Emera to Acquire TECO Energy Building to a North American Energy Leader Updated September 8, 2015
Agenda Patience Pays Off: Emera Finds Ideal Match TECO Overview Financing Overview Combined Business Profile North American Energy Leader Stakeholders and Timeline Conclusion 3
Significantly accretive to EPS: approx. 5% accretive Our patient approach, and disciplined in first full year1, growing investment criteria have resulted in a to 10% accretive by third pure-play regulated utility transaction full…
Patience Pays Off: Emera Finds Ideal Match 5
Transaction of scale Emera to acquire TECO for USD27.55 per TECO common share (100% cash consideration) Equity purchase price of USD6.5bn 48% premium to TECOs unaffected share price and 25% to TECOs unaffected 52-week high1 Total…
Patience pays off Growth track record has prepared Emera for such a transaction Organic rate base growth Cleaner affordable energy Transmission development Greening of generation; Fuel to asset strategy Balance sheet strength and…
Building to a North American energy leader Acquisition of TECO accelerates achievement of financial goals Earnings per share accretion expected to be approximately 5% in the first full year of operation (2017)1, growing to more than…
Building to a North American energy leader Transaction achieves transformational scale without complexity Tampa Electric operationally similar to Nova Scotia Power One step transformation achieves scale and diversification Pure-play…
TECO Overview 10
TECO company profile Utility service area Tampa Electric Peoples Gas New Mexico Gas Regulated electric Regulated gas Regulated gas Florida utility utility utility Serves 700,000 Largest gas utility Largest gas utility…
Constructive regulatory jurisdictions Tampa Electric and Peoples Gas regulated by Florida Public Service Commission; New Mexico Gas regulated by New Mexico Public Regulation Commission Allowed and achieved ROEs: Tampa Electric is…
Positive economic outlook in Florida and New Mexico Florida New Mexico 3.4% GDP Growth 3.2% 2.7% 2.5% 2.5% 2.5% 1.7% 1.0% 1.0% 0.6% 0.6% 0.1% 2011 2012 2013 2014 2015E 2016E 2011 2012 2013 2014 2015E 2016E…
Financing Overview 14
Financing strategy supports existing credit profile Long term acquisition financing expected to be structured to maintain existing credit rating profile Successful upfront convertible debenture financing provides CAD2.2bn1 of equity;…
Combined Business Profile 16
Pro forma Emera will be a top-20 North American regulated utility North American regulated utility industry: Ranked by asset size (USDbn) 119 Pro forma Emera1 Standalone Emera 74 62 61 Emera becomes one of the largest 56…
Expanded geographic and regulatory diversification Pro forma asset map Pro forma regulatory snapshot Nova Scotia Power Rate base CAD3.7bn Allowed ROE 8.75% 9.25% Equity capitalization 37.5 40.0% Emera Maine (Transmission /…
Increased regulated business mix: Earnings and EBITDA1,2 Pro forma 90% regulated EBITDA1 Total segmented EBITDA (June 30, 2015 LTM) (June 30, 2015 LTM) Caribbean New Mexico 9% 4% Pro Forma EBITDA1 U.S.1.8bn (June 30, 2015 LTM)…
Pro forma capital investment plan to drive growth Pro forma capital expenditure profile (CADmm)1 Total current expected capital investment of approximately CAD6.4bn from 2016-19E 4,234 Additional opportunities expected given scale…
Committing to Local Communities 21
Committing to local communities Customers Commitment to honor all stipulations in respect of 2014 TECO acquisition of New Mexico Gas Commitment to a high level of customer service and operational excellence Continuing to invest in…
Indicative timeline to obtain regulatory approvals and close Q3 2015 Q4 2015 Q1 2016 Mid 2016 TECO shareholder merger Merger announcement approval Initiate regulatory filings in New Mexico and with U.S. New Mexico and…
Conclusion 24
Building to a North American energy leader Significantly accretive to ongoing Emera EPS Accelerates growth of regulated earnings and cash flows Enhances ability to support dividend growth target Expands regulatory platform to…
Appendix 26
Emeras strategy MARKET OPPORTUNITY: Environmental regs & standards Demand for cleaner affordable energy Social & political demand DRIVERS Fuel-source diversification Energy independence & stability EMERA STRATEGY: Leverage the…
Emera today regional energy leader Regional energy leader in Northeast & Caribbean 5-Year average annualized total return (as at August 31, 2015) Emera (CAD) 16.3% S&P 500 Utilities Sector (USD) 11.0% S&P/TSX Capped Utilities…
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