Emera (EMA) Investor Day 2024 summary

Strategic Priorities and Growth Initiatives

• Announced a $20B capital plan for 2025–2029, with nearly 80% focused on Florida to support 2–4% customer growth at Tampa Electric and Peoples Gas, and almost 20% to Nova Scotia.

• Over $13B allocated to grid upgrades, storm hardening, and modernization; $3.5B to renewables and storage; $2B to technology and customer initiatives.

• Grid modernization strategy includes automation, distributed intelligence, advanced technology, and $1B invested in automation.

• Customer-centric innovation features smart meters, advanced field devices, private LTE networks, and digital tools like MyEnergy Insights.

• Commitment to clean energy transition, targeting 80% renewable electricity sales and 53% GHG reduction in Nova Scotia by 2030.

Financial Guidance and Capital Allocation

• Targeting 7–8% rate base CAGR through 2029 and 5–7% adjusted EPS growth through 2027, using $2.96 as the 2024 base.

• Sustainable dividend growth rate adjusted to 1–2% through 2027, with a target payout ratio of ~80% by end of 2027.

• Funding plan leverages 45–50% reinvested cash flow, 30–40% net debt, hybrids, and limited equity, with no ATM equity needed in 2025.

• Material reduction in floating rate and holding company debt, improving earnings visibility and credit metrics.

• 18 consecutive years of dividend increases, with a current yield of 5.4%.

Regulatory and Operational Highlights

• Achieved constructive regulatory outcomes, including Tampa Electric (10.5% ROE midpoint, 54% equity thickness) and Peoples Gas (10.15% ROE, 54.7% equity thickness), and approval for nearly all proposed capital additions.

• Sale of New Mexico Gas Company expected to close in late 2025, with proceeds supporting deleveraging and capital investments.

• Collaboration across operating companies accelerates best practice sharing in renewables, safety, and talent development.

• Safety culture and contractor management reforms have improved outcomes and are foundational to business success.

• Population and economic growth in core markets underpin long-term demand and investment opportunities.