Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
  
FORM 8-K
  
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): May 10, 2019
  
PATTERN ENERGY GROUP INC.
(Exact name of registrant as specified in its charter)

Delaware
001-36087
90-0893251
(State or other jurisdiction
(Commission
(IRS Employer
of incorporation)
File Number)
Identification Number)
   
1088 Sansome Street
San Francisco, CA 94111
(Address and zip code of principal executive offices)
(415) 283-4000
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act (17 CFR 230.405) or Rule 12b-2 of the Exchange Act (17 CFR 240.12b-2).
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
 
Trading symbol
 
Name of each exchange on which registered
Class A common stock
 
PEGI
 
Nasdaq Global Select Market
 
 
 
 
Toronto Stock Exchange





Item 2.02 Results of Operations and Financial Condition.
On May 10, 2019, we issued a press release announcing our financial results for the first quarter ended March 31, 2019. A copy of our press release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.
Our press release, included herein, makes reference to non-U.S. GAAP financial measures, which management believes are useful for investors by offering the ability to better evaluate operating performance and to better understand how management evaluates the business. These non-U.S. GAAP financial measures are not prepared in accordance with, and should not be considered in isolation of, or as an alternative to, measurements required by U.S. GAAP. Descriptions of the non-U.S. GAAP financial measures are discussed below.
We define Adjusted EBITDA as net income (loss) before net interest expense, income taxes, and depreciation, amortization and accretion, including our proportionate share of net income (loss) before interest expense, income taxes, and depreciation, amortization and accretion of unconsolidated investments. Adjusted EBITDA also excludes the effect of certain mark-to-market adjustments, gain or loss related to acquisitions, divestitures, or refinancing transactions, adjustments from unconsolidated investments, and infrequent items not related to normal or ongoing operations. In calculating Adjusted EBITDA, we exclude mark-to-market adjustments to the value of our derivatives because we believe that it is useful for investors to understand, as a supplement to net income (loss) and other traditional measures of operating results, the results of our operations without regard to periodic, and sometimes material, fluctuations in the market value of such assets or liabilities.
Management believes Adjusted EBITDA assists investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that our management believes are not indicative of our core operating performance and to compare our business to that of our peers. Using Adjusted EBITDA, which is a non-U.S. GAAP measure, enables our management to evaluate our operating performance, our ability to meet debt service and other capital obligations and to measure the effectiveness of our overall capital structure. The most directly comparable U.S. GAAP measure to Adjusted EBITDA is net income (loss).
However, Adjusted EBITDA has limitations as an analytical tool. Some of these limitations include:
Adjusted EBITDA
does not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments;
does not reflect changes in, or cash requirements for, our working capital needs;
does not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on our debt, or our proportional interest in the interest expense of our unconsolidated investments or the cash requirements necessary to service interest or principal payments on the debt borne by our unconsolidated investments;
does not reflect our income taxes or the cash requirement to pay our taxes; or our proportional interest in income taxes of our unconsolidated investments or the cash requirements necessary to pay the taxes of our unconsolidated investments;
does not reflect depreciation, amortization and accretion which are non-cash charges; or our proportional interest in depreciation, amortization and accretion of our unconsolidated investments. The assets being depreciated, amortized and accreted will often have to be replaced in the future, and Adjusted EBITDA does not reflect any cash requirements for such replacements; and
does not reflect the effect of certain mark-to-market adjustments and non-recurring items or our proportional interest in the mark-to-market adjustments at our unconsolidated investments.
We do not have control, nor have any legal claim to the portion of the unconsolidated investees' revenues and expenses allocable to our joint venture partners. As we do not control, but do exercise significant influence, we account for the unconsolidated investments in accordance with the equity method of accounting. Net earnings from these investments are reflected within our consolidated statements of operations in "Earnings in unconsolidated investments, net." Adjustments related to our proportionate share from unconsolidated investments include only our proportionate amounts of interest expense, income taxes, depreciation, amortization and accretion, and mark-to-market adjustments included in "Earnings in unconsolidated investments, net;" and





Other companies in our industry may calculate Adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure.
Because of these limitations, Adjusted EBITDA should not be considered in isolation or as a substitute for performance measures calculated in accordance with U.S. GAAP. You should not consider Adjusted EBITDA as an alternative to net income (loss), as determined in accordance with U.S. GAAP.
We define cash available for distribution as Adjusted EBITDA further adjusted to (i) subtract unconsolidated investment earnings, (ii) subtract interest expense, less non-cash items, (iii) subtract distributions to noncontrolling interests, (iv) subtract principal payments paid from operating cash flows, (v) subtract income taxes, (vi) subtract non-expansionary capital expenditures, (vii) add distributions from unconsolidated investments, (viii) add net release of restricted cash, (ix) add stock-based compensation, (x) add pay-go contributions, and (xi) add or subtract other items as necessary to present the cash flows we deem representative of our core business operations.
Management believes that cash available for distribution is indicative of our core operating performance. For the periods presented, we reconcile Adjusted EBITDA and cash available for distribution to net income (loss), the most directly comparable GAAP financial measure. Cash available for distribution is a supplemental performance measure used by management and external users of our financial statements to measure our performance across reporting periods on a consistent basis by excluding items that our management believes are not indicative of our core operating performance and to compare our business to that of our peers. Cash available for distribution serves as an important measure of our performance and enables our management to evaluate our ability to meet dividend expectations, the amount of internal capital available for new investment opportunities that can enhance our ability to grow our dividends over time, and the suitability of our corporate debt levels.
However, cash available for distribution has limitations as an analytical tool. Some of the limitations are:

Cash available for distribution:
excludes depreciation, amortization and accretion;
does not capture the level of capital expenditures necessary to maintain the operating performance of our projects or complete the construction of acquired projects;
is not reduced for principal payments on our project indebtedness except to the extent they are paid from operating cash flows during a period; and
excludes the effect of certain other cash flow items, all of which could have a material effect on our financial condition and results from operations.
Other companies in our industry may calculate cash available for distribution differently than we do, limiting its usefulness as a comparative measure.
Because of these limitations, cash available for distribution should not be considered in isolation or as a substitute for performance measures calculated in accordance with U.S. GAAP. You should not consider cash available for distribution as an alternative to net income (loss), determined in accordance with U.S. GAAP, nor does it represent funds actually available to fund our current dividend commitments.
Item 7.01 Regulation FD Disclosure.
In addition to the earnings press release discussed in Item 2.02 above, on May 10, 2019, we are also providing Operating Metrics: Production Performance for long-term average production ("LTA") compared to actual production, including compensated curtailment for the quarter ended March 31, 2019. Such information is furnished herewith as Exhibit 99.2.

The information included in this Current Report on Form 8-K, including the exhibits attached hereto under Items 2.02 and 7.01, is "furnished" and shall not be deemed “filed” for any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information in this Current Report on Form 8-K shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act regardless of any general incorporation language in such filing. The information included in this Current Report on Form 8-K under this Item 7.01 (including Exhibit 99.2 hereto) will not be deemed an admission as to the materiality of any information required to be disclosed solely to satisfy the requirements of Regulation FD.







Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
 
Exhibit
Number
Description
99.1
99.2





SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, Pattern Energy Group Inc. has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: May 10, 2019
 
 
 
 
 
 
PATTERN ENERGY GROUP INC.
 
 
 
 
 
 
By:
/s/ Esben W. Pedersen
 
 
 
Name: Esben W. Pedersen
 
 
 
Title:   Chief Financial Officer
 
 
 
(Principal Financial Officer)
 



Exhibit


Exhibit 99.1


Pattern Energy Reports First Quarter 2019 Financial Results
- Declares dividend of $0.4220 per Class A common share for second quarter 2019 -

SAN FRANCISCO, California, May 10, 2019 - Pattern Energy Group Inc. (the “Company” or “Pattern Energy”) (NASDAQ & TSX: PEGI) today announced its financial results for the 2019 first quarter.

Highlights
(Figures reported below are for the first quarter of fiscal 2019, unless otherwise noted)
Proportional gigawatt hours (“GWh”) sold of 2,116 GWh, down 1%
Net loss of $46 million
Cash available for distribution (“CAFD”) of $53 million, up 23% and on track to meet full year guidance(1) 
Adjusted EBITDA of $98 million, down 6%
Revenue of $135 million, up 21%
Declared a second quarter dividend of $0.4220 per Class A common share or $1.688 on an annualized basis, subsequent to the end of the period, unchanged from the previous quarter's dividend
Increased Pattern Energy's total capital invested in Pattern Development to $190 million by fulfilling capital calls since January 1, 2019
Added 400 megawatts ("MW") of new wind projects to the identified right of first offer (“ROFO”) list, consisting of three projects in New Mexico with contracted sales to purchasers in the California market
“We continue to demonstrate a strong ability to manage the business for the wind variability experienced. We are on track for our 2019 full year guidance target with our effective capital management and growth strategy, despite wind resource levels that were below the long-term average in the Eastern United States,” said Mike Garland, CEO of Pattern Energy. “We are executing our strategy to grow our CAFD per share through 2020 without the requirement to issue new common equity. The actions we are taking are meant to ensure that we can maintain our dividend, drive down our payout ratio and fund the acquisition of identified ROFO projects. We have expanded our identified ROFO list to 1.3 GW with new projects in New Mexico during the quarter. Our investment in Pattern Development remains on track to deliver meaningful growth beyond 2019.”
(1) The forward looking measure of 2019 full year cash available for distribution (CAFD) is a non-GAAP measure that cannot be reconciled to net income as the most directly comparable GAAP financial measure without unreasonable effort primarily because of the uncertainties involved in estimating forward-looking mark-to-market changes in derivatives and proportionate share of earnings from unconsolidated investments to arrive at net income and which are subtracted therefrom to arrive at CAFD.  A description of the adjustments to determine CAFD can be found within Item 2, Management's Discussion and Analysis of Financial Condition and Results of Operations - Key Performance Metrics, of Pattern Energy's 2019 Quarterly Report on Form 10-Q for the period ended March 31, 2019.

Financial and Operating Results
Pattern Energy sold 2,115,855 megawatt hours (“MWh”) of electricity on a proportional basis in the first quarter of 2019, compared to 2,135,715 MWh sold in the same period last year. The 1% decrease in the quarterly period was primarily due to volume decreases as a result of divestitures in 2018 and unfavorable wind conditions partially offset by volume increases due to acquisitions in 2018 and less curtailment and congestion in the first quarter of 2019.
Net loss was $46 million in the first quarter of 2019, compared to a net loss of $13 million for the same period last year. The increase of $33 million in net loss in the quarterly period was primarily attributable to a $24 million increase in net loss at the operating business segment, mainly due to losses at existing projects, divestitures in 2018, derivative losses and a $10 million increase in the share of net loss at the development investment segment, which included impairment expense and increased cost of development including legal, professional and related party administrative expense.
Adjusted EBITDA decreased 6% to $98 million for the first quarter of 2019, compared to $104 million for the same period last year. The $6 million decrease in the quarterly period was primarily due to decreases of $13 million due to divestitures in 2018 and $10 million due to losses at our development investment segment. These decreases in Adjusted EBITDA were partially offset by increases of $16 million from new projects acquired in 2018 and $2 million from projects fully operational in both periods.

1



Cash available for distribution increased 23% to $53 million for the first quarter of 2019, compared to $43 million for the same period last year. The $10 million increase in the quarterly period was primarily due to increases of $9 million from projects fully operational in both periods and $7 million from new projects acquired in 2018, partially offset by a decrease of $6 million due to divestitures in 2018.
2019 Financial Guidance
Pattern Energy is re-confirming its targeted annual cash available for distribution(1) for 2019 within a range of $160 million to $190 million. For the full year 2020, Pattern Energy expects annual cash available for distribution(1) in a range of $185 million to $225 million.
(1) The forward looking measures of 2019 and 2020 full year cash available for distribution (CAFD) are non-GAAP measures that cannot be reconciled to net income as the most directly comparable GAAP financial measure without unreasonable effort primarily because of the uncertainties involved in estimating forward-looking mark-to-market changes in derivatives and proportionate share of earnings from unconsolidated investments to arrive at net income and which are subtracted therefrom to arrive at CAFD. A description of the adjustments to determine CAFD can be found within Item 2, Management's Discussion and Analysis of Financial Condition and Results of Operations - Key Performance Metrics, of Pattern Energy's 2019 Quarterly Report on Form 10-Q for the period ended March 31, 2019.
Quarterly Dividend
Pattern Energy declared a dividend for the second quarter 2019, payable on July 31, 2019, to holders of record on June 28, 2019 in the amount of $0.4220 per Class A common share, which represents $1.688 on an annualized basis. The amount of the second quarter 2019 dividend is unchanged from the first quarter 2019 dividend.
Acquisition Pipeline
Pattern Development (formerly referred to as Pattern Energy Group 2 LP or Pattern Development 2.0) and Pattern Energy Group LP (formerly referred to as Pattern Development 1.0) have a pipeline of development projects totaling more than 10 gigawatts ("GW"). Pattern Energy has a ROFO on the pipeline of acquisition opportunities from these two companies. The identified ROFO list stands at 1.3 GW of total capacity and represents a portion of the pipeline of development projects, which are subject to Pattern Energy’s ROFO. Since its IPO, Pattern Energy has purchased, or agreed to purchase, more than 1.6 GW from Pattern Energy Group LP and Pattern Development and in aggregate grown the identified ROFO list from 746 MW to more than 2 GW.
Pattern Energy has removed the 80 MW Crazy Mountain Wind project, located in Sweet Grass County, Montana, from its identified ROFO list due to the likelihood that the project will not continue as a result of a court order which has currently halted further development at the project.

2



Below is a summary of the identified ROFO projects that Pattern Energy has the right to purchase from Pattern Development and Pattern Energy Group LP in connection with its respective purchase rights:
 
 
 
 
 
 
 
 
 
 
 
 
Capacity (MW)
Identified
ROFO Projects
 
Status
 
Location
 
Construction
Start
 (1)
 
Commercial
Operations 
(2)
 
Contract
Type
 
Rated (3)
 
Pattern
Development Companies
Owned
 (4)
Pattern Energy Group LP
 
 
 
 
 
 
 
 
 
 
 
 
Belle River
 
Operational
 
Ontario
 
2016
 
2017
 
PPA
 
100
 
43
North Kent
 
Operational
 
Ontario
 
2017
 
2018
 
PPA
 
100
 
35
Henvey Inlet
 
In construction
 
Ontario
 
2017
 
2019
 
PPA
 
300
 
150
Pattern Development
 
 
 
 
 
 
 
 
 
 
 
 
Grady
 
In construction
 
New Mexico
 
2018
 
2019
 
PPA
 
220
 
188
Sumita
 
Late stage development
 
Japan
 
2020
 
2022
 
PPA
 
100
 
55
Ishikari
 
Late stage development
 
Japan
 
2020
 
2022
 
PPA
 
112
 
112
Corona Wind Project(s)
 
Late stage development
 
New Mexico
 
2020
 
2021
 
PPA
 
400
 
340
 
 
 
 
 
 
 
 
 
 
 
 
1,332
 
923
(1)
Represents year of actual or anticipated commencement of construction.
(2)
Represents year of actual or anticipated commencement of commercial operations.
(3)
Rated capacity represents the maximum electricity generating capacity of a project in MW. As a result of weather and other conditions, a project will not operate at its rated capacity at all times and the amount of electricity generated may be less than its rated capacity. The amount of electricity generated may vary based on a variety of factors.
(4)
Pattern Development Companies-Owned capacity represents the maximum, or rated, electricity generating capacity of the project in MW multiplied by Pattern Energy Group LP's or Pattern Development's percentage ownership interest in the distributable cash flow of the project.


3



Pattern Energy Group Inc.
Consolidated Statements of Operations
(In millions of U.S. dollars, except share data)
(Unaudited)
 
Three months ended March 31,
 
2019
 
2018
Revenue:
 
 
 
Electricity sales
$
123

 
$
102

Other revenue
12

 
10

Total revenue
135

 
112

Cost of revenue:
 
 
 
Project expense
40

 
35

Transmission costs
6

 
7

Depreciation, amortization and accretion
83

 
55

Total cost of revenue
129

 
97

Gross profit
6

 
15

Operating expenses:
 
 
 
General and administrative
11

 
11

Related party general and administrative
4

 
4

Total operating expenses
15

 
15

Operating income (loss)
(9
)
 

Other income (expense):
 
 
 
Interest expense
(26
)
 
(25
)
Gain on derivatives
1

 
6

Earnings (loss) in unconsolidated investments, net
(6
)
 
18

Net loss on transactions

 
(1
)
Other expense, net
(2
)
 
(4
)
Total other expense
(33
)
 
(6
)
Net loss before income tax
(42
)
 
(6
)
Income tax provision
4

 
7

Net loss
(46
)
 
(13
)
Net loss attributable to noncontrolling interest
(16
)
 
(149
)
Net income (loss) attributable to Pattern Energy
$
(30
)
 
$
136

 
 
 
 
Weighted-average number of common shares outstanding
 
 
 
Basic
97,568,427

 
97,428,388

Diluted
97,568,427

 
105,564,491

Net income (loss) per share attributable to Pattern Energy
 
 
 
Basic
$
(0.31
)
 
$
1.39

Diluted
$
(0.31
)
 
$
1.32


4



Adjusted EBITDA and Cash Available for Distribution Non-GAAP Reconciliations
The following tables present a reconciliation of Adjusted EBITDA and cash available for distribution to net loss, the most directly comparable GAAP financial measure, for the periods indicated (unaudited and in millions):
 
 
Three months ended March 31,
 
 
2019
 
2018
Net loss
 
$
(46
)
 
$
(13
)
Plus:
 
 
 
 
Interest expense, net of interest income
 
25

 
25

Income tax provision
 
4

 
7

Depreciation, amortization and accretion
 
89

 
63

EBITDA
 
$
72

 
$
82

Unrealized loss on derivatives
 
5

 
5

Other
 
1

 

Plus, proportionate share from unconsolidated investments:
 
 
 
 
Interest expense, net of interest income
 
6

 
9

Depreciation, amortization and accretion
 
6

 
9

(Gain) loss on derivatives
 
8

 
(1
)
Adjusted EBITDA
 
$
98

 
$
104

Plus:
 
 
 
 
Distributions from unconsolidated investments
 
14

 
20

Release of restricted cash
 

 
2

Stock-based compensation
 
1

 
1

Less:
 
 
 
 
Unconsolidated investment earnings and proportionate shares for EBITDA
 
(15
)
 
(38
)
Interest expense, less non-cash items and interest income
 
(23
)
 
(23
)
Income taxes
 
(1
)
 

Distributions to noncontrolling interests
 
(11
)
 
(9
)
Principal payments paid from operating cash flows
 
(10
)
 
(14
)
Cash available for distribution
 
$
53

 
$
43

 
 
 
 
 
Weighted-average number of common shares outstanding
 
 
 
 
Basic
 
97,568,427

 
97,428,388

 
 
 
 
 
Cash available for distribution per share
 
 
 
 
Basic
 
$
0.54

 
$
0.44





5




Pattern Energy Group Inc.
Consolidated Balance Sheets
(In millions of U.S. dollars, except share and par value data)
(Unaudited)
 
March 31,
 
December 31,
 
2019
 
2018
Assets
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
93

 
$
101

Restricted cash

 
4

Counterparty collateral
6

 
6

Trade receivables
74

 
50

Derivative assets, current
7

 
14

Prepaid expenses
13

 
18

Deferred financing costs, current, net of accumulated amortization of $3 and $3 as of March 31, 2019 and December 31, 2018, respectively
2

 
2

Other current assets
27

 
16

Total current assets
222

 
211

Restricted cash
15

 
18

Major construction advances
86

 
84

Construction in progress
277

 
259

Property, plant and equipment, net
4,052

 
4,119

Unconsolidated investments
257

 
270

Derivative assets
7

 
9

Deferred financing costs
8

 
8

Net deferred tax assets
7

 
5

Intangible assets, net
215

 
219

Goodwill
58

 
58

Other assets
108

 
34

Total assets
$
5,312

 
$
5,294

 
 
 
 

6



Pattern Energy Group Inc.
Consolidated Balance Sheets
(In millions of U.S. dollars, except share and par value data)
(Unaudited)
 
March 31,
 
December 31,
 
2019
 
2018
Liabilities and equity
 
 
 
Current liabilities:
 
 
 
Accounts payable and other accrued liabilities
$
83

 
$
67

Accrued construction costs
13

 
27

Counterparty collateral liability
6

 
6

Accrued interest
7

 
14

Dividends payable
42

 
42

Derivative liabilities, current
3

 
2

Revolving credit facility, current
234

 
198

Current portion of long-term debt, net
59

 
56

Asset retirement obligation, current
24

 
24

Contingent liabilities, current
7

 
31

Other current liabilities
23

 
11

Total current liabilities
501

 
478

Revolving credit facility
24

 
25

Long-term debt, net
2,045

 
2,004

Derivative liabilities
45

 
31

Net deferred tax liabilities
118

 
117

Intangible liabilities, net
47

 
56

Contingent liabilities
142


142

Asset retirement obligations
187

 
185

Other long-term liabilities
132

 
71

Contract liability
27

 
26

Total liabilities
3,268

 
3,135

Commitments and contingencies
 
 
 
Equity:
 
 
 
Class A common stock, $0.01 par value per share: 500,000,000 shares authorized; 98,251,544 and 98,051,629 shares outstanding as of March 31, 2019 and December 31, 2018, respectively
1

 
1

Additional paid-in capital
1,090

 
1,130

Accumulated loss
(57
)
 
(27
)
Accumulated other comprehensive loss
(73
)
 
(52
)
Treasury stock, at cost; 247,995 and 223,040 shares of Class A common stock as of March 31, 2019 and December 31, 2018, respectively
(5
)
 
(5
)
Total equity before noncontrolling interest
956

 
1,047

Noncontrolling interest
1,088

 
1,112

Total equity
2,044

 
2,159

Total liabilities and equity
$
5,312

 
$
5,294



7



Pattern Energy Group Inc.
Consolidated Statements of Cash Flows
(In millions of U.S. dollars)
(Unaudited)

 
Three months ended March 31,
 
2019
 
2018
Operating activities
 
 
 
Net loss
$
(46
)
 
$
(13
)
Adjustments to reconcile net loss to net cash provided by operating activities:
 
 
 
Depreciation, amortization and accretion
90

 
62

Loss on derivatives
5

 
4

Stock-based compensation
1

 
1

Deferred taxes
3

 
7

(Earnings) losses in unconsolidated investments, net
6

 
(18
)
Distributions from unconsolidated investments
7

 
14

Changes in operating assets and liabilities:
 
 
 
Counterparty collateral asset

 
12

Trade receivables
(23
)
 
(6
)
Other current assets
(6
)
 
2

Other assets (non-current)
(11
)
 
(1
)
Accounts payable and other accrued liabilities
15

 
(19
)
Counterparty collateral liability

 
(12
)
Other current liabilities
(31
)
 
(9
)
Other long-term liabilities
(2
)
 
4

Net cash provided by operating activities
8

 
28

Investing activities
 
 
 
Cash paid for acquisitions and investments, net of cash and restricted cash acquired
(7
)
 
(193
)
Capital expenditures
(40
)
 
(61
)
Distributions from unconsolidated investments
7

 

Other assets

 
(17
)
Net cash used in investing activities
(40
)
 
(271
)

8



Pattern Energy Group Inc.
Consolidated Statements of Cash Flows
(In millions of U.S. dollars)
(Unaudited)

 
Three months ended March 31,
 
2019
 
2018
Financing activities
 
 
 
Dividends paid
(42
)
 
(41
)
Capital contributions - noncontrolling interest
5

 

Capital distributions - noncontrolling interest
(11
)
 
(9
)
Payment for financing fees

 
(6
)
Proceeds from short-term debt
75

 
283

Repayment of short-term debt
(41
)
 
(35
)
Proceeds from long-term debt and other
45

 
113

Repayment of long-term debt and other
(8
)
 
(19
)
Payment for termination of designated derivatives
(3
)
 

Other financing activities
(1
)
 

Net cash provided by financing activities
19

 
286

 
 
 
 
Effect of exchange rate changes on cash, cash equivalents and restricted cash
(2
)
 
(1
)
 
 
 
 
Net change in cash, cash equivalents and restricted cash
(15
)
 
42

Cash, cash equivalents and restricted cash at beginning of period
123

 
138

Cash, cash equivalents and restricted cash at end of period
$
108

 
$
180

Supplemental disclosures
 
 
 
Cash payments for income taxes
$
14

 
$

Cash payments for interest expense
$
29

 
$
33

Schedule of non-cash activities
 
 
 
Change in property, plant and equipment
$
10

 
$
122

Conference Call and Webcast
Pattern Energy will host a conference call and webcast to discuss these results at 10:30 a.m. Eastern Time on Friday, May 10, 2019. Mike Garland, CEO, and Esben Pedersen, CFO, will co-chair the call. Participants should call (888) 231-8191 or (647) 427-7450 and ask an operator for the Pattern Energy earnings call. Please dial in 10 minutes prior to the call to secure a line. A replay will be available shortly after the call. To access the replay, please dial (855) 859-2056 or (416) 849-0833 and enter access code 4078346. The replay recording will be available until 11:59 p.m. Eastern Time, May 31, 2019.
A live webcast of the conference call with a presentation that accompanies the call will be also available on the events page in the invest section of Pattern Energy’s website at www.patternenergy.com. An archived webcast will be available for one year.
About Pattern Energy
Pattern Energy Group Inc. (Pattern Energy) is an independent power company listed on the Nasdaq Global Select Market and Toronto Stock Exchange. Pattern Energy has a portfolio of 24 renewable energy projects with an operating capacity of approximately 4 GW in the United States, Canada and Japan that use proven, best-in-class technology. Pattern Energy’s wind and solar power facilities generate stable long-term cash flows in attractive markets and provide a solid foundation for the continued growth of the business. For more information, visit www.patternenergy.com.

9



Cautionary Statement Regarding Forward-Looking Statements
Certain statements contained in this press release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of Canadian securities laws, including statements regarding the ability to achieve the 2019 full year guidance target and grow CAFD per share through 2020 without the requirement to issue new common equity; the ability to maintain the dividend, drive down the payout ratio, and fund the acquisition of identified ROFO projects; and the ability of the investment in Pattern Development to deliver meaningful growth beyond 2019. These forward-looking statements represent the Company’s expectations or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of the Company’s control, which could cause actual results to differ materially from the results discussed in the forward-looking statements.
Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, the Company does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for the Company to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in the Company's annual report on Form 10-K and any quarterly reports on Form 10-Q. The risk factors and other factors noted therein could cause actual events or the Company's actual results to differ materially from those contained in any forward-looking statement.
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Contacts:
Media Relations
Matt Dallas
917-363-1333
matt.dallas@patternenergy.com
 
Investor Relations
Ross Marshall
416-526-1563
ross.marshall@loderockadvisors.com 
 


























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Exhibit


Exhibit 99.2

http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12895300&doc=4

Operating Metrics: Production Performance, Q1 2019

The table below presents the long term average production (LTA) for projects compared to actual production, including compensated curtailment:
Region
 
Q1 2019
 
Actual Results (% of LTA)
 
Resource Index
(% of LTA) 1
 
LTA (GWh)
 
Production (GWh)
 
 
 
 
 
 
Eastern US
 
1,050

 
866

 
82
%
 
83
%
Western U.S.
 
604

 
623

 
103
%
 
100
%
Canada
 
546

 
536

 
98
%
 
98
%
Other
 
89

 
91

 
102
%
 
99
%
Total
 
2,289

 
2,116

 
92
%
 
92
%

1 Resource Index is defined as GWh that could have been produced from actual wind or solar during the period, divided by GWh that could have been produced from expected long term average resource.