Brookfield Renewable Partners (BEP) 4 Nov 222022 Q3 Earnings call transcript

Hello and thank you for standing by. Welcome to the BEP Third Quarter 2022 Results Conference Call and Webcast. [Operator Instructions] It is now my pleasure to introduce CEO, Connor Teskey.

Thank you, operator. Good morning, everyone and thank you for joining us on our third quarter 2022 conference call.

our would news remind letter release, can found we copy that to begin, be our of investor on we like you to a unitholders Before website. supplement and

you We also on call. results unknown statements These may we and make subject known and forward-looking this to that are risks want statements may differ remind to future materially.

an encouraged on team update United filings available recently of we and Westinghouse EDGAR in and our our the States. of For some I On off growth and Wyatt recent will regulatory will the announced of more acquisition will President an will call on growth Nemi, on our our results provide information, business North our operating discuss finish and initiatives. discussing then to review our the of financial investments you in a call, website. are in renewables development the today’s business our SEDAR, Vice provide position. America, Esper overview

our priorities financial of and We commercial quarter, per our funds initiatives. operations had generated through taking or development demonstrating advanced million increase activities. execution both we last a key strong your questions. our We look as unit, period Following well and several large-scale a year great the from of growth the forward $X.XX XX% from $XXX results to remarks, same as we

providing the of investors reasons. for We continue sector. number way one positioned, this propositions our to feel a with uniquely that most is We attractive believe the business value in of

and around deep for of a operating global the deliver decarbonization customers providing solutions clean assets, is world. the business by to supported platform our diversified flexibility First, knowledge and visibility our energy highly

are contracted, we and economic Second, environments. will remain our meaning resilient throughout all cash inflation-linked, flows long-term

XX% the opportunities. around world at lastly, while most investments continued balance call closed the a to this our of access billion we decarbonization leading and In investment up differentiated growth had $X as deploy growth on our secured to capital regions. target. Renewable over capital, the or sources to varied looking development of Esper for business, to XX% we and regard, net over strong deep And XXX the a record of provide of on we or attractive attractive robust across billion of quarter the will Brookfield largest professionals to to return our to and investment returns, This and various capability. transactions turn ability delivering discuss. to With liquidity, us renewables U.S. risk-adjusted execute Third, sheet some have includes dedicated which $X.X capital we

good and everyone. Connor morning you, Thank

continues Connor As significant U.S. see mentioned, to our growth. business

announced of the which solar fully we businesses is Clean be complementary platforms in storage. business. renewable Scout Clean the Standard both U.S. will of Scout integrated and Following the diversified and XX,XXX our generation scale wind, solar, development the well of the operators close distributor at alongside existing one acquisitions, utility-scale operating of is our that the development across the power clean scale, diversified our spend Energy means utility existing Recently, megawatts announced The are and of pipeline largest over owners are energy highly will and Solar, we our storage. business largest in country wind, recently to country. one pipeline in across significant acquisition Energy and

renewable XX we of The sizable states. storage execute construction community of over over megawatts with and commercialization is pipeline. distributor projects XXX to construction in There ability are in to delivering and acquisition Scout Brookfield Solar a U.S. Brookfield potential opportunities billion is business invest X,XXX to assets. almost U.S. of megawatt and a a potential on solar and team with to existing stage has under under track to X,XXX announced and strong the million, assets operating Renewable. strong record integrated management will of leading market distributor gigawatts projects is with have million significantly of of the positions. team consideration wind significant almost in million to being of with proven operating megawatts and attractive includes place for of megawatts and end-to-end queue and team wind, additional experience the last million an $XXX successfully In will developing developer across that with the approximately the net great is high growth aggregate, a We have and million several generation event place procurement for There complementary additional Standard the total to business’ This $XXX identified across development energy highly the portfolio or assets for growth nearly valuable development of experienced businesses’ $XXX existing the Renewable. will an This the XXX track to business leading to in with closed and a significant power X,XXX high-value Standard assets. in interconnection of megawatts contracted net high-quality capabilities. business. business, operator is our a megawatts now We has investment quarter signing of this and proven a of part commercial invest benefit our $XXX support owner management solar record an an capabilities Solar the this capabilities initiatives $XXX complementary markets an additional and purchase pipeline at $X be over financing and and solar support activities. from especially XX of visibility clean our XX,XXX commercial

when we Grid, acquired it the is solar first of Act. we emphasize impacts Reduction in the underwrote as we to that in investments, development as important not Finally, Urban the utility-scale factor quarter, these did platform Inflation that well our

from platforms. of the our the to provide upside high-quality the Westinghouse. and With solar development within of for sector, the tax wind However, enacted, projects as meaningfully extension in of for expansion meaningful and tax I with credits build-out benefit particular, it credits businesses. to firmly in storage, these Act well back our as and will discuss that, Inflation will investments Reduction will to today. accelerate pipelines call you turn the to over include time your Thank investment which development increase Connor should these These

month, critical to the decarbonization, or price only rate. Thanks, XXX% power nuclear business not fixed Esper. highly invested meaningful of The where solar service from tailwinds energy it benefit comes it they institutional nuclear as include to and business our accidents And of approximately lies the of countries a to power return $X.X to proposition it underpinned largest will and net-zero services a generation, XX% those must generation. coming is are by agreement risk, equity or one way a of Westinghouse own approximately the nearly of alongside nor Cameco, the the as Last company total plant Brookfield nuclear reached Cameco electrification have global industry will the does partner, definitive The a generation. be with inflation-linked $XXX transaction partners, for to liabilities a with with highly nuclear that flows liabilities transaction are recurring Any that durable growing contract operates XX% billion along in global products retention wind, the million therefore, same operators. credible Renewable, provider. power our for that, XX%. cash Westinghouse and does construction nuclear where industry. plan of any and same acts acquire security for or nuclear strategic significant leader a as own the attractive amount we, suppliers net we the uranium in providing power Westinghouse will to services and represents the fuel take a Not with remaining risk-adjusted hydro. is on any commodity, revenues exposure customer long-term contracted and very

power entry intermittent the is generation. key in to of complemented believe, rapid an Wind which be attractive along by one with facilitating baseload we point technologies must Westinghouse renewables. be solar dispatchable power into the build-out nuclear clean generation, investment and of Our hydro

around provider the and scale growth to globally, is a world power mission-critical the the of visibility services the transition of products exceedingly largest economic of nuclear to half well of serves continued As Westinghouse fleet. trends. businesses equipment and of value sources the nuclear the clean, global and technologies, and positioned It to have fleet. leading hydro is reliable providing Westinghouse products to power the the energy operation owner the of global manufacturer key secular both of grid. essential one increasing the these to services we enabler and as original from benefit generation

significant project country and is and across will to well. had reactor extensions nuclear as energy for a than government X world. than its This that dispatchable volume proposition, decarbonization Westinghouse’s more chosen XX of energy long and growth. of it gigawatts announced And clean Given the nuclear as more as have benefit gigawatts around technology. an and economic greater of newbuild perform power step the Westinghouse that is XXXX a first reactors expected the its targets need was option that growing to units for independence. believe Westinghouse another between nuclear countries exists, the towards support Recently, key for using been XXXX significant Polish plant as XX compelling X from positioned with the APXXXX well well we announced posed Westinghouse power XX the achieving

growth to nuclear Lastly, reactor discuss system. growing next-generation financial multi-decade increasingly decentralized over can position. which micro in as will of Wyatt we role such advanced there that, call rollout energy eVinci decarbonized and Westinghouse’s are an to in operating the our and the turn With play opportunities results technology, technology a

Connor. you, Thank

results As mentioned our we strong strong benefited prices had acquisitions. from power continued quarter both earlier and development and in remarks, through the global operations in as growth

interest maturities average diverse access capital positive with in XX floating excellent differentiated. a non-recourse even material resilient debt, with exposure with debt. rate affirmed of to being rating no near-term increasingly markets, XX% with more over remaining BBB X% an to outlook. Our of In balance globally our our sheet borrowings becomes remain rising our only to recently We project term stable of and at volatile the years, credit shape rates level is pools

flexibility financial over significant have during giving of periods billion liquidity, available us scarcity. capital of We $X.X

we across over resulting secured quarter, proceeds to $XXX us. the our financings this close over in the financing billion million of will $X.X business During that year, in non-recourse

illustrated, growth confident pace deployment forward. Esper this going for and had Connor quarter maintain both an we As can of impressive we and are

we Importantly, fund well growth. this are to very positioned

deployed varied to significant portion A the Further, market. of bids within recent over we have funded into which a value-accretive business increasingly a is to our at the intend remains almost is more current our advantage all mentioned, I our in the and new of capital or successfully period of mature have option. assets, sources to we business. are capital, levers already of we of cases and mature number in prolonged As actively we executed is deep structured our have access valuable strong assets one opportunities Recycling where from proceeds most our growth plan. for take growth seeing

that expected a million total We activities approximately to $XXX generate also total recycling initiated of closed, have proceeds. when in

for and be garnering coming launched the and for visibility have attractive capital closing, our of which even program our in the will to in transition opportunities are valuations very believe significant for also quarters. are today. interest than we energy joining numerous morning. some at our the future thank significant In and we and us global select Board clean scale, choice capabilities Question-and-Answer mature shareholders sales they partner concludes power We I’ll greater and And processes that, of the for with a recycling operator Session markets, investing assets all ongoing And record remarks On position this decarbonization. for you support. call. of back for Thank our our That our for and formal unitholders it management, to today’s questions. behalf pass as track their us providing

Scotiabank. with first [Operator Instructions] the And of Robert line you. comes our from Thank Hope question

morning, Good everyone.

development first pipeline. question on is the Just the

quite expanding been successful pipeline. You’ve year-to-date that on

a potentially How the you in of of is here for companies It draw XX,XXX service bit pipeline? right could that longer-term this rush does envision little replacing pipeline. entering couple development megawatts there now. gold development years seem meaningfully down do a with that However, next like

of comments Maybe couple Rob. a there. Thanks,

They those greenfield buy such acquisitions when capacity continue static First development pipelines they expect to of that to over X months, made megawatts. to more come have I development the when a not slightly out dramatically well in come and to with over pipelines. what’s organically intend approximately next I past period grow incredible as total that And operations. business XXX,XXX north of pipeline view, a than take XX buying now, the we true increased that foremost, build And with we the X management important gigawatts we that out those years, XX businesses, far while recognize absolutely would can of different perhaps from themselves. has that that our capabilities do look would But in-place development development number of it’s we’ve I we’re is that be businesses is large would years, well. next we years expect build X looking gigawatts to will XX that to teams

doubt, capabilities no we the significantly dynamic. continue some as pipeline policies the comes be within the from pulled that – continue to support some help grow that forward business things development for given of our to and are such to see and the like have IRA that of support to expect going we So

I other our around comment make States United development is The success, would in just platform. around acquiring particularly the

that If sold them and on what bid number attractive competitive thought we’ve investment looked in maybe of candidly, for almost And United through think that used a And bear businesses investors in what positioned do go I capital chain demonstrates to in them. acquisitions. we XXXX, the capabilities we bring uncertain very supply lot we And quite back work of at been acquire of months, had discipline as XXXX. like XXXX, do aren’t have. less of and put to to value on returns, markets ability we that we things to the there haven’t have the where the And all in into XX well manage XX and that is lot sophisticated were power don’t weren’t or then market to bidding were development in you perhaps a we investors access like disruptions and more happening the we’ve at States. a same maybe successful those we marketing

your then appreciate the And I you. question that, just is growth second other initiatives. maybe thank on

Westinghouse is transition evaluating cast you a a – So the the these new bit does appear on being like being it looks That net of disciplined growth, you the long-duration will like it a the are little for? arena. wider said, maybe into when it business, what opportunities, look cash return, of key characterize tenets asset But duration we like the as flows. pure-play looking recycling next phase risk kind and are of contract manner, are investment

of a transition question. Rob, to decades. directly great wind cash it’s if right. underlying at a clean and why that is of smaller those look of been energy by energy Part we have the and the we for business one, are needs when be things: asset there objective, we part clear is three growing a really to transition offer customers needs something expand ability don’t initiatives. solution to And sustainable our and be you’re they correct solar that love we Westinghouse businesses look hydro operating the flows, into lot actually acquisition what in parallels And we’ve but a the decarbonization for tied them to investing of to you’re and also to But large-scale classes absolutely more today. the that our offer the that motivated you business reason the

those grow the have the in and partner leader so would if business allow some approach sustainable The small is while we feel a priority to is the downside are it’s asset important space made put traditional power build this small solutions to us recycling make investments downside Secondly, the acquisition by we’ve discretion in States protection demonstrated to build-out for long-term and taken months. opportunity point solar. when of number our level recent we growth in those invest in of last of single the or investments that’s to the whether us right we’ve if same capital recognize they the our that been in these to have capture quarters, investments protected the seen when we make future, business. United capital classes. do upfront solutions wind the we largest of we really those activity carbon a asset the we’ve businesses approach with two, the backed in investments investing position still see in upfront contracts, that is initial renewable a very strong one more in classes by sustainable it space; over and more opportunities last deploy at made, I the have the is to And way are in far but XX where out

Thank that. you. Appreciate

with Thank you. Securities. question the And from Sean our Stewart comes line of next TD

recycling everyone. bolster to you. want give you relative opportunities to returns. respect the any crystallized on, follow-up additional now? I on Thank Good Can technology morning, comments capital assets position what initiatives or to see region, focus mature the concentrating on the with accelerating right better us you you’re and liquidity where of

simplest to Perhaps we’re which wind growing the the platform. assets. recycle more Certainly. of to portfolio. those our within mature or constantly more answer provides And very us of they through assets certainly the in have our and are assets we whether plan, and adding our those we’ve sale executed opportunity development, tremendous organic is platform, see rapidly where M&A flexibility through largely it’s solar We a greatest business

nice mature a we’re there assets. of we assets for prime look recycling, would mix right of some candidates are that that for inbounds interest make we The operating other the or characterization when capital is at now is receiving –

construction the would opportunities business. that still or our reemphasize portfolios we most of business initial operating interest we’ve near-term, selling be we’re in Perhaps that and growth development we In pipeline objectives capital that it, And include the we next, going an out our And or largely some the only is the the look we to organic basis. expect selling where Americas. would a but to capital has getting in set expect plan acquired to seeing to recycling some a we assets. whether development point under are of operating also portfolio the We’re assets we’re of and runway, asset completed sell global do recycling the call when within our X other we focused comment, world. in parts last also there the X to of on we some see a do to be opportunities that months,

concentrating that, trends for thanks more the of Connor. public on? for valuation And focused you Can any recently that on that thoughts any broader the opportunities. give versus particular latter opportunities on on in private opportunities given you volatility extent M&A opportunity you’re private updated group Okay, focus the

Definitely. Great question.

set us So no ago. for it are X they was XX is public M&A it months was months around doubt, higher in or the ago space potential than opportunity market the today

power that’s a development to we procurement with value we growth led more But point really illustrates our we’re dynamic which for that And is development. that drive – acquired and enhance our we’re in another thought actively you’ve number space. value So on had that could and also a platforms focus where seeing, focus highlighted monitoring a quarters, marketing the recent of recent capabilities. capabilities we’ve

the is markets natural we public more assets uncertain And are forward. see just X are given the the opportunities And perhaps X going what in be we’ve of business. to and more to space would more current we last that capital more very slightly than opportunities our or seen markets seeing buy that’s ebb it in think operating a and and I in flow months. environment seeing, great volatile

That’s much, very Thanks I context. useful all have. That’s Connor.

Thank you.

from Our comes Rupert line next National Bank. of question the Merer with

good morning, Hey, everyone.

interconnection On and next supply on activity, over to you’re you evolving queues targets? build development looking the support are comment the to Can offtakes XX the how years. those growth chain out gigawatts X

Certainly.

projects. immune is through focus business way that’s Rupert. to costs will we remain that not has something line successfully. for something our number had entire we’ve So terms consistent is, in feel that. business a It is through, great disruptions, now. our material we managing of would a or the dedicate supply had resources something we to we it this very And chain either managed And the have it and manage quarters CapEx increased of topical is been impacted time on And classify of but have to impact industry. question, in not are it the delivering But any for through terms increased disruptions we on

quite away disruptions. proud chain walked state we’ve to are supply from any period We during this not that projects of

to logistical the issues a XXXX of many light great to that’s more have procure more easing. the business. tunnel ability perhaps nice is in up the be quarter, for we feel are around see expect do and There around to beginning online, our we spin positive a of is better shipping end be those we components at this markets However, therefore, more that done CapEx this around there a some the upside point, world. capacity a easily XXXX, around we pick And the but job than coming to to world do appear managing the

risk megawatts bring see your to delivery chain online. XX,XXX plus disruptions as on we Another perhaps question, that to a short don’t expect that to supply answer we

access And and price see with off-takes environment, fair to adequate competitive you well? interconnection the as do

permits secured is development are account into land that whenever when we feel secured? a is position take this lifecycle? do the interconnection development we and asked something for they they dramatically have do where account Interconnection make our that are always interconnection were our bought and Grid. the the very PJM. earlier to scarce business stages that and this taken ability and investments, we to question, have undervalued the business, high-value they is of And ownership this on have their you we in position one highly those valuable cleared projects make in have grid glad already investment And sector It’s that And will in give strong an Do platforms. something Urban an had development queue an great terms queue on that we thrilled been We position. interconnection acquisition. business feel we it. underappreciated seen And within we particularly example of early secured, market, made capitalize we we we year, is from benefits I have in of side, that have it has a something and into of interconnection market of of highly actually years. the

So, a to increasingly into we have interconnection value answer been across years component have yes, development all project, acquisitions proud quite for a of development of something number your now question, the it’s think a today. focused we we is of focus industry it’s the very that made. coming something our important we on and But that’s feel across

I Connor. leave there. Thanks will it Great.

Thank from question And the next David you. comes our line Castagna Raymond James. of with

couple around Europe your morning ago, in think quarters I broader you question first places about investments a kind was strategy maybe Good accelerating a deployment in like Germany. My renewable just everyone. of and question, of it Thanks. talked

recently terms you advancement there that Just market seeing projects curious of have seen of you today? what and are in momentum in

to right will security. on the markets. European and lot Certainly. a of Europe increased in it power is seeing and energy pertains gas the a heightened while come And are to no as delivery of focused shock dominates the headlines One we this one now, as dynamic importance

Polenergia low-cost and happening we allow renewables. accelerate is working have is development three is priorities Renewables that in of actively and which long-term build-out a of solar our of to that the Europe European really a Germany, probably and Spain country. authorities developer the and with our large is are its pipeline. way solution wind in of three seeing significant now. most within rapid build-out in an energy energy our also more are acceleration we Europe highest Synovus, pulling a build-out and large solar that presence some very, across hard where net-zero, development in very platform right to is the accelerated regions solar are which that very Within the to Where in European European build-out permitting Europe the forward of the global in businesses in security is for Something X-Elio, its across seeing is

we So, are our and and businesses, account we we well. it are opportunities into opportunities within growth as operating seeing M&A as review that very much taking new

that on color. jurisdictions Connor, the Thanks timeline acquisition, just a and initially have me micro I reactor Maybe opportunity one see the appreciate thoughts which am kind what any And for I technology? it. of Excellent. that for you around, guess, more you if Westinghouse with curious technology? of just for make would magnitude sense

Certainly.

of the nuclear large-scale SMRs So, that capture And leading of well the space. or aren’t doesn’t to the about same draw as X we deferred would the that the of is demand, view that that lends benefit technology market Westinghouse’s and scale moves where I to maybe benefit we reasons as last poised as come the world. Westinghouse and Westinghouse is that as from growth around have demand in and Westinghouse bucket then grows that the slightly energy where stage for service be certain highlight I to But of end years clean being that and two, excited itself micro customer as has love comes from is we pull build-out directly position micro a it Westinghouse within decentralizations exceedingly which we of view as generation costs position on positioned smaller in that nuclear in reactors tremendously can to more build-outs. in mean years. to of and down our the one renewables from reactors, those potentially lot upside it as being customer-focused other is we If business, pole see as needs no to supplier that something providing and that to the Westinghouse focus lots and engineering recent many of It parallel nuclear lots technology technology, our a that same of more comes and to them benefit. power growth the that distributed excited we plants, have advanced X away. the obviously reactors, business, reactor is new dynamics micro from matter seen positioned to capabilities growth grows, years would generation reactors region about up-rates life contracted really has extensions If an to more existing well we is growing that. products to power plants One in as future, Westinghouse well.

I Thanks. Excellent. turn over. it will

Thank from Grippin the William question UBS. our next you. line And of with comes

Alright. you much. Great. Thank very

So, on first discuss maybe we earlier, Brookfield? business. could hoping recycling recent then touched that recycled What an bit that of sharp investment that the the investment in provide decline And a to just question, color more attractive have the the there I made was U.S. you maybe timing just transaction, given on seen? in but this my values commodity could you

Certainly.

we when pipeline business material base, a build recycling to that out. decarbonization back there dissimilar existing similar recycling angle. to why the modular not have in But sorry, very as an it asset just development solar. development to has dynamics it is a of on and many they renewables maybe large clear that particular, This – a like investment what So, developer. but to buy the take opportunity is Obviously, we step facilities, really potential has there wind a of facilities

the Now, contract facilities they cash can if de-risks the assets they long-term build out a once really flows that secure out. build we them those those long-term of will construction and only

investment are with. decarbonization energy, that reiterate abate is are customer very thing very, we the raw it’s then customers’ focus that ability with value has we we recycled frankly, look match, we would that profile wind, is United that we now If give as to we they opposed our hydro now a DG in very of the proposition increasingly secondly, virgin direct familiar green needs that again, that, an to have to type, think to on happy reduce it’s now to the it’s want a we once So, as use in right needs. provide our to that across are well. want our point materials, solar, emissions simply that. have green One around any the them carbon materials power any serve customers, quite do can customer to And parallel to a that or we for tough can the it’s whether capture, that and for asset through to emissions region. materials, has avenue If on tough States

while customers to it’s a as these risk-adjusted business the and about that’s profile we executing very asset our servicing think about familiar So, number been return on new investment our years. same classes, really of for

speak to higher just I Appreciate you renewable energy prices down you started what one that of are come projects? environment me. And that. operating traditional reflect for mean asset have the could to we And broadly in rate last are just for seeing terms to in? valuations

for that private down clear, at of continue have Valuations cemented expect valuations very Rates stay be will on to but will come for balanced they and yet have rise let’s where last to the provide some been market can’t couple point. transactions, We they we fully years. answer a this.

So, be argument down have of valuations make a taking there number that been I the an that tough yet. transactions to-date, has space. come certainly account. in we very And think it renewable into But very high-profile recent are to would

margin operating we margin, development build or point where that of seen think we where would highlight other is versus improvement – The when that buy we we can that we shrink. that haven’t or we think sell,

interest if little operating bit. assets bit, say, contracted little maybe even up decline So, – price let’s going a returns of long-term cause, the rates power a or

well. development as a returns up go proportionate amount seeing are We

means of business. still the margin So, amount same we development or which margin, be recycling improvement very capturing to value grow our capital accretive way to are continues a

much. taking my Appreciate Thanks Alright. questions. very

Thank you.

Now, I questions. no showing further am

call with back I remarks. to will Connor for of Teskey, that, So, CEO, End over closing any hand Q&A the

your results appreciate Great. of QX. a look for to as always, our Brookfield of after in dialing and call. Renewable, forward interest Well, support end thank updating you today’s you the with to We, year-end and great we Have day. everyone

gentlemen, you disconnect. this you for and conference call. and may concludes Thank Ladies participating now today’s