Mr. Brian Shkrobot reports

CANADIAN UTILITIES REPORTS SECOND QUARTER 2023 EARNINGS

Canadian Utilities Ltd. had second quarter 2023 adjusted earnings of $100-million (37 cents per share), $36-million (14 cents per share) lower compared with $136-million (51 cents per share) in the second quarter of 2022.

Second quarter earnings attributable to equity owners of the company reported in accordance with International Financial Reporting Standards (IFRS earnings) were $105-million (32 cents per Class A and Class B share), $46-million (18 cents per Class A and Class B share) lower compared with $151-million (50 cents per Class A and Class B 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, as well as dividends on equity preferred shares of the company, are not included in adjusted earnings.

Recent developments:

• 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 the company's 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.
• The Barlow solar project achieved full commercial operations. The company's 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 megawatts 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 the company's teams continue to stay focused on restoration efforts. Canadian Utilities does 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.
• On July 12, 2023, Canadian Utilities declared a third quarter dividend of 44.86 cents per share or $1.79 per Class A non-voting and Class B common share on an annualized basis.

Financial summary and reconciliation of adjusted earnings

A financial summary and reconciliation of adjusted earnings to earnings attributable to equity owners of the company are provided herein.

This news release should be read in concert with the full disclosure documents. Canadian Utilities' unaudited consolidated financial statements and management's discussion and analysis for the quarter ended June 30, 2023, will be available on the Canadian Utilities website, via SEDAR+ or can be requested from the company.

Teleconference and webcast

Canadian Utilities will hold a live teleconference and webcast at 9 a.m. Mountain Time (11 a.m. Eastern Time) on Thursday, July 27, 2023, at 1-800-319-4610. No pass code is required.

Brian Shkrobot, executive vice-president and chief financial 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 Canadian Utilities teleconference.

Management invites interested parties to listen via live webcast Canadian Utilities' website.

A replay of the teleconference will be available approximately two hours after the conclusion of the call until Aug. 27, 2023. Please call 1-800-319-6413 and enter pass code 0268. An archive of the webcast will be available on July 28, 2023, and a transcript of the call will be posted on Canadian Utilities' website within a few business days.

About Canadian Utilities Ltd.

Canadian Utilities and its subsidiary and affiliate companies have approximately 8,000 employees and assets of $23-billion. Canadian Utilities, an Atco company, is a diversified global energy infrastructure corporation delivering essential services and innovative business solutions in utilities (electricity and natural gas transmission and distribution, and international operations), energy infrastructure (energy storage, energy generation, industrial water solutions and clean fuels) and retail energy (electricity and natural gas retail sales, and whole-home solutions).

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