Ms. Katie Patrick reports

ATCO REPORTS SECOND QUARTER 2023 EARNINGS

Atco Ltd. had second quarter 2023 adjusted earnings of $87-million (77 cents per share), $5-million (four cents per share) lower compared with $92-million (81 cents per share) in the second quarter of 2022.

Second quarter earnings attributable to Class I and Class II Shares reported in accordance with International Financial Reporting Standards (IFRS earnings) were $79 million ($0.70 per share), $11 million ($0.09 per share) lower compared to $90 million ($0.79 per share) in the second quarter of 2022.

IFRS earnings include timing adjustments related to rate-regulated activities, unrealized gains or losses on mark-to-market forward and swap commodity contracts, one-time gains and losses, impairments, and items that are not in the normal course of business or a result of day-to-day operations. These items are not included in adjusted earnings.

RECENT DEVELOPMENTS

ATCO Structures

• Executed a contract for the sale and installation of a 42-unit modular hospital complex in Quebec. The complex was previously on a long-term rental contract, which concluded earlier in the year. Dismantling of the complex has commenced, and installation in the new location is scheduled to be completed in the fourth quarter of 2023.
• Reached substantial completion of the Bechtel Pluto Train II project. This included handover of all remaining accommodations and facilities for the stage four milestone and associated siteworks. The final handover was completed approximately four months ahead of the original project schedule.

ATCO Frontec

• Commenced work on two fire relief camps made available for displaced people. One of the fire relief camps is the Valemount Lodge in BC, which ATCO had previously operated for the Trans Mountain Expansion Project. The second fire relief camp is a 350-bed camp for Dene Tha' First Nation.

Canadian Utilities

• Announced the executive appointment of Wayne Stensby as Chief Operating Officer of ATCO Energy Systems, the newly branded gas and electrical utility services business, which also oversees our interests in LUMA Energy.
• Announced the executive appointment of Bob Myles as Chief Operating Officer of ATCO EnPower, the newly branded non-regulated energy business, including renewables, clean fuels, and energy storage.
• Invested $332 million in capital expenditures in the second quarter of 2023, of which 86 per cent was invested in ATCO Energy Systems and 14 per cent mainly in ATCO EnPower. (1)
• The Barlow solar project achieved full commercial operations. Our other Calgary solar development project, Deerfoot, is expected to commence energization in the third quarter of 2023, with full commercial operations expected in the fourth quarter of 2023.
• Since acquiring the renewable energy portfolio in January 2023, the 232-MW of operating Forty Mile and Adelaide wind assets have contributed revenues of $46 million for the six months ended June 30, 2023. Uprating work continues for the Forty Mile wind assets with expected completion in the fourth quarter of 2023. This uprating is expected to increase Forty Mile Wind generation capacity from 202-MW to 225-MW.
• Despite significant wildfire activity within Alberta in the first half of 2023, Canadian Utilities' businesses have been successful in limiting customer outages and avoiding any safety incidents related to these events. Wildfire activity in the province of Alberta has slowed significantly from its peak earlier in the second quarter and our teams continue to stay focused on restoration efforts. We do not expect to see any negative impact to earnings as a result of these events.
• Significant opportunities for growth continue to be expected in connection with the energy transition, including existing and new opportunities within both ATCO Energy Systems and ATCO EnPower. To support this potential growth, Canadian Utilities intends to explore various financing alternatives including the possibility of creating ATCO EnPower as a separate entity.

Corporate

• On July 13, 2023, ATCO declared a third quarter dividend of 47.56 cents per share or $1.90 per share on an annualized basis per Class I Non-Voting and Class II Voting Share.

(1) ATCO Energy Systems and ATCO EnPower are referred to as Regulated Utilities and Energy Infrastructure, respectively, in the Company's Management's Discussion and Analysis for the six months ended June 30, 2023.

FINANCIAL SUMMARY AND RECONCILIATION OF ADJUSTED EARNINGS

A financial summary of the consolidated subsidiaries of ATCO and a reconciliation of adjusted earnings to earnings attributable to Class I and Class II Shares is provided below:

This news release should be read in concert with the full disclosure documents. ATCO's unaudited consolidated financial statements and management's discussion and analysis for the quarter ended June 30, 2023 will be available on the ATCO website ( www.ATCO.com ), via SEDAR+ ( www.sedarplus.ca ) or can be requested from the Company.

TELECONFERENCE AND WEBCAST

ATCO will hold a live teleconference and webcast at 10:00 am Mountain Time (12:00 pm Eastern Time) on Thursday, July 27, 2023 at 1-800-319-4610. No pass code is required.

Katie Patrick, Executive Vice President, Chief Financial & Investment Officer, will discuss second quarter 2023 financial results and recent developments. Opening remarks will be followed by a question and answer period with investment analysts. Participants are asked to please dial-in 10 minutes prior to the start and request to join the ATCO teleconference.

Management invites interested parties to listen via live webcast at: https://www.atco.com/en-ca/about-us/investors/events-presentations.html .

A replay of the teleconference will be available approximately two hours after the conclusion of the call until August 27, 2023. Please call 1-800-319-6413 and enter pass code 0269. An archive of the webcast will be available on July 28, 2023 and a transcript of the call will be posted on https://www.atco.com/en-ca/about-us/investors/events-presentations.html within a few business days.

ATCO Ltd. and its subsidiary and affiliate companies have approximately 19,000 employees and assets of $25 billion. ATCO is a diversified global corporation with investments in the essential services of Structures & Logistics (workforce and residential housing, innovative modular facilities, construction, site support services, workforce lodging services, facility operations and maintenance, defence operations services, and disaster and emergency management services); Utilities (electricity and natural gas transmission and distribution, and international operations); Energy Infrastructure (energy storage, energy generation, industrial water solutions, and clean fuels); Retail Energy (electricity and natural gas retail sales, and whole-home solutions); Transportation (ports and transportation logistics); and Commercial Real Estate. More information can be found at www.ATCO.com .

We seek Safe Harbor.