Canadian Utilities Limited

Thank you for standing by. This is the conference operator. Welcome to the second quarter 2026 Results Conference Call and Webcast for Canadian Utilities Limited. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then 1 on your telephone keypad. Should you need assistance during the conference call, you may reach an operator by pressing star then 0. I would now like to turn the conference over to Mr. Colin Jackson, Senior Vice President, Financial Operations. Please go ahead, Mr. Jackson.

Thank you, Ashia. And good morning, everyone. We're pleased you could join us for Canadian Utilities' second quarter 2026 conference call. On the line today, we have Bob Myles, Chief Executive Officer, and Katie Patrick, Chief Financial and Investment Officer. Before we move into today's remarks, I would like to take a moment to acknowledge the numerous traditional territories and homelands on which our global facilities are located. Today, I am speaking to you from our Akko Park head office in Calgary, which is located in the Treaty 7 region. This is the ancestral territory of the Black Confederacy comprised of the Sitsika, the Kainai, the Pagani Nations, and the Tsutina Nation. and the Stoney Nakoda Nations, which include the Chiniki, Bears Paw and Good Stoney First Nations. I also want to recognize that the City of Calgary is home to the Métis Nation of Alberta, Districts 5 and 6. During our second quarter, we proudly celebrated National Indigenous History Month in Canada, a time to honor the stories, achievements and resiliency of Indigenous peoples. We continue to respect and celebrate the diverse history, languages, and culture of Indigenous peoples beyond the month of June. Today's remarks will include forward-looking statements that are subject to important risks and uncertainties. For more information on these risks and uncertainties, please refer to our filings with Canadian securities regulators. During today's presentation, we may refer to certain non-GAAP and other financial measures including adjusted earnings, adjusted earnings per share and capital investment. These measures do not have any standardized meaning under IFRS and as a result they may not be comparable to similar measures presented by other entities. Please refer to our filings with the Canadian securities regulators for more information. And now I'll turn the call over to Bob for his opening remarks.

Thanks Colin and good morning everyone. As we move through 2026, I want to again remind everyone of our focus to remain anchored on our three strategic priorities of growth and prosperity, operational excellence and financial leadership, which Katie will address in more detail shortly. Consistent execution across these priorities positions us well to continue to deliver on our growth objectives. On our first pillar, growth and prosperity, I want to begin my remarks by congratulating our team on the successful completion of the Central East Transfer Out project in June of this year. Thanks to our dedicated employees, I'm very pleased to share that CETO was completed ahead of project schedule, below expected project spend, and with zero lost time injuries. CETO is a critical energy infrastructure investment that reduces congestion and enhances the efficiency of electric transmission across Alberta's electric grid. I'd also like to take a moment to recognize our team for their hard work on our Yellowhead Pipeline project. All major contracts have been awarded and I'm pleased to share that the project received its facility application approval earlier this month, which was the final regulatory milestone we've been pursuing. This approval cleared the way for construction to begin which we expect to occur in August ahead of schedule. The Yellowhead Pipeline project serves as a key growth driver in our current five-year plan. More importantly, it remains a critical needed piece of infrastructure for the province. The Yellowhead Pipeline is 100% contracted with customers which underscores the clear demand for this project and the role this pipeline plays in Alberta. As a reminder, we expect the project to be in service in the fourth quarter of next year. Other positive regulatory decisions we received this month include the ADCO Pipeline's general rate application, which approved the Yellowhead Pipeline capital deferral account to manage uncertainties for the project along with 100% of construction work in progress, or CWIP, being placed into rate base for 2026 and 2027. CWIP provides temporary credit relief during the construction period of Yellowhead by increasing our cash flows for this project. The application also approved the proposed depreciation placeholder and IT operating costs for both ATCO pipelines and Atco Electric Transmission, providing certainty on the recovery of these costs. On the electric transmission side, the revised negotiated settlement agreement regarding Atco Electric's general tariff application was also approved by the Alberta Utilities Commission. I commend the strong collaboration between our teams, the interveners and the regulator in reaching this agreement. Reaching these milestones through a negotiated settlement is a positive outcome and is reflective of our coordinated efforts to productively work with the regulatory body, particularly in a jurisdiction that we believe is supportive of infrastructure investments. The achievement of these regulatory milestones marks meaningful progress and represents an important step in advancing our strategic objectives. Within our regulated utilities, we see a strong runway for growth beyond our Yellowhead project. To support this, we continue to advance our $12 billion capital program over the next five years. This capital program is comprised of highly certain projects, and we believe there are opportunities for upside to this plan. The latter half of the five-year outlook does not reflect several major infrastructure opportunities across the province in which we expect to participate. As these projects are secured, they will represent incremental growth beyond the current plan. I want to emphasize that across all of our regulated investments, we remain very focused on balancing customer affordability while ensuring we maintain a resilient energy system that is stable, reliable, and can withstand the impact of severe weather events. The capital plan underpins a five-year compound annual growth rate of 6.9%, driven by our regulated utility businesses, including the Yellowhead Pipeline project. It's also important to note that this outlook does not reflect growth from our non-regulated businesses, including opportunities such as natural gas storage expansion, which we expect will provide additional upsides for Canadian utilities. As we look beyond our current capital and growth plan, the broader operating environment continues to improve and is creating a larger runway for investment across the Canadian utility sector. First, we're seeing renewed momentum in energy infrastructure development. Recent pipeline proposals signal growing confidence in long-term resource investments. These developments create additional opportunities for utilities to support Thank you for joining us. with more confidence in reducing uncertainty around major hydrocarbon project development. Our Atlas carbon storage hub in partnership with Shell positions us to generate long-term growth from future carbon capture investments. Third, numerous federal government announcements have driven ambitious plans to expand grid capacity, enhance interprovincial connections and introduce financing and tax incentives that will improve the economics of large-scale infrastructure projects. This supports new transmission opportunities such as our McNeil, Alberta, Saskatchewan intertie where the federal government has designated it as one of five high-priority interprovincial power line projects designed to strengthen the national electricity grid. Finally, we have not included speculative upside related to data centers in our five-year forecast. Should Alberta continue to be successful in capturing significant data center activity, this could drive supporting infrastructure investments for our business and therefore for our growth outlook. Taken together, these developments reinforce a constructive backdrop for long-term growth given our expertise at Canadian Utilities. with opportunities spanning power generation, transmission, natural gas infrastructure, and other critical energy assets. Now let's look at operational excellence, which focuses on safety, reliability, and operational outperformance. As seen on the top half of the slide, both Atco Gas and Atco Electric distribution attained achieved return on equities that are better than peers by an average of 2% each year from 2013 to 2025. This reinforces our ability to drive efficiencies across the business by reducing operating costs and improving productivity. As shown on the bottom half of the slide, during this same period, both Atco Gas and Atco Electric teams have driven substantial efficiencies across previous and current performance-based regulation, or PBR cycles, resulting in lower distribution charges and creating savings for our customers. We're proud to be recognized as one of the most efficient utilities in Canada, and we continue to drive efficiencies across our businesses to maintain customer affordability. Turning to our non-regulated assets in Canada, Natural gas storage continues to be a valuable contributor to our business. In 2026, we continue to advance our strategy to grow and enhance our storage platform through a series of low-cost organic growth initiatives. As shown on this slide, we expect the carbon storage expansion and the Alberta hub expansion to enter commercial operations in the third quarter of this year. These projects will increase our storage portfolio to approximately 130 petajoules. Beyond increasing our capacity, these expansions are expected to further strengthen the financial performance of our storage business, which continues to generate strong cash flow and earnings. Looking ahead, we are well positioned to pursue additional gas storage expansion opportunities in the year to come. Our third pillar is financial leadership. And with that, I'll pass the call to Katie to discuss this in further detail.