Brookfield Renewable Corp and Brookfield Renewable Partners LP Q3 2024 Earnings Call Transcript

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

Question: Sean Steuart - TD Cowen - Analyst : Thanks. Good morning, everyone. I want to start with the US. It's a big part of your advanced organic pipeline. And Connor, you referenced comfort that growth will -- it will remain a growth focus for Brookfield Renewable. I'm wondering if you can give us more detailed thoughts on the US return profile and growth potential of tax credits or changed or appealed in the events that the Republicans take the House and Trump can advance that agenda.

Question: Sean Steuart - TD Cowen - Analyst : That's great detail. Thanks for that. Second question relates to offshore wind. It looks like the +rsted transaction is, I would say, more of a focused financing deal with fixed horizon for you guys, more so that as opposed to a strategic push into the asset class. Can you speak to larger growth aspirations and offshore wind having referenced the risk profile now fitting into parameters that work for you guys?

Question: Sean Steuart - TD Cowen - Analyst : Thanks for that, Connor. That's all I have for now.

Question: Robert Hope - Scotiabank GBM - Analyst : Good morning, everyone. I want to circle back on the US and maybe dive a little bit deeper into your comments about being the low-cost producer. We understand that the tax benefits often do pass through to customers. But can you maybe dive in a little deeper on what asset classes could be more impacted by changes to tax policy there? And could that shift more towards wind versus solar or which asset class do you think has the best cost outlook regardless of subsidies.

Question: Robert Hope - Scotiabank GBM - Analyst : Appreciate that color. And then maybe pivoting over to the Infinium investment. And more broadly, how are you looking at, we'll call it, non-renewable power investments with the potential to be a little bit more on the bleeding edge. And I guess, overall, with such a large renewable backlog, how do these kind of investments fit in the framework.

Question: Robert Hope - Scotiabank GBM - Analyst : Great. Thank you for the color.

Question: Nelson Ng - RBC Capital Markets - Analyst : Thanks. Connor, you've talked a lot about the US sector, and I have one more question for you in terms of the US elections. So obviously, with the elections outcome, we saw a big drop in share prices of many companies, even companies that don't have any US exposure, do you generally see like more opportunities to deploy capital now with publicly listed names or even in projects where responses may be pulling out? Like do you have a like a shopping list of companies or projects that are potentially significantly undervalued now?

Question: Nelson Ng - RBC Capital Markets - Analyst : Great color. And just switching gears a bit on the hydro side, in terms of the $90 per megawatt hour and you mentioned that I think it's contracted to US utilities. Going forward, when you recontract additional facilities in the US, do you expect -- or are you seeing more direct demand from, let's say, big tech or data centers? Or do you expect recontracting to continue to be with US utilities?

Question: Nelson Ng - RBC Capital Markets - Analyst : Great. Thanks, Connor. I'll leave it there.

Question: Rupert Merer - National Bank Financial - Analyst : Hi. Good morning, everyone. Connor, you highlight the bifurcation in valuation between mature assets, more complex development assets. We're also seeing some weakness in the stock market at that you discussed, and we do seem to be seeing a wave of privatization. So I was wondering if you could quantify the difference in return expectations that you see with this bifurcation between mature and immature and between public valuations and private valuations.

Question: Rupert Merer - National Bank Financial - Analyst : Great. Thank you for the color. And why you've highlighted the contracts we've signed recently, some attractive prices, $90 a megawatt hour, I think you suggested. And if we look at the growth in demand in the US for power for data centers, it does seem like there's more demand than supply today. Supply is going to have a hard time keeping up how price sensitive do you think the market is? How high can power prices go before your buyers, you think will hit the pause button.

Question: Rupert Merer - National Bank Financial - Analyst : Very helpful. I'll leave it there. Thanks for the color. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 08, 2024 / 1:30PM, BEPC.N - Q3 2024 Brookfield Renewable Corp and Brookfield Renewable Partners LP Earnings Call

Question: Mark Jarvi - CIBC Capital Markets - Analyst : Yeah. Good morning, everyone. Maybe just coming back to the US election impacts and given there's some uncertainty, what do you think will happen with M&A in the US market and being valuations on development pipeline? Is there a chance that any of your ongoing asset sales in US take a pause -- what do you think you have to see for clarity before the market maybe opens up again.

Question: Mark Jarvi - CIBC Capital Markets - Analyst : Okay. And just coming back to the US hydro assets some buyers are really focused on additionality. Microsoft deals kind of carried that way. Are you seeing any other change in tone around other large tech buyers in terms of additionality constraints? Or do you think they are willing to align to contract through US hydro to pay that premium?

Question: Mark Jarvi - CIBC Capital Markets - Analyst : Okay. And then last question, just again on the US market. Your view on nuclear and just the Westinghouse business, would you say the election outcome is neutral, positive, to be determined at this point? Any additional perspective on that business? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 08, 2024 / 1:30PM, BEPC.N - Q3 2024 Brookfield Renewable Corp and Brookfield Renewable Partners LP Earnings Call

Question: Mark Jarvi - CIBC Capital Markets - Analyst : Okay. Thanks for the time today.

Question: William Grippin - UBS Equities - Analyst : Thanks very much. Good morning. I'm sorry to do this, but just coming back to the policy point here. Obviously, there's been a lot of hand wringing on what happens to the ITC. A lot of people forget it's been around since 1978 in some form and has been extended under multiple administrations since that time, both Republican and Democratic. So I generally agree with you. I think any risk of change there is very, very low. But more to the point, I think based on our conversations over the last few days, it seems like a lot of investors have actually forgotten about the IRS guidelines around safe harboring, which potentially enable developers to lock in the current ITC level through 2029. Just want to give you an opportunity to talk about maybe what you're doing on that front and help maybe sway some of these concerns about the impacts of potential policy changes.

Question: William Grippin - UBS Equities - Analyst : Great. Thanks very much. And just last small one here. But -- could you talk to some of the year-on-year drivers you're expecting to contribute to what appears to be accelerating fourth quarter FFO per share growth implied by the guidance?

Question: William Grippin - UBS Equities - Analyst : Got it. Thanks very much. That's all for me.