Algonquin Power & Utilities Corp. · TSX:AQN
Algonquin Power & Utilities — Q3 2023 Earnings Presentation
24 slides from Algonquin Power & Utilities's earnings presentation, Nov 10, 2023
Slide 1: Q3 2023 Earnings Conference Call
Q3 2023 Earnings Conference Call November 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 Business Update Chris Huskilson Q3 2023 Performance and Financial Results Darren Myers Algonquin Power & Utilities Co
Slide 4: Business Update
Q3 2023 Earnings Conference Call Business Update
Slide 5: Q3 2023 Business Update
Q3 2023 Business Update Renewables Sale Process Process launched in Q4 2023 Inbound interest from prospective buyers Process aims to support BBB investment-grade credit rating and current dividend Simpler business model expected to drive long-term value; optimize capital structure Update on CEO Sear
Slide 6: Department of Energy Infrastructure Awards
Department of Energy Infrastructure Awards • On October 18, the Department of Energy (DOE) preliminarily awarded the Company with two IIJA resiliency grants in its regulated business; expected to accelerate grid modernization investments while reducing impact on customer affordability • Distribution
Slide 7: Regulated Services Group – Rate Cases
Regulated Services Group – Rate Cases Select Completed Rate Proceedings Utility Jurisdiction Rate Request Authorized Increase St. Lawrence Gas New York $4.1 million $5.2 million1 Pine Bluff Water Arkansas $5.9 million $3.4 million Pending Rate Reviews Utility Jurisdiction Rate Request Rate Case Deta
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 Facility3 Carvers Creek 150 MW 20% 0% Chevron – Hayhurst, TX1 25 MW 100% 100% Chevron – Hayhurst, NM1 20 MW 100% 100% Clearview 144 MW 40% 0% Communi
Slide 9: Financial Update
Q3 2023 Earnings Conference Call Financial Update
Slide 10: Financial Performance
Financial Performance Three Months Ended Nine Months Ended September 30 September 30 All figures are in $ millions except per share data 2023 2022 2023 2022 Revenue 624.7 664.4 2,031.2 2,017.1 Net earnings attributable to shareholders (174.5) (195.2) (157.6) (137.6) Per share (0.26) (0.29) (0.24) (0
Slide 11: Forward Outlook
Forward Outlook YTD results challenged by unfavourable weather 2023 Adjusted Net EPS 1 expected to be at or below lower end of 2023 guidance 2 Remain focused on renewables sales process Upcoming Investor Events EEI Financial Conference – November 12-14, 2023 Wells Fargo Midstream & Utilities Symposi
Slide 12: _ Algonquin
_ Algonquin
Slide 13: Appendix
Q3 2023 Earnings Conference Call Appendix
Slide 14: Third Quarter Adjusted Net EPS Drivers
Third Quarter Adjusted Net EPS Drivers 1 Prior Year Q3 Adjusted Net EPS $0.11 Regulated growth $0.01 Renewable growth $0.02 Weather $(0.02) Admin & corporate expenses $(0.01) Interest expense $(0.03) Taxes – New Market Solar $0.01 Taxes – ex-New Market Solar $0.02 Current Year Q3 Adjusted Net EPS $0
Slide 15: Utility by Jurisdiction & Modality
Utility by Jurisdiction & Modality Rate Base & Return on Equity (“ROE”) by Major Jurisdiction and Modality Facility 2021A Rate Base ($mm) 2022A Rate Base ($mm)1 Latest Authorized ROE Empire Electric $2,718 $2,852 9.3%1 California Electric and Water $554 $616 9.8% New York Water N/A $490 9.1% New Ham
Slide 16: Rate Base View by Modality
Rate Base View by Modality 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. Data as of December 31, 2022. Algonquin Power &
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 – Adjusted Funds from Operations
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 20: 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 unaudited consolidated statement of operations. This supplementary disclo
Slide 21: 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. 2 See Note 18 in the unaudited interim consolidated financial statements. 3 This table contains a reconciliation of
Slide 22: 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 unaudited consolidated statement of operations. This supplementary disclosur
Slide 23: 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 24: 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, AQNB, AQNU Shares Outstanding* 688,997,218 Share Price* $5.92 Market Capitalization* $4.1 B Dividend** $0.4340 per share annually * Shares outstanding, closing
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