XPLR Infrastructure, LP

For the first quarter of 2026, XPLR generated approximately $435 million in adjusted EBITDA and $89 million in Free Cash Flow Before Growth. Wind resource came in at about 99% of the long-term average versus 103% in the prior-year period, while repowered assets helped offset some of the pressure. Year over year, Free Cash Flow Before Growth was hurt by about $74 million of incremental corporate interest expense from the approximately $1.75 billion of unsecured notes issued in March 2025 and about $12 million of higher project-finance interest expense from 2025. Management reiterated full-year 2026 guidance for adjusted EBITDA of $1.75 billion to $1.95 billion and Free Cash Flow Before Growth of $600 million to $700 million.

CEO Alan Liu said the quarter was a solid start to 2026 and emphasized continued execution on simplifying the capital structure and maximizing portfolio value. He highlighted repowering progress, the successful completion of the final expected draw from 2025 project financing commitments, and a relatively modest financing calendar ahead, with the next major corporate refinancing not expected until 2027. He also sounded upbeat about improving power market fundamentals and said a recent recontracting deal at roughly $25/MWh above the project’s realized pricing over the past year may be an early sign of broader opportunities.

CFO Jessica Geoffroy focused on the earnings bridge and the drivers of cash flow. She said Q1 results were affected by lower wind resource and higher O&M from pulling major component work forward, and that the decline in Free Cash Flow Before Growth was consistent with expectations because of higher financing costs tied to 2025 balance sheet actions. She also quantified the interest burden: roughly $74 million from the March 2025 unsecured notes and about $12 million from project financings, while reaffirming the 2026 targets of $1.75 billion to $1.95 billion of adjusted EBITDA and $600 million to $700 million of Free Cash Flow Before Growth.

Analysts pressed management on the recontracting opportunity, asking how large the funnel might be and what contract terms look like. Alan said most of the opportunity is in wind, largely in SPP, ERCOT, and WACC, and that roughly 70% of the opportunity is beyond 2030; he also confirmed the recent deal was a 15-year busbar contract and that the pricing/tenor tradeoff made sense for the market. Questions also focused on the battery storage JV funding and future co-investment opportunities; management said it expects to fund the remaining equity through additional asset sales, sees multiple gigawatts of surplus interconnection across its 10-GW portfolio, but has not committed to any incremental investments yet.