Mr. Chris Huskilson reports

ALGONQUIN POWER & UTILITIES CORP. ANNOUNCES CEO UPDATE AND 2024 FIRST QUARTER FINANCIAL RESULTS

Algonquin Power & Utilities Corp.'s board of directors has appointed Chris Huskilson as chief executive officer with immediate effect. Mr. Huskilson, who has been interim CEO since August, 2023, will continue as a member of the board. Mr. Huskilson's CEO appointment has been made following a thorough search conducted by the board with the support of a nationally recognized search firm.

Kenneth Moore, the chair of the board, said: "The board is extremely pleased to have selected Chris based on the progress being made at this important time in the company's history. Chris has both a tremendous track record and significant industry experience, making him well suited to lead AQN as it continues its strategic transformation into a pure-play regulated utility. The board and Chris continue to work on the longer-term CEO succession plan."

Mr. Huskilson said: "After serving as interim CEO for the last nine months, I am more convinced than ever that we are on the right path. I see opportunity throughout the business to improve our consistency and profitability as we look to successfully execute on the sale of our renewables business and focus on our regulated utilities as a stand-alone business."

First quarter financial results

The company also announced today financial results for the first quarter ended March 31, 2024. All amounts are shown in United States dollars, unless otherwise noted.

"In the first quarter, we continued our efforts to simplify the business and transition towards a pure-play regulated strategy, which included successfully winding down our international non-regulated development activities and our North American development joint venture," said Mr. Huskilson. "Our renewables results came in on target and we continue to make progress on the sale with an unchanged timetable. Although I am pleased to see growth in our regulated net utility sales and divisional operating profit, we have more work ahead to reduce our cost structure and focus on the regulated services group as a stand-alone business."

Mr. Huskilson continued: "It was also a busy quarter on the capital front, having closed approximately $2.3-billion in financing transactions. We appreciate investor confidence in the company and the work we are doing to create long-term value for shareholders."

• First quarter net utility sales and net energy sales of $519.9-million, an increase of 6 per cent;
• First quarter adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $344.3-million, an increase of 1 per cent;
• First quarter adjusted net earnings of $95.6-million, a decrease of 20 per cent;
• First quarter adjusted net earnings per common share of 14 cents, a decrease of 18 per cent, in each case on a year-over-year basis.

First quarter 2024 highlights:

• Regulated divisional operating profit growth from new rate implementations and recovery of investments -- the regulated services group recorded year-over-year growth in divisional operating profit of 5 per cent. This increase is primarily due to the implementation of new rates and recovery of investments made at the CalPeco, Empire Oklahoma and Granite State Electric Systems, as well as improved wind production at Empire Electric.
• Update of new renewable energy facilities within the renewable energy group -- during the first quarter, the company purchased the remaining 50-per-cent equity interest in the Sandy Ridge II wind facility.
• Over $2.3-billion of financing transactions closed, including successful remarketing of senior notes, underpins investor confidence in Algonquin -- the first quarter of 2024 was busy on the financing front for Algonquin. Successful initiatives included:
  • Issuance of approximately $850-million of senior notes -- on Jan. 12, 2024, Liberty Utilities Co. completed an offering of $850-million of senior notes. Net proceeds of the offering were used to repay indebtedness;
  • Issuance of approximately $305.5-million of Securitized Utility Tariff Bonds -- on Jan. 30, 2024, Empire District Bondco LLC completed an offering of approximately $305.5-million of securitized utility tariff bonds to recover previously incurred qualified extraordinary costs associated with the February, 2021, extreme winter storm conditions experienced in Texas and parts of the central United States and energy transition costs related to the retirement of the Asbury generating plant;
  • Remarketing of 1.18 per cent senior notes due 2026 -- on March 28, 2024, the company successfully remarketed its $1,150-million of previously issued senior notes related to its green equity units. The proceeds from the remarketing were used, as an interim step prior to settlement of the purchase contracts issued as a component of the green equity units, to purchase a portfolio of treasury securities maturing on June 13, 2024, and funds generated upon maturity of the treasury portfolio are expected to be used on June 17, 2024, to settle the purchase contracts.
• Progress on business simplification strategy -- during the first quarter, the company continued to execute on its previously stated goal of simplifying the overall business. These initiatives included purchasing the 50-per-cent interest previously owned by Ares in Liberty Development Energy Solutions BV and Liberty Development JV Inc., which the company had used as its non-regulated development platform, selling its interest in three development solar assets in Spain to Atlantica Sustainable Infrastructure PLC, and selling its 100-per-cent equity interest in the 74.9-megawatt thermal facility in Windsor Locks, Conn.
• Quarterly adjusted net earnings per share growth offset by simplification and growth financing -- for the quarter, the company's adjusted net earnings per share were down three cents year-over-year, with growth in the company's regulated business offset by the winding down of the company's development joint venture, increased interest expense to support growth, and a resumption of tax credit recoveries to a more normalized run rate versus the same period in the prior year.

Algonquin's unaudited interim consolidated financial statements for the three months ended March 31, 2024, and management discussion and analysis for the three months ended March 31, 2024, will be available on its website and in its corporate filings on SEDAR+ (for Canadian filings) and EDGAR (for U.S. filings).

Earnings conference call

Algonquin will hold an earnings conference call at 8:30 a.m. Eastern Time on Friday, May 10, 2024, hosted by chief executive officer, Mr. Huskilson, and chief financial officer, Darren Myers.

Date: Friday, May 10, 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: 2875788

Presentation also available on Algonquin's website.

About Algonquin Power & Utilities Corp. and Liberty

Algonquin Power & Utilities, parent company of Liberty, is a diversified international generation, transmission and distribution utility with approximately $18-billion of total assets. Algonquin 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. Algonquin's common shares, preferred shares, Series A, and preferred shares, Series D, are listed on the Toronto Stock Exchange under the symbols AQN, AQN.PR.A and AQN.PR.D, respectively. Algonquin's common shares, Series 2019-A subordinated notes and equity units are listed on the New York Stock Exchange under the symbols AQN, AQNB, and AQNU respectively.

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