Innergex Renewable Energy Inc Q1 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Rupert Merer - National Bank Financial Inc - Analyst : Hello. Good morning, everyone. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 09, 2024 / 1:00PM, INE.TO - Q1 2024 Innergex Renewable Energy Inc Earnings Call

Question: Rupert Merer - National Bank Financial Inc - Analyst : So if I could start with asking you for a little more color on your development pipeline. It is mostly wind. It is mostly in Canada. Can you talk about how that spread across the country? Is it mostly aligned with where you see RFPs and power demand in the future? And will it help you to continue to diversify your portfolio?

Question: Rupert Merer - National Bank Financial Inc - Analyst : Thank you. And then looking at the last couple of calls in Canada, it does seem like the winners have been primarily Canadian companies, public and private. Can you give us some color on why you think that is maybe relationships are important, but even beyond those relationships, do you see that changing in the future? And then if you can bridge to talking about your pipeline and give any perspective on the strength of your pipeline beyond relationships, do you feel you're in the -- you mentioned you're in a lot of places, but have you got the best resources? Are you close to transmission there? Are there any other aspects of your portfolio? You think it can catch you over the top?

Question: Rupert Merer - National Bank Financial Inc - Analyst : Great. I leave there. Thank you very much.

Question: Nelson Ng - RBC Capital Markets Inc - Analyst : Great, thanks. Good morning, everyone. So you've talked a lot about all your development activities in Canada and the upcoming RFPs. Can you talk about Alberta? Are you still avoiding that market in terms of corporate PPAs and things like that? And what are some of the factors that keep you away from Alberta?

Question: Nelson Ng - RBC Capital Markets Inc - Analyst : Okay, great. And then can you also touch on the US? I know you're busy working on Palomino, but how active are you in the US or have you shifted a lot of your resources to Canada? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 09, 2024 / 1:00PM, INE.TO - Q1 2024 Innergex Renewable Energy Inc Earnings Call

Question: Nelson Ng - RBC Capital Markets Inc - Analyst : I see. And then just on perspective project costs, I think they, like obviously are very busy and I think they've doubled over the past year, to about $9.8 million this quarter. Do you see that trend continuing to move higher or do you think that level's pretty good for the rest of this year?

Question: Nelson Ng - RBC Capital Markets Inc - Analyst : Great. I'll just have one last question and then it might be for Jean. So Jean, you mentioned the -- you touch on it earlier in terms of the solar generation and how it's below average and our batteries should help. I think the solar generation and taxes in Chile has been consistently below average due to new acquisitions or other factors. Can you just provide a bit more color in terms of the generation that you have as your US solar or what that Phoebe has that facility been curtailed, often and weather that due to congestion or other factors? And can you also touch on Chile in terms of is it just mainly due to negative pricing? (multiple speakers)

Question: Nelson Ng - RBC Capital Markets Inc - Analyst : I see. And I guess the economics probably isn't there to add batteries to February now?

Question: Nelson Ng - RBC Capital Markets Inc - Analyst : Great. Thank for all the color. I'll leave it there.

Question: Nick Boychuk - Cormark Securities Inc - Analyst : Thanks. Good morning. Can you speak a little bit to the amount of work and specifics around what needs to be done to prepare for the upcoming RFPs. I'm trying to figure out how similar this work is to previous projects in both of these provinces, Mani, Quebec and BC and how comfortable you are with the teams who have done that weren't previously doing it against here?

Question: Nick Boychuk - Cormark Securities Inc - Analyst : Got it. That make sense, thank you. And just generally Michel, what should we be expecting from the early-stage development pipeline? It's a little bit unclear looking at the MDA verbiage to understand which projects are so undefined versus low to mid probability of reaching operation. So curious how we should be thinking about the probability of projects moving through those stages of projects and development of the projects under construction buckets, what general percentage do you think goes forward? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 09, 2024 / 1:00PM, INE.TO - Q1 2024 Innergex Renewable Energy Inc Earnings Call

Question: Nick Boychuk - Cormark Securities Inc - Analyst : Got it. Thank you.

Question: John Mould - TD Cowen - Analyst : Hi. I was wondering, one, maybe just starting a run back to the Quebec market. Well, there has been talk about direct corporate contracting in Quebec here. Michel, could you maybe provide some insight in that or how you're expecting that process to unfold and whether it could create a second stream of opportunities in the fall and [fringe]?

Question: John Mould - TD Cowen - Analyst : Okay. That's very interesting. Thanks a lot for that. And maybe, Jean, just a couple of clarifications on the guidance. And I know there are a number of factors that go into those figures just beyond generation and you assume you're meeting LTA, but I guess you're 4% below in Q1. So does that imply you need to catch up a bit on generation to hit the midpoint of your guidance and our BC specifically, obviously was really strong performance from those assets. I'm just wondering what you can tell us about how Q2 has been unfolding just given that the snowpack still quite low at this point versus an ordinary year?

Question: John Mould - TD Cowen - Analyst : Okay, thanks for that. Those are all my questions. I appreciate that color.

Question: Mark Jarvi - CIBC Capital Markets - Analyst : Hello, can you hear me, I'm on mute.

Question: Mark Jarvi - CIBC Capital Markets - Analyst : Yeah. Thank you so much that. So just on the bilateral and corporate PPAs and Quebec. For you and for him, Michel, you can't do it like a virtual PPA often that wouldn't be something they consider?

Question: Mark Jarvi - CIBC Capital Markets - Analyst : Right. And another question for me. What's your views right now on Curtis Palmer contract comes up in 2027. Are there any discussions started now, how do you feel that market in terms of recontracting with a view, maybe just to go merchant for the time being once the contract expires?

Question: Mark Jarvi - CIBC Capital Markets - Analyst : Are you getting any inbounds from counterparties?

Question: Mark Jarvi - CIBC Capital Markets - Analyst : Okay. One question for Jean. Just you mentioned asset recycling motivation for that would just be portfolio management and just -- which assets you want to own? Or are there some considerations still around funding and liquidity are in asset sale?

Question: Mark Jarvi - CIBC Capital Markets - Analyst : Alright. Sound good. Thanks for call today. Thank you, guys.