Brookfield Renewable Partners LP Q2 2020 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Robert Hope - Scotiabank Global Banking and Markets, Research Division - Analyst : Just thinking about the M&A market. Debt levels seem elevated, but there's a lot of liquidity out there in the market. How do you think this plays out in the future? And could we see you acquire some distressed assets maybe in 2021 when markets start to normalize and liquidity normalizes?

Question: Robert Hope - Scotiabank Global Banking and Markets, Research Division - Analyst : And just to follow-up on Sean's question. Just the public securities that you're buying in Q2 and you've sold a portion of. Are you still looking to get toeholds in certain of these? Or is it that the market has rebounded a little quicker than you anticipated?

Question: Benjamin Pham - BMO Capital Markets Equity Research - Analyst : I just wanted to touch base. First question is some of your commentary around just where you are right now. I think Wyatt mentioned you're seeing a ton of growth opportunity (inaudible) best positioned in the cycle. So does that mean when you think about all the tailwinds that maybe just not Brookfield but the renew energy that you have to cycle where the growth rates are more at the upper end of your targeted range rather than mid to low point?

Question: Benjamin Pham - BMO Capital Markets Equity Research - Analyst : Okay. And maybe related to that, when you think about achieving your payout ratio target, that 70% of FFO, I think a few quarters ago, you mentioned that probably [could take] a few years. But really, when you think with the TERP transaction and some of these other initiatives that you've done have -- are you of the view now that maybe reaching that payout ratio target is a bit quicker than what you thought 6 months ago?

Question: Benjamin Pham - BMO Capital Markets Equity Research - Analyst : I know you had a lot of questions on solar. But I was wondering, can you remind me, when you look at solar versus offshore wind. And you mentioned that offshore wind, you didn't want to get into it because of the high subsidization, the cost curve has gone down dramatically. So you don't want to get caught in a situation in 10 years, pricing drops and you get some pressure on the other side. So is solar a bit different there where the levelized cost is also dropping, pricing could drop, as referenced by an earlier question? Is that compare contrast a little bit different there when you look at the 2?

Question: Nelson Ng - RBC Capital Markets, Research Division - Analyst : I just had a few questions on the development pipeline. So in Brazil, now that you have about 3 good-sized solar developments. And I think for the 1,200 megawatt solar facility, you mentioned that 75% is contracted. Could you just give a bit of color on the term that that one is contracted for and whether the other 2, the 210 and 270 -- sorry, 278 megawatt projects, whether those are fully contracted or not?

Question: Nelson Ng - RBC Capital Markets, Research Division - Analyst : Got it. Okay. And then can you talk about -- given that you have a sizable footprint in Colombia as well, are you seeing the same type of wind or solar opportunities in Colombia, where even if it's not fully contracted, you can leverage your footprint to derisk those projects? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 07, 2020 / 1:00PM, BEP_u.TO - Q2 2020 Brookfield Renewable Partners LP Earnings Call

Question: Nelson Ng - RBC Capital Markets, Research Division - Analyst : Okay. And on that point, like for the -- I think 2 of those Brazilian assets you bought into an advanced development. Is that the strategy, whether it's in Colombia or Brazil to get involved at a later stage of development?

Question: Nelson Ng - RBC Capital Markets, Research Division - Analyst : Okay. And then just one last question. The projects to be completed over the next few years, I think the FFO contribution is about $53 million. Roughly what's the investment required to achieve that? Should we be thinking that you invest at a 7x to 8x FFO multiple to get a mid- to low-teen FFO yield?