Canadian Utilities Limited Class A · TSX:CU
Canadian Utilities Limited Class A — Investor Presentation (March 2025)
46 slides from Canadian Utilities Limited Class A's investor presentation, Mar 25, 2025
Slide 1: Investor Presentation
Investor Presentation Canadian Utilities Limited March 25, 2025
Slide 2: Table of Contents
Legal Notice 3 CU Investor Presentation Canadian Utilities Overview 5 Organizational Structure 5 Table of Financial Overview 6 Contents Growth Drivers 8 Community Engagement 9 ATCO Energy Systems 10 Overview 11 Our Next Phase of Growth 20 Capital Expenditures 21 Yellowhead Mainline 22 Central East T
Slide 3: Legal Notice
Legal Notice Forward-Looking Information Advisory Certain statements made by company representatives and information provided in this presentation may be considered forward-looking information. Forward-looking information is often, but not always, identified performance, words such as "anticipate",
Slide 4: Legal Notice
Legal Notice Non-GAAP and Other Financial Measures Disclosure Advisory This presentation contains various “total of segments measures”, “non-GAAP financial measures” and “non-GAAP ratios” (as such terms are defined in National Instrument 52-112 – Non-GAAP and Other Financial Measures Disclosure ("NI
Slide 5: Organizational Structure
Canadian Utilities Overview Organizational Structure 100% 100% 100% 100% Corporate Alberta Electricity Distribution LUMA Energy Electricity Generation Natural Gas Distribution (50% JV with Quanta Services Inc.) Alberta Electricity Transmission Northland Utilities Storage & Industrial Water Electrici
Slide 6: FY 2024 adjusted earnings waterfall
Financial Overview FY 2024 adjusted earnings1 waterfall $61 ($2) $4 ($12) $647 +9% Year-over-Year $596 Growth FY ATCO ATCO ATCO Corporate & Other 2 FY 2023 1 Energy Systems 2 EnPower 2 Australia 2 2024 1 Note: Millions of Canadian dollars. 1. Total of segments measure (as defined in NI 52-112). The
Slide 7: Strong cash flows support capital program
Financial Overview Strong cash flows support capital program Cash flows from operating activities Capital expenditures $1,917 $1,780 $1,611 $1,360 FY 2023 FY 2024 FY 2023 FY 2024 Portfolio of cash flow generating assets support our strategic investments that underpin long-term growth Note: Millions
Slide 8: Canada's energy future begins in Alberta
Growth Drivers Canada’s energy future begins in Alberta #1 GDP Per Capita 1 #1 Population Growth 2 $153B+ New Investment in Major Projects in Alberta3 1. Government of Alberta, GDP per capita, November 2024. 2. Statistics Canada, September 2024. 3. Government of Alberta, Major Projects, January 2025
Slide 9: Community Engagement
Community Engagement A long history of collaborating with Indigenous communities 37+ YEARS 1987: established relationship with Denendeh Investments $ 564M in economic benefits to First Nations since 20191 67 MOUs and Agreements completed with First Nations1 1. As of December 31, 2024. Note: Represen
Slide 10: Energy Systems
Energy Systems Canadian Utilities Limited Investor Presentation 10
Slide 11: An exceptional jurisdiction for electric and gas infrastructure investment
ATCO Energy Systems An exceptional jurisdiction for electric and gas infrastructure investment ▪ Strong macroeconomic factors, including energy transition support and investment ▪ Government has supportive and pro-business environment ▪ Highly gas supportive jurisdiction ▪ Supportive regulatory envi
Slide 12: Pure-play, gas and electric regulated utility
ATCO Energy Systems Pure-play, gas and electric regulated utility $3.0B+ $14.5B 7 Utilities ATCO Electric Transmission FY 2024 Revenue1 2024 Mid-Year Rate Base2 ATCO Electric Distribution ATCO Gas ATCO Pipelines $632M 5.4% ATCO Electric Yukon Northland Utilities (NWT) FY 2024 3 Year Mid-Year LUMA En
Slide 13: Unlocking the energy transition
ATCO Energy Systems Unlocking the energy transition Electric T&D assets + Natural Gas T&D assets Optionality Case study: Mix of electric & gas assets Dow’s net zero, polyethylene provide unique opportunities in response to and ethylene derivatives plant decarbonization scenarios ▪ Energy Systems sup
Slide 14: Transmission and distribution underpin growth in Alberta
ATCO Energy Systems Transmission and distribution underpin growth in Alberta Adjusted earnings contribution by operating segment1 LUMA Energy Electricity (Puerto Rico) 9% 265,000 customers3 Electricity Distribution2 24% Natural Gas Gas Distribution 22% 1.3M Alberta ~91% customers3 derived from Alber
Slide 15: Alberta's economic growth is underpinned by natural gas
ATCO Energy Systems Alberta’s economic growth is underpinned by natural gas Industrial sector relies Alberta is a leading heavily on natural gas 6.8 Bcf/d natural gas producer 11 Bcf/d natural gas production in Alberta, representing 61% of total Canadian production1 is the estimated demand for Alber
Slide 16: The largest gas distributor in Alberta
ATCO Energy Systems The largest gas distributor in Alberta Natural Gas Distribution Volume1,2,3 Energy Systems delivers natural gas Industrial 16.6 PJ to the electricity Commercial 130.3 PJ producers facing increased demand from growth and Residential 124.0 PJ electrification 42,000km of pipeline Ou
Slide 17: An owner, operator of critical electric infrastructure
ATCO Energy Systems An owner, operator of critical electric infrastructure in Alberta and Canada’s north Rate base investment opportunities System resiliency, reliability and climate adaptation driven by weather events Yukon 11,200 km NW Territories Stable base anchored by diverse industrials with l
Slide 18: LUMA: Deploying our operations expertise in Puerto Rico
ATCO Energy Systems LUMA: Deploying our operations expertise in Puerto Rico 15-year contract to maintain, operate and 1.5M 50/50 modernize Puerto Rico’s transmission & distribution system1 customers strong ongoing partnership ▪ Fixed fee for service paid ▪ Flow-through of system served in with Quant
Slide 19: A team that consistently delivers infrastructure builds
ATCO Energy Systems A team that consistently delivers infrastructure builds Project Location In-service date Description 200-230km high-pressure Yellowhead Edson to Q4 2027 natural gas pipeline and Mainline Edmonton (Expected) compression facilities Red Deer, Central East Q2 2026 240kV Lacombe & Tra
Slide 20: Our next phase of growth
Our next phase of growth Canadian Utilities Limited Investor Presentation 20
Slide 21: Capital Expenditures (3-year plan)
ATCO Energy Systems Capital Expenditures (3-year plan) $5.8B 5.4% 3 Year 3 Year Mid-Year Capital Expenditure Plan Rate Base1 CAGR2 $2.5B $1.8B $1.5B $1.6 $1.4B $0.2 $0.4 $0.9 $0.4 $0.4 $0.3 $0.4 $0.4 $0.3 $0.2 $0.2 $0.5 $0.4 $0.3 $0.3 2024 2025E 2026E 2027E Electricity Distribution Electricity Trans
Slide 22: Yellowhead Mainline
ATCO Energy Systems Yellowhead Mainline Existing pipeline Yellowhead Needs application filed with AUC 200-230 km length pipeline Production in September 2024 Fort McMurray Total investment for the project is 1.1 Bcf/d capacity estimated at $2.8 billion Construction to start in 2026; expected to be o
Slide 23: Yellowhead Mainline Timeline
ATCO Energy Systems Yellowhead Mainline Timeline Q2 2024 Q3 2024 Q2 2025 Q3 2025 Q2 2026 Q3 2026 Q4 2027 Pre-FEED AUC Need AUC Need approval Land acquisition Regulatory and Construction Target complete Application FEED complete complete permitting start in-service date AUC Facility complete Long lea
Slide 24: Central East Transfer-Out Project (CETO)
ATCO Energy Systems PROJECT TIMELINE Central East Transfer-Out Project (CETO) Aug 2021 Needs and Facility Application approved ATCO is building 85 km of 240 kV double-circuit powerline and expanding Dec 2022 the Tinchebray Substation to connect customers to renewable generation AESO direction to beg
Slide 25: EnPower
EnPower Canadian Utilities Limited Investor Presentation 25
Slide 26: A strong, stable base of unique operating assets
ATCO EnPower A strong, stable base of unique operating assets Generation Storage 457 MW $313M 117 PJ operating assets1,2 Revenue1 natural gas storage $146M (wind, solar, hydro & gas) capacity 1.5 GW development pipeline Total Adjusted EBITDA1,3 544,000m3 natural gas liquids storage Adjusted EBITDA C
Slide 27: Our footprint is a critical part of Alberta's energy future
ATCO EnPower Our footprint is a critical part of Alberta’s energy future Assets 1 Carbon natural gas storage 2,000 acres owned 2 Alberta Hub natural gas storage ATCO Heartland Energy Centre in the Alberta 3 (natural gas liquid storage) Fort McMurray 4 ATCO Heartland industrial water system Industria
Slide 28: We are at the forefront of Alberta's evolving energy needs
ATCO EnPower We are at the forefront of Alberta’s evolving energy needs MATURE ESTABLISHED AND GROWING EMERGING H H Natural Gas & NGL Storage Generation Cleaner Fuels ▪ Natural gas and NGL's are fuels used to ▪ Alberta is home to world-class wind and ▪ Uniquely positioned for cleaner hydrogen suppor
Slide 29: Storage leaders in the Alberta market
ATCO EnPower Storage leaders in the Alberta market 117 PJ Natural gas >20% ▪ Multi-year contracts with high quality, diverse customer base provides predictability with upside potential from Alberta gas storage future spreads outlook 5 storage capacity market share ▪ Growing capacity and revenue with
Slide 30: Critical infrastructure for natural gas and NGLs
ATCO EnPower Critical infrastructure for natural gas and NGLs, fuels that enable Canada’s transition1,2 LATE-STAGE DEVELOPMENT CONSTRUCTION FEED COD / OPERATING – STORAGE FINAL INVESTMENT DECISION COD / OPERATING – WATER COD & production capacity 2025 2026 2027 2028 2029 2030 NG Storage Expansion I
Slide 31: Canadian electricity generation
ATCO EnPower Canadian electricity generation Generation (MWh) Contractedness 943,014 49,173 Merchant Power Purchase 839,068 68,971 167,338 27% Agreement 60,599 73% FY Hydroelectric 2024 Solar 709,498 726,503 Wind FY 2023 FY 2024 Higher generation offset lower merchant pricing Note: As of December 31
Slide 32: Generation Portfolio
ATCO EnPower Generation Portfolio Owned Capacity Operating Assets Type Gross Capacity (MW) (MW) Forty Mile Phase 1 Wind 225 225 Adelaide Wind 40 30 Barlow Solar 31 15 Grew generation Deerfoot Empress Solar Solar 41 39 20 39 portfolio to El Resplandor Solar PV 3 ~3 457 MW from 70 Oldman River Hydro 3
Slide 33: Atlas Carbon Storage Hub offers open access decarbonization
ATCO EnPower H H Atlas Carbon Storage Hub offers open access decarbonization for Alberta industrials Alberta Carbon Milestone Grid Final Investment Decision (FID) 50/50 Bison Hub Wolf Pathways Alliance JV with Shell Wabamun Hub Hub for Phase 1 achieved Enabling Shell to Edmonton produce cleaner fuel
Slide 34: ATCO Heartland Hydrogen Hub (AH3)
ATCO EnPower H H ATCO Heartland Hydrogen Hub (AH3) Achievements to date ATCO Heartland Business update Energy Centre • Signed Letter of Intent with Linde Canada Inc. (Linde) in 2024. • Working alongside Linde and other parties to further the development and Heartland Hydrogen Hub Site commercial suc
Slide 35: Alberta is ideally positioned for the energy transition
ATCO EnPower Alberta is ideally positioned for the energy transition Resource Alberta has one of the best geological Macro Demand formations to safely store emissions and is a strong wind and solar resource region. Drivers Gas Supply Energy Market Canada is the fifth largest natural gas ▪ Industrial
Slide 36: Partnership strategy to derisk projects
ATCO EnPower Partnership OFFTAKERS strategy to derisk projects STRATEGIC PARTNERS EQUITY INVESTORS FINANCIAL INSTITUTIONS INDIGENOUS COMMUNITIES GOVERNMENT Canadian Utilities Limited Investor Presentation 36
Slide 37: Australia
Australia Canadian Utilities Limited Investor Presentation 37
Slide 38: Business Highlights
ATCO Australia Business Highlights ▪ ATCO Gas Australia is a regulated provider of natural gas distribution 14,900 KM services in Western Australia, serving metropolitan Perth and Natural Gas Pipelines surrounding regions. (Owns and operates) ▪ ATCO Power Australia develops, builds, owns and operate
Slide 39: Growing our stable base of assets in Australia
ATCO Australia Growing our stable base of assets in Australia $1.4B $48M Predictable 2024 Mid-Year Adjusted Earnings2 and stable Rate Base1 cash flow with a proven ability ~100% 10.5% to outperform approved ROE Earnings derived from avg. ROE regulated operations (2011-2024) and long-term PPAs 1. Non
Slide 40: Sixth Access Arrangement (AA6)
ATCO Australia Sixth Access Arrangement (AA6)1 Total Tariff Revenue $1,375M $1,375. 00 Nominal Return on Equity +$536M +3.21% 8.23% $839M AA5 AA6 Accelerated Depreciation $38M 5.02% $0 AA5 AA6 AA5 AA6 Canadian Utilities Limited Investor Presentation 40 1. AA6 is implemented for the period of January
Slide 41: Why Invest
Why Invest Why Invest Regulated utilities create a stable base of recurring cash flow and dividends Non-regulated opportunities in electricity generation, cleaner fuels, and energy storage provide an opportunity for higher-than-utility growth and deliver diversification Track record of increasing di
Slide 42: Appendix
Appendix Canadian Utilities Limited Investor Presentation 42
Slide 43: Conservative balance sheet and well distributed debt profile
Credit Ratings Conservative balance sheet and well distributed debt profile CU Inc. ($ millions) $220 $200 $200 $185 $160 A A- $150 $125 A (high) A- S&P Global Ratings has assigned ATCO Gas Australia Pty Ltd a ‘BBB+’ issuer and senior unsecured debt credit rating with a positive outlook. 2028 … 2034
Slide 44: Alberta is well positioned for the data centre build out
Data Centres Alberta is well positioned for the data centre build out Gas Power Generation Gas Renewable Distribution Power and Storage Generation Abundant Regulatory Natural Gas Alberta’s Environment Resources Data Centre Advantage Abundant Water Land Access Resources Canadian Utilities Limited Inv
Slide 45: ATCO's asset base spans the entire data centre value chain
Data Centres ATCO’s asset base spans the entire data centre value chain Inputs Pipelines & Storage Generation Transmission Market ✓ CO Sequestration 2 CO2 ✓ Natural Gas Supply ✓ Gas Pipelines ✓ Gas Storage ✓ Natural Gas Power ✓ Data Centres ✓ Electricity Transmission ✓ Water Supply ✓ Renewable Power
Slide 46: InvestorRelations@atco.com
InvestorRelations@atco.com Canadian Utilities Limited Investor Presentation 46
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