What happened

Shares of recently created Brookfield Renewable Corporation (NYSE:BEPC) leaped 13.3% in August, according to data provided by S&P Global Market Intelligence. While the renewable energy producer reported strong second-quarter results last month, that wasn't the only factor powering its big month.  

So what

At the end of July, Brookfield Renewable Partners (NYSE:BEP) completed two notable transactions. It closed its acquisition of TerraForm Power and completed a special distribution of Brookfield Renewable Corporation shares to its investors, which was akin to a stock split. This move also opened the company up to new investors who weren't able to invest in Brookfield Renewable Partners' units because of the tax reporting issues of its partnership structure.

They took advantage of that opportunity by purchasing shares of the newly minted corporation last month. As a result, Brookfield Renewable Corporation's stock outperformed Brookfield Renewable Partners' units, which only gained 5.5% on the month.

A hydroelectric power plant.

Image source: Getty Images.

Also aiding last month's run was the combined company's strong second-quarter earnings report. Brookfield Renewable grew its normalized funds from operations by more than 18% despite some weakness in its core hydroelectric operations. The company more than offset that headwind thanks to the strong results of its wind and solar energy businesses. It sees that upward trend continuing, powered by its merger with TerraForm Power and its rapidly expanding development pipeline. 

Now what

Brookfield Renewable's legacy corporate structure had been holding it back since some investors can't invest in limited partnerships. Because of that, they flocked to the newly minted Brookfield Renewable Corporation when finally given the opportunity to invest in a traditional corporation. As a result, the entity now trades at a premium to the partnership's value.

But both entities still have lots of upside ahead as they expand their portfolio of cash-flowing renewable energy assets. Because of that, they remain attractive options for investors seeking exposure to the fast-growing renewable energy sector.