Algonquin Power & Utilities Corp. · TSX:AQN
Algonquin Power & Utilities — Q3 2024 Earnings Presentation
24 slides from Algonquin Power & Utilities's earnings presentation, Nov 7, 2024
Slide 1: Q3 2024 Earnings Conference Call
Q3 2024 Earnings Conference Call November 7, 2024 | 10:00 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.Closing remarks Chris Huskilson Darren Myers Brian Chin Chief Executive Officer Chief Financial Officer Vice President, Investor Relations Algonquin Power & Utilities Corp. | Q3 2024 Earnings Conf
Slide 4: Strategic Update
Q3 2024 Earnings Conference Call Strategic Update 4
Slide 5: Strategic Transition: Accomplishments
Strategic Transition: Accomplishments Q3 Q1 Q2 Q3 Q4 2023 2024 2024 2024 2024 Decision to simplify Began work to Announced Announced Atlantica transaction and focus on core streamline capital support of agreement to sell expected to close regulated utility structure Atlantica sale renewables busines
Slide 6: Elevating the Regulated Business
Elevating the Regulated Business Completed rollout of Customer First SAP system — Key milestone expected to result in a more efficient and focused utility Elevating utility and infrastructure expertise — Appointment of new board members and executive positions Revamping organizational processes and
Slide 7: Next Steps: Recover and Earn Return on Invested Capital
Next Steps: Recover and Earn Return on Invested Capital • Status: Filed September 2024 • Timing: Typically takes ~1.5-2 years to resolve CalPeco • Details: Request to increase rate base by ~$154 million; 52.5% equity ratio and 11% allowed return on equity (“ROE”) California • Requested Revenue Incre
Slide 8: Operational & Financial Results
Q3 2024 Earnings Conference Call Operational & Financial Results 8
Slide 9: 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 New York Water New York $39.7 million $38.6 million Midstates Gas Missouri $13.2 million $9.1 million Empire Electric Arkansas $7.3 million $5.3 million Mi
Slide 10: Financial Performance
Financial Performance Three months ended Nine months ended September 30 September 30 All amounts in U.S. $ millions except per share information 2024 2023 Change 2024 2023 Change Revenue1 $ 573.2 $ 564.8 1% $1,734.7 $1,818.3 (5)% Regulated Services Group Revenue 563.9 555.9 1% 1,705.8 1,790.5 (5)% H
Slide 11: Strengthening the Balance Sheet
Strengthening the Balance Sheet Key debt and credit figures Q3 continuing and discontinued operations GAAP debt $8.7 billion Renewables estimated net sales proceeds $1.7-1.8 billion Atlantica estimated net sales proceeds $1.1 billion S&P and Fitch selected debt adjustments: Less: Equity credit 50% o
Slide 12: Q3 2024 Adjusted Net EPS Drivers
Q3 2024 Adjusted Net EPS1 Drivers Q3 2023 Adjusted Net EPS1 $ 0.10 Regulated Services Group Adjusted EBITDA1 growth 0.01 Depreciation (0.01) Interest expense and other (0.01) Equity unit dilution (0.01) Q3 2024 Adjusted Net EPS1 $ 0.08 1. Please see “Non-GAAP Financial Measures” on page 2 of this pr
Slide 13: Closing Remarks
Q3 2024 Earnings Conference Call Closing Remarks 13
Slide 14: Q&A
Q3 2024 Earnings Conference Call Q&A 14
Slide 15: Appendix
Q3 2024 Earnings Conference Call Appendix 15
Slide 16: Utility by Jurisdiction & Commodity
Utility by Jurisdiction & Commodity RATE BASE & ROE BY MAJOR JURISDICTION AND MODALITY Facility 2022A Rate Base ($mm) 2023A Rate Base ($mm) 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 $498
Slide 17: Rate Base View by Commodity
Rate Base View by Commodity1 4,000 NH 3,600 CA 3,200 Bermuda 2,800 2,400 2,000 NY 1,600 GA MO2 Other (AR, MO, TX, IL) NB 1,200 AZ MO3 CA 800 MA Chile 400 NH NY 0 Electric Gas Water 1. Data as of December 31, 2023. 2. Includes assets in Kansas, Oklahoma and Arkansas. 3. Includes assets in Iowa and Il
Slide 18: Non-GAAP Financial Measures: AQN Adjusted EBITDA
Non-GAAP Financial Measures Reconciliation of AQN 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 AQN Adjusted E
Slide 19: 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 20: Non-GAAP Financial Measures: Regulated Services Group EBITDA
Non-GAAP Financial Measures Reconciliation of Regulated Services Group Adjusted EBITDA to Operating Income 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
Slide 21: Non-GAAP Financial Measures: Regulated Services Group EBITDA (cont'd)
Non-GAAP Financial Measures Reconciliation of Regulated Services Group Adjusted EBITDA to Operating Income (cont’d) 1 See Caution Concerning Non-GAAP Measures. 2 See Note 17 in the unaudited interim condensed consolidated financial statements. 3 This table contains a reconciliation of Net Utility Sa
Slide 22: Non-GAAP Financial Measures: Corporate Group EBITDA
Non-GAAP Financial Measures Reconciliation of Corporate Group Adjusted EBITDA to Operating Income 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 t
Slide 23: Non-GAAP Financial Measures: Hydro Group EBITDA
Non-GAAP Financial Measures Reconciliation of Hydro Group Adjusted EBITDA to Operating Income 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 Hy
Slide 24: 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* 767,150,313 Share Price* $5.45 Market Capitalization* $4.2 B Common Share Dividend** $0.26 per share annually * Shares outstanding, clo
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