The AES Corporation (AES) 5 May 232023 Q1 Earnings call transcript

Good morning. Thank you for attending today’s The AES Corporation First Quarter 2023 Financial Review. My name is Alicia, and I’ll be your moderator for today’s call. [Operator Instructions] I would now like to pass the conference over to your host, Susan Harcourt, Vice President of Investor Relations with AES Corporation.

You may now proceed.

operator. you, Thank welcome call. and first XXXX quarter Good to review financial morning, our

Our information which XX-Q making SEC. related our and materially XX-K may press presentation release, and to results financial in are factors aes.com. differ our we cause recent future There these website Today, the are discussed will filed statements. be statements, with forward-looking from many that are at on available most

along with between found website Reconciliations and on measures non-GAAP presentation. be can the GAAP financial our

Joining Coughlin, Officer; our our Officer; senior me Andres and President Gluski, of this morning our are Chief Executive management members and Steve team. Financial Chief other

With over to that, call turn I the Andres. will

Good joining morning, first for everyone. quarter our thank review XXXX And you financial call.

far discuss business give I this year. very financial are CFO, Coughlin, on We And our our provide and key quarter performance so will results updates. and Steve more detail will our outlook. pleased with some progress first today, our

X. Slide on Beginning

release, which As introduced AES you may we of company and reflect greatly is business better our strategic today that the new simplified have growth. seen pillars the in our future press units,

portfolio for We and our businesses. strategic giving a our our overview at Day an Monday, our expectations renewables be including and update strong on review growth on of an will Investor broader transformation utility

with first XXXX share line Our our XXXX, in adjusted was per expectations. $X.XX earnings in quarter is compared with which $X.XX

reaffirming we X% rate to and growth results XXXX $X.XX to XXXX. are business, these the earnings With our through annualized our per are underlying target X% we our guidance across adjusted performance and $X.XX, of share seeing

X. Slide to Now turning

customers operations including both in from in for international continue We U.S. U.S. the renewables demand and strong markets. to internationally, with corporate see

customer year, for XXX Brazil. of have in we renewables, technology with wind XXX So including megawatts a PPAs U.S. this far megawatts of new signed

negotiations next our additional XX years. signing over on in meet the gigawatts We’re for X to XX PPA projects of several large remain track and target to advanced

release additional Reduction inflation that directly an of of into approximately energy XX U.S. being located elements month, estimate increased how of in of pipeline would This our developing. U.S., translates past Department the Act returns gigawatt guidance for the the projects are in credit. can clarified. IRS which are projects clean or In qualify and key detailed the higher on IRA communities and energy the the projects a XX% bonus X/X qualify, competitiveness potential tax We of we combination Treasury for

requirements department treasury of the awaiting certain guidance including IRA, clean the currently are tax production We for provisions credit. on hydrogen

hydrogen which means advanced green Texas, of in emissions co-locate green developing the of project plan largest to that the would U.S. with carbon gigawatts the Air projects jointly the electrolyzers. lowest project This Products. our possible at have in project reminder, known in We the X.X a renewables hydrogen the U.S., As any we new are with

project a which coal the will to located provide infrastructure. plant, Additionally, is decommissioned existing adjacent the site significant of

qualify tax attributes the hourly possible any these include indicate that will energy the that the of All highest scenario. in the should project credit fact and for matching

X. Turning to Slide

construction. is already contracts Of XX long-term now are Our which signed backlog of around roughly projects half under with gigawatts.

We milestones delay. without continue to to robust we and supply maintain continue hit our a chain, construction

this than online X year. of We solar new gigawatts battery and more bring wind, expect to storage

companies us As fastest-growing double our we bring the renewables renewable will years, installed projects the in in nearly one currently of world. we the backlog making online in coming capacity,

X. Slide to Turning

April, the business. of included low-income expect the and The as to final end positive by from also unprecedented settlement In growth commercial, support and at third happy customers. to residential, Plan, AES Ohio or track We approval we puts a AES receive are quarter. a report Electric the comprehensive on ESP settlement X Security signed for in which Ohio staff development agreement received commission us broad which its industrial signatory, the for a

than to one still X expect of With utility rate with businesses programs, in state. the country, double fastest-growing investment the XXXX the Ohio, place, in the existing in we our along ESP base having lowest our while would AES of tariffs by which more make end the

Turning to Slide X.

of reached a Maryland, will plant also coal the by the major $XXX towards exiting receive We milestone which terminate million. at Warrior of We Run we payments the agreed to total end in XXXX. PPA for

capitalize location retain transaction is existing will site exploring and We and on beneficial control We that valuable infrastructure. very for are see new of this parties involved. the uses its all

that X.X for signed X X. gigawatts state will of legacy the transition Warrior to extensions assets of extension its at The These our of the how the of scheduled Run the in to this and energy year. electricity. more good transition. retire liability help from carbon to agreements efforts the lock and California’s Southland at to units operations of will of previously grid generation time are legacy end additional are plans the Southland both while years. Moving upside examples over gas We of infrastructure our extend The of Slide California monetization existing in meet needs supporting during we to contract value source the units creating low were

Monday, and new adjusted will discussing growth be rates EBITDA long-term segments we of view cash our an Finally, adjusted will XXXX our per holding business be parent I earnings long-term we free providing and Investor sharing on flow. share, as where mentioned strategic through company, the earlier, Day for

to would that, the over like CFO, Steve turn I With call Coughlin. to our

and capital Thank morning, Today, XXXX parent first you, our good discuss and Andres, I everyone. allocation. guidance will results, quarter XXXX

XX. Slide to Turning

new Andres our our reflects to new and It portfolio. all Units our experiences excellent Business we in simplified across This Strategic our organizational management first also to AES SBUs. markets. continue customer or structure As business by and aligns focused operational launched line very synergies delivering mentioned, teams quarter, the maximize

and will SBU benefit current new simplified which renewables and and AES, our facilitate utility and of segments shareholders reporting Our new highlight growing potential rapidly businesses modeling analysts.

hydro in technologies, as infrastructure includes solar, which new our and energy includes Indiana, storage businesses green our and which which thermal Our Energy investments Ohio as which Fluence AES LNG energy include new and infrastructure our wind, businesses, AES of energy as includes business AES composed generation and utilities, Salvador, mission. our new such SBUs future our and and innovations businesses line hydrogen support well business Uplight renewables, technology

called interest corporate the have In insurance which corporate our a we addition to in captive SBUs, level includes debt our also our and expense reporting program parent segment, AGC. G&A associated

Slide $X.XX XX. $X.XX to quarter the Adjusted year. for versus Turning last EPS was

detail Our favorable was I business shortly. will discuss in more year-over-year, which

rate. by expense interest also impacted parent adjusted and results were Our higher tax a lower

Now to Slide XX.

XXXX of $X.XX track on guidance achieve range $X.XX. full year adjusted We EPS our to fully to are

from a expect sales, on at higher We offset and as mentioned, this year. higher credit interest have previously revolving least year. from from This we new significant contribution rates our a facility partially tax lower expense incremental and this renewables rate contributions is marginally by parent of debt higher LNG $X.XX

toward is As are in X/X the typically the case, of expect half. half This the second the earnings our we second year, approximately weighted our year. earnings heavily of to occur

track from the of year coming driven which over backlog by contributions in X new projects in including solidly be businesses online, for will our on primarily remains gigawatts to Growth completion. go

through annual to growth We average are target also our reaffirming X% XXXX. expected X%

XX. Slide to Turning

new we As EPS, EBITDA press introducing continue as are have a metric. in seen adjusted reporting our you release, we also while to may today, report adjusted

high results. an grows is of As very in the business understanding believe adjusted renewables business portion we at our extremely informative a EBITDA metric rate, our

First, it aligns well business our with cash generation. underlying of performance the and operating

I very attributes renewables before is And this impact measured our second, using EBITDA PTC, SBU, renewable our EBITDA, tax with tax to adjusted valuable adjusted U.S. separate can analysts U.S. from for will comparisons other be new the reported the quarter, using renewables. will so results pretax earnings of incentives investors SBU contribution, and discuss exception adjusted which facilitate that with Beginning operating the of utilities. utilities financial or

guidance year during our Investor SBU full provide Day will Monday. on We by

Adjusted SBUs than by this prior normal renewables, higher our was EBITDA performance by million $XXX LNG offset year. U.S. the X slides. sales new in at of the utilities. was versus driven quarter I’ll partially was growth cover our the quarter and impact next but weather first This the in of warmer million $XXX in

higher our was of winter XX. and by our renewables higher Utilities Panama the wind higher investment facilities development of prices SBU EBITDA a spend facility. wind but level as weather by continue expense, power generation our as renewables our Slide we contributions partially result in warmer-than-normal Bulgaria interest Lower from primarily and offset a Higher up generation ramp lower by higher rate base. businesses. offset revenues our was impacting and mostly new at with in Beginning was PTC higher driven at partially to driven on by continued SBU This our

of PPAs, availability Southland last primarily SBU LNG margins infrastructure offset in our coal energy Higher Hawaii plant partially at coal EBITDA and retirement lower lower from and our higher sales, reflects by the Energy. year

EBITDA Technologies Finally, improvement higher our SBU at New and in Fluence. margins gross reflects at operations a Energy significant

XXXX capital to XX. Now parent plan on allocation our Slide

free to including to Sources reflect $XXX cash, million and $XXX to of approximately parent of discretionary $X $XXX $X.X $X billion planned $XXX asset of billion flow, million from issuance. to total sales cash billion $X.X of billion million parent million debt proceeds

planned On the capital. can right-hand use side, our of see you

approximately equity well $X.X share We on increase of will as units. This announced go which this utilities. as the common including the return consists nearly shareholders toward billion plan coupon previously new dividend, to of majority and to We renewables our to $XXX the invest will million year. X% growth, the

will on future we’ve each our and Investor we new Monday, SBUs. our summary, the our financial provide year. AES Day overall the made for on on and detail great for At strategy In of of progress commitments

EPS, with through you flow. will I of rates cash also forward XXXX parent growth look provide to long-term EBITDA adjusted talking free adjusted and then. for many We

back turn With I’ll over the call Andres. to that,

$X.XX hit adjusted per are our to Steve. rate X% progress growth pleased our In $X.XX XXXX annualized target you, and summary, Thank track guidance of to to X% our share we remain with through XXXX. and to on date earnings

customers. from see We demand for to corporate and renewables continue especially strong our

and planned. projects are progressing supply chain is Our our construction as robust

paves by plan for AS for investments later this final electric significant year We’re the also utility. new security of Ohio, encouraged the approval the agreement framework at which and way settlement our creates the in

plans are Finally, operations having we the the legacy success X.X of contract the terminate the of and successful indicative we see as shareholder of gigawatts Run South units in line extend to maximizing our Warrior assets our negotiations forward Day our XXXX. value as around on existing growth more look strategic update from our including to details transform the through Monday, portfolio. broader we providing a our guidance at and Investor We

that, up questions. would like I the for call to With open

Instructions] line of Morgan Stanley. you question first with [Operator The from Arcaro David Thank comes the

You now proceed. may

effect into question. renewables any risk AD/CVD thing some after if be seen on, there and for legislation were One thanks to come your morning good back I the taking to would outlook there. passed Hi, just my check Senate to wanted growth we’ve House the tariffs

Just that risk. curious how AD/CVD longer you term, mitigate view also just tariff how risk that you and

risk honestly, Yes, whatsoever. any see we don’t

in it say, this it. to XX tariff I all and the President that setting and was the year votes, June And when have we holiday past, for we that need off. for the to next was -- by next of panels the be believe year, -- the will have let’s First, expect rolls the year, by tariff,

So for expect the we’re and in we after good supply very XXXX. coming have in to that, XXXX from And shape U.S.

suppliers getting through problems UFLPA. under no having from our the We’re

the best I anybody. we’re of in really, think So shape

else I have don’t issues to And I due supply panel say know project a single delayed anybody -- that’s to think We date. that. if solar something can not

there Excellent. I point year, megawatts year? pushed are in year? any of to curious, for That’s next projects Any the getting the just XXX visibility could potentially the at And that this into but then visibility get completed updates this increased helpful. was

the fourth supply as place. as I an year, are well, in my is going can’t of couple in particular doing doesn’t follow this won’t this would profitability and year going of remind value but we it they script, affect everybody issue. with this the If look, a But quarter is now, in that’s quarter year. have weeks clarity and we we until to not in project we know the the to they’re But -- fall until we we’re But chain. they’re said greater next. update and of Everything Look, the give of at all. come well progressing I of accounting in say It probably you fourth issue. any later,

if debt curious that That run about corporate there one on Understood. would how specifically point you that if And makes the rolls with be if quick off? And the it was there’s used of Yes. down any there as think broadly use gets at just EBITDA earnings other sense. you level? level of or I curious contribution more project. Warrior the paid that proceeds to question. Is for the then would project that or

There this. Yes, from definitely hi, earnings is is Steve. this

And roughly so PPA effectively, years we’re monetizing the year. this the remaining of X

earnings expect we’ll so to through and an this next have middle of And obligation the capacity recognize year, we for year.

So will roughly XX commission the agreement be XX, earnings termination in. following months the approval comes recognized this over over when

it next very and this little half in, comes about And here. half year So say if pay there’s June, in debt year. to down probably

you this payment monetize And that sale in that on -- capital if stream, our is saw proceeds that’s slide. in these this this terms So is then of likely X-year -- year. but sources likely will our we’ll year, captured a this asset

business. the that will used to So be the growth of fund

so perfect. much. Okay, thanks Great,

with Angie comes The next of Storozynski line Global. Seaport from question the

proceed. now may You

Good morning.

about So understand least being if correctly, Monday, see the this it I higher example, going about talk I EPS a EBITDA. to I that’s on having and at it. renewables depreciation however. assets, for transition more know from levered And than thermal we’re rate It’s how to

only very results, quarter the right, renewables the first total right, that from one small, seems looking issue to EBITDA. there’s as So at the we’re here contributions

that’s So one.

ways you interest adjusted understate of again, case, how benefits, mean aware, also, versus you’re it minority And EBITDA what peers the there’s tax inclusion I your different as for no are peers your are there report. the in your which, adjusting EBITDA. might show

to into know EBITDA but on So transition, anyway that -- this it Monday, please? us going about ease I just we’re and talk

Angie. Well, on I’d And XXXX adjusted we for to earnings through Sure, per say, continue provide share adjusted earnings be we’ll as question. the first, share Look, we guidance Monday. guidance. thanks said, providing per

giving. make to EBITDA as want adjusted I be that clear, adding going perfectly but to we’re which So that an is indicator we’re additional

into with partly performance projects. partly, And to of has greater the clarity that and give it’s our of renewables to the our of sort do lumpiness

different an the that’s that also people the reason our helped some giving real renewables, infrastructure. if to utilities, businesses, It of for we’re do so, So additional of one. example, parts

clear share XXXX. So earnings per I we want providing make are through very to adjusted that

have, pass Steve. questions going to ahead to the I’m Regarding other that go that and you

Andres, Thanks, Yes. thanks, Angie. and

business. this understand So definitely, important to our that we’ll and model But be Monday. about talking some is goal clarity we more give really to on the here is think the

and EBITDA, closely Andre attributes the we’ll the the give we’ll the underlying adjusted and then and to the as from EPS, attributes. So cash we’ll give plus of said, sum more also which adjusted also performance generation the PPAs aligned business is tax tax then give EBITDA the the

and we So cash. components different the understand and package think that is view to earning the attributes. complete tax a it’s and people be the how helps truly generating the business of very PPAs From going

perspective, an debt, help need to we I subsidiaries. valuation us Okay. the the among And allocate trying also can corporate across then how -- are you right, leverage out how EBITDA part the these the we from to allocate of figure sum again, move to corporate if to mean, to

in to now, ahead, Yes. the business. Utilities. in renewables our utilities X.XX the market. able about in separate reporting is all our debt here close About of in growth of and certainly, we U.S. And to the I then renewables XX% XX% for is be most growth we’ll look the and and as mean,

lot how a help of have good understand So you’ll do I that to allocation. think to detail

Monday. guys you on See okay. Okay, Thank you.

Sunderland Storozynski. JPMorgan. next from comes line you The of Thank Miss the question Richard with

may You proceed. now

it left morning up the the and today. SBUs. new for thanks Angie I’ll time off pick good Hi, Maybe on where

hydrogen where the like the shift you this in calling you specifically in? side. SBU, in can the feeding involved out just to breakout speak are represents if hydrogen? Or Curious to of renewables technologies, more to Turning thinking to there be green the a you new energy relative

leader think I’d what be we’re of have really Yes. which Thanks for We we’ll a here. a very that the on interesting Look, we green is projects. pipeline, question. hydrogen discussing say Monday

have U.S. in projects here also lowest project the We carbon advanced But and have we in most Angeles. Texas Los emitting in the

have projects We in Houston.

Chile -- for in our or have the projects the we have corporate in for We sector. and mining projects for export, Brazil clients

we’ll color providing So more be there.

for the of our is for do the with the the the really to And specific the grid. electrolyzers all is in Air it reason will Texas, basically co-locating interconnected as the the case, project joint Products. example, renewables value with be we renewables the co-own venture partner Now well maximize electrolyzers, that of because though even as project with the

be use occasions renewables not electrolyzers. give grid is to actually into the run a you in profitable to Texas most could hypothetical So our and the there inject where polar of just the them vortex

we all aligned. interests our so of And to wanted have

be also in hydrogen will would are of green where we’re it’s well. selling but own there which Air the with to selling renewables. case ones we some In there other corporate projects we like So possibly take-or-pay whom customers Products, the to as that already a electrolyzers Texas, be our selling

next it of you So next technologies. that’s looks at calling terms for out. Also, as know, reason what’s AES in the

So we’re what that so look also, help produce us it for cheaper I would technologies at we there say, clients. can and green better new our hydrogen, have

reason calling the that’s out there. for So it

infrastructure, with it. called you disclose are how today? that able is Got theme, the clear. much very SBU of Sticking to That’s energy

Yes.

roughly base in for infrastructure includes sales and example, bit down some retirements that of gigawatts have in example, but of energy for gang already including, Ventanas, roughly of coming coal rapidly, and today. the Vietnam, shy is of we’ve we and what’s a some the assets that’s little of the retirement that so Mong number that So X of today, Chile, announced in

percentage of a SBU EBITDA Just this on or basis? an basis contribution

Yes.

talked $X.XX EPS So about coal of it’s coming is from what today. about on we’ve a is percentage, so

away. is necessarily -- important that’s not going that is what’s all Now

the under in For Indiana X in integrated example, are Petersburg units the of X Indiana. converting we utility

So other we’ll actually conversion, capital where And growth have proceeds this conversion and these. increasing -- course, cases, we of from the this do the investment utility sales rate additional some will And the asset. are be in opportunities segments. from earnings rate and the leave to for sales, and then, a so looking there new renewable then into will is recycle those at base gas that then be there’ll from to base

$XXX Got to announced me. it. to million asset more million are relative for Run you termination $XXX with Very where consideration then transactions closed just currently of range? one the to the and helpful. that Warrior And in sale target, relative

Yes.

So initially And -- we exit -- a been we that, had significantly really I mean this year already to we ago. prior announced coal reducing portfolio. our but

So portfolio at we’re point coal and XX already gigawatts one X%. was to down around our

the on going We meet So already to years. financial have we new saw reality we’ve year program executed many saw some exit think that our which AES path. to the this pathway to the that thresholds coal, is we of ago as is bright investors over to line commitments attract a X/X fully And and here.

tremendous I announced, we’ve going continue. of either already, to announced through visibility have how remaining retirement and sales that the into exit assets, additional and sales these think not some and yet we’ve will that made then we progress So we conversions we’re have that

the the good coal. earnings program feel we and good even very about trajectory post So about very

the -- But numbers just sorry. on

Sorry, Andres.

No.

would markets over just getting what we different Just portfolio, of is I simplified like add out time. our that have

a way that value. it done think shareholder we’ve in maximizes I

we’re same think with doing I the coal.

to in think to contract in or need. make run you’re clients, demands But could the and example, or provide this tying years we’re shows and renewables dispatchable that BHP the can I to able ago, way a have really we cases, transition the meet accelerated the for the energy some Chile batteries that capacity money this faster. hydro perhaps where monetization, meet in our we of from some So

I mentioned we feel we program, we’re So about well the it. just on that executing think very good and very

or there? Thank low quarter? Warrior rest the that $XXX any $XXX gets proceeds range future the the either, you way targets of it. Got Jordan guess, did is And XX just million receive I announcements? on the Or of you. million, on Run the But you the then most is

We renewable that number recycling. had in is so included the -- asset also or business the

So we to capital that operating of into had of growth it assets renewable. closure new recycling that the in portfolio renewable

then also not type them important higher growth as Once We program an to down sell derisked part support recognized that’s but both help the we’ve rate capital our So online, a capital. we’ve we of them here of exits the low-risk recycle business. relatively returns credits. the brought just tax and is us as renewables projects, in way improve coal, we well

the works sales some the sale been of you closed, and part as that made come this has but But towards the progress then and the additional we’ve asset target already program. that that’s number. there’s year we And sale been that in year. Jordan not announced, have sell-downs possible yet point So out, then it’s significant could into this

the target out. laid So we feel that very about we’ve good

Perfect. thank Well today. you See you on for the Monday. time

See Monday. you on

you next the comes question of Thank ISI. line Sunderland. with Durgesh from The Mr. Evercore Chopra

may proceed. now You

Andres, just last gig Hey compare PPAs quarter signed Thanks for good new XXXX, megawatts. to my I over only signed of taking questions. can a it When morning year-to-date. is XXX you first on signed comment year you’ve the -- that this team.

of you contracts. a think commentary, mentioned I in couple large your

color And per year the -- well there? to X signage, X.X maybe that just you still are more bit tracking is a that? you confident are X.X little against gigs that So to

great from Well, believe the last of in a thanks quarter. is, It’s year, thing recall we one signings had Look, you very the the feel question. we if question. for a And good. I last lot

And we’re these things are here, so lumpy. seeing what

as renewable have we developer the years running X So projects largest of ranked for corporations. been

And corporations, big dealing so when these you’re these are projects. with

project one be can giga. easily So a

project hydrogen Texas, green our case, that’s X.X another in giga. just the example, For

lumpy. So are these

the meeting about targets. concerned I’m our bit So growth least not

lot interest. We’re seeing a of

them. advanced you until negotiations. count in We’re don’t But sign they

big the good range. Texas, project contracts, an of in the just they’re we issues in have we one that that’s that one. concern. And cause -- X.X we going for And that others in them. gigawatts about have, project for that’s green feel are as So No lumpy. example, But hydrogen the you’re when

land going because keep these So it’s to we’re us of but track. will be not to lumpy, we concerned enough on

there clear. NUM. update and the project, They a early That’s not had to on I’m increases venture, I’m mispronounce year in APD. when hydrogen believe. the I cost project maybe their joint they is Understood. on going -- -- some the but with very know your I reported, this, And

So overall terms any update of or cost there for the cost to that to project? project you cost in allocated

be of We It’s Look, lowest we for carbon states. have update it’s, $X range the project think no around still in the going the cost. again, to to billion, project. be the whole going in it’s

know, per $X a As subsidy, have a kilogram you you you intensity. have of threshold carbon if certain below

within feel we So well that. we’re

if If energy example, you you’re than it for less the grid, drops then have to taking $X. from that,

we good that. So about feel very

I’d project. to operating costs, capital announced some And is again, investments of terms more were make the say there to their they repeating what going Neon lower they what they costs. I’m what In just on on put that

we from we in to they project is using think Arabia that one jointly have any overruns Neon in very it’s but no no project there’d be which for time. But additional learn but from at that learned that no, this point reason more to similar have the we because this project. so it’s cost advanced, a updates, good So are us Saudi can very at project

See helpful Monday. very Thank color. you you on That’s Andres.

on you Monday. See

with Dumoulin-Smith Thank you Mr. America. line of question comes Bank Chopra. Julien The of the next from

proceed. may You now

follow and been on to here. team. conversation question wanted the Hey up just late. for the the Look, I you Thank morning we’ve good ITC, of guys having time PTC

thought also know there? And which you to for in PTCs, philosophy still curious, focused your follow on guys Just still some for have you committed instance, here the are to the is U.S. you talk low. up good. guys using back the are Angie’s of evolving Eastern tax split it’s extent ITCs. cut, to peers XX-XX pretty that, and towards fairly I Can the question using I about process know been to then quarter on you that ITCs.

sure in that want X just make XX-XX of ITC year still to X, So I heuristic applies. year

Julien, it’s Steve. Yes.

from So tax to definitely, investment we lion’s have our continue of be. and credits are will the share attributes tax

second at say So the profile we then projects tax about say fair with -- X/X of the about credit following of commissioning. X/X, gets XX% look in and credit would it the is year tax when of year coming the recognized to the when commissioning online, roughly in the I investment investment are and

So and expect the of credits will total tax The volume portfolio as that grow holds. annually, grows. we

So the we’re rate. about attributes U.S. that say targeting of year, growth this follow year tax the commissioning next gigawatts doubles to expect same that of X.X would roughly renewables, I volume of

from gigawatts X doubling of just last went a So when year year to to year credit the we year, gigawatts. tax it this next as doubled X this from from to

than see higher was see the an credit the the But for adders that community are incentive in The cases the where in in a content credit. tax now energy on we good or credit better actually investment Keep richer domestic potential wind. production tax And the Typically, some tax adders on now adder a we way they credit some investment in on is in production mind, clarity incentive the we some that. basis are projects. it those have some written. been with has tax

So we offset may -- credit opportunity there’s that an get still pipeline, year-over-year in the forward. best at strong number growth project see attribute we tax option. these very there But a going tax and at best projects good returns. look bit of have yields investment look by But a what very project be the bonuses, in the I some our to healthy that we’ll where

given change weighted sure PTC, right, just ITC to as Right. don’t intend you towards you’re that still point make versus I your and want But ITC, to been there’s have here. some commentary you otherwise. concern the your vastly is necessarily, been especially

I you keep going already the that ITC between backlog when And will partner vastness who that and we’ve then also show the Vastly. to election tax that Monday clear Yes. that locked tax PTC. And breakdown equity our in credit be. and on is essentially of mind be in for

years, of pretty couple well next for it’s So decided. the

be The the... one add states, the more wind Julien, we’ll be thing will would in so on which I PTC. doing

of example, is the in project So for megawatts XXX Texas wind.

So in solar. we’ve ITC because yes, we’ve partly been more been towards very is heavily

we in We’re of time, Over very expect a strong more solar. balance.

therefore, Right. adds, from of but customers And folks is said then on from is just and yet domestic the moving lumpy, the one treasury guidance because content heard aren’t I this back? you backlog why it’s We’ve they so don’t reasons folks. some have know holding

not Yes. in mean our I case, really.

negotiations through. them, to will It’s projects. set did come case horizon into, I that OXi let’s would some What delay It off a did last for than would we’re the it of in just think longer and we circumvention otherwise. whales. time land tariff delay because did them that. year when projects point I happen some And say,

But of is we and a solar supply states. any the the in bilateral we again, with does $X chain. come had panels lot in of since for here That content domestic the haven’t Where problems issue our driving not we negotiations, of contract manufacturer domestic do terms in is what’s it. have billion

with been if what difference it’s example, granular is more key obviously, because sitting there comply of sort it’s what done, easier then And initially. is dot for before on is much domestic wind, how content. the to so what’s to And line it’s main similar has defined for the

and in. wafering of We China, cetera, But was is which of et component. main of out the including is of the moving more some move the supply our sort inputs the suppliers, more up basic the states, have to chain already our made coming with in last plan and the minerals, more have

in wafering buying already And China, China. of the were Western China. made outside of course, etcetera done panels not We’re that Eastern was all

far. no very issue So had and that, about we thus good we’ve feel

last And it. earnings. question on Got just XX

Just here? the asset the whether on LNG, the Are of year XXXX plan? when that was than quarter, or you think it better at it about upside contemplated trending gain would of kind the was look the have in was items that was gain you some to you in sale, the on guide whether positioning expected? when your you earlier relative Or your

these are Julien. upsides, say of I Yes. some definitely would

winter with was weather I case, an those there’s first utilities, somewhat So all Unfortunately, the equal, else offset for warmer of most being to upsides yes, is quarter. as upside. the the think,

see but to seen the still the -- rest our the for remains it goes. of year above potential even how the midpoint of we not guidance, that’s So upside be

Okay, guys. you the very All best. much. Thank See Monday. excellent you

next from Gregg Julien. with the Mr. Thank of The comes you line UBS. question Orrill

proceed. You now may

Yes sort and XXXX, I you. that wondering of was hi, for the need available reaffirm Congratulations. plan, or sort you your thoughts for to that just equity to could. thanks financing if through the if to just execute you wondering question. could there. touch I of feel plan least the at Thank equity-like would are on you you was the you levers

Yes. No, Steve. it’s

sure. So

So we’ll financing definitely talk some more about through the plan longer-term XXXX.

So additional I that will color. give think

from up cash slide, as that. out I year, growth fund debt So parent have renewables program the we’ll laid then I coming to hold to free largely in capital flow think the in on sale the additional billion close will existing And of for addition we to parent the This we business. raise the segment. $X asset

plan equity no for there’s this year. So

some we for growth. well Looking we’ll we’re say certainly, have I the talk would about that ahead, for positioned Monday. in there plan What is, more

a leadership our But equity we commitments. need XXXX certainly, in to would beyond position, XXXX, grow We’re meet we to not and want XXXX. through

However, get would more Monday. the decade. before second hydrogen But in the growth, the to of that share half project, investing which to we support including things on like start green on started we’ll expect detail would XXXX

Thank you.

comes you Thank Citi. Orrill. Levine line with Mr. Ryan question from The of the next

You may now proceed.

the understanding arrived how better of get a at new Hoping Hi. you to disclosure.

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announced? extending and you in contracts further And are that, the that new terms recently California, beyond anticipating extended then was get in initial developments expansion that the of

-- those assets locations -- grid. we’ve extension. got for It’s think valuable those X-year are I a the -- extremely

going what now, So good. But we’ll there right X it’s forward, developments pretty see are. years

you. Thank Okay.

you. Thank

additional There waiting Mr. questions this Levine. time. at no you Thank are

the will pass I closing Harcourt, for So over to back remarks. conference Susan

Monday. today’s on us forward joining We seeing Investor you on for everybody our thank call. Day to at We look of many

team day. and will As nice questions IR Thank answer the to you have. you, available be a follow-up any always, may have

for conference That you Thank call. concludes today’s your participation.

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