Altius Renewable Royalties Reports Q3 Expected Attributable Royalty Revenue(1) of $1.6 Million, Increases Guidance

Rhea-AI Summary

Altius Renewable Royalties Corp. (ATRWF) anticipates reporting Q3 2022 attributable royalty revenue of $1.6 million, a significant increase from $0.03 million in Q3 2021 and $0.6 million in Q2 2022. This surge is primarily driven by high summer merchant power prices. The joint venture Great Bay Renewables has raised its annual revenue guidance to between $6.5 million and $7.0 million, up from a prior estimate of $4.5 million to $5.5 million. Three new projects are expected to commence operations in the next six months, contributing to further revenue growth.

Positive

• Q3 2022 attributable royalty revenue expected to be $1.6 million, up from $0.03 million in Q3 2021.
• Annual royalty revenue guidance increased to $6.5 - $7.0 million from $4.5 - $5.5 million.
• Three additional projects with a capacity of 975 megawatts expected to begin commercial operations within six months.

Negative

• None.

All $ references in US unless otherwise indicated

ST. JOHN’S, Newfoundland and Labrador--(BUSINESS WIRE)-- Altius Renewable Royalties Corp. (TSX: ARR) (OTCQX: ATRWF) (“ARR”, the “Company”, or the “Corporation”), expects to report Q3 2022 attributable royalty revenue of $1.6 million, which compares to $0.03 million of attributable royalty revenue recorded in Q3 2021 and $0.6 million in Q2 2022. Revenue in the third quarter exceeded the total revenue for the first half of the year, driven primarily by strong summer merchant power prices. As a result, the 50% owned Great Bay Renewables (“GBR”) joint venture has increased its 2022 annual royalty revenue guidance to $6.5 - $7.0 million from the $4.5 – $5.5 million previously provided.

Frank Getman, CEO of GBR, commented, “We are pleased with the performance of our growing portfolio of diversified renewable energy royalties. We are benefitting from partial exposure in our royalty portfolio to higher than anticipated merchant power prices, particularly in Texas.” Getman added, “Three additional projects with a total capacity of 975 megawatts are expected to hit commercial operations over the next six months, thus adding to the revenue growth in 2023. In addition, with a significant portfolio of advancing development stage projects, we believe we are well positioned for continued revenue growth for the foreseeable future.”

Third Quarter Financial Results Conference Call and Webcast Details

A conference call and webcast will be held on November 8, 2022 at 10:00 am ET to provide an update and to offer an open Q&A session for analysts and investors. Access details are as follows:

Date and time: November 8, 2022, 10 am ET
Toll Free Dial-In Number: +1 888 886 7786
International Dial-In Number: +1 416 764 8658
Conference Call Title and ID: ARR Q3 2022 Results, ID 44414561
Webcast Link: Q3 2022 Financial Results

Non-GAAP Financial Measures

¹Management uses the following non-GAAP financial measure in this release: attributable royalty revenue. Attributable revenue is defined by the Corporation as total revenue and other income from the condensed consolidated financial statements plus the Corporation’s proportionate share of revenue in the joint venture. Attributable royalty revenue is the portion of total revenue that derives from royalty revenue, rather than interest or other revenue. The Corporation’s key decision makers use attributable royalty revenue as a basis to evaluate the business performance. The joint venture revenue and general and administrative costs are not reported gross in the consolidated statement of (loss) since they are generated in a joint venture in accordance with IFRS 11 Joint Arrangements which requires net reporting as an equity pick up. Management uses this measure to reflect the Corporation’s economic interest in its operations prior to the application of equity accounting to help allocate financial resources and provide investors with information that it believes is useful in understanding the scope of its business, irrespective of the accounting treatment. Details of the joint venture’s operations are disclosed in Note 4 to the Corporation’s condensed consolidated financial statements.

About ARR

ARR is a renewable energy royalty company whose business is to provide long-term, royalty-level investment capital to renewable power developers, operators, and originators. ARR currently has 31 renewable energy royalties representing 665 MW of renewable power on operating projects and an additional approximately 6 GW on projects in the development phase, across several regional power pools in the U.S. The Corporation also expects future royalties from GBR’s investments in Bluestar Energy Capital and Hodson Energy. The Corporation combines industry expertise with innovative, partner-focused solutions to further the growth of the renewable energy sector as it fulfills its critical role in enabling the global energy transition.

Forward-looking information

This news release contains forward‐looking information. The statements are based on reasonable assumptions and expectations of management and ARR provides no assurance that actual events will meet management's expectations. In certain cases, forward‐looking information may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would". Although ARR believes the expectations expressed in such forward‐looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those projected. Readers should not place undue reliance on forward-looking information. ARR does not undertake to update any forward-looking information contained herein except in accordance with securities regulation.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221016005048/en/

Flora Wood

Email: Flora@arr.energy

Tel: 1.877.576.2209

Direct: 1.416.346.9020

Ben Lewis

Email: Ben@arr.energy

Tel: 1.877.576.2209

Source: Altius Renewable Royalties Corp.

FAQ

What are the Q3 2022 financial results for Altius Renewable Royalties Corp. (ATRWF)?

Altius Renewable Royalties Corp. expects to report Q3 2022 attributable royalty revenue of $1.6 million.

How much has Altius Renewable Royalties Corp. increased its annual royalty revenue guidance?

The annual royalty revenue guidance has been raised to $6.5 - $7.0 million from the previous $4.5 - $5.5 million.

When will Altius Renewable Royalties Corp. hold its Q3 2022 results conference call?

The conference call is scheduled for November 8, 2022, at 10:00 am ET.

What factors contributed to the revenue increase for Altius Renewable Royalties Corp.?

The revenue increase was primarily driven by strong summer merchant power prices.

How many megawatts are expected to be added from new projects for ATRWF?

Three additional projects with a total capacity of 975 megawatts are expected to commence operations.