Algonquin Power & Utilities Corp. · TSX:AQN
Algonquin Power & Utilities — Q2 2023 Earnings Presentation
27 slides from Algonquin Power & Utilities's earnings presentation, Aug 10, 2023
Slide 1: Q2 2023 Earnings Conference Call
Q2 2023 Earnings Conference Call August 10, 2023 8:30 a.m. ET
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain written statements included herein and/or oral statements made in connection with the presentation contained herein constitute “forward-looking information” within the meaning of applicable securities laws in each of the provinces and territories of Canada and the
Slide 3: Speakers and Agenda
Speakers and Agenda Chris Huskilson Darren Myers Brian Chin Interim Chief Executive Officer Chief Financial Officer Vice President, Investor Relations Introductory Remarks Brian Chin Renewables Strategic Review & Leadership Transition Chris Huskilson Q2 2023 Business & Financial Update Darren Myers
Slide 4: Renewables Strategic Review
Q2 2023 Earnings Conference Call Renewables Strategic Review
Slide 5: Renewables Strategic Review Outcome
Renewables Strategic Review Outcome Strategic Review Decision Rationale for Renewables Sale Next Strategic Steps • Will pursue sale of Renewable • Two strong businesses, both poised • JPM to act as financial advisor for Energy Group in an effort to unlock to benefit from energy transition sale proce
Slide 6: Regulated Business Uniquely Positioned for Organic Growth
Regulated Business Uniquely Positioned for Organic Growth ORGANIC GROWTH DIVERSIFIED PORTFOLIO SCALE OPPORTUNITY Portfolio reduces risk and provides Opportunities across our portfolio to US-focused, regulated utility business opportunity through geographic, modernize our infrastructure, improve with
Slide 7: Algonquin's Regulated Business
Algonquin’s Regulated Business ~$1 B 4-7% Projected average annual Projected Adjusted Net EPS capital expenditures growth rate framework1 CUSTOMER FOCUSED INVESTMENT OPERATIONAL EXCELLENCE REGULATORY EXECUTION Steady, diverse organic rate base Control costs, improve customer Drive performance, capit
Slide 8: Renewable Business Remains Poised for Coming Energy Transition
Renewable Business Remains Poised for Coming Energy Transition 1 ▪ Attractive returns and strong cash flow from renewable and 46 clean energy generation sourced from water, wind, and solar renewable energy facilities2 ▪ Operating in 11 states, 6 provinces and 7 ISOs ~2.7 GW ▪ ~81% of generation unde
Slide 9: Business Update
Q2 2023 Earnings Conference Call Business Update
Slide 10: Financial Update - Weather Impacts for Q2 2023
Financial Update - Weather Impacts for Q2 2023 • Renewable Energy Group wind facilities generated 75.1% of long-term average resource • Regulated Services Group saw weather-driven reduced customer demand Unfavorable weather impacted both Renewable Energy and Regulated Services Groups Algonquin Power
Slide 11: Regulated Services Group – Rate Cases
Regulated Services Group – Rate Cases • Capital investments made to enhance the safety and reliability of service to customers • Rate Cases reflect AQN’s request for a chance to earn a reasonable return of and on capital investments Completed Rate Proceedings Utility Jurisdiction Rate Request Author
Slide 12: Renewable Energy Group - Growth
Renewable Energy Group - Growth Anticipated Site Panels Status Towards Solar Projects Project Size Preparation Installed Commissioning of Facility3 Community Solar1 13 MW 100% 100% New Market Solar – Phase 1 35 MW 100% 100% New Market Solar – Phase 2 65 MW 100% 75% Chevron – Hayhurst, TX2 25 MW 100%
Slide 13: Financial Update
Q2 2023 Earnings Conference Call Financial Update
Slide 14: Financial Performance
Financial Performance Three Months Ended Six Months Ended June 30 June 30 All figures are in $ millions except per share data 2023 2022 2023 2022 Revenue 627.9 619.4 1,406.5 1,352.6 Net earnings attributable to shareholders (253.2) (33.4) 16.9 57.6 Per share (0.37) (0.05) 0.02 0.08 Cash provided by
Slide 15: _ Algonquin
_ Algonquin
Slide 16: Appendix
Q2 2023 Earnings Conference Call Appendix
Slide 17: Second Quarter Drivers
Second Quarter Drivers 2022 Q2 Adjusted Net Earnings per Common Share1 $ 0.16 Regulated growth $ 0.02 Unfavorable weather $ (0.03) HLBV 2012 Vintage Roll-off $ (0.02) Higher interest expense $ (0.03) Other $ (0.01) Minority interest (ex interest exp savings) $ (0.01) 2023 Q2 Adjusted Net Earnings pe
Slide 18: Utility by Jurisdiction & Modality
Utility by Jurisdiction & Modality Rate Base & Return on Equity (“ROE”) by Major Jurisdiction and Modality Jurisdiction 2021A Rate Base ($mm) 2022A Rate Base ($mm) Current Authorized ROE Empire Electric $2,718 $2,852 9.3%1 California Electric and Water $554 $616 9.8% New York Water NA $490 9.1% New
Slide 19: NH CA Bermuda
4,000 NH 3,600 CA 3,200 Bermuda 2,800 2,400 2,000 1,600 Other (IL, NY, IA) MO1 Other (AR, MO, TX, IL) MO 1,200 AZ GA 800 CA NB Chile 400 MA NH NY 0 Electric Gas Water 1. Includes some assets in Kansas, Oklahoma and Arkansas
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures Reconciliation of Adjusted EBITDA to Net Earnings The following table is derived from and should be read in conjunction with the consolidated statement of operations. This supplementary disclosure is intended to more fully explain disclosures related to Adjusted EBITDA an
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures Reconciliation of Adjusted Net Earnings to Net Earnings The following table is derived from and should be read in conjunction with the consolidated statement of operations. This supplementary disclosure is intended to more fully explain disclosures related to Adjusted Net
Slide 22: Non-GAAP Financial Measures
Non-GAAP Financial Measures Reconciliation of Adjusted Funds from Operations to Cash Provided by Operating Activities The following table is derived from and should be read in conjunction with the consolidated statement of operations and consolidated statement of cash flows. This supplementary discl
Slide 23: Non-GAAP Financial Measures
Non-GAAP Financial Measures Reconciliation of Net Utility Sales and Regulated Services Group Divisional Operating Profit to Revenue The relevant sections of the table are derived from and should be read in conjunction with the unaudited consolidated statement of operations. This supplementary disclo
Slide 24: Non-GAAP Financial Measures
Non-GAAP Financial Measures Reconciliation of Net Utility Sales and Regulated Services Group Divisional Operating Profit to Revenue 1 See Note 18 in the unaudited interim consolidated financial statements. 2 HLBV income represents the value of net tax attributes monetized by the Regulated Services G
Slide 25: Non-GAAP Financial Measures
Non-GAAP Financial Measures Reconciliation of Net Energy Sales and Renewable Energy Group Divisional Operating Profit to Revenue The relevant sections of the table are derived from and should be read in conjunction with the unaudited consolidated statement of operations. This supplementary disclosur
Slide 26: Non-GAAP Financial Measures
Non-GAAP Financial Measures Reconciliation of Net Energy Sales and Renewable Energy Group Divisional Operating Profit to Revenue 1 Many of the Renewable Energy Group’s power purchase agreements include annual rate increases. However, a change to the weighted average production levels resulting from
Slide 27: Corporate Information / Contact Information
Corporate Information Head Office Greater Toronto Area, Ontario Toronto Stock Exchange AQN, AQN.PR.A, AQN.PR.D New York Stock Exchange AQN, AQNA, AQNB, AQNU Shares Outstanding* 688,804,269 Share Price* $8.26 Market Capitalization* $5.7 B Dividend** $0.4340 per share annually * Shares outstanding, cl
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