Q3 2022 Algonquin Power & Utilities Corp Earnings Call
Yeah.
Please standby your meeting is about to begin.
Good morning, ladies and gentlemen, and welcome to the Algonquin power and Utilities Corp, third quarter 2022 earnings webcast and conference call. Following the presentation, there will be a question and answer session.
I'd now like to turn the meeting over to Mr. Amelia Tsang Vice President of Investor Relations. Please go ahead.
Good morning, everyone. Thanks for joining us this morning for our third quarter 2022 earnings conference call presenting on the call today are a roomba and so that our president and Chief Executive Officer, and Darren Myers, Our Chief Financial Officer also joining US. This morning for the question and answer part of the call will be Jeff Norman our Chief development.
And Johnny Johnston, our Chief operating officer to accompany our earnings call. Today, we have a supplemental webcast presentation available on our website Algonquin power and utilities Dot com, our financial statements and management discussion and analysis are also available on our website as well as on theater before continuing to call. We would like to remind you that our disc.
During the call will include certain forward looking information, including but not limited to our expectations regarding earnings.
Capital expenditures pending acquisition asset recycling transactions and growth at the end of the call I Hope we didn't notice regarding both forward looking information and non-GAAP measures. Please also refer to our most recent MD&A filed on SEDAR and Edgar and available on our website for additional information on these items.
On our call. This morning, we will provide an overview of Q3 performance Darren will follow with the financial results and then we'll conclude with an update on our strategic plan for the business.
Then open the lines for questions I ask that you restrict your questions to two and then re queue. If you have any additional questions to allow others the opportunity to participate and with that I'll turn it over to rune.
Thank you Amelia and a very good morning to those who have been able to join us on the call and online.
Let me start by taking the opportunity to extend a warm welcome to Darren.
Who has now been with Algonquin for almost almost three months.
<unk> has a very strong background and brings deep experience in finance and capital markets. As he was previously the CFO of two public corporations in Canada.
Over the coming months I hope you all have the opportunity to meet and build a relationship with Darren.
Yeah.
Moving to the update for the quarter.
Overall, I would describe our third quarter financial results as Jonathan.
We made progress on our growth initiatives with a year over year increase in adjusted EBITDA.
But at the same time, we experienced pressure from factors such as renewable energy project delays and higher interest rates.
Darren will discuss the results in more detail.
Overall banquets history.
We have driven significant growth at our regulated and renewables businesses.
Looking ahead over the next several decades.
As the industry continues to see an energy transition.
We are well positioned to benefit from a decarbonize this transformation.
That said.
We are currently seeing rapid changes in capital and credit markets.
Most notably a sharp increase in interest rates.
While increasing interest rates is a market wide phenomenon.
Impacts are different by company.
As a capital intensive growth oriented company.
<unk> faces headwinds from higher interest rates and capital market volatility.
We recognize these challenges.
And are committed to identifying and implementing adjustments to reduce our reliance on raising equity.
And to moderate the impact of rising interest rates.
Let me now provide you an update on our three strategic pillars of growth.
Operational excellence.
And sustainability.
By now many of you are familiar with the growth levers we have in our organization.
One growth lever on the regulated side is from our acquisitions.
And I wanted to provide an update on the pending acquisition of Kentucky Power Company and AEP, Kentucky transmission company.
On September 29th.
Liberty utilities on AEP reached an agreement that.
That provides a path towards closing the transaction.
Pending the approval of the transaction by FERC.
The terms of the agreement include a reduction in the purchase price by $200 million.
Approximately $2 8 billion.
Billion.
To approximately $2 6 billion.
The transaction is currently expected to close in January 2023.
We remain firmly committed to completing the acquisition and.
And look forward to bringing the benefits of our local operating model to the customers and communities of eastern Kentucky.
Yeah.
Turning to the growth levers for our renewable business.
One lever is our C&I strategy.
Partnering and collaborating with other companies to help them achieve their environment, social and governance ESG commitments.
During the quarter, we started construction on our first two solar projects with Chevron.
Under our framework agreement.
Which was announced about two years prior to co develop renewable projects and help chevron reduce its carbon intensity.
We continue to be active on the renewables front and construction continues to progress well at our Deerfield too.
Sandy Ridge II wind project.
Which are expected to add a combined total of approximately 200 megawatts of capacity.
All foundations and road works are now complete on both projects.
So we're buying parts are on site at Deerfield too.
With eight of 21 turbines now stopped out.
Sandy ridge to as for a 15th turbines on site.
And is expected to start popping out units in November .
Yeah.
Approximately 2% of our previously disclosed five year capital plan includes solar project.
Including the Chevron project and new market solar.
While we have performed deliveries of panels for the Chevron projects.
The new market solar project continues to be impacted.
By solar module delivery delays.
Due to U S government import restrictions, which is an industry wide issue.
The project already has 24 of 100 megawatts in service.
With construction on the remaining 76 megawatts substantially complete.
Except for module installations.
Module deliveries for the remaining 676 megawatts.
Our expected to restart.
In Q4 2022 or in Q1 2023.
I also want to provide a comment on the passage of the inflation reduction Act in August .
Which has reinforced our strategy of investing in renewable assets.
Not only has it increased PTC and ITC tax good levels associated with wind solar storage and.
And renewable gas projects.
But it has also increased those incentives transferability.
And self monetize this on options.
In short.
The I already has delivered a greater degree of long term certainty required for us to continue to invest in developing our pipeline of greenfield opportunities.
Moving on now to operational excellence.
In a mission critical industry.
Safety and reliability are always key areas of focus.
We strive to keep our customers and communities safe.
While maintaining our system reliability and resiliency.
I want to thank all of our employees for their ongoing focus on safety and preparedness for weather events.
I want to particularly recognize.
I think the electric team in Bermuda.
The crew was able to restore power back to 97% of customers within 48 hours following hurricane Fiona in late September .
Yeah.
In Q3.
Our enterprise wide customer J D power scores came in at seven two.
Representing a seven point increase from the prior quarter.
In a challenging environment.
The increase in commodity prices, we have seen industry scores declined substantially.
While our score is only down one point from last year.
We were able to move against the trend in.
And improve our customer experience versus other utility companies as measured by J D power.
We continue to monitor rising costs.
And the consequent cost of living challenges.
These costs are largely a pass through.
But at the same time, we are acutely aware of the potential impact on customer affordability.
So we track that very closely.
Yeah.
We are helping our customers.
Through educating on options for financial assistance.
And providing energy SBC energy and water conservation programs.
Yeah.
And finally.
We remain firmly committed to sustainability.
Through the inclusion of environmental.
Social and governance values in our corporate strategy and operations.
Earlier this week.
We released our 2022 ESG report.
Which is also available on our corporate website.
The report is organized to meet our ESG disclosures.
<unk> aligned with widely recognized sustainability frameworks.
Highlights of the newly released report include an.
An enhanced diversity equity and inclusion section.
As well as enhanced data driven content.
With the inclusion of more relevant key performance indicators.
Focusing on the company's ESG progress.
Also included is third party verification of scope, one and two emissions data.
Which is a third year in a row.
We've had the data successfully verified.
With that I'll pass it over to Darren will speak to our third quarter 2020 financial results.
Darren Thank you Arun and good morning, everybody.
Very pleased to be here today and excited to be part of Algonquin a company that is creating sustainable energy and water solutions for the future.
My focus since joining the organization has been to meet with as many of our colleagues as possible and come up to speed on financial operations and corporate matters across the company.
I look forward to meeting with all of you in person in the months ahead.
Before I turn to our third quarter performance I did want to spend a moment sharing my philosophy with respect to capital and financing.
Building on the Companys record of strategically investing in growth I believe in a disciplined approach to capital allocation with accountability to ensure we are delivering returns commensurate with the investments we make.
Maintaining an investment grade rating with a strong balance sheet is critical as is ensuring we continue to have a diverse set of funding levers.
I also believe continuous improvement in operational excellence, a critical foundation for profitable growth.
It will be focused on ensuring we have the tools and financial discipline in place to drive profitable accretive growth and to invest in projects that further enhance <unk> core business.
Now turning to the quarter.
Our third quarter, two 2020 to consult consolidated revenue was $666 7 million.
Compared to $528 6 million for the third quarter last year.
Adjusted EBITDA was $276 $1 million, which is up approximately 10% from the $252 million for the same period last year, primarily from growth in our regulated services group.
Third quarter adjusted net earnings was $73 5 million compared to $97 6 million reported last year.
Adjusted net earnings was negatively impacted.
By an increase in interest expense of $23 3 million as a result of funding to support our growth and an increase in the underlying interest rate.
Corporate administrative expenses increased year over year by $8 2 million in the third quarter, primarily from cost to support our growth as well as the timing of certain expenses.
The company recorded increased tax expense year over year or $15 million driven by lower year over year recognition of tax credits, which was mainly a result of revised estimates associated with renewable projects that are now expected to be placed in service in 2023, including new market solar.
In total our Q3 adjusted net earnings per share came in at 11.
Which compared to <unk> 15 in the prior year. In addition to the drivers discussed results were negatively impacted by the increase in the weighted average number of shares outstanding at the end of the quarter due to our earlier equity raised for the Kentucky power transaction.
Looking at results on a segmented basis.
The regulated services group delivered $229 3 million in operating profit in the current quarter, which compares to $195 7 million in the same quarter last year, an increase of $33 6 million or.
Or 17%.
This increase reflects the contribution of Liberty Newark, water, which was acquired in January .
As a reminder, this utility is impacted by seasonality and as expected to earn over 65% of its operating profit during the peak summer months.
The implementation of new rates across certain utility systems, including Empire electric and granite state added approximately $12 million as compared to the prior year.
The renewable energy group reported third quarter divisional operating profit of $71 5 million.
Which was relatively flat compared to the same quarter last year.
Existing facilities added approximately $4 million to operating profit, which was offset by results from the Texas coastal wind facilities due to a higher basis costs and the general transmission constraint imposed by ERCOT.
Now moving onto our capital plan for the year with the Kentucky Power acquisition now expected to close in 2023, we expect to spend approximately $1 6 billion in capital in 2022.
Year to date, we've invested approximately $1 3 billion.
Including approximately $609 million in.
In connection with the closing of Liberty New York water.
During the third quarter, we invested over $200 million of capital into organic investments intended to improve safety reliability and resilience of our network.
The company has access to multiple funding sources included as including asset recycling as evidenced by the recent signing of iron.
<unk> asset recycling transaction.
Total cash proceeds from this transaction are expected to be approximately <unk> <unk>.
<unk> $278 million.
For the U S facilities, and approximately $107 million Canadian for the Blue Hill wind facility in Saskatchewan, Saskatchewan.
We expect to book again, and the anticipated range of approximately $55 million to $60 million in the fourth quarter. When the deal is scheduled to close.
We are pleased with the progress on our inaugural asset recycling transaction. This transaction helps demonstrate the strength of our development platform and the potential value created by our ability to increase the size of the greenfield pipeline and develop and construct projects.
Further with the successful signing up this inaugural asset recycling transaction. The company is currently evaluating further asset recycling opportunity.
As part of the capital plan for 2023 and beyond.
We look forward to providing more details in the months to come.
Our drip program continues to see strong uptake and we reactivated our aftermarket offering program in the third quarter, which raised approximately $40 million.
With the asset recycling transaction projected to close by the end of the year and the delay in the closing of the Kentucky power transaction. The company does not expect to issue any further equity under its ATM program in 2022.
Our liquidity position remains strong ending the quarter with approximately $2 1 billion of available liquidity.
At the end of Q3, approximately 22% of our consolidated debt outstanding was subject to variable interest rates.
A 100 basis point increase in the variable interest rate would impact interest expense by approximately $16 million annually.
Of which an estimated 70% would be related to our regulated business.
For our regulated business interest rate increases are expected to be recovered in the context of future filings rate filings.
From a refinancing perspective, we have several term facilities and approximately $100 million of long term debt maturing throughout 2023.
Given our sufficient liquidity position, we will look to access the capital markets at opportune times continue to access alternative sources of financing and make use of our strong banking relationships to extend term facilities as required.
Moving to our outlook as.
As a result of factors such as higher interest rates the push out to 2023 of the new market Solar project and the recent order from the California Commission revising the <unk> rate case decision to 2023, we're now seeing pressure on 2022 adjusted net earnings per share.
As such we now expect our 2022 adjusted net earnings per share to be within the range of 66.
The 69.
Looking ahead into 2023 broadly speaking, we expect pressure from increasing interest rates and broader macroeconomic conditions the impact of our earnings.
Although we are not providing 2023 guidance. Our current view is that we will continue to drive growth in our regulated operating profit, albeit with some regulatory lag.
While our renewables business is expected to be relatively flat as new program growth is tempered by Lumpiness in our development pipeline.
In light of the changing environment, we are reviewing our plans and targets for 2023 and beyond.
We expect to provide further details at our upcoming Investor day in early 2023.
With that I will now hand, it back to our room to outline our strategic plans.
Thanks Darren.
Before we close out our prepared comments this morning.
I wonder given an update on our strategic initiatives.
The company has continued to execute on strategic priorities, which are positioning us well for the future.
Firstly, we.
We see a path towards closing the Kentucky power acquisition as we now expect to close in January 2023.
Pending FERC approval.
The acquisition fits within our three strategic pillars.
<unk> scale to our electric modality and was priced at an attractive valuation level.
Secondly, we successfully signed an agreement on our inaugural asset recycling transaction.
We are pleased to be partnering with <unk> capital partners.
By setting up 49% ownership interest in three operating wind facilities in the United States.
Selling $5 51 megawatts.
And an 80% ownership interest.
In our 175 megawatt Blue Hill wind facility in Saskatchewan.
We are pleased with the transaction multiples.
The company will continue to oversee day to day operations and earn our recurring management fee.
At the same time.
This transaction provides us with value accretive capital.
That will help finance, our greenfield pipeline of solar.
Lynn.
And storage projects.
Thirdly.
We are focused on operational discipline.
<unk> profitably growing.
But we.
We also recognized potential pressure from increasing interest rates and a more challenging overall capital markets environment to support our growth given.
Given the capital intensity of our business.
Consistent with sound practices.
And taking into account this changing environment, we continued to evaluate.
And refine our growth plans.
I am excited.
<unk> about the prospects for Algonquin regulated and renewables businesses, which are both well positioned to contribute to and benefit from the decarbonization transformation that is currently underway.
And which will only accelerate over the coming years.
We expect that there are some near term macro headwinds for.
But the team is taking a proactive approach to navigate these challenges.
And positioned the company to enhance shareholder value over the long term.
We look forward to discussing this in more detail at our upcoming analyst and Investor day.
Which is scheduled for early 2023.
We will be providing the investment community the opportunity to hear from key members of our leadership team.
For an update on our operations.
Strategic direction.
And future growth plans for Algonquin.
With that.
I will turn the call over to the operator.
For any questions from those on the line.
Thank you, we'll now take questions from the telephone lines. If you have a question and you are using a speaker phone. Please just your handset before making your selection. If you have a question. Please press star one on your devices keypad to cancel the question. Please press star queue. Please press star one at this time, if you have a question.
There'll be a brief pause so participants register thank you for your patience.
And the first question is from Nelson <unk> from RBC capital markets. Please go ahead.
Great. Thanks, and good morning, everyone. First question is just a quick clarification.
In terms of your new EPS guidance range.
Does that include the $55 million to $60 million gain on the asset sales.
Yes, it does.
Okay. Thanks.
And then second question.
In terms of.
Your liquidity position you flagged that you have about $2 1 billion of available liquidity.
As most will most of that be allocated towards the closing of that.
Kentucky Power acquisition, I think that's about $1 $4 billion is that right.
Yes, so we would expect with the proceeds of our sell downs to add liquidity, probably in the range of $2 $5 billion as we exit this year and yes, we would look to use the credit facility to fund the debt transaction as we close it.
And then just a follow up on that.
In terms of.
Your interest rate exposure, you flagged that 22% is subject to floating.
But obviously when you.
On the.
When you draw to close the Kentucky power deal I guess all of that would be subject to floating as well.
Yes at the at the outset.
Until we do other things through next year, So, yes, and Thats part of the reason obviously interest rates have changed dramatically over the last 90 days, which is part of the reason we've given the color on next year with the pressure that the interest rate is causing.
Okay. Thanks, Thanks Darren.
I'll leave it there and get back into queue.
Thank you.
The next question is from Sean Stewart from TD Securities. Please go ahead.
Thanks, Good morning all.
Good question.
On the funding plan.
You referenced lower reliance on raising equity at least in the near to midterm.
And mitigating rate pressure.
You talk about.
Is there any willingness or <unk>.
As equity on the table at all at the valuation levels for the company and can you reference appetite for accelerated capital recycling going forward after the scenario.
Asset sell down.
Hey, Sean.
Yes, great question.
For the first year.
We call it our real asset recycling, because obviously the first time, we've ever done it and.
We liked what we saw there was very strong.
Market interest for long term renewable assets out there and.
And we are certainly pleased with the level of values and we got.
And so given that experience.
It does increase our confidence in being able to continue to do asset recycling.
Much more so than in our past history to fund to maximize.
The equity contribution for our growth.
<unk>.
And maybe I'd just add is as Arun mentioned I think in his prepared remarks, I mean, we would like to have less reliance on the equity markets still accelerating.
The sell downs as one of the tools that we have that our disposal to do that.
Okay. Thanks for that and can you give us any more context on valuation parameters for this initial sell down given that we don't have.
Asset level contribution detail.
The multiples that you can provide on that initiative.
We talked about the gain of in the range of $55 million to $60 million. So that should certainly provide you some color.
And when you look at other multiples, you're probably looking at something in the range of $200 per megawatt when you're talking about from the EV two.
Two megawatt.
Issue.
Okay.
Okay. That's all I have for now thanks.
Thanks, Sean.
Thank you. The next question is from Rupert <unk> from National Bank Financial. Please go ahead.
Hi, and good morning, everyone.
Morning.
On the asset recycling strategy, you've mentioned there is strong interest in the assets or are you seeing any pressure on the prices with the rise in rates or are you still seeing attractive prices for assets and maybe would identify that assure your lowest cost of capital.
We certainly continue to see.
Hi.
That robust level of interest through the.
The process, obviously as interest rates were increasing and despite the rising.
The interest rate environment.
We believe that there is enough.
Interest from long term financial and strategic investors.
<unk>.
Very bright.
Our renewable assets for the long term.
Again, despite the rising interest rates, we continue to see robust interest.
And then the mix of buyers that you've encountered would you say there is more interest in a partial acquisition and a full acquisition of the assets.
And is the pricing the same between those two groups the ones who may one the partial ownership interest versus full ownership.
Sure.
Rupert.
Our.
Okay.
Strategic plan around the renewable assets is really to create that flywheel impact that we've talked about before right.
We have the ability to do totally greenfield.
Projects on the solar or wind or stories and as we de risk. These projects through the development cycle as well as the construction cycle and bring them into operations, we do see that ability to monetize.
Through a partial sell down at the same time, we do want to continue to grow.
Our development platform and are up the operations platform and the added advantages of this strategy is too.
Get the.
A recurring management fees through the through the operating agreement as well so we do see that on the renewable side.
Most attractive options we have.
And we'll continue with that strategy.
Okay very good and then maybe just finally on the dividend. So we do have a.
Software this year payout on an earnings basis anyway, it looks it's going to be a bit stretched maybe I need to wait for the Investor day, but just wondering if you could give us some comments about the.
Payout here and the strategy going forward.
Yes, Rupert it's Darren here, so first of all.
What I would say is obviously the dividend is a very important part of shareholder value for the company. We've previously.
As stated a target of 80% to 90% payout and Theres always going to be and I think the company's done a nice job of talking about this in the past there can be dislocation from from year to year on on where that target.
It comes in.
Where it comes in relative to that target.
Okay. Thank you.
Thank you.
Once again, please press star one if you have a question.
And the next question is from <unk> <unk> from <unk> capital markets. Please go ahead.
Hi, good morning.
Just wanted to go back to the topic of capital recycling I'm wondering if you can give us a bit more detail about.
What assets, you're thinking of potentially for next year.
And is it only on the renewable side.
Or is it also maybe include some of the smaller non core utility.
Operations that you have.
We are not prepared to answer that question currently we are deep into planning.
It is right now and we will certainly give you much more color at our Investor day.
Okay.
Maybe just sticking to the renewable platform should we expect more asset sales on the operating side or you also looking at maybe development.
Development sales.
On the renewable side, just like I talked about earlier I think we have a great development platform and we've done a great job of Derisking all of these products through the development and construction cycle and bring them into operations and we believe that we can maximize value.
By asset sell downs at that Steve.
It is early days of operations so.
That's where we'll probably continue to go.
Okay. Okay got it and just maybe a question on Kentucky I'm wondering if you can talk about.
Sure.
And your plans for that for the business next year I mean key priorities for 2023, and then maybe longer term.
What would need to happen to maybe try to accelerate the greening initiatives within Kentucky.
Well one of the key things for us is to.
And then to work on the <unk>.
ERP that we plan to file in front of the commission in early 2023 and that will certainly give you a lot more visibility into how we plan to.
Serve the customers and communities of Kentucky.
Obviously with the.
With the IRS.
We believe that.
The potential to greening the fleet.
Is an even more compelling value proposition so we will.
We're very excited about.
The benefits we can in fact bring to the hour.
Our customers and communities in Kentucky.
So do you think the IRA maybe helps to accelerate some of those bonds.
Absolutely.
Both accelerated and increased the size of their benefits and benefits to our customers.
Okay got it. Thank you those details at analyst day.
Thanks Maggie.
Thank you. The next question is from Rob Hope from Scotiabank. Please go ahead.
Good morning, everyone.
Just a question on the guidance maybe give a walk.
To the new range from the old range, and maybe kind of comment on what kind of the.
The headwinds could persist into 2023, and I guess also what the original expectation of asset sale gains within that.
Hi, Rob I'm not sure if we're going to be able to give you all that transparency.
I will tell you is that.
The large factors that changed the sharp increase in the interest rates. The pushout of the tax credits those were the large items that changes obviously lots of.
Lots of moving parts within our plan and May change as the year goes on and we're always juggling those things, but those are the two things that lead to changing the guidance and then when we reflect on next year.
Consistent really with the internal plan.
We expect the renewables business to be somewhat flat based on the lumpiness of.
The developments and then we have that continued pressure from the increase.
Increased interest rates I'd say, it's the main driver for next year and we're just attempting to be as transparent as we can and just to be helpful. And we will give more color on that.
Investor Day for 2020, I would just add one more thing to what Darren said, which was also the push out of the order from the California Commission, which we had expected.
In.
In this month in fact in November .
And that has been pushed out to 2023, and so that was the one additional item.
Darren just explained.
Alright I appreciate the color. Thank you and then as a follow up just you mentioned commercial and industrial discussions on the renewable power side can you maybe comment on how rising rates inflationary pressures are being reflected in most conversations I guess also with the higher rate.
We are seeing a wider bid ask spread between where you.
You're tracking pricing should be and where they are or are the is the new environment being reflected in these discussions.
Yes, Rob.
Interestingly, we have not seen any slowdown.
In the C&I off takers plans and strategies in terms of growing the renewables.
Plants.
Commitments in fact.
Given some of the challenges.
Just like what we're seeing in PJM with interconnection due to an even greater.
Demand from from <unk>.
C&I off takers and.
Look we have seen.
The implications of inflation, certainly on our supply agreements as well as on our EPC contract, but that has definitely been more than balanced by the increased prices. We are seeing on the offtake contracts as well and again that has always been a consistent part of our development that tenant.
<unk> two.
Which is to try and signed three agreements the two on the cost side, the supply agreement and the EPC contract and the one on the revenue side, the offtake contracts at close concurrently as possible.
So that we are able to preserve our margins.
I appreciate that thank you.
Sure.
Thank you.
Our next question is from Nelson <unk> from RBC capital markets. Please go ahead.
Great. Thanks.
I just want to touch on your.
I guess your capital plan in terms of.
2023 so.
Can you just give a better color in terms of the flexibility in your in your capital plan I'm just looking at last year's Investor Day presentation, and you had about $1 2 billion of utility Capex forecasted for 2023.
So big picture.
How much of that is discretionary.
Is it fair to say that inflation will be obviously impacting the capital plan.
So Nelson look I mean again, we wanted to be very transparent and tell our investors and analysts about.
The headwinds we are seeing we obviously are working and have a lot of devers.
At our disposal as context, we have always been a fairly capital intensive company and.
For example.
Our capital intensity has been anywhere from three to seven times our dividends. So your question is there room.
Absolutely yes.
Okay, and then just one other quick question.
In terms of your discussions with regulators or are you generally seeing some pushback on affordability and pushed back on rate increases I know there has been news in Nova Scotia about that but I'm just wondering given that you have.
A number of utilities in many regions, what's the general sense you are getting.
Our regulators telling you too.
Defer any discretionary capital are or what's the color.
Customer affordability as all of us.
Top even conversations whether through rising interest rate environment, or a rising inflationary environment or not and we will always focusing on how do we value the best.
And Louis prices.
Customers who weather.
Energy efficiency programs different financial assistance programs and all those kinds of things.
Congresses and continue absolutely.
Have we seen any.
<unk>.
Lots of push backs from our regulators about.
The amount of capital that goes into the regulated entities, we've tried to make sure that we.
Time, the capital and the amount of to make sure that it's.
Fulfilling the requirements.
The requirements of our customers whether for safety with a reliable deals with other requirements. So we're comfortable that we can continue to manage.
The capital needs.
While Mickey.
Mickey ensuring the safety and reliability and customer affordability for our customers.
Great. Thanks, everyone I'll leave it there thanks.
Thanks, Jonathan.
There are no further questions registered at this time I would like to turn the meeting back over to basketball.
Thank you for everyone who's been able to join us.
This morning on the call and with that please.
Please stay on the line for our disclaimer.
Our discussion during this call contains certain forward looking information.
<unk>, but not limited to expectations regarding earnings capital expenditures and the acquisition asset recycling transactions and growth.
Looking information based on certain assumptions, including those described in our most recent MD&A filed on SEDAR and Edgar and available on our website and is subject to risks and uncertainties that could cause actual results to differ materially materially from historical results or results anticipated by the forward looking information.
We're looking information provided during this call speak only as of the date of this call and it's based on the plans belief estimates projections expectations opinions and assumptions of management as of today's date, there can be no assurance that forward looking information will prove to be accurate.
You should not place undue reliance on forward looking information.
Disclaim any obligation to update any forward looking information or can explain any material difference between subsequent athlete.
And such Portland information, except as required by applicable law.
In addition, during the course of this call. We may have referred to certain non-GAAP measures and range, Joan including but not limited to adjusted net earnings adjusted earnings per share or adjusted EPS adjusted EBITDA adjusted funds from operations.
Divisional operating profit there is no standardized measure of such non-GAAP measures and consequently, our method of calculating these measures may differ from methods used by other companies and therefore may not be comparable to similar measures presented by other companies.
For more information about both forward looking information and non-GAAP measures, including a reconciliation of non-GAAP financial measures to the binding GAAP measures. Please refer to our most recent MD&A and theater.
Theater in Canada, and Edgar in the United States and available on our website and that concludes our conference call.
Thank you. The conference has now ended please disconnect your lines at this time and we thank you for your participation.
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Okay.
This conference is no longer being recorded <unk>.
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