Sunnova Energy International Inc.

Thank you for your patience, everyone. The Sunova fourth quarter four-year 2023 earnings conference call will begin shortly. To ask a question during today's call, please press start followed by one on your telephone keypad. To withdraw your question, please press start followed by two. Thank you. Good morning and welcome to Sunova's fourth quarter and full year 2023 earnings conference call. Today's call is being recorded and we have allocated an hour for prepared remarks and question and answer. At this time, I would like to turn the conference over to Rodney McMahon, Vice President, Investor Relations at Sunova. Thank you. Please go ahead.

Thank you, Operator. Before we begin, please note during today's call, we will make forward-looking statements that are subject to various risks. and uncertainties as described in our slide presentation, earnings press release, and our 2023 Form 10-K. Please see those documents for additional information regarding those factors that may affect these forward-looking statements. Also, we will reference certain non-GAAP measures during today's call. Please refer to the appendix of our presentation as well as the earnings press release for the appropriate GAAP to non-GAAP reconciliations and cautionary disclosures. On the call today are John Berger, Synovus Chairman and Chief Executive Officer, and Robert Lane, Executive Vice President and Chief Financial Officer. I will now turn the call over to John.

Good morning and thank you for joining us. 2023 proved to be a formidable test for the residential solar industry. Macroeconomic challenges and a rapidly evolving landscape meant that companies who were unable to adapt and tackle these challenges head on have struggled or exited the market. While this unfortunate reality for some may have caused apprehension and generated negative headlines, it also presents a silver lining of reduced competition for adaptable companies like Sanova. We stand apart in this regard, fortified by our scale, robust balance sheet, agility, and forward-thinking approach, enabling us to not only weather the storm, but pick up market share and expand margins in the process. The past few weeks, we have seen encouraging signs of improved market dynamics beginning to emerge. Tighter risk premiums reflected in our recent securitizations, coupled with an uptick in overall market demand as we transition beyond the seasonally softer period for customer originations, paints a more optimistic picture than many perceive. To better position Sunova for the rest of 2024 and beyond, we have continued to increase our focus on cash generation by pursuing additional margin expansion exploring potential asset sales, and rapidly implementing cost-cutting measures. To achieve cost savings, we are continuing to implement a range of initiatives, primarily focused on automation-driven efficiencies. This strategic approach will enable Sanova to sustain growth without expanding its headcount. Additionally, we have initiated an immediate pause in spending related to select growth initiatives, such as international expansion. While these initiatives are temporarily on hold, we will remain committed to revisiting them in the future contingent upon improved market conditions and an improved valuation of SNOVA's equity. Factoring in these cost reductions, we now anticipate a revised cost structure will result in a decrease of at least 20% in total adjusted operating expense per customer in 2024. Slide three highlights our growth in customer count, power generation, and energy storage under management, battery penetration, and expected contracted cash inflows for both 2024 and the remaining life of our customer contracts. During the fourth quarter, we placed over 34,000 customers into service, which brought our total customer count at the end of 2023 to just over 419,000, and our megawatt hours and solar power generation under management, 1,090 megawatt hours and 2.5 gigawatts, respectively. Turning to slide four, you will see as of December 31st, 2023, the expected cumulative nominal contracted cash inflows associated with our customer contracts over a weighted average remaining life of 22 years was $16 billion. In 2024, These same contracts are expected to generate $789 million in contracted cash inflows. These inflows are the sum of all expected cash generated from customer lease, PPA, and loan contracts, including those from SRECs and grid services in service as of December 31, 2023. Also on this slide, we provide our expectations of levered cash flows, which, based only on what was securitized as of December 31st, 2023, is expected to be $136 million in 2024 and $4.9 billion on a cumulative nominal basis. Cumulative levered cash flows will continue to grow as new assets are added and will grow on a per annum basis as tax equity flips occur and debt is paid down. I will now hand the call over to Rob, who will walk you through our financial highlights.