Clearway Energy, Inc (NYSE:CWEN) Q3 2019 Earnings Conference Call Transcript
Nov 06, 2019 • 08:00 am ET
Ladies and gentlemen, thank you for standing by, and welcome to the Clearway Energy, Incorporated Third Quarter 2019 Earnings Conference Call. [Operator Instructions]
I would now like to hand the conference to your speaker today, Mr. Chris Sotos, President and CEO. Please go ahead, sir.
Good morning. Let me first thank you for taking the time to join today's call. Joining me this morning is Chad Plotkin, our Chief Financial Officer; as well as Craig Cornelius, President and CEO of Clearway Energy Group. Craig will be available for the Q&A portion of our presentation.
Before we begin, I would 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 information regarding our non-GAAP financial measures and reconciliations to the most directly comparable GAAP measures, please refer to today's presentation.
Turning to Page 4. I'm happy to report strong third quarter results that give us continued confidence around our revised CAFD guidance for the full year of 2019. Chad will provide more detail in his section of the presentation.
The contracts impacted by PG&E continue to perform. Our projects have not been impacted by the recent wildfires, and we continue to believe that the emergence of PG&E from bankruptcy in June of next year is a problem. During the quarter, we entered into an agreement to sell our Dover facility. As many of you are aware since the beginning of 2019, the 103 megawatt Dover facility became a predominantly merchant gas plant in PJM that does not fit strategically with C1's [Phonetic] focus on long-term contracted cash flows. C1 constantly seeks to rationalize this portfolio to deliver efficient contracted cash flows and the sale of Dover is part of that effort. We would expect the sale to close by the end of the first quarter of 2020.
As Chad will expand upon in more detail, during the quarter C1 advanced efforts on securing forbearance from its lenders to its PG&E exposed projects. As part of these efforts, C1 was able to obtain resolution regarding the Holdco debt at key [Indecipherable] related projects, which include the repayment of the outstanding non-recourse Holdco debt at Agua Caliente, while taking a forbearance agreement on the non-recourse Holdco debt at CVSR.
Today, C1 is announcing a fourth quarter dividend of $0.20 per share, the same dividend as last quarter. This is consistent with our view that until C1 obtains additional visibility around the PG&E bankruptcy and has full access to its project distributions, dividends paid to shareholders should be aligned with available corporate liquidity and our target payout ratio.
In terms of current execute growth projects, we're happy to announce that the Hawaii Solar Phase 1 is online and our Repowering 1.0 project is