Clearway Energy Targets Per-Share Cash Available for Distribution of $3.20 to $3.40 in 2031
Key Facts
Clearway Energy set an initial target for cash available for distribution per share of $3.20 to $3.40 in 2031, in guidance announced with its third-quarter 2026 results. The company said in its earnings release filed with the U.S. Securities and Exchange Commission that the range implies compound annual growth of 7% to 8% compared with a 2025 baseline. The company reaffirmed its 2026 guidance range for cash available for distribution at $430 to $470 million. It also announced an initial guidance range for 2027, though the available figures here do not include the value of that range. Chief Executive Craig Cornelius said the company sees a path to the high end or above its 2030 target for cash available for distribution per share.
The new 2031 target extends the per-share cash flow outlook beyond annual guidance, but remains a company-stated target. In its third-quarter results presentation, Clearway linked the midpoint of its 2027 guidance to $2.70 in cash available for distribution per share. The presentation also set a 2027 cash distribution per-share target of about $1.98. The company also said its long-term target for the payout ratio is below 70%. After 2027, it expects per-share distribution growth to be competitive with that of mid-cap utilities, according to the presentation.
The targets are part of an update to growth and contracting expectations, as Cornelius said the company reaffirmed its 2026 guidance and announced its initial range for 2027. The chief executive linked that to a path that, in his words, would allow the company to reach or exceed the high end of its 2030 cash flow per-share target. The earnings release said the company committed to two additional asset drop-downs from the Clearway Energy Group since the previous quarter. These commitments represent part of the opportunities the company aims to bring into its portfolio from its sponsor. The company also said identified and committed asset drop-down opportunities had increased by more than 100% since the start of the year, according to its correction of the details of the steps described in its release.
In the third quarter of 2026, the company reported net income of $123 million and adjusted earnings before interest, taxes, depreciation and amortization of $435 million. Cash from operating activities was $324 million, while cash available for distribution reached $173 million. Cash available for distribution was $166 million in the year-earlier quarter. The company said adjusted earnings before interest, taxes, depreciation and amortization rose year over year, driven by contributions from growth investments. It added that cash available for distribution remained consistent with the year-earlier period despite the increase in that earnings measure, because adjusted earnings before interest, taxes, depreciation and amortization increased.
Among the contractual developments cited in the release, the company entered into an agreement on November 4, 2026, with a load-serving entity to market 200 to 500 megawatts of capacity from the Walt Creek plant. The contract begins in January 2027 and ends in December 2034, extending the contracting period for that capacity over multiple years. This is part of the company’s discussion of expanding long-term contracting for its flexible generation portfolio. The company presented this path alongside asset drop-down commitments and growth investments as elements of its updated outlook. The available facts in the release did not specify the expected financial contribution from the Walt Creek contract to the cash flow targets.
On distributions, the board on November 9, 2026, declared a quarterly distribution of $0.4824 per share of Class C stock. The distribution is payable on December 15, 2026, to shareholders of record on December 1, 2026. In an earlier presentation of its first-quarter 2026 results, the target for 2027 cash available for distribution per share was $2.70 or more, while the 2030 target was $2.90 to $3.10 or more. The third-quarter presentation links the midpoint of 2027 guidance to $2.70 per share and shows a distribution target for that year of about $1.98. These figures provide context for the newer targets, while the company kept its 2026 guidance at the announced range of $430 to $470 million.