Slides
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Q4 2024 Earnings February 21, 2025
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1 Forward Looking Information, Non-GAAP Measures & Other FORWARD -LOOKING INFORMATION This presentation contains “forward-looking information” (“FLI”) and statements which reflect the current view with respect to the Company’s expectations regarding future growth, results of operations, performance, the expected timing and outcome of the pending sale of NMGC, business prospects and opportunities, and may not be appropriate for other purposes within the meaning of applicable Canadian securities laws. All such information and statements are made pursuant to safe harbour provisions contained in applicable securities legislation. The words “anticipates”, “believes”, “budget”, “could”, “estimates”, “expects”, “forecast”, “intends”, “may”, “might”, “plans”, “projects”, “schedule”, “should”, “targets”, “will”, “would” and similar expressions are often intended to identify FLI, although not all FLI contains these identifying words. The FLI reflects management’s current beliefs and is based on information currently available to Emera’s management and should not be read as guarantees of future events, performance or results, and will not necessarily be accurate indications of whether, or the time at which, such events, performance or results will be achieved. The FLI is based on reasonable assumptions and is subject to risks, uncertainties and other factors that could cause actual results to differ materially from historical results or results anticipated by the FLI. Factors that could cause results or events to differ from current expectations include, without limitation: regulatory and political risk; change in law risk; operating and maintenance risks; changes in economic conditions; commodity price and availability risk; liquidity and capital market risk; changes in credit ratings; future dividend growth; rate base growth; adjusted earnings per common share ("EPS") growth; timing and costs associated with certain capital investments; expected impacts on Emera of challenges in the global economy; estimated energy consumption rates; maintenance of adequate insurance coverage; changes in customer energy usage patterns; developments in technology that could reduce demand for electricity; climate change risk; weather risk, including higher frequency and severity of weather events ; risk of wildfires; unanticipated maintenance and other expenditures; system operating and maintenance risk; derivative financial instruments and hedging; interest rate risk; inflation risk; counterparty risk; disruption of fuel supply; country risks; supply chain risk; environmental risks; foreign exchange (“FX”); regulatory and government decisions, including changes to environmental legislation, financial reporting and tax legislation; risks associated with pension plan performance and funding requirements; loss of service area; risk of failure of information technology (“IT”) infrastructure and cybersecurity risks; uncertainties associated with infectious diseases, pandemics and similar public health threats; market energy sales prices; labour relations; and availability of labour and management resources. Readers are cautioned not to place undue reliance on FLI, as actual results could differ materially from the plans, expectations, estimates or intentions and statements expressed in the FLI. All FLI in this presentation is qualified in its entirety by the above cautionary statements and, except as required by law, Emera undertakes no obligation to revise or update any FLI as a result of new information, future events or otherwise. NON -GAAP FINANCIAL MEASURES AND RATIOS Emera uses financial measures and ratios that do not have standardized meaning under USGAAP and may not be comparable to similar measures presented by other entities. Emera calculates the non-GAAP measures and ratios by adjusting certain GAAP measures for specific items. Management believes excluding these items better distinguishes the ongoing operations of the business and allows investors to better understand and evaluate the business. Refer to the “Non -GAAP Financial Measures and Ratios” section of Emera’s Q4 2024 MD&A which is incorporated herein by reference and can be found on SEDAR+ at www.sedarplus.ca. Reconciliation to the nearest GAAP measure is included in the appendix. OTHER Rate base is a financial measure specific to rate -regulated utilities that is not intended to represent any financial measure as defined by GAAP. The measure is required by the regulatory authorities in the jurisdictions where Emera's rate -regulated subsidiaries or equity investments operate, a summary of which can be found in our presentation. The calculation of this measure as presented may not be comparable to similarly titled measures used by other companies.
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2 Today’s Speaker Scott Balfour President, CEO Emera Inc.
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3 Strong Financial and Operational Performance in 2024 Emera’s regulated utilities continue to be the fundamental growth driver. Contributions from regulated utilities increased 24% in Q4 2024 compared to Q4 2023. Successfully executed on strategic initiatives Achieved Constructive Outcome at Tampa Electric Deployed $3.2 billion of capital investment Delivered on deleveraging Completed Asset Sale Program 1 Based on contributions to adjusted net income from Florida Electric Utilities, Canadian Electric Utilities, Gas Utilities and Infrastructure and Other Electric Utilities. Adjusted net income is a non-GAAP measure. Refer to appendix for reconciliation to closest GAAP measure. 2 Based on normalized credit metrics. Please refer to slide 9
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FLORIDA HAD SECOND HIGHEST POPULTATION GROWTH IN 20242 2.2% 2.0% 1.8% 1.8% 1.7% DC Florida Texas Utah South Carolina 4 Florida’s Population and Economic Growth Drives Investment Demand FLORIDA IS #1 STATE FOR TOTAL NET MIGRATION2 1 Source: Bureau of Economic and business Research (BEBR), University of Florida 2 Source: Economists Outlook: National Association of Realtors 3 Source: flgov.com. Growth from Q1 2019 to Q1 2024 FLORIDA’S 5-YEAR REAL GDP GROWTH3 475.3k 404.8k 152.1k 121.5k 99.4k Florida Texas North Carolina California Arizona Hillsborough County population growth expected to outpace that of Florida’s over the next 10 years1 779 855 2019 2024 406 508 2019 2024 TAMPA ELECTRIC CUSTOMERS (000s) PEOPLES GAS CUSTOMERS (000s) 4.5% CAGR 1.9% CAGR 21.9%
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5 Delivering on Growth, Delivering for Customers 1 Since commencement of solar in service in 2017 2 On an FX adjusted basis, translating both 2023 and 2024 US denominated rate base at 1.35 3 Calculated on a weather-normalized basis 4 Based on most recent Atlantic Canadian average for comparable utilities Delivering Value at Tampa Electric • Solar investments have saved customers $320M USD in avoided fuel costs1 Supporting Growth at Peoples Gas • Installed ~500 miles of mains & service lines in support of 4% customer growth Improving Reliability at Nova Scotia Power • Best all-in reliability year in 30 years3. Power was on 99.9% of the time, outperforming the Atlantic Canadian average4 7% increase in average rate base year-over-year2
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6 Catalysts for Growth Continue $3.4 $4.0 $4.1 $4.4 $4.6 2025F 2026F 2027F 2028F 2029F Tampa Electric Peoples Gas Nova Scotia Power Other $20 Billion 5-year Capital Plan (CAD billions1) 1 USD capital spend translated at an FX rate of 1.35 2 Includes Corporate, Emera Newfoundland and Emera Caribbean 3 Compared to Canadian Utility Peers 2 Emera’s capital program Delivers exceptional value to customers Drives top-tier rate base growth3 Supports target adjusted EPS growth of 5%-7% through 2027 80% Capital plan to be invested in Florida
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7 Today’s Speaker Greg Blunden CFO Emera Inc.
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8 Quarterly Financial Highlights $3.57 $1.71 2023 2024 $1.04 $0.52 Q4 2023 Q4 2024 $2.96 $2.94 2023 2024 Q4 2024 Adjusted EPS1 2024 Adjusted EPS1 $0.63 $0.84 Q4 2023 Q4 2024 Q4 2024 Reported EPS 2024 Reported EPS Note: Millions of Canadian dollars (except per share amounts), 1 Adjusted EPS is a non-GAAP ratio 2 Operating cash flow before changes in working capital, excluding fuel and storm cost deferrals 3 Includes net fuel and storm cost over-recoveries of $678M at Tampa Electric partially offset by net fuel cost under-recoveries of $243M at Nova Scotia Power 4 Includes net fuel and storm cost under-recoveries of $311M at Tampa Electric offset by net fuel cost over-recoveries of $467M at Nova Scotia Power $1,901 $2,038 $156 $435 $2,336 $2,194 2023 2024 2023 Fuel & Storm Cost Deferrals (Net over-recovery) 2024 Fuel & Storm Cost Deferrals (Net over-recovery) 7% Increase in 2024 Operating Cash Flow2 3 4
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100bps Improvement in 2024 Driven By: • $1.2B CAD Labrador Island Link transaction • $500M USD of hybrid notes, treated as 50% equity • $617M CAD securitization of NSPI deferred fuel costs • New base rates at all US utilities 9 Confident in Achieving Threshold Credit Metrics in 2025 2025 Cash Flow Catalysts • $750M USD sale of NMGC • $185M USD new base rates at TEC • Lower corporate costs and other business growth
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$0.63 $0.72 $0.87 $0.91 $0.88 $0.84 $0.84 $0.09 $0.09 $0.06 $0.04 $0.02 $0.05 $0.04 Q4 2023 Adjusted Earnings Per Share Gas Utilties & Infra. Corporate Florida & Other Electric Canadian Electric Foreign Exchange WA Share Dilution Emera Energy Q4 2024 Adjusted Earnings Per Share 10 Regulated Utilities Drive Q4 2024 Adjusted EPS1 Growth Note: Segment impacts exclude the impact of changes in foreign exchange rates 1Adjusted EPS is a non-GAAP ratio; 2 The impact of the timing difference in the valuation of long -term incentive expense and related hedges was ($0.02) in Q4 2024 as compared to $0.04 in Q4 2023 driving an ($0.06) decrease in contributions from corporate compared to Q4 2023. 3 The impact of foreign exchange hedges was ($0.01) in both Q4 2023 and Q4 2024 4 $0.01 from Florida Electric and $0.05 from Other Electric Q4 2024 Adjusted EPS1 Impact of Sold Assets: LIL ($0.06) Impact of LTIP Hege: LTIP ($0.06) 1 1 2,3 4 Weather Impact: TEC $0.03
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$2.96 $2.94 $0.18 $0.05 $0.04 $0.03 $0.02 $0.17 $0.12 $0.05 FY 2023 Adjusted Earnings Per Share Gas Utilities & Infra Foreign Exchange Other Electric Florida Electric Corporate WA Share Dilution Emera Energy Canadian Electric FY 2024 Adjusted Earnings Per Share FY 2024 Adjusted EPS1 11 Record Performance at Gas Utilities Offset Asset Sale Impact Note: Segment impacts exclude the impact of changes in foreign exchange rates 1 Adjusted EPS is a non-GAAP ratio; 2 The impact of foreign exchange hedges was ($0.03) in both 2023 and 2024 3 The impact of the timing difference in the valuation of long -term incentive expense and related hedges was ($0.04) in both 2023 and 2024. Impact of Sold Assts: LIL ($0.12) 1 1 2,3 Weather Impact: TEC ($0.03)
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12 Upcoming Investor Events European NDR • March 17th-21st, 2025 2025 Scotiabank Utilities Conference • March 25th, 2025 BoA Southeast Utilities Conference • April 7th-9th, 2025 Q1 2025 Earnings Release & Call • May 8th, 2025
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Appendix 13
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14 Capital Forecast In millions 2025F 2026F 2027F 2028F 2029F 2025–2029 Total US OPERATIONS Tampa Electric $1,670 1,750 1,850 2,040 2,180 9,490 Peoples Gas $360 430 510 560 500 2,360 Emera Caribbean $140 150 100 90 70 550 SUBTOTAL: US OPERATIONS (USD) $2,170 2,330 2,460 2,690 2,750 12,400 FX rate assumption $1.35 1.35 1.35 1.35 1.35 SUBTOTAL: US OPERATIONS (CAD) $2,930 3,150 3,320 3,630 3,710 16,740 CAD OPERATIONS Nova Scotia Power $480 800 720 740 860 3,600 Emera Newfoundland $5 35 5 5 10 60 Corporate & Other $5 5 5 5 10 30 SUBTOTAL: CAD OPERATIONS (CAD) $490 840 730 750 880 3,690 TOTAL TOTAL CAPITAL FORECAST (CAD) $3,420 3,990 4,050 4,380 4,590 20,430
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15 Average Rate Base Forecast In millions 2023A 2024A 2024A Adjusted FX5 2025F 2026F 2027F 2028F 2029F 2023–2029 CAGR US OPERATIONS Tampa Electric 1.2 $10,200 $11,120 $11,120 $12,030 $13,070 $14,130 $15,260 $16,490 8.3% Peoples Gas1 $2,190 $2,380 $2,380 $2,720 $2,930 $3,180 $3,460 $3,950 10.3% Seacoast3.4 $180 $180 $180 $180 $190 $220 $270 $ 290 8.3% Emera Caribbean $ 710 $720 $720 $1,010 $1,100 $1,090 $1,050 $1,050 6.7% SUBTOTAL: US OPERATIONS (USD) $13,280 $14,400 $14,400 $15,940 $17,290 $18,620 $20,040 $21,780 8.6% FX rate assumption $1.35 $1.44 $1.35 $1.35 $1.35 $1.35 $1.35 $1.35 SUBTOTAL: US OPERATIONS (CAD) $17,930 $20,740 $19,440 $21,520 $23,340 $25,140 $27,050 $29,400 8.6% CAD OPERATIONS Nova Scotia Power $5,350 $5,650 $5,650 $5,670 $6,110 $6,540 $6,840 $7,200 5.1% Maritime Link $1,660 $1,600 $1,600 $1,550 $1,500 $1,460 $1,400 $1,350 -3.4% Emera New Brunswick3 $430 $ 430 $ 430 $410 $390 $370 $350 $ 320 -4.8% SUBTOTAL: CAD OPERATIONS (CAD) $7,440 $7,680 $7,680 $7,630 $8,000 $8,370 $8,590 $8,870 3.0% TOTAL TOTAL AVERAGE RATE BASE $25,370 $28,420 $27,120 $29,150 $31,340 $33,510 $35,640 $38,270 7.1% 1 Capital structures that support the rate base include deferred tax liabilities (DTL), a zero cost -of-capital component of the capital structure in Florida; 2023 capital structures included DTLs of approx. US$1,300 million at Tampa Electric and approx. US$280 million at Peoples Gas 2 Excludes fuel and storm cost deferrals included in rate base; 3 Reflects the capital asset values of the regulated pipeline investments; 4 Includes net investment in capital leases; 5 USD/CAD exchange rate for 2024 updated to reflect forecasted rate
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16 New Mexico Gas Forecasts Due to the pending sale, capital and rate base forecasts for New Mexico Gas have been excluded from Emera's 2025-2029 Capital Plan. In millions of USD 2024A 2025F Capital Forecast $130 $85 Rate Base Forecast $835 $970 Announced agreement for sale of NMGC on August 5, 2024. The sale is pending regulatory and other approvals and is expected to close in late 2025. The hearing on the application is expected to begin on June 23, 2025
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17 Foreign Exchange and Interest Rate Exposure As of January 31, 2025 Approximate % of USD Earnings Hedged Rate 2025 62% $1.36 2026 27% $1.38 2027 13% $1.38 Foreign Exchange Exposure In 2025 on a hedge adjusted basis each change $0.05 change in FX is approximate $0.05 on adjusted EPS As of December 31, 2024 Notional amount (in millions of CAD) Percentage of total debt TOTAL DEBT (SHORT TERM + LONG TERM) Variable Rate @ HoldCos $1,257 6% Variable Rate @ OpCos $1,690 8% Fixed Rate @ HoldCos $6,471 31% Fixed Rate @ OpCos $11,247 55% Debt Detail
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18 Emera Energy Quarterly Adjusted Earnings Contribution 1 Adjusted net income is a non-GAAP financial measure Millions $CAD Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Marketing & Trading $ 55 (24) (4) 19 45 (24) (7) 16 Maritimes Canada (2) 3 – (1) – (1) - (3) Bear Swamp 3 1 7 7 1 2 2 1 TOTAL ADJUSTED NET INCOME 1 $ 56 (20) 3 25 46 (23) (5) 14 Millions $CAD 2017 2018 2019 2020 2021 2022 2023 2024 MARKETING & TRADING Marketing & Trading Adjusted Net Income 1 $ 15 53 5 8 46 65 46 30 Average (2017–2024) $ 34
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19 Non-GAAP Reconciliation (Earnings) Three months ended December 31 Year ended December 31 2024 2023 2024 2023 Florida Electric $ 120 115 $ 644 627 Canadian Electric 77 68 232 247 Gas Utilities & Infrastructure 87 59 267 214 Other Electric Utilities 21 4 48 35 Other, excluding corporate costs 14 20 18 42 Adjusted net income before corporate costs $ 319 266 $ 1,209 1,165 Corporate Costs (73) (91) (360) (356) Adjusted net income attributable to common shareholders $ 246 175 $ 849 809 Gain on sale of LIL, after-tax (1) 22 - 129 - Financing structure wind-up 58 - 58 - Charges related to wind-down costs and certain asset impairments, after-tax (2) (26) - (26) - Charges related to the pending sale of NMGC, after-tax (3)(4) - - (225) - MTM (loss) gain, after-tax (5) (146) 114 (291) 169 Net income attributable to common shareholders $ 154 289 $ 494 978 1 Includes an income tax recovery of $22 million for the three months ended December 2, 2024 and net of income tax expense of $53 million for the year ended December 31, 2024 (2023 – nil) 2 Net of income tax recovery of $6 million for the three months and year ended December 31, 2024 (2023 – nil) 3 Represents (i) $206 million in non-cash goodwill and other impairment charges, after -tax and (ii) $19 million in transaction costs, after -tax for the year ended December 31, 2024 (2023 – nil) 4 Net of income tax recovery of $21 million for the year ended December 31, 2024 (2023 – nil) 5 Net of income tax recovery of $57 million for the three months ended December 31, 2024 (2023 – $44 million expense) and $117 m illion recovery for the year ended 6 December 31, 2024 (2023 – $68 million expense)
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20 Non-GAAP Reconciliation (Adjusted EPS) Three months ended December 31 Year ended December 31 2024 2023 2024 2023 Weighted average shares of common stock outstanding 294.1 277.7 289.1 273.6 Adjusted EPS – basic $ 0.84 0.63 $ 2.94 2.96 Gain on sale of LIL, after-tax 0.07 - 0.45 - Financing structure wind-up 0.20 - 0.20 - Charges related to wind-down costs and certain asset impairments, after-tax (0.09) - (0.09) - Charges related to the pending sale of NMGC, after-tax - - (0.78) - MTM (loss) gain, after-tax (0.50) 0.41 (1.01) 0.61 Reported EPS – basic $ 0.52 1.04 $ 1.71 3.57