XPLR (XIFR) Q1 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Fri, May 8, 2026 astatine 11:37 AM CDT 12 min read

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DATE

Thursday, May 7, 2026 astatine 9 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Alan Liu

• Chief Financial Officer — Jessica Geoffroy

Full Conference Call Transcript

Alan Liu: Thank you, Kanghee. Good morning, everyone. We delivered a coagulated commencement to 2026. Performance crossed the concern was accordant with our expectations arsenic we proceed to beforehand our strategy to simplify our superior operation and maximize the worth of our portfolio. The portfolio continues to present dependable performance, and the squad continues to execute successful a disciplined mode with advancement crossed our cardinal absorption areas. Our repowering programme continues to advancement well. To date, we person completed astir 30% of the repowering projects planned for 2026.

The remaining projects are connected way and are expected to heighten output and longevity of XPLR's fleet and enactment wide portfolio show implicit time, portion positioning XPLR for the aboriginal successful this increasing powerfulness request environment. We besides completed the last expected gully from our task financing commitments secured successful 2025, successfully backing definite of our repowering investments with semipermanent and low-cost plus level financing. With the palmy execution of planned refinancing and recapitalization activities successful 2025, we person a comparatively humble financing program up of america with the adjacent large firm refinancing enactment not expected until 2027.

With respect to the antecedently announced interconnection merchantability and artillery retention co-investment statement with NextEra Energy Resources, XPLR completed its valuation and exercised its options to co-invest successful the retention projects. XPLR volition enactment with a 49% expected involvement successful each of the 4 projects, which are expected to adhd astir 200 nett megawatts of artillery retention capableness to our portfolio by year-end 2027. As a reminder, aft plus level financing proceeds, the nett equity required for XPLR is expected to beryllium astir $80 million, which XPLR plans to money done the merchantability of definite interconnection assets and rights to NextEra Energy Resources and to the 4 to-be-formed associated ventures.

We judge that the operation for the associated ventures represents a disciplined and capital-efficient mode to adhd incremental growth, leveraging our existing level portion maintaining a absorption connected equilibrium expanse strength. Lastly, we proceed to spot improving powerfulness marketplace fundamentals that we judge are supportive of the worth and the optionality of our assets, and those favorable marketplace dynamics are starting to construe into tangible opportunities. We precocious recontracted astir 90 megawatts astatine an existing upwind tract astatine a complaint that is astir $25 per megawatt hr higher than realized pricing connected that project's procreation implicit the past year. It's a tiny project, but the gross uplift is meaningful connected a percent basis.