Avista Corporation · NYSE:AVA
Avista — Investor Presentation (September 2014)
23 slides from Avista's investor presentation, Sep 16, 2014
Slide 1: 125 Years of Service
125 YEARS OF SERVICE NYSE: AVA www.avistacorp.com
Slide 2: Disclaimer
Disclaimer All forward-looking statements are Avista management's present expectations of future events and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. For more information on such f
Slide 3: A core utility business with growth platforms
Acore utility business with growth platforms = Regulated electric and natural gas operations = Serves customers in Washington, Idaho and Oregon = Contributes over 90% of earnings Alaska Electric Light & Power Company (AEL&P) = Primary subsidiary of Alaska Energy and Resources Company (AERC) = Serves
Slide 4: Key drivers to building value
Key drivers to building value Projecting earnings growth of 4% to 5% Alaska Electric Light & Power Company (AEL&P) Other Businesses 5% to 6% rate base growth through investmentin our utility system Load growth ~1% Attractive dividend growth of 4% to 5% Acquisition effective July 1, 2014 Load growth
Slide 5: 2014 strategic changes reshaping Avista
2014 strategic changes reshaping Avista = Ecova disposition = Alaska Energy and Resources Company acquisition
Slide 6: Ecova disposition — monetizing the value for shareholders
Ecova disposition — monetizing the value for shareholders Completed sale of Ecova to Cofely USA, Inc. on June 30, 2014 = Founded in 1995 = Initially four employees, increased to over 1,500 = $177 million in revenues (2013) = $335 million sales price a Net proceeds approximately $133 million* ($219mm
Slide 7: AERC acquisition — one gateway to new growth
AERC acquisition— one gateway to new growth Transaction closed July 1, 2014 = Issued 4.5 million new shares of common stock = Purchase price $170 million, less the assumption of debt and other closing adjustments = Recapitalizing to authorized capital structure a Issuing $75M long-term secured debt
Slide 8: Avista Utilities
Avista Utilities ee
Slide 9: Strong foundation and deep dedication
Strong foundation and deep dedication Providing safe and reliable service for over 125 years = Serves electric and natural gas customers a 30,000 square mile service territory a Service area population 1.5 million WASHINGION = 365,000 electric customers i - 325,000 natural gas customers MONTANA. = S
Slide 10: Well positioned with a clean mix of generation resources
Well positioned with a clean mix of generation resources Founded on clean, renewable hydropower = Strategy is to control a portfolio of resources that responsibly meet our long-term energy needs = Long resources until 2020 a Planto addtwo 83 MW single-cycle CTs, by the beginning of 2020 andthe end o
Slide 11: Replacing and upgrading facilities and technology
Replacing and upgrading facilities and technology 5% to 6% rate base growth Avista Uti ($in millions) ies Capital Expenditures* = Environmental ™ Generation aGas =| Other ™ Growth Enterprise Technology aT&D 2014 2015 2016 Projected * Other includes Facilities and Fleet ** Excludes planned capital ex
Slide 12: Driving effective regulatory outcomes
Driving effective regulatory outcomes Washington breed = August 18, 2014reachedan all-party settlement agreement = Designedto increase electric base revenues by $7.0 million and natural gas base revenues by $8.5 million = Fulldecouplingmechanism for electric and natural gas = Noagreementon cost of c
Slide 13: Alaska Electric Light & Power Company (AEL&P)
Alaska Electric Light & Power Company (AEL&P) ee
Slide 14: Expanding and diversifying energy assets
Expanding and diversifying energy assets = Alaska Electric Light and Power (AEL&P) is the primary subsidiary of Alaska Energy and Resources Company (AERC) = AEL&P is the oldest regulated electric utility in Alaska, founded in 1893 = AEL&P serves the City and Borough of Juneau Juneau, Alaska Total Re
Slide 15: Opportunities for driving growth in Alaska
Opportunities for driving growth in Alaska Development Opportunities & Expanding Energy Products & Services = Identify new infrastructure = Assess value for offering energy services in Juneau (AEL&P) o DSM o SmartGrid 15 Seek & Engage = Evaluate opportunities to acquire additional utility customers
Slide 16: SALIX
SALIX Custom LNG Solutions ee
Slide 17: Liquefied Natural Gas (LNG) - platform for growth
Liquefied Natural Gas (LNG) - platform for growth Opportunities for displacing diesel fuel Generation — Diesel Substitution wie Marine Bunkering (fueling) Rail Fueling Plum Energy — Small LNG Project Investments
Slide 18: Financial Update
Financial Update ee
Slide 19: Steady earnings growth
Steady earnings growth Consolidated Diluted Earnings per Share Guidance” $3.00-$3.20 $2.48" $1.85 $1.65 $1.72 | | | 2010 2011 2012 2013 Q2 YTD 2014 “We expect to be near the upper end of the range, including the impacts of the Energy Recovery Mechanism (ERM) * Includes $1.17 from Ecova and $0.09 fro
Slide 20: Attractive and growing dividend
Attractive and growing dividend Dividend growth expected to keep pace with long-termearnings growth $1.27 $1.22 2010 2011 2012 2013 2014* *Current quarterly dividend of §0.3175 annualized 20
Slide 21: Prudent balance sheet and liquidity
Prudent balance sheet and liquidity No significant maturities until 2018 Consolidated Capital Structure (S millions) June 30, 2014 $273 $250 $90 $90 $52 $13.5 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Healthy Credit Rating™ S&P Mood} Additional long-term debt maturities beyand 2024 nat
Slide 22: Summary: Creating a valued investment
Summary: Creating a valued investment Rate base and customer growth Growth opportunities in Alaska a Possible LDC a Selective acquisitions o Othervalue added services Creating other opportunities for growth a Extending accessto natural gas through LNG YEARS OF SERVICE Attractive dividend yield, curr
Slide 23: Jason Lang, Investor Relations Manager
Jason Lang, Investor Relations Manager 509-495-2930