エドガーで原本を確認する
| Algonquin Power & Utilities Corp. | ||
| Exhibit | Description | ||||
| Unaudited Financial Statements for the quarter ended June 30, 2024 | |||||
| Management's Discussion & Analysis for quarter ended June 30, 2024 | |||||
| Certification of Chief Executive Officer | |||||
| Certification of Chief Financial Officer | |||||
| Earnings Press Release for the quarter ended June 30, 2024 | |||||
| Q3 2024 Common Share & Preferred Share Dividend Press Release | |||||
| ALGONQUIN POWER & UTILITIES CORP. | |||||
| (registrant) | |||||
| Date: August 9, 2024 | By: /s/ Darren Myers |
||||
| Name: Darren Myers | |||||
| Title: Chief Financial Officer | |||||
| Three months ended | Six months ended | ||||||||||||||||||||||
| (thousands of U.S. dollars, except per share amounts) | June 30 | June 30 | |||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Revenue | |||||||||||||||||||||||
| Regulated electricity distribution | $ | 304,262 | $ | 328,242 | $ | 610,117 | $ | 644,215 | |||||||||||||||
| Regulated natural gas distribution | 94,264 | 109,539 | 328,217 | 380,677 | |||||||||||||||||||
| Regulated water reclamation and distribution | 92,786 | 95,861 | 177,809 | 183,282 | |||||||||||||||||||
| Non-regulated energy sales | 78,661 | 71,694 | 163,237 | 150,410 | |||||||||||||||||||
| Other revenue | 28,653 | 22,535 | 56,346 | 47,914 | |||||||||||||||||||
| 598,626 | 627,871 | 1,335,726 | 1,406,498 | ||||||||||||||||||||
| Expenses | |||||||||||||||||||||||
| Operating expenses | 265,868 | 267,174 | 527,653 | 505,294 | |||||||||||||||||||
| Regulated electricity purchased | 81,747 | 98,337 | 179,701 | 223,917 | |||||||||||||||||||
| Regulated natural gas purchased | 22,909 | 36,180 | 118,878 | 173,881 | |||||||||||||||||||
| Regulated water purchased | 4,279 | 3,857 | 8,160 | 7,726 | |||||||||||||||||||
| Non-regulated energy purchased | 690 | 3,782 | 4,228 | 11,588 | |||||||||||||||||||
| Depreciation and amortization | 136,912 | 118,448 | 266,452 | 240,089 | |||||||||||||||||||
| Loss on foreign exchange | 4,284 | 6,379 | 16,141 | 7,815 | |||||||||||||||||||
| 516,689 | 534,157 | 1,121,213 | 1,170,310 | ||||||||||||||||||||
| Operating income | 81,937 | 93,714 | 214,513 | 236,188 | |||||||||||||||||||
Interest expense (note 7) |
(105,787) | (89,663) | (208,311) | (171,581) | |||||||||||||||||||
Income (loss) from long-term investments (note 6) |
192,611 | (286,546) | 38,158 | (75,585) | |||||||||||||||||||
Other income (note 5) |
6,030 | 8,850 | 12,729 | 17,901 | |||||||||||||||||||
Other net losses (note 16) |
(17,061) | (40,367) | (27,662) | (43,829) | |||||||||||||||||||
Pension and other post-employment non-service costs (note 8) |
(3,975) | (5,306) | (7,413) | (10,267) | |||||||||||||||||||
Gain on derivative financial instruments (note 21(b)(iv)) |
58 | 1,039 | 191 | 3,205 | |||||||||||||||||||
Earnings (loss) before income taxes |
153,813 | (318,279) | 22,205 | (43,968) | |||||||||||||||||||
Income tax recovery (expense) (note 15) |
|||||||||||||||||||||||
| Current | 46,681 | (6,300) | 41,577 | (12,800) | |||||||||||||||||||
| Deferred | (41,453) | 62,258 | (25,046) | 44,057 | |||||||||||||||||||
| 5,228 | 55,958 | 16,531 | 31,257 | ||||||||||||||||||||
| Net earnings (loss) | 159,041 | (262,321) | 38,736 | (12,711) | |||||||||||||||||||
Net effect of non-controlling interests (note 14) |
|||||||||||||||||||||||
| Non-controlling interests | 41,725 | 15,439 | 72,884 | 42,018 | |||||||||||||||||||
| Non-controlling interests held by related party | — | (6,349) | — | (12,399) | |||||||||||||||||||
| $ | 41,725 | $ | 9,090 | $ | 72,884 | $ | 29,619 | ||||||||||||||||
| Net earnings (loss) attributable to shareholders of Algonquin Power & Utilities Corp. | $ | 200,766 | $ | (253,231) | $ | 111,620 | $ | 16,908 | |||||||||||||||
Series A Shares and Series D Shares dividend (note 12) |
2,705 | 2,080 | 5,117 | 4,172 | |||||||||||||||||||
| Net earnings (loss) attributable to common shareholders of Algonquin Power & Utilities Corp. | $ | 198,061 | $ | (255,311) | $ | 106,503 | $ | 12,736 | |||||||||||||||
Basic and diluted net earnings (loss) per share (note 17) |
$ | 0.28 | $ | (0.37) | $ | 0.15 | $ | 0.02 | |||||||||||||||
| Three months ended | Six months ended | ||||||||||||||||||||||
| (thousands of U.S. dollars) | June 30 | June 30 | |||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Net earnings (loss) | $ | 159,041 | $ | (262,321) | $ | 38,736 | $ | (12,711) | |||||||||||||||
| Other comprehensive income (loss) ("OCI"): | |||||||||||||||||||||||
Foreign currency translation adjustment, net of tax expense of $1,310 and $3,190 (2023 - tax recovery $3,418 and $3,038), respectively (notes 21(b)(iii) and 21(b)(iv)) |
10,933 | 130 | 4,416 | 15,555 | |||||||||||||||||||
Change in fair value of cash flow hedges, net of tax expense of $2,165 and $6,995 (2023 - tax expense of $3,737 and recovery of $178), respectively (note 21(b)(ii)) |
29,190 | 36,421 | 38,652 | 54,286 | |||||||||||||||||||
Change in pension and other post-employment benefits, net of tax recovery of $394 and $1,768 (2023 - tax recovery of $281 and $445), respectively |
(1,143) | (823) | (5,174) | (1,303) | |||||||||||||||||||
| OCI, net of tax | 38,980 | 35,728 | 37,894 | 68,538 | |||||||||||||||||||
| Comprehensive income (loss) | 198,021 | (226,593) | 76,630 | 55,827 | |||||||||||||||||||
| Comprehensive loss attributable to the non-controlling interests | (42,049) | (8,693) | (73,906) | (29,407) | |||||||||||||||||||
| Comprehensive income (loss) attributable to shareholders of Algonquin Power & Utilities Corp. | $ | 240,070 | $ | (217,900) | $ | 150,536 | $ | 85,234 | |||||||||||||||
| (thousands of U.S. dollars) | June 30, | December 31, | |||||||||
| 2024 | 2023 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 131,633 | $ | 56,142 | |||||||
Trade and other receivables, net (note 4) |
426,879 | 524,194 | |||||||||
| Fuel and natural gas in storage | 49,696 | 48,982 | |||||||||
| Supplies and consumables inventory | 185,637 | 178,150 | |||||||||
Regulatory assets (note 5) |
185,938 | 142,970 | |||||||||
| Prepaid expenses | 67,703 | 81,926 | |||||||||
Derivative instruments (note 21) |
28,016 | 10,920 | |||||||||
Other assets |
129,134 | 23,061 | |||||||||
| 1,204,636 | 1,066,345 | ||||||||||
Property, plant and equipment, net |
13,199,200 | 12,517,450 | |||||||||
Intangible assets, net |
90,405 | 93,938 | |||||||||
Goodwill |
1,317,440 | 1,324,062 | |||||||||
Regulatory assets (note 5) |
1,124,523 | 1,184,713 | |||||||||
Long-term investments (note 6) |
|||||||||||
| Investments carried at fair value | 1,128,171 | 1,115,729 | |||||||||
| Other long-term investments | 411,985 | 641,920 | |||||||||
Derivative instruments (note 21) |
88,817 | 72,328 | |||||||||
Deferred income taxes |
161,279 | 158,483 | |||||||||
Other assets |
139,918 | 198,993 | |||||||||
| $ | 18,866,374 | $ | 18,373,961 | ||||||||
| (thousands of U.S. dollars) | June 30, | December 31, | |||||||||
| 2024 | 2023 | ||||||||||
| LIABILITIES AND EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 138,154 | $ | 210,412 | |||||||
| Accrued liabilities | 552,164 | 554,875 | |||||||||
Dividends payable (note 12) |
83,267 | 74,916 | |||||||||
Regulatory liabilities (note 5) |
88,449 | 99,850 | |||||||||
Long-term debt (note 7) |
158,278 | 621,856 | |||||||||
Other long-term liabilities (note 9) |
185,314 | 80,458 | |||||||||
Derivative instruments (note 21) |
23,413 | 34,915 | |||||||||
| Other liabilities | 12,107 | 7,898 | |||||||||
| 1,241,146 | 1,685,180 | ||||||||||
Long-term debt (note 7) |
8,134,371 | 7,894,174 | |||||||||
Regulatory liabilities (note 5) |
562,715 | 634,446 | |||||||||
Deferred income taxes |
634,053 | 578,902 | |||||||||
Derivative instruments (note 21) |
106,644 | 75,961 | |||||||||
Pension and other post-employment benefits obligation |
99,185 | 96,653 | |||||||||
Other long-term liabilities (note 9) |
392,493 | 465,874 | |||||||||
| 9,929,461 | 9,746,010 | ||||||||||
Redeemable non-controlling interests |
|||||||||||
| Redeemable non-controlling interest, held by related party | — | 308,350 | |||||||||
| Redeemable non-controlling interests | 9,263 | 10,013 | |||||||||
| 9,263 | 318,363 | ||||||||||
| Equity: | |||||||||||
| Preferred shares | 184,299 | 184,299 | |||||||||
Common shares (note 10(a)) |
7,389,116 | 6,229,994 | |||||||||
| Additional paid-in capital | 827 | 7,254 | |||||||||
| Deficit | (1,331,947) | (1,279,696) | |||||||||
Accumulated other comprehensive loss (“AOCI”) (note 11) |
(63,370) | (102,286) | |||||||||
| Total equity attributable to shareholders of Algonquin Power & Utilities Corp. | 6,178,925 | 5,039,565 | |||||||||
Non-controlling interests |
|||||||||||
| Non-controlling interests - tax equity partnership units | 1,156,628 | 1,196,720 | |||||||||
| Other non-controlling interests | 358,670 | 347,338 | |||||||||
| Non-controlling interest, held by related party | (7,719) | 40,785 | |||||||||
| 1,507,579 | 1,584,843 | ||||||||||
| Total equity | 7,686,504 | 6,624,408 | |||||||||
Commitments and contingencies (note 19) |
|||||||||||
Subsequent events (note 3(a), 7(f)) |
|||||||||||
| $ | 18,866,374 | $ | 18,373,961 | ||||||||
|
(thousands of U.S. dollars)
For the three months ended June 30, 2024
|
|||||||||||||||||||||||||||||||||||||||||
| Algonquin Power & Utilities Corp. Shareholders | |||||||||||||||||||||||||||||||||||||||||
| Common shares |
Preferred shares |
Additional paid-in capital |
Deficit | AOCI | Non- controlling interests |
Total | |||||||||||||||||||||||||||||||||||
| Balance, March 31, 2024 | $ | 6,235,552 | $ | 184,299 | $ | (384) | $ | (1,446,333) | $ | (104,452) | $ | 1,566,120 | $ | 6,434,802 | |||||||||||||||||||||||||||
Net earnings (loss) |
— | — | — | 200,766 | — | (41,725) | 159,041 | ||||||||||||||||||||||||||||||||||
Effect of redeemable non-controlling interests not included in equity (note 14) |
— | — | — | — | — | 331 | 331 | ||||||||||||||||||||||||||||||||||
| OCI | — | — | — | — | 41,082 | (2,102) | 38,980 | ||||||||||||||||||||||||||||||||||
| Dividends declared and distributions to non-controlling interests | — | — | — | (86,445) | — | (17,359) | (103,804) | ||||||||||||||||||||||||||||||||||
Contributions received from non-controlling interests, net of cost |
— | — | — | — | — | 2,314 | 2,314 | ||||||||||||||||||||||||||||||||||
Common shares issued upon public offering (note 10(a)) |
1,150,000 | — | — | — | — | — | 1,150,000 | ||||||||||||||||||||||||||||||||||
| Common shares issued under employee share purchase plan | 1,038 | — | — | — | — | — | 1,038 | ||||||||||||||||||||||||||||||||||
| Share-based compensation | — | — | 1,211 | — | — | — | 1,211 | ||||||||||||||||||||||||||||||||||
| Common shares issued pursuant to share-based awards | 2,526 | — | — | 65 | — | — | 2,591 | ||||||||||||||||||||||||||||||||||
| Balance, June 30, 2024 | $ | 7,389,116 | $ | 184,299 | $ | 827 | $ | (1,331,947) | $ | (63,370) | $ | 1,507,579 | $ | 7,686,504 | |||||||||||||||||||||||||||
|
(thousands of U.S. dollars)
For the three months ended June 30, 2023
|
|||||||||||||||||||||||||||||||||||||||||
| Algonquin Power & Utilities Corp. Shareholders | |||||||||||||||||||||||||||||||||||||||||
| Common shares |
Preferred shares |
Additional paid-in capital |
Deficit | AOCI | Non- controlling interests |
Total | |||||||||||||||||||||||||||||||||||
| Balance, March 31, 2023 | $ | 6,223,301 | $ | 184,299 | $ | 776 | $ | (805,515) | $ | (127,068) | $ | 1,580,027 | $ | 7,055,820 | |||||||||||||||||||||||||||
| Net loss | — | — | — | (253,231) | — | (9,090) | (262,321) | ||||||||||||||||||||||||||||||||||
Redeemable non-controlling interests not included in equity (note 14) |
— | — | — | — | — | (6,018) | (6,018) | ||||||||||||||||||||||||||||||||||
| OCI | — | — | — | — | 35,331 | 397 | 35,728 | ||||||||||||||||||||||||||||||||||
| Dividends declared and distributions to non-controlling interests | — | — | — | (77,449) | — | (14,104) | (91,553) | ||||||||||||||||||||||||||||||||||
| Common shares issued upon conversion of convertible debentures | 11 | — | — | — | — | — | 11 | ||||||||||||||||||||||||||||||||||
Contributions received from non-controlling interests, net of cost |
— | — | — | — | — | 98,851 | 98,851 | ||||||||||||||||||||||||||||||||||
| Issuance of common shares under employee share purchase plan | 1,405 | — | — | — | — | — | 1,405 | ||||||||||||||||||||||||||||||||||
| Share-based compensation | — | — | 3,602 | — | — | — | 3,602 | ||||||||||||||||||||||||||||||||||
| Common shares issued pursuant to share-based awards | 53 | — | (99) | (13) | — | — | (59) | ||||||||||||||||||||||||||||||||||
| Balance, June 30, 2023 | $ | 6,224,770 | $ | 184,299 | $ | 4,279 | $ | (1,136,208) | $ | (91,737) | $ | 1,650,063 | $ | 6,835,466 | |||||||||||||||||||||||||||
|
(thousands of U.S. dollars)
For the six months ended June 30, 2024
|
|||||||||||||||||||||||||||||||||||||||||
| Algonquin Power & Utilities Corp. Shareholders | |||||||||||||||||||||||||||||||||||||||||
| Common shares |
Preferred shares |
Additional paid-in capital |
Deficit | AOCI | Non- controlling interests |
Total | |||||||||||||||||||||||||||||||||||
| Balance, December 31, 2023 | $ | 6,229,994 | $ | 184,299 | $ | 7,254 | $ | (1,279,696) | $ | (102,286) | $ | 1,584,843 | $ | 6,624,408 | |||||||||||||||||||||||||||
Net earnings (loss) |
— | — | — | 111,620 | — | (72,884) | 38,736 | ||||||||||||||||||||||||||||||||||
| Effect of redeemable non-controlling interests not included in equity (note 14) | — | — | — | — | — | 662 | 662 | ||||||||||||||||||||||||||||||||||
| OCI | — | — | — | — | 38,916 | (1,022) | 37,894 | ||||||||||||||||||||||||||||||||||
| Dividends declared and distributions to non-controlling interests | — | — | — | (164,357) | — | (67,079) | (231,436) | ||||||||||||||||||||||||||||||||||
Contributions received from non-controlling interests, net of cost |
— | — | — | — | — | 66,859 | 66,859 | ||||||||||||||||||||||||||||||||||
Common shares issued upon public offering (note 10(a)) |
1,150,000 | — | — | — | — | — | 1,150,000 | ||||||||||||||||||||||||||||||||||
| Common shares issued under employee share purchase plan | 2,316 | — | — | — | — | — | 2,316 | ||||||||||||||||||||||||||||||||||
| Share-based compensation | — | — | 6,453 | — | — | — | 6,453 | ||||||||||||||||||||||||||||||||||
| Common shares issued pursuant to share-based awards | 6,806 | — | (5,783) | 486 | — | — | 1,509 | ||||||||||||||||||||||||||||||||||
Non-controlling interest assumed on asset acquisition |
— | — | (7,097) | — | — | (3,800) | (10,897) | ||||||||||||||||||||||||||||||||||
| Balance, June 30, 2024 | $ | 7,389,116 | $ | 184,299 | $ | 827 | $ | (1,331,947) | $ | (63,370) | $ | 1,507,579 | $ | 7,686,504 | |||||||||||||||||||||||||||
|
(thousands of U.S. dollars)
For the six months ended June 30, 2023
|
|||||||||||||||||||||||||||||||||||||||||
| Algonquin Power & Utilities Corp. Shareholders | |||||||||||||||||||||||||||||||||||||||||
| Common shares |
Preferred shares |
Additional paid-in capital |
Deficit | AOCI | Non- controlling interests |
Total | |||||||||||||||||||||||||||||||||||
| Balance, December 31, 2022 | $ | 6,183,943 | $ | 184,299 | $ | 9,413 | $ | (997,945) | $ | (160,063) | $ | 1,616,792 | $ | 6,836,439 | |||||||||||||||||||||||||||
Net earnings (loss) |
— | — | 16,908 | — | (29,619) | (12,711) | |||||||||||||||||||||||||||||||||||
| Redeemable non-controlling interests not included in equity (note 14) | — | — | — | — | — | (11,737) | (11,737) | ||||||||||||||||||||||||||||||||||
| OCI | — | — | — | — | 68,326 | 212 | 68,538 | ||||||||||||||||||||||||||||||||||
| Dividends declared and distributions to non-controlling interests | — | — | — | (124,451) | — | (33,518) | (157,969) | ||||||||||||||||||||||||||||||||||
| Dividends and issuance of shares under dividend reinvestment plan | 30,482 | — | — | (30,482) | — | — | — | ||||||||||||||||||||||||||||||||||
Contributions received from non-controlling interests, net of cost |
— | — | — | — | — | 107,933 | 107,933 | ||||||||||||||||||||||||||||||||||
| Common shares issued upon conversion of convertible debentures | 11 | — | — | — | — | — | 11 | ||||||||||||||||||||||||||||||||||
| Issuance of common shares under employee share purchase plan | 3,113 | — | — | — | — | — | 3,113 | ||||||||||||||||||||||||||||||||||
| Share-based compensation | — | — | 4,695 | — | — | — | 4,695 | ||||||||||||||||||||||||||||||||||
| Common shares issued pursuant to share-based awards |
7,221 | — | (9,829) | (238) | — | — | (2,846) | ||||||||||||||||||||||||||||||||||
| Balance, June 30, 2023 | $ | 6,224,770 | $ | 184,299 | $ | 4,279 | $ | (1,136,208) | $ | (91,737) | $ | 1,650,063 | $ | 6,835,466 | |||||||||||||||||||||||||||
| (thousands of U.S. dollars) | Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Cash provided by (used in): | |||||||||||||||||||||||
| Operating activities | |||||||||||||||||||||||
Net earnings (loss) |
$ | 159,041 | $ | (262,321) | $ | 38,736 | $ | (12,711) | |||||||||||||||
| Adjustments and items not affecting cash: | |||||||||||||||||||||||
| Depreciation and amortization | 136,912 | 118,448 | 266,452 | 240,089 | |||||||||||||||||||
| Deferred taxes | 41,453 | (62,258) | 25,046 | (44,057) | |||||||||||||||||||
Initial value and changes in derivative financial instruments net of amortization |
(1,255) | (4,882) | (3,000) | (9,851) | |||||||||||||||||||
| Share-based compensation | 5,172 | 3,199 | 10,282 | 3,895 | |||||||||||||||||||
| Cost of equity funds used for construction purposes | (281) | (568) | (1,150) | (1,226) | |||||||||||||||||||
| Change in value of investments carried at fair value | (172,904) | 311,410 | (14,572) | 132,026 | |||||||||||||||||||
Pension and post-employment expense in excess of (lower than) contributions |
(1,553) | 2,176 | 2,429 | 119 | |||||||||||||||||||
| Distributions received from equity investments, net of income | 9,799 | 5,588 | 34,269 | 3,554 | |||||||||||||||||||
Other (note 16(c)) |
(10,736) | 38,232 | (7,556) | 36,195 | |||||||||||||||||||
Net change in non-cash operating items (note 20) |
70,553 | 112,380 | 16,010 | (53,356) | |||||||||||||||||||
| 236,201 | 261,404 | 366,946 | 294,677 | ||||||||||||||||||||
| Financing activities | |||||||||||||||||||||||
| Increase in long-term debt | 468,230 | 224,664 | 2,383,349 | 654,648 | |||||||||||||||||||
| Repayments of long-term debt | (1,250,081) | (194,403) | (2,751,033) | (398,179) | |||||||||||||||||||
| Net change in commercial paper | (192,699) | (1,187) | (448,720) | 91,613 | |||||||||||||||||||
| Issuance of common shares, net of costs | 1,151,038 | 1,405 | 1,152,316 | 3,113 | |||||||||||||||||||
| Cash dividends on common shares | (77,075) | (75,493) | (150,738) | (171,386) | |||||||||||||||||||
| Dividends on preferred shares | (2,705) | (2,080) | (5,117) | (4,172) | |||||||||||||||||||
Contributions from non-controlling interests and redeemable non-controlling interests (note 3) |
— | 98,955 | 60,545 | 98,955 | |||||||||||||||||||
| Production-based cash contributions from non-controlling interest | 2,313 | — | 6,315 | 9,082 | |||||||||||||||||||
Distributions to non-controlling interests, related party |
— | (244) | — | (12,300) | |||||||||||||||||||
| Distributions to non-controlling interests | (18,636) | (20,746) | (25,450) | (33,084) | |||||||||||||||||||
| Shares surrendered to fund withholding taxes on exercised share options | (1,481) | — | (2,451) | (568) | |||||||||||||||||||
| Acquisition of non-controlling interest | — | — | (10,059) | — | |||||||||||||||||||
| Increase in other long-term liabilities | 2,738 | 6,695 | 9,370 | 11,125 | |||||||||||||||||||
| Decrease in other long-term liabilities | (21,991) | (255) | (44,279) | (20,329) | |||||||||||||||||||
| 59,651 | 37,311 | 174,048 | 228,518 | ||||||||||||||||||||
| Investing activities | |||||||||||||||||||||||
| Additions to property, plant and equipment and intangible assets | (204,336) | (245,209) | (416,882) | (414,958) | |||||||||||||||||||
| Increase in long-term investments | (62,288) | (41,774) | (78,181) | (89,379) | |||||||||||||||||||
Divestiture of operating entity |
11,827 | — | 29,548 | — | |||||||||||||||||||
| Increase in other assets | (1,719) | (130) | (2,650) | (1,980) | |||||||||||||||||||
| Decrease in long-term investments | — | 11,749 | — | 11,749 | |||||||||||||||||||
| (256,516) | (275,364) | (468,165) | (494,568) | ||||||||||||||||||||
| Effect of exchange rate differences on cash and restricted cash | 151 | 369 | (1,512) | 872 | |||||||||||||||||||
Increase in cash, cash equivalents and restricted cash |
39,487 | 23,720 | 71,317 | 29,499 | |||||||||||||||||||
Cash, cash equivalents and restricted cash, beginning of period |
107,969 | 106,964 | 76,139 | 101,185 | |||||||||||||||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 147,456 | $ | 130,684 | $ | 147,456 | $ | 130,684 | |||||||||||||||
| Algonquin Power & Utilities Corp. Unaudited Interim Condensed Consolidated Statements of Cash Flows (continued) | |||||||||||||||||||||||
| (thousands of U.S. dollars) | Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Supplemental disclosure of cash flow information: | |||||||||||||||||||||||
Cash paid during the period for interest expense |
$ | 96,783 | $ | 75,489 | $ | 206,412 | $ | 178,201 | |||||||||||||||
Cash paid (received) during the period for income taxes - net (note 15) |
$ | (52,118) | $ | 2,097 | $ | (49,454) | $ | 4,138 | |||||||||||||||
Cash received during the period for distributions from equity investments |
$ | 27,081 | $ | 28,331 | $ | 53,469 | $ | 56,611 | |||||||||||||||
| Non-cash financing and investing activities: | |||||||||||||||||||||||
| Property, plant and equipment acquisitions in accruals | $ | 124,001 | $ | 145,594 | $ | 124,001 | $ | 145,594 | |||||||||||||||
| Issuance of common shares under dividend reinvestment plan and share-based compensation plans | $ | 3,564 | $ | 1,458 | $ | 9,122 | $ | 40,816 | |||||||||||||||
Property, plant and equipment, intangible assets and accrued liabilities in exchange of notes receivable |
$ | 141,171 | $ | — | $ | 160,916 | $ | — | |||||||||||||||
| Algonquin Power & Utilities Corp. | ||
Notes to the Unaudited Interim Condensed Consolidated Financial Statements | ||
| June 30, 2024 and 2023 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| Algonquin Power & Utilities Corp. | ||
Notes to the Unaudited Interim Condensed Consolidated Financial Statements | ||
| June 30, 2024 and 2023 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| Shady Oaks II | |||||
| Working capital | $ | (1,189) | |||
| Property, plant and equipment | 260,090 | ||||
Long-term debt (note 7(f)) |
(163,735) | ||||
| Asset retirement obligation | (674) | ||||
| Derivative | (23,493) | ||||
| Deferred tax liability | (11,375) | ||||
| Total net assets acquired | 59,624 | ||||
Less: cash and cash equivalents |
1,922 | ||||
| Net assets acquired, net of cash and cash equivalents | $ | 57,702 | |||
| Algonquin Power & Utilities Corp. | ||
Notes to the Unaudited Interim Condensed Consolidated Financial Statements | ||
| June 30, 2024 and 2023 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| New Market Solar | |||||
| Working capital | $ | (7,614) | |||
| Property, plant and equipment | 193,782 | ||||
| Asset retirement obligation | (1,135) | ||||
| Deferred tax liability | (2,091) | ||||
| Total net assets acquired | 182,942 | ||||
Less: cash and cash equivalents |
434 | ||||
| Net assets acquired, net of cash and cash equivalents | $ | 182,508 | |||
| Sandy Ridge II | |||||
| Working capital | $ | 3,526 | |||
| Property, plant and equipment | 206,927 | ||||
| Long-term debt | (162,341) | ||||
| Asset retirement obligation | (456) | ||||
| Deferred tax liability | (3,517) | ||||
| Total net assets acquired | 44,139 | ||||
Less: cash and cash equivalents |
— | ||||
| Net assets acquired, net of cash and cash equivalents | $ | 44,139 | |||
| Algonquin Power & Utilities Corp. | ||
Notes to the Unaudited Interim Condensed Consolidated Financial Statements | ||
| June 30, 2024 and 2023 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| Utility | State, Province or Country | Regulatory Proceeding Type | Details | ||||||||
| BELCO | Bermuda | General Rate Case ("GRC") | On September 30, 2021, filed its revenue allowance application in which it requested a $34,800 increase for 2022 and a $6,100 increase for 2023. On March 18, 2022, the Regulatory Authority ("RA") approved an annual increase of $22,800, for a revenue allowance of $224,100 for 2022 and $226,200 for 2023. The RA authorized a 7.16% rate of return, comprised of a 62% equity and an 8.92% return on equity ("ROE"). In April 2022, BELCO filed an appeal in the Supreme Court of Bermuda challenging the decisions made by the RA through the recent Retail Tariff Review. On February 23, 2024, the Bermuda Supreme Court issued an order denying the BELCO appeal. |
||||||||
BELCO |
Bermuda |
GRC |
On October 17, 2023, filed its revenue allowance application in which it requested a $59,100 increase for 2024 and 2025 based on a weighted average cost of capital of 10.13%. On May 30, 2024, the RA issued a final order authorizing a revenue increase of $33,600 in 2024 and 2025 based on a weighted average cost of capital of 7.79%. New base rates became effective August 1, 2024. |
||||||||
| Empire Electric | Arkansas | GRC |
On February 14, 2023, filed an application seeking an increase in revenues of $7,300 based on an ROE of 10.25% and an equity ratio of 56% to be phased in over three years. On December 7, 2023, the Arkansas Public Service Commission issued an order approving the settlement agreement authorizing a revenue increase of $5,300. New rates became effective January 1, 2024. |
||||||||
| Algonquin Power & Utilities Corp. | ||
Notes to the Unaudited Interim Condensed Consolidated Financial Statements | ||
| June 30, 2024 and 2023 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| June 30, | December 31, | ||||||||||
| 2024 | 2023 | ||||||||||
| Regulatory assets | |||||||||||
Securitized costs, net (a) |
$ | 296,918 | $ | — | |||||||
| Rate adjustment mechanism | 201,051 | 192,880 | |||||||||
| Deferred capitalized costs | 147,536 | 124,517 | |||||||||
| Fuel and commodity cost adjustments | 101,805 | 326,418 | |||||||||
| Income taxes | 99,847 | 101,939 | |||||||||
Wildfire mitigation and vegetation management (b) |
130,564 | 64,146 | |||||||||
| Pension and post-employment benefits | 62,736 | 68,822 | |||||||||
| Environmental remediation | 60,365 | 66,779 | |||||||||
| Clean energy and other customer programs | 31,676 | 37,214 | |||||||||
| Debt premium | 15,880 | 18,995 | |||||||||
| Retired generating plant | 14,509 | 183,732 | |||||||||
| Asset retirement obligation | 13,916 | 26,620 | |||||||||
| Cost of removal | 11,084 | 11,084 | |||||||||
| Rate review costs | 9,014 | 8,815 | |||||||||
| Long-term maintenance contract | 3,948 | 4,932 | |||||||||
| Other | 109,612 | 90,790 | |||||||||
| Total regulatory assets | $ | 1,310,461 | $ | 1,327,683 | |||||||
| Less: current regulatory assets | (185,938) | (142,970) | |||||||||
| Non-current regulatory assets | $ | 1,124,523 | $ | 1,184,713 | |||||||
| Regulatory liabilities | |||||||||||
| Income taxes | $ | 273,064 | $ | 290,121 | |||||||
| Cost of removal | 188,840 | 185,786 | |||||||||
| Pension and post-employment benefits | 111,556 | 104,636 | |||||||||
| Fuel and commodity cost adjustments | 42,491 | 42,850 | |||||||||
| Clean energy and other customer programs | 9,746 | 12,730 | |||||||||
| Rate adjustment mechanism | 1,119 | 2,078 | |||||||||
| Other | 24,348 | 96,095 | |||||||||
| Total regulatory liabilities | $ | 651,164 | $ | 734,296 | |||||||
| Less: current regulatory liabilities | (88,449) | (99,850) | |||||||||
| Non-current regulatory liabilities | $ | 562,715 | $ | 634,446 | |||||||
| Algonquin Power & Utilities Corp. | ||
Notes to the Unaudited Interim Condensed Consolidated Financial Statements | ||
| June 30, 2024 and 2023 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| June 30, | December 31, | ||||||||||
| 2024 | 2023 | ||||||||||
| Long-term investments carried at fair value |
|||||||||||
Atlantica (a) |
$ | 1,074,736 | $ | 1,052,703 | |||||||
| Atlantica Yield Energy Solutions Canada Inc. | 51,530 | 61,064 | |||||||||
| Other | 1,905 | 1,962 | |||||||||
| $ | 1,128,171 | $ | 1,115,729 | ||||||||
| Other long-term investments | |||||||||||
Equity-method investees (b) |
$ | 352,983 | $ | 456,393 | |||||||
Development loans receivable from equity-method investees (b) |
31,444 | 158,110 | |||||||||
| Other | 27,558 | 27,417 | |||||||||
| $ | 411,985 | $ | 641,920 | ||||||||
| Algonquin Power & Utilities Corp. | ||
Notes to the Unaudited Interim Condensed Consolidated Financial Statements | ||
| June 30, 2024 and 2023 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| Three months ended | Six months ended | ||||||||||||||||||||||
| June 30 | June 30 | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Fair value gain (loss) on investments carried at fair value | |||||||||||||||||||||||
| Atlantica | $ | 169,902 | $ | (299,653) | $ | 22,034 | $ | (120,449) | |||||||||||||||
| Atlantica Yield Energy Solutions Canada Inc. | 2,966 | (11,763) | (7,596) | (11,567) | |||||||||||||||||||
| Other | 36 | 6 | 134 | (10) | |||||||||||||||||||
| $ | 172,904 | $ | (311,410) | $ | 14,572 | $ | (132,026) | ||||||||||||||||
| Dividend and interest income from investments carried at fair value | |||||||||||||||||||||||
| Atlantica | $ | 21,788 | $ | 21,788 | $ | 43,577 | $ | 43,577 | |||||||||||||||
| Atlantica Yield Energy Solutions Canada Inc. | 4,984 | 4,821 | 8,875 | 10,678 | |||||||||||||||||||
| Other | 9 | 7 | 26 | 17 | |||||||||||||||||||
| $ | 26,781 | $ | 26,616 | $ | 52,478 | $ | 54,272 | ||||||||||||||||
| Other long-term investments | |||||||||||||||||||||||
Equity method loss (c) |
(9,108) | (2,434) | (33,375) | (153) | |||||||||||||||||||
| Interest and other income | 2,034 | 682 | 4,483 | 2,322 | |||||||||||||||||||
| $ | (7,074) | $ | (1,752) | $ | (28,892) | $ | 2,169 | ||||||||||||||||
Income (loss) from long-term investments |
$ | 192,611 | $ | (286,546) | $ | 38,158 | $ | (75,585) | |||||||||||||||
| Algonquin Power & Utilities Corp. | ||
Notes to the Unaudited Interim Condensed Consolidated Financial Statements | ||
| June 30, 2024 and 2023 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| June 30, | December 31, | ||||||||||
| 2024 | 2023 | ||||||||||
| Total assets | $ | 2,590,705 | $ | 3,235,474 | |||||||
| Total liabilities | 1,395,474 | 1,962,115 | |||||||||
| Net assets | $ | 1,195,231 | $ | 1,273,359 | |||||||
| AQN's ownership interest in the entities | 310,885 | 388,993 | |||||||||
|
Difference between investment carrying amount and underlying
equity in net assets(a)
|
42,098 | 67,400 | |||||||||
| AQN's investment carrying amount for the entities | $ | 352,983 | $ | 456,393 | |||||||
| Six months ended | |||||||||||
| June 30 | |||||||||||
| 2024 | 2023 | ||||||||||
| Revenue | $ | 67,675 | $ | 49,467 | |||||||
Net gain (loss) |
(38,136) | 1,836 | |||||||||
Other comprehensive income (loss) (a) |
27,731 | (2,807) | |||||||||
Net loss attributable to AQN |
$ | (33,375) | $ | (153) | |||||||
Other comprehensive income (loss) attributable to AQN (a) |
$ | 12,182 | $ | (2,076) | |||||||
| Algonquin Power & Utilities Corp. | ||
Notes to the Unaudited Interim Condensed Consolidated Financial Statements | ||
| June 30, 2024 and 2023 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| June 30, | December 31, | ||||||||||
| 2024 | 2023 | ||||||||||
| AQN's maximum exposure in regards to VIEs | |||||||||||
| Carrying amount | $ | 90,471 | $ | 179,728 | |||||||
| Development loans receivable | 31,444 | 158,110 | |||||||||
Indirect guarantees of debt on behalf of VIEs |
405,119 | 740,866 | |||||||||
Other indirect guarantees and commitments on behalf of VIEs |
141,860 | 303,641 | |||||||||
| $ | 668,894 | $ | 1,382,345 | ||||||||
| Algonquin Power & Utilities Corp. | ||
Notes to the Unaudited Interim Condensed Consolidated Financial Statements | ||
| June 30, 2024 and 2023 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| Borrowing type | Weighted average coupon | Maturity | Par value | June 30, | December 31, | ||||||||||||||||||||||||
| 2024 | 2023 | ||||||||||||||||||||||||||||
Senior unsecured revolving credit facilities (a) |
— | 2024-2028 | N/A | $ | 668,876 | $ | 1,624,186 | ||||||||||||||||||||||
|
Senior unsecured bank credit
facilities and delayed draw term
facility (b)
|
— | 2024-2031 | N/A | 789,216 | 786,962 | ||||||||||||||||||||||||
| Commercial paper | — | 2025 | N/A | 33,000 | 481,720 | ||||||||||||||||||||||||
| U.S. dollar borrowings | |||||||||||||||||||||||||||||
|
Senior unsecured notes
(Green Equity Units) (c)
|
5.37 | % | 2026 | $ | 1,140,787 | 1,135,137 | 1,144,897 | ||||||||||||||||||||||
Senior unsecured notes (d) |
4.25 | % | 2027-2047 | $ | 2,195,000 | 2,181,669 | 1,406,278 | ||||||||||||||||||||||
| Senior unsecured utility notes | 6.30 | % | 2025-2035 | $ | 137,000 | 146,623 | 147,589 | ||||||||||||||||||||||
Senior secured utility bonds (e) |
4.82 | % | 2026-2044 | $ | 861,681 | 850,773 | 551,166 | ||||||||||||||||||||||
Construction loan (f) |
6.57 | % | 2024 | $ | 163,735 | 163,735 | — | ||||||||||||||||||||||
| Canadian dollar borrowings | |||||||||||||||||||||||||||||
| Senior unsecured notes | 3.68 | % | 2027-2050 | C$ | 1,200,000 | 873,025 | 904,604 | ||||||||||||||||||||||
| Senior secured project notes | 10.21 | % | 2027 | C$ | 15,097 | 11,030 | 12,738 | ||||||||||||||||||||||
| Chilean Unidad de Fomento borrowings | |||||||||||||||||||||||||||||
| Senior unsecured utility bonds | 3.82 | % | 2028-2040 | CLF | 1,463 | 64,026 | 70,967 | ||||||||||||||||||||||
| $ | 6,917,110 | $ | 7,131,107 | ||||||||||||||||||||||||||
| Subordinated borrowings | |||||||||||||||||||||||||||||
| Subordinated unsecured notes | 5.25 | % | 2082 | C$ | 400,000 | $ | 288,459 | $ | 298,382 | ||||||||||||||||||||
| Subordinated unsecured notes | 5.21 | % | 2079-2082 | $ | 1,100,000 | 1,087,080 | 1,086,541 | ||||||||||||||||||||||
| $ | 1,375,539 | $ | 1,384,923 | ||||||||||||||||||||||||||
| $ | 8,292,649 | $ | 8,516,030 | ||||||||||||||||||||||||||
| Less: current portion | (158,278) | (621,856) | |||||||||||||||||||||||||||
| $ | 8,134,371 | $ | 7,894,174 | ||||||||||||||||||||||||||
| Algonquin Power & Utilities Corp. | ||
Notes to the Unaudited Interim Condensed Consolidated Financial Statements | ||
| June 30, 2024 and 2023 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| June 30, | December 31, | |||||||||||||
| 2024 | 2023 | |||||||||||||
| Revolving and term credit facilities | $ | 4,589,200 | $ | 4,562,000 | ||||||||||
| Funds drawn on facilities/commercial paper issued | (1,491,100) | (2,892,900) | ||||||||||||
| Letters of credit issued | (461,900) | (469,100) | ||||||||||||
| Liquidity available under the facilities | 2,636,200 | 1,200,000 | ||||||||||||
| Undrawn portion of uncommitted letter of credit facilities | (254,600) | (254,100) | ||||||||||||
| Cash on hand | 131,633 | 56,142 | ||||||||||||
| Total liquidity and capital reserves | $ | 2,513,233 | $ | 1,002,042 | ||||||||||
| Algonquin Power & Utilities Corp. | ||
Notes to the Unaudited Interim Condensed Consolidated Financial Statements | ||
| June 30, 2024 and 2023 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| Three months ended | Six months ended | ||||||||||||||||||||||
| June 30 | June 30 | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Long-term debt | $ | 73,169 | $ | 65,046 | $ | 139,881 | $ | 128,814 | |||||||||||||||
| Commercial paper, credit facility draws and related fees | 39,299 | 27,714 | 82,412 | 52,140 | |||||||||||||||||||
| Accretion of fair value adjustments | (5,094) | (824) | (10,956) | (4,223) | |||||||||||||||||||
| Capitalized interest and AFUDC capitalized on regulated property | (2,269) | (4,420) | (5,661) | (8,304) | |||||||||||||||||||
| Other | 682 | 2,147 | 2,635 | 3,154 | |||||||||||||||||||
| $ | 105,787 | $ | 89,663 | $ | 208,311 | $ | 171,581 | ||||||||||||||||
| Algonquin Power & Utilities Corp. | ||
Notes to the Unaudited Interim Condensed Consolidated Financial Statements | ||
| June 30, 2024 and 2023 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| Pension benefits | |||||||||||||||||||||||
| Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Service cost | $ | 2,969 | $ | 3,166 | $ | 6,053 | $ | 6,093 | |||||||||||||||
| Non-service costs | |||||||||||||||||||||||
| Interest cost | 8,061 | 7,906 | 16,494 | 16,299 | |||||||||||||||||||
| Expected return on plan assets | (8,603) | (7,947) | (17,300) | (16,263) | |||||||||||||||||||
Amortization of net actuarial gains |
(321) | (71) | (712) | (195) | |||||||||||||||||||
| Amortization of prior service credits | (359) | (373) | (719) | (746) | |||||||||||||||||||
| Impact of regulatory accounts | 4,384 | 4,588 | 8,755 | 8,683 | |||||||||||||||||||
| $ | 3,162 | $ | 4,103 | $ | 6,518 | $ | 7,778 | ||||||||||||||||
| Net benefit cost | $ | 6,131 | $ | 7,269 | $ | 12,571 | $ | 13,871 | |||||||||||||||
| OPEB | |||||||||||||||||||||||
| Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Service cost | $ | 780 | $ | 902 | $ | 1,560 | $ | 1,891 | |||||||||||||||
| Non-service costs | |||||||||||||||||||||||
| Interest cost | 2,674 | 2,891 | 5,327 | 6,329 | |||||||||||||||||||
| Expected return on plan assets | (2,644) | (2,331) | (5,288) | (5,077) | |||||||||||||||||||
Amortization of net actuarial gains |
(867) | (561) | (2,466) | (1,122) | |||||||||||||||||||
| Amortization of prior service credits | (213) | (213) | (426) | (426) | |||||||||||||||||||
| Impact of regulatory accounts | 1,863 | 1,417 | 3,748 | 2,785 | |||||||||||||||||||
| $ | 813 | $ | 1,203 | $ | 895 | $ | 2,489 | ||||||||||||||||
| Net benefit cost | $ | 1,593 | $ | 2,105 | $ | 2,455 | $ | 4,380 | |||||||||||||||
| Algonquin Power & Utilities Corp. | ||
Notes to the Unaudited Interim Condensed Consolidated Financial Statements | ||
| June 30, 2024 and 2023 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| June 30, | December 31, | ||||||||||
| 2024 | 2023 | ||||||||||
| Asset retirement obligations | $ | 120,722 | $ | 115,611 | |||||||
| Advances in aid of construction | 84,220 | 88,135 | |||||||||
Contingent liability (note 19(a)) |
172,283 | 66,000 | |||||||||
| Deferred credits and contingent consideration | 43,859 | 40,945 | |||||||||
| Environmental remediation obligation | 37,676 | 40,772 | |||||||||
| Customer deposits | 35,636 | 36,294 | |||||||||
| Lease liabilities | 20,024 | 20,493 | |||||||||
| Unamortized investment tax credits | 17,068 | 17,255 | |||||||||
| Contingent development support obligations | 7,681 | 12,666 | |||||||||
| Hook-up fees | 7,510 | 7,425 | |||||||||
Contract adjustment payments (a) |
— | 39,590 | |||||||||
Note payable to related party (note 3(c)) |
— | 25,808 | |||||||||
| Other | 31,128 | 35,338 | |||||||||
| $ | 577,807 | $ | 546,332 | ||||||||
| Less: current portion | (185,314) | (80,458) | |||||||||
| $ | 392,493 | $ | 465,874 | ||||||||
| Six months ended | ||||||||||||||
| June 30 | ||||||||||||||
| 2024 | 2023 | |||||||||||||
| Common shares, beginning of period | 689,271,039 | 683,614,803 | ||||||||||||
Settlement of Purchase Contracts |
76,909,700 | — | ||||||||||||
Exercise of share-based awards |
749,522 | 772,591 | ||||||||||||
Dividend reinvestment plan |
— | 4,370,289 | ||||||||||||
Conversion of convertible debentures |
— | 1,415 | ||||||||||||
| Common shares, end of period | 766,930,261 | 688,759,098 | ||||||||||||
| Algonquin Power & Utilities Corp. | ||
Notes to the Unaudited Interim Condensed Consolidated Financial Statements | ||
| June 30, 2024 and 2023 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| Algonquin Power & Utilities Corp. | ||
Notes to the Unaudited Interim Condensed Consolidated Financial Statements | ||
| June 30, 2024 and 2023 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| Foreign currency cumulative translation | Unrealized gain (loss) on cash flow hedges | Pension and post-employment actuarial changes | Total | ||||||||||||||||||||
| Balance, January 1, 2023 | $ | (98,467) | $ | (97,809) | $ | 36,213 | $ | (160,063) | |||||||||||||||
| OCI | (3,788) | 57,351 | 8,395 | 61,958 | |||||||||||||||||||
Amounts reclassified from AOCI to the unaudited interim condensed consolidated statements of operations |
(1,598) | 2,136 | (3,702) | (3,164) | |||||||||||||||||||
| Net current period OCI | $ | (5,386) | $ | 59,487 | $ | 4,693 | $ | 58,794 | |||||||||||||||
| OCI attributable to the non-controlling interests | (1,017) | — | — | (1,017) | |||||||||||||||||||
| Net current period OCI attributable to shareholders of AQN | (6,403) | 59,487 | 4,693 | 57,777 | |||||||||||||||||||
| Balance, December 31, 2023 | $ | (104,870) | $ | (38,322) | $ | 40,906 | $ | (102,286) | |||||||||||||||
| OCI | 4,690 | 45,698 | — | 50,388 | |||||||||||||||||||
Amounts reclassified from AOCI to the unaudited interim condensed consolidated statements of operations |
(274) | (7,046) | (5,174) | (12,494) | |||||||||||||||||||
| Net current period OCI | $ | 4,416 | $ | 38,652 | $ | (5,174) | $ | 37,894 | |||||||||||||||
| OCI attributable to the non-controlling interests | 1,022 | — | — | 1,022 | |||||||||||||||||||
| Net current period OCI attributable to shareholders of AQN | $ | 5,438 | $ | 38,652 | $ | (5,174) | $ | 38,916 | |||||||||||||||
| Balance, June 30, 2024 | $ | (99,432) | $ | 330 | $ | 35,732 | $ | (63,370) | |||||||||||||||
| Algonquin Power & Utilities Corp. | ||
Notes to the Unaudited Interim Condensed Consolidated Financial Statements | ||
| June 30, 2024 and 2023 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| Three months ended June 30 | |||||||||||||||||||||||
| 2024 | 2023 | ||||||||||||||||||||||
| Dividend | Dividend per share | Dividend | Dividend per share | ||||||||||||||||||||
| Common shares | $ | 83,740 | $ | 0.1085 | $ | 75,379 | $ | 0.1085 | |||||||||||||||
| Series A preferred shares | C$ | 1,973 | C$ | 0.4110 | C$ | 1,549 | C$ | 0.3226 | |||||||||||||||
| Series D preferred shares | C$ | 1,713 | C$ | 0.4283 | C$ | 1,273 | C$ | 0.3182 | |||||||||||||||
| Six months ended June 30 | |||||||||||||||||||||||
| 2024 | 2023 | ||||||||||||||||||||||
| Dividend | Dividend per share | Dividend | Dividend per share | ||||||||||||||||||||
| Common shares | $ | 159,207 | $ | 0.2170 | $ | 150,765 | $ | 0.2170 | |||||||||||||||
| Series A preferred shares | C$ | 3,946 | C$ | 0.8220 | C$ | 3,097 | C$ | 0.6453 | |||||||||||||||
| Series D preferred shares | C$ | 2,986 | C$ | 0.7465 | C$ | 2,546 | C$ | 0.6364 | |||||||||||||||
| Algonquin Power & Utilities Corp. | ||
Notes to the Unaudited Interim Condensed Consolidated Financial Statements | ||
| June 30, 2024 and 2023 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| Three months ended | Six months ended | ||||||||||||||||||||||
| June 30 | June 30 | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| HLBV and other adjustments attributable to: | |||||||||||||||||||||||
| Non-controlling interests - tax equity partnership units | $ | 49,121 | $ | 25,172 | $ | 89,328 | $ | 59,743 | |||||||||||||||
| Non-controlling interests - redeemable tax equity partnership units | 331 | 331 | 662 | 662 | |||||||||||||||||||
Other net earnings attributable to: |
|||||||||||||||||||||||
| Non-controlling interests | (7,727) | (10,064) | (17,106) | (18,387) | |||||||||||||||||||
| $ | 41,725 | $ | 15,439 | $ | 72,884 | $ | 42,018 | ||||||||||||||||
| Redeemable non-controlling interest, held by related party | — | (6,349) | — | (12,399) | |||||||||||||||||||
Net effect of non-controlling interests |
$ | 41,725 | $ | 9,090 | $ | 72,884 | $ | 29,619 | |||||||||||||||
| Algonquin Power & Utilities Corp. | ||
Notes to the Unaudited Interim Condensed Consolidated Financial Statements | ||
| June 30, 2024 and 2023 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| Three months ended | Six months ended | ||||||||||||||||||||||
| June 30 | June 30 | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Expected income tax (recovery) expense at Canadian statutory rate | $ | 40,622 | $ | (84,596) | $ | 5,746 | $ | (11,903) | |||||||||||||||
| Increase (decrease) resulting from: | |||||||||||||||||||||||
| Effect of differences in tax rates on transactions in and within foreign jurisdictions and change in tax rates | (2,702) | (5,560) | (3,863) | (16,718) | |||||||||||||||||||
| Adjustments from investments carried at fair value | (24,817) | 40,357 | (4,734) | 11,092 | |||||||||||||||||||
| Change in valuation allowance | (10,058) | 676 | (13,846) | (791) | |||||||||||||||||||
| Non-controlling interests share of income | 10,468 | 2,201 | 16,470 | 12,393 | |||||||||||||||||||
| Tax credits | (17,160) | (8,095) | (20,463) | (20,505) | |||||||||||||||||||
| Amortization and settlement of excess deferred income tax | (1,794) | (2,456) | (3,305) | (6,207) | |||||||||||||||||||
Foreign exchange difference and other |
213 | 1,515 | 7,464 | 1,382 | |||||||||||||||||||
Income tax recovery |
$ | (5,228) | $ | (55,958) | $ | (16,531) | $ | (31,257) | |||||||||||||||
| Three months ended | Six months ended | ||||||||||||||||||||||
| June 30 | June 30 | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Beginning balance | $ | 95,554 | $ | 97,396 | $ | 97,344 | $ | 107,583 | |||||||||||||||
Charged to income tax expense (recovery) |
(10,058) | 676 | (13,846) | (791) | |||||||||||||||||||
| Charged (reduction) to OCI | (5,507) | (6,418) | (3,509) | (15,138) | |||||||||||||||||||
| Ending balance | $ | 79,989 | $ | 91,654 | $ | 79,989 | $ | 91,654 | |||||||||||||||
| Algonquin Power & Utilities Corp. | ||
Notes to the Unaudited Interim Condensed Consolidated Financial Statements | ||
| June 30, 2024 and 2023 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| Three months ended | Six months ended | ||||||||||||||||||||||
| June 30 | June 30 | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Renewable energy business sale costs (a) |
5,323 | 5,390 | 11,232 | 5,390 | |||||||||||||||||||
Kentucky termination costs (b) |
— | 43,808 | — | 46,527 | |||||||||||||||||||
Acquisition-related settlement payment |
— | (11,983) | — | (11,983) | |||||||||||||||||||
Other (c) |
11,738 | 3,152 | 16,430 | 3,895 | |||||||||||||||||||
| $ | 17,061 | $ | 40,367 | $ | 27,662 | $ | 43,829 | ||||||||||||||||
| Algonquin Power & Utilities Corp. | ||
Notes to the Unaudited Interim Condensed Consolidated Financial Statements | ||
| June 30, 2024 and 2023 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| Three months ended | Six months ended | ||||||||||||||||||||||
| June 30 | June 30 | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Net earnings (loss) attributable to shareholders of AQN | 200,766 | (253,231) | $ | 111,620 | $ | 16,908 | |||||||||||||||||
Series A preferred share dividend |
1,448 | 1,142 | 2,203 | 2,290 | |||||||||||||||||||
Series D preferred share dividend |
1,257 | 938 | 2,914 | 1,882 | |||||||||||||||||||
| Net earnings (loss) attributable to common shareholders of AQN – basic and diluted | $ | 198,061 | $ | (255,311) | $ | 106,503 | $ | 12,736 | |||||||||||||||
| Weighted average number of shares | |||||||||||||||||||||||
| Basic | 701,593,792 | 687,847,010 | 695,700,444 | 688,277,615 | |||||||||||||||||||
| Effect of dilutive securities | 2,360,493 | — | 2,039,030 | 2,838,682 | |||||||||||||||||||
| Diluted | 703,954,285 | 687,847,010 | 697,739,474 | 691,116,297 | |||||||||||||||||||
| Algonquin Power & Utilities Corp. | ||
Notes to the Unaudited Interim Condensed Consolidated Financial Statements | ||
| June 30, 2024 and 2023 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| Three months ended June 30, 2024 | |||||||||||||||||||||||
| Regulated Services Group | Renewable Energy Group | Corporate | Total | ||||||||||||||||||||
Revenue (1)(2) |
$ | 491,312 | $ | 78,661 | $ | — | $ | 569,973 | |||||||||||||||
| Other revenue | 13,940 | 14,518 | 195 | 28,653 | |||||||||||||||||||
| Fuel, power and water purchased | 108,934 | 691 | — | 109,625 | |||||||||||||||||||
| Net revenue | 396,318 | 92,488 | 195 | 489,001 | |||||||||||||||||||
Operating expenses (3) |
215,708 | 47,758 | 2,402 | 265,868 | |||||||||||||||||||
| Depreciation and amortization | 100,120 | 36,553 | 239 | 136,912 | |||||||||||||||||||
| Loss on foreign exchange | — | — | 4,284 | 4,284 | |||||||||||||||||||
Operating income |
80,490 | 8,177 | (6,730) | 81,937 | |||||||||||||||||||
| Interest expense | (49,476) | (18,624) | (37,687) | (105,787) | |||||||||||||||||||
Income from long-term investments and other income |
7,456 | 17,667 | 173,518 | 198,641 | |||||||||||||||||||
| Other expenses | (8,537) | (7,886) | (4,555) | (20,978) | |||||||||||||||||||
| Earnings (loss) before income taxes | $ | 29,933 | $ | (666) | $ | 124,546 | $ | 153,813 | |||||||||||||||
Capital expenditures (4) |
$ | 167,834 | $ | 36,502 | $ | — | $ | 204,336 | |||||||||||||||
| Algonquin Power & Utilities Corp. | ||
Notes to the Unaudited Interim Condensed Consolidated Financial Statements | ||
| June 30, 2024 and 2023 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| Three months ended June 30, 2023 | |||||||||||||||||||||||
| Regulated Services Group | Renewable Energy Group | Corporate | Total | ||||||||||||||||||||
Revenue (1)(2) |
$ | 533,642 | $ | 71,694 | $ | — | $ | 605,336 | |||||||||||||||
| Other revenue | 12,791 | 9,380 | 364 | 22,535 | |||||||||||||||||||
| Fuel, power and water purchased | 138,374 | 3,782 | — | 142,156 | |||||||||||||||||||
| Net revenue | 408,059 | 77,292 | 364 | 485,715 | |||||||||||||||||||
Operating expenses (3) |
228,847 | 38,367 | (40) | 267,174 | |||||||||||||||||||
| Depreciation and amortization | 84,754 | 33,291 | 403 | 118,448 | |||||||||||||||||||
| Gain on foreign exchange | — | — | 6,379 | 6,379 | |||||||||||||||||||
Operating income |
94,458 | 5,634 | (6,378) | 93,714 | |||||||||||||||||||
| Interest expense | (42,724) | (16,420) | (30,519) | (89,663) | |||||||||||||||||||
Income (loss) from long-term investments and other income |
9,332 | 22,842 | (309,870) | (277,696) | |||||||||||||||||||
| Other expenses | (41,010) | (1,197) | (2,427) | (44,634) | |||||||||||||||||||
| Earnings (loss) before income taxes | $ | 20,056 | $ | 10,859 | $ | (349,194) | $ | (318,279) | |||||||||||||||
Capital expenditures (4) |
$ | 225,505 | $ | 19,704 | $ | — | $ | 245,209 | |||||||||||||||
| Algonquin Power & Utilities Corp. | ||
Notes to the Unaudited Interim Condensed Consolidated Financial Statements | ||
| June 30, 2024 and 2023 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| Six months ended June 30, 2024 | |||||||||||||||||||||||
| Regulated Services Group | Renewable Energy Group | Corporate | Total | ||||||||||||||||||||
Revenue (1)(2) |
$ | 1,116,143 | $ | 163,237 | $ | — | $ | 1,279,380 | |||||||||||||||
| Other revenue | 25,689 | 30,052 | 605 | 56,346 | |||||||||||||||||||
| Fuel, power and water purchased | 306,738 | 4,229 | — | 310,967 | |||||||||||||||||||
| Net revenue | 835,094 | 189,060 | 605 | 1,024,759 | |||||||||||||||||||
Operating expenses (3) |
423,239 | 101,353 | 3,061 | 527,653 | |||||||||||||||||||
| Depreciation and amortization | 192,140 | 73,812 | 500 | 266,452 | |||||||||||||||||||
Loss on foreign exchange |
— | — | 16,141 | 16,141 | |||||||||||||||||||
| Operating income (loss) | 219,715 | 13,895 | (19,097) | 214,513 | |||||||||||||||||||
| Interest expense | (98,186) | (38,419) | (71,706) | (208,311) | |||||||||||||||||||
Income from long-term investments and other income |
15,377 | 19,689 | 15,821 | 50,887 | |||||||||||||||||||
| Other expenses | (12,228) | (9,198) | (13,458) | (34,884) | |||||||||||||||||||
| Earnings (loss) before income taxes | $ | 124,678 | $ | (14,033) | $ | (88,440) | $ | 22,205 | |||||||||||||||
Capital expenditures (4) |
351,048 | 65,834 | — | 416,882 | |||||||||||||||||||
| June 30, 2024 | |||||||||||||||||||||||
| Property, plant and equipment | $ | 9,051,366 | $ | 4,120,034 | $ | 27,800 | $ | 13,199,200 | |||||||||||||||
| Investments carried at fair value | 1,905 | 1,126,266 | — | 1,128,171 | |||||||||||||||||||
| Equity-method investees | 39,012 | 313,971 | — | 352,983 | |||||||||||||||||||
| Total assets | 12,690,910 | 5,809,815 | 365,649 | 18,866,374 | |||||||||||||||||||
| Algonquin Power & Utilities Corp. | ||
Notes to the Unaudited Interim Condensed Consolidated Financial Statements | ||
| June 30, 2024 and 2023 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| Six months ended June 30, 2023 | |||||||||||||||||||||||
| Regulated Services Group | Renewable Energy Group | Corporate | Total | ||||||||||||||||||||
Revenue (1)(2) |
$ | 1,208,174 | $ | 150,410 | $ | — | $ | 1,358,584 | |||||||||||||||
| Other revenue | 26,438 | 20,751 | 725 | 47,914 | |||||||||||||||||||
| Fuel, power and water purchased | 405,524 | 11,588 | — | 417,112 | |||||||||||||||||||
| Net revenue | 829,088 | 159,573 | 725 | 989,386 | |||||||||||||||||||
Operating expenses (3) |
425,699 | 78,796 | 799 | 505,294 | |||||||||||||||||||
| Depreciation and amortization | 170,611 | 68,836 | 642 | 240,089 | |||||||||||||||||||
Loss on foreign exchange |
— | — | 7,815 | 7,815 | |||||||||||||||||||
| Operating income (loss) | 232,778 | 11,941 | (8,531) | 236,188 | |||||||||||||||||||
| Interest expense | (81,202) | (31,315) | (59,064) | (171,581) | |||||||||||||||||||
Income (loss) from long-term investments and other income |
19,660 | 52,584 | (129,928) | (57,684) | |||||||||||||||||||
| Other expenses | (45,259) | (1,197) | (4,435) | (50,891) | |||||||||||||||||||
| Earnings (loss) before income taxes | $ | 125,977 | $ | 32,013 | $ | (201,958) | $ | (43,968) | |||||||||||||||
Capital expenditures (4) |
372,886 | 42,072 | — | 414,958 | |||||||||||||||||||
| December 31, 2023 | |||||||||||||||||||||||
| Property, plant and equipment | $ | 8,945,637 | $ | 3,539,069 | $ | 32,744 | $ | 12,517,450 | |||||||||||||||
| Investments carried at fair value | 1,962 | 1,113,767 | — | 1,115,729 | |||||||||||||||||||
| Equity-method investees | 112,180 | 343,712 | 501 | 456,393 | |||||||||||||||||||
| Total assets | 12,658,955 | 5,367,011 | 347,995 | 18,373,961 | |||||||||||||||||||
| Algonquin Power & Utilities Corp. | ||
Notes to the Unaudited Interim Condensed Consolidated Financial Statements | ||
| June 30, 2024 and 2023 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Revenue | |||||||||||||||||||||||
| United States | $ | 467,747 | $ | 503,777 | $ | 1,069,326 | $ | 1,144,201 | |||||||||||||||
| Canada | 37,391 | 37,788 | 87,886 | 90,916 | |||||||||||||||||||
| Other regions | 93,488 | 86,306 | 178,514 | 171,381 | |||||||||||||||||||
| $ | 598,626 | $ | 627,871 | $ | 1,335,726 | $ | 1,406,498 | ||||||||||||||||
| Algonquin Power & Utilities Corp. | ||
Notes to the Unaudited Interim Condensed Consolidated Financial Statements | ||
| June 30, 2024 and 2023 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Thereafter | Total | |||||||||||||||||
Power purchase (1) |
$ | 60,458 | $ | 25,890 | $ | 12,434 | $ | 12,680 | $ | 12,894 | $ | 123,350 | $ | 247,706 | |||||||||
Natural gas supply and service agreements (2) |
97,983 | 71,485 | 51,892 | 45,828 | 40,147 | 198,234 | 505,569 | ||||||||||||||||
| Service agreements | 75,445 | 64,981 | 54,811 | 56,233 | 54,407 | 248,746 | 554,623 | ||||||||||||||||
| Capital projects | 4,399 | — | — | — | — | — | 4,399 | ||||||||||||||||
| Land easements and others | 16,330 | 16,725 | 16,984 | 17,170 | 17,420 | 597,528 | 682,157 | ||||||||||||||||
| Total | $ | 254,615 | $ | 179,081 | $ | 136,121 | $ | 131,911 | $ | 124,868 | $ | 1,167,858 | $ | 1,994,454 | |||||||||
| Three months ended | Six months ended | ||||||||||||||||||||||
| June 30 | June 30 | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Accounts receivable | $ | 107,205 | $ | 21,450 | $ | 97,316 | $ | 35,213 | |||||||||||||||
| Fuel and natural gas in storage | (3,344) | (12,837) | (715) | 19,657 | |||||||||||||||||||
| Supplies and consumables inventory | (1,128) | (11,678) | (8,631) | (22,454) | |||||||||||||||||||
| Income taxes recoverable | 1,872 | 5,134 | 3,963 | 5,683 | |||||||||||||||||||
| Prepaid expenses | 21,102 | 13,231 | 18,770 | 6,183 | |||||||||||||||||||
Accounts payable, accrued liabilities and other |
(31,106) | 92,826 | (60,310) | (110,147) | |||||||||||||||||||
| Current income tax liability | 3,603 | (1,039) | 3,603 | 2,563 | |||||||||||||||||||
| Net regulatory assets and liabilities | (27,651) | 5,293 | (37,986) | 9,946 | |||||||||||||||||||
| $ | 70,553 | $ | 112,380 | $ | 16,010 | $ | (53,356) | ||||||||||||||||
| Algonquin Power & Utilities Corp. | ||
Notes to the Unaudited Interim Condensed Consolidated Financial Statements | ||
| June 30, 2024 and 2023 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| June 30, 2024 | Carrying amount |
Fair value |
Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
| Long-term investments carried at fair value | $ | 1,128,171 | $ | 1,128,171 | $ | 1,076,642 | $ | — | $ | 51,529 | |||||||||||||||||||
| Development loans and other receivables | 31,479 | 43,491 | — | 43,491 | — | ||||||||||||||||||||||||
| Derivative instruments: | |||||||||||||||||||||||||||||
| Interest rate swaps designated as a hedge | 95,723 | 95,723 | — | 95,723 | — | ||||||||||||||||||||||||
| Congestion revenue rights not designated as hedge | 10,971 | 10,971 | — | — | 10,971 | ||||||||||||||||||||||||
| Cross-currency swap designated as a net investment hedge | 10,064 | 10,064 | — | 10,064 | — | ||||||||||||||||||||||||
| Commodity contracts for regulatory operations | 75 | 75 | — | 75 | — | ||||||||||||||||||||||||
| Total derivative instruments | 116,833 | 116,833 | — | 105,862 | 10,971 | ||||||||||||||||||||||||
| Total financial assets | $ | 1,276,483 | $ | 1,288,495 | $ | 1,076,642 | $ | 149,353 | $ | 62,500 | |||||||||||||||||||
| Long-term debt | $ | 8,292,649 | $ | 8,783,756 | $ | 2,223,829 | $ | 6,559,927 | $ | — | |||||||||||||||||||
| Convertible debentures | 229 | 262 | 262 | — | — | ||||||||||||||||||||||||
| Derivative instruments: | |||||||||||||||||||||||||||||
| Energy contracts designated as a cash flow hedge | 85,630 | 85,630 | — | — | 85,630 | ||||||||||||||||||||||||
| Energy contracts not designated as hedge | 6,505 | 6,505 | — | — | 6,505 | ||||||||||||||||||||||||
| Cross-currency swap designated as a net investment hedge | 23,203 | 23,203 | — | 23,203 | — | ||||||||||||||||||||||||
| Cross-currency swap designated as a cash flow hedge | 13,783 | 13,783 | — | 13,783 | — | ||||||||||||||||||||||||
| Commodity contracts for regulated operations | 936 | 936 | — | 936 | — | ||||||||||||||||||||||||
| Total derivative instruments | 130,057 | 130,057 | — | 37,922 | 92,135 | ||||||||||||||||||||||||
| Total financial liabilities | $ | 8,422,935 | $ | 8,914,075 | $ | 2,224,091 | $ | 6,597,849 | $ | 92,135 | |||||||||||||||||||
| Algonquin Power & Utilities Corp. | ||
Notes to the Unaudited Interim Condensed Consolidated Financial Statements | ||
| June 30, 2024 and 2023 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| December 31, 2023 | Carrying amount |
Fair value |
Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
| Long-term investments carried at fair value | $ | 1,115,729 | $ | 1,115,729 | $ | 1,054,665 | $ | — | $ | 61,064 | |||||||||||||||||||
| Development loans and other receivables | 158,110 | 155,735 | — | 155,735 | — | ||||||||||||||||||||||||
| Derivative instruments: | |||||||||||||||||||||||||||||
| Interest rate swap designated as a hedge | 72,936 | 72,936 | — | 72,936 | — | ||||||||||||||||||||||||
Interest rate cap not designated as a hedge |
1,854 | 1,854 | — | 1,854 | — | ||||||||||||||||||||||||
| Congestion revenue rights not designated as hedge |
8,458 | 8,458 | — | — | 8,458 | ||||||||||||||||||||||||
| Total derivative instruments | 83,248 | 83,248 | — | 74,790 | 8,458 | ||||||||||||||||||||||||
| Total financial assets | $ | 1,357,087 | $ | 1,354,712 | $ | 1,054,665 | $ | 230,525 | $ | 69,522 | |||||||||||||||||||
| Long-term debt | $ | 8,516,030 | $ | 7,423,318 | $ | 2,532,608 | $ | 4,890,710 | $ | — | |||||||||||||||||||
| Notes payable to related party | 25,808 | 15,320 | — | 15,320 | — | ||||||||||||||||||||||||
| Convertible debentures | 230 | 276 | 276 | — | — | ||||||||||||||||||||||||
| Derivative instruments: | |||||||||||||||||||||||||||||
| Energy contracts designated as a cash flow hedge | 68,070 | 68,070 | — | — | 68,070 | ||||||||||||||||||||||||
| Energy contracts not designated as hedge | 5,593 | 5,593 | — | — | 5,593 | ||||||||||||||||||||||||
| Cross-currency swap designated as a net investment hedge | 10,533 | 10,533 | — | 10,533 | — | ||||||||||||||||||||||||
| Currency forward contract designated as hedge | 6,779 | 6,779 | — | 6,779 | — | ||||||||||||||||||||||||
| Interest rate swaps designated as a hedge | 11,790 | 11,790 | — | 11,790 | — | ||||||||||||||||||||||||
| Cross-currency swap designated as a cash flow hedge | 5,547 | 5,547 | — | 5,547 | — | ||||||||||||||||||||||||
| Commodity contracts for regulated operations | 2,564 | 2,564 | — | 2,564 | — | ||||||||||||||||||||||||
| Total derivative instruments | 110,876 | 110,876 | — | 37,213 | 73,663 | ||||||||||||||||||||||||
| Total financial liabilities | $ | 8,652,944 | $ | 7,549,790 | $ | 2,532,884 | $ | 4,943,243 | $ | 73,663 | |||||||||||||||||||
| Algonquin Power & Utilities Corp. | ||
Notes to the Unaudited Interim Condensed Consolidated Financial Statements | ||
| June 30, 2024 and 2023 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| Algonquin Power & Utilities Corp. | ||
Notes to the Unaudited Interim Condensed Consolidated Financial Statements | ||
| June 30, 2024 and 2023 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| Notional quantity (MW-hrs) |
Expiry | Receive average prices (per MW-hr) |
Pay floating price (per MW-hr) |
|||||||||||||||||
| 3,245,679 | September 2030 | $24.54 | Illinois Hub | |||||||||||||||||
| 287,686 | December 2028 | $29.14 | PJM Western HUB | |||||||||||||||||
| 1,220,001 | December 2027 | $21.31 | NI HUB | |||||||||||||||||
| 1,137,027 | December 2027 | $36.46 | ERCORT North HUB | |||||||||||||||||
| Derivative | Notional quantity |
Expiry |
Hedged item |
||||||||
Forward-starting interest rate swap |
$ | 350,000 | July 2029 |
$350,000 subordinated unsecured notes |
|||||||
Cross-currency interest rate swap |
C$ | 400,000 | January 2032 |
C$400,000 subordinated unsecured notes |
|||||||
Forward-starting interest rate swap |
$ | 750,000 | April 2032 |
$750,000 subordinated unsecured notes |
|||||||
| Forward-starting interest rate swap | $ | 575,000 | June 2026 | First $575,000 of the $1,150,000 senior unsecured notes issuance |
|||||||
| Algonquin Power & Utilities Corp. | ||
Notes to the Unaudited Interim Condensed Consolidated Financial Statements | ||
| June 30, 2024 and 2023 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| Three months ended | Six months ended | ||||||||||||||||||||||
| June 30 | June 30 | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Effective portion of cash flow hedge | $ | 29,771 | $ | 29,949 | $ | 45,698 | $ | 52,435 | |||||||||||||||
| Amortization of cash flow hedge | (539) | (1,421) | (1,078) | (4,908) | |||||||||||||||||||
| Amounts reclassified from AOCI | (42) | 7,893 | (5,968) | 6,759 | |||||||||||||||||||
| OCI attributable to shareholders of AQN | $ | 29,190 | $ | 36,421 | $ | 38,652 | $ | 54,286 | |||||||||||||||
| Algonquin Power & Utilities Corp. | ||
Notes to the Unaudited Interim Condensed Consolidated Financial Statements | ||
| June 30, 2024 and 2023 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| Algonquin Power & Utilities Corp. | ||
Notes to the Unaudited Interim Condensed Consolidated Financial Statements | ||
| June 30, 2024 and 2023 | ||
| (in thousands of U.S. dollars, except as noted and per share amounts) | ||
| Three months ended | Six months ended | |||||||||||||||||||
| June 30 | June 30 | |||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||||||
| Unrealized gain (loss) on derivative financial instruments: | ||||||||||||||||||||
| Energy derivative contracts | $ | 1,843 | 84 | $ | 1,147 | $ | 62 | |||||||||||||
| Commodity contracts | — | — | (890) | 1,128 | ||||||||||||||||
| $ | 1,843 | $ | 84 | $ | 257 | $ | 1,190 | |||||||||||||
Realized loss on derivative financial instruments: |
||||||||||||||||||||
| Energy derivative contracts | (1,887) | (1,537) | (1,783) | (3,830) | ||||||||||||||||
| $ | (1,887) | $ | (1,537) | $ | (1,783) | $ | (3,830) | |||||||||||||
| Loss on derivative financial instruments not accounted for as hedges | (44) | (1,453) | (1,526) | (2,640) | ||||||||||||||||
| Amortization of AOCI gains frozen as a result of hedge dedesignation | 17 | 997 | 999 | 1,994 | ||||||||||||||||
| $ | (27) | $ | (456) | $ | (527) | $ | (646) | |||||||||||||
Unaudited interim condensed consolidated statements of operations classification: |
||||||||||||||||||||
| Gain on derivative financial instruments | $ | 58 | $ | 1,039 | $ | 191 | $ | 3,205 | ||||||||||||
Renewable energy sales |
(85) | (1,495) | (718) | (3,851) | ||||||||||||||||
| $ | (27) | $ | (456) | $ | (527) | $ | (646) | |||||||||||||
Management Discussion & Analysis | Explanatory Notes | |||||
| Caution Concerning Forward-Looking Statements and Forward-Looking Information | |||||
| Caution Concerning Non-GAAP Measures | |||||
| Overview and Business Strategy | |||||
| Significant Updates | |||||
2024 Second Quarter Results From Operations |
|||||
2024 Year-to-Date Results From Operations |
|||||
2024 Second Quarter and Year-to-Date Net Earnings Summary |
|||||
2024 Second Quarter and Year-to-Date Adjusted EBITDA Summary |
|||||
| Regulated Services Group | |||||
| Renewable Energy Group | |||||
| AQN: Corporate and Other Expenses | |||||
| Non-GAAP Financial Measures | |||||
| Summary of Property, Plant and Equipment Expenditures | |||||
| Liquidity and Capital Reserves | |||||
| Share-Based Compensation Plans | |||||
| Related Party Transactions | |||||
| Enterprise Risk Management | |||||
| Quarterly Financial Information | |||||
| Disclosure Controls and Procedures | |||||
| Critical Accounting Estimates and Policies | |||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 1 |
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| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 2 |
||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 3 |
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| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | |||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 5 |
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| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | |||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 7 |
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| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | |||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | |||||
| (all dollar amounts in $ millions except per share information) | Three months ended June 30 |
||||||||||||||||
| 2024 | 2023 | Change | |||||||||||||||
| Net earnings (loss) attributable to shareholders | $200.8 | $(253.2) | 179% | ||||||||||||||
Adjusted Net Earnings1 |
$65.2 | $56.2 | 16% | ||||||||||||||
Adjusted EBITDA1 |
$311.0 | $277.7 | 12% | ||||||||||||||
| Net earnings (loss) per common share | $0.28 | $(0.37) | 176% | ||||||||||||||
Adjusted Net Earnings per common share1 |
$0.09 | $0.08 | 13% | ||||||||||||||
| 1 | See Caution Concerning Non-GAAP Measures. |
||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 10 |
||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | |||||
Key Financial Information |
Three months ended June 30 | ||||||||||
| (all dollar amounts in $ millions except per share information) | 2024 | 2023 | |||||||||
| Revenue | $ | 598.6 | $ | 627.9 | |||||||
| Net earnings (loss) attributable to shareholders | 200.8 | (253.2) | |||||||||
| Cash provided by operating activities | 236.2 | 261.4 | |||||||||
Adjusted Net Earnings1 |
65.2 | 56.2 | |||||||||
Adjusted EBITDA1 |
311.0 | 277.7 | |||||||||
Adjusted Funds from Operations1 |
167.9 | 150.2 | |||||||||
| Dividends declared to common shareholders | 83.7 | 75.4 | |||||||||
| Weighted average number of common shares outstanding | 701,593,792 | 687,847,010 | |||||||||
| Per share | |||||||||||
| Basic net earnings (loss) | $ | 0.28 | $ | (0.37) | |||||||
| Diluted net earnings (loss) | $ | 0.28 | $ | (0.37) | |||||||
Adjusted Net Earnings1 |
$ | 0.09 | $ | 0.08 | |||||||
| Dividends declared to common shareholders | $ | 0.11 | $ | 0.11 | |||||||
| 1 | See Caution Concerning Non-GAAP Measures. |
||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 12 |
||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | |||||
| (all dollar amounts in $ millions) | Three months ended June 30 | ||||
| Comparative Prior Period Revenue | $ | 627.9 | |||
| REGULATED SERVICES GROUP | |||||
| Existing Facilities | |||||
Electricity: Decrease is primarily due to lower pass through costs. This is partially offset by higher revenues at the Empire Electric System (MO) to recover previously incurred costs that resulted from the extreme winter storm conditions experienced in Texas and parts of the central U.S. in the first quarter of 2021 and the retirement of the Asbury generating plant. |
(4.4) | ||||
Natural Gas: Decrease is primarily due to lower pass through commodity costs. |
(17.9) | ||||
Water: |
(1.3) | ||||
Other: |
0.3 | ||||
| (23.3) | |||||
| Rate Reviews | |||||
Electricity: Decrease is primarily due to one-time revenues in the second quarter of 2023 from a retroactive rate increase at the CalPeco (CA) Electric System. This is partially offset by the implementation of new rates at the Bermuda Electric Light Company ("BELCO") Electric System retroactive to the first quarter of 2024 as well as the implementation of new rates at the CalPeco (CA), Empire (AR), and Granite State (NH) Electric Systems. |
(18.4) | ||||
|
Natural Gas: Increase is primarily due to the implementation of new rates at the EnergyNorth (NH), and Peach State (GA) Gas Systems.
|
2.6 | ||||
Water: Increase is primarily due to the implementation of new rates at the Pine Bluff (AR) and Park (CA) Water Systems. |
1.6 | ||||
| (14.2) | |||||
| Foreign Exchange | (3.6) | ||||
| RENEWABLE ENERGY GROUP | |||||
| Existing Facilities | |||||
Hydro: |
(0.2) | ||||
Wind CA: Increase is primarily driven by higher production across the majority of the Canadian wind facilities. |
3.2 | ||||
Wind U.S.: Increase is primarily due to higher production across all U.S. wind facilities. |
4.4 | ||||
Solar: |
0.8 | ||||
Thermal & Renewable Natural Gas: Decrease is primarily due to the sale of the Windsor Locks Thermal Facility as of March 1, 2024. |
(5.6) | ||||
Other: Increase is primarily due to non-recurring fees earned on development work performed for the Cedar 1 Solar Project which was sold to Atlantica on April 9, 2024. |
4.9 | ||||
| 7.5 | |||||
| New Facilities | |||||
Wind U.S: Increase is primarily driven by the Deerfield II Wind Facility and Sandy Ridge II Wind Facility. |
5.0 | ||||
| 5.0 | |||||
| Foreign Exchange | (0.7) | ||||
| Current Period Revenue | $ | 598.6 | |||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | |||||
Key Financial Information |
Six months ended June 30 | ||||||||||
| (all dollar amounts in $ millions except per share information) | 2024 | 2023 | |||||||||
| Revenue | $ | 1,335.7 | $ | 1,406.5 | |||||||
Net earnings attributable to shareholders |
111.6 | 16.9 | |||||||||
| Cash provided by operating activities | 366.9 | 294.7 | |||||||||
Adjusted Net Earnings1 |
160.6 | 176.0 | |||||||||
Adjusted EBITDA1 |
655.2 | 618.7 | |||||||||
Adjusted Funds from Operations1 |
357.2 | 358.4 | |||||||||
| Dividends declared to common shareholders | 159.2 | 150.8 | |||||||||
| Weighted average number of common shares outstanding | 695,700,444 | 688,277,615 | |||||||||
| Per share | |||||||||||
Basic net earnings |
$ | 0.15 | $ | 0.02 | |||||||
Diluted net earnings |
$ | 0.15 | $ | 0.02 | |||||||
Adjusted Net Earnings1 |
$ | 0.22 | $ | 0.25 | |||||||
| Dividends declared to common shareholders | $ | 0.22 | $ | 0.22 | |||||||
| 1 | See Caution Concerning Non-GAAP Measures. |
||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 15 |
||||
| (all dollar amounts in $ millions) | Six months ended June 30 | ||||
| Comparative Prior Period Revenue | $ | 1,406.5 | |||
| REGULATED SERVICES GROUP | |||||
| Existing Facilities | |||||
Electricity: Decrease is primarily due to lower pass through commodity costs. |
(25.2) | ||||
Natural Gas: Decrease is primarily due to lower pass through commodity costs. |
(58.3) | ||||
Water: Increase is primarily due to higher consumption at the Suralis (Chile) Water System. |
1.3 | ||||
Other: Decrease is primarily due to lower activity in the non-regulated business in Bermuda. |
(4.2) | ||||
| (86.4) | |||||
| Rate Reviews | |||||
Electricity: Decrease is primarily due to one-time revenues in the second quarter of 2023 from a retroactive rate increase at the CalPeco (CA) Electric System. This is partially offset by the implementation of new rates at the BELCO, CalPeco (CA) Empire (AR), and Granite State (NH) Electric Systems. |
(5.1) | ||||
|
Natural Gas: Increase is primarily due to the implementation of new rates at the EnergyNorth (NH), St. Lawrence (NY) and Peach State Gas Systems.
|
5.7 | ||||
Water: |
0.4 | ||||
| 1.0 | |||||
| Foreign Exchange | (7.3) | ||||
| RENEWABLE ENERGY GROUP | |||||
| Existing Facilities | |||||
Hydro: |
— | ||||
Wind CA: Increase is primarily driven by higher production across the majority of the Canadian wind facilities. |
3.6 | ||||
Wind U.S.: Increase is primarily due to higher production across the majority of the U.S. wind facilities. |
6.2 | ||||
Solar: Increase is primarily driven by favourable REC revenue for the Great Bay I and Great Bay II Solar Facilities. |
4.5 | ||||
Thermal & Renewable Natural Gas: Decrease is primarily due to the sale of the Windsor Locks Thermal Facility as of March 1, 2024. |
(9.0) | ||||
|
Other: Increase is primarily due to non-recurring fees earned on development work performed for the Cedar 1 Solar Project which was sold to Atlantica on April 9, 2024.
|
6.1 | ||||
| 11.4 | |||||
| New Facilities | |||||
Wind U.S: Increase is primarily driven by the Deerfield II Wind Facility and Sandy Ridge II Wind Facility. |
11.0 | ||||
| 11.0 | |||||
| Foreign Exchange | (0.5) | ||||
| Current Period Revenue | $ | 1,335.7 | |||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | |||||
| Change in net earnings (loss) attributable to shareholders | Three months ended | Six months ended | |||||||||||||||
| June 30 | June 30 | ||||||||||||||||
| (all dollar amounts in $ millions) | 2024 | 2024 | |||||||||||||||
| Net earnings attributable to shareholders – Prior Period Balance | $ | (253.2) | $ | 16.9 | |||||||||||||
Adjusted EBITDA1 |
33.3 | 36.5 | |||||||||||||||
| Net earnings attributable to the non-controlling interest, exclusive of HLBV | 8.7 | 13.7 | |||||||||||||||
Income tax expense |
(50.8) | (14.8) | |||||||||||||||
| Interest expense | (16.1) | (36.7) | |||||||||||||||
| Other net losses | 23.3 | 16.1 | |||||||||||||||
| Unrealized loss on energy derivatives included in revenue | (12.7) | (23.4) | |||||||||||||||
| HLBV prior period adjustment within equity income | — | (8.5) | |||||||||||||||
| Pension and post-employment non-service costs | 1.3 | 2.9 | |||||||||||||||
| Change in value of investments carried at fair value | 484.3 | 146.6 | |||||||||||||||
| Gain on derivative financial instruments | (0.9) | (3.0) | |||||||||||||||
| Foreign exchange | 2.1 | (8.3) | |||||||||||||||
| Depreciation and amortization | (18.5) | (26.4) | |||||||||||||||
| Net loss attributable to shareholders – Current Period Balance | $ | 200.8 | $ | 111.6 | |||||||||||||
Change in Net Earnings ($) |
$ | 454.0 | $ | 94.7 | |||||||||||||
Change in Net Earnings (%) |
179.3 | % | 560.4 | % | |||||||||||||
| 1 | See Caution Concerning Non-GAAP Measures. |
||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 17 |
||||
| Three months ended | Six months ended | ||||||||||||||||||||||
Adjusted EBITDA1 by business units |
June 30 | June 30 | |||||||||||||||||||||
| (all dollar amounts in $ millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Divisional Operating Profit for Regulated Services Group1 |
$ | 212.8 | $ | 199.4 | $ | 469.7 | $ | 445.2 | |||||||||||||||
Divisional Operating Profit for Renewable Energy Group1 |
99.7 | 76.2 | 186.9 | 171.4 | |||||||||||||||||||
| Other Income & Expenses | (1.5) | 2.1 | (1.4) | 2.1 | |||||||||||||||||||
Total AQN Adjusted EBITDA1 |
$ | 311.0 | $ | 277.7 | $ | 655.2 | $ | 618.7 | |||||||||||||||
Change in Adjusted EBITDA1 ($) |
$ | 33.3 | $ | 36.5 | |||||||||||||||||||
Change in Adjusted EBITDA1 (%) |
12.0 | % | 5.9 | % | |||||||||||||||||||
Change in Adjusted EBITDA1 Breakdown |
Three months ended June 30, 2024 | |||||||||||||
| (all dollar amounts in $ millions) | Regulated Services | Renewable Energy | Corporate | Total | ||||||||||
| Prior period balances | $ | 199.4 | $ | 76.2 | $ | 2.1 | $ | 277.7 | ||||||
| Existing Facilities and Investments | 3.7 | 17.5 | (3.6) | 17.6 | ||||||||||
| New Facilities and Investments | — | 5.1 | — | 5.1 | ||||||||||
Rate Reviews |
10.1 | — | — | 10.1 | ||||||||||
| Foreign Exchange Impact | (0.4) | 0.9 | — | 0.5 | ||||||||||
| Total change during the period | $ | 13.4 | $ | 23.5 | $ | (3.6) | $ | 33.3 | ||||||
| Current period balances | $ | 212.8 | $ | 99.7 | $ | (1.5) | $ | 311.0 | ||||||
Change in Adjusted EBITDA1 Breakdown |
Six months ended June 30, 2024 | |||||||||||||
| (all dollar amounts in $ millions) | Regulated Services | Renewable Energy | Corporate | Total | ||||||||||
| Prior period balances | $ | 445.2 | $ | 171.4 | $ | 2.1 | $ | 618.7 | ||||||
| Existing Facilities and Investments | 5.8 | 3.4 | (3.5) | 5.7 | ||||||||||
| New Facilities and Investments | — | 10.9 | — | 10.9 | ||||||||||
| Rate Reviews | 20.9 | — | — | 20.9 | ||||||||||
| Foreign Exchange Impact | (2.2) | 1.2 | — | (1.0) | ||||||||||
| Total change during the period | $ | 24.5 | $ | 15.5 | $ | (3.5) | $ | 36.5 | ||||||
| Current period balances | $ | 469.7 | $ | 186.9 | $ | (1.4) | $ | 655.2 | ||||||
| 1 | See Caution Concerning Non-GAAP Measures. |
||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 18 |
||||
| Utility System Type | As at June 30 | ||||||||||||||||||||||
| 2024 | 2023 | ||||||||||||||||||||||
| (all dollar amounts in $ millions) | Assets | Net Utility Sales1 |
Total Customer Connections2 |
Assets | Net Utility Sales1 |
Total Customer Connections2 |
|||||||||||||||||
| Electricity | 5,352.3 | 430.5 | 310,000 | 5,056.9 | 420.3 | 309,000 | |||||||||||||||||
| Natural Gas | 1,866.2 | 209.3 | 376,000 | 1,741.1 | 206.8 | 376,000 | |||||||||||||||||
| Water and Wastewater | 1,692.1 | 169.6 | 574,000 | 1,645.9 | 175.6 | 573,000 | |||||||||||||||||
| Other | 140.8 | 25.7 | 313.6 | 26.4 | |||||||||||||||||||
| Total | $ | 9,051.4 | $ | 835.1 | 1,260,000 | $ | 8,757.5 | $ | 829.1 | 1,258,000 | |||||||||||||
| Accumulated Deferred Income Taxes Liability | $ | 782.4 | $ | 722.3 | |||||||||||||||||||
| 1 | Net Utility Sales for the six months ended June 30, 2024 and 2023. See Caution Concerning Non-GAAP Measures. |
||||
| 2 | Total Customer Connections represents the sum of all active and vacant customer connections. | ||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 19 |
||||
| Electric Distribution Systems | Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Average Active Electric Customer Connections For The Period | |||||||||||||||||||||||
Residential |
263,500 | 262,700 | 263,300 | 262,500 | |||||||||||||||||||
| Commercial and industrial | 43,000 | 42,700 | 43,000 | 42,600 | |||||||||||||||||||
| Total Average Active Electric Customer Connections For The Period | 306,500 | 305,400 | 306,300 | 305,100 | |||||||||||||||||||
| Customer Usage (GW-hrs) | |||||||||||||||||||||||
| Residential | 586.9 | 574.1 | 1,383.6 | 1,329.2 | |||||||||||||||||||
| Commercial and industrial | 900.3 | 918.9 | 1,844.0 | 1,842.3 | |||||||||||||||||||
| Total Customer Usage (GW-hrs) | 1,487.2 | 1,493.0 | 3,227.6 | 3,171.5 | |||||||||||||||||||
| Natural Gas Distribution Systems | Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Average Active Natural Gas Customer Connections For The Period | |||||||||||||||||||||||
| Residential | 323,300 | 321,700 | 324,100 | 322,800 | |||||||||||||||||||
| Commercial and industrial | 40,000 | 39,900 | 40,100 | 40,000 | |||||||||||||||||||
| Total Average Active Natural Gas Customer Connections For The Period | 363,300 | 361,600 | 364,200 | 362,800 | |||||||||||||||||||
| Customer Usage (MMBTU) | |||||||||||||||||||||||
| Residential | 3,393,000 | 3,184,000 | 13,667,000 | 13,215,000 | |||||||||||||||||||
| Commercial and industrial | 4,018,000 | 4,196,000 | 12,736,000 | 12,910,000 | |||||||||||||||||||
| Total Customer Usage (MMBTU) | 7,411,000 | 7,380,000 | 26,403,000 | 26,125,000 | |||||||||||||||||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 20 |
||||
| Water and Wastewater Distribution Systems | Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Average Active Customer Connections For The Period | |||||||||||||||||||||||
| Wastewater customer connections | 55,700 | 55,700 | 55,500 | 55,400 | |||||||||||||||||||
| Water distribution customer connections | 509,700 | 504,900 | 504,800 | 503,800 | |||||||||||||||||||
| Total Average Active Customer Connections For The Period | 565,400 | 560,600 | 560,300 | 559,200 | |||||||||||||||||||
| Gallons Provided (millions of gallons) | |||||||||||||||||||||||
| Wastewater treated | 918 | 873 | 1,850 | 1,761 | |||||||||||||||||||
| Water provided | 9,243 | 9,712 | 18,073 | 18,219 | |||||||||||||||||||
| Total Gallons Provided (millions of gallons) | 10,161 | 10,585 | 19,923 | 19,980 | |||||||||||||||||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | |||||
| Three months ended | Six months ended | ||||||||||||||||||||||
| June 30 | June 30 | ||||||||||||||||||||||
| (all dollar amounts in $ millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
| Revenue | |||||||||||||||||||||||
| Regulated electricity distribution | $ | 304.3 | $ | 328.2 | $ | 610.1 | $ | 644.2 | |||||||||||||||
| Less: Regulated electricity purchased | (81.7) | (98.3) | (179.6) | (223.9) | |||||||||||||||||||
Net Utility Sales – electricity1 |
222.6 | 229.9 | 430.5 | 420.3 | |||||||||||||||||||
| Regulated gas distribution | 94.2 | 109.5 | 328.2 | 380.7 | |||||||||||||||||||
| Less: Regulated gas purchased | (22.9) | (36.2) | (118.9) | (173.9) | |||||||||||||||||||
|
Net Utility Sales – natural gas1
|
71.3 | 73.3 | 209.3 | 206.8 | |||||||||||||||||||
| Regulated water reclamation and distribution | 92.8 | 95.9 | 177.8 | 183.3 | |||||||||||||||||||
| Less: Regulated water purchased | (4.3) | (3.8) | (8.2) | (7.7) | |||||||||||||||||||
Net Utility Sales – water reclamation and distribution1 |
88.5 | 92.1 | 169.6 | 175.6 | |||||||||||||||||||
Other revenue2 |
13.9 | 12.8 | 25.7 | 26.4 | |||||||||||||||||||
Net Utility Sales1,3 |
396.3 | 408.1 | 835.1 | 829.1 | |||||||||||||||||||
| Operating expenses | (215.7) | (228.8) | (423.2) | (425.7) | |||||||||||||||||||
Income from long-term investments |
7.5 | 9.3 | 15.4 | 19.7 | |||||||||||||||||||
HLBV4 |
24.7 | 10.8 | 42.4 | 22.1 | |||||||||||||||||||
Divisional Operating Profit1,5 |
$ | 212.8 | $ | 199.4 | $ | 469.7 | $ | 445.2 | |||||||||||||||
| 1 | See Caution Concerning Non-GAAP Measures. |
||||
| 2 | See Note 18 in the unaudited interim condensed consolidated financial statements. |
||||
| 3 | This table contains a reconciliation of Net Utility Sales to revenue. The relevant sections of the table are derived from and should be read in conjunction with the unaudited interim condensed consolidated statement of operations and Note 18 in the unaudited interim condensed consolidated financial statements, "Segmented Information". This supplementary disclosure is intended to more fully explain disclosures related to Net Utility Sales and provides additional information related to the operating performance of the Regulated Services Group. Investors are cautioned that Net Utility Sales should not be construed as an alternative to revenue. |
||||
| 4 | HLBV income represents the value of net tax attributes monetized by the Regulated Services Group in the period at the Luning and Turquoise Solar Facilities and the Neosho Ridge, Kings Point and North Fork Ridge Wind Facilities. |
||||
| 5 | This table contains a reconciliation of Divisional Operating Profit to revenue for the Regulated Services Group. The relevant sections of the table are derived from and should be read in conjunction with the unaudited interim condensed consolidated statement of operations and Note 18 in the unaudited interim condensed consolidated financial statements, "Segmented Information". This supplementary disclosure is intended to more fully explain disclosures related to Divisional Operating Profit and provides additional information related to the operating performance of the Regulated Services Group. Investors are cautioned that Divisional Operating Profit should not be construed as an alternative to revenue. |
||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 22 |
||||
| (all dollar amounts in $ millions) | Three months ended June 30 | ||||
Prior Period Divisional Operating Profit1 |
$ | 199.4 | |||
| Existing Facilities | |||||
Electricity: Increase is primarily due to higher HLBV income of approximately $13.8 million at the Empire Electric System (MO, KS, AR, OK) as a result of normalized wind resources. |
17.9 | ||||
Natural Gas: Decrease is primarily due to higher operating expenses across the majority of gas systems, including approximately $3.0 million related to a one-time bad debt expense and approximately $3.6 million of one-time revenues recorded in the second quarter of 2023. |
(11.8) | ||||
Water: Decrease is primarily related to higher operating expenses at the majority of water and sewer systems. |
(3.1) | ||||
Other: |
0.7 | ||||
| 3.7 | |||||
| Rate Reviews | |||||
Electricity: Increase is primarily due to the implementation of new rates at the BELCO Electric System retroactive to the first quarter of 2024 as well as the implementation of new rates at the CalPeco (CA), Empire (AR), and Granite State (NH) Electric Systems. This is partially offset by approximately $11.2 million of one-time revenues in the second quarter of 2023 from a retroactive rate increase at the CalPeco (CA) Electric System. |
5.9 | ||||
Natural Gas: Increase is primarily due to the implementation of new rates at the EnergyNorth (NH), and Peach State (GA) Gas Systems. |
2.6 | ||||
Water: Increase is primarily due to the implementation of new rates at the Pine Bluff (AR) and Park (CA) Water Systems. |
1.6 | ||||
| 10.1 | |||||
| Foreign Exchange | (0.4) | ||||
Current Period Divisional Operating Profit1 |
$ | 212.8 | |||
| 1 | See Caution Concerning Non-GAAP Measures. |
||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 23 |
||||
| (all dollar amounts in $ millions) | Six months ended June 30 | ||||
Prior Period Divisional Operating Profit1 |
$ | 445.2 | |||
| Existing Facilities | |||||
Electricity: Increase is primarily due to higher HLBV income of approximately $13.8 million at the Empire Electric System (MO, KS, AR, OK) as a result of normalized wind resources. |
25.8 | ||||
Natural Gas: Decrease is primarily due to higher operating expenses across the majority of gas systems, including approximately $3.0 million related to a one-time bad debt expense and approximately $3.6 million of one-time revenues recorded in the second quarter of 2023. |
(13.5) | ||||
Water: Decrease is primarily related to higher operating expenses at the majority of water and sewer systems. |
(4.2) | ||||
Other: Decrease is primarily due to lower interest income on regulatory asset accounts primarily related to the Empire (MO) Electric System bond securitization. |
(2.3) | ||||
| 5.8 | |||||
| Rate Reviews | |||||
Electricity: Increase is primarily due to the implementation of new rates at the BELCO, CalPeco (CA) Empire (AR), and Granite State (NH) Electric Systems partially offset by one-time revenues in the second quarter of 2023 from a retroactive rate increase at the CalPeco (CA) Electric System. |
14.8 | ||||
|
Natural Gas: Increase is primarily due to the implementation of new rates at the EnergyNorth (NH), St. Lawrence (NY) and Peach State Gas Systems.
|
5.7 | ||||
Water: |
0.4 | ||||
| 20.9 | |||||
| Foreign Exchange | (2.2) | ||||
Current Period Divisional Operating Profit1 |
$ | 469.7 | |||
| 1 | See Caution Concerning Non-GAAP Measures. |
||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 24 |
||||
| Utility | Jurisdiction | Regulatory Proceeding Type | Rate Request (millions) |
Current Status | ||||||||||||||||
| Completed Rate Reviews | ||||||||||||||||||||
| BELCO | Bermuda | General Rate Case ("GRC") |
$34.8 | On September 30, 2021, filed its revenue allowance application in which it requested a $34.8 million increase for 2022 and a $6.1 million increase for 2023. On March 18, 2022, the Regulatory Authority ("RA") approved an annual increase of $22.8 million, for a revenue allowance of $224.1 million for 2022 and $226.2 million for 2023. The RA authorized a 7.16% rate of return, comprised of a 62% equity and an 8.92% return on equity ("ROE"). In April 2022, BELCO filed an appeal in the Supreme Court of Bermuda challenging the decisions made by the RA through the recent Retail Tariff Review. On February 23, 2024, the Bermuda Supreme Court issued an order denying the BELCO appeal. |
||||||||||||||||
| Empire Electric | Arkansas | GRC | $7.3 | On February 14, 2023, filed an application seeking an increase in revenues of $7.3 million based on an ROE of 10.25% and an equity ratio of 56% to be phased in over three years. On December 7, 2023, the Arkansas Public Service Commission issued an order approving the settlement agreement authorizing a revenue increase of $5.3 million. New rates became effective January 1, 2024. |
||||||||||||||||
| BELCO | Bermuda | GRC | $59.1 | On October 17, 2023, filed its revenue allowance application in which it requested a $59.1 million increase for 2024 and 2025 based on a weighted average cost of capital of 10.13%. On May 30, 2024, the RA issued a final order authorizing a revenue increase of $33.6 million for 2024 and 2025 based on a weighted average cost of capital of 7.79%. New base rates became effective August 1, 2024. |
||||||||||||||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 25 |
||||
| Utility | Jurisdiction | Regulatory Proceeding Type | Rate Request (millions) |
Current Status | ||||||||||||||||
| Pending Rate Reviews | ||||||||||||||||||||
| Granite State Electric | New Hampshire | GRC | $15.5 | On May 5, 2023, filed an application seeking a permanent increase in revenues of $15.5 million based on an ROE of 10.35% and an equity ratio of 55%. Temporary rates of $5.5 million were implemented on July 1, 2023. On December 13, 2023, the Department of Energy ("DOE") filed a motion seeking to dismiss the case. An evidentiary hearing was held on January 23, 2024. The case has been stayed by the New Hampshire Public Utilities Commission ("NHPUC") until May 15, 2024 so that it may contemplate the motion and the Company's third-party review of its financial information. On April 2, 2024 the NHPUC directed the Company to cooperate with the DOE and all other parties to develop a mutually-agreeable scope of work for the third-party report, to be filed with the NHPUC no later than April 15, 2024. Because there was not agreement on the scope of work, the Company filed the third-party report which concluded that the accounting information included in the rate filing provides a sufficient basis for determining the Company’s revenue requirement and that 2023 accounting data provides a sufficient basis for inclusion in the Company’s regulatory filings. On April 24, 2024, the Company filed an updated revenue requirement, seeking an increase in revenues of $14.7 million. On April 30, 2024, the NHPUC rejected the scope of the third-party report that was submitted, ordered an independent audit facilitated by the DOE with a procedural schedule for the next phase of the proceeding due no later than May 20, 2024, and deferred a ruling on the DOE motion to dismiss. The NHPUC extended the stay until September 16, 2024 to assess the issues that have been raised in the docket and called for a status report required by August 30, 2024. |
||||||||||||||||
| New York Water | New York | GRC | $39.7 | On May 4, 2023, filed an application seeking an increase in revenues of $39.7 million based on an ROE of 10% and an equity ratio of 50%. On May 31, 2024, the Staff of the Department of Public Service ("DPS Staff") and the Company filed a Joint Proposal resolving all contested issues. On July 16, 2024, an evidentiary hearing was held on the Joint Proposal. A final order is expected in the third quarter of 2024. |
||||||||||||||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | |||||
| Utility | Jurisdiction | Regulatory Proceeding Type | Rate Request (millions) |
Current Status | ||||||||||||||||
| EnergyNorth Gas | New Hampshire | GRC | $27.5 | On July 27, 2023, filed an application seeking an increase in revenues of $27.5 million based on an ROE of 10.35% and an equity ratio of 55%. Temporary rates of $8.7 million were approved by the Commission on October 31, 2023. The temporary rate increase is retroactive to October 1, 2023. On February 5, 2024, the Company requested that the NHPUC stay the case until April 12, 2024 so that the Company can provide the Commission with a third-party review of the financial information upon which the revenue requirement is predicated. On February 16, 2024, the DOE filed a motion seeking to dismiss the case. On March 14, 2024 the Commission issued an order staying the case until June 7, 2024, so that it may contemplate the motion and so that the Company can provide the NHPUC with a third-party review of the financial information within the rate application. On April 17, 2024, the Company filed a proposed scope for the third-party review. On June 4, 2024, a status conference was held. The NHPUC has not extended the stay or issued a revised procedural schedule for the case but on August 2, 2024 ordered the DOE to file a status update on or before August 16, 2024. |
||||||||||||||||
| Midstates Gas | Illinois | GRC | $5.3 | On December 20, 2023, filed an application seeking an increase in revenues of $5.3 million based on an ROE of 10.80% and an equity ratio of 54%. On April 24, 2024, Staff of the Illinois Commerce Commission ("ICC Staff") filed testimony recommending a $0.6 million rate decrease. On May 16, 2024, the Company filed updated rebuttal testimony revising its proposed revenue increase to $4.6 million. On June 20, 2024, ICC Staff filed its rebuttal testimony recommending a base rate revenue increase of $2.1 million, and the Company filed surrebuttal testimony revising its proposed revenue increase to $4.1 million. A hearing was held on June 27, 2024. On July 25, 2024, the ICC Staff filed a legal brief recommending an increase of $3.1 million. |
||||||||||||||||
| Rio Rico Water & Sewer, Bella Vista Water, Beardsley Water, Cordes Lakes Water | Arizona | GRC | $5.4 | On December 28, 2023, filed an application seeking an increase in revenues of $5.4 million based on an ROE of 10.95% and an equity ratio of 54%. On June 26, 2024, the Arizona Corporation Commission granted the Company's request to extend the procedural schedule by five months. |
||||||||||||||||
| Park Water | California | GRC | $9.3 | On January 2, 2024, filed an application seeking an increase in revenues of $9.3 million based on an ROE of 9.35% and an equity ratio of 57%. On July 24, 2024, the Public Advocates Office at the California Public Utilities Commission filed testimony recommending a $2.4 million decrease in revenues for 2025. |
||||||||||||||||
| Apple Valley Water | California | GRC | $3.1 | On January 2, 2024, filed an application seeking an increase in revenues of $3.1 million based on an ROE of 9.35% and an equity ratio of 57%. On July 24, 2024, the Public Advocates Office at the California Public Utilities Commission filed testimony recommending a $3.9 million decrease in revenues for 2025. |
||||||||||||||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | |||||
| Utility | Jurisdiction | Regulatory Proceeding Type | Rate Request (millions) |
Current Status | ||||||||||||||||
| Midstates Gas | Missouri | GRC | $13.2 | On February 9, 2024, filed an application seeking an increase in revenues of $13.2 million based on an ROE of 10.80% and an equity ratio of 52.92%. On July 18, 2024, the Staff of the Missouri Public Service Commission and Office of the Public Counsel ("OPC") filed direct testimony. Staff proposed a base revenue increase of $4.4 million based on a 50% equity ratio and 9.45% ROE. OPC recommended a 47.5% equity ratio and 9.50% ROE. Rebuttal testimony is due August 22, 2024. |
||||||||||||||||
| Missouri Water | Missouri | GRC | $8.1 | On March 13, 2024, filed an application seeking an increase in revenues of $8.1 million based on an ROE of 10.62% and an equity ratio of 52.6%. | ||||||||||||||||
| Arkansas Water | Arkansas | GRC | $2.3 | On March 14, 2024, filed an application seeking an increase in revenues of $2.3 million based on an ROE of 10.62% and an equity ratio of 52.5%. | ||||||||||||||||
New Brunswick Gas |
New Brunswick |
GRC |
$1.6 | On April 15, 2024, filed an application seeking an increase in revenues of $1.6 million based on an ROE of 9.80% and an equity ratio of 45%. |
||||||||||||||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | |||||
2024 Second Quarter and Year-to-Date Electricity Generation Performance | |||||||||||||||||||||||||||||||||||
Long-Term Average Resource1 |
Three months ended June 30 | Long-Term Average Resource1 |
Six months ended June 30 | ||||||||||||||||||||||||||||||||
| (Performance in GW-hrs sold) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||||||||||
| Hydro Facilities: | |||||||||||||||||||||||||||||||||||
| Maritime Region | 62.4 | 40.7 | 46.8 | 89.9 | 76.2 | 77.7 | |||||||||||||||||||||||||||||
| Quebec Region | 82.4 | 84.4 | 80.4 | 138.4 | 154.5 | 144.0 | |||||||||||||||||||||||||||||
| Ontario Region | 29.0 | 29.3 | 26.3 | 67.3 | 58.5 | 59.2 | |||||||||||||||||||||||||||||
| Western Region | 19.0 | 18.4 | 13.8 | 28.6 | 26.4 | 21.8 | |||||||||||||||||||||||||||||
| 192.8 | 172.8 | 167.3 | 324.2 | 315.6 | 302.7 | ||||||||||||||||||||||||||||||
| Canadian Wind Facilities: | |||||||||||||||||||||||||||||||||||
| St. Damase | 16.4 | 13.7 | 17.3 | 37.3 | 33.6 | 33.9 | |||||||||||||||||||||||||||||
| St. Leon | 99.5 | 110.8 | 78.8 | 220.9 | 212.2 | 188.2 | |||||||||||||||||||||||||||||
Red Lily2 |
20.8 | 23.7 | 17.6 | 44.0 | 45.7 | 39.0 | |||||||||||||||||||||||||||||
| Morse | 25.2 | 24.7 | 19.1 | 55.7 | 47.7 | 45.3 | |||||||||||||||||||||||||||||
| Amherst | 53.4 | 48.8 | 43.9 | 118.7 | 107.8 | 104.2 | |||||||||||||||||||||||||||||
Blue Hill3 |
160.2 | 122.6 | 103.2 | 348.4 | 217.7 | 255.4 | |||||||||||||||||||||||||||||
EBR4 |
18.0 | 15.6 | 15.2 | 37.8 | 32.5 | 32.4 | |||||||||||||||||||||||||||||
| 393.5 | 359.9 | 295.1 | 862.8 | 697.2 | 698.4 | ||||||||||||||||||||||||||||||
| U.S. Wind Facilities: | |||||||||||||||||||||||||||||||||||
| Sandy Ridge | 37.7 | 24.6 | 22.8 | 84.8 | 64.1 | 59.0 | |||||||||||||||||||||||||||||
| Minonk | 167.8 | 178.2 | 136.1 | 355.2 | 374.7 | 337.7 | |||||||||||||||||||||||||||||
| Senate | 137.4 | 109.6 | 102.0 | 288.7 | 222.1 | 248.4 | |||||||||||||||||||||||||||||
| Shady Oaks | 92.4 | 84.5 | 80.3 | 200.6 | 187.1 | 180.4 | |||||||||||||||||||||||||||||
Odell5 |
208.2 | 213.8 | 189.5 | 438.7 | 426.6 | 414.4 | |||||||||||||||||||||||||||||
Deerfield5 |
121.1 | 122.9 | 99.7 | 281.5 | 279.3 | 259.8 | |||||||||||||||||||||||||||||
Sugar Creek5 |
175.5 | 176.3 | 146.9 | 378.1 | 379.0 | 350.1 | |||||||||||||||||||||||||||||
Maverick Creek6 |
518.0 | 371.8 | 330.0 | 1,021.3 | 739.9 | 790.2 | |||||||||||||||||||||||||||||
Deerfield II7 |
85.8 | 74.9 | 51.6 | 194.8 | 165.2 | 58.8 | |||||||||||||||||||||||||||||
Sandy Ridge II9 |
56.9 | 47.2 | — | 138.9 | 118.9 | — | |||||||||||||||||||||||||||||
Shady Oaks II10 |
81.0 | 90.7 | — | 192.0 | 188.6 | — | |||||||||||||||||||||||||||||
| 1,681.8 | 1,494.5 | 1,158.9 | 3,574.6 | 3,145.5 | 2,698.8 | ||||||||||||||||||||||||||||||
| Solar Facilities: | |||||||||||||||||||||||||||||||||||
| Cornwall | 5.1 | 4.8 | 5.2 | 7.7 | 7.5 | 7.2 | |||||||||||||||||||||||||||||
| Bakersfield | 26.3 | 21.4 | 22.3 | 39.2 | 31.5 | 32.3 | |||||||||||||||||||||||||||||
| Great Bay | 65.2 | 61.6 | 64.0 | 111.9 | 106.9 | 108.0 | |||||||||||||||||||||||||||||
| Altavista | 54.1 | 49.5 | 49.7 | 90.9 | 85.8 | 83.8 | |||||||||||||||||||||||||||||
Dimension |
8.2 | 7.1 | 2.0 | 11.4 | 7.9 | 3.2 | |||||||||||||||||||||||||||||
New Market Solar11 |
68.4 | 59.0 | — | 80.3 | 74.4 | — | |||||||||||||||||||||||||||||
Hayhurst New Mexico12 |
17.7 | 19.7 | — | 30.1 | 32.3 | — | |||||||||||||||||||||||||||||
Hayhurst Texas13 |
14.1 | 16.2 | — | 14.1 | 16.2 | — | |||||||||||||||||||||||||||||
| 259.1 | 239.3 | 143.2 | 385.6 | 362.5 | 234.5 | ||||||||||||||||||||||||||||||
| Renewable Energy Performance | 2,527.2 | 2,266.5 | 1,764.5 | 5,147.2 | 4,520.8 | 3,934.4 | |||||||||||||||||||||||||||||
| Thermal Facilities: | |||||||||||||||||||||||||||||||||||
| Sanger | N/A8 |
0.9 | 1.0 | N/A7 |
1.4 | 10.4 | |||||||||||||||||||||||||||||
| 0.9 | 1.0 | 1.4 | 10.4 | ||||||||||||||||||||||||||||||||
Total Performance14 |
2,267.4 | 1,765.5 | 4,522.2 | 3,944.8 | |||||||||||||||||||||||||||||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 29 |
||||
| 1 | LTAR is based on weather resource studies done at the inception of each project. |
||||
| 2 | AQN owns a 75% equity interest but accounts for the facility using the equity method. Figures show full energy produced by the facility. | ||||
| 3 | AQN owns a 20% equity interest but accounts for the facility using the equity method. Figures show expected LTAR and full energy produced by the facility during the quarter. Actual production excludes 34.4 GW-hrs of generation that was compensated under equipment availability warranties. |
||||
| 4 | AQN owns a 50% equity interest but accounts for the facility using the equity method. Figures show full energy produced by the facility during the quarter. |
||||
| 5 | AQN owns a 51% equity interest in the Sugar Creek, Odell and Deerfield Wind Facilities but consolidates the facilities for accounting purposes. Figures show full energy produced by the facilities during the quarter. | ||||
| 6 | Actual production excludes 41.9 GW-hrs of generation that was compensated under equipment availability warranties. |
||||
| 7 | The Deerfield II Wind Facility achieved commercial operations (“COD”) on March 23, 2023. Prior to June 15, 2023, AQN owned a 50% interest in the facility. On June 15, 2023, AQN acquired the remaining 50% interest that it did not previously own. Figures show full energy produced by the facility during the quarter. |
||||
| 8 | Natural gas fired co-generation facility. | ||||
| 9 | The Sandy Ridge II Wind Facility achieved COD on September 16, 2023. Prior to February 15, 2024, AQN owned a 50% interest in the facility. On February 15, 2024, AQN acquired the remaining 50% interest that it did not previously own. Figures show full energy produced by the facility during the quarter. |
||||
| 10 | The Shady Oaks II Wind Facility achieved COD on October 10, 2023. Prior to June 26, 2024, AQN owned a 50% interest in the facility. On June 26, 2024, AQN acquired the remaining 50% interest that it did not previously own. Figures show full energy produced by the facility during the quarter. |
||||
| 11 | The New Market Solar Facility achieved COD on March 1, 2024. Prior to June 26, 2024, AQN owned a 50% interest in the facility. On June 26, 2024, AQN acquired the remaining 50% interest that it did not previously own. Figures show full energy produced by the facility during the quarter. |
||||
| 12 | The Hayhurst New Mexico Solar Facility achieved COD on November 6, 2023. AQN owns 50% equity interest but accounts for the facility using the equity method. Figures show expected LTAR and full energy produced by the facility during the quarter. | ||||
| 13 | The Hayhurst Texas Solar Facility achieved COD on April 17, 2024. AQN owns 50% equity interest but accounts for the facility using the equity method. Figures show expected LTAR and full energy produced by the facility during the quarter. |
||||
| 14 | Total Performance represents actual energy produced by each facility. Lower than expected turbine availability will contribute to generation shortfalls relative to LTAR in some instances. The Company recognizes availability revenue when such shortfalls are compensated for under various long term service and maintenance agreements. The compensated generation is not reflected in the actual energy produced by each facility. |
||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 30 |
||||
2024 Second Quarter and Year-to-Date Renewable Energy Group Operating Results | |||||||||||||||||||||||
| Three months ended | Six months ended | ||||||||||||||||||||||
| June 30 | June 30 | ||||||||||||||||||||||
| (all dollar amounts in $ millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Revenue1 |
|||||||||||||||||||||||
| Hydro | $ | 10.3 | $ | 8.8 | $ | 19.5 | $ | 16.9 | |||||||||||||||
| Wind | 56.6 | 46.5 | 120.3 | 102.7 | |||||||||||||||||||
| Solar | 9.9 | 9.4 | 15.6 | 14.7 | |||||||||||||||||||
| Thermal | 1.9 | 7.0 | 7.8 | 16.1 | |||||||||||||||||||
| Total Non-Regulated Energy Sales | $ | 78.7 | $ | 71.7 | $ | 163.2 | $ | 150.4 | |||||||||||||||
| Less: | |||||||||||||||||||||||
Cost of Sales - Energy2 |
(0.2) | (0.4) | (0.9) | (1.5) | |||||||||||||||||||
| Cost of Sales - Thermal | (0.5) | (3.4) | (3.3) | (10.1) | |||||||||||||||||||
Net Energy Sales 3,4 |
$ | 78.0 | $ | 67.9 | $ | 159.0 | $ | 138.8 | |||||||||||||||
Renewable Energy Credits5 |
9.1 | 8.1 | 23.3 | 18.1 | |||||||||||||||||||
| Other Revenue | 5.4 | 1.3 | 6.8 | 2.7 | |||||||||||||||||||
| Total Net Revenue | $ | 92.5 | $ | 77.3 | $ | 189.1 | $ | 159.6 | |||||||||||||||
| Expenses & Other Income | |||||||||||||||||||||||
| Operating expenses | (33.3) | (27.7) | (72.3) | (60.4) | |||||||||||||||||||
| Development costs | (7.7) | (3.3) | (16.3) | (7.3) | |||||||||||||||||||
Other operating costs (previously referred to as administrative expenses) |
(6.7) | (7.4) | (12.7) | (11.1) | |||||||||||||||||||
Dividend, interest, equity and other income6 |
30.1 | 22.6 | 51.5 | 52.3 | |||||||||||||||||||
HLBV income7 |
24.8 | 14.7 | 47.6 | 38.3 | |||||||||||||||||||
Divisional Operating Profit3,8,9 |
$ | 99.7 | $ | 76.2 | $ | 186.9 | $ | 171.4 | |||||||||||||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 31 |
||||
| 1 | Many of the Renewable Energy Group's power purchase agreements ("PPAs") include annual rate increases. However, a change to the weighted average production levels resulting from higher average production from facilities that earn lower energy rates can result in a lower weighted average energy rate earned by the division as compared to the same period in the prior year. |
||||
| 2 | Cost of Sales - Energy consists of energy purchases in the Maritime Region to manage the energy sales from the Tinker Hydro Facility which is sold to retail and industrial customers under multi-year contracts. | ||||
| 3 | See Caution Concerning Non-GAAP Measures. |
||||
| 4 | This table contains a reconciliation of Net Energy Sales to revenue. The relevant sections of the table are derived from and should be read in conjunction with the unaudited interim condensed consolidated statement of operations and Note 18 in the unaudited interim condensed consolidated financial statements, "Segmented information". This supplementary disclosure is intended to more fully explain disclosures related to Net Energy Sales and provides additional information related to the operating performance of AQN. Investors are cautioned that Net Energy Sales should not be construed as an alternative to revenue. |
||||
| 5 | Qualifying renewable energy projects receive RECs for the generation and delivery of renewable energy to the power grid. The RECs represent proof that 1 MW-hr of electricity was generated from an eligible energy source. | ||||
| 6 | Includes dividends received from Atlantica and related parties (see Notes 6 and 13 in the unaudited interim condensed consolidated financial statements) as well as the equity investment in the Stella, Cranell, East Raymond and West Raymond Wind Facilities (collectively, the "Texas Coastal Wind Facilities"). |
||||
| 7 |
HLBV income represents the value of net tax attributes earned by the Renewable Energy Group in the period primarily from electricity generated by certain of its U.S. wind and U.S. solar generation facilities.
Production tax credits ("PTCs") are earned as wind energy is generated based on a dollar per kW-hr rate prescribed in applicable federal and state statutes. For the six months ended June 30, 2024, the Renewable Energy Group's eligible facilities generated 2,297.5 GW-hrs representing approximately $70.3 million in PTCs earned as compared to 1,873.3 GW-hrs representing $52.5 million in PTCs earned during the same period in 2023. The majority of the PTCs have been allocated to tax equity investors to monetize the value to AQN of the PTCs and other tax attributes which are the primary drivers of HLBV income offset by the return earned by the investor. Some PTCs have been utilized directly by the Company which has lowered its overall effective tax rate.
|
||||
| 8 | Certain prior year items have been reclassified to conform to current year presentation. | ||||
| 9 | This table contains a reconciliation of Divisional Operating Profit to revenue for the Renewable Energy Group. The relevant sections of the table are derived from and should be read in conjunction with the unaudited interim condensed consolidated statement of operations and Note 18 in the unaudited interim condensed consolidated financial statements, "Segmented Information". This supplementary disclosure is intended to more fully explain disclosures related to Divisional Operating Profit and provides additional information related to the operating performance of the Renewable Energy Group. Investors are cautioned that Divisional Operating Profit should not be construed as an alternative to revenue. |
||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 32 |
||||
| (all dollar amounts in $ millions) | Three months ended June 30 | ||||
Prior Period Divisional Operating Profit1 |
$ | 76.2 | |||
| Existing Facilities and Investments | |||||
| Hydro | 0.9 | ||||
Wind CA: Increase is primarily driven by higher wind resources across the majority of the Canadian wind facilities. |
2.3 | ||||
Wind U.S.: Increase is primarily due to higher wind resources and higher HLBV income across all U.S. wind facilities. |
10.7 | ||||
Solar |
0.5 | ||||
Thermal & Renewable Natural Gas: Decrease is primarily driven by the sale of the Windsor Locks Thermal Facility as of March 1, 2024. |
(3.4) | ||||
Investments and Other: Increase is due to higher equity income from the Texas Coastal Wind Facilities. |
10.2 | ||||
| Development costs: Increase is due to the consolidation of development activities as part of the Company's business simplification initiative. | (4.4) | ||||
Other operating costs |
0.7 | ||||
| 17.5 | |||||
| New Facilities and Investments | |||||
Increase is primarily driven by the Deerfield II Wind Facility and Sandy Ridge II Wind Facility. |
5.1 | ||||
| Foreign Exchange | 0.9 | ||||
Current Period Divisional Operating Profit1 |
$ | 99.7 | |||
| 1 | See Caution Concerning Non-GAAP Measures. |
||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 33 |
||||
| (all dollar amounts in $ millions) | Six months ended June 30 | ||||
Prior Period Divisional Operating Profit1 |
$ | 171.4 | |||
| Existing Facilities | |||||
Hydro |
0.8 | ||||
Wind CA: Increase is primarily driven by higher wind resources across the majority of the Canadian wind facilities. |
2.0 | ||||
Wind U.S.: Increase is primarily due to higher wind resources and HLBV income across the majority of the U.S. wind facilities. |
11.0 | ||||
Solar: Increase is primarily driven by favourable REC revenue for the Great Bay Solar Facilities. |
1.5 | ||||
Thermal & Renewable Natural Gas: Decrease is primarily driven by the sale of the Windsor Locks Thermal Facility as of March 1, 2024. |
(1.6) | ||||
Investments and Other |
0.3 | ||||
Development costs: Increase is due to the consolidation of development activities as part of the Company's business simplification initiative. |
(9.0) | ||||
Other operating costs: Increase is due to higher administrative costs and inflation. |
(1.6) | ||||
| 3.4 | |||||
| New Facilities and Investments | |||||
Increase is primarily driven by the Deerfield II Wind Facility and Sandy Ridge II Wind Facility. |
10.9 | ||||
| Foreign Exchange | 1.2 | ||||
Current Period Divisional Operating Profit1 |
$ | 186.9 | |||
| 1 | See Caution Concerning Non-GAAP Measures. |
||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 34 |
||||
| Three months ended | Six months ended | ||||||||||||||||||||||
| June 30 | June 30 | ||||||||||||||||||||||
| (all dollar amounts in $ millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
| Corporate and other expenses: | |||||||||||||||||||||||
| Loss on foreign exchange | 4.3 | 6.4 | 16.1 | 7.8 | |||||||||||||||||||
| Interest expense | 105.8 | 89.7 | 208.3 | 171.6 | |||||||||||||||||||
| Depreciation and amortization | 136.9 | 118.4 | 266.5 | 240.1 | |||||||||||||||||||
| Change in value of investments carried at fair value | (172.9) | 311.4 | (14.6) | 132.0 | |||||||||||||||||||
Interest, dividend, equity, and other income1 |
(0.6) | (1.5) | (1.2) | (2.1) | |||||||||||||||||||
| Pension and other post-employment non-service costs | 4.0 | 5.3 | 7.4 | 10.3 | |||||||||||||||||||
| Other net losses | 17.1 | 40.4 | 27.7 | 43.8 | |||||||||||||||||||
| Gain on derivative financial instruments | (0.1) | (1.0) | (0.2) | (3.2) | |||||||||||||||||||
Income tax recovery |
(5.2) | (56.0) | (16.5) | (31.3) | |||||||||||||||||||
| 1 | Excludes income directly pertaining to the Regulated Services and Renewable Energy Groups (disclosed in the relevant sections). | ||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 35 |
||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 36 |
||||
| Three months ended | Six months ended | ||||||||||||||||||||||
| June 30 | June 30 | ||||||||||||||||||||||
| (all dollar amounts in $ millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
| Net earnings (loss) attributable to shareholders | $ | 200.8 | $ | (253.2) | $ | 111.6 | $ | 16.9 | |||||||||||||||
| Add (deduct): | |||||||||||||||||||||||
| Net earnings attributable to the non-controlling interest, exclusive of HLBV | 7.7 | 16.4 | 17.1 | 30.8 | |||||||||||||||||||
Income tax recovery |
(5.2) | (56.0) | (16.5) | (31.3) | |||||||||||||||||||
| Interest expense | 105.8 | 89.7 | 208.3 | 171.6 | |||||||||||||||||||
Other net losses1 |
17.1 | 40.4 | 27.7 | 43.8 | |||||||||||||||||||
Unrealized loss (gain) on energy derivatives included in revenue |
12.6 | (0.1) | 23.3 | (0.1) | |||||||||||||||||||
| HLBV prior period adjustment within equity income | — | — | 8.5 | — | |||||||||||||||||||
| Pension and post-employment non-service costs | 4.0 | 5.3 | 7.4 | 10.3 | |||||||||||||||||||
Change in value of investments carried at fair value2 |
(172.9) | 311.4 | (14.6) | 132.0 | |||||||||||||||||||
| Gain on derivative financial instruments | (0.1) | (1.0) | (0.2) | (3.2) | |||||||||||||||||||
| Loss on foreign exchange | 4.3 | 6.4 | 16.1 | 7.8 | |||||||||||||||||||
| Depreciation and amortization | 136.9 | 118.4 | 266.5 | 240.1 | |||||||||||||||||||
| Adjusted EBITDA | $ | 311.0 | $ | 277.7 | $ | 655.2 | $ | 618.7 | |||||||||||||||
| 1 | See Note 16 in the unaudited interim condensed consolidated financial statements. |
||||
| 2 | See Note 6 in the unaudited interim condensed consolidated financial statements. |
||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 37 |
||||
| Three months ended | Six months ended | ||||||||||||||||||||||
| June 30 | June 30 | ||||||||||||||||||||||
| (all dollar amounts in $ millions except per share information) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
| Net earnings (loss) attributable to shareholders | $ | 200.8 | $ | (253.2) | $ | 111.6 | $ | 16.9 | |||||||||||||||
| Add (deduct): | |||||||||||||||||||||||
| Gain on derivative financial instruments | (0.1) | (1.0) | (0.2) | (3.2) | |||||||||||||||||||
Other net losses1 |
17.1 | 40.4 | 27.7 | 43.8 | |||||||||||||||||||
| Loss on foreign exchange | 4.3 | 6.4 | 16.1 | 7.8 | |||||||||||||||||||
| Unrealized loss on energy derivatives included in revenue | 12.6 | (0.1) | 23.3 | (0.1) | |||||||||||||||||||
| HLBV prior period adjustment within equity income | — | — | 8.5 | — | |||||||||||||||||||
Change in value of investments carried at fair value2 |
(172.9) | 311.4 | (14.6) | 132.0 | |||||||||||||||||||
| Adjustment for taxes related to above | 3.4 | (47.7) | (11.8) | (21.2) | |||||||||||||||||||
| Adjusted Net Earnings | $ | 65.2 | $ | 56.2 | $ | 160.6 | $ | 176.0 | |||||||||||||||
| Adjusted Net Earnings per common share | $ | 0.09 | $ | 0.08 | $ | 0.22 | $ | 0.25 | |||||||||||||||
| 1 | See Note 16 in the unaudited interim condensed consolidated financial statements. |
||||
| 2 | See Note 6 in the unaudited interim condensed consolidated financial statements. |
||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 38 |
||||
| Three months ended | Six months ended | ||||||||||||||||||||||
| June 30 | June 30 | ||||||||||||||||||||||
| (all dollar amounts in $ millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
| Cash provided by operating activities | $ | 236.2 | $ | 261.4 | $ | 366.9 | $ | 294.7 | |||||||||||||||
| Add (deduct): | |||||||||||||||||||||||
| Changes in non-cash operating items | (70.6) | (112.4) | (16.0) | 53.4 | |||||||||||||||||||
| Production based cash contributions from non-controlling interests | 2.3 | — | 6.3 | 9.1 | |||||||||||||||||||
| Costs related to tax equity financing | — | 1.2 | — | 1.2 | |||||||||||||||||||
| Adjusted Funds from Operations | $ | 167.9 | $ | 150.2 | $ | 357.2 | $ | 358.4 | |||||||||||||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 39 |
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| Three months ended | Six months ended | ||||||||||||||||||||||
| June 30 | June 30 | ||||||||||||||||||||||
| (all dollar amounts in $ millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
| Regulated Services Group | |||||||||||||||||||||||
Rate Base Maintenance1 |
100.3 | $ | 84.6 | 192.6 | $ | 170.3 | |||||||||||||||||
| Rate Base Growth | 63.6 | 105.1 | 130.8 | 196.8 | |||||||||||||||||||
| $ | 163.9 | $ | 189.7 | $ | 323.4 | $ | 367.1 | ||||||||||||||||
Renewable Energy Group |
$ | 484.0 | $ | 196.5 | $ | 698.3 | $ | 231.9 | |||||||||||||||
| Total Capital Expenditures | $ | 647.9 | $ | 386.2 | $ | 1,021.7 | $ | 599.0 | |||||||||||||||
| 1 | Maintenance expenditures are calculated based on the depreciation expense for the period. | |||||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 40 |
||||
| As at June 30, 2024 | As at December 31, 2023 | ||||||||||||||||||||||||||||
| (all dollar amounts in $ millions) | Corporate | Regulated Services Group | Renewable Energy Group | Total | Total | ||||||||||||||||||||||||
| Revolving and term credit facilities | $ | 1,075.0 | 1 |
$ | 2,414.2 | 2 |
$ | 1,100.0 | 3 |
$ | 4,589.2 | $ | 4,562.0 | ||||||||||||||||
| Funds drawn on facilities / commercial paper issued | (430.4) | (916.6) | (144.1) | (1,491.1) | (2,892.9) | ||||||||||||||||||||||||
| Letters of credit issued | (37.0) | (39.2) | (385.7) | (461.9) | (469.1) | ||||||||||||||||||||||||
| Liquidity available under the facilities | 607.6 | 1,458.4 | 570.2 | 2,636.2 | 1,200.0 | ||||||||||||||||||||||||
| Undrawn portion of uncommitted letter of credit facilities | (39.5) | — | (215.1) | (254.6) | (254.1) | ||||||||||||||||||||||||
| Cash on hand | 131.6 | 56.1 | |||||||||||||||||||||||||||
| Total Liquidity and Capital Reserves | $ | 568.1 | $ | 1,458.4 | $ | 355.1 | $ | 2,513.2 | $ | 1,002.0 | |||||||||||||||||||
1 Includes a $75 million uncommitted standalone letter of credit facility. | |||||||||||||||||||||||||||||
2 Includes $178.8 million fully drawn term facilities of Suralis and BELCO as at June 30, 2024 ($176.5 million as at December 31, 2023). | |||||||||||||||||||||||||||||
3 Includes $600 million of uncommitted standalone letter of credit facilities. | |||||||||||||||||||||||||||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 41 |
||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 42 |
||||
| (all dollar amounts in $ millions) | Total | Due in less than 1 year |
Due in 1 to 3 years |
Due in 4 to 5 years |
Due after 5 years |
||||||||||||||||||||||||
Principal repayments on debt obligations1,2 |
$ | 8,327.8 | $ | 1,022.5 | $ | 1,834.9 | $ | 1,452.9 | $ | 4,017.5 | |||||||||||||||||||
| Advances in aid of construction | 84.2 | 1.2 | — | — | 83.0 | ||||||||||||||||||||||||
Interest on long-term debt obligations2 |
5,006.1 | 382.8 | 643.8 | 448.9 | 3,530.6 | ||||||||||||||||||||||||
| Purchase obligations | 690.3 | 690.3 | — | — | — | ||||||||||||||||||||||||
| Environmental obligations | 45.2 | 3.7 | 21.5 | 1.6 | 18.4 | ||||||||||||||||||||||||
| Derivative financial instruments: | |||||||||||||||||||||||||||||
| Cross currency interest rate swaps | 35.9 | 3.5 | 9.6 | 1.5 | 21.3 | ||||||||||||||||||||||||
| Interest rate swaps | — | — | — | — | — | ||||||||||||||||||||||||
| Energy derivative and commodity contracts | 94.1 | 19.9 | 34.6 | 22.6 | 17.0 | ||||||||||||||||||||||||
| Purchased power | 247.7 | 60.5 | 38.3 | 25.6 | 123.3 | ||||||||||||||||||||||||
| Gas delivery, service and supply agreements | 505.6 | 98.0 | 123.4 | 86.0 | 198.2 | ||||||||||||||||||||||||
| Service agreements | 554.6 | 75.4 | 119.8 | 110.6 | 248.8 | ||||||||||||||||||||||||
| Capital projects | 4.4 | 4.4 | — | — | — | ||||||||||||||||||||||||
| Land easements | 682.2 | 16.3 | 33.7 | 34.6 | 597.6 | ||||||||||||||||||||||||
| Other obligations | 259.0 | 5.6 | 2.9 | 2.2 | 248.3 | ||||||||||||||||||||||||
Total Obligations3 |
$ | 16,537.1 | $ | 2,384.1 | $ | 2,862.5 | $ | 2,186.5 | $ | 9,104.0 | |||||||||||||||||||
| 1 | Exclusive of deferred financing costs, bond premium/discount, and fair value adjustments at the time of issuance or acquisition. | ||||
| 2 | The Company's subordinated unsecured notes have a maturity in 2079 and 2082, respectively. However, the Company currently anticipates repaying such notes in advance of maturity upon exercise of the Company's redemption rights in accordance with the terms of the applicable indenture. | ||||
| 3 | Excludes performance guarantees and other commitments on behalf of variable interest entities. See Note 6 in the unaudited interim condensed consolidated financial statements. |
||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 43 |
||||
| Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Total | |||||||||||||
| U.S. dollar dividend | $ | 0.1085 | $ | 0.1085 | $ | 0.1085 | $ | 0.0650 | $0.3905 | ||||||||
| Canadian dollar equivalent | $ | 0.1497 | $ | 0.1468 | $ | 0.1490 | $ | 0.0893 | $0.5348 | ||||||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 44 |
||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 45 |
||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 46 |
||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 47 |
||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 48 |
||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 49 |
||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 50 |
||||
| (all dollar amounts in $ millions except per share information) | 3rd Quarter 2023 | 4th Quarter 2023 | 1st Quarter 2024 | 2nd Quarter 2024 |
|||||||||||||||||||
| Revenue | $ | 624.6 | $ | 666.9 | $ | 737.1 | $ | 598.6 | |||||||||||||||
| Net earnings (loss) attributable to shareholders | (174.5) | 186.3 | (89.1) | 200.8 | |||||||||||||||||||
| Net earnings (loss) per share | (0.26) | 0.27 | (0.13) | 0.28 | |||||||||||||||||||
| Diluted net earnings (loss) per share | (0.26) | 0.27 | (0.13) | 0.28 | |||||||||||||||||||
Adjusted Net Earnings1 |
80.5 | 115.5 | 95.6 | 65.2 | |||||||||||||||||||
Adjusted Net Earnings per common share1 |
0.11 | 0.16 | 0.14 | 0.09 | |||||||||||||||||||
Adjusted EBITDA1 |
282.5 | 334.3 | 344.3 | 311.0 | |||||||||||||||||||
| Total assets | 17,982.8 | 18,374.0 | 18,307.8 | 18,866.4 | |||||||||||||||||||
Long-term debt2 |
8,367.3 | 8,516.3 | 9,089.9 | 8,292.9 | |||||||||||||||||||
| Dividend declared per common share | $ | 0.11 | $ | 0.11 | $ | 0.11 | $ | 0.11 | |||||||||||||||
| 3rd Quarter 2022 | 4th Quarter 2022 | 1st Quarter 2023 | 2nd Quarter 2023 |
||||||||||||||||||||
| Revenue | $ | 664.4 | $ | 748.0 | $ | 778.6 | $ | 627.9 | |||||||||||||||
| Net earnings (loss) attributable to shareholders | (195.2) | (74.4) | 270.1 | (253.2) | |||||||||||||||||||
| Net earnings (loss) per share | (0.29) | (0.11) | 0.39 | (0.37) | |||||||||||||||||||
| Diluted net earnings (loss) per share | (0.29) | (0.11) | 0.39 | (0.37) | |||||||||||||||||||
Adjusted Net Earnings1 |
73.5 | 97.6 | 119.9 | 56.2 | |||||||||||||||||||
Adjusted Net Earnings per common share1 |
0.11 | 0.14 | 0.17 | 0.08 | |||||||||||||||||||
Adjusted EBITDA1 |
276.1 | 298.5 | 341.0 | 277.7 | |||||||||||||||||||
| Total assets | 17,653.3 | 17,627.6 | 17,927.1 | 17,968.7 | |||||||||||||||||||
Long-term debt2 |
7,705.1 | 7,512.3 | 7,849.2 | 8,083.4 | |||||||||||||||||||
| Dividend declared per common share | $ | 0.18 | $ | 0.18 | $ | 0.11 | $ | 0.11 | |||||||||||||||
| 1 | See Caution Concerning Non-GAAP Measures. |
||||
| 2 | Includes current portion of long-term debt, long-term debt and convertible debentures. | ||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 51 |
||||
| Algonquin Power & Utilities Corp. - Management Discussion & Analysis | 52 |
||||
All amounts in U.S. $ millions except per share information |
Three months ended June 30 |
Six months ended 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 Energy Group Revenue | 93.2 | 81.1 | 15% | 193.3 | 171.2 | 13% | ||||||||||||||
| Net earnings (loss) attributable to shareholders | 200.8 | (253.2) | 179% | 111.6 | 16.9 | 560% | ||||||||||||||
| Per common share | 0.28 | (0.37) | 176% | 0.15 | 0.02 | 650% | ||||||||||||||
| Cash provided by operating activities | 236.2 | 261.4 | (10)% | 366.9 | 294.7 | 24% | ||||||||||||||
Adjusted Net Earnings1 |
65.2 | 56.2 | 16% | 160.6 | 176.0 | (9)% | ||||||||||||||
| Per common share | 0.09 | 0.08 | 13% | 0.22 | 0.25 | (10)% | ||||||||||||||
Adjusted EBITDA1 |
311.0 | 277.7 | 12% | 655.2 | 618.7 | 6% | ||||||||||||||
Regulated Services Group Divisional Operating Profit1 |
212.8 | 199.4 | 7% | 469.7 | 445.2 | 6% | ||||||||||||||
Renewable Energy Group Divisional Operating Profit1 |
99.7 | 76.2 | 31% | 186.9 | 171.4 | 9% | ||||||||||||||
Adjusted Funds from Operations1 |
167.9 | 150.2 | 12% | 357.2 | 358.4 | —% | ||||||||||||||
| Dividends per common share | 0.1085 | 0.1085 | — | 0.2170 | 0.2170 | —% | ||||||||||||||
| Long-term Debt | 8,292.6 | 8,516.0 | (3)% | 8,292.6 | 8,516.0 | (3)% | ||||||||||||||
Date: |
Friday, August 9, 2024 | |||||||
Time: |
8:30 a.m. ET | |||||||
Conference Call: |
Toll Free Dial-In Number | 1 (800) 715-9871 | ||||||
| Toll Dial-In Number | 1 (647) 932-3411 | |||||||
| Conference ID | 9608227 | |||||||
Webcast: |
https://edge.media-server.com/mmc/p/q3hkjcp5 | |||||||
Presentation also available at: www.algonquinpower.com |
||||||||
| Three months ended | Six months ended | ||||||||||||||||||||||
| June 30 | June 30 | ||||||||||||||||||||||
| (all dollar amounts in $ millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
| Net earnings (loss) attributable to shareholders | $ | 200.8 | $ | (253.2) | $ | 111.6 | $ | 16.9 | |||||||||||||||
| Add (deduct): | |||||||||||||||||||||||
| Net earnings attributable to the non-controlling interest, exclusive of HLBV | 7.7 | 16.4 | 17.1 | 30.8 | |||||||||||||||||||
| Income tax expense (recovery) | (5.2) | (56.0) | (16.5) | (31.3) | |||||||||||||||||||
| Interest expense | 105.8 | 89.7 | 208.3 | 171.6 | |||||||||||||||||||
Other net losses1 |
17.1 | 40.4 | 27.7 | 43.8 | |||||||||||||||||||
| Unrealized loss (gain) on energy derivatives included in revenue | 12.6 | (0.1) | 23.3 | (0.1) | |||||||||||||||||||
| HLBV prior period adjustment within equity income | — | — | 8.5 | — | |||||||||||||||||||
| Pension and post-employment non-service costs | 4.0 | 5.3 | 7.4 | 10.3 | |||||||||||||||||||
Change in value of investments carried at fair value2 |
(172.9) | 311.4 | (14.6) | 132.0 | |||||||||||||||||||
| Gain on derivative financial instruments | (0.1) | (1.0) | (0.2) | (3.2) | |||||||||||||||||||
| Loss on foreign exchange | 4.3 | 6.4 | 16.1 | 7.8 | |||||||||||||||||||
| Depreciation and amortization | 136.9 | 118.4 | 266.5 | 240.1 | |||||||||||||||||||
| Adjusted EBITDA | $ | 311.0 | $ | 277.7 | $ | 655.2 | $ | 618.7 | |||||||||||||||
| 1 | See Note 16 in the unaudited interim condensed consolidated financial statements. |
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| 2 | See Note 6 in the unaudited interim condensed consolidated financial statements. |
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| Three months ended | Six months ended | ||||||||||||||||||||||
| June 30 | June 30 | ||||||||||||||||||||||
| (all dollar amounts in $ millions except per share information) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
| Net earnings (loss) attributable to shareholders | $ | 200.8 | $ | (253.2) | $ | 111.6 | $ | 16.9 | |||||||||||||||
| Add (deduct): | |||||||||||||||||||||||
| Gain on derivative financial instruments | (0.1) | (1.0) | (0.2) | (3.2) | |||||||||||||||||||
Other net losses1 |
17.1 | 40.4 | 27.7 | 43.8 | |||||||||||||||||||
| Loss on foreign exchange | 4.3 | 6.4 | 16.1 | 7.8 | |||||||||||||||||||
| Unrealized loss on energy derivatives included in revenue | 12.6 | (0.1) | 23.3 | (0.1) | |||||||||||||||||||
| HLBV prior period adjustment within equity income | — | — | 8.5 | — | |||||||||||||||||||
Change in value of investments carried at fair value2 |
(172.9) | 311.4 | (14.6) | 132.0 | |||||||||||||||||||
| Adjustment for taxes related to above | 3.4 | (47.7) | (11.8) | (21.2) | |||||||||||||||||||
| Adjusted Net Earnings | $ | 65.2 | $ | 56.2 | $ | 160.6 | $ | 176.0 | |||||||||||||||
| Adjusted Net Earnings per common share | $ | 0.09 | $ | 0.08 | $ | 0.22 | $ | 0.25 | |||||||||||||||
| 1 | See Note 16 in the unaudited interim condensed consolidated financial statements. |
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| 2 | See Note 6 in the unaudited interim condensed consolidated financial statements. |
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| Three months ended | Six months ended | ||||||||||||||||||||||
| June 30 | June 30 | ||||||||||||||||||||||
| (all dollar amounts in $ millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
| Cash provided by operating activities | $ | 236.2 | $ | 261.4 | $ | 366.9 | $ | 294.7 | |||||||||||||||
| Add (deduct): | |||||||||||||||||||||||
| Changes in non-cash operating items | (70.6) | (112.4) | (16.0) | 53.4 | |||||||||||||||||||
| Production based cash contributions from non-controlling interests | 2.3 | — | 6.3 | 9.1 | |||||||||||||||||||
| Costs related to tax equity financing | — | 1.2 | — | 1.2 | |||||||||||||||||||
| Adjusted Funds from Operations | $ | 167.9 | $ | 150.2 | $ | 357.2 | $ | 358.4 | |||||||||||||||
| Three months ended | Six months ended | ||||||||||||||||||||||
| June 30 | June 30 | ||||||||||||||||||||||
| (all dollar amounts in $ millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
| Revenue | |||||||||||||||||||||||
| Regulated electricity distribution | $ | 304.3 | $ | 328.2 | $ | 610.1 | $ | 644.2 | |||||||||||||||
| Less: Regulated electricity purchased | (81.7) | (98.3) | (179.6) | (223.9) | |||||||||||||||||||
Net Utility Sales – electricity1 |
222.6 | 229.9 | 430.5 | 420.3 | |||||||||||||||||||
| Regulated gas distribution | 94.2 | 109.5 | 328.2 | 380.7 | |||||||||||||||||||
| Less: Regulated gas purchased | (22.9) | (36.2) | (118.9) | (173.9) | |||||||||||||||||||
|
Net Utility Sales – natural gas1
|
71.3 | 73.3 | 209.3 | 206.8 | |||||||||||||||||||
| Regulated water reclamation and distribution | 92.8 | 95.9 | 177.8 | 183.3 | |||||||||||||||||||
| Less: Regulated water purchased | (4.3) | (3.8) | (8.2) | (7.7) | |||||||||||||||||||
Net Utility Sales – water reclamation and distribution1 |
88.5 | 92.1 | 169.6 | 175.6 | |||||||||||||||||||
Other revenue2 |
13.9 | 12.8 | 25.7 | 26.4 | |||||||||||||||||||
Net Utility Sales1,3 |
396.3 | 408.1 | 835.1 | 829.1 | |||||||||||||||||||
| Operating expenses | (215.7) | (228.8) | (423.2) | (425.7) | |||||||||||||||||||
| Income from long-term investments | 7.5 | 9.3 | 15.4 | 19.7 | |||||||||||||||||||
HLBV4 |
24.7 | 10.8 | 42.4 | 22.1 | |||||||||||||||||||
Divisional Operating Profit1,5 |
$ | 212.8 | $ | 199.4 | $ | 469.7 | $ | 445.2 | |||||||||||||||
| 1 | See Caution Concerning Non-GAAP Measures. |
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| 2 | See Note 18 in the unaudited interim condensed consolidated financial statements. |
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| 3 | This table contains a reconciliation of Net Utility Sales to revenue. The relevant sections of the table are derived from and should be read in conjunction with the unaudited interim condensed consolidated statement of operations and Note 18 in the unaudited interim condensed consolidated financial statements, "Segmented Information". This supplementary disclosure is intended to more fully explain disclosures related to Net Utility Sales and provides additional information related to the operating performance of the Regulated Services Group. Investors are cautioned that Net Utility Sales should not be construed as an alternative to revenue. |
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| 4 | HLBV income represents the value of net tax attributes monetized by the Regulated Services Group in the period at the Luning and Turquoise Solar Facilities and the Neosho Ridge, Kings Point and North Fork Ridge Wind Facilities. |
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| 5 | This table contains a reconciliation of Divisional Operating Profit to revenue for the Regulated Services Group. The relevant sections of the table are derived from and should be read in conjunction with the unaudited interim condensed consolidated statement of operations and Note 18 in the unaudited interim condensed consolidated financial statements, "Segmented Information". This supplementary disclosure is intended to more fully explain disclosures related to Divisional Operating Profit and provides additional information related to the operating performance of the Regulated Services Group. Investors are cautioned that Divisional Operating Profit should not be construed as an alternative to revenue. |
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| Three months ended | Six months ended | ||||||||||||||||||||||
| June 30 | June 30 | ||||||||||||||||||||||
| (all dollar amounts in $ millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Revenue1 |
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| Hydro | $ | 10.3 | $ | 8.8 | $ | 19.5 | $ | 16.9 | |||||||||||||||
| Wind | 56.6 | 46.5 | 120.3 | 102.7 | |||||||||||||||||||
| Solar | 9.9 | 9.4 | 15.6 | 14.7 | |||||||||||||||||||
| Thermal | 1.9 | 7.0 | 7.8 | 16.1 | |||||||||||||||||||
| Total Non-Regulated Energy Sales | $ | 78.7 | $ | 71.7 | $ | 163.2 | $ | 150.4 | |||||||||||||||
| Less: | |||||||||||||||||||||||
Cost of Sales - Energy2 |
(0.2) | (0.4) | (0.9) | (1.5) | |||||||||||||||||||
| Cost of Sales - Thermal | (0.5) | (3.4) | (3.3) | (10.1) | |||||||||||||||||||
Net Energy Sales 3,4 |
$ | 78.0 | $ | 67.9 | $ | 159.0 | $ | 138.8 | |||||||||||||||
Renewable Energy Credits5 |
9.1 | 8.1 | 23.3 | 18.1 | |||||||||||||||||||
| Other Revenue | 5.4 | 1.3 | 6.8 | 2.7 | |||||||||||||||||||
| Total Net Revenue | $ | 92.5 | $ | 77.3 | $ | 189.1 | $ | 159.6 | |||||||||||||||
| Expenses & Other Income | |||||||||||||||||||||||
| Operating expenses | (33.3) | (27.7) | (72.3) | (60.4) | |||||||||||||||||||
| Development costs | (7.7) | (3.3) | (16.3) | (7.3) | |||||||||||||||||||
| Other operating costs (previously referred to as administrative expenses) | (6.7) | (7.4) | (12.7) | (11.1) | |||||||||||||||||||
Dividend, interest, equity and other income6 |
30.1 | 22.6 | 51.5 | 52.3 | |||||||||||||||||||
HLBV income7 |
24.8 | 14.7 | 47.6 | 38.3 | |||||||||||||||||||
Divisional Operating Profit3,8,9 |
$ | 99.7 | $ | 76.2 | $ | 186.9 | $ | 171.4 | |||||||||||||||
| 1 | Many of the Renewable Energy Group's power purchase agreements ("PPAs") include annual rate increases. However, a change to the weighted average production levels resulting from higher average production from facilities that earn lower energy rates can result in a lower weighted average energy rate earned by the division as compared to the same period in the prior year. |
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| 2 | Cost of Sales - Energy consists of energy purchases in the Maritime Region to manage the energy sales from the Tinker Hydro Facility which is sold to retail and industrial customers under multi-year contracts. | ||||
| 3 | See Caution Concerning Non-GAAP Measures. |
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| 4 | This table contains a reconciliation of Net Energy Sales to revenue. The relevant sections of the table are derived from and should be read in conjunction with the unaudited interim condensed consolidated statement of operations and Note 18 in the unaudited interim condensed consolidated financial statements, "Segmented information". This supplementary disclosure is intended to more fully explain disclosures related to Net Energy Sales and provides additional information related to the operating performance of AQN. Investors are cautioned that Net Energy Sales should not be construed as an alternative to revenue. |
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| 5 | Qualifying renewable energy projects receive renewable energy credits ("RECs") for the generation and delivery of renewable energy to the power grid. The RECs represent proof that 1 MW-hr of electricity was generated from an eligible energy source. | ||||
| 6 | Includes dividends received from Atlantica and related parties (see Notes 6 and 13 in the unaudited interim condensed consolidated financial statements) as well as the equity investment in the Stella, Cranell, East Raymond and West Raymond Wind Facilities (collectively, the "Texas Coastal Wind Facilities"). |
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| 7 |
HLBV income represents the value of net tax attributes earned by the Renewable Energy Group in the period primarily from electricity generated by certain of its U.S. wind and U.S. solar generation facilities.
PTCs are earned as wind energy is generated based on a dollar per kW-hr rate prescribed in applicable federal and state statutes. For the six months ended June 30, 2024, the Renewable Energy Group's eligible facilities generated 2,297.5 GW-hrs representing approximately $70.3 million in PTCs earned as compared to 1,873.3 GW-hrs representing $52.5 million in PTCs earned during the same period in 2023. The majority of the PTCs have been allocated to tax equity investors to monetize the value to AQN of the PTCs and other tax attributes which are the primary drivers of HLBV income offset by the return earned by the investor. Some PTCs have been utilized directly by the Company which has lowered its overall effective tax rate.
|
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| 8 | Certain prior year items have been reclassified to conform to current year presentation. | ||||
| 9 | This table contains a reconciliation of Divisional Operating Profit to revenue for the Renewable Energy Group. The relevant sections of the table are derived from and should be read in conjunction with the unaudited interim condensed consolidated statement of operations and Note 18 in the unaudited interim condensed consolidated financial statements, "Segmented Information". This supplementary disclosure is intended to more fully explain disclosures related to Divisional Operating Profit and provides additional information related to the operating performance of the Renewable Energy Group. Investors are cautioned that Divisional Operating Profit should not be construed as an alternative to revenue. |
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