EMA

Strategic Portfolio Optimization

• The New Mexico Public Regulation Commission approved the sale of New Mexico Gas to Bernhard Capital Partners, with closing expected in late August 2026. After-tax proceeds of $650 million to $700 million will be recorded in Q3 2026, used to reduce holding company debt and improve financial flexibility.
• The sale of Grand Bahama Power Company closed on May 12, 2026, and is reflected in Q2 2026 results. These two transactions sharpen focus on core regulated utility operations and enhance capacity for high-value growth investments.

Capital Investment and Infrastructure Projects

• Year-to-date 2026 capital deployment totaled more than $1.7 billion, keeping the company on track to deliver its full-year $4 billion capital plan, the largest in company history. The firm targets 7-8% annual rate-based growth through 2030, with an updated capital plan to be released on the Q3 2026 earnings call.

• The Nova Scotia-New Brunswick Transmission Intertie construction is underway after receiving all required approvals, with completion expected in late 2028. The project will strengthen regional grid connections, support renewable energy integration, and improve customer reliability.

• Tampa Electric is developing a mandatory large load customer tariff required by Florida Senate Bill 484, to be filed by October 1, 2026. The tariff ensures new large load customers pay their full share of service costs to protect existing customers while establishing a clear framework for future investment.

• Financial and Credit Profile Updates

• Q2 2026 adjusted earnings per share was $0.69, bringing year-to-date adjusted EPS to $2.06, consistent with 2025's strong performance. Year-to-date adjusted total earnings was $212 million, a $0.10 per share decrease year-over-year.

• Excluding working capital, year-to-date 2026 operating cash flow increased 8% year-over-year. Moody's revised AMIRA's credit outlook to stable during the quarter. The firm remains on track to meet Moody's 12% operating cash flow pre-working capital to debt target in 2026, with the New Mexico Gas sale providing a sustained 50 basis point benefit to the metric.

• Regulatory and Customer Updates

• Effective August 1, 2026, Tampa Electric reduced residential customer rates by 11% to 12% following the removal of the 2024 hurricane storm recovery surcharge.

• Nova Scotia Power is making encouraging progress on securitization of its retiring thermal coal assets, working with the provincial government to finalize a framework that will deliver long-term customer savings while supporting carbon phase-out targets. The team aims to complete the framework by the end of 2026.

• AMIRA continues to see strong population and economic growth across all its service territories, with particularly strong momentum in Florida, which is projected to be the 14th largest global economy if it were a sovereign nation. Encouraging progress on data center development opportunities is advancing through system planning and evaluation in Tampa Electric's service territory.

• The company remains on track to deliver compound annual adjusted EPS growth above its 5-7% target range through 2026, and expects continued growth within the 5-7% range through 2030.
• The 2026 full-year capital plan is projected to be approximately $4 billion, the largest in AMIRA's history, and the company remains on track to meet this target. It expects to maintain 7-8% annual rate-based growth through 2030.
• The company expects to meet Moody's 12% operating cash flow pre-working capital to debt credit threshold in 2026, with the New Mexico Gas sale adding 50 basis points of sustained improvement to the ratio. Management targets an eventual buffer in the mid-to-high 12% range for extra financial flexibility.

1. AmeriEnergy: Year-to-date adjusted earnings were more than $40 million higher than the prior year, driven by favorable early-year market conditions and disciplined execution. Second quarter 2026 earnings were in line with 2025, as lower marketing and trading margins were offset by higher equity earnings from Bear Swamp from 2025 outage business interruption insurance proceeds. No specific revenue contribution percentage was provided.
2. People's Gas: Delivered strong year-to-date and second quarter 2026 results, with Q2 earnings increasing more than $14 million year-over-year. Strength came from new base rates effective January 1 and higher off-system sales, partially offset by higher operating costs and depreciation. No specific revenue contribution percentage was provided.
3. New Mexico Gas: Lower year-to-date earnings primarily due to higher operating, maintenance, and depreciation expenses. Q2 earnings were further impacted by the absence of 2025's favorable weather conditions and lower revenue. The business is pending sale to Bernhard Capital Partners, expected to close in late August 2026. No specific revenue contribution percentage was provided.
4. Tampa Electric: Year-to-date earnings benefited from 2024 rate proceeding approved new rates, colder than normal early 2026 weather, strong operational performance, and higher off-system sales, partially offset by increased depreciation, operating and maintenance costs, and interest expense. In Q2, higher base rates drove revenue growth, partially offset by the same increased costs noted above. No specific revenue contribution percentage was provided.
5. Nova Scotia Power (Canadian Electric Segment): Year-to-date earnings were lower than 2025, driven by lower income tax recovery and regulatory lag from delayed new rate implementation until May 1. These were partially offset by higher sales volumes and modestly favorable weather. In Q2, new May 1 rates and continued customer growth lifted base revenues, partially offset by increased depreciation and interest expense. No specific revenue contribution percentage was provided.
6. Caribbean Utilities (Other Electric Segment): Year-to-date earnings were generally consistent with 2025. Lower income tax expense from a 2026 deferred tax liability adjustment was offset by lower revenues and lost earnings from the completed May 2026 sale of Grand Bahama Power Company. No specific revenue contribution percentage was provided.
7. Corporate Segment: Year-over-year costs reflect higher interest from temporarily carrying both new and maturing debt during 2026. Amera completed a large refinancing program for mid-June debt maturities and a planned hybrid redemption, upsizing hybrid issuance by US $300 million to support future growth. No specific revenue contribution percentage was provided.

No explicit material or new risks were discussed during the call. Management noted progress on addressing credit profile weakness and aligning the portfolio with long-term growth objectives, and did not highlight any operational failures, near-term market risks, or regulatory headwinds beyond the normal execution risk for large capital projects.

Q: Analyst asks for the pre- and post-transaction funds from operations to debt levels for the New Mexico Gas sale, what the target sustainable cushion above Moody's downgrade threshold is, and how the company plans to achieve that target. / A: Jared Green confirms Moody's downgrade threshold is 12% CFO to debt, and the company will be above this threshold in 2026. The New Mexico Gas sale adds 50 basis points of sustained improvement, which creates an initial buffer. Management prefers a 50 basis point cushion initially, and targets moving the ratio to the mid-to-high 12% range over the longer term to add extra financial flexibility for business execution.

Q: Analyst asks for AMIRA's view on the recent Maritime provinces agreement to develop a regional electricity roadmap (including transmission planning) by next spring, and whether federal support for regional transmission projects like the Atlantic Loop has changed. / A: Scott Balfour states the company finds the intergovernmental cooperation on regional infrastructure and a potential regional system operator very constructive and encouraging. Regional large-scale transmission would enable renewable energy development (onshore/offshore wind, potential new nuclear in New Brunswick), support coal phase-out goals, and enable regional economic growth. There is increased urgency and federal support following the designation of Atlantic transmission as a national interest project, and the company is supporting ongoing discussions.

Q: Analyst asks if the new Florida large load customer tariff will act as a catalyst to advance Tampa Electric's data center development opportunities. / A: Scott Balfour explains Senate Bill 484 provides clear regulatory rules for large load customers, which aligns with Tampa Electric's existing approach. The framework ensures no cost shifts to existing customers and addresses requirements like water use, which creates clarity for potential data center customers. The tariff will benefit existing customers by reducing rate pressure while enabling new large load development, so it supports rather than hinders growth of data center opportunities.

Q: Analyst asks if AMIRA is also considering a U.S. re-domiciliation, following a peer's announcement that cited benefits like index inclusion for a firm with majority U.S. assets. / A: No answer was completed on this exchange before the analyst ended the question.

Q: Analyst asks for an update on the Nova Scotia thermal asset securitization process with the provincial government and regulator, including key milestones. / A: AMIRA management confirmed that progress remains on track and the company continues to be encouraged by discussions, with a target to finalize the framework by the end of 2026.

Q: Analyst asks what adjacency growth opportunities outside Florida and Nova Scotia the company is currently evaluating, for example transmission opportunities in Ontario. / A: Scott Balfour says the company is actively pursuing adjacent transmission opportunities that leverage its existing experience. One key opportunity is large-scale regional transmission in Atlantic Canada to support offshore and onshore wind development. In Ontario, the company is actively partnered on the proposed Lake Ontario marine HVDC transmission project between Darlington Nuclear and Toronto's Portlands, which uses near-identical technology to the company's operational Maritime Link project, and the company is awaiting the outcome of the procurement process.