Algonquin Power & Utilities Corp. · TSX:AQN
Algonquin Power & Utilities — Q4 2023 Earnings Presentation
29 slides from Algonquin Power & Utilities's earnings presentation, Mar 8, 2024
Slide 1: Q4 2023 Earnings Conference Call
Q4 2023 Earnings Conference Call March 8, 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: 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 Business Update and Key Highlights Chris Huskilson Q4 and Full Year 2023 Financial Results Darren Myers Algonquin Pow
Slide 4: Business Update
Q4 2023 Earnings Conference Call Business Update
Slide 5: 2023 Key Highlights
2023 Key Highlights • Focuses for 2023: • Year of growth for both business groups, despite headwinds Algonquin Power & Utilities Corp. | Q4 2023 Earnings Conference Call
Slide 6: Regulated Services Group – Highlights and Update
Regulated Services Group – Highlights and Update • 2023 Regulated Financial Results: Future Opportunities: • Objective to earn our cost of capital For the year ended December 31 ($ M) • Improving performance and maximizing 2,330.0 2,315.8 954.1 operational efficiency 863.6 558.5 1,944.2 2021 2022 20
Slide 7: Regulated Services Group – Rate Cases
Regulated Services Group – Rate Cases Pending Rate Reviews Utility Jurisdiction Rate Request Rate Case Details New York Water New York $39.7 million ROE 10% / equity ratio 50% EnergyNorth Gas New Hampshire $27.5 million ROE 10.35% / equity ratio 55% Granite State Electric New Hampshire $15.5 million
Slide 8: Renewable Energy Group – Construction Update
Renewable Energy Group – Construction Update Anticipated Site Panels Status Towards Solar Projects Project Size Preparation Installed Commissioning of Facility4 Carvers Creek 150 MW 35% 2% Chevron – Hayhurst, TX1 25 MW 100% 100% Chevron – Hayhurst, NM1 20 MW 100% 100% Clearview 144 MW 100% 2% Commun
Slide 9: Strategic Update
Strategic Update • Renewables Sale Process Priorities for 2024 Process launched with potential buyers in Q4 2023 Pleased with inbound interest from prospective buyers Targeting sales announcement in mid-2024 and closing later Grow our people and their Complete the sale of this year capabilities to s
Slide 10: Financial Update
Q4 2023 Earnings Conference Call Financial Update
Slide 11: Financial Performance
Financial Performance Three months ended Twelve months ended All amounts in U.S. $ millions except per share information December 31 December 31 2023 2022 Change 2023 2022 Change Revenue 666.9 748.0 (11)% 2,698.0 2,765.0 (2)% Regulated Services Group Revenue 564.9 636.6 (11)% 2,366.9 2,384.3 (7)% Re
Slide 12: Strategic Transaction Objectives
Strategic Transaction Objectives Maintain BBB investment- Support common share Generate long-term grade credit rating dividend shareholder value Algonquin Power & Utilities Corp. | Q4 2023 Earnings Conference Call
Slide 13: Algonquin
_ Algonquin
Slide 14: Appendix
Q4 2023 Earnings Conference Call Appendix
Slide 15: Full Year 2023 Adjusted Net EPS Drivers
Full Year 2023 Adjusted Net EPS1 Drivers 2022 Adjusted Net EPS1 $0.61 Regulated Divisional Operating Profit1 growth ex-weather $0.15 Regulated weather $(0.02) Renewable Divisional Operating Profit1 growth ex-weather $(0.04) Renewable weather $(0.03) Depreciation $(0.02) Interest expense $(0.11) Tax
Slide 16: Segmented Financial Results
Segmented Financial Results 1 Regulated Services Group Renewable Energy Group Corporate Consolidated (all dollar amounts in $ millions) 2023 2022 Change 2023 2022 Change 2023 2022 Change 2023 2022 Change Revenue $ 2,315.7 $ 2,330.0 $ (14.3) $ 296.3 $ 350.8 $ (54.5) $ — $ — $ — $ 2,612.0 $ 2,680.8 $
Slide 17: Debt and Credit Metric Data
Debt and Credit Metric Data 1 Item Notes Notional Amount Green Equity Units2 Mandatory convertibles, 100% equity treatment (S&P only) $ 1,145 Subordinated Bonds2 Hybrids, 50% equity treatment 1,385 LUCO Bonds3 Issued on 1/10/24, proceeds used to pay down short term debt 850 Empire Securitization3 Is
Slide 18: 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 19: 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 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 EBIT 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 EBIT and pr
Slide 23: Non-GAAP Financial Measures
Non-GAAP Financial Measures Non-GAAP Financial Measures (Adjusted earnings before interest and taxes) The term Adjusted earning before interest and taxes (“Adjusted EBIT”) is a non-GAAP financial measure used by many investors to compare companies on the basis of ability to generate cash from operat
Slide 24: 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 25: 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 26: Non-GAAP Financial Measures
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. 2 See Note 21 in the annual consolidated financial statements. 3 This table contains a reconciliation of Net Utilit
Slide 27: 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 28: Non-GAAP Financial Measures
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 29: 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, AQNU Shares Outstanding* 689,271,039 Share Price* $6.32 Market Capitalization* $4.4 B Common Share Dividend** $0.4340 per share annually * Shares outstand
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