FYI: HIGH Lights & LOW Lights ;>O In connection with today's investor update call, the Company highlights the following:
- AQN intends to further support its financial foundation, funding growth through a commitment to a BBB credit rating. AQN is focused on a balanced funding plan with no new common equity financings expected through the end of 2024 and reduced capital spending intensity. The Company currently has a strong liquidity position.
- Effective for its first quarter 2023 dividend (expected to be payable in April 2023), AQN intends to lower its quarterly dividend from $0.1808 to $0.1085 per common share, improving financial flexibility. AQN will continue distributions to shareholders with a sustainable dividend that is expected to grow in general alignment with Adjusted Net Earnings per share (see "Non-GAAP Measures" below).
- AQN continues to pursue the Kentucky Power Acquisition. Leveraging AQN's demonstrated track record of operational excellence, the Company's pending acquisition of Kentucky Power Company and AEP Kentucky Transmission Company, Inc. (the "Kentucky Power Acquisition") is expected to generate long-term value for customers and investors alike. On December 15, 2022, the U.S. Federal Energy Regulatory Commission ("FERC") denied approval of the Kentucky Power Acquisition as filed. The parties plan to continue to seek FERC approval of the Kentucky Power Acquisition.
- AQN intends to refocus its portfolio by targeting approximately $1 billion of additional asset sales. Proceeds from the next phase of renewable asset recycling and additional asset sales are expected to be used to pay down debt and continue to fund growth.
- AQN will be suspending its dividend reinvestment plan ("DRIP") for its common shares. Effective for the first quarter 2023 dividend (expected to be payable in April 2023), shareholders participating in the DRIP will begin receiving cash dividends. If the Company elects to reinstate the DRIP in the future, shareholders who were enrolled in the DRIP at its suspension and remain enrolled at reinstatement will automatically resume participation in the DRIP.
- AQN expects Adjusted Net Earnings per common share, excluding gains or losses on asset sales, of $0.55 to $0.61 for the 2023 fiscal year. Please see "Caution Regarding Forward-Looking Information" and "Non-GAAP Measures" below.
All dollar amounts referenced herein are in U.S. dollars unless otherwise noted.
Presentation materials will be available on the Company's website at www.algonquinpowerandutilities.com.