What is Atlantic Power's ticker symbol?
On the Toronto Stock Exchange, the ticker symbol is ATP. On the New York Stock Exchange, the ticker symbol is AT.
Can I purchase shares directly from Atlantic Power?
No, we do not sell our shares directly.
Do you have a Dividend Reinvestment Program or DRIP?
It was terminated effective with the elimination of the Company's common stock dividend policy.
Why does Atlantic Power no longer pay a dividend on its common shares?
The dividend was eliminated in February 2016 because management determined that changes to its capital allocation strategy were appropriate in order to create value for shareholders in a tax-efficient manner, while also improving the Company’s financial flexibility and strengthening its balance sheet. Accordingly, the Company has prioritized allocation of its discretionary capital to repurchases of its equity and debt securities, with a goal of capturing value arising from compelling price-to-value opportunities in these securities. The Company will also continue to allocate capital to high-return investments in its existing projects.
How do repurchases of debt benefit common shareholders?
The repurchase of convertible debt at a significant discount to par represents an attractive return on the Company’s investment and is consistent with the Company’s goal of further reducing its debt in order to improve its financial flexibility. As a result of debt being reduced, the Company has lower cash interest payments. In addition, the amount of debt maturing in future years is lower and the risk of having to address these debt maturities in potentially unfavorable market conditions is reduced. Furthermore, the risk to common shareholders of potential conversion of these securities to common equity is reduced.
How do repurchases of common shares benefit remaining shareholders?
The Company believes that the current stock price represents a significant discount to what it considers the intrinsic value per share to be. Repurchase of shares at a discount to intrinsic value reduces the number of shares outstanding and increases the intrinsic value for each of the remaining shares. The Company will undertake share repurchases only when the price-to-value ratio results in a benefit for remaining shareholders (whereas repurchases at a premium to intrinsic value would reduce intrinsic value per share).
Does the elimination of the common dividend affect dividends on the Company’s preferred shares?
There is no impact on payment of dividends on the Company’s preferred shares.
How is Atlantic Power affected by changes in the exchange rate of the U.S. to the Canadian dollar?
Because it owns projects in both the United States and Canada, the Company generates income and cash flow in both U.S. and Canadian dollars. The Canadian dollar income is converted to U.S. dollars for financial reporting purposes. A strengthening of the U.S. dollar against the Canadian dollar reduces reported income from the Canadian projects, whereas a weakening of the U.S. dollar benefits reported income. However, from a cash flow standpoint, the impact on the Company is close to neutral. This is because interest payments on corporate level long-term debt and all but one of the Company’s convertible debentures are made predominantly in Canadian dollars. While a stronger U.S. dollar reduces the amount of cash flow from the Canadian projects, this is largely offset by the benefit of lower cash payments on the Canadian-denominated securities. The Company also has a hedging strategy in place to mitigate currency risk, and from time to time we execute this strategy by entering into foreign exchange forward contracts.
Does Atlantic Power provide a K-1 or does my broker need to give me a 1099?
Atlantic Power does not provide any tax documents to our investors. You will need to contact your broker for a 1099 to file with your personal income tax return, if you are a U.S. investor, or a T-slip if you are a Canadian investor.