CANADIAN UTILITIES REPORTS FIRST QUARTER 2024 EARNINGS

Canadian Utilities Ltd. had first quarter 2024 adjusted earnings of $225-million (83 cents per share), which were $8-million (two cents per share) higher compared with $217-million (81 cents per share) in the first quarter of 2023.

First quarter earnings attributable to equity owners of the Company reported in accordance with International Financial Reporting Standards (IFRS earnings) were $242 million ($0.82 per Class A and Class B share), which were $50 million ($0.19 per Class A and Class B share) lower compared to $292 million ($1.01 per Class A and Class B share) in the first quarter of 2023.

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

On March 27, 2024, the Alberta Utilities Commission (AUC) issued a decision for Natural Gas Transmission's 2024-2026 General Rate Application. In December 2023, a comprehensive Negotiated Settlement Agreement (NSA) was reached with all participating interveners, and an application was filed with the AUC in January 2024. This recent decision approved the NSA for 2024 and 2025 in its entirety but limited the approval to two years.

In the first quarter of 2024, Canadian Utilities changed its operating segment structure to better align current strategy and future growth objectives. This change involved creating a new operating segment, ATCO Australia, which includes natural gas distribution (ATCO Gas Australia) and electricity generation operations (ATCO Power Australia) based in Australia. Previously, ATCO Australia's natural gas distribution operations were reported in the ATCO Energy Systems operating segment and the electricity generation operations were reported in the ATCO EnPower operating segment. In addition, ATCO Australia's corporate office was included in Corporate & Other.

Incurred $316 million in capital expenditures in the first quarter of 2024, of which 94 per cent was invested in our regulated utilities in ATCO Energy Systems and ATCO Australia, and 6 per cent mainly in ATCO EnPower.

Corporate

Effective March 1, 2024, Katie Patrick, Executive Vice President, Chief Financial & Investment Officer, ATCO, broadened her portfolio to include Chief Financial Officer for Canadian Utilities.

On April 11, 2024, Canadian Utilities declared a second quarter dividend of 45.31 cents per share or $1.81 per Class A and Class B 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 is provided below:

Three Months Ended    March 31  
($ millions except share data)                                               2024            2023           
                                                                                                            
Adjusted Earnings                                                            225             217            
Unrealized gains on mark-to-market forward and swap  commodity contracts (1) 11              61             
Rate-regulated activities (2)                                                (7)             9              
IT Common Matters decision (3)                                               (6)             (5)            
Transition of managed IT services (4)                                        -               (9)            
Dividends on equity preferred shares of Canadian Utilities Limited           19              19             
                                                                                                            
Earnings attributable to equity owners of the Company                        242             292            
Weighted average shares outstanding (millions of shares)                     271.0           269.5          

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 March 31, 2024 will be available on the Canadian Utilities website ( www.canadianutilities.com ), via SEDAR+ ( www.sedarplus.ca ) or can be requested from the Company.

TELECONFERENCE AND WEBCAST

Canadian Utilities will hold a live teleconference and webcast with Katie Patrick, Executive Vice President & Chief Financial Officer, Wayne Stensby, Chief Operating Officer, ATCO Energy Systems, and Bob Myles, Chief Operating Officer, ATCO EnPower, at 9:00 am Mountain Time (11:00 am Eastern Time) on Thursday, May 2, 2024 at 1-844-763-8274. No pass code is required.

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 at: https://www.canadianutilities.com/en-ca/investors/events-presentations.html .

A replay of the teleconference will be available approximately two hours after the conclusion of the call until June 2, 2024. Please call 1-855-669-9658 and enter pass code 0791.

Canadian Utilities Limited and its subsidiary and affiliate companies have approximately 9,000 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. ATCO Energy Systems delivers energy for an evolving world through its electricity and natural gas transmission and distribution, and international operations segments. ATCO EnPower creates sustainable energy solutions in the areas of renewables, energy storage, industrial water and clean fuels. ATCO Australia develops, builds, owns and operates energy and infrastructure assets. ATCOenergy and Rumi provide retail electricity and natural gas services, home maintenance services and professional home advice that bring exceptional comfort, peace of mind and freedom to homeowners and customers. More information can be found at www.canadianutilities.com .

We seek Safe Harbor.