Algonquin Power & Utilities Corp. · TSX:AQN
Algonquin Power & Utilities — Q2 2024 Earnings Presentation
23 slides from Algonquin Power & Utilities's earnings presentation, Aug 9, 2024
Slide 1: Q2 2024 Earnings Conference Call
Q2 2024 Earnings Conference Call August 9, 2024 | 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: Today's Agenda and Speakers
Agenda Today’s 1.Introductory remarks Speakers 2.Strategic update 3.Operational and financial results 4.Outlook and closing remarks Chris Huskilson Darren Myers Brian Chin Chief Executive Officer Chief Financial Officer Vice President, Investor Relations Algonquin Power & Utilities Corp. | Q2 2024 E
Slide 4: Strategic Update
Q2 2024 Earnings Conference Call Strategic Update 4
Slide 5: Three Primary Goals
Three Primary Goals 1. Sell renewable energy business ✓ 2. Optimize value of investment in Atlantica ✓ 3. Establish regulated business as a standalone – Making Progress Algonquin Power & Utilities Corp. | Q2 2024 Earnings Conference Call 5
Slide 6: Financial Self Sufficiency
Financial Self Sufficiency • Steps to unlock long term value for shareholders equals capital light trajectory to improved returns Reduce capital expenditures while improving returns on those investments Right size dividend to preserve financial self sufficiency and avoid chasing payout ratio • Over
Slide 7: Operational & Financial Results
Q2 2024 Earnings Conference Call Operational & Financial Results 7
Slide 8: Regulated Services Group – Rate Cases
Regulated Services Group – Rate Cases1 Utility Jurisdiction Rate Request Authorized Increase Completed BELCO Bermuda $59.1 million $33.6 million BELCO Bermuda $34.8 million $22.8 million Empire Electric Arkansas $7.3 million $5.3 million Return on Equity (“ROE”) Utility Jurisdiction Rate Request and
Slide 9: Financial Performance
Financial Performance Three months ended Six months ended All amounts in U.S. $ millions except per share information June 30 June 30 2024 2023 Change 2024 2023 Change Revenue 598.6 627.9 (5)% 1,335.7 1,406.5 (5)% Regulated Services Group Revenue 505.2 546.4 (8)% 1,141.8 1,234.6 (8)% Renewable Energ
Slide 10: Q2 2024 Adjusted Net EPS Drivers
Q2 2024 Adjusted Net EPS1 Drivers Q2 2023 Adjusted Net EPS1 $ 0.08 Weather (2023) 0.03 Regulated Divisional Operating Profit1 growth 0.02 Retroactive rate increase (2023) (0.02) Renewable Divisional Operating Profit1 growth 0.02 Renewable development cost (0.01) Depreciation (0.02) Interest expense
Slide 11: Outlook & Closing Remarks
Q2 2024 Earnings Conference Call Outlook & Closing Remarks 11
Slide 12: Summary Investment Thesis
Summary Investment Thesis Key objectives are: 1 Strong balance sheet 2 Healthy dividend payout ratio of 60-70% 3 Capital-light path towards earnings growth 4 Focused company with a singular business model Algonquin Power & Utilities Corp. | Q2 2024 Earnings Conference Call
Slide 13: Q&A
Q2 2024 Earnings Conference Call Q&A 13
Slide 14: Appendix
Q2 2024 Earnings Conference Call Appendix 14
Slide 15: Utility by Jurisdiction & Modality
Utility by Jurisdiction & Modality RATE BASE & ROE BY MAJOR JURISDICTION AND MODALITY Facility 2022A Rate Base ($mm)1 2023A Rate Base ($mm)1 Latest Authorized ROE Empire Electric $2,852 $2,958 9.3%1 California Electric and Water $616 $756 9.7% New York Water $490 $491 9.1% New Hampshire Gas $490 $49
Slide 16: Rate Base View by Modality
Rate Base View by Modality1 4,000 NH 3,600 CA 3,200 Bermuda 2,800 2,400 NY 2,000 GA 1,600 NB MO1 Other (AR, MO, TX, IL) MO2 1,200 AZ MA CA 800 Chile 400 NH NY 0 Electric Gas Water 1. Includes some assets in Kansas, Oklahoma and Arkansas. Data as of December 31, 2023. 2. Includes some assets in Iowa
Slide 17: Non-GAAP Financial Measures: Adjusted EBITDA
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 18: Non-GAAP Financial Measures: Adjusted Net Earnings
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 19: Non-GAAP Financial Measures: Net Utility Sales
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 consolidated statement of operations. This supplementary disclosure is in
Slide 20: Non-GAAP Financial Measures: Net Utility Sales (cont'd)
Non-GAAP Financial Measures Reconciliation of Net Utility Sales and Regulated Services Group Divisional Operating Profit to Revenue (cont’d) 1 See Caution Concerning Non-GAAP Measures in the Interim MD&A. 2 See Note 18 in the unaudited interim condensed consolidated financial statements. 3 This tabl
Slide 21: Non-GAAP Financial Measures: Net Energy Sales
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 consolidated statement of operations. This supplementary disclosure is inten
Slide 22: Non-GAAP Financial Measures: Net Energy Sales (cont'd)
Non-GAAP Financial Measures Reconciliation of Net Energy Sales and Renewable Energy Group Divisional Operating Profit to Revenue (cont’d) 1 Many of the Renewable Energy Group's power purchase agreements ("PPAs") include annual rate increases. However, a change to the weighted average production leve
Slide 23: Corporate Information and 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, AQNB Shares Outstanding* 766,930,261 Share Price* $5.86 Market Capitalization* $4.5 B Common Share Dividend** $0.26 per share annually * Shares outstanding, clo
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