraging our existing capabilities, which include wind, solar, storage, and gas-fired generation, but with a particular focal point on how to create low-carbon solutions that are highly reliable.

Speaker Change: And long in the tenor of those contracts and I.

Speaker Change: I think what we'll be focused on when creating projects is creating projects that will be technically reliable and financially predictable and.

Speaker Change: While being responsive to the needs of.

Speaker Change: Other data center customers so.

Michael Lonegan: Great. Thank you very much.

Operator: Thank you. Please stand by for our next question. Our next question comes from the line of Angie Storozynski with Seaport. Your line is open.

Angie Storozynski: Thank you. So I have a question about your existing renewable power assets and the type of contracts that underpin them. So I'm just wondering if you could comment, for example, if you have any basis exposure at these busbar contracts. Are you seeing, for example, any issues with, well, obviously, the transmission congestion here, but also the wake effect impacting potentially your wind assets, any sort of premature aging or capacity degradation on the storage assets, and any exposure to changes on the grid or basically trading conditions in power markets that could actually impact the EBITDA generation of these existing assets?

Angie Storozynski: Are you seeing, for example, any issues with, well, obviously, the transmission congestion here, but also the wake effect impacting potentially your wind assets, any sort of premature aging or capacity degradation on the storage assets, and any exposure to changes on the grid or basically trading conditions in power markets that could actually impact the EBITDA generation of these existing assets?

Speaker Change: To.

Speaker Change: Changes in on the grid or you know like.

Speaker Change: Basically.

Speaker Change: Trading conditions in time markets that could actually impact with or the EBITDA generation of the existing assets.

Sarah Rubenstein: Yeah. I understand the question. Yeah. So I mean, first of all, we're fortunate to have a fleet which earns a very, very substantial majority of its revenues in node-settled unit contingent contracts. That's true of a very, very high fraction of our total budgeted EBITDA on CAFD. Just breaking down your questions, with respect to the storage assets that we brought online this year, they're performing very well. I'm very proud of the work our team has done as we've commissioned those over the course of this summer, really. They're running. They're running very well. And that reflects a level of vigilance, know-how, and capability with our organization to work with our suppliers to intensively drive performance in those assets, but they're performing very well.

Craig Cornelius: Yeah. I understand the question. Yeah. So I mean, first of all, we're fortunate to have a fleet which earns a very, very substantial majority of its revenues in node-settled unit contingent contracts. That's true of a very, very high fraction of our total budgeted EBITDA on CAFD. Just breaking down your questions, with respect to the storage assets that we brought online this year, they're performing very well.

Speaker Change: I understand the question yeah. So I mean first of all we're fortunate to have.

Speaker Change:

Speaker Change: Our fleet.

Speaker Change: [noise], which earn.

Speaker Change: A very very substantial majority.

Speaker Change: Its revenues and notes settled unit contingent contracts.

Speaker Change: That's true.

Speaker Change: A very very high fraction of our total.

Speaker Change: Adjusted EBITDA and Kathy.

Speaker Change: Wafers, just breaking down your question with respect.

Speaker Change: Back to the storage assets that we brought online this year, they're performing very well.

Craig Cornelius: I'm very proud of the work our team has done as we've commissioned those over the course of this summer, really. They're running. They're running very well. And that reflects a level of vigilance, know-how, and capability with our organization to work with our suppliers to intensively drive performance in those assets, but they're performing very well.

Speaker Change: I'm very proud of the work our team has done is we've commissioned those over.

Speaker Change: The course of the summer really they're running and they're running very well and you know that reflects a level of vigilance and know how and capability with our organization to work with our suppliers too.

Speaker Change: Intensively drive performance in those assets, but they are performing.

Sarah Rubenstein: With respect to wind assets, we did have some challenges in availability that you would have seen in our results last year. And the fleet improvement program we've been executing this year with investments and contract structures was intended to help address that. And as you can see in our results year-to-date, I think we've actually driven a lot of those improvements in terms of availability in different parts of our fleet, and overall cash flow generation from it. And I think our prospects for repowering look promising for us as we think about projects that are maturing and in a position to be repowered based on their original place and service dates. And in terms of basis exposure, we have it on a limited number of contracts. We are managing it, I think, quite well now as an organization.

Craig Cornelius: With respect to wind assets, we did have some challenges in availability that you would have seen in our results last year. And the fleet improvement program we've been executing this year with investments and contract structures was intended to help address that. And as you can see in our results year-to-date, I think we've actually driven a lot of those improvements in terms of availability in different parts of our fleet, and overall cash flow generation from it.

Speaker Change: Very well.

Speaker Change: With respect to wind assets, we we did have.

Speaker Change: Some challenges and availability that you would've seen in our results last year and the fleet improvement program. We've been executing this year with investments in contract structures was intended to help address that and if and as you can see in our results year to date I think we've actually driven a lot of those improvements in.

Speaker Change: In terms of availability in different parts of our fleet and overall cash flow generation from it.

Craig Cornelius: And I think our prospects for repowering look promising for us as we think about projects that are maturing and in a position to be repowered based on their original place and service dates. And in terms of basis exposure, we have it on a limited number of contracts. We are managing it, I think, quite well now as an organization.

Speaker Change:

Speaker Change: And you know I think our prospects for repowering, but promising for us as we think about projects that are maturing and then in a position to be re powered based on the original place in service States.

Sarah Rubenstein: And when we think about going forward, one of the really fortunate aspects of the supply-demand balance for new electricity generation is that we're in a position to establish settlement terms for new revenue contracts that really minimize risk for the project equity owner. And when you heard me reference the successful work our origination team has had in sort of driving settlement terms that are favorable, that's at least part of what we're talking about. We think we've been disciplined about the settlement structures we've insisted on. And our track record and the scarcity value of our projects allows us to be pretty insistent about those risk-mitigated structures.

Craig Cornelius: And when we think about going forward, one of the really fortunate aspects of the supply-demand balance for new electricity generation is that we're in a position to establish settlement terms for new revenue contracts that really minimize risk for the project equity owner.

Craig Cornelius: And when you heard me reference the successful work our origination team has had in sort of driving settlement terms that are favorable, that's at least part of what we're talking about. We think we've been disciplined about the settlement structures we've insisted on. And our track record and the scarcity value of our projects allows us to be pretty insistent about those risk-mitigated structures.

Angie Storozynski: Great. And you don't have any of these firm renewable power contracts, like 24/7 contracts, which a lot of tech companies wanted to sign. And I'm just wondering why that is. Do you think that the risk-reward is not attractive with these types of contracts?

Sarah Rubenstein: I don't want to speak to choices others are making. I think we understand why those contract structures are appealing to customers. In our context, when we thought about our business model and our capabilities as an organization and how we want to try to manage to produce risk-adjusted returns consistent with the business model we've established for Clearway Energy, Inc., that kind of structure just sort of felt like it did not need to be part of how we commercialize the projects that we've built over the last few years. And I think as we go forward, we want to be responsive to the decarbonization goals that all of our customers have, including customers from the technology community, while managing a basket of projects that each individually stand on their own.

Craig Cornelius: I don't want to speak to choices others are making. I think we understand why those contract structures are appealing to customers. In our context, when we thought about our business model and our capabilities as an organization and how we want to try to manage to produce risk-adjusted returns consistent with the business model we've established for Clearway Energy, Inc., that kind of structure just sort of felt like it did not need to be part of how we commercialize the projects that we've built over the last few years.

Speaker Change: Sort of felt like it did not need to be part of how we commercialize the projects that we've built over the last few years and I think as we go forward, we want to be responsive to the de carbonization goals that all of our customers have including customers from the technology community wall.

Craig Cornelius: And I think as we go forward, we want to be responsive to the decarbonization goals that all of our customers have, including customers from the technology community, while managing a basket of projects that each individually stand on their own.

Well managing a basket of projects that each individually stand on their own. So I think we want to be thoughtful about innovation, while being careful about risk and you know leverage the capabilities that we have clear when it happened and those together what are the reasons why we've structured the projects the way we have so far.

Sarah Rubenstein: I think we want to be thoughtful about innovation while being careful about risk and leverage the capabilities that we as Clearway have. Those together were the reasons why we've structured projects the way we have so far.

Craig Cornelius: I think we want to be thoughtful about innovation while being careful about risk and leverage the capabilities that we as Clearway have. Those together were the reasons why we've structured projects the way we have so far.

Angie Storozynski: Okay. And then changing topics, you guys are adding batteries to a number of projects. How about adding energy storage to your gas peakers in California? Is that even a consideration?

Speaker Change: Okay, and then changing topics.

Speaker Change: You guys are adding batteries to.

Speaker Change: Number of project, how without adding energy storage to speaker pickers in California.

Speaker Change: Is that even a consideration.

Sarah Rubenstein: We have evaluated it. There is adjacent acreage at a few of our facilities that could allow us to think about doing different kinds of things, but there's not a tremendous amount of acreage. And the injection capacity at those points of interconnection is also somewhat limited. So in the immediate term, the highest and best use of that injection capacity is the delivery of resource adequacy that can meet 24-hour slice-of-day requirements from our thermal resources. And the addition of batteries to supplement that would be feasible in terms of grid injection and maybe not the highest and best use of that interconnection. But we have adjacent acreage that's modest that over time we'll try to find a way to leverage somehow.

Craig Cornelius: We have evaluated it. There is adjacent acreage at a few of our facilities that could allow us to think about doing different kinds of things, but there's not a tremendous amount of acreage. And the injection capacity at those points of interconnection is also somewhat limited.

Speaker Change: We have we are we have evaluated it there is adjacent acreage at a few of our facilities that could allow us to think about doing different kinds of things, but there's not a tremendous amount of acreage.

Speaker Change:

Speaker Change: And the injection capacity at those are those points of interconnection is also somewhat limited.

Craig Cornelius: So in the immediate term, the highest and best use of that injection capacity is the delivery of resource adequacy that can meet 24-hour slice-of-day requirements from our thermal resources. And the addition of batteries to supplement that would be feasible in terms of grid injection and maybe not the highest and best use of that interconnection. But we have adjacent acreage that's modest that over time we'll try to find a way to leverage somehow.

Speaker Change: So.

In the immediate term the highest and best use of that injection capacity is good delivery of resource adequacy that can meet 24 hour.

Speaker Change: Slice of data requirements from our thermal resources.

And the addition of batteries to supplement that with.

Speaker Change: It would be and feasible in terms of grid injection and maybe not the highest and best in yourself that interconnection, but we have adjacent acreage that you know that.

Speaker Change: It's modest but over time, we'll try to find a way to leverage somehow.

Operator: Thank you. Please stand by for our next question. Our next question comes from the line of Mark Jarvi with CIBC. Your line is open.

Speaker Change: Thank you.

Speaker Change: Please standby for our next question.

Speaker Change: Our next question comes from the line of Mark Jarvi with CIBC. Your line is open.

Mark Jarvi: Yeah. Good morning, everyone. Thanks for the time and fitting me in here. I was wondering if you could maybe just parse apart. We've had some discussions on the call about capital deployment growth versus some organic drivers on RA and asset optimizations. If you think out maybe the longer-term growth rate of 5% to 8%, how would you make that split between what's sort of organic drivers versus capital deployment-driven?

Yeah. Good morning, everyone and thanks for the time and fitting me in here I was wondering if you maybe just parse apart we've had some discussion on the call about the <unk>.

Speaker Change: Appointment growth versus some organic drivers on our a and asset optimization. If you think of me.

Speaker Change: The longer term growth rate of five 8% how would you make that split between what's sort of organic drivers versus capital deployment driven.

Sarah Rubenstein: I think once we get beyond sort of the goal of $2.60 per share that we set at the top end of the range, driving above that will be driven in particular or principally by additional investment. I think that there will be ways that we look to leverage the existing fleet of assets that we own within CWEN as part of making that growth investment, say, in particular through repowerings, which could take the same individual assets CAFD contribution relative to, say, the top end of that $2.60 in CAFD per share and increase it or could help sustain the CAFD generation of a project that is maturing in its age.

Craig Cornelius: I think once we get beyond sort of the goal of $2.60 per share that we set at the top end of the range, driving above that will be driven in particular or principally by additional investment. I think that there will be ways that we look to leverage the existing fleet of assets that we own within CWEN as part of making that growth investment, say, in particular through repowerings, which could take the same individual assets CAFD contribution relative to, say, the top end of that $2.60 in CAFD per share and increase it or could help sustain the CAFD generation of a project that is maturing in its age.

Speaker Change: You know I think once we get beyond.

Speaker Change: Sort of the goal of $2 60 per share that we set at the top end of the range.

Speaker Change: Driving above that will be driven in particular are principally by Hum additional investment.

Speaker Change:

Speaker Change: That there will.

Speaker Change: We'll be ways that we look to leverage the existing fleet.

Speaker Change: Fleet of assets that we own with them. So you win.

Speaker Change: As part of making that growth investment St and.

Speaker Change: The repowering.

Speaker Change:

Speaker Change: Which could take the same individual assets cafe contribution relative to say the top end of that $2 60 and taxi per share.

Speaker Change: And increase it or it could help sustain the cap the generation.

Speaker Change: Of a of a project it.

Speaker Change: You know it's maturing in its age.

Sarah Rubenstein: But in general, I think as we look to grow beyond 260 in CAFD per share into the out years and we look at that compounding 5% to 8% CAFD per share plus growth goal, most of that growth will be driven by additional capital commitments, which, again, I think we would make only to the extent that the investment and the cost of funding that investment would be accretive on a CAFD per share basis. And when we look at our planning horizon beyond 2027, we see very clearly how we'll be able to do that.

Craig Cornelius: But in general, I think as we look to grow beyond 260 in CAFD per share into the out years and we look at that compounding 5% to 8% CAFD per share plus growth goal, most of that growth will be driven by additional capital commitments, which, again, I think we would make only to the extent that the investment and the cost of funding that investment would be accretive on a CAFD per share basis. And when we look at our planning horizon beyond 2027, we see very clearly how we'll be able to do that.

Speaker Change: But in general I think as we look to grow beyond $2 60, and cap deeper share into the out years and yeah.

Speaker Change: Look at that compounding, 5% to 8% per share plus growth goal most of that growth will be driven by.

Additional capital commitments.

Speaker Change: Which again I think we would we would make only to the extent that the investment and the cost of funding that investment would be accretive on an <unk> per share basis and when.

Speaker Change: When we look at our planning horizon beyond 2027, we see very clearly, how we'll be able to do that.

Mark Jarvi: And then, Craig, coming back to a couple of your comments on internal financing capabilities, at what point would you think you would exhaust that $300 million of corporate debt capacity? Is that by 2027? And then were you saying at one point that you think you could grow without additional equity close to the low end of the 5% to 8% range?

Speaker Change: And then Craig coming back a couple of your comments on an internal financing capabilities at what point would you think you would exhaust that $300 million of corporate debt capacity is that by 2027, and then were you saying at one point that you think you could grow without issuing equity close to the low end of the 5% to 8% range.

Sarah Rubenstein: I think what we said is we can execute to the midpoint of the 240 to 260 per share range, call it 250, without issuing equity. In terms of growing beyond the top-end 260 per share at 5% to 8% beyond that, that is why we wanted to articulate that at some point, growth in the business model will entail routine amounts of equity issuance. But as the fleet-based CAFD level grows over time, then the company's debt capacity should also grow. So the $300 million, which Sarah had cited, reflects debt capacity that we have for funding investments between now and the end of 2027 conservatively. The amount of incremental debt capacity we'd have out of 2027 while still also driving towards that low end of the 4 to 4.5 leverage ratio would be meaningful as the CAFD of our base fleet itself grows.

Craig Cornelius: I think what we said is we can execute to the midpoint of the 240 to 260 per share range, call it 250, without issuing equity. In terms of growing beyond the top-end 260 per share at 5% to 8% beyond that, that is why we wanted to articulate that at some point, growth in the business model will entail routine amounts of equity issuance.

Speaker Change: I think what we said is we can execute to the midpoint of the $2 40 to $2 60 per share range call. It $2 50 without issuing equity.

Speaker Change:

Speaker Change: In terms of growing beyond the.

Speaker Change: The top end $2 60 per share.

Speaker Change: 5% to 8% beyond that.

Speaker Change: There that that is why we wanted to articulate that at some point growth in the business model wouldn't tell routine amounts of equity issuance, but as the as the fleets based Kathy level grows over time than the company's debt capacity should also grow.

Craig Cornelius: But as the fleet-based CAFD level grows over time, then the company's debt capacity should also grow. So the $300 million, which Sarah had cited, reflects debt capacity that we have for funding investments between now and the end of 2027 conservatively. The amount of incremental debt capacity we'd have out of 2027 while still also driving towards that low end of the 4 to 4.5 leverage ratio would be meaningful as the CAFD of our base fleet itself grows.

Speaker Change: So the $300 million, which head sided.

Speaker Change: Reflects debt capacity that we have for funding investments between now.

Speaker Change: And the end of 2027 conservatively.

Speaker Change: And the amount of incremental debt capacity, we'd have the out of 2027, while still also are.

Speaker Change: Driving towards that low end of the four to four and a half leverage ratio would be meaningful.

Speaker Change: As the.

Sarah Rubenstein: And so that's why we would look from a funding perspective to first the amount of retained CAFD that we have to reinvest, which, as she had noted, could run to sort of the low $200s or high $100s in any given year. Then to that leverage capacity, which we would look to manage in a way that's prudent, and then eventually equity issuance through something like an ATM at modest quantities for this kind of routine investment program that would hit the kind of goals that we've articulated. So I think that maybe gives you the calibration that you're looking for.

Speaker Change: That's a copy of the art basically itself grows and so that's why we would look from a funding perspective, the first female.

Speaker Change: A butane captains at the App to reinvest which is it.

Speaker Change: Could run into that sort of a low two hundreds.

Speaker Change: Or high one hundreds in any given year.

Speaker Change:

Speaker Change: And and then to that leverage capacity, which we would look to manage in a way that is prudent and then eventually equity issuance through something like an ATM at modest quantities for this kind of routine investment program that would hit the kind of goals that we've articulated so.

Speaker Change:

Speaker Change: So I think that maybe gives you the calibration that youre looking for.

Operator: Thank you. Ladies and gentlemen, I'm showing no further questions in the queue. I would now like to turn the call back over to Craig for closing remarks.

Speaker Change: Thank you.

Speaker Change: Ladies and gentlemen, I'm showing no further questions in the queue I would now like to turn the call back over to Craig for closing remarks.

Sarah Rubenstein: Great. Thank you, everyone, for joining us today and for your ongoing support of Clearway Energy, Inc. We're looking forward to continuing to demonstrate to you our leading market position and solid execution and are really optimistic about what the days ahead have in store for our company as we move onward. Operator, you can close the call.

Craig Cornelius: Great. Thank you, everyone, for joining us today and for your ongoing support of Clearway Energy, Inc. We're looking forward to continuing to demonstrate to you our leading market position and solid execution and are really optimistic about what the days ahead have in store for our company as we move onward. Operator, you can close the call.

Great.

Craig: Thank you everyone for joining us today and for your ongoing support of Clearway Energy Inc.

Craig: We're looking forward to continuing to demonstrate to you our leading market position and solid execution.

Craig: And I'm really optimistic about what the days ahead have in store for our company as we move onward, operator, you can close the call.

Operator: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect. Hello and welcome to Clearway Energy, Inc.'s Q3 2024 Earnings 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 the question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. I will now like to hand the conference over to Akil Marsh. Sir, you may begin.

Speaker Change: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation you may now disconnect.

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Speaker Change: Hello, and welcome to Clearway Energy, Inc. Third quarter 2024 earnings call.

Speaker Change: At this time all participants are in a listen only mode. After.

Speaker Change: 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.

Speaker Change: You will then hear automated message advising your hand is raised to withdraw your question. Please press star one again.

Speaker Change: Now I'd like to hand, the conference over to Akil Marsh, Sir you may begin.

Akil Marsh: Good morning. Thank you for taking the time to join Clearway Energy, Inc.'s Q3 call. With me this morning are Craig Cornelius, the company's president and CEO, and Sarah Rubenstein, the company's CFO. 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. In addition, we will refer to both GAAP and non-GAAP financial measures. For more information regarding our non-GAAP financial measures and reconciliations to the most directly comparable GAAP measures, please refer to today's presentation.

Akil Marsh: Good morning, Thank you for taking the time to join Clearway Energy, Inc. Third quarter call with me. This morning are Craig Cornelius the company's president and CEO and <unk> the company's CFO.

Akil Marsh: 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.

Akil Marsh: Actual results may differ materially.

Akil Marsh: Please review the Safe Harbor in today's presentation as well as the risk factors in our SEC filings.

Akil Marsh: In addition, we will refer to both GAAP and non-GAAP financial measures for more information regarding our non-GAAP financial measures and a reconciliation to the most directly comparable GAAP measures. Please refer to today's presentation in.

Akil Marsh: In particular, please note that we will refer to both offer and committed transactions in todays oral presentation and also may discuss such transactions. During the question and answer portion of today's conference.

Akil Marsh: Please refer to the safe Harbor in today's presentation for a description of the categories of potential transactions and related risks contingencies and uncertainties.

Speaker Change: With that I'll hand, it over to Craig.

Craig Cornelius: Thanks, <unk> turning to slide four.

Craig Cornelius: Today, we're pleased to report that we've completed another solid quarter of execution that we are on track to meet or exceed our key 2024 financial objectives, and then we have a strong outlook for clear rates future.

Craig Cornelius: In addition to reporting on our strong performance this year.

In today's call, we will provide you with guidance for our key financial expectations for 2025.

Craig Cornelius: Well articulated longer term goals for 2026 and 2027.

Craig Cornelius: And we will outline the capital allocation framework, we intend to employ as we go forward.

Our financial results for the quarter demonstrated another quarter of strong performance in our diversified fleet.

Craig Cornelius: <unk> us to $385 million of Kathy and the year to date and putting us in a great position to meet or exceed our 2020 for guidance.

Craig Cornelius: We are especially proud of the great work our team has done to run safely and improve the operations of our fleet over the last three quarters.

Craig Cornelius: Ever vigilant, we are pleased to say that we achieved our best ever safety key performance indicators in the first three quarters of the year and then we have also driven meaningful improvement in plant availability and conversion efficiency in comparison to the prior year.

Craig Cornelius: In conjunction with this strong quarter of performance, we've also announced a fourth quarter dividend in line with our commitment for 7% EPS growth in 2024.

Craig Cornelius: Looking ahead, we are pleased to report that we've continued to advance the growth of our fleet, concluding an investment commitment for the Pine Forest solar and storage project and having received an offer which is now under evaluation to invest in phase one of the honey come storage projects.

Craig Cornelius: As we advance these investment prospects and look ahead to further opportunities to come, we've continued to demonstrate our ability to methodically assemble accretive building blocks for our growth over time. Today, we are establishing our financial guidance for 2025. We're establishing CAFD guidance for 2025 at a midpoint of $420 million and establishing our dividend target for the year at $1.76 per share in line with our previously articulated commitment for 2025 DPS. We are also reaffirming our intention to target dividend per share growth in 2026 at 6.5%, fulfilling our prior commitments.

Craig Cornelius: As we advance these investment prospects and look ahead to further opportunities to come we've continued to demonstrate our ability to methodically assemble accretive building blocks for our growth over time.

Craig Cornelius: Today, we are establishing our financial guidance for 2025.

Craig Cornelius: We're establishing cap the guidance for 2025, and a midpoint of $420 million and establishing our dividend target for the year at $1 76 per share in line with our previously articulated commitment for 2025 bps.

Craig Cornelius: We are also reaffirming our intention to target dividend per share growth in 2026 at six 5% fulfilling our prior commitments.

Craig Cornelius: Though our guidance for fiscal year 2026 would be issued at this time next year, we look forward to delivering that future DPS growth in a prudent capital structure, supported by the full-year cash fee contribution from committed growth investments that will be funded over 2025 and the progressive increase in revenues that should be delivered by our fleet. Finally, we are setting a next set of goals and updating our capital allocation framework for the future. Looking ahead to 2027, we will be targeting cash fee per share of $2.40 to 2.60, a range which represents a solid growth trajectory extension of approximately 7.5% to 12%, compounded annual growth from the midpoint of our 2025 guidance, reflecting the strengthening trajectory of our core asset base and our accretive growth investment prospects.

Craig Cornelius: So our guidance for fiscal year 2026 would be issued at this time next year, we look forward to delivering that future dps growth and a prudent capital structure.

Craig Cornelius: <unk> by the full year Kathy contribution from committed growth investments that will be funded over 2025, and the progressive increase in revenues that should be delivered by our fleet.

Craig Cornelius: Finally, we are setting a next set of goals and updating our capital allocation framework for the future. Looking ahead to 2027, we will be targeting cash fee per share of $2.40 to 2.60, a range which represents a solid growth trajectory extension of approximately 7.5% to 12%, compounded annual growth from the midpoint of our 2025 guidance, reflecting the strengthening trajectory of our core asset base and our accretive growth investment prospects.

Craig Cornelius: Finally, we are setting our next set of goals and updating our capital allocation framework for the future.

Craig Cornelius: Looking ahead to 2027, we will be targeting copy per share of $2 40 to $2 60, a range, which represents a solid growth trajectory extension of approximately 705% to 12%.

Craig Cornelius: Compounded annual growth from the midpoint of our 2025 guidance, reflecting the strengthening trajectory of our core asset base and our accretive growth investment prospects.

Craig Cornelius: From this position of strength, we will aim to fund more of our growth from retained cash flow targeting a payout ratio in 2027 within 70% to 80% while also growing our dividend at a competitive pace with a targeted dividend per share growth rate in the bottom half of our historical 5% to 8% range in 2027.

Craig Cornelius: In concert with setting these goals. We're also refreshing our capital allocation framework to one that we believe will provide investors with enhanced visibility into long term predictable capture your per share growth.

Craig Cornelius: Beyond our strong CAFD per share growth roadmap into 2027, we will aim to achieve a long-term goal of 5% to 8% plus in CAFD per share growth in the long term, and importantly, we'll aim to effectuate that growth with a greater reliance on our own cash flow generation, increasing the fraction of our internal cash flow we reinvest in growth over time, deploying capital in a way that is accretive, and raising capital in a way that is prudent and predictable. I'll discuss this refreshed framework in detail later in the presentation. In summary, Clearway continues to execute well, and we are excited to continue to deliver long-term accretive growth to you, our valued stakeholders. Turning to slide five.

Craig Cornelius: Beyond our strong cap D per share growth roadmap into 2027, we will aim to achieve a long term goal of 5% to 8% plus and <unk> per share growth in low long term and importantly will aim to effectuate that growth with a greater reliance on our own cash flow generation <unk>.

Craig Cornelius: Increasing the fraction of our internal cash flow, we reinvest in growth over time deploying capital in a way that is accretive and raising capital in a way that is prudent and predictable.

Craig Cornelius: Ill discuss this refreshed framework in detail later in the presentation.

Craig Cornelius: In summary, clearway continues to execute well and we are excited to continue to deliver long term accretive growth to you our valued stakeholders.

Craig Cornelius: During the last quarter, we made solid steps forward on value accretive growth, as is evident by the completion of our investment commitment to Pine Forest on attractive terms and received a formal offer for Honeycomb phase one, which is now under review. As a refresher, the Pine Forest Solar Plus Storage complex will be a complementary addition to our fleet in the fast-growing ERCOT power market. Its solar capacity has been fully contracted for an average of approximately 20 years at strong pricing and settlement terms, the majority contracted with a leading information technology company. Its batteries will complement our existing fleet of assets in ERCOT, and together, these will be beneficial additions to our fleet. We aim to fund the investment by the end of 2025. We're also pleased to announce that CWEN received an offer for phase one of the Honeycomb Battery Hybridization Program.

Craig Cornelius: Turning to slide five.

Craig Cornelius: During the last quarter, we made solid steps forward on value accretive growth as is evidenced by the completion of our investment commitment to pine forest on attractive terms and received a formal offer for honeycomb phase one which is now under review.

Craig Cornelius: As a refresher the pine forest solar plus storage complex will be a complementary addition to our fleet in the fast growing our power market.

Craig Cornelius: Its solar capacity has been fully contracted for an average of approximately 20 years at strong pricing and settlement terms, the majority contracted with a leading information technology company. Its batteries will complement our existing fleet of assets in ERCOT, and together, these will be beneficial additions to our fleet. We aim to fund the investment by the end of 2025. We're also pleased to announce that CWEN received an offer for phase one of the Honeycomb Battery Hybridization Program.

Craig Cornelius: It's solar capacity has been fully contracted for an average of approximately 20 years at strong pricing in settlement terms. The majority contracted with a leading information technology company.

Craig Cornelius: It's batteries will complement our existing fleet of assets in ERCOT and together these will be beneficial additions to our fleet. We aim to fund the investment by the end of 2025.

Craig Cornelius: We're also pleased to announce that <unk> received an offer for phase one of the honeycomb battery hybridization program.

Craig Cornelius: As you'll recall, Clearway Group is developing and building a family of contracted battery assets adjacent to CWEN's existing fleet of solar projects in Utah. Subject to CWEN's independent director approval, CWEN has the opportunity to invest approximately $85 million in corporate capital at an approximately 10% cash fee yield into the projects and to fund this investment in 2026. Sarah will discuss the company's liquidity position more in her section, but both Pine Forest and Honeycomb are expected to be funded with existing sources of existing liquidity. Turning to slide 6.

Craig Cornelius: As Youll recall Clearway group is developing and building a family of contracted battery assets adjacent to <unk> existing fleet of solar projects in Utah.

Craig Cornelius: Subject to see wins independent director approval.

Craig Cornelius: And have the opportunity to invest approximately $85 million in corporate capital at an approximately 10% cap to yield into the projects and to fund this investment in 2026.

Speaker Change: Sarah will discuss the company's liquidity position more in her section, but both pine forest and honeycomb are expected to be funded with existing sources of existing liquidity.

Craig Cornelius: Along with the improvements we've made to our fleet this year, growth investments like these have allowed us to build an excellent foundation for achieving the goals we are now setting for 2027, starting from our previously disclosed pro forma cash fee per share of $2.15 and then taking into account the commitment to Pine Forest and updated levelized assumptions for resource adequacy capacity revenues in our conventional fleet. Our existing asset-based and committed investments set us up to target at least $2.40 per share in cash fee in 2027, constituting the bottom end of the range we're targeting for cash fee per share in the year. First, by 2027, Pine Forest will add to the other previously committed investments that underpinned our prior pro forma cash fee per share expectation.

Speaker Change: Turning to slide six.

Speaker Change: Along with the improvements we've made to our fleet. This year growth investments like these have allowed us to build an excellent foundation for achieving the goals. We are now setting for 2020.

Speaker Change: Starting from our previously disclosed pro forma cafe per share of $2 15.

Speaker Change: And then taking into account the commitment to pine forest and updated level life assumptions for resource adequacy capacity revenues in our conventional fleet.

Craig Cornelius: Our existing asset-based and committed investments set us up to target at least $2.40 per share in cash fee in 2027, constituting the bottom end of the range we're targeting for cash fee per share in the year. First, by 2027, Pine Forest will add to the other previously committed investments that underpinned our prior pro forma cash fee per share expectation.

Speaker Change: Our existing asset base and committed investments set us up to target at least $2 40 per share and Kathy in 2027.

Speaker Change: Constituting the bottom end of the range, we're targeting for <unk> per share in the year.

Speaker Change: First by 2027 Pine Forest will add to the other previously committed investments that underpinned our prior pro forma <unk> per share expectation.

Craig Cornelius: Beyond that contribution, our fleet improvement program, the results of which are evident in our strengthened results in 2024 year to date, adds further to our 2027 outlook. Finally, our outlook for RA capacity revenues has also strengthened as we have executed on our power marketing program this year. With the contracted position we've already established for 2027, combined with RA pricing trends we're observing in current customer engagements, we are confident that the RA pricing assumption embedded within our 2027 target range is achievable relative to where we are executing today. Indeed, that strength now lets us look to build up from the bottom end of the range at $2.40 in cash fee per share to higher levels within an accretive capital allocation framework which we'll outline later in our call.

Speaker Change: Beyond that contribution our fleet improvement program the results of which are evident in our strengthened results in 2024 year to date, adding further to our 2027 outlook.

Speaker Change: Finally, our outlook for raw capacity revenues has also strengthened as we have executed on our power marketing program this year with.

Craig Cornelius: With the contracted position we've already established for 2027, combined with RA pricing trends we're observing in current customer engagements, we are confident that the RA pricing assumption embedded within our 2027 target range is achievable relative to where we are executing today. Indeed, that strength now lets us look to build up from the bottom end of the range at $2.40 in cash fee per share to higher levels within an accretive capital allocation framework which we'll outline later in our call.

Speaker Change: With the contracted position we've already established for 2027 combined with Ari pricing trends, we're observing in current customer engagements. We are confident that the pricing assumption embedded within our 2027 target range is achievable relative to where we are executing today.

Speaker Change: Indeed that strength now, let us look to build up on the bottom end of the range at $2 40, <unk> per share to higher levels within an accretive capital allocation framework, which will outline later in our call.

Craig Cornelius: With that, I'll turn it over to Sarah to provide a summary of our key financial results for the quarter. Over to you, Sarah.

Speaker Change: With that I'll turn it over to Sarah to provide a summary of our key financial results for the quarter over to you Sarah.

Sarah Rubenstein: Thanks, Craig. On slide 8, we provide an overview of our financial results, which includes Q3 adjusted EBITDA of $354 million and CAFD of $146 million. The Q3 results reflect renewable production in line with overall fleet estimates as well as solid conventional availability, and expected results from growth investments. Based on our year-to-date results with adjusted EBITDA of $918 million and CAFD of $385 million, we are reaffirming our full-year 2024 CAFD guidance of $395 million. The Q4 represents a smaller relative contribution to CAFD based on seasonality of cash flows, and assuming P50 median renewable energy production for the Q4, the company is well positioned to meet or exceed its 2024 CAFD guidance. Turning to slide 9, the company is initiating 2025 CAFD guidance with an expected range of $400 to 440 million and a midpoint of $420 million.

Thanks, Craig.

Sarah: Slide eight we provide an overview of our financial results, which includes third quarter, adjusted EBITDA of $354 million and Kathy at $146 million.

Sarah: Third quarter results reflect renewable production in line with overall three estimates as well as solid conventional availability and expected results from growth investments.

Sarah Rubenstein: Based on our year-to-date results with adjusted EBITDA of $918 million and CAFD of $385 million, we are reaffirming our full-year 2024 CAFD guidance of $395 million. The Q4 represents a smaller relative contribution to CAFD based on seasonality of cash flows, and assuming P50 median renewable energy production for the Q4, the company is well positioned to meet or exceed its 2024 CAFD guidance. Turning to slide 9, the company is initiating 2025 CAFD guidance with an expected range of $400 to 440 million and a midpoint of $420 million.

Sarah: Based on our year to date results with adjusted EBITDA of $918 million and Kathy at $385 million, we are reaffirming our full year 2020 for Kathy guidance at $395 million.

The fourth quarter represents a smaller relative contribution to cash D. Based on seasonality of cash flows and assuming <unk> median renewable energy production for the fourth quarter. The company is well positioned to meet or exceed its 2020 forecast guidance.

Sarah: Turning to slide nine the company is initiating 2025, Kathy guidance with an expected range of $400 million to $440 million and the midpoint of $420 million.

Sarah: Moving forward from our 2020 for Kathy guidance of $395 million or 2025, Kathy guidance range reflects the recent execution of the capistrano refinancing, which increases principal and interest payments by approximately $10 million.

Sarah: The 2025, Kathy guidance range also reflects the completion of fleet improvement projects that were previously disclosed impacting our 2020 for guidance and also reflects the full impact of Kathy contributions from previously funded investments that are now contributing fully to kathie Lee.

Sarah: Elected to establish a range for Kathy guidance that reflects PTSD renewable production expectations at the midpoint with the upper and lower end of the range, reflecting variability in potential outcomes for resource availability and NRG margin pricing.

Sarah: In addition, the completion of committed growth investments on the currently forecasted schedules are reflected within the guidance range.

Sarah Rubenstein: As Craig previously discussed, we expect to fund investments in the Pine Forest and Honeycomb projects in the second half of 2025 and 2026, respectively. To fund those offers as well as to fund future growth investments, we will employ our prudent capital allocation framework, which we outline in further detail on slide 10. We expect to be able to utilize retained cash fee as a primary source of capital, targeting retained cash fee of approximately $220 million accumulated over 2025 through 2027 based on the low end of our cash fee per share growth outlook. Beyond 2027, we will target maintaining a lower payout ratio of 70% to 80% in order to retain incremental cash fee while also prioritizing our other capital allocation targets.

As Greg previously discussed we expect to fund investments in the Pine Forest and honeycomb project in the second half of 2025 and 2026, respectively.

Sarah: To fund those offers as well as to fund future growth investments, we will employ our prudent capital allocation framework, which we outline in further detail on slide 10.

Sarah Rubenstein: We expect to be able to utilize retained cash fee as a primary source of capital, targeting retained cash fee of approximately $220 million accumulated over 2025 through 2027 based on the low end of our cash fee per share growth outlook. Beyond 2027, we will target maintaining a lower payout ratio of 70% to 80% in order to retain incremental cash fee while also prioritizing our other capital allocation targets.

Sarah: We expect to be able to utilize retained Kathy as a primary source of capital targeting retained Kathy of approximately 220 million accumulated over 2025 through 2027 based on the low end of our cafe per share growth outlook.

In 2027, we will target maintaining a lower payout ratio of 70% to 80% in order to retain incremental Kathy while also prioritizing our other capital allocation target.

Sarah Rubenstein: We anticipate having excess corporate debt capacity based on our credit metrics calculated using the low end of our target cash fee per share numbers for 2027 that would potentially allow for excess debt capacity of over $300 million, which we could utilize to fund growth, including the approximately $300 million of growth capital required for dropdowns or M&A to enable sufficient cash fee growth to meet our 2027 cash fee per share target. Our revolving credit facility, which is largely undrawn, remains a key interim source of liquidity for the company. While we won't require external equity to fund the current identified opportunities to drive growth, our long-term vision anticipates the modest periodic issuance of equity to fund growth when growth investments and the equity issuance required to capitalize them are anticipated to be accretive and create long-term value for CWEN.

Sarah: We anticipate having excess corporate debt capacity based on our credit metrics calculated using the low end of our target Kathy per share numbers for 2027 that would potentially allow for excess debt capacity of over 300 million, which we could utilize to fund growth, including the approximately 300 million.

Of growth capital required for Dropdowns or M&A to enable sufficient Kathy growth to meet our 2027 Kathy per share target.

Sarah: Our revolving credit facility, which is largely undrawn remains a key interim source of liquidity for the company.

Sarah: While we won't require external equity to fund the current identified opportunities to drive growth our long term vision anticipates, the modest periodic issuance of equity to fund growth when growth investments and the equity issuance required to capitalize them are anticipated to be accretive and create long term value proceed.

Sarah Rubenstein: To restate our long-term funding framework, we will look to maximize cash fee per share, net of the cost of financing, while also assuring that an investment meets its long-term metrics aligned with its underwriting criteria. Our plan to source corporate growth capital is first from retained cash fee, second with excess corporate debt capacity in line with our target BB rating, and third, we may look to issue external equity to fund investments to the extent such investment would be sufficiently accretive to shareholders. We also recognize that we have $2.1 billion of corporate bonds maturing in 2028, 2031, and 2032 that we will need to refinance within the timeframe for our longer-term goals. We will maintain a prudent approach to these refinancing activities and will reflect any meaningful impacts to our future year-specific cash fee per share targets as we move into the future.

Sarah: Brian.

Brian: To restate, our long term funding framework, we will look to maximize cafe per share net of the cost of financing.

Brian: So ensuring that an investment needs as long term metrics aligned with its underwriting criteria are.

Brian: Our plan to source corporate growth capital is first from retained Kathy second with excess corporate debt capacity in line with our target double B rating and third we may look to issue external equity to fund investments to the extent such investment would be sufficiently accretive to shareholders.

Brian: Also recognize that we had $2 1 billion of corporate bonds maturing in 2028 2031 in 2032 that we will need to refinance within the timeframe for our longer term goals.

We'll maintain a prudent approach to these refinancing activities and we will reflect any meaningful impact to our future year specific cafe per share targets as we move into the future.

Sarah Rubenstein: Now, I will turn it back to Craig to provide further detail about the company's plans for longer-term growth and capital allocation.

Speaker Change: Now I will turn it back to Craig to provide further detail about the company's plans for longer term growth and capital allocation.

Craig Cornelius: Thanks Sarah.

Given the robust asset base and capital structure, we have prudently built pursue went over time and the capabilities, we have at our disposal within the broader clearway enterprise.

Craig Cornelius: Our organization is confident and clear eyed as we now set and pursue ambitious but <unk> goals for the future starting first with our 2027 target of $2 40 to $2 60 <unk> per share.

Craig Cornelius: Let's talk now about how we will get there.

Craig Cornelius: From the 2025 mid point of guidance. As described previously are already committed growth investments fleet improvements and enhanced capacity revenues, but clearly on a path to achieve the bottom end of our 2027 target range. Additionally.

Craig Cornelius: Additionally, clearway group's abundant pipeline and leading execution capabilities matched with the financial flexibility <unk> has to invest based on Sarah's description provides another leg for further accretive growth for <unk>.

Craig Cornelius: Putting that to numbers, Clearway Group's vintage of projects targeting COD in 2026 constitute an investment opportunity of approximately $300 million in potential corporate capital, a sum which could be potentially funded by CWIN over time via incremental corporate debt capacity and retained earnings alone. This, combined with further portfolio improvements, could enable us to reach the upper end of our targeted 2027 cash fee per share range. So while there is much work ahead for these projects to advance, and as always, CWIN will need to evaluate any dropdown projects offered or third-party M&A opportunities considered for alignment with its investment requirements, we see how we can get from here to the high end of our 2027 cash fee per share range if we execute on these building blocks and continue to operate our portfolio with excellence in typical resource and market conditions. Turning to slide 13.

Craig Cornelius: Putting that into numbers clearway group's vintage of projects targeting <unk> in 2026 constitute an investment opportunity of approximately $300 million in potential corporate capital.

Craig Cornelius: Assam, which could be potentially funded by C ran and overtime by incremental corporate debt capacity and retained earnings alone.

Craig Cornelius: This combined with further portfolio improvements could enable us to reach the upper end of our targeted 2027 cap your per share range.

Craig Cornelius: So while there is much work ahead for these projects to advance, and as always, CWIN will need to evaluate any dropdown projects offered or third-party M&A opportunities considered for alignment with its investment requirements, we see how we can get from here to the high end of our 2027 cash fee per share range if we execute on these building blocks and continue to operate our portfolio with excellence in typical resource and market conditions. Turning to slide 13.

Craig Cornelius: So while there is much work ahead for these projects to advance and as always see when we will need to evaluate any dropdown projects offered or third party M&A opportunities.

Craig Cornelius: <unk> for alignment with its investment requirements, we see how we can get from here to the high end of our 2027 cap per share range. If we execute on these building blocks and continue to operate our portfolio with excellence in typical resource and market conditions.

Craig Cornelius: To reinforce our confidence, we'll take a moment to highlight the ongoing progress in Clearway Group's late-stage pipeline as CWEN sponsor advances projects towards potential for future offers and dropdowns. First, Clearway Group has made investments that secure qualification for tax credits for projects across multiple COD vintages and technologies through 2028 and is establishing plans for Safe Harbor investments for the 2029 vintage. Furthermore, Clearway Group has continued to accumulate success in power marketing with a diverse customer set across power pools from the west to east coast, notably including engagement on 5 gigawatts of front-of-the-meter and co-located data center opportunities across multiple markets. The overall landscape of Clearway Group's origination progress attests to the locational value of its development assets and the attractiveness of Clearway's track record and is realizing PPA pricing that's trending up with PPA terms that are trending favorable.

Turning to slide 13.

Craig Cornelius: To reinforce our confidence we will take a moment to highlight the ongoing progress and unclear Rea group's late stage pipeline as <unk> sponsor advances projects towards potential for future offers and dropped out.

Craig Cornelius: First Clearway group has made investments that take care of qualification for tax credits for projects across multiple CODI vintages and technologies through 2028 and is establishing plans for safe Harbor investments for the 2029 vintage.

Craig Cornelius: Furthermore, Clearway group has continued to accumulate success and the power marketing with a diverse customer set across power pools from the west to east coast, notably, including engagement on five Gigawatts of front of the meter and co located data center opportunities across multiple markets.

Craig Cornelius: The overall landscape of Clearway group's array origination progress a test to the locational value of its development assets and the attractiveness of Clearway is track record and is realizing PPA pricing thats trending up with PPA terms that are trending favorable.

Craig Cornelius: Honing in more closely on the opportunity set of the 2026 and 2027 COD vintages, these projects could allow CWEN to invest at least $475 million of corporate capital beyond what CWEN has already committed to or been offered. Collectively, these potential corporate capital investments sum up to a total greater than what would be needed to achieve the upper end of the 2027 CAFD per share target of $2.60 that we have set today. Given the sizable advanced pipeline at Clearway Energy Group, Clearway Energy, Inc., is in the enviable position of having more than enough capital deployment opportunities to meet its growth investment objectives through 2027.

Craig Cornelius: Honing in more closely on the opportunity set of the 2026% in 2027 CODI vintages. These projects could allow us to invest at least $475 million of corporate capital beyond what <unk> has already committed to are been offered.

Craig Cornelius: Collectively these potential corporate capital investments some up to a total greater than what would be needed to achieve the upper end of the 2027 cap your per share target of $2 60 that we have set today.

Craig Cornelius: Given the sizable advanced pipeline at Clearway Energy Group, Clearway Energy, Inc., is in the enviable position of having more than enough capital deployment opportunities to meet its growth investment objectives through 2027.

Given the sizable advanced pipeline at Clearway Group Clearway Energy, Inc. Is in the enviable position of having more than enough capital deployment opportunities to meet its growth investment objectives through 2027.

Craig Cornelius: As it has demonstrated over many years, Clearway Group will continue to be thoughtful about the structuring and pace of growth opportunities offered to CWIN from this opportunity set, mindful of pacing and return requirements needed for investments to be feasible and accretive. Furthermore, we continue to selectively engage in asset-centered M&A opportunities which are right-sized and could be complementary to our fleet and see potential for pursuing targeted, value-accretive growth through those investments as well. Across all these capital allocation opportunities, the CWIN board and its independent directors will remain focused on selecting and negotiating investments so that they are accretive and consistent with its underwriting requirements. Turning to slide 14.

Craig Cornelius: As it has demonstrated over many years Clearway group will continue to be thoughtful about the structuring and pace of growth opportunities offered to <unk> from this opportunity set.

Craig Cornelius: Furthermore, we continue to selectively engage in asset-centered M&A opportunities which are right-sized and could be complementary to our fleet and see potential for pursuing targeted, value-accretive growth through those investments as well. Across all these capital allocation opportunities, the CWIN board and its independent directors will remain focused on selecting and negotiating investments so that they are accretive and consistent with its underwriting requirements. Turning to slide 14.

Mindful of pacing and return requirements needed for investments to be feasible and accretive.

Craig Cornelius: Furthermore, we continue to selectively engage in asset centered M&A opportunities, which are right sized and could be complementary to our fleet and see potential for pursuing targeted value accretive growth through those investments as well.

And across all of these capital allocation opportunities the <unk> board and its independent directors will remain focused on selecting and negotiating investments so that they are accretive and consistent with its underwriting requirements.

Craig Cornelius: When taking into account the CAFD per share target we've set for 2027 and what we see in front of us for long-term growth opportunities, we believe we've arrived at a sensible and value-accretive framework that allows us to deliver predictable growth, improve visibility into that growth, and that also pursues a lowered reliance on external equity issuance to achieve our long-term objectives. As previously mentioned, the growth we expect from our existing asset base through 2027 puts us in a position of strength to make sound decisions as we grow Clearway Energy, Inc. Post-2027, our business model will aim to achieve 5% to 8%+ growth in CAFD per share over time. Retained CAFD will provide an increasing source of growth capital as we will be targeting a 70% to 80% payout ratio with the aim to reach the low end of that range over time.

Craig Cornelius: Turning to slide 14.

Craig Cornelius: When taking into account the cap deeper share target, we've set for 2027 and what we see in front of us for long term growth opportunities. We believe we've arrived at a sensible and value accretive framework that allows us to deliver predictable growth.

Craig Cornelius: Improved visibility into that growth and then also pursues a lowered reliance on external equity issuance to achieve our long term objectives.

Craig Cornelius: As previously mentioned the growth we expect from our existing asset base through 2027 puts us in a position of strength to make sound decisions as we grow Clearway Energy Inc.

Craig Cornelius: Post 2000, Twenty's evidenced our business model will aim to achieve 5% to 8% plus growth in <unk> per share over time.

Craig Cornelius: Retained Cathy will provide an increasing source of growth capital as we will be targeting a 70% to 80% payout ratio with the aim to reach the low end of that range over time.

Craig Cornelius: As retained CAFD increases and the platform grows, we will aim to pursue investments that are accretive on a CAFD per share basis and that meet our underwriting criteria, allowing CWEN to deploy retained CAFD towards further extending and compounding its CAFD per share growth outlook. After retained CAFD, we will look to excess debt capacity in line with our target BB rating as a second source of funds. And as Sarah noted, our forward-looking leverage metrics position us well with additional excess debt capacity. The last piece of our funding framework will be external equity issuance.

Craig Cornelius: As retained cap the increases and the platform grows we will aim to pursue investments that are accretive on a cafe per share basis and that meet our underwriting criteria, allowing <unk> to deploy a retained kathy towards further extending and compounding it's cathy per share growth outlook.

Craig Cornelius: After retaining Kathy we will look to excess debt capacity in line with our target double B rating as a second source of funds.

Speaker Change: And as Sarah noted our forward looking leverage metrics position us well with additional excess debt capacity.

Craig Cornelius: While we don't need external equity to achieve the midpoint of our 2027 CAFD per share target, we do plan to eventually fund a portion of long-term routine growth by modest levels of equity issuance, but in a way that it is predictable, deliberate, disciplined, and focused on accretion. We will always be measured when evaluating the potential issuance of shares, and it will always be for investments that increase the amount of CAFD attributable to our investors' respective ownership on a per share basis. Indeed, even to achieve the top end of our base long-term growth objectives, our goals would call only for modest equity issuances that could be executed by an ATM targeting issuance of a small percentage of our public float, and without any immediate need for such issuance today.

Speaker Change: The last piece of our funding framework will be external equity issuance, while we don't need external equity to achieve the midpoint of our 2027 cap fee per share target. We do plan to eventually fund a portion of long term routine growth by modest levels of equity issuance, but in a way that it is predictable deliver.

Craig Cornelius: We will always be measured when evaluating the potential issuance of shares, and it will always be for investments that increase the amount of CAFD attributable to our investors' respective ownership on a per share basis. Indeed, even to achieve the top end of our base long-term growth objectives, our goals would call only for modest equity issuances that could be executed by an ATM targeting issuance of a small percentage of our public float, and without any immediate need for such issuance today.

Speaker Change: <unk> disciplined and focused on accretion.

Speaker Change: We will always be measured when evaluating the potential issuance of shares and there will always be for investments that increase the amount of cap the attributable to our investors respective ownership on a per share basis.

Speaker Change: Indeed, even to achieve the top end of our base long term growth objectives or goals would call only for modest equity issuances that can be executed by an ATM targeting issuance of a small percentage of our public float and without any immediate need for such issuance today.

Craig Cornelius: We like that this allows us to take our time, be selective with our moments for adding cash to our balance sheet via equity issuance, and to be deliberate and communicative with you about when we have reached a point in our growth capital investment program that this will begin to be part of it. Lastly, we continue to feel very confident about the commitments we've made and the choices we are making now about dividend goals for the future. First, we're affirming that we aim to make good on the commitments that CWEN has already made for growth and dividends through 2026. For 2027, we are targeting DPS growth at the bottom half of the range of 5% to 8%, which numerically translates to 5% to 6.5%, with the level we ultimately target being a function of our payout ratio goal of 70% to 80% for 2027.

Speaker Change: We like that this allows us to take our time.

Speaker Change: Be selective with our moments for adding cash to our balance sheet by equity issuance and to be deliberate and communicative with you about when we have reached a point in our growth capital investment program.

Craig Cornelius: Lastly, we continue to feel very confident about the commitments we've made and the choices we are making now about dividend goals for the future. First, we're affirming that we aim to make good on the commitments that CWEN has already made for growth and dividends through 2026. For 2027, we are targeting DPS growth at the bottom half of the range of 5% to 8%, which numerically translates to 5% to 6.5%, with the level we ultimately target being a function of our payout ratio goal of 70% to 80% for 2027.

This will begin to be part of.

Speaker Change: Lastly, we continue to feel very confident about the commitments, we've made and the choices, we are making now about dividend goals for the future.

Speaker Change: First we're affirming that we aim to make good on the commitments that <unk> has already made for growth and dividends through 2026 for 2027, and we are targeting dps growth at the bottom half of the range of 5% to 8%, which numerically translates to five to six 5% with the level we ultimately.

Speaker Change: Target being a function of our payout ratio goal of 70% to 80% for 2027.

Craig Cornelius: Beyond 2027, we'll be aiming to continue to pay and compound dividends per share in a way that is competitive in the marketplace for publicly listed infrastructure capital. As we compound our dividend, we'll be planning to do so while prioritizing our financial resilience, giving our shareholders the opportunity to participate in that growth by attractive dividends that we grow at a pace that is set by our actual CAFD per share growth and our payout ratio goals. The track record we have demonstrated over time in fulfilling the dividend commitments we make is something we are proud of, and we will aim to continue. Given the strength of our asset base, the prudence we've applied to our capital structure, and the growth prospects we have in front of us, we feel good about our ability to do that while growing accretively over time. Turning to slide 15.

Speaker Change: Beyond 2027, we'll be aiming to continue to pay and compound dividends per share in a way that is competitive in the marketplace for publicly listed infrastructure capital.

Speaker Change: As we compound our dividend will be planning to do so while prioritizing our financial resilience, giving our shareholders the opportunity to participate in that growth by attractive dividends that we grow at a pace that is set by our actual cafe per share growth and our payout ratio goals.

Speaker Change: The track record we have demonstrated over time in fulfilling the dividend commitments. We make is something we are proud of and we will aim to continue.

Speaker Change: Given the strength of our asset base, the prudence, we've applied to our capital structure and the growth prospects. We have in front of US we feel good about our ability to do that while growing accretively over time.

Craig Cornelius: To recap, Clearway is in an excellent position to meet our 2024 financial objectives and is well positioned to deliver on our previously communicated growth objectives through 2026. The 2027 cash fee per share target we've set provides for strong growth with a transparent path to deliver that growth via already committed investments, a demonstrated track record for fleet improvement and RA marketing, and advanced development stage opportunities at Clearway Group and the project M&A marketplace. And lastly, we have defined a roadmap for growth and capital allocation beyond 2027 in a way that we believe establishes a sustainable and attractive investment proposition for the shareholders of CWEN.

Turning to slide 15.

Speaker Change: To recap.

Speaker Change: Clearway is in an excellent position to meet our 2024, our financial objectives and is well positioned to deliver on our previously communicated growth objectives through 2026 the.

Speaker Change: The 2027 <unk> per share target. We've set provides for strong growth with a transparent path to deliver that growth.

Speaker Change: Already committed investments a demonstrated track record for fleet improvement in R&D marketing and advanced development stage opportunities that Clearway group and the project M&A marketplace and lastly, we have defined a roadmap for growth and capital allocation beyond 2027, and a way that we believe.

Establishes a sustainable and attractive investment proposition for the shareholders of Seaway.

Craig Cornelius: We will be a company that will be predictable in meeting its core financial goals, that will be enhancing that predictability via financial flexibility over time, that will be growing its core earnings in the form of CAFD at an attractive pace, and will be providing its shareholders the opportunity to continue to participate in that growth via a secure dividend. Together, we believe these pillars will position CWEN to deliver best-in-class risk-adjusted returns for our investors, and look forward to delivering that result to our investors in the years to come. We have much work ahead to be sure, but I could not be more enthused about the work our colleagues at Clearway have done to put us on such strong footing. We look forward to doing that work together and to what it will mean for you, our valued investors.

Speaker Change: We'll be a company that will be predictable and meeting its core financial goals that will be enhancing that predictability via financial flexibility over time.

Speaker Change: That will be growing its core earnings in the form of Kathy at an attractive pace and we will be providing our shareholders the opportunity to continue to participate in that growth.

Craig Cornelius: Together, we believe these pillars will position CWEN to deliver best-in-class risk-adjusted returns for our investors, and look forward to delivering that result to our investors in the years to come. We have much work ahead to be sure, but I could not be more enthused about the work our colleagues at Clearway have done to put us on such strong footing. We look forward to doing that work together and to what it will mean for you, our valued investors.

Speaker Change: Secure dividend.

Speaker Change: Together, we believe these pillars will position <unk> to deliver best in class risk adjusted returns for our investors and look forward to delivering that results to our investors in the years to come.

Speaker Change: We have much work ahead to be sure, but I could not be more enthused about the work our colleagues at clearway have done to put us on such a strong footing.

Speaker Change: Look forward to doing that work together and to what it will mean for you our valued investors operator, you may open the lines for questions.

Craig Cornelius: Operator, you may open the lines for questions.

Speaker Change: Thank you.

Ladies and gentlemen, as a reminder to ask a question. Please press star one on your telephone and wait for your name to be announced.

Speaker Change: To withdraw your question. Please press star one again.

Speaker Change: We ask that you limit yourself to one question and one follow up.

Please standby, while we compile the Q&A roster.

Speaker Change: Our first question comes from the line of Noah Kaye with Oppenheimer <unk> Company. Your line is open.

Craig Cornelius: So you've already touched on this a fair bit around the roadmap and the refreshed capital allocation strategy, but you did note in the deck that you had received a fair amount of feedback from financial stakeholders and investors. I'd just love to talk a little bit more about the process that you went through to set this framework. I mean, clearly still continuing to grow the dividend but retaining more capital to provide flexibility. Just talk a little bit about the process by which you reached this decision.

Noah Kaye: So you've already touched on this a fair bit around the roadmap and the refreshed capital allocation strategy, but you did note in the deck that you had received a fair amount of feedback from financial stakeholders and investors. I'd just love to talk a little bit more about the process that you went through to set this framework. I mean, clearly still continuing to grow the dividend but retaining more capital to provide flexibility. Just talk a little bit about the process by which you reached this decision.

Speaker Change: Yes.

Noah Kaye: So you've already touched on this a fair.

Noah Kaye: Fair bit.

Noah Kaye: Around the roadmap and the refresh capital allocation strategy, but you did note in the deck that.

You had received a fair amount of feedback from financial stakeholders and.

Noah Kaye: And investors.

Noah Kaye: And I just wanted to talk a little bit more about.

Noah Kaye: The process that you went through to set this framework I mean, clearly still continuing to grow the dividend.

But retaining more capital to provide flexibility just talk a little bit about the process by which you reach this decision.

Sarah Rubenstein: Yeah. So I think we started this process first at looking at what we expect our fleet to do in its own right. And I think our assessment as we went through and evaluated the pathway we're on both for revenue enhancement and operating cash flow execution built one layer of expectations that we thought we would be able to execute. And then in addition to that, we evaluated the growth investment prospects that we had. And those things collectively gave us a sense for the fundamental earnings growth potential of the business. And then as we've engaged with our investors, we've looked to assess the way that they think about capital allocation and value in the business. And I think what we heard from them collectively is that they would like to see the company grow within its means.

Craig Cornelius: Yeah. So I think we started this process first at looking at what we expect our fleet to do in its own right. And I think our assessment as we went through and evaluated the pathway we're on both for revenue enhancement and operating cash flow execution built one layer of expectations that we thought we would be able to execute. And then in addition to that, we evaluated the growth investment prospects that we had.

Noah Kaye: Yeah.

Speaker Change: So I think.

Speaker Change: We started this process first.

Speaker Change: Looking.

Speaker Change: At what we expect our fleet to do.

Speaker Change: In its own right.

Speaker Change: <unk>.

Speaker Change: And and I think our assessment as we went through.

Speaker Change: Evaluated pathway, where on both for revenue enhancement and operating cash flow execution built one layer.

Speaker Change: The expectations that we thought we would be able to execute.

Craig Cornelius: And those things collectively gave us a sense for the fundamental earnings growth potential of the business. And then as we've engaged with our investors, we've looked to assess the way that they think about capital allocation and value in the business. And I think what we heard from them collectively is that they would like to see the company grow within its means.

Speaker Change: And then in addition to that we evaluated the growth investment prospects that we have and those things collectively gave us a sense for.

Speaker Change: The fundamental earnings growth potential of the business.

Speaker Change: And then as we've engaged with our investors.

Speaker Change: We have left to assess the way that they think about capital allocation and value.

Speaker Change: In the business and I think what we heard from them collectively is that they would like to see the company grow within its means and.

Sarah Rubenstein: I think in particular, when they think about growing within our means, the general thought process has been that people would like to see us be able to meet our growth prospects without a substantial reliance on the issuance of equity. We think we built a plan that really should deliver leading-edge returns both through fundamentally the growth of the earnings of our business itself, but also through our ability to compound that growth using the capital that we allocate from our own fleet. I think we've tried to incorporate that expectation from our investors in the way that we've allocated capital in the plan. When it comes to dividend growth, I think we want to remain competitive among investors' selection of options for listed infrastructure while not overcommitting ourselves to the growth of the dividend that we have committed to the street.

Craig Cornelius: I think in particular, when they think about growing within our means, the general thought process has been that people would like to see us be able to meet our growth prospects without a substantial reliance on the issuance of equity. We think we built a plan that really should deliver leading-edge returns both through fundamentally the growth of the earnings of our business itself, but also through our ability to compound that growth using the capital that we allocate from our own fleet.

Speaker Change: I think in particular, when you think about growing within our means.

Speaker Change: The general thought process has been that people would like.

Speaker Change: Be able to meet our growth prospects without a substantial reliance on the issuance of that but we think we've built the plan.

Speaker Change: That really.

Speaker Change: To deliver leading edge returns.

Fundamentally the growth of the earnings.

Speaker Change: All of our business itself, but also.

Speaker Change: Through our ability to compound that growth using the capital that we allocate from are so I think.

Craig Cornelius: I think we've tried to incorporate that expectation from our investors in the way that we've allocated capital in the plan. When it comes to dividend growth, I think we want to remain competitive among investors' selection of options for listed infrastructure while not overcommitting ourselves to the growth of the dividend that we have committed to the street.

Speaker Change: We've tried to incorporate that expectation for.

From our investors and the way that we've allocated capital plan.

Speaker Change: When it comes to dividend growth I think we want to remain competitive amongst investors.

Speaker Change: Selection of options for our listed infrastructure.

Speaker Change: While not over committing ourselves to the growth of the dividend that we have committed to the street.

Sarah Rubenstein: And again, I think we've done that as well. So we feel really good about the plan that we built here. We know how to execute it. We think it's actually going to provide pretty compelling growth prospects for our investors, and it will still give them the chance to participate in that growth with the dividend that we know how to pay in a secure way.

Craig Cornelius: And again, I think we've done that as well. So we feel really good about the plan that we built here. We know how to execute it. We think it's actually going to provide pretty compelling growth prospects for our investors, and it will still give them the chance to participate in that growth with the dividend that we know how to pay in a secure way.

Speaker Change: Again, I think we've done that as well so we.

Speaker Change: We feel really good about the plan that we built here.

How to execute it.

Speaker Change: So you've got to provide pretty compelling.

Speaker Change: Both prospects for our investors and it will still given the chance to participate in that growth with the dividend that we know how to pay in a secure way.

Craig Cornelius: Thank you, Craig. And then talking a little bit about sources of capital, appreciate the commentary around capital that you might source both from the debt and equity markets. Curious to know how you think about potential for external capital, third-party capital, potentially in some sort of a minority investment-type structure or a holding-type structure as an alternative to some of the sources that you've detailed, just given we are seeing some of those structures out there in the market.

Noah Kaye: Thank you, Craig. And then talking a little bit about sources of capital, appreciate the commentary around capital that you might source both from the debt and equity markets. Curious to know how you think about potential for external capital, third-party capital, potentially in some sort of a minority investment-type structure or a holding-type structure as an alternative to some of the sources that you've detailed, just given we are seeing some of those structures out there in the market.

Speaker Change: Okay.

Speaker Change: Thank you Craig.

Speaker Change: And then talking a little bit about sources of capital I appreciate the commentary around.

Speaker Change: Capital that you might source, both from the debt and equity markets.

Speaker Change: Curious to know how you think about potential for.

External capital third party capital.

Speaker Change: Potentially in some sort of a minority investment type.

Speaker Change: Type structure or.

Speaker Change: Our holding type structure.

Speaker Change: As an alternative to some of the sources that you've detailed.

Speaker Change: Just given we are seeing.

Sarah Rubenstein: We don't require that kind of a structure to be able to execute on our plan. When we look at the cost of capital for some of those types of structures, in relation to the cost of our corporate debt, it's not particularly compelling. As we noted, we don't have to issue equity to hit the midpoint of our plan. To be able to execute to the very top end of the CAFD per share range we've articulated, the amount of equity that we'd have to issue is a very modest amount out in the later years of 2026 and 2027. We're sort of talking about something like 1% of the public float of one of our classes of shares. So it's not a tremendous amount of capital that we'd actually have to issue in the form of equity.

Speaker Change: Some of those structures out there in the market.

Speaker Change: No.

Speaker Change: We don't require that kind of a structure to be able to execute on our plan and when we.

Speaker Change: We look at the cost of.

Speaker Change: Capital.

Speaker Change: For some of those types of structures.

Speaker Change: In relation to the cost of our corporate debt, it's not particularly compelling.

Craig Cornelius: To be able to execute to the very top end of the CAFD per share range we've articulated, the amount of equity that we'd have to issue is a very modest amount out in the later years of 2026 and 2027. We're sort of talking about something like 1% of the public float of one of our classes of shares. So it's not a tremendous amount of capital that we'd actually have to issue in the form of equity.

Speaker Change: And as we noted we don't have to issue equity to hit the midpoint of our plan.

Speaker Change: To be able to execute to the very top end of the cap. We procure range. We've articulated the amount of equity that we would have to issue is.

Speaker Change: A very modest amount.

Speaker Change: Later in 2026 and 2027.

We're sort of talking about something like a <unk>.

Speaker Change: Percentage of the <unk>.

<unk>, Florida, one of our clients sure.

Sarah Rubenstein: So rather than load up on additional capital that sits sort of at the bottom of the capital structure and would dilute the fraction of CAFD per share that our current shareholders are entitled to receive, I think we want, as I started out with, to grow within our means, driven in particular by the cash flow that our fleet will be compounding over the next three years, and then in a prudent way make use of leverage capacity between 4 and 4.5 times and potentially trending down to the low end of that range. We see how we can achieve our growth goals really principally with those sources of funding without needing to get into thinking about sources of capital that would be diluted, whether those are public in the form of public issuance or those types of structures either.

Speaker Change: Not a tremendous amount of capital that we would actually have to issue in the form of equity.

Speaker Change: So rather than load up on additional.

Speaker Change: Capital that sits sort of at the bottom of the capital structure and would dilute the fraction of Kathy per share that are current shareholders are entitled to receive.

I think we want.

Speaker Change: Good outlet too.

Speaker Change: To grow within our means driven in particular by the cash flow that our fleet will be compounding over the next three years.

Speaker Change: And then.

Speaker Change: In a prudent way, making use of leverage capacity between four and four five times and potentially trending down to the low end of that range and we see how we can achieve our growth goals really principally with those sources of funding without needing to get into thinking about.

Craig Cornelius: We see how we can achieve our growth goals really principally with those sources of funding without needing to get into thinking about sources of capital that would be diluted, whether those are public in the form of public issuance or those types of structures either.

Speaker Change: Sources of capital that would be dilutive, whether those are public in the form of public issuance. So as those types of structures either so.

Sarah Rubenstein: So I think as we move forward over time, we'll want to be thoughtful about the full range of growth prospects we have and how we can continue to drive accretion for our investors. But for the moment, we don't see a need to make use of structures like what you're describing, and we're quite happy about what that means.

Craig Cornelius: So I think as we move forward over time, we'll want to be thoughtful about the full range of growth prospects we have and how we can continue to drive accretion for our investors. But for the moment, we don't see a need to make use of structures like what you're describing, and we're quite happy about what that means.

Speaker Change: I think.

Speaker Change: As we move forward over time, we will want to be thoughtful about.

Speaker Change: The full range of growth prospects, we have and how we can continue to drive accretion for our investors, but for the moment, we don't see a need to make use of structures like what you're describing and we're quite happy about what that means.

Craig Cornelius: Very helpful. Thank you. I'll leave it there.

Noah Kaye: Very helpful. Thank you. I'll leave it there.

Sarah Rubenstein: Yep.

Craig Cornelius: Yep.

Speaker Change: Very helpful. Thank you I'll leave it there.

Speaker Change: <unk>.

Speaker Change: Thank you.

As a reminder, ladies and gentlemen, we ask that you limit yourself to one question and one follow up please.

Speaker Change: Please standby for our next question.

Speaker Change: Our next question comes from the line of Julien Dumoulin Smith with Jefferies. Your line is open.

Craig Cornelius: Hey, good morning, team. Thank you very much. Congratulations, Craig, Sarah. Appreciate the time. Just following up here on the update, really nicely done here. Just in terms of the overall RA uplift here in that 240 to 260 or however you want to frame it at the bottom end on 240, what's reflected there in terms of continued ability to see RA uplift materialize? Given how robust of an outlook you provided here on 2027, is there still a further step function change that you would expect over time there in the RA levels? I know that this is obviously ahead of plan, if you will. Just wanted to kind of clarify what's reflected. Also, what else is in the portfolio improvements? I know you mentioned some key factors.

Julien Dumoulin-Smith: Hey, good morning, team. Thank you very much. Congratulations, Craig, Sarah. Appreciate the time. Just following up here on the update, really nicely done here. Just in terms of the overall RA uplift here in that 240 to 260 or however you want to frame it at the bottom end on 240, what's reflected there in terms of continued ability to see RA uplift materialize?

Speaker Change: Okay.

Speaker Change: Hey, good morning team. Thank you very much congratulations Craig sure I appreciate the time.

Speaker Change: Just following up here on the update really nicely done here just in terms of the overall raw uplift here in that $2 40 to 60, or however, you want to frame. It at the bottom end of 240, what's reflected there in terms of continued ability to CRA uplift materialize given how robust are an outlook you provided here on 2007 is there still a fair.

Julien Dumoulin-Smith: Given how robust of an outlook you provided here on 2027, is there still a further step function change that you would expect over time there in the RA levels? I know that this is obviously ahead of plan, if you will. Just wanted to kind of clarify what's reflected. Also, what else is in the portfolio improvements? I know you mentioned some key factors.

Speaker Change: Further step function change that you would expect over time, they're in the <unk>.

Speaker Change: <unk> levels I know that this is obviously ahead of plan. If you will so just wanted to kind of clarify what's reflected in also.

Craig Cornelius: Anything else above and beyond principally the RA and Pine Forest here and, I suppose, early refinancing of the 2028 bonds such that you get a run rate 2027 uplift, I presume?

Speaker Change: What else is in the portfolio improvements I know you mentioned, some key factors anything else above and beyond principally the raw and packing for us here.

I suppose early refinancing of the 'twenty eight borrowings is that you've got a run rate 27 uplift I presume.

Speaker Change: Yeah, Yeah. Thanks really appreciate the question on all those fronts I think were.

Speaker Change: We're quite happy with how we're executing on all of them. So first in terms of what's embedded into 2027.

Speaker Change: Target range.

Speaker Change: We set that based on.

Speaker Change: The pricing that we've been securing on forward David multiyear contracts in today's marketplace today.

Speaker Change: And.

Speaker Change: And in fact, I think for the capacity that some contracted we set it at.

Speaker Change: At a modest suffered discount to the pricing that we're realizing.

Speaker Change: And.

And relative to what's reflected in the midpoint of our 2025 guidance.

Speaker Change: It's an uplift of about.

Speaker Change: Sort of five to $5 $5 per kilowatt month versus the.

The contracts under which we are delivering in 2025 between time.

Sarah Rubenstein: And with respect to whether you could see a further step function up from those levels beyond 2027, I would sort of hasten not to commit to that or expect that, but we do feel good about these levels being sustainable. To give you some further calibration on that, when we look at the prompt year and where contracts for the prompt year or even 2026 are being executed today, they're being executed at substantial premiums to the level we've embedded in this 2027 goal. And as we manage our RA marketing program, and we've described previously, we intend to continue a pattern similar to what's evident in our current reporting today where we progressively contract on a multi-year basis our forward RA capacity while leaving some fraction of it open closer to the prompt year to be able to capture some premium value.

Craig Cornelius: And with respect to whether you could see a further step function up from those levels beyond 2027, I would sort of hasten not to commit to that or expect that, but we do feel good about these levels being sustainable. To give you some further calibration on that, when we look at the prompt year and where contracts for the prompt year or even 2026 are being executed today, they're being executed at substantial premiums to the level we've embedded in this 2027 goal.

Speaker Change: Some years ago.

And with respect to whether you could see a further step function up from those levels beyond 2027.

Speaker Change: I would I would sort of pace or not.

Speaker Change: To commit to that or expect that what.

Speaker Change: We do feel good about the level being sustainable.

Speaker Change: Some further calibration on that when we when we look at the crop year.

Speaker Change: And where.

Speaker Change: Thanks for the prompt year or even 2026 are being executed today, they're being executed at substantial premiums to the level, we've embedded into 2027 goal and as we manage our marketing program and we've described previously we intend to.

Craig Cornelius: And as we manage our RA marketing program, and we've described previously, we intend to continue a pattern similar to what's evident in our current reporting today where we progressively contract on a multi-year basis our forward RA capacity while leaving some fraction of it open closer to the prompt year to be able to capture some premium value.

Speaker Change: Continue a pattern similar to what's evident in our current reporting today, where.

Speaker Change: We progressively contract on a multiyear basis our forward.

Speaker Change: While leaving some fraction of it open closer to the prompt year to be able to capture some premium value. We think that that produces a good risk adjusted result for our business model and based on what we see in the special requirements load forecast for California. The way the regulators are continuing to assign value for.

Sarah Rubenstein: We think that that produces a good risk-adjusted result for our business model. Based on what we see in the structural reforms, load forecast for California, the way the regulators are continuing to assign value for modern thermal resources like ours, we feel pretty good about being able to continue to run this pattern at levels sort of roughly in line with what we've embedded within the range of 240 to 260 per share. In terms of fleet improvements, we have a whole host of things that we've executed this year that we're quite proud of, which include some modernization of methods for how we're running our plants. We've restructured some O&M and service agreements that have provided some improvement to the cash flow generation of our assets. Those are both observable in our results this year and are reflected in that long-term pro forma expectation.

Speaker Change: Modern thermal resources like ours, we feel pretty good about being able to continue to run this pattern at levels.

Speaker Change: Sort of roughly in line with what we have embedded within the range of $2 $40.

Craig Cornelius: In terms of fleet improvements, we have a whole host of things that we've executed this year that we're quite proud of, which include some modernization of methods for how we're running our plants. We've restructured some O&M and service agreements that have provided some improvement to the cash flow generation of our assets. Those are both observable in our results this year and are reflected in that long-term pro forma expectation.

Speaker Change: Sure.

Speaker Change: In terms of fleet improvements.

Speaker Change: We have a whole host of things that we've executed this year that we're quite proud of.

Speaker Change: Which include some modernization of methods for how we're running our plants.

Speaker Change: We've restructured.

Speaker Change: O&M and service agreements that it provided some improvement to that.

Speaker Change: The generation of our assets.

Speaker Change: Our boat observable in our results this year and are reflected in our long term performance expectation.

Sarah Rubenstein: And then I think that that probably covers all your questions, then. Oh, on the refinancing. Yeah. I think as far as what's reflected in 2027, that does reflect unassumed cost for refinancing our 2028 maturities with some buffer relative to the current yield to worst and what we would think is that execution cost. So it's not actually expense savings versus what we have in 2025, but we think it's actually a reflection of a prudent execution plan for that refinancing that we feel good about executing.

Craig Cornelius: And then I think that that probably covers all your questions, then. Oh, on the refinancing. Yeah. I think as far as what's reflected in 2027, that does reflect unassumed cost for refinancing our 2028 maturities with some buffer relative to the current yield to worst and what we would think is that execution cost. So it's not actually expense savings versus what we have in 2025, but we think it's actually a reflection of a prudent execution plan for that refinancing that we feel good about executing.

Speaker Change: And then I think.

Speaker Change: I think thats probably covers all your questions.

Speaker Change: On the refinancing, yes, I think we.

Speaker Change: As far as what's reflected in 2027 that does reflect.

Speaker Change: On assumed cost for refinancing our 2028 maturities.

Speaker Change: A reflection of our prudent execution plan for that refinancing that we feel good about executing.

Craig Cornelius: Excellent. Thank you so much for all those details. Really appreciate it. Just one more strategic one as a follow-up here. With respect to the lower payout ratio here, any thoughts about, A, the ability to actually obtain assets from the Clearway Group overall? It sounds like they've got an ample pipeline. That should be transparent. And then related to the extent to which you start going down a lower payout ratio, how do you think about the kinds of assets you would take on? Again, obviously, the storage assets that we're starting to see manifest themselves have a little bit less contract coverage here. Is that part of the strategic pivot as well, having a little less contracted cash flow?

Excellent. Thank you so much for all those details really appreciate it just one more strategic one as a follow up here.

Speaker Change: With respect to the lower payout ratio here any thoughts about the ability to actually obtain assets from the clearer group overall it sounds like <unk> got an ample pipeline that should that should be transparent and the related to the extent to which you start going down a low payout ratio. How do you think about the kinds of assets you would take on again, obviously the storage assets that were <unk>.

Julien Dumoulin-Smith: That should be transparent. And then related to the extent to which you start going down a lower payout ratio, how do you think about the kinds of assets you would take on? Again, obviously, the storage assets that we're starting to see manifest themselves have a little bit less contract coverage here. Is that part of the strategic pivot as well, having a little less contracted cash flow?

Speaker Change: Going to see manifest themselves.

Speaker Change: Have a little bit less contract coverage here is that part of the strategic pivot as well.

Sarah Rubenstein: Yeah. Thanks for the question. Yeah. So first, in terms of the Clearway Group pipeline, as we've shown, it's progressing nicely. Our organization is continuing to expand on its execution track record for pipeline progression and contracting. You probably noted that the pipeline that's disclosed reflects an improvement in the advanced-stage capacity that's planned right now for 2026 and 2027 as well as 2028 and 2029, which is not a pattern you see unfolding in other parts of the industry. To be able to execute on growth investments that would take us to the top end of the range of 240 to 260 in CAFD per share, only a fraction of that pipeline would ultimately need to be implemented and dropped down. So we feel good about the way our out-year goals have been sort of over-collateralized, to use a term, with respect to growth investments.

Craig Cornelius: Yeah. Thanks for the question. Yeah. So first, in terms of the Clearway Group pipeline, as we've shown, it's progressing nicely. Our organization is continuing to expand on its execution track record for pipeline progression and contracting. You probably noted that the pipeline that's disclosed reflects an improvement in the advanced-stage capacity that's planned right now for 2026 and 2027 as well as 2028 and 2029, which is not a pattern you see unfolding in other parts of the industry.

Speaker Change: Having a level of contracted cash flow.

Speaker Change: Yes, thanks for the question yes.

Speaker Change: So first in terms of the Clearway group pipeline.

Speaker Change: As we've shown.

Speaker Change: It's progressing nicely our organization.

Speaker Change: Continuing to expand on its execution track record for pipeline progression and contracting.

Speaker Change: Probably noted that.

Speaker Change: The pipeline that's disclosed reflects an improvement in the advanced stage capacity.

Speaker Change: Thats planned right now for 2026, and 2027 as well as 2028 and 2029, which is not a pattern you see.

Craig Cornelius: To be able to execute on growth investments that would take us to the top end of the range of 240 to 260 in CAFD per share, only a fraction of that pipeline would ultimately need to be implemented and dropped down. So we feel good about the way our out-year goals have been sort of over-collateralized, to use a term, with respect to growth investments.

Speaker Change: Unfolding in other parts of the industry.

Speaker Change: And to be able to execute on growth investments.

Speaker Change: That would take us to the top end.

Speaker Change: Range of $2 40 to $2 <unk> per share.

Speaker Change: Only a fraction of that pipeline would also be simply need to be implemented and dropdown.

Speaker Change: So we feel good about the.

Speaker Change: Our out year goals have been.

Speaker Change: Sort of over collateralized to use a term.

Sarah Rubenstein: The sponsor has demonstrated its readiness to continue to make offers in a measured progression that are compatible with CWEN's ability to fund those and commit to them. So I think it's the intention that we'll continue that pattern. In terms of the lower payout ratio, it's not a reflection of a different level of risk in the assets. The storage assets the Clearway Group is developing are almost entirely in the Western markets where they're contracted typically under tolls or in resource adequacy contracts that obtain the vast, vast majority of their revenues from fixed pricing in RA. Across the storage pipeline that Clearway Group is advancing, it's almost entirely assets like that. We have, as we've noted, added battery capacity for Pine Forest in ERCOT, which we view as complementary to diminishing revenue volatility in our wind fleet.

Craig Cornelius: The sponsor has demonstrated its readiness to continue to make offers in a measured progression that are compatible with CWEN's ability to fund those and commit to them. So I think it's the intention that we'll continue that pattern. In terms of the lower payout ratio, it's not a reflection of a different level of risk in the assets.

Speaker Change: With respect to growth investments in the sponsor has demonstrated its readiness to continue too.

Speaker Change: Make offers and measured progression that are compatible with.

Speaker Change: <unk> ability to fund those and commit to them. So I think that pension that will continue that pattern in terms of the lower payout ratio, it's not a reflection of a different level of risk in the asset.

Craig Cornelius: The storage assets the Clearway Group is developing are almost entirely in the Western markets where they're contracted typically under tolls or in resource adequacy contracts that obtain the vast, vast majority of their revenues from fixed pricing in RA. Across the storage pipeline that Clearway Group is advancing, it's almost entirely assets like that. We have, as we've noted, added battery capacity for Pine Forest in ERCOT, which we view as complementary to diminishing revenue volatility in our wind fleet.

Speaker Change: The storage assets that Clearway group is developing.

Speaker Change: Some higher was in the western markets, where theyre contracted typically enter tolls or and resource adequacy contracts that.

Speaker Change: To obtain the vast vast majority of their revenues from fixed pricing.

Speaker Change: And across the storage pipeline that Clearway group is advancing its almost entirely assets like that we have as we've noted added battery capacity for pine forest in ERCOT.

Speaker Change: Which we view as complimentary.

Speaker Change: Diminishing revenue volatility in our wind fleet, but almost all the storage capacity, we're advancing will produce revenues under long term contract.

Speaker Change: Coal type agreements that are 15 to 20 years in duration with placebo.

So the payout ratio reduction goals that we have to reach the low end of 70% to 80% are really about how we fund the business overtime.

Speaker Change: What's the kind of the question you asked about how we metabolized hope we got from our investors, who really want to see us funds.

Speaker Change: <unk>, our growth principally through our cash flow generation and driving that payout ratio over time lets us do that.

Craig Cornelius: Excellent. Thank you guys so much.

Julien Dumoulin-Smith: Excellent. Thank you guys so much.

Operator: Thank you. Please stand by for our next question. Our next question comes from the line of Steve Fleishman with Wolfe Research. Your line is open.

Speaker Change: Excellent. Thank you guys so much.

Speaker Change: Thank you.

Speaker Change: Please standby for our next question.

Speaker Change #100: Our next question comes from the line of Steve Fleishman with Wolfe Research. Your line is open.

Steve Fleishman: Yeah. Hi. Thanks. Congrats on the update. Very clear. So just on the, you did mention maybe also ultimately looking at M&A. I think that's been hard to do, but with this increased flexibility. Just any sense, Craig, on opportunity set there and has pricing for assets kind of reset to a level where that could meet hurdles?

Steve Fleishman: Yes, hi, thanks, Congrats on the update very clear.

Steve Fleishman: So just.

Steve Fleishman: On the.

Steve Fleishman: You did mention maybe also ultimately looking at M&A I think that's been hard to do.

Steve Fleishman: Yeah.

But with this increased flexibility.

Steve Fleishman: Just any sense any sense Craig on.

Steve Fleishman: Opportunity set there and it just has pricing for.

Steve Fleishman: For assets kind of reset to a level where that.

Sarah Rubenstein: Yeah. Thanks for the congrats first, Steve. We're really happy with what we've settled on here as a framework. On the M&A question, we are selectively engaged on sort of individual asset or groups of assets that, as we've noted, would be right-sized relative to the capital allocation framework and growth goals that we've laid out here. And in those places where we're engaging, we are finding that there are assets that we can potentially acquire that could be acquired at cash fee yields, return requirements, and sort of risk profiles that are consistent with the types of assets the Clearway Group sponsor has been offering to CWEN and that, in some cases, also could make use of our demonstrated capability for repowering. So for the time being, it's really assets like that that we're focused on.

Steve Fleishman: Could meet hurdles.

Speaker Change #101: Yes, thanks for the congrats first Steve we're really happy with.

Steve Fleishman: But we've settled on here as a framework on the.

The M&A question.

Steve Fleishman: We are.

Steve Fleishman: Selectively engaged on sort of the individual asset or the.

Steve Fleishman: With assets.

Steve Fleishman: As we've noted would be right sized relative to the capital allocation framework and growth goals that we've laid out here.

Craig Cornelius: And in those places where we're engaging, we are finding that there are assets that we can potentially acquire that could be acquired at cash fee yields, return requirements, and sort of risk profiles that are consistent with the types of assets the Clearway Group sponsor has been offering to CWEN and that, in some cases, also could make use of our demonstrated capability for repowering. So for the time being, it's really assets like that that we're focused on.

And in those places where we're engaging.

Steve Fleishman: We are finding that there are assets that we can potentially acquire.

Yeah.

Steve Fleishman: Could be acquired a passenger yields and return requirements.

Steve Fleishman: Certain risk profiles that are consistent with the types of assets that are clear.

Steve Fleishman: Clearway group sponsor has been offering.

Steve Fleishman: Yeah.

Steve Fleishman: And in <unk>.

Steve Fleishman: Some cases also could make use of our demonstrated capability.

Sarah Rubenstein: As we've noted, we don't really need to acquire projects outside of the sponsor pipeline to be able to deliver on the growth goals we've laid out here already, which we think are quite attractive and should be to our investors. So where we're thinking about M&A, we're really doing so in a way that's disciplined and that's centered on assets that we think are complementary to our resource mix, our customer profile, and that would exhibit really attractive and accretive returns. As we go forward over the course of the next few years, surely we can see the industry landscape evolve in ways that there's potentially accretive M&A that doesn't fit that profile. But what I described is what we're really focused on today.

So thats done being it's really assets like that that we're focused on.

Steve Fleishman: As we've noted we don't really need to acquire projects.

Steve Fleishman: Outside of the sponsor pipeline to be able to deliver on the growth goals. We've laid out here already which we think are quite attractive to our investors. So where we're thinking about M&A. We're really doing so in a way that is disciplined and that's centered on assets that we think are complementary to our resource mix our customer profile.

Craig Cornelius: As we go forward over the course of the next few years, surely we can see the industry landscape evolve in ways that there's potentially accretive M&A that doesn't fit that profile. But what I described is what we're really focused on today.

Steve Fleishman: And that would exhibit really attractive.

Steve Fleishman: And accretive returns.

As we go forward over the course of the next few years.

Steve Fleishman: Certainly we can see the industry landscape evolve in ways.

Steve Fleishman: Theres potentially accretive M&A that doesn't fit that profile, but what I described is what we're really focused on.

Steve Fleishman: Okay.

Speaker Change #102: Great and then just just one follow up to ask before just.

Steve Fleishman: Could.

Steve Fleishman: I might have missed this but just to fleet improvements could you be more specific what those are is it.

Steve Fleishman: Is it certain.

Sarah Rubenstein: Yeah. I think principally, we have been employing modernized information technology tools for work planning and sort of general execution on plant availability and conversion efficiency in parts of our fleet. So that's one thing that is helping us to improve on results year-over-year. Our other improvements are evident in some improvements in our conventional fleet's availability and execution versus prior years, which are a result of just some pretty intensive execution around our engagement with those plants. And then lastly, the restructuring of some service agreements and O&M agreements in our wind fleet, which have improved on our cash fee realization as a business. So those are really the principal buckets of execution. And those we aim to make durable, which is why they're reflected in our long-term goals now.

Craig Cornelius: Yeah. I think principally, we have been employing modernized information technology tools for work planning and sort of general execution on plant availability and conversion efficiency in parts of our fleet. So that's one thing that is helping us to improve on results year-over-year. Our other improvements are evident in some improvements in our conventional fleet's availability and execution versus prior years, which are a result of just some pretty intensive execution around our engagement with those plants.

Steve Fleishman: The technologies are.

Speaker Change #103: Just across the board.

Speaker Change #103: Yes.

Speaker Change #103: I think principally.

Speaker Change #103: <unk>.

Speaker Change #103: We have been implying modernized information technology tools for work planning and sort of general execution on plant availability and conversion efficiency in parts of our fleet to that.

Speaker Change #103: One thing that has helped.

Speaker Change #103: Helping us to improve on our results year over year.

Speaker Change #103: Our other improvement are.

Speaker Change #103: Evident and some improvements in our conventional fleets.

Speaker Change #103: Availability and execution versus prior years.

Speaker Change #103: Which.

Speaker Change #103: A result of just some pretty intensive execution around.

Craig Cornelius: And then lastly, the restructuring of some service agreements and O&M agreements in our wind fleet, which have improved on our cash fee realization as a business. So those are really the principal buckets of execution. And those we aim to make durable, which is why they're reflected in our long-term goals now.

Speaker Change #103: Our engagement with those plans.

Speaker Change #103: And then lastly.

Speaker Change #103: The restructuring of some service agreements and the O&M agreements that are really pleased with him.

Speaker Change #104: All right.

Speaker Change #104: Real estate business. So those are really the principal buckets of execution of those.

Speaker Change #104: We aim to make durable which is why they are reflected.

Steve Fleishman: Got it. Thank you.

Sarah Rubenstein: Thanks, Steve.

Craig Cornelius: Thanks, Steve.

Speaker Change #104: Our long term goals.

Operator: Please stand by for our next question. Our next question comes from the line of Justin Clare with Roth Capital Partners. Your line is open.

Speaker Change #105: Got it thank you.

Steve Fleishman: Thanks, Steve.

Speaker Change #106: Please standby for our next question.

Our next question comes from the line of Justin Clare with Roth Capital Partners. Your line is open.

Hi, good morning, Thanks for taking the question so.

Justin Clare: So I wanted to first start out just on the dividend per share growth and was wondering how youre thinking about.

Justin Clare: The growth in dividends per share as we look beyond 2027.

Justin Clare: Or could we see something more.

Justin Clare: Faster.

Justin Clare: And then just wondering on if.

Justin Clare: If we do see a faster move to the low end could that be driven by an equity raise.

Sarah Rubenstein: Yeah. Understand. Yeah. I mean, I think that as is evident in the progression we've run through 2025, 2026, where we've reaffirmed the commitments that had already been made for gradually declining dividend per share growth rates over those years and our articulation of a range of 5 to 6.5% in DPS growth for 2027, I think we're trying to manage our progression in corporate capital allocation framework in a stepwise way. We think that that is prudent as we move over time and together with our investors land on a capital allocation framework and growth model for the company that we're all happy with. I think we tried to be pretty intentional when articulating our framework after 2027 in describing our intention to set our dividend per share growth goals in 2028 and beyond based on a payout ratio.

A possibility yes.

Speaker Change #107: Yes understand.

Speaker Change #107: I think that.

Speaker Change #107: As is evident in.

Speaker Change #107: The progression we've run through.

Speaker Change #107: 2025 2026.

Speaker Change #107: Where we reaffirmed the commitments that have already been made for.

Speaker Change #107: Gradually declining dividend per share growth rates over those years.

Speaker Change #107: And articulation.

Speaker Change #107: Range of five to six 5% with EPS growth for 2027, I think we're trying to.

Speaker Change #107: Manage our progression in corporate capital allocation framework in a stepwise way.

Craig Cornelius: We think that that is prudent as we move over time and together with our investors land on a capital allocation framework and growth model for the company that we're all happy with. I think we tried to be pretty intentional when articulating our framework after 2027 in describing our intention to set our dividend per share growth goals in 2028 and beyond based on a payout ratio.

Speaker Change #107: And we think that that is.

As prudent as we move over time.

Together with our investors.

Speaker Change #107: Land on our capital allocation framework and growth model for the company that.

Speaker Change #107: We're all happy with.

Speaker Change #107: I think we tried to be pretty intentional when articulating our framework for 2027.

Speaker Change #107: <unk>.

Speaker Change #107: Describing our intention to set our dividend per share growth goals.

Sarah Rubenstein: So, I think our intention is that we will settle on dividend per share levels for those future years based on what can reasonably be accommodated within that payout ratio level, while assessing the accretiveness of the use of capital when reinvested in assets that could compound our cash fee per share.

Craig Cornelius: So, I think our intention is that we will settle on dividend per share levels for those future years based on what can reasonably be accommodated within that payout ratio level, while assessing the accretiveness of the use of capital when reinvested in assets that could compound our cash fee per share.

Speaker Change #107: In 2028 and beyond based on the payout ratio.

Speaker Change #107: So I think our intention is that we will settle on.

Speaker Change #107: <unk> per share level for those future years based on what can reasonably be accommodated within that payout ratio level, while assessing the accretive net.

Speaker Change #107: The use of capital when reinvested and assets that can compound our cafe per share so.

Sarah Rubenstein: So hopefully, what's evident in that game plan is that we both don't need to raise large amounts of equity that would be diluted to our current owners in a way that's sort of surprising or unpredictable, and that we would really emphasize over time establishing an increasingly robust balance sheet that allows us to meet our growth goals in any given year, really principally through our retained cash fee, which will be growing from the low $100s million to the very high $100s million, or low $200s million of retained cash fee that's reinvestable, and our corporate leverage ratio, which we intend to manage in a way that's prudent. So I think we tried to be pretty clear about the fact that we don't intend to issue equity right now. We don't need to.

Speaker Change #107: Hopefully what's evident in that game plan is that.

Speaker Change #107: We.

Speaker Change #107: We don't need to raise large amounts of equity that would be dilutive to our current owners.

Speaker Change #107: And in a way that's sort of surprising or unpredictable.

Speaker Change #107: And we.

Speaker Change #107: We would really emphasize over time establishing.

Speaker Change #107: And increasingly robust balance sheet debt.

Speaker Change #107: That allows us to meet our growth goals in any given year.

Craig Cornelius: Which will be growing from the low $100s million to the very high $100s million, or low $200s million of retained cash fee that's reinvestable, and our corporate leverage ratio, which we intend to manage in a way that's prudent. So I think we tried to be pretty clear about the fact that we don't intend to issue equity right now. We don't need to.

Speaker Change #107: Really principally through our retained Cathy which won't be growing from the low one hundreds to the to the very high hundreds or low two hundreds.

Speaker Change #107: In millions of dollars of retained capital Thats re investable on our end.

Speaker Change #107: And our corporate leverage ratio, which we intend to manage in a way that's prudent.

Speaker Change #107: No.

Speaker Change #107: <unk>.

Speaker Change #107: We've tried to be pretty clear about the fact that.

Speaker Change #107: We don't intend to issue equity right now we don't need to.

Sarah Rubenstein: And that, as we advance on this investment program and we're getting to the point where modest levels of equity issuances in line with the kind of pattern that Sarah and I both discussed would be in order, that we'll be communicative about it so that we're not catching anybody by surprise.

Craig Cornelius: And that, as we advance on this investment program and we're getting to the point where modest levels of equity issuances in line with the kind of pattern that Sarah and I both discussed would be in order, that we'll be communicative about it so that we're not catching anybody by surprise.

Speaker Change #107: And that is the advance on this investment program and we're getting to the point where.

Speaker Change #107: Modest levels of equity issuances in line with the kind of pattern that Sarah and I. Both discussed would be an order that will be communicated about it so that we're not catching by surprise.

Justin Clare: Okay. Got it. That's helpful. And then another question, just wanted to ask on the open capacity that you have for your gas fleet here. It looks like the contracted capacity didn't change from last quarter when we look at the 2027 year. Just wondering if was pricing less favorable in the past quarter, and so you didn't look to contract any of the additional capacity? And then just wondering when we might see more of that 2027 capacity contracted. Is it likely to be next summer before we see more of that? And then also, how much could you potentially keep open until we get closer to 2027? Do you anticipate prices trending upward and potentially waiting to contract that open capacity?

Speaker Change #108: Okay got it that's helpful.

Speaker Change #109: And then another question just wanted to ask on the opening capacity.

Speaker Change #109: Capacity that you have for your gas fleet here.

Speaker Change #109: It looks like the contracted capacity didn't change from last quarter. When we look at the 2027 year.

Speaker Change #110: I'm just wondering if.

Speaker Change #110: Was pricing less favorable in the past quarter and so you didn't look to contract any of the additional capacity.

So and then just wondering when we might see more of that 2027 capacity contracted is it likely to be next summer before we see more of that.

Speaker Change #110: Then also how much could you potentially keep open until we get closer to 2027.

Speaker Change #111: Do you anticipate prices trending upward.

Sarah Rubenstein: Yeah. There are annual rhythms to the way that load-serving entities procure resource adequacy in California. The contract that we announced in the most recent quarterly call reflected our contracting in that ordinary pattern. We do have bilateral engagements that are ongoing today. We've noted that we're marketing the open RA capacity that we have at value with patience. I think it would be our intention to increase the fraction that's capacity contracted for 2027 as we move through the next nine months and try to create a pattern that looks like what you can see today rolled forward each year. So we feel really good about that contracting process. The need for the assets remains quite evident. We feel very good about being able to execute on the kind of pricing that's embedded within our range, and we'll be patient moving forward over time.

Craig Cornelius: Yeah. There are annual rhythms to the way that load-serving entities procure resource adequacy in California. The contract that we announced in the most recent quarterly call reflected our contracting in that ordinary pattern. We do have bilateral engagements that are ongoing today. We've noted that we're marketing the open RA capacity that we have at value with patience.

Speaker Change #112: Actually waiting to contract out that open capacity.

Speaker Change #113: Yes, there are annual rhythms to the way that load serving entities <unk> resource adequacy.

Speaker Change #113: In California and.

Speaker Change #113: <unk>.

Speaker Change #113: The contract that we announced.

Speaker Change #113: In the most recent quarterly call.

Speaker Change #113: Reflected.

Speaker Change #113: Our contracting.

In that ordinary pattern.

We do have bilateral engagements that are ongoing today. We've noted that we've noted that we're marketing we open all right with that.

Craig Cornelius: I think it would be our intention to increase the fraction that's capacity contracted for 2027 as we move through the next nine months and try to create a pattern that looks like what you can see today rolled forward each year. So we feel really good about that contracting process. The need for the assets remains quite evident. We feel very good about being able to execute on the kind of pricing that's embedded within our range, and we'll be patient moving forward over time.

Speaker Change #113: Equity that we have at value with patients.

Speaker Change #113: And I think it would be our intention to increase the fraction that's capacity contracted for 2027 as we move through.

Speaker Change #113: The next nine months.

Speaker Change #113: Tried to create a pattern that looks like what you can see today rolled forward each year.

Speaker Change #113: So we feel really good about that contracting process.

Speaker Change #113: The needs of the assets remains quite evident.

Speaker Change #113: We feel very good about being able to execute on the kind of pricing thats embedded within our range and we'll be patient moving forward over time.

I think if you look at 2025.

We've contracted the capacity that we have.

That underpins our guidance for next year, almost entirely and I think thats, probably what you should expect will look like going into any given property.

Justin Clare: Okay. Got it. That's helpful. Thank you.

Sarah Rubenstein: Thank you.

Craig Cornelius: Thank you.

Operator: Please stand by for our next question. Our next question comes from the line of Michael Lonegan with Evercore ISI. Your line is open.

Speaker Change #114: Okay got it that's helpful. Thank you.

Speaker Change #113: Thank you.

Speaker Change #114: Please standby for our next question.

Speaker Change #116: Our next question comes from the line of Mike Malone again with Evercore ISI. Your line is open.

Michael Lonegan: Hi. Thanks for taking my questions. So as we think more about some of the assumptions in the 2027 outlook, in terms of some more specific details, just wondering what you're assuming for cash fee yields on investments and then this specific refinancing rate on the 2028 bonds?

Mike Malone: Hi, Thanks for taking my questions.

Mike Malone: So as we think more about some of the assumptions in the 2027 outlook.

Mike Malone: Some more specific details just wondering what youre, assuming for Caf D yields on investments in that.

Mike Malone: Specific refinancing rate on the 2028 bonds.

Sarah Rubenstein: Yeah. I mean, I think what we've communicated historically is that for sponsor offer dropdowns, we're planning around a 10% CAFD yield as the level on which we're trying to create and capitalize projects for dropdowns. And that's a level that the sponsor increased last fall when the cost of capital for CWEN had increased and was actually higher than it is today. We continue to plan for that in the projects that are being prepared and created. And that's approximately the basis for the goal setting for incremental growth capital investments today.

Craig Cornelius: Yeah. I mean, I think what we've communicated historically is that for sponsor offer dropdowns, we're planning around a 10% CAFD yield as the level on which we're trying to create and capitalize projects for dropdowns. And that's a level that the sponsor increased last fall when the cost of capital for CWEN had increased and was actually higher than it is today. We continue to plan for that in the projects that are being prepared and created. And that's approximately the basis for the goal setting for incremental growth capital investments today.

Speaker Change #117: Yes, I mean, I think what we've communicated historically is that.

Speaker Change #117: For sponsor offer a dropdown.

Speaker Change #117: We're planning around a 10% cap deal does.

Speaker Change #117: The level on which we're trying to create and capitalized projects for Dropdowns.

Speaker Change #117: And thats the level that the <unk>.

Speaker Change #117: Bonser increase last fall when the cost of capital for.

<unk>.

Speaker Change #117: <unk> had increase in was actually higher than it is today.

Speaker Change #117: We continue to plan for that and the projects that are being prepared and created.

Speaker Change #117: And that's approximately the basis for the Gulf setting for incremental growth capital investments today.

Sarah Rubenstein: As far as refinancing assumptions in 2027 are concerned, without getting into specific numbers, I can tell you that what's embedded in this range reflects a conservative estimate of the cost of refinancing those bonds relative to their current yield to worst and the advice that we get from the banks who we would engage on that refinancing. We feel good about being able to execute at the cost of capital that's reflected in this target range based on what we see today.

Craig Cornelius: As far as refinancing assumptions in 2027 are concerned, without getting into specific numbers, I can tell you that what's embedded in this range reflects a conservative estimate of the cost of refinancing those bonds relative to their current yield to worst and the advice that we get from the banks who we would engage on that refinancing. We feel good about being able to execute at the cost of capital that's reflected in this target range based on what we see today.

Speaker Change #117: And as far as refinancing assumptions in 2027.

Speaker Change #117: <unk>.

Speaker Change #117: Without getting into specific numbers I can tell you that.

Speaker Change #117: What's embedded in this range.

Speaker Change #117: Lex Conservative estimate.

Speaker Change #117: Of the cost of refinancing those bonds relative to their current yield to worst of that.

Speaker Change #117: And the advice that we get.

From the banks, so we would engage on that refinancing so.

Speaker Change #117: We feel good about being able to execute at the cost of capital that is reflected in its target range based on what we see today.

Michael Lonegan: Great. Thanks. And then secondly for me, just wondering, as you consider the data center demand, you talked about the sponsors' engagement with corporates and load-serving entities, the power data centers. I think you highlighted 5 gigawatts of renewables. Just wondering, at the CWEN level, would you consider acquiring more gas generation assets, or is your focus entirely on renewables paired with storage?

Speaker Change #118: Great. Thanks, and then secondly for me I'm just wondering as you consider the data center demand you talked about the sponsors engagement with corporates and load serving entities. The power data centers that you highlighted five gigawatts of renewables just wondering.

Speaker Change #119: Find level would you consider acquiring more gas generation assets or is your focus entirely on renewables paired with storage.

Speaker Change #119: Yes.

Speaker Change #119: Yeah.

Speaker Change #120: I think.

Speaker Change #120: Sure.

Speaker Change #120: The variety of project configurations that are being evaluated.

Speaker Change #120: And clear eight groups work around data centers is substantial.

Speaker Change #120: Yeah.

Speaker Change #120: There.

Speaker Change #120: There are certainly.

Speaker Change #120: Scenarios for certain types of project configurations that.

Speaker Change #120: That would make us.

Speaker Change #120: Dispatch of ball.

Speaker Change #120: Im all generation.

Speaker Change #120: On the.

Speaker Change #120: The majority of what's being engaged on would reflect that.

Speaker Change #120: Use of mainstay.

Speaker Change #120: Wind solar and battery resources and provisioning wise.

The data center customer would require.

Speaker Change #120: But.

Speaker Change #120: It's conceivable as we look out into the future that there could be some.

Speaker Change #120: Other research sites that would complement those I think from the from the context of Clearway Energy Inc.

Speaker Change #120: When projects are created the focal point would be on creating assets that are.

Speaker Change #120: Highly contracted and their cash flow profile.

Sarah Rubenstein: I think what we'll be focused on when creating projects is creating projects that will be technically reliable and financially predictable while being responsive to the needs of a data center customer. So there's a lot of time to go, but I think what we're focused on is leveraging our existing capabilities, which do span wind, solar, storage, and gas-fired generation, but with a particular focal point on how to create low-carbon solutions that are highly reliable.

Craig Cornelius: I think what we'll be focused on when creating projects is creating projects that will be technically reliable and financially predictable while being responsive to the needs of a data center customer. So there's a lot of time to go, but I think what we're focused on is leveraging our existing capabilities, which do span wind, solar, storage, and gas-fired generation, but with a particular focal point on how to create low-carbon solutions that are highly reliable.

Speaker Change #120: And long in the tenure of those contracts.

Speaker Change #120: I think what we'll be focused on when creating projects is creating projects that will be technically reliable and financially predictable.

Speaker Change #120: While being responsive to the needs.

Speaker Change #120: Other data center customers so.

Speaker Change #120: There is a lot of time to go but I think.

Speaker Change #120: While we're focused on leveraging our existing capabilities, which newsstand wind solar storage and gas fired generation, but with a particular focal point on how to create low carbon solutions that are highly reliable.

Michael Lonegan: Great. Thank you very much.

Operator: Thank you. Please stand by for our next question. Our next question comes from the line of Angie Storozynski with Seaport. Your line is open.

Speaker Change #121: Great. Thank you very much.

Speaker Change #122: Thank you.

Speaker Change #123: Please standby for our next question.

Speaker Change #124: Our next question comes from the line of Angie <unk> with Seaport. Your line is open.

Speaker Change #125: Thank you.

Speaker Change #126: I have a question about it.

Speaker Change #127: Listen when your willpower assets and the type of contracts that underpin them. So just wondering if you could comment for example, if you have any.

Speaker Change #127: Any basis exposure at these <unk> contracts.

What are you seeing for example, any issues with them.

Speaker Change #128: Well obviously.

Speaker Change #128: The transmission congestion here, but also that the wake effect.

Speaker Change #128: Impacting essentially your wind assets instead of <unk>.

Speaker Change #128: Premature aging or.

Speaker Change #128: Capacity of degradation on the.

Speaker Change #128: On the <unk>.

Speaker Change #128: Storage assets and any exposure.

Speaker Change #128: Two.

Changes in.

Speaker Change #128: On the grid or like.

Speaker Change #128: Basically.

Speaker Change #128: Trading conditions in time markets that could actually impact the EBITDA generation of the existing assets yes.

Sarah Rubenstein: Yeah. I understand the question. Yeah. So I mean, first of all, we're fortunate to have a fleet which earns a very, very substantial majority of its revenues in node-settled unit contingent contracts. That's true of a very, very high fraction of our total budgeted EBITDA on cash fee. Just breaking down your questions, with respect to the storage assets that we brought online this year, they're performing very well. I'm very proud of the work our team has done as we've commissioned those over the course of this summer, really. They're running. They're running very well. And that reflects a level of vigilance, know-how, and capability with our organization to work with our suppliers to intensively drive performance in those assets, but they're performing very well.

Craig Cornelius: Yeah. I understand the question. Yeah. So I mean, first of all, we're fortunate to have a fleet which earns a very, very substantial majority of its revenues in node-settled unit contingent contracts. That's true of a very, very high fraction of our total budgeted EBITDA on cash fee. Just breaking down your questions, with respect to the storage assets that we brought online this year, they're performing very well.

Speaker Change #128: I understand the question, yes, so I mean first of all we're fortunate to have.

Speaker Change #128: Our fleet.

Which earns.

Speaker Change #128: A very very substantial majority.

Its revenues and notes settled unit contingent contracts.

Speaker Change #129: That's true.

Speaker Change #129: A very very high fraction of our total.

Speaker Change #129: Budgeted EBITDA and Kathy.

Speaker Change #129: With just breaking down your questions.

Speaker Change #129: With respect to the storage assets that we brought online this year.

Speaker Change #129: They're performing very well.

Speaker Change #129: I am very proud of the work our team has done is we've commissioned those over.

Speaker Change #129: The course this summer really theyre running.

Speaker Change #129: They are running very well.

Speaker Change #129: Yes.

Speaker Change #129: Flex a level of vigilance and Knowhow and capability with our organization to work with our suppliers to ensure.

Speaker Change #129: Tencent, we drive performance in those assets, but they are performing.

Sarah Rubenstein: With respect to wind assets, we did have some challenges in availability that you would have seen in our results last year. The fleet improvement program we've been executing this year with investments and contract structures was intended to help address that. As you can see in our results here today, I think we've actually driven a lot of those improvements in terms of availability in different parts of our fleet and overall cash flow generation from it. I think our prospects for repowering look promising for us as we think about projects that are maturing and in a position to be repowered based on their original place and service dates. In terms of basis exposure, we have it on a limited number of contracts. We are managing it, I think, quite well now as an organization.

Craig Cornelius: With respect to wind assets, we did have some challenges in availability that you would have seen in our results last year. The fleet improvement program we've been executing this year with investments and contract structures was intended to help address that. As you can see in our results here today, I think we've actually driven a lot of those improvements in terms of availability in different parts of our fleet and overall cash flow generation from it.

Speaker Change #129: Very well.

Speaker Change #129: With respect to wind assets we.

We did have.

Speaker Change #129: Some challenges and availability that you would have seen in our results last year and the fleet improvement program, we have been executing this year.

Speaker Change #129: With investments in contract structures was intended to help address that and as you can see in our results year to date.

Speaker Change #129: We have actually driven a lot of those improvements in.

Speaker Change #129: In terms of availability in different parts of our fleet and overall cash flow generation from it.

Craig Cornelius: I think our prospects for repowering look promising for us as we think about projects that are maturing and in a position to be repowered based on their original place and service dates. In terms of basis exposure, we have it on a limited number of contracts. We are managing it, I think, quite well now as an organization.

Speaker Change #129: And I think our prospects for Repowering, but promising practice as we think about projects that are maturing and then in a position to be re powered based on the original place in service dates.

And in terms of basis exposure.

Speaker Change #129: We have it on a limited number of contracts.

Sarah Rubenstein: When we think about going forward, one of the really fortunate aspects of the supply-demand balance for new electricity generation is that we're in a position to establish settlement terms for new revenue contracts that really minimize risk for the project equity owner. When you heard me reference the successful work our origination team has had in sort of driving settlement terms that are favorable, that's at least part of what we're talking about. We think we've been disciplined about the settlement structures we've insisted on. Our track record and the scarcity value of our projects allows us to be pretty insistent about those risk-mitigated structures.

Speaker Change #129: We're managing it I think quite well now as an organization.

Craig Cornelius: When we think about going forward, one of the really fortunate aspects of the supply-demand balance for new electricity generation is that we're in a position to establish settlement terms for new revenue contracts that really minimize risk for the project equity owner.

Speaker Change #129: And when we think about going forward.

Speaker Change #129: One of the one of the really fortunate asset.

The supply demand balance for new electricity generation is that we're in a position to.

Speaker Change #129: <unk> established settlement terms for new revenue contracts that that really minimize risk for the project equity owner and when you heard me reference.

Craig Cornelius: When you heard me reference the successful work our origination team has had in sort of driving settlement terms that are favorable, that's at least part of what we're talking about. We think we've been disciplined about the settlement structures we've insisted on. Our track record and the scarcity value of our projects allows us to be pretty insistent about those risk-mitigated structures.

Speaker Change #129: The successful work our origination team has had in sort of driving settlement terms that are favorable that reflects that's that's at least part of what we're talking about we think we've been disciplined about the settlement structures.

Speaker Change #129: And our track record and the scarcity value of our projects allows us to be pretty insistent about those risks.

Speaker Change #129: As communicated structures.

Speaker Change #130: Great and.

Speaker Change #131: Don't have any one any of these firm renewable power contracts like 24 seven.

Speaker Change #131: Contracts with a lot of <unk>.

Speaker Change #131: Companies.

Speaker Change #131: Wanted to sign and I'm just wondering.

Speaker Change #131: Why that is do you think that the risk reward is not attractive with these types of contracts.

Speaker Change #131: No.

I don't want to speak to choices others are making.

Speaker Change #131: I think we understand why.

Speaker Change #131: Those contract structures are appealing.

Speaker Change #131: Customers.

Speaker Change #131: In our context, when we thought about our business model and our capabilities as an organization and how we want to try to manage to produce risk adjusted returns consistent with our business model. We have established for Clearway energy, Inc that kind of structure.

Speaker Change #131: Just sort of felt like it did not need to be part of how we commercialize the projects that we've built over the last few years and I think as we go forward, we want to be responsive to the de carbonization calls that all of our customers have including.

Speaker Change #131: From the technology community while.

Sarah Rubenstein: So, I think we want to be thoughtful about innovation while being careful about risk, and leverage the capabilities that we as Clearway have. And those together were the reasons why we've structured projects the way we have so far.

Craig Cornelius: So, I think we want to be thoughtful about innovation while being careful about risk, and leverage the capabilities that we as Clearway have. And those together were the reasons why we've structured projects the way we have so far.

Speaker Change #131: While managing a basket of projects that each individually stand on their own. So I think we want to be thoughtful about innovation, while being careful about risks.

Speaker Change #131: Leverage the capabilities that we is clear we have and those together were the reasons why we are structuring projects the way we have so far.

Okay, and then changing topics.

Speaker Change #132: You guys are adding batteries to.

Speaker Change #132: A number of projects without adding energy storage to yoga speaker pickers in California.

Sarah Rubenstein: We have evaluated it. There is adjacent acreage at a few of our facilities that could allow us to think about doing different kinds of things, but there's not a tremendous amount of acreage. And the injection capacity at those points of interconnection is also somewhat limited. So in the immediate term, the highest and best use of that injection capacity is the delivery of Resource Adequacy that can meet 24-hour slice-of-day requirements from our thermal resources. And the addition of batteries to supplement that would be feasible in terms of grid injection and maybe not the highest and best use of that interconnection. But we have adjacent acreage that's modest that over time we'll try to find a way to leverage somehow.

Speaker Change #133: Is that even a consideration.

Speaker Change #134: We have we have evaluated it.

There is adjacent acreage at a few of our facilities that could allow us to think about doing different kinds of things, but there's not a tremendous amount of acreage.

And the injection capacity at those points.

Craig Cornelius: So in the immediate term, the highest and best use of that injection capacity is the delivery of Resource Adequacy that can meet 24-hour slice-of-day requirements from our thermal resources. And the addition of batteries to supplement that would be feasible in terms of grid injection and maybe not the highest and best use of that interconnection. But we have adjacent acreage that's modest that over time we'll try to find a way to leverage somehow.

Speaker Change #134: Points of interconnection is also somewhat limited.

Speaker Change #134: So in the immediate term the highest and best use of that injection capacity as the delivery of resource adequacy that can meet 24 hour slice of data requirements from our thermal resources.

Speaker Change #134: Yes.

Speaker Change #134: The addition of batteries to supplement that.

Speaker Change #134: Would be and feasible in terms of grid injection and maybe not the highest and best use of that interconnection, but we have adjacent acreage debt.

Operator: Thank you. Please stand by for our next question. Our next question comes from the line of Mark Jarvi with CIBC. Your line is open.

Speaker Change #134: It's modest but over time, we'll try to find a way to leverage somehow.

Speaker Change #135: Thank you.

Speaker Change #136: Please standby for our next question.

Speaker Change #137: Our next question comes from the line of Mark Jarvi with CIBC. Your line is now open.

Mark Jarvi: Yeah. Good morning, everyone. Thanks for the time and fitting me in here. I was wondering if you could maybe just parse apart. We've had some discussions on the call about capital deployment growth versus some organic drivers on RRA and asset optimizations. If you think out maybe the longer-term growth rate of 5% to 8%, how would you make that split between what's sort of organic drivers versus capital deployment-driven?

Mark Jarvi: Yes, good morning, everyone and thanks for the time and fitting me in here I was wondering if you maybe just parse apart we've had some discussion on the call about.

Mark Jarvi: Capital equipment growth versus some organic drivers on our asset optimization, if you think out.

Mark Jarvi: Maybe the longer term growth rate of 5% how would you make that split between what's sort of organic drivers versus capital deployment driven.

Sarah Rubenstein: I think once we get beyond sort of the goal of $2.60 per share that we set at the top end of the range, driving above that will be driven in particular or principally by additional investment. I think that there will be ways that we look to leverage the existing fleet of assets that we own within C1 as part of making that growth investment, say, in particular through repowerings, which could take the same individual assets' CAFD contribution relative to, say, the top end of that 260 in CAFD per share and increase it or could help sustain the CAFD generation of a project that is maturing in its age.

Craig Cornelius: I think once we get beyond sort of the goal of $2.60 per share that we set at the top end of the range, driving above that will be driven in particular or principally by additional investment. I think that there will be ways that we look to leverage the existing fleet of assets that we own within C1 as part of making that growth investment, say, in particular through repowerings, which could take the same individual assets' CAFD contribution relative to, say, the top end of that 260 in CAFD per share and increase it or could help sustain the CAFD generation of a project that is maturing in its age.

Speaker Change #139: I think once we get beyond.

Sort of the goal of $2 60 per share that we set at the top end of the range.

Speaker Change #139: Sure.

Speaker Change #139: Driving above that.

Speaker Change #139: Will be driven in particular are principally by.

Speaker Change #139: <unk> investment.

Speaker Change #139: I think that there will.

Speaker Change #139: We'll be ways that we look to leverage the existing fleet.

Speaker Change #139: Fleet of assets that we own with them.

Speaker Change #139: As part of making that growth investment.

Speaker Change #139: In particular for Repowering.

Speaker Change #139: Which could take the same individual assets cafe contribution relative to say the top end of that $2 60, and taxi per share and.

Speaker Change #139: Increase it or can help sustain the cap regeneration.

Speaker Change #139: Of our project debt.

Speaker Change #139: It mature and its age.

Speaker Change #139:

Speaker Change #139: But in general I think as we look to grow beyond $2 60, and cap deeper share into the out years and we will.

Look at that compounding, 5% to 8% <unk> per share plus growth goal.

Speaker Change #139: Most of that growth will be driven by.

Speaker Change #139: Additional capital commitments.

Speaker Change #139: Which again I think we would we would make only to the extent that the investment and the cost of funding that investment would be accretive on an <unk> per share basis.

Speaker Change #139: When we look at our planning horizon beyond 2027, we see very clearly, how we'll be able to do that.

Speaker Change #139: And then coming back to a couple of your comments on internal financing capabilities.

Speaker Change #140: What point would you think you'd exhaust that $300 million of corporate debt capacity is that by 2027% and then were you saying at one point that you think you could grow without issuing equity close to the low end of the 5% to 8% range.

Sarah Rubenstein: I think what we said is we can execute to the midpoint of the 240 to 260 per share range, call it 250, without issuing equity. In terms of growing beyond the top-end 260 per share at 5% to 8% beyond that, that is why we wanted to articulate that at some point, growth in the business model will entail routine amounts of equity issuance. But as the fleet-based CAFD level grows over time, then the company's debt capacity should also grow. So the $300 million, which Sarah had cited, reflects debt capacity that we have for funding investments between now and the end of 2027 conservatively. And the amount of incremental debt capacity we'd have out of 2027 while still also driving towards that low end of the 4 to 4.5 leverage ratio would be meaningful as the CAFD of our base fleet itself grows.

Speaker Change #139: Okay.

Speaker Change #141: I think what we said is we can execute to the midpoint of the $2 40 to $2 60 per share range call. It $2 50 without issuing equity.

Speaker Change #141: In terms of growing beyond.

Speaker Change #141: The.

The top end $2 60 per share.

Speaker Change #141: At 5% to 8% beyond that.

Speaker Change #141: On there that that is why we wanted to articulate that at some point growth in the business model will entail routine amounts of equity issuance, but as that as the fleet base Kathy level grows over time than the company's debt capacity should also grow so the $300 million, which had cited.

Craig Cornelius: But as the fleet-based CAFD level grows over time, then the company's debt capacity should also grow. So the $300 million, which Sarah had cited, reflects debt capacity that we have for funding investments between now and the end of 2027 conservatively. And the amount of incremental debt capacity we'd have out of 2027 while still also driving towards that low end of the 4 to 4.5 leverage ratio would be meaningful as the CAFD of our base fleet itself grows.

Speaker Change #141: It reflects that capacity that we have for funding investments between now.

Speaker Change #141: And the end of 2027 conservatively.

Speaker Change #141: And the amount of incremental debt capacity, we would have the out of 2027, while still also driving towards that low end of the four to four five leverage ratio would be meaningful.

Sarah Rubenstein: That's why we would look from a funding perspective to first the amount of retained CAFD that we have to reinvest, which, as had noted, could run to sort of the low $200s or high $100s in any given year. Then to that leverage capacity, which we would look to manage in a way that's prudent, and then eventually equity issuance through something like an ATM at modest quantities for this kind of routine investment program that would hit the kind of goals that we've articulated. So I think that maybe gives you the calibration that you're looking for.

Craig Cornelius: That's why we would look from a funding perspective to first the amount of retained CAFD that we have to reinvest, which, as had noted, could run to sort of the low $200s or high $100s in any given year. Then to that leverage capacity, which we would look to manage in a way that's prudent, and then eventually equity issuance through something like an ATM at modest quantities for this kind of routine investment program that would hit the kind of goals that we've articulated. So I think that maybe gives you the calibration that you're looking for.

As the.

Speaker Change #141: As the copy of our base fleet itself grows and.

Speaker Change #141: So thats why we would look from a funding perspective, the first the amount of retained cash into the app to reinvest.

Speaker Change #141: Which is it.

Speaker Change #141: Could run into sort of the low two hundreds.

Speaker Change #141: Or high one hundreds in any given year.

And and then to that leverage capacity, which we would look to manage in a way that is prudent.

Speaker Change #141: And then eventually equity issuance through something like an ATM at modest quantities for this kind of routine investment program that would hit the kind of goals that we've articulated so.

Speaker Change #141:

Speaker Change #141: So I think that maybe gives you the calibration that youre looking for.

Operator: Thank you. Ladies and gentlemen, I'm showing no further questions in the queue. I would now like to turn the call back over to Craig for closing remarks.

Speaker Change #142: Thank you Lady.

Speaker Change #143: Ladies and gentlemen, im showing no further questions in the queue I would now like to turn the call back over to Craig for closing remarks.

Sarah Rubenstein: Great. Thank you, everyone, for joining us today and for your ongoing support of Clearway Energy, Inc. We're looking forward to continuing to demonstrate to you our leading market position and solid execution, and are really optimistic about what the days ahead have in store for our company as we move onward. Operator, you can close the call.

Craig Cornelius: Great. Thank you, everyone, for joining us today and for your ongoing support of Clearway Energy, Inc. We're looking forward to continuing to demonstrate to you our leading market position and solid execution, and are really optimistic about what the days ahead have in store for our company as we move onward. Operator, you can close the call.

Speaker Change #142: Great.

Thank you everyone for joining us today and for your ongoing support of Clearway Energy, Inc. We're looking forward to continuing to demonstrate to you our leading market position and solid execution.

Speaker Change #142: Really optimistic about what the days ahead have in store for our company as we move onward, operator, you can close the call.

Operator: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.

Speaker Change #144: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation you may now disconnect.

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