Mr. Chris Huskilson reports

ALGONQUIN POWER & UTILITIES CORP. ANNOUNCES 2023 FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS

Algonquin Power & Utilities Corp. has released its financial results for the fourth quarter and full year ended Dec. 31, 2023. All amounts are shown in United States dollars, unless otherwise noted.

"Two thousand twenty-three was a decision year for the company, with the termination of the Kentucky Power transaction and announcement of the planned refocusing of the company, including the proposed sale of our renewables business. We expect 2024 to be a transition year as we seek to reposition the company towards a more efficient operating profile and a renewed strategy for the future," said Chris Huskilson, interim chief executive officer of Algonquin Power. "Despite headwinds in 2023, we made progress. Our regulated services group posted double-digit divisional operating profit growth, primarily from new rate implementations, reflecting recovery of and returns on investments we made in our systems. Additionally, our renewables business placed in service 453 MW [megawatts] of wind and solar generation. We are excited that in the midst of taking steps to simplify and focus the company, our two businesses continued to grow."

Fourth quarter and full year financial results:

• Fourth quarter adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $334.3-million, an increase of 13 per cent;
• Fourth quarter adjusted net earnings of $115.5-million, an increase of 18 per cent;
• Fourth quarter adjusted net earnings per common share of 16 cents, an increase of 14 per cent;
• Annual adjusted EBITDA of $1,235.4-million, an increase of 4 per cent;
• Annual adjusted net earnings of $372-million, a decrease of 11 per cent;
• Annual adjusted net earnings per common share of 53 cents, a decrease of 13 per cent, in each case on a year-over-year basis.

Fourth quarter and full year 2023 highlights:

• Regulated growth from new rate implementations -- the regulated services group recorded year-over-year growth in divisional operating profit of 10.5 per cent due to the implementation of new rates and recovery of investments at the company's CalPeco, Empire, Granite State and Bermuda Electric systems, as well as the Park Water and Pine Bluff Water systems. During March and April, 2023, the regulated services group received final rate case orders at its Apple Valley Water, Park Water and CalPeco Electric systems, with aggregate annual revenue increases of $29.6-million, including approximately $9.7-million due to increases in rate base. This evidences the company's continuing strategy and ability to recover invested capital for the benefit of customers.
• New renewable energy facilities constructed within the renewable energy group -- the renewable energy group placed in service approximately 453 MW of new wind and solar generation in 2023. This was composed primarily of the approximately 108 MW Shady Oaks II wind facility located in Illinois, the approximately 112 MW Deerfield II wind facility located in Michigan, the approximately 88 MW Sandy Ridge II wind facility located in Pennsylvania, the approximately 100 MW New Market solar facility located in Ohio and the 25 MW Hayhurst solar facility in New Mexico.

Subsequent events:

• Simplification of development activities -- on Jan. 4, 2024, the company purchased the remaining 50 per cent of the equity of Liberty Development JV Inc. and Liberty Development Energy Solutions BV for $7.9-million as part of the company's continuing effort to simplify the business.
• Issuance of approximately $305.5-million of securitized utility tariff bonds -- on Jan. 30, 2024, Empire District Bondco LLC, a wholly owned subsidiary of The Empire District Electric Company, completed an offering of approximately $180.5-million of aggregate principal amount of 4.943 per cent securitized utility tariff bonds with a maturity date of Jan. 1, 2035, and $125-million aggregate principal amount of 5.091 per cent securitized utility tariff bonds with a maturity date of Jan. 1, 2039, to recover previously incurred qualified extraordinary costs associated with Winter Storm Uri and energy transition costs related to the retirement of the Asbury generating plant.
• Issuance of $850-million senior unsecured notes -- on Jan. 12, 2024, Liberty Utilities Co. completed an offering of $500-million aggregate principal amount of 5.577 per cent senior notes due Jan. 31, 2029, and $350-million aggregate principal amount of 5.869 per cent senior notes due Jan. 31, 2034. The net proceeds were used to repay indebtedness.

Outlook:

• Financial outlook -- due to the uncertainty regarding the planned sale of its renewable energy business, the company is not providing adjusted net earnings per common share guidance for 2024.

Algonquin Power will file its annual consolidated financial statements, annual management's discussion and analysis (the annual MD&A), and annual information form, each for the year ended Dec. 31, 2023, with the applicable Canadian securities regulatory authorities. Copies of these documents and other supplemental information on Algonquin Power are made available on its website, and in its corporate filings on SEDAR+ (for Canadian filings) and EDGAR (for United States filings). A hard copy of Algonquin Power's annual consolidated financial statements for the year ended Dec. 31, 2023, can be obtained free of charge upon request to InvestorRelations@APUCorp.com. Algonquin Power will also file its Form 40-F for the year ended Dec. 31, 2023, with the U.S. Securities and Exchange Commission (SEC).

Earnings conference call

Algonquin Power will hold an earnings conference call at 8:30 a.m. Eastern Time on Friday, March 8, 2024, hosted by Mr. Huskilson, interim chief executive officer, and Darren Myers, chief financial officer.

Date:  Friday, March 8, 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:  7706966

Webcast:  access at the company's website

About Algonquin Power & Utilities Corp.

Algonquin Power & Utilities, parent company of Liberty, is a diversified international generation, transmission and distribution utility with approximately $18-billion of total assets. Algonquin Power is committed to providing safe, secure, reliable, cost-effective and sustainable energy and water solutions through its portfolio of generation, transmission and distribution utility investments to over one million customer connections, largely in the United States and Canada. In addition, Algonquin owns, operates and/or has net interests in over four gigawatts of installed renewable energy capacity.

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