Membership Offer - The company is offering a discount on annual memberships with an 11-month money-back guarantee for first-time members [1] - The Conservative Income Portfolio targets high-value stocks with the highest margins of safety and uses options to lower investment volatility [1] - The Enhanced Equity Income Solutions Portfolio aims to reduce volatility while generating yields of 7-9% [1] Portfolio Strategies - The Covered Calls Portfolio focuses on lower volatility income investing with an emphasis on capital preservation [2] - The Fixed Income Portfolio targets securities with high income potential and significant undervaluation compared to peers [2] Analyst Team - The Trapping Value team has over 40 years of combined experience in generating options income while prioritizing capital preservation [3] - The team manages the Conservative Income Portfolio in partnership with Preferred Stock Trader, featuring two income-generating portfolios and a bond ladder [3] Analyst Position - The analyst holds a beneficial long position in Algonquin Power and Utilities Corp (AQN) through stock ownership, options, or other derivatives [4]

Disclosure and Ownership - The author holds a beneficial long position in AQN through stock ownership, options, or other derivatives [1] - The author owns European/Scandinavian tickers for companies mentioned in their articles and Canadian tickers for Canadian stocks they write about [2] Article Context and Limitations - The article is not financial advice, and the author is not a licensed financial advisor [2] - Investors are expected to conduct their own due diligence and research before making any investment decisions [2] - Short-term trading, options trading, and futures trading are considered high-risk and may not be suitable for inexperienced investors or those with limited capital [2] Seeking Alpha's Position - Seeking Alpha is not a licensed securities dealer, broker, or investment adviser [3] - The views expressed in the article may not reflect those of Seeking Alpha as a whole [3] - Seeking Alpha's analysts include both professional and individual investors who may not be licensed or certified by any regulatory body [3]

Core Viewpoint - Investors in Algonquin Power & Utilities Corp. (AQN) should closely monitor the stock due to significant movements in the options market, particularly the high implied volatility of the Feb 21, 2025 $2.5 Put option [1] Company Analysis - Algonquin Power & Utilities currently holds a Zacks Rank of 4 (Sell) within the Utility - Electric Power industry, which is positioned in the bottom 43% of the Zacks Industry Rank [3] - Over the past 60 days, no analysts have raised their earnings estimates for the current quarter, while one analyst has lowered the estimate, resulting in a decrease of the Zacks Consensus Estimate from 9 cents per share to 8 cents [3] Options Market Insights - The high implied volatility surrounding Algonquin Power & Utilities shares indicates that options traders are anticipating a significant price movement, which could suggest an upcoming event that may lead to a substantial rally or sell-off [2][4] - Options traders often seek out options with high implied volatility to sell premium, a strategy that aims to benefit from the decay of option value, hoping that the underlying stock does not move as much as expected by expiration [4]

Core Viewpoint - Algonquin Power & Utilities Corporation has completed the sale of its non-regulated renewable energy business for up to $2.5 billion, aiming to focus on its regulated utility operations [1][3]. Group 1: Details of the Renewable Business - The renewable business consists of wind and solar assets across the U.S. and Canada, with 44 operating assets generating over 3,000 megawatts (MW) and an 8,000 MW pipeline of projects in development [2]. - Approximately 2,700 MW of the assets are located in the U.S., while 300 MW are in Canada [2]. Group 2: Focus on Regulated Business - The net proceeds from the sale will be used to reduce existing debt and strengthen the company's balance sheet [3]. - This transaction, along with the recent sale of a 42.2% stake in Atlantica Sustainable Infrastructure, is part of the company's strategy to become a simpler, pure-play regulated utility, enhancing its focus on energy transition [3]. Group 3: Stock Price Performance - In the past month, Algonquin Power's shares have decreased by 6.7%, slightly underperforming the industry average decline of 6.6% [5]. Group 4: Zacks Rank and Comparisons - Algonquin Power currently holds a Zacks Rank of 4 (Sell), while competitors NiSource and IDACORP have better rankings at 2 (Buy) [6]. - NiSource's long-term earnings growth rate is projected at 7.45%, with a 2025 EPS estimate indicating a 7.3% year-over-year increase [7]. - IDACORP's long-term earnings growth rate is estimated at 8.31%, with a 2025 EPS estimate showing an 8.3% year-over-year increase [7].

Q3 2024 Earnings Conference Call November 7, 2024 | 10:00 a.m. ET Algonquin Forward-Looking Statements Certain written statements included herein and/or oral statements made in connection with the presentation contained herein constitute "forward-looking information" within the meaning of applicable securities laws in each of the provinces and territories of Canada and the respective policies, regulations and rules under such laws and "forward-looking statements" within the meaning of the U.S. Private Secur ...

Financial Data and Key Metrics Changes - The company reported year-over-year growth in revenue and adjusted EBITDA of 1% and 4%, respectively, primarily due to the implementation of new rates across several regulated business facilities [28] - Adjusted net earnings and adjusted net earnings per share decreased by 5% and 20%, respectively, due to higher operating expenses, depreciation, and interest expense [29] - The Q3 balance sheet debt, including continuing and discontinued operations, is $8.7 billion, which increased from Q2 [31] Business Line Data and Key Metrics Changes - Adjusted EBITDA growth for the regulated business in Q3 was up 3% year-over-year, driven by new rates and higher HLBV income [30] - The company has 13 pending rate reviews, representing approximately $205 million in revenue requests [26] Market Data and Key Metrics Changes - The company expects to receive approximately $1.7 billion to $1.8 billion in net proceeds from the renewable sale after satisfying off-balance sheet construction loan obligations and other renewable liabilities [31] - The Hydro business represents an annual EBITDA run rate of approximately $25 million [13] Company Strategy and Development Direction - The company is transitioning to a pure-play regulated utility, having made strategic decisions to simplify and focus the business [9] - The company plans to monetize its Hydro fleet as part of the separation transaction, with the sale process expected to begin in the first half of 2025 [13] - The company aims to recover and earn a return on capital already invested but not yet captured in authorized rates, with three large rate cases expected to improve returns [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the actions being taken to position the business for customer value and growth through simplification and focus [13] - The company anticipates that 2025 will be the first year focused entirely on the regulated business, with short-term results impacted by the timing of rate cases [23] - Management is optimistic about the potential for improved rate case outcomes and leveraging the new IT platform for operational efficiency [23] Other Important Information - The company has filed rate cases for Empire Electric in Missouri and CalPeco in California, with expected revenue increases of approximately $92 million and $39.8 million, respectively [20][25] - The company is not providing 2025 guidance at this point but plans to offer guidance when reporting fourth-quarter results [35] Q&A Session Summary Question: Can you provide more color on the remaining $300 million in rate case submissions? - Management indicated that they will continue to file rate cases but did not provide specific details on the remaining amount [40] Question: What impact could the Empire rate case have on 2025? - Management noted that while the rate case was just filed, historical resolution times suggest a small impact in 2025, with more significant benefits expected in 2026 [42] Question: Any updates on the Hydro process? - Management confirmed there have been expressions of interest but stated that the process has not yet started, focusing first on larger asset sales [50] Question: How will proceeds from Hydro assets be utilized? - Management emphasized maintaining flexibility and self-funding as priorities, with no immediate plans for share buybacks [55]

Revenue and Income - Revenue from regulated electricity distribution for Q3 2024 was $361,397, an increase of 2.1% compared to $354,296 in Q3 2023[2] - Regulated natural gas distribution revenue decreased by 10.1% to $65,722 in Q3 2024 from $73,051 in Q3 2023[2] - Operating income for Q3 2024 was $111,077, down 11.3% from $125,283 in Q3 2023[2] - Total net revenue for the three months ended September 30, 2024, was $560,326, compared to $550,915 for the same period in 2023[54] - Net revenue for the nine months ended September 30, 2024, was $1,306,776, compared to $1,274,720 for the same period in 2023, indicating an increase of about 2.5%[58] - Total revenue for the nine months ended September 30, 2024, was $1,694,752, a decrease from $1,776,510 in the same period of 2023, representing a decline of approximately 4.6%[57] Net Loss and Earnings - Net loss attributable to common shareholders for Q3 2024 was $1,308,392, compared to a loss of $176,666 in Q3 2023[2] - Basic and diluted net loss per share from continuing operations was $(1.71) in Q3 2024, compared to $(0.26) in Q3 2023[2] - Comprehensive loss for Q3 2024 was $(1,304,893), compared to $(205,287) in Q3 2023[5] - The net loss for the three months ended September 30, 2024, was $1,305,699, compared to a net loss of $174,549 for the same period in 2023, reflecting a significant increase in losses[8] - The diluted net loss per share for the three months ended September 30, 2024, was $(1.70), compared to $(0.26) for the same period in 2023[47] - The company reported a total net loss attributable to common shareholders of $(1,308,392) for the three months ended September 30, 2024[47] Assets and Liabilities - Total assets as of September 30, 2024, were $17,788,645, a decrease from $18,373,961 as of December 31, 2023[6] - As of September 30, 2024, total liabilities amounted to $17,788,645, a decrease from $18,373,961 on December 31, 2023, reflecting a reduction of approximately 3.2%[7] - The total equity attributable to shareholders decreased to $4,843,256 from $5,039,565, indicating a decline of approximately 3.9%[7] - The total equity as of September 30, 2024, was $6,352,682, down from $6,624,408 at the end of 2023, a decrease of approximately 4.1%[11] - Total assets held for sale as of September 30, 2024, amounted to $3,472,131, a decrease from $4,160,922 as of December 31, 2023[76] Cash and Liquidity - Cash and cash equivalents increased to $64,341 as of September 30, 2024, from $25,051 at the end of 2023[6] - As of September 30, 2024, total liquidity and capital reserves amounted to $1,890,842, an increase from $920,199 as of December 31, 2023[33] - The company had $1,891,301 in liquidity available under its credit facilities as of September 30, 2024, compared to $934,596 at the end of 2023[33] Debt and Interest Expenses - The company's long-term debt increased to $7,211,946 as of September 30, 2024, compared to $6,878,299 at the end of 2023, representing an increase of about 4.8%[7] - Long-term debt interest expenses for the three months ended September 30, 2024, were $77,239, compared to $54,422 for the same period in 2023, reflecting a year-over-year increase of 42%[34] - The company issued $500,000 of senior notes with a 5.577% interest rate due January 31, 2029, and $350,000 of senior notes with a 5.869% interest rate due January 31, 2034[33] Regulatory and Operational Updates - AQN's regulated utility operating companies are subject to cost-of-service regulation, with several regulatory proceedings currently underway[22] - BELCO's revenue allowance application for 2024 and 2025 requested a $59,100 increase, with a final order authorizing a $33,600 increase based on a weighted average cost of capital of 7.79%[23] - Empire Electric received a revenue increase of $5,300 based on a 44% equity ratio, effective January 1, 2024[23] - New York Water was authorized a $38,600 revenue increase over a three-year rate plan, effective September 1, 2024[23] - Midstates Gas in Illinois received a total increase of $3,200 or 22.32% in base rate revenues, with new rates anticipated to be effective within 30 days from the order date[23] Discontinued Operations - AQN's renewable energy business (excluding hydro) has been classified as discontinued operations following an agreement to sell it to LS Power[18] - The discontinued operations reported a loss from discontinued operations of $(1,363,993) for the period ended September 30, 2024, compared to a loss of $(13,008) for the same period in 2023[77] - The impairment recorded for the discontinued operations was approximately $1,297,954, reflecting the write-down of property, plant, and equipment to estimated fair value[77] Shareholder Information - Common shares outstanding increased to 7,390,369 as of September 30, 2024, up from 6,229,994 at the end of 2023, reflecting an increase of approximately 18.7%[7] - Dividends declared for common shares in the nine months ended September 30, 2024, totaled $209,573, down from $226,382 in 2023, a decrease of 7.4%[43] - The dividend rate on Series D Preferred Shares was reset to 6.853% effective March 31, 2024, with no shares converted to Series E Shares due to fewer than 1,000,000 shares tendered[41] Capital Expenditures - Capital expenditures for the Regulated Services Group were $155,698 for the three months ended September 30, 2024, compared to $211,693 for the same period in 2023[51] - Capital expenditures for the nine months ended September 30, 2024, totaled $506,746, compared to $587,291 in the same period in 2023, a decrease of about 13.7%[58] Other Financial Metrics - The company recognized total interest expenses of $274,132 for the nine months ended September 30, 2024, compared to $232,653 for the same period in 2023, marking an increase of 18%[34] - The company accrued estimated losses of $172,300 related to the Mountain View Fire, with expected recoveries through insurance of $116,000[29] - The company recognized carrying charges on regulatory balances of $5,719 and $18,448 for the three and nine months ended September 30, 2024, respectively, compared to $11,514 and $29,415 in the same periods of 2023[25]

Making progress in strategic transition to regulated utilityOAKVILLE, ON, Nov. 7, 2024 /PRNewswire/ - Algonquin Power & Utilities Corp. (TSX: AQN) (NYSE: AQN) ("AQN" or the "Company") announced today financial results for the third quarter ended September 30, 2024. All amounts are shown in United States dollars ("U.S. $" or "$"), unless otherwise noted."We continue to hit key milestones on our journey towards a simpler and more focused regulated business," said Chris Huskilson, Chief Executive Officer of AQ ...

Core Points - Algonquin Power & Utilities Corp. (AQN) has declared dividends for common and preferred shares, with a common share dividend of US$0.0650 payable on January 15, 2025, and preferred share dividends of C$0.41100 for Series A and C$0.42831 for Series D, both payable on December 31, 2024 [1][2][4] Group 1 - The common share dividend is payable to shareholders of record on December 31, 2024, for the period from October 1, 2024, to December 31, 2024 [1] - Preferred share dividends for Series A and Series D are payable to holders of record on December 13, 2024, for the period from September 30, 2024, to December 31, 2024 [1][2] - AQN suspended its dividend reinvestment plan (DRIP) for common shares effective March 16, 2023, with potential reinstatement in the future [2] Group 2 - Dividends on common shares are declared in U.S. dollars, with beneficial shareholders in Canada or the U.S. able to request payment in either U.S. dollars or Canadian dollars [3] - Registered holders of common shares receive dividends in the currency of residency and can change the payment currency by contacting TSX Trust Company [3][4] - The Canadian dollar equivalent of the common share dividend is based on the Bank of Canada daily average exchange rate on the day before the declaration date [4] Group 3 - Algonquin Power & Utilities Corp. has approximately $18 billion in total assets and provides energy and water solutions to over one million customer connections, primarily in the U.S. and Canada [5] - The company owns, operates, and has net interests in over 4 GW of installed renewable energy capacity [5] - AQN's shares are listed on the Toronto Stock Exchange and the New York Stock Exchange under various symbols [5]

The market expects Algonquin Power & Utilities (AQN) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on November 7, 2024, might help the stock move higher if the ...