Emera Incorporated · TSX:EMA
Emera — Q2 2023 Earnings Presentation
19 slides from Emera's earnings presentation, Aug 11, 2023
Slide 1: Second Quarter 2023
Second Quarter 2023 Friday, August 11, 2023 The meeting will begin at 9:30 AM AT / 8:30 AM ET
Slide 2: Forward Looking Information, Non-GAAP Measures & Other
Forward Looking Information, Non-GAAP Measures & Other FORWARD-LOOKING INFORMATION Factors that could cause results or events to differ from current Emera undertakes no obligation to revise or update any This document contains “forward-looking information” expectations include without limitation: re
Slide 3: Business Update
Business Update Scott Balfour PRESIDENT & CEO 2
Slide 4: Financial Highlights
Financial Highlights Q2 2023 Adjusted EPS1 YTD 2023 Adjusted EPS1 $1.51 $1.58 $0.59 $0.60 Highlights • Adjusted EPS1 increased by 2% for the quarter and 5% year-to- Q2 2022 Q2 2023 YTD 2022 YTD 2023 date Q2 2023 Reported EPS YTD 2023 Reported EPS • Contribution to adjusted earnings1 from regulated u
Slide 5: Capital Deployment Supports Growth Across Portfolio
Capital Deployment Supports Growth Across Portfolio Highlights • Over 1% customer growth in Nova Scotia, ~2% at Tampa Electric and 5% at Peoples Gas compared 10.0% $29.7 to 2022. Capital investments focused on supporting growing demand, system reliability 15.0% $21.9 and grid hardening, renewable in
Slide 6: Regulatory Update
Regulatory Update 2023 Ongoing Rate Cases: Peoples Gas • In April 2023 PGS filed a rate case for new rates to become effective in January 2024 • PGS requested a $139 million USD increase in annual base rates, including $11 million USD from the cast iron and bare steel replacement rider. This reflect
Slide 7: Financial Highlights
Financial Highlights Greg Blunden CHIEF FINANCIAL OFFICER 6
Slide 8: Quarterly Highlights
Quarterly Highlights Q2 2023 Adjusted EPS1 YTD 2023 Adjusted EPS1 Q2 2023 Operating Cash Flow2 $1,163 $148 $1.51 $1.58 $966 $0.59 $0.60 $220 Q2 2022 Q2 2023 YTD 2022 YTD 2023 Q2 2023 Adjusted Net Income1 YTD 2023 Adjusted Net Income1 $1,015 5% Increase in operating cash flow2 excluding $746 impacts
Slide 9: Continued Progress Towards Improving Key Credit Metrics
8 Continued Progress Towards Improving Key Credit Metrics Cash Flow Step Changes from 2022 to 2023 Progress YTD 2023: $60 $95 Excluding fuel and storm deferrals, we’ve $240 delivered over $1 billion of cash flow – roughly half our $2.1 billion target LIL commissioning completed in April 2023. In
Slide 10: Q2 2023 Adjusted EPS Waterfall
Q2 2023 Adjusted EPS1 Waterfall $0.03 $0.05 $0.03 $0.02 $0.04 $0.02 $0.66 $0.64 $0.62 $0.59 $0.60 $0.60 Q2 2022 Adjusted Canadian Electric Florida & Foreign Emera Gas Utilities and Infra. WA Share Q2 2023 Adjusted Earnings Per Share 1 Utilities Other Electric Utilities 2 Exchange Energy & Corporate
Slide 11: YTD 2023 Adjusted EPS Waterfall
YTD 2023 Adjusted EPS1 Waterfall $0.03 $0.09 $0.04 $0.06 $0.05 $0.08 $1.69 $1.65 $1.63 $1.59 $1.58 $1.58 $1.51 $1.51 Q2 2022 YTD Adjusted Foreign Emera Canadian & Gas Utilities Corporate and WA Share Q2 2023 YTD Adjusted Earnings Per Share 1 Exchange Energy Other Electric Utilities 2 & Infra Florida
Slide 12: Interest Rate Impacts & Outlook
Interest Rate Impacts & Outlook Interest Rate Impacts by Segment (Pre-tax, Compared to 2022) Mitigating factors to regulatory lag in millions of CAD • Well established rate case cadence As of June 30, 2023 Florida Electric $ Three months ended (30) $ Six months ended (59) • Constructive regulatory e
Slide 13: Upcoming Investor Events
Upcoming Investor Events GLIO New York • September 26th, 2023 Wolfe Utilities & Midstream Conference • September 27th – 28th, 2023 Australia Marketing • October 2nd – 6th, 2023 Q3 2023 Results & Analyst Call • November 10th, 2023 EEI Financial Conference • November 12th-14th, 2023 12
Slide 14: Appendix
Appendix 13
Slide 15: Capital Forecast by Affiliate
Capital Forecast by Affiliate 2023F 2024F1 2025F 2023–2025 Total US OPERATIONS Tampa Electric $ 1,310 $ 1,315 $ 1,170 $ 3,795 Peoples Gas 340 340 355 1,035 New Mexico Gas 120 125 135 380 Emera Caribbean 80 80 80 240 US OPERATIONS CAPITAL FORECAST (USD millions) $ 1,850 $ 1,860 $ 1,740 $ 5,450 FX rat
Slide 16: Rate Base Forecast by Affiliate
Rate Base Forecast by Affiliate1 2021A 21’–25’ 21’–25’ CAGR 2021A 2 2022A 2023F 2024F 2025F Adjusted FX CAGR Adjusted FX US OPERATIONS Tampa Electric3 $ 8,475 $ 8,475 $ 9,480 $ 11,060 $ 11,080 $ 11,755 8.5% Peoples Gas3 1,605 1,605 1,880 2,210 2,440 2,675 13.6% Seacoast Gas4.5 185 185 195 180 180 17
Slide 17: Foreign Exchange and Interest Rate Exposure
Foreign Exchange and Interest Rate Exposure Foreign Exchange Exposure As of June 30, 2023 Approximate % of USD Earnings Hedged Rate 2023 69% 1.32 2024 48% 1.33 2025 8% 1.35 Interest Rate Exposure As of December 31, 2022 Notional amount (in millions of CAD) Percentage of total debt Total Debt (Short
Slide 18: Emera Energy Quarterly Adjusted Earnings Contribution
Emera Energy Quarterly Adjusted Earnings Contribution Millions $CAD Q3/21 Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Marketing & Trading $ (6) 19 25 (7) 8 39 53 (25) Maritimes Canada - (2) - (1) (1) (3) (1) 3 Bear Swamp 1 - 2 2 1 5 4 2 TOTAL ADJUSTED NET INCOME1 $ (5) 17 27 (6) 8 41 56 (20) Millions
Slide 19: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three months ended June 30 Six months June 30 2023 2022 2023 2022 Florida Electric $ 177 161 284 273 Canadian Electric 49 39 141 137 Gas Utilities & Infrastructure 38 39 132 116 Other Electric Utilities 10 8 14 9 Other, excluding corporate costs (26) (12) 25 9 Adjusted net in