Algonquin Power & Utilities Corp. Announces 2022 Second Quarter Financial Results

Algonquin Power & Utilities Corp. announced financial results for the second quarter ended June 30, 2022. All amounts are shown in United States dollars (“U.S. $” or “$”), unless otherwise noted.

“We are pleased to report solid second quarter results and continued growth across our regulated and renewables businesses,” said Arun Banskota, President and Chief Executive Officer of AQN. “We remain committed to the execution of our capital plan, which we believe supports growth in earnings and cash flows and delivery of long-term value to our shareholders.”

Q2 2022 Financial Highlights

• Revenue of $624.3 million, an increase of 18% compared to the second quarter of 2021
• Adjusted EBITDA¹ of $289.3 million, an increase of 18% compared to the second quarter of 2021;
• Adjusted Net Earnings¹ of $109.7 million, an increase of 19.6% compared to the second quarter of 2021; and
• Adjusted Net Earnings¹ per share of $0.16, an increase of 7% compared to the second quarter of 2021.

Corporate Highlights

• Pending Acquisition of Kentucky Power Company and AEP Kentucky Transmission Company, Inc. – On May 4, 2022, the Kentucky Public Service Commission (“KPSC”) issued an order, including an approval of the pending acquisition of Kentucky Power Company and AEP Kentucky Transmission Company, Inc. (the “Kentucky Power Transaction”) by Liberty Utilities Co. (“Liberty Utilities”), an indirect, wholly-owned subsidiary of AQN, subject to certain conditions set forth in the order, including those agreed to by Liberty Utilities in the course of the docket. On May 3, 2022, the KPSC issued an order that required certain changes to the proposed operating and ownership agreements (collectively, the “Mitchell Agreements”) relating to the Mitchell coal generating facility (in which Kentucky Power owns a 50% interest, representing 780 MW). On July 1, 2022, the Public Service Commission of West Virginia (“WVPSC”) issued an order on the Mitchell Agreements that is inconsistent with the KPSC’s order on the Mitchell Agreements. The closing of the Kentucky Power Transaction is subject to the satisfaction of certain conditions precedent, which include those relating to the approval of the Mitchell Agreements by the KPSC, WVPSC and U.S. Federal Energy Regulatory Commission. Liberty Utilities and AEP are in discussions to reach a resolution regarding the conditions precedent in respect of the Mitchell Agreements (the “Mitchell Agreements Condition”), which if successful, could allow the Kentucky Power Transaction to close in the second half of 2022.
• Completion of the Blue Hill Wind Facility – On April 14, 2022, the Renewable Energy Group achieved commercial operations (“COD”) at its 175 MW Blue Hill Wind Facility, located in southwest Saskatchewan. The energy generated from the facility is being sold through a long-term power purchase agreement with SaskPower. Bringing low-cost renewable generation capacity to communities is one of the ways the Company is delivering on its commitment to sustainability.
• Completion of Sandhill Renewable Natural Gas Acquisition – On August 5, 2022, the Renewable Energy Group completed its acquisition of Sandhill Advanced Biofuels, LLC (“Sandhill”). Sandhill is a developer of renewable natural gas (“RNG”) anaerobic digestion projects located on dairy farms with a portfolio of four projects in the state of Wisconsin. Two of the projects recently achieved COD, while the other two projects are in late-stage development. Once fully constructed, the portfolio is expected to produce RNG at a rate of approximately 500 million British thermal units (“MMBTUs”) per day. The acquisition represents the Company’s first investment in the non-regulated RNG space.
• Moody’s assigns Baa2 rating – On August 5, 2022, Moody’s Investors Service (“Moody’s”) assigned an inaugural Baa2 long term issuer rating to Liberty Utilities with a stable outlook. Liberty Utilities is also rated by S&P Global Ratings and Fitch Ratings.

Additional information regarding AQN is available on its web site at www.AlgonquinPowerandUtilities.com and in its corporate filings on SEDAR at www.sedar.com (for Canadian filings) and EDGAR at www.sec.gov/edgar (for U.S. filings).

Earnings Conference Call

AQN will hold an earnings conference call at 10:00 a.m. eastern time on Friday, August 12, 2022 hosted by President and Chief Executive Officer, Arun Banskota and Chief Financial Officer, Arthur Kacprzak.

About Algonquin Power & Utilities Corp. and Liberty

Algonquin Power & Utilities Corp., parent company of Liberty, is a diversified international generation, transmission, and distribution utility with over $17 billion of total assets. Through its two business groups, the Regulated Services Group and the Renewable Energy Group, AQN is committed to providing safe, secure, reliable, cost-effective, and sustainable energy and water solutions through its portfolio of electric generation, transmission, and distribution utility investments to over one million customer connections, largely in the United States and Canada.  AQN is a global leader in renewable energy through its portfolio of long-term contracted wind, solar, and hydroelectric generating facilities. AQN owns, operates, and/or has net interests in over 4 GW of installed renewable energy capacity.

AQN is committed to delivering growth and the pursuit of operational excellence in a sustainable manner through an expanding global pipeline of renewable energy and electric transmission development projects, organic growth within its rate-regulated generation, distribution, and transmission businesses, and the pursuit of accretive acquisitions and value enhancing recycling of assets.

AQN’s common shares, preferred shares, Series A, and preferred shares, Series D are listed on the Toronto Stock Exchange under the symbols AQN, AQN.PR.A, and AQN.PR.D, respectively. AQN’s common shares, Series 2018-A subordinated notes, Series 2019-A subordinated notes and equity units are listed on the New York Stock Exchange under the symbols AQN, AQNA, AQNB, and AQNU, respectively.

Visit AQN at www.algonquinpowerandutilities.com 

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