XPLR Infrastructure, LP — Call Transcript 2026

Ladies and gentlemen, thank you for standing by. Hello, welcome to XPLR Infrastructure First Quarter 2026 Earnings Conference Call. At this time, all lines have been placed on mute to prevent any background noise. Thank you. I would now like to turn the conference over to Kanghee Jeon, Director of Investor Relations. Please go ahead. Thank you, Dustin. Good morning, everyone, and thank you for joining our first quarter 2026 financial results conference call for XPLR Infrastructure. With me this morning are Alan Liu, President and Chief Executive Officer of XPLR Infrastructure, and Jessica Geoffroy, Chief Financial Officer of XPLR Infrastructure. Alan will walk through our business highlights, and Jessica will provide an overview of our financial results. After that, our executive team will be available to answer your questions. On this call, we'll be making forward-looking statements based on current expectations and assumptions, which are subject to risks and uncertainties. Actual results could differ materially from our forward-looking statements if any of our key assumptions are incorrect or because of other factors discussed in today's earnings news release, in the comments made during this conference call, in the Risk Factors section of the accompanying presentation, or in our latest reports and filings with the Securities and Exchange Commission, each of which can be found on our website, www.xplrinfrastructure.com. We do not undertake any duty to update any forward-looking statements. Today's presentation also includes references to non-GAAP financial measures. You should refer to the information contained in the slides accompanying today's presentation for the definitional information and reconciliations of historical non-GAAP measures to the closest GAAP financial measure. With that, I'll turn the call over to Alan. Thank you, Kanghee. Good morning, everyone. We delivered a solid start to 2026. Performance across the business was consistent with our expectations as we continue to advance our strategy to simplify our capital structure and maximize the value of our portfolio. The portfolio continues to deliver steady performance, and the team continues to execute in a disciplined manner with progress across our key focus areas. Our repowering program continues to progress well. To date, we have completed approximately 30% of the repowering projects planned for 2026. The remaining projects are on track and are expected to enhance output and longevity of XPLR's fleet and support overall portfolio performance over time while positioning XPLR for the future in this growing power demand environment. We also completed the final expected draw from our project financing commitments secured in 2025, successfully funding certain of our repowering investments with long-term and low-cost asset-level financing. With the successful execution of planned refinancing and recapitalization activities in 2025, we have a relatively modest financing plan ahead of us, with the next major corporate refinancing activity not expected until 2027. With respect to the previously announced interconnection sale and battery storage co-investment agreement with NextEra Energy Resources, XPLR completed its evaluation and exercised its options to co-invest in the storage projects. XPLR will participate with a 49% expected interest in each of the four projects, which are expected to add approximately 200 net MW of battery storage capacity to our portfolio by year-end 2027. As a reminder, after asset-level financing proceeds, the net equity required for XPLR is expected to be approximately $80 million, which XPLR plans to fund through the sale of certain interconnection assets and rights to NextEra Energy Resources and to the four to-be-formed joint ventures. We believe that this structure for the joint ventures represents a disciplined and capital-efficient way to add incremental growth, leveraging our existing platform while maintaining a focus on balance sheet strength. Lastly, we continue to see improving power market fundamentals that we believe are supportive of the value and the optionality of our assets, and those favorable market dynamics are starting to translate into tangible opportunities. We recently recontracted roughly 90 MW at an existing wind site at a rate that is roughly $25 per MW higher than realized pricing on that project's generation over the past year. It's a small project, but the revenue uplift is meaningful on a percentage basis, and more importantly, we are optimistic that this is an early example of a broader opportunity set as legacy contracts expire. Our team is pursuing additional opportunities to recontract and optimize existing contracts across multiple markets where there is strong demand growth. With that, let me turn it over to Jessica, who will review our first quarter 2026 results in more detail. Thank you, Alan, good morning, everyone. Let's begin with XPLR Infrastructure's detailed results. For the first quarter of 2026, XPLR's portfolio generated approximately $435 million in adjusted EBITDA and $89 million in free cash flow before growth. First quarter results from existing projects were affected by lower wind resource, which came in at approximately 99% of the long-term average, compared to 103% in the prior year period. This impact was partially offset by contributions from repowered assets, which continued to enhance generation and cash flow across the portfolio. Favorable weather and strong execution during the first quarter allowed us to pull ahead planned major component work from later in the year, which was the primary driver of higher year-over-year O&M costs. In addition, the results for both adjusted EBITDA and free cash flow before growth reflect the impact of asset dispositions completed in 2025. The year-over-year decline in free cash flow before growth was consistent with the company's expectations, as it was primarily driven by higher financing costs resulting from the balance sheet simplification and capital plan funding activities in 2025. Specifically, XPLR Infrastructure's first quarter 2026 free cash flow before growth includes approximately $74 million of incremental corporate interest expense from the approximately $1.75 billion of unsecured notes issuances in March 2025. It also includes approximately $12 million higher year-over-year interest expense from project financings raised in 2025. As a reminder, free cash flow before growth reflects actual cash interest payments within the measurement period. As a result, quarterly results can vary based on the timing of interest payments, along with the natural seasonality of wind and solar generation. Taken together, these factors typically result in a lighter contribution in the first quarter. Specifically, XPLR's first quarter 2026 free cash flow before growth is expected to represent roughly 12%-15% of its expected full-year results. Additional granularity on the timing of expected interest payments can be found in the appendix of today's presentation. For 2026, we continue to expect adjusted EBITDA of $1.75 billion-$1.95 billion and free cash flow before growth of $600 million-$700 million. As always, our expectations assume our usual caveats, including normal weather and operating conditions. Let me close by reinforcing the key elements of the XPLR platform. XPLR is a contracted infrastructure platform generating stable cash flows supported by long-term agreements and high credit quality counterparties. Our strategy remains focused on two priorities: continuing to simplify the capital structure and executing on attractive investments into the existing asset base to create value for unit holders. We believe that consistent execution against these priorities supports both our financial flexibility and our strategic positioning. We believe that the combination of stable cash flow generation and a disciplined capital plan allows XPLR to allocate retained cash flows in a value-maximizing manner over time. That discipline underpins our strategy and positions XPLR to capture long-term value as U.S. power demand continues to grow. That concludes our prepared remarks. We will now open the line for questions. Thank you. Quick reminder before we start the Q&A. If you'd like to ask a question, please press star and the number one on your telephone keypad to raise your hand and enter the queue. If you'd like to withdraw your question or your question has been answered, please press star one again. We also advise that you pick up your handset when asking for optimal sound quality, and if you're muted locally, please remember to unmute your device. With that, we will take our first question from Nelson Ng from RBC Capital Markets. Please go ahead. Great. Thanks, and good morning, everyone. Alan, you mentioned there was a small recontracting during the quarter, with a $25 improvement in the power price. Are you able to provide the power price prior to the recontracting? I was just wondering what the percentage improvement was. Nelson, good morning. Thanks for joining. We didn't provide the prior contract price. Just commercial sensitivity of where the ultimate PPA landed here. I would say if you think about it, right, and we've given you some disclosure previously about on average kind of the uplift. This is in line or even slightly better than kind of the uplift that we would have expected for this market. The opportunities obviously we've highlighted before, right? You know, they're generally in SPP, in ERCOT and WECC. It's in a project in one of those markets and, you know, in line with where we expected, which is it's a multiple above where the previous price was. Okay, thanks. Just on the battery storage front, I think you previously agreed to sell interconnection rights to raise $45 million of the $80 million required for your equity contribution. Have you identified the rest of the projects that you're looking to sell? Then just to follow up on that, is there a timeline in terms of when there could be another batch of projects that XPLR could co-invest in? I'll address the first question, which is the funding for the existing storage JV. We're certainly working through a list of potential opportunities with NextEra. As a reminder, construction for these projects aren't slated to begin until at the earliest end of this year. Most likely, it's throughout 2027, and then they're COD-ing in late 2027. We have some time, but with the list and the opportunities that we're looking at, we feel confident we will be able to fund those with additional asset sales. I think your question about will there be additional storage opportunities, I think the right way to think about it is across our 10 GW portfolio, we certainly have multiple gigawatts of interconnection, surplus interconnection. Those represent potential opportunities. You know, we certainly feel out of that set, there are opportunities for additional co-located storage or other development opportunities. You know, whether or not those projects are ultimately attractive to XPLR is site location specific. You know, it comes down to a lot of factors, including the demand and the pricing that can be achieved for those specific projects. Ultimately, whether or not, you know, we participate or, you know, monetize those, the value of that interconnect is gonna fall under our existing capital allocation framework, right? It's subject to what else can we do with our money, is there better returning allocations or it's subject to the balance sheet and our cost of financing. Long way of saying, yes, there's opportunity. We have not committed to any incremental investments at this time, but we'll keep you posted. Thanks. Just one last question. You mentioned the balance sheet. Looking at the balance sheet, there's about $943 million of cash and equivalents. Like, I presume a lot of that cash is at the project level. But, like, roughly how much of that cash is, like, readily available at the corporate level? Hey, Nelson, it's Jessica. You can see in our SEC filings, we break out the amount of cash held in reserves at the projects. Our 10-Q for this quarter will come out after market close today. Looking back at the last quarter, there's roughly $300 million held in reserves at the projects. Okay, great. Thanks. I'll leave it there. Thank you. Again, if you'd like to ask a question, please press star and the number one on your telephone keypad. We will take our next question from the line of Mark Jarvi from CIBC Capital Markets. Please go ahead. Yeah, thanks. Good morning, Alan. Just going back to the recontracting opportunity. Can you comment at all in terms of, like, how big the funnel would be? Like, how many megawatts across your portfolio are something you're actively exploring? I assume it's more weighted to wind, just given the vintage of the contracts and assets. Is that right? Hey, Mark. Good morning. This is Alan. That is correct. I think that's the right way to think about it. The majority of the opportunity will exist in wind projects and obviously in the specific markets. We've highlighted this before in prior presentations. You know, in the near term, we've given you a schedule, a rough kind of chart that shows there are increasing opportunities as we get closer to 2030. There's definitely gonna be tangible opportunities that we're working on as we speak. The majority, I would say, you know, roughly 70% of the kind of opportunity exists beyond 2030. You know, we're hoping to continue to execute in the next few years leading up to that. Obviously the pricing you received was attractive. I think NextEra said around $20 a megawatt hour is what they got. That's a good uplift. Just curious in terms of what the tenor of the contracts are out there and sort of that trade-off between price and duration. I believe it was a 15-year contract. We'll confirm. That's generally what the counterparties are looking for. Is that sort of that term at this point, or is there a real range? Yeah. Out there of shorter duration? Yeah. Yeah. It's just to confirm, it was a 15-year busbar contract here. As you know, there's always a trade-off between tenor, right? Whether it's hub settled or busbar. Ultimately, you know, for us this made the most sense, right? Between duration of the contract, like the fact that in this particular market we preferred the busbar over a potentially higher but busbar, but hub settled contract here. Got it. Just on the battery projects co-investment, are the costs all locked down for those projects? Like, you know, everything locked down in terms of equipment, EPC, all that kind of stuff? Just so that you know that the $80 million investment is more or less firm at this point. This is a true equity co-investment alongside NextEra Energy Resources. As with any equity investment, we, you know, if there are cost overruns, we of course would be as a partner funding that. We feel good about this project. It's well, you know, well advanced, you know, supply chain. We have the same benefits, right? Of, you know, the benefit of having NextEra as a co-investment partner here is that we have access to that supply chain and the equipment we feel very good about having secured. Okay, thanks. Thank you. Seeing as there are no further questions on the queue, that concludes our question and answer session for today. That also concludes our call for today. Thank you all for joining, and you may now disconnect.

Speaker 6: Ladies and gentlemen, thank you for standing by. Hello, welcome to XPLR Infrastructure First Quarter 2026 Earnings Conference Call. At this time, all lines have been placed on mute to prevent any background noise. Thank you. I would now like to turn the conference over to Kanghee Jeon, Director of Investor Relations. Please go ahead. Ladies and gentlemen, thank you for standing by. ladies and gentlemen thank you for standing by Hello, welcome to XPLR Infrastructure First Quarter 2026 Earnings Conference Call. hello welcome to xplr infrastructure first quarter 2026 earnings conference call At this time, all lines have been placed on mute to prevent any background noise. at this time all lines have been placed on mute to prevent any background noise Thank you. thank you I would now like to turn the conference over to Kanghee Jeon, Director of Investor Relations. i would now like to turn the conference over to kanghee jeon director of investor relations Please go ahead. please go ahead

Speaker 3: Thank you, Dustin. Good morning, everyone, and thank you for joining our first quarter 2026 financial results conference call for XPLR Infrastructure. With me this morning are Alan Liu, President and Chief Executive Officer of XPLR Infrastructure, and Jessica Geoffroy, Chief Financial Officer of XPLR Infrastructure. Alan will walk through our business highlights, and Jessica will provide an overview of our financial results. After that, our executive team will be available to answer your questions. On this call, we'll be making forward-looking statements based on current expectations and assumptions, which are subject to risks and uncertainties. Thank you, Dustin. thank you dustin Good morning, everyone, and thank you for joining our first quarter 2026 financial results conference call for XPLR Infrastructure. good morning everyone and thank you for joining our first quarter 2026 financial results conference call for xplr infrastructure With me this morning are Alan Liu, President and Chief Executive Officer of XPLR Infrastructure, and Jessica Geoffroy, Chief Financial Officer of XPLR Infrastructure. with me this morning are alan liu president and chief executive officer of xplr infrastructure and jessica geoffroy chief financial officer of xplr infrastructure Alan will walk through our business highlights, and Jessica will provide an overview of our financial results. alan will walk through our business highlights and jessica will provide an overview of our financial results After that, our executive team will be available to answer your questions. after that our executive team will be available to answer your questions On this call, we'll be making forward-looking statements based on current expectations and assumptions, which are subject to risks and uncertainties. on this call we'll be making forward-looking statements based on current expectations and assumptions which are subject to risks and uncertainties Actual results could differ materially from our forward-looking statements if any of our key assumptions are incorrect or because of other factors discussed in today's earnings news release, in the comments made during this conference call, in the Risk Factors section of the accompanying presentation, or in our latest reports and filings with the Securities and Exchange Commission, each of which can be found on our website, www.xplrinfrastructure.com. We do not undertake any duty to update any forward-looking statements. Today's presentation also includes references to non-GAAP financial measures. You should refer to the information contained in the slides accompanying today's presentation for the definitional information and reconciliations of historical non-GAAP measures to the closest GAAP financial measure. With that, I'll turn the call over to Alan. Actual results could differ materially from our forward-looking statements if any of our key assumptions are incorrect or because of other factors discussed in today's earnings news release, in the comments made during this conference call, in the Risk Factors section of the accompanying presentation, or in our latest reports and filings with the Securities and Exchange Commission, each of which can be found on our website, www.xplrinfrastructure.com. actual results could differ materially from our forward-looking statements if any of our key assumptions are incorrect or because of other factors discussed in today's earnings news release in the comments made during this conference call in the risk factors section of the accompanying presentation or in our latest reports and filings with the securities and exchange commission each of which can be found on our website www.xplrinfrastructure.com We do not undertake any duty to update any forward-looking statements. we do not undertake any duty to update any forward-looking statements Today's presentation also includes references to non-GAAP financial measures. today's presentation also includes references to non-gaap financial measures You should refer to the information contained in the slides accompanying today's presentation for the definitional information and reconciliations of historical non-GAAP measures to the closest GAAP financial measure. you should refer to the information contained in the slides accompanying today's presentation for the definitional information and reconciliations of historical non-gaap measures to the closest gaap financial measure With that, I'll turn the call over to Alan. with that i'll turn the call over to alan

Speaker 1: Thank you, Kanghee. Good morning, everyone. We delivered a solid start to 2026. Performance across the business was consistent with our expectations as we continue to advance our strategy to simplify our capital structure and maximize the value of our portfolio. The portfolio continues to deliver steady performance, and the team continues to execute in a disciplined manner with progress across our key focus areas. Our repowering program continues to progress well. To date, we have completed approximately 30% of the repowering projects planned for 2026. The remaining projects are on track and are expected to enhance output and longevity of XPLR's fleet and support overall portfolio performance over time while positioning XPLR for the future in this growing power demand environment. Thank you, Kanghee. thank you kanghee Good morning, everyone. good morning everyone We delivered a solid start to 2026. we delivered a solid start to 2026 Performance across the business was consistent with our expectations as we continue to advance our strategy to simplify our capital structure and maximize the value of our portfolio. performance across the business was consistent with our expectations as we continue to advance our strategy to simplify our capital structure and maximize the value of our portfolio The portfolio continues to deliver steady performance, and the team continues to execute in a disciplined manner with progress across our key focus areas. the portfolio continues to deliver steady performance and the team continues to execute in a disciplined manner with progress across our key focus areas Our repowering program continues to progress well. our repowering program continues to progress well To date, we have completed approximately 30% of the repowering projects planned for 2026. to date we have completed approximately 30% of the repowering projects planned for 2026 The remaining projects are on track and are expected to enhance output and longevity of XPLR's fleet and support overall portfolio performance over time while positioning XPLR for the future in this growing power demand environment. the remaining projects are on track and are expected to enhance output and longevity of xplr's fleet and support overall portfolio performance over time while positioning xplr for the future in this growing power demand environment We also completed the final expected draw from our project financing commitments secured in 2025, successfully funding certain of our repowering investments with long-term and low-cost asset-level financing. With the successful execution of planned refinancing and recapitalization activities in 2025, we have a relatively modest financing plan ahead of us, with the next major corporate refinancing activity not expected until 2027. With respect to the previously announced interconnection sale and battery storage co-investment agreement with NextEra Energy Resources, XPLR completed its evaluation and exercised its options to co-invest in the storage projects. XPLR will participate with a 49% expected interest in each of the four projects, which are expected to add approximately 200 net MW of battery storage capacity to our portfolio by year-end 2027. We also completed the final expected draw from our project financing commitments secured in 2025, successfully funding certain of our repowering investments with long-term and low-cost asset-level financing. we also completed the final expected draw from our project financing commitments secured in 2025 successfully funding certain of our repowering investments with long-term and low-cost asset-level financing With the successful execution of planned refinancing and recapitalization activities in 2025, we have a relatively modest financing plan ahead of us, with the next major corporate refinancing activity not expected until 2027. with the successful execution of planned refinancing and recapitalization activities in 2025 we have a relatively modest financing plan ahead of us with the next major corporate refinancing activity not expected until 2027 With respect to the previously announced interconnection sale and battery storage co-investment agreement with NextEra Energy Resources, XPLR completed its evaluation and exercised its options to co-invest in the storage projects. with respect to the previously announced interconnection sale and battery storage co-investment agreement with nextera energy resources xplr completed its evaluation and exercised its options to co-invest in the storage projects XPLR will participate with a 49% expected interest in each of the four projects, which are expected to add approximately 200 net MW of battery storage capacity to our portfolio by year-end 2027. xplr will participate with a 49% expected interest in each of the four projects which are expected to add approximately 200 net mw of battery storage capacity to our portfolio by year-end 2027 As a reminder, after asset-level financing proceeds, the net equity required for XPLR is expected to be approximately $80 million, which XPLR plans to fund through the sale of certain interconnection assets and rights to NextEra Energy Resources and to the four to-be-formed joint ventures. We believe that this structure for the joint ventures represents a disciplined and capital-efficient way to add incremental growth, leveraging our existing platform while maintaining a focus on balance sheet strength. Lastly, we continue to see improving power market fundamentals that we believe are supportive of the value and the optionality of our assets, and those favorable market dynamics are starting to translate into tangible opportunities. We recently recontracted roughly 90 MW at an existing wind site at a rate that is roughly $25 per MW higher than realized pricing on that project's generation over the past year. As a reminder, after asset-level financing proceeds, the net equity required for XPLR is expected to be approximately $80 million, which XPLR plans to fund through the sale of certain interconnection assets and rights to NextEra Energy Resources and to the four to-be-formed joint ventures. as a reminder after asset-level financing proceeds the net equity required for xplr is expected to be approximately $80 million which xplr plans to fund through the sale of certain interconnection assets and rights to nextera energy resources and to the four to-be-formed joint ventures We believe that this structure for the joint ventures represents a disciplined and capital-efficient way to add incremental growth, leveraging our existing platform while maintaining a focus on balance sheet strength. we believe that this structure for the joint ventures represents a disciplined and capital-efficient way to add incremental growth leveraging our existing platform while maintaining a focus on balance sheet strength Lastly, we continue to see improving power market fundamentals that we believe are supportive of the value and the optionality of our assets, and those favorable market dynamics are starting to translate into tangible opportunities. lastly we continue to see improving power market fundamentals that we believe are supportive of the value and the optionality of our assets and those favorable market dynamics are starting to translate into tangible opportunities We recently recontracted roughly 90 MW at an existing wind site at a rate that is roughly $25 per MW higher than realized pricing on that project's generation over the past year. we recently recontracted roughly 90 mw at an existing wind site at a rate that is roughly $25 per mw higher than realized pricing on that project's generation over the past year It's a small project, but the revenue uplift is meaningful on a percentage basis, and more importantly, we are optimistic that this is an early example of a broader opportunity set as legacy contracts expire. Our team is pursuing additional opportunities to recontract and optimize existing contracts across multiple markets where there is strong demand growth. With that, let me turn it over to Jessica, who will review our first quarter 2026 results in more detail. It's a small project, but the revenue uplift is meaningful on a percentage basis, and more importantly, we are optimistic that this is an early example of a broader opportunity set as legacy contracts expire. it's a small project but the revenue uplift is meaningful on a percentage basis and more importantly we are optimistic that this is an early example of a broader opportunity set as legacy contracts expire Our team is pursuing additional opportunities to recontract and optimize existing contracts across multiple markets where there is strong demand growth. our team is pursuing additional opportunities to recontract and optimize existing contracts across multiple markets where there is strong demand growth With that, let me turn it over to Jessica, who will review our first quarter 2026 results in more detail. with that let me turn it over to jessica who will review our first quarter 2026 results in more detail

Speaker 2: Thank you, Alan, good morning, everyone. Let's begin with XPLR Infrastructure's detailed results. For the first quarter of 2026, XPLR's portfolio generated approximately $435 million in adjusted EBITDA and $89 million in free cash flow before growth. First quarter results from existing projects were affected by lower wind resource, which came in at approximately 99% of the long-term average, compared to 103% in the prior year period. This impact was partially offset by contributions from repowered assets, which continued to enhance generation and cash flow across the portfolio. Favorable weather and strong execution during the first quarter allowed us to pull ahead planned major component work from later in the year, which was the primary driver of higher year-over-year O&M costs. Thank you, Alan, good morning, everyone. thank you alan good morning everyone Let's begin with XPLR Infrastructure's detailed results. let's begin with xplr infrastructure's detailed results For the first quarter of 2026, XPLR's portfolio generated approximately $435 million in adjusted EBITDA and $89 million in free cash flow before growth. for the first quarter of 2026 xplr's portfolio generated approximately $435 million in adjusted ebitda and $89 million in free cash flow before growth First quarter results from existing projects were affected by lower wind resource, which came in at approximately 99% of the long-term average, compared to 103% in the prior year period. first quarter results from existing projects were affected by lower wind resource which came in at approximately 99% of the long-term average compared to 103% in the prior year period This impact was partially offset by contributions from repowered assets, which continued to enhance generation and cash flow across the portfolio. this impact was partially offset by contributions from repowered assets which continued to enhance generation and cash flow across the portfolio Favorable weather and strong execution during the first quarter allowed us to pull ahead planned major component work from later in the year, which was the primary driver of higher year-over-year O&M costs. favorable weather and strong execution during the first quarter allowed us to pull ahead planned major component work from later in the year which was the primary driver of higher year-over-year o&m costs In addition, the results for both adjusted EBITDA and free cash flow before growth reflect the impact of asset dispositions completed in 2025. The year-over-year decline in free cash flow before growth was consistent with the company's expectations, as it was primarily driven by higher financing costs resulting from the balance sheet simplification and capital plan funding activities in 2025. Specifically, XPLR Infrastructure's first quarter 2026 free cash flow before growth includes approximately $74 million of incremental corporate interest expense from the approximately $1.75 billion of unsecured notes issuances in March 2025. It also includes approximately $12 million higher year-over-year interest expense from project financings raised in 2025. As a reminder, free cash flow before growth reflects actual cash interest payments within the measurement period. In addition, the results for both adjusted EBITDA and free cash flow before growth reflect the impact of asset dispositions completed in 2025. in addition the results for both adjusted ebitda and free cash flow before growth reflect the impact of asset dispositions completed in 2025 The year-over-year decline in free cash flow before growth was consistent with the company's expectations, as it was primarily driven by higher financing costs resulting from the balance sheet simplification and capital plan funding activities in 2025. the year-over-year decline in free cash flow before growth was consistent with the company's expectations as it was primarily driven by higher financing costs resulting from the balance sheet simplification and capital plan funding activities in 2025 Specifically, XPLR Infrastructure's first quarter 2026 free cash flow before growth includes approximately $74 million of incremental corporate interest expense from the approximately $1.75 billion of unsecured notes issuances in March 2025. specifically xplr infrastructure's first quarter 2026 free cash flow before growth includes approximately $74 million of incremental corporate interest expense from the approximately $1.75 billion of unsecured notes issuances in march 2025 It also includes approximately $12 million higher year-over-year interest expense from project financings raised in 2025. it also includes approximately $12 million higher year-over-year interest expense from project financings raised in 2025 As a reminder, free cash flow before growth reflects actual cash interest payments within the measurement period. as a reminder free cash flow before growth reflects actual cash interest payments within the measurement period As a result, quarterly results can vary based on the timing of interest payments, along with the natural seasonality of wind and solar generation. Taken together, these factors typically result in a lighter contribution in the first quarter. Specifically, XPLR's first quarter 2026 free cash flow before growth is expected to represent roughly 12%-15% of its expected full-year results. Additional granularity on the timing of expected interest payments can be found in the appendix of today's presentation. For 2026, we continue to expect adjusted EBITDA of $1.75 billion-$1.95 billion and free cash flow before growth of $600 million-$700 million. As always, our expectations assume our usual caveats, including normal weather and operating conditions. Let me close by reinforcing the key elements of the XPLR platform. As a result, quarterly results can vary based on the timing of interest payments, along with the natural seasonality of wind and solar generation. as a result quarterly results can vary based on the timing of interest payments along with the natural seasonality of wind and solar generation Taken together, these factors typically result in a lighter contribution in the first quarter. taken together these factors typically result in a lighter contribution in the first quarter Specifically, XPLR's first quarter 2026 free cash flow before growth is expected to represent roughly 12%-15% of its expected full-year results. specifically xplr's first quarter 2026 free cash flow before growth is expected to represent roughly 12%-15% of its expected full-year results Additional granularity on the timing of expected interest payments can be found in the appendix of today's presentation. additional granularity on the timing of expected interest payments can be found in the appendix of today's presentation For 2026, we continue to expect adjusted EBITDA of $1.75 billion-$1.95 billion and free cash flow before growth of $600 million-$700 million. for 2026 we continue to expect adjusted ebitda of $1.75 billion-$1.95 billion and free cash flow before growth of $600 million-$700 million As always, our expectations assume our usual caveats, including normal weather and operating conditions. as always our expectations assume our usual caveats including normal weather and operating conditions Let me close by reinforcing the key elements of the XPLR platform. let me close by reinforcing the key elements of the xplr platform XPLR is a contracted infrastructure platform generating stable cash flows supported by long-term agreements and high credit quality counterparties. Our strategy remains focused on two priorities: continuing to simplify the capital structure and executing on attractive investments into the existing asset base to create value for unit holders. We believe that consistent execution against these priorities supports both our financial flexibility and our strategic positioning. We believe that the combination of stable cash flow generation and a disciplined capital plan allows XPLR to allocate retained cash flows in a value-maximizing manner over time. That discipline underpins our strategy and positions XPLR to capture long-term value as U.S. power demand continues to grow. That concludes our prepared remarks. We will now open the line for questions. XPLR is a contracted infrastructure platform generating stable cash flows supported by long-term agreements and high credit quality counterparties. xplr is a contracted infrastructure platform generating stable cash flows supported by long-term agreements and high credit quality counterparties Our strategy remains focused on two priorities: continuing to simplify the capital structure and executing on attractive investments into the existing asset base to create value for unit holders. our strategy remains focused on two priorities continuing to simplify the capital structure and executing on attractive investments into the existing asset base to create value for unit holders We believe that consistent execution against these priorities supports both our financial flexibility and our strategic positioning. we believe that consistent execution against these priorities supports both our financial flexibility and our strategic positioning We believe that the combination of stable cash flow generation and a disciplined capital plan allows XPLR to allocate retained cash flows in a value-maximizing manner over time. we believe that the combination of stable cash flow generation and a disciplined capital plan allows xplr to allocate retained cash flows in a value-maximizing manner over time That discipline underpins our strategy and positions XPLR to capture long-term value as U.S. power demand continues to grow. that discipline underpins our strategy and positions xplr to capture long-term value as u.s power demand continues to grow That concludes our prepared remarks. that concludes our prepared remarks We will now open the line for questions. we will now open the line for questions

Speaker 6: Thank you. Quick reminder before we start the Q&A. If you'd like to ask a question, please press star and the number one on your telephone keypad to raise your hand and enter the queue. If you'd like to withdraw your question or your question has been answered, please press star one again. We also advise that you pick up your handset when asking for optimal sound quality, and if you're muted locally, please remember to unmute your device. With that, we will take our first question from Nelson Ng from RBC Capital Markets. Please go ahead. Thank you. thank you Quick reminder before we start the Q&A. quick reminder before we start the q&a If you'd like to ask a question, please press star and the number one on your telephone keypad to raise your hand and enter the queue. if you'd like to ask a question please press star and the number one on your telephone keypad to raise your hand and enter the queue If you'd like to withdraw your question or your question has been answered, please press star one again. if you'd like to withdraw your question or your question has been answered please press star one again We also advise that you pick up your handset when asking for optimal sound quality, and if you're muted locally, please remember to unmute your device. we also advise that you pick up your handset when asking for optimal sound quality and if you're muted locally please remember to unmute your device With that, we will take our first question from Nelson Ng from RBC Capital Markets. with that we will take our first question from nelson ng from rbc capital markets Please go ahead. please go ahead

Speaker 5: Great. Thanks, and good morning, everyone. Alan, you mentioned there was a small recontracting during the quarter, with a $25 improvement in the power price. Are you able to provide the power price prior to the recontracting? I was just wondering what the percentage improvement was. Great. great Thanks, and good morning, everyone. thanks and good morning everyone Alan, you mentioned there was a small recontracting during the quarter, with a $25 improvement in the power price. alan you mentioned there was a small recontracting during the quarter with a $25 improvement in the power price Are you able to provide the power price prior to the recontracting? are you able to provide the power price prior to the recontracting I was just wondering what the percentage improvement was. i was just wondering what the percentage improvement was

Speaker 1: Nelson, good morning. Thanks for joining. We didn't provide the prior contract price. Just commercial sensitivity of where the ultimate PPA landed here. I would say if you think about it, right, and we've given you some disclosure previously about on average kind of the uplift. This is in line or even slightly better than kind of the uplift that we would have expected for this market. The opportunities obviously we've highlighted before, right? You know, they're generally in SPP, in ERCOT and WECC. It's in a project in one of those markets and, you know, in line with where we expected, which is it's a multiple above where the previous price was. Nelson, good morning. nelson good morning Thanks for joining. thanks for joining We didn't provide the prior contract price. we didn't provide the prior contract price Just commercial sensitivity of where the ultimate PPA landed here. just commercial sensitivity of where the ultimate ppa landed here I would say if you think about it, right, and we've given you some disclosure previously about on average kind of the uplift. i would say if you think about it right and we've given you some disclosure previously about on average kind of the uplift This is in line or even slightly better than kind of the uplift that we would have expected for this market. this is in line or even slightly better than kind of the uplift that we would have expected for this market The opportunities obviously we've highlighted before, right? the opportunities obviously we've highlighted before right You know, they're generally in SPP, in ERCOT and WECC. you know they're generally in spp in ercot and wecc It's in a project in one of those markets and, you know, in line with where we expected, which is it's a multiple above where the previous price was. it's in a project in one of those markets and you know in line with where we expected which is it's a multiple above where the previous price was

Speaker 5: Okay, thanks. Just on the battery storage front, I think you previously agreed to sell interconnection rights to raise $45 million of the $80 million required for your equity contribution. Have you identified the rest of the projects that you're looking to sell? Then just to follow up on that, is there a timeline in terms of when there could be another batch of projects that XPLR could co-invest in? Okay, thanks. okay thanks Just on the battery storage front, I think you previously agreed to sell interconnection rights to raise $45 million of the $80 million required for your equity contribution. just on the battery storage front i think you previously agreed to sell interconnection rights to raise $45 million of the $80 million required for your equity contribution Have you identified the rest of the projects that you're looking to sell? have you identified the rest of the projects that you're looking to sell Then just to follow up on that, is there a timeline in terms of when there could be another batch of projects that XPLR could co-invest in? then just to follow up on that is there a timeline in terms of when there could be another batch of projects that xplr could co-invest in

Speaker 1: I'll address the first question, which is the funding for the existing storage JV. We're certainly working through a list of potential opportunities with NextEra. As a reminder, construction for these projects aren't slated to begin until at the earliest end of this year. Most likely, it's throughout 2027, and then they're COD-ing in late 2027. We have some time, but with the list and the opportunities that we're looking at, we feel confident we will be able to fund those with additional asset sales. I think your question about will there be additional storage opportunities, I think the right way to think about it is across our 10 GW portfolio, we certainly have multiple gigawatts of interconnection, surplus interconnection. Those represent potential opportunities. I'll address the first question, which is the funding for the existing storage JV. i'll address the first question which is the funding for the existing storage jv We're certainly working through a list of potential opportunities with NextEra. we're certainly working through a list of potential opportunities with nextera As a reminder, construction for these projects aren't slated to begin until at the earliest end of this year. as a reminder construction for these projects aren't slated to begin until at the earliest end of this year Most likely, it's throughout 2027, and then they're COD-ing in late 2027. most likely it's throughout 2027 and then they're cod-ing in late 2027 We have some time, but with the list and the opportunities that we're looking at, we feel confident we will be able to fund those with additional asset sales. we have some time but with the list and the opportunities that we're looking at we feel confident we will be able to fund those with additional asset sales I think your question about will there be additional storage opportunities, I think the right way to think about it is across our 10 GW portfolio, we certainly have multiple gigawatts of interconnection, surplus interconnection. i think your question about will there be additional storage opportunities i think the right way to think about it is across our 10 gw portfolio we certainly have multiple gigawatts of interconnection surplus interconnection Those represent potential opportunities. those represent potential opportunities You know, we certainly feel out of that set, there are opportunities for additional co-located storage or other development opportunities. You know, whether or not those projects are ultimately attractive to XPLR is site location specific. You know, it comes down to a lot of factors, including the demand and the pricing that can be achieved for those specific projects. Ultimately, whether or not, you know, we participate or, you know, monetize those, the value of that interconnect is gonna fall under our existing capital allocation framework, right? It's subject to what else can we do with our money, is there better returning allocations or it's subject to the balance sheet and our cost of financing. Long way of saying, yes, there's opportunity. We have not committed to any incremental investments at this time, but we'll keep you posted. You know, we certainly feel out of that set, there are opportunities for additional co-located storage or other development opportunities. you know we certainly feel out of that set there are opportunities for additional co-located storage or other development opportunities You know, whether or not those projects are ultimately attractive to XPLR is site location specific. you know whether or not those projects are ultimately attractive to xplr is site location specific You know, it comes down to a lot of factors, including the demand and the pricing that can be achieved for those specific projects. you know it comes down to a lot of factors including the demand and the pricing that can be achieved for those specific projects Ultimately, whether or not, you know, we participate or, you know, monetize those, the value of that interconnect is gonna fall under our existing capital allocation framework, right? ultimately whether or not you know we participate or you know monetize those the value of that interconnect is gonna fall under our existing capital allocation framework right It's subject to what else can we do with our money, is there better returning allocations or it's subject to the balance sheet and our cost of financing. it's subject to what else can we do with our money is there better returning allocations or it's subject to the balance sheet and our cost of financing Long way of saying, yes, there's opportunity. long way of saying yes there's opportunity We have not committed to any incremental investments at this time, but we'll keep you posted. we have not committed to any incremental investments at this time but we'll keep you posted

Speaker 5: Thanks. Just one last question. You mentioned the balance sheet. Looking at the balance sheet, there's about $943 million of cash and equivalents. Like, I presume a lot of that cash is at the project level. But, like, roughly how much of that cash is, like, readily available at the corporate level? Thanks. thanks Just one last question. just one last question You mentioned the balance sheet. you mentioned the balance sheet Looking at the balance sheet, there's about $943 million of cash and equivalents. looking at the balance sheet there's about $943 million of cash and equivalents Like, I presume a lot of that cash is at the project level. like i presume a lot of that cash is at the project level But, like, roughly how much of that cash is, like, readily available at the corporate level? but like roughly how much of that cash is like readily available at the corporate level

Speaker 2: Hey, Nelson, it's Jessica. You can see in our SEC filings, we break out the amount of cash held in reserves at the projects. Our 10-Q for this quarter will come out after market close today. Looking back at the last quarter, there's roughly $300 million held in reserves at the projects. Hey, Nelson, it's Jessica . hey nelson it's jessica You can see in our SEC filings, we break out the amount of cash held in reserves at the projects. you can see in our sec filings we break out the amount of cash held in reserves at the projects Our 10-Q for this quarter will come out after market close today. our 10-q for this quarter will come out after market close today Looking back at the last quarter, there's roughly $300 million held in reserves at the projects. looking back at the last quarter there's roughly $300 million held in reserves at the projects

Speaker 5: Okay, great. Thanks. I'll leave it there. Okay, great. okay great Thanks. thanks I'll leave it there. i'll leave it there

Speaker 6: Thank you. Again, if you'd like to ask a question, please press star and the number one on your telephone keypad. We will take our next question from the line of Mark Jarvi from CIBC Capital Markets. Please go ahead. Thank you. thank you Again, if you'd like to ask a question, please press star and the number one on your telephone keypad. again if you'd like to ask a question please press star and the number one on your telephone keypad We will take our next question from the line of Mark Jarvi from CIBC Capital Markets. we will take our next question from the line of mark jarvi from cibc capital markets Please go ahead. please go ahead

Speaker 4: Yeah, thanks. Good morning, Alan. Just going back to the recontracting opportunity. Can you comment at all in terms of, like, how big the funnel would be? Like, how many megawatts across your portfolio are something you're actively exploring? I assume it's more weighted to wind, just given the vintage of the contracts and assets. Is that right? Yeah, thanks. yeah thanks Good morning, Alan. good morning alan Just going back to the recontracting opportunity. just going back to the recontracting opportunity Can you comment at all in terms of, like, how big the funnel would be? can you comment at all in terms of like how big the funnel would be Like, how many megawatts across your portfolio are something you're actively exploring? like how many megawatts across your portfolio are something you're actively exploring I assume it's more weighted to wind, just given the vintage of the contracts and assets. i assume it's more weighted to wind just given the vintage of the contracts and assets Is that right? is that right

Speaker 1: Hey, Mark. Good morning. This is Alan. That is correct. I think that's the right way to think about it. The majority of the opportunity will exist in wind projects and obviously in the specific markets. We've highlighted this before in prior presentations. You know, in the near term, we've given you a schedule, a rough kind of chart that shows there are increasing opportunities as we get closer to 2030. There's definitely gonna be tangible opportunities that we're working on as we speak. The majority, I would say, you know, roughly 70% of the kind of opportunity exists beyond 2030. You know, we're hoping to continue to execute in the next few years leading up to that. Hey, Mark. hey mark Good morning. good morning This is Alan. this is alan That is correct. that is correct I think that's the right way to think about it. i think that's the right way to think about it The majority of the opportunity will exist in wind projects and obviously in the specific markets. the majority of the opportunity will exist in wind projects and obviously in the specific markets We've highlighted this before in prior presentations. we've highlighted this before in prior presentations You know, in the near term, we've given you a schedule, a rough kind of chart that shows there are increasing opportunities as we get closer to 2030. you know in the near term we've given you a schedule a rough kind of chart that shows there are increasing opportunities as we get closer to 2030 There's definitely gonna be tangible opportunities that we're working on as we speak. there's definitely gonna be tangible opportunities that we're working on as we speak The majority, I would say, you know, roughly 70% of the kind of opportunity exists beyond 2030. the majority i would say you know roughly 70% of the kind of opportunity exists beyond 2030 You know, we're hoping to continue to execute in the next few years leading up to that. you know we're hoping to continue to execute in the next few years leading up to that

Speaker 4: Obviously the pricing you received was attractive. I think NextEra said around $20 a megawatt hour is what they got. That's a good uplift. Just curious in terms of what the tenor of the contracts are out there and sort of that trade-off between price and duration. Obviously the pricing you received was attractive. obviously the pricing you received was attractive I think NextEra said around $20 a megawatt hour is what they got. i think nextera said around $20 a megawatt hour is what they got That's a good uplift. that's a good uplift Just curious in terms of what the tenor of the contracts are out there and sort of that trade-off between price and duration. just curious in terms of what the tenor of the contracts are out there and sort of that trade-off between price and duration

Speaker 1: I believe it was a 15-year contract. We'll confirm. I believe it was a 15-year contract. i believe it was a 15-year contract We'll confirm. we'll confirm

Speaker 4: That's generally what the counterparties are looking for. Is that sort of that term at this point, or is there a real range? That's generally what the counterparties are looking for. that's generally what the counterparties are looking for Is that sort of that term at this point, or is there a real range? is that sort of that term at this point or is there a real range

Speaker 1: Yeah. Yeah. yeah

Speaker 4: Out there of shorter duration? Yeah. Out there of shorter duration? out there of shorter duration Yeah. yeah

Speaker 1: Yeah. It's just to confirm, it was a 15-year busbar contract here. As you know, there's always a trade-off between tenor, right? Whether it's hub settled or busbar. Ultimately, you know, for us this made the most sense, right? Between duration of the contract, like the fact that in this particular market we preferred the busbar over a potentially higher but busbar, but hub settled contract here. Yeah. yeah It's just to confirm, it was a 15-year busbar contract here. it's just to confirm it was a 15-year busbar contract here As you know, there's always a trade-off between tenor, right? as you know there's always a trade-off between tenor right Whether it's hub settled or busbar. whether it's hub settled or busbar Ultimately, you know, for us this made the most sense, right? ultimately you know for us this made the most sense right Between duration of the contract, like the fact that in this particular market we preferred the busbar over a potentially higher but busbar, but hub settled contract here. between duration of the contract like the fact that in this particular market we preferred the busbar over a potentially higher but busbar but hub settled contract here

Speaker 4: Got it. Just on the battery projects co-investment, are the costs all locked down for those projects? Like, you know, everything locked down in terms of equipment, EPC, all that kind of stuff? Just so that you know that the $80 million investment is more or less firm at this point. Got it. got it Just on the battery projects co-investment, are the costs all locked down for those projects? just on the battery projects co-investment are the costs all locked down for those projects Like, you know, everything locked down in terms of equipment, EPC, all that kind of stuff? like you know everything locked down in terms of equipment epc all that kind of stuff Just so that you know that the $80 million investment is more or less firm at this point. just so that you know that the $80 million investment is more or less firm at this point

Speaker 1: This is a true equity co-investment alongside NextEra Energy Resources. As with any equity investment, we, you know, if there are cost overruns, we of course would be as a partner funding that. We feel good about this project. It's well, you know, well advanced, you know, supply chain. We have the same benefits, right? Of, you know, the benefit of having NextEra as a co-investment partner here is that we have access to that supply chain and the equipment we feel very good about having secured. This is a true equity co-investment alongside NextEra Energy Resources. this is a true equity co-investment alongside nextera energy resources As with any equity investment, we, you know, if there are cost overruns, we of course would be as a partner funding that. as with any equity investment we you know if there are cost overruns we of course would be as a partner funding that We feel good about this project. we feel good about this project It's well, you know, well advanced, you know, supply chain. it's well you know well advanced you know supply chain We have the same benefits, right? we have the same benefits right Of, you know, the benefit of having NextEra as a co-investment partner here is that we have access to that supply chain and the equipment we feel very good about having secured. of you know the benefit of having nextera as a co-investment partner here is that we have access to that supply chain and the equipment we feel very good about having secured

Speaker 4: Okay, thanks. Okay, thanks. okay thanks

Speaker 1: Thank you. Thank you. thank you

Speaker 6: Seeing as there are no further questions on the queue, that concludes our question and answer session for today. That also concludes our call for today. Thank you all for joining, and you may now disconnect. Seeing as there are no further questions on the queue, that concludes our question and answer session for today. seeing as there are no further questions on the queue that concludes our question and answer session for today That also concludes our call for today. that also concludes our call for today Thank you all for joining, and you may now disconnect. thank you all for joining and you may now disconnect