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AVANGRID, Inc.$51.43$.24.47%

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 AVANGRID Reports Second Quarter 2017 Earnings Results and Affirms 2017 Earnings Outlook
   Wednesday, July 19, 2017 7:00:00 AM ET

Today AVANGRID, Inc. (AGR ) reported consolidated net income of $120 million, or $0.39 per share, for the second quarter ended June 30, 2017, compared to $102 million, or $0.33 per share, for the same period in 2016, a 17% increase in net income. For the first six months of 2017, consolidated net income was $359 million, or $1.16 per share, compared to $314 million, or $1.01 per share, for the first six months of 2016, a 14% increase in net income.

Net income and earnings per share for the second quarter and first six months of 2017 and 2016 on a U.S. GAAP basis are set forth below:

 
                                                                                                                                                                                                                                Net Income (Loss) - $M
                                                         ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                         Three Months ended June 30,                                                                                                                                                                  Six Months ended June 30,
                                                         ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
$M                                                                             2017                                              2016                                           ’17 vs ’16                                                              2017                                              2016                                           ’17 vs ’16
                                                         ------------------------------------------------                     ------------------------------------------------                     ------------------------------------------------                     ------------------------------------------------                     ------------------------------------------------                     -------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                   
Networks                                                                    $    96                                                              $    79                                                              $    17                                                              $   268                                                              $   244                                                              $     24
Renewables                                                                       31                                                                   41                                                                  (11 )                                                                100                                                                   84                                                                    16
Corporate                                                                        10                                                                    4                                                                    6                                                                    5                                                                   18                                                                   (13 )
Gas Storage                                                  (16 )                                             (22 )                                               6                            (14 )                                             (32 )                                               18  
                                                         -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
  Net Income                                                                $   120                                           $   102                                           $    18                                           $   359                                           $   314                                           $     45  
                                                         ==================== ===== ====================                      ==================== ===== ====================                      ==================== ===== ====================                      ==================== ===== ====================                      ==================== ===== ====================                      ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                   
                                                                                                                                                                                                                                                  Earnings (Loss) Per Share
                                                         ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                   
                                                                                                                                         Three Months ended June 30,                                                                                                                                                                                     Six Months ended June 30,
                                                         ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                               2017                                                                 2016                                                              ’17 vs ’16                                                              2017                                                                 2016                                                              ’17 vs ’16
                                                         ------------------------------------------------                     ------------------------------------------------                     ------------------------------------------------                     ------------------------------------------------                     ------------------------------------------------                     -------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                   
Networks                                                                    $  0.31                                                              $  0.25                                                              $  0.06                                                              $  0.87                                                              $  0.79                                                              $   0.08
Renewables                                                                     0.10                                                                 0.13                                                                (0.03 )                                                               0.32                                                                 0.27                                                                  0.05
Corporate                                                                      0.03                                                                 0.01                                                                 0.02                                                                 0.02                                                                 0.06                                                                 (0.04 )
Gas Storage                                                (0.05 )                                           (0.07 )                                            0.02                          (0.05 )                                           (0.10 )                                             0.06  
                                                         -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
  Earnings Per Share                                                        $  0.39                                           $  0.33                                           $  0.06                                           $  1.16                                           $  1.01                                           $   0.15  
                                                         ==================== ===== ====================                      ==================== ===== ====================                      ==================== ===== ====================                      ==================== ===== ====================                      ==================== ===== ====================                      ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                   
Weighted-avg # of Shares (M):                                                 309.5                                                                309.5                                                                                                                                     309.5                                                                309.5
Amounts may not add due to rounding
                                                                                                                                                                                                                                                                                                                                                                                                                   

Excluding mark-to-market adjustments in the Renewables segment, the non-core Gas Storage business and the sale of certain equity investments in 2016, the non-GAAP consolidated adjusted net income was $143 million, or $0.46 per share, for the second quarter ended June 30, 2017, compared to $118 million, or $0.38 per share, for the same period in 2016, a 21% increase in adjusted net income. For the first six months of 2017, the non-GAAP consolidated adjusted net income was $369 million, or $1.19 per share, compared to $322 million, or $1.04 per share, for the same period in 2016, a 15% increase in adjusted net income. For additional information, see "Use of Non-GAAP Financial Measures" and "Reconciliation of Non-GAAP Financial Measures" below.

"We had another quarter of consistent financial results as we continue to deliver on our 2017 earnings outlook and long-term growth plans," said James P. Torgerson, chief executive officer of AVANGRID. "Earnings once again improved compared to 2016 primarily due to the implementation of new rate plans and higher wind production. We are affirming our 2017 adjusted earnings outlook of $2.10-$2.35 per share and will continue to focus on the execution of our capital investment plan as well as our Forward 2020 initiatives."

"Our long-term growth strategy remains on track. We have been successful in securing power purchase agreements (PPAs) for both new and existing capacity and recently executed a PPA for 200 mega-watts (MW) to be sourced from a new wind farm in Texas," added Torgerson. "Year to date, 401 MW of PPAs for new wind farms have been secured. We also have been successful in replacing 589 MW of existing and future merchant capacity with fixed price contracts. We secured three additional contracts in the second quarter of 2017 increasing our projected contracted capacity to 73% by year end 2017 from 62% in 2016. Additionally, we have executed a 100 MW repowering PPA in the Midwest, bringing our total repowering for the year to 122 MW. All of our Renewables projects currently under construction remain on track for their expected in-service dates."

"And lastly, later this month we plan to bid multiple transmission and/or renewables solutions in the Clean Energy RFP issued by Massachusetts Electric Distribution Companies and the Department of Energy Resources for 9.45 terawatt hours of clean energy power by 2022 and will also look to participate in the recently opened offshore RFP with responses due at the end of this year. In May, Avangrid Renewables formed a strategic partnership with Copenhagen Infrastructure Partners to jointly develop a large scale wind project off the coast of Massachusetts, acquiring a 50 percent ownership interest in Vineyard Wind," added Torgerson. "This partnership, along with our family of companies’ extensive offshore wind experience, demonstrates our strong commitment to execute our growth strategy and expand both our onshore and offshore renewables portfolio across the U.S."

Avangrid Networks

Avangrid Networks earned $96 million, or $0.31 per share, in the second quarter of 2017, compared to $79 million, or $0.25 per share, in the second quarter of 2016. For the first six months of 2017, Avangrid Networks earned $268 million, or $0.87 per share, compared to $244 million, or $0.79 per share, for the first six months of 2016. Year-to-date 2016 earnings include interest expense in the amount of $7.2 million (pre-tax), or $0.02 per share, related to $450 million of UIL Holdings Corporation debt. This debt which was moved from Avangrid Networks to Corporate at the end of 2016 and does not have an impact on consolidated results. Earnings for the second quarter and first six months of 2017 compared to 2016 benefitted primarily from the implementation of new rate plans and lower interest expense with the transfer of the UIL Holdings Corporation debt to Corporate, which was partially offset by expected earnings sharing related to the first rate year of the rate settlement in New York. Adjusted net income increased by 21% and 9% for the second quarter and first six months of 2017, compared to 2016, respectively.

Avangrid Renewables

Avangrid Renewables earned $31 million, or $0.10 per share, in the second quarter of 2017, compared to $41 million, or $0.13 per share, for the same period in 2016. For the first six months of 2017, Avangrid Renewables earned $100 million, or $0.32 per share, compared to $84 million, or $0.27 per share, for the first six months of 2016. Second quarter and year-to-date 2016 earnings include a minor gain on the sale of an equity method investment. Earnings for the second quarter of 2017 compared to 2016 decreased due to negative mark-to-market, partially offset by improved wind production, although below normal, primarily from the inclusion of the 208 MW Amazon Wind Farm U.S. East. Earnings for the first six months of 2017 compared to 2016 benefitted from improved wind production and a lower effective tax rate. Excluding mark-to-market and the minor gain on the sale of an equity method investment in 2016, adjusted net income increased by 7% and 26% for the second quarter and first six months of 2017, compared to 2016, respectively.

Corporate

Corporate produced net income of $10 million, or $0.03 per share, in the second quarter of 2017, compared to net income of $4 million, or $0.01 per share, in the second quarter of 2016. For the first six months of 2017, Corporate had net income of $5 million, or $0.02 per share, compared to net income $18 million, or $0.06 per share, for the first six months of 2016. Year-to-date results for 2017 reflect an increase in interest expense compared to year-to-date 2016 due to the transfer of UIL Holdings Corporation debt described above and year-to-date results for 2016 include the gain from the sale in Iroquois of $19 million, or $0.06 per share.

Gas Storage

Gas Storage incurred a net loss of $16 million, or $0.05 per share, in the second quarter of 2017, compared to a net loss of $22 million, or $0.07 per share, for the same period in 2016. For the first six months of 2017, Gas Storage incurred a net loss of $14 million, or $0.05 per share, compared to a net loss of $32 million, or $0.10 per share, for the first six months of 2016.

Outlook

Avangrid affirms its adjusted consolidated earnings outlook for 2017 of $2.10-$2.35 per share. Details of the earnings components are summarized as follows.

 
                  Outlook - Estimated EPS(1)
                     -------------------------------------------------------
                                      
                                                           As of July 19, 2017
                                                          --------------------
                     Networks                                 $1.66 - $1.74
                     Renewables(2)                            $0.50 - $0.65
                     Corporate                              $(0.08) - $(0.05)
                     Adjusted EPS(3)                          $2.10 - $2.35
                                                           
Amounts may not add due to rounding; Estimates are not expected
to be additive.
(1) Assumes approx. 309.5 million shares
outstanding
(2) Includes the assumption of the purchase of
49.5% of the El Cabo wind
     project by JV partner
(3) Excludes non-core Gas Storage and
Renewables mark-to-market
 

Primary outlook assumptions include:

-- Full year NYSEG, RG&E and UI-Distribution rates

-- Further integration & best practices

-- Normal wind

-- Full year Renewables extension of wind assets useful life

-- Full year Amazon Wind Farm U.S. East

-- Additional Wind projects by year-end

-- Excludes non-core Gas Storage and Renewables mark-to-market

Although it is not included in our 2017 adjusted consolidated earnings outlook, the Gas Storage business is projected to earn $(0.12)-$(0.08) per share in 2017.

Webcast

Avangrid will webcast an audio-only financial presentation in conjunction with releasing second quarter 2017 earnings today beginning at 10:00 A.M. Eastern time. The webcast will feature a presentation from Avangrid’s CEO, James P. Torgerson and other members of the executive team, and can be accessed through the Investor Relations’ section of Avangrid’s website at http://www.Avangrid.com .

Avangrid, Inc. (AGR ) is a diversified energy and utility company with more than $31 billion in assets and operations in 27 states. The company owns regulated utilities and electricity generation assets through two primary lines of business, Avangrid Networks and Avangrid Renewables. Avangrid Networks is comprised of eight electric and natural gas utilities, serving approximately 3.2 million customers in New York and New England. Avangrid Renewables operates 6.6 gigawatts of electricity capacity, primarily through wind power, in 23 states across the United States. Avangrid employs approximately 6,800 people. For more information, visit www.avangrid.com.

Forward Looking Statements

Certain statements in this presentation may relate to our future business and financial performance and future events or developments involving us and our subsidiaries that are not purely historical and may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of forward-looking terms such as "may," "will," "should," "can," "expects," "believes," "anticipates," "intends," "plans," "estimates," "projects," "assumes," "guides," "targets," "forecasts," "is confident that" and "seeks" or the negative of such terms or other variations on such terms or comparable terminology. Such forward looking statements include, but are not limited to, statements about our plans, objectives and intentions, outlooks or expectations for earnings, revenues, expenses or other future financial or business performance, strategies or expectations, or the impact of legal or regulatory matters on our business, results of operations or financial condition. Such statements are based upon the current beliefs and expectations of our management and are subject to significant risks and uncertainties that could cause actual outcomes and results to differ materially. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, without limitation, the risks and uncertainties set forth under the section entitled "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2016 and our Quarterly Report on Form 10-Q for the three months ended March 31, 2017, which is on file with the Securities and Exchange Commission (SEC) and available on our investor relations website at www.Avangrid.com and on the SEC website at www.sec.gov. Additional information will also be set forth in subsequent filings with the SEC. You should consider these factors carefully in evaluating forward-looking statements. Should one or more of these risks or uncertainties materialize, or should any of the underlying assumptions prove incorrect, actual results may vary in material respects from those expressed or implied by these forward-looking statements. You should not place undue reliance on these forward-looking statements. We do not undertake any obligation to update or revise any forward-looking statements to reflect events or circumstances after the date of this presentation whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

Use of Non-GAAP Financial Measures

To supplement our consolidated financial statements presented in accordance with U.S. GAAP, Avangrid considers certain non-GAAP financial measures that are not prepared in accordance with U.S. GAAP, including adjusted net income and adjusted earnings per share. The non-GAAP financial measures we use are specific to Avangrid and the non-GAAP financial measures of other companies may not be calculated in the same manner. We use these non-GAAP financial measures, in addition to U.S. GAAP measures, to establish operating budgets and operational goals to manage and monitor our business, evaluate our operating and financial performance and to compare such performance to prior periods and to the performance of our competitors. We believe that presenting such non-GAAP financial measures is useful because such measures can be used to analyze and compare profitability between companies and industries because it eliminates the impact of financing and certain non-cash charges as well as allow for an evaluation of Avangrid with a focus on the performance of its core operations. In addition, we present non-GAAP financial measures because we believe that they and other similar measures are widely used by certain investors, securities analysts and other interested parties as supplemental measures of performance.

We provide adjusted net income and adjusted earnings per share, which are adjusted to reflect the effect of mark-to-market changes in the fair value of derivative instruments used by Avangrid to economically hedge market price fluctuations in related underlying physical transactions for the purchase and sale of electricity, adjustments for the non-core Gas Storage business, for which we are exploring strategic options, and the impairment of certain investments and excludes the sale of certain equity investments. We believe adjusted net income is useful in understanding and evaluating actual and projected financial performance and contribution of Avangrid core lines of business and to more fully compare and explain our results. The most directly comparable U.S. GAAP measure to adjusted net income is net income. We also provide adjusted earnings per share, which is adjusted net income converted to an earnings per share amount.

The use of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, Avangrid’s U.S. GAAP financial information, and investors are cautioned that the non-GAAP financial measures are limited in their usefulness, may be unique to Avangrid, and should be considered only as a supplement to Avangrid’s U.S. GAAP financial measures. The non-GAAP financial measures may not be comparable to other similarly titled measures of other companies and have limitations as analytical tools. Non-GAAP financial measures are not primary measurements of our performance under U.S. GAAP and should not be considered as alternatives to operating income, net income or any other performance measures determined in accordance with U.S. GAAP.

 
                                                                                                                                             Avangrid, Inc.
                                                                                                                               Condensed Consolidated Statements of Income
                                                                                                                                 (In Millions except per share amounts)
                                                                                                                                               (Unaudited)
 
                                                                                                    Three Months ended                                                                                   Six Months ended
                                                                                                                            June 30,                                                                                                               June 30,
($M)                                                                                                 2017                                             2016                                                                  2017                                             2016
                                                                               --------------------------------------------------------------------------------------------------                     --------------------------------------------------------------------------------------------------
Operating Revenues                                                                                $  1,331                      $  1,439                                           $  3,089                      $  3,109  
                                                                               -------------------- ------ -------------------- -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- ------ --------------------
Operating Expenses
   Purchased power, natural gas and fuel used                                                          242                                              221                                                                   707                                              649
   Operations and maintenance                                                                          522                                              558                                                                 1,073                                            1,109
   Depreciation and amortization                                                                       206                                              213                                                                   403                                              418
    Taxes other than income taxes                                                   138        125                             285        262  
                                                                               -------------------- ------ -------------------- -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- ------ --------------------
Total Operating Expenses                                                          1,108      1,117                           2,468      2,438  
                                                                               -------------------- ------ -------------------- -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- ------ --------------------
Operating Income                                                                    223        322                             621        671  
                                                                               -------------------- ------ -------------------- -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- ------ --------------------
Other Income and (Expense)
   Other income                                                                                          8                                               20                                                                    21                                               69
   Earnings from equity method investments                                                               1                                                -                                                                     3                                                2
   Interest expense, net of capitalization                                          (68 )                         (68 )                                             (139 )                        (152 )
                                                                               -------------------- ------ -------------------- -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- ------ --------------------
Income Before Income Tax                                                            164        274                             506        590  
                                                                               -------------------- ------ -------------------- -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- ------ --------------------
   Income tax expense                                                                44        172                             147        276  
                                                                               -------------------- ------ -------------------- -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- ------ --------------------
Net Income                                                                                        $    120                      $    102                                           $    359                      $    314  
                                                                               -------------------- ------ -------------------- -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- ------ --------------------
                                                                                                                                                                                               
                                                                               --------------------------------------------------------------------------------------------------                     --------------------------------------------------------------------------------------------------
Earnings per Common Share, Basic:                                                                 $   0.39                      $   0.33                                           $   1.16                      $   1.01  
                                                                               -------------------- ------ -------------------- -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- ------ --------------------
Earnings per Common Share, Diluted:                                                               $   0.39                      $   0.33                                           $   1.16                      $   1.01  
                                                                               -------------------- ------ -------------------- -------------------- ------ --------------------                      -------------------- ------ -------------------- -------------------- ------ --------------------
Weighted-average Number of Common Shares Outstanding (M):
   Basic                                                                                             309.5                                            309.5                                                                 309.5                                            309.5
   Diluted                                                                                           309.8                                            309.7                                                                 309.8                                            309.7
                                                                                                                                                                                                                                                        
Amounts may not add due to rounding
Operating revenues and income tax expense for the three and six
month periods ended June 30, 2016 include increases for unfunded
future income taxes that were adjusted in the amount of $126
million to reflect the change from a flow through to normalization
method following the approval of the Joint Proposal by the NYPSC.
This item does not impact net income for the periods.
 
 
                                                                                      Avangrid, Inc.
                                                                           Condensed Consolidated Balance Sheets
                                                                                        (Unaudited)
 
                                                                    June 30,                                         December 31,
($M)                                                                                     2017                                                                  2016
                                                                   -------------------------------------------------                     -------------------------------------------------
ASSETS
   Current assets                                                                     $  1,921                                                              $  2,252
   Net property, plant & equipment in service                                           20,419                                                                20,077
   Total property, plant & equipment                                                    22,290                                                                21,548
   Regulatory assets                                                                     3,013                                                                 3,091
   Goodwill                                                                              3,124                                                                 3,124
   Other assets                                                       1,126                           1,294  
                                                                   -------------------- ------ --------------------                      -------------------- ------ --------------------
      Total Assets                                                                    $ 31,474                                           $ 31,309  
                                                                   -------------------- ------ --------------------                      -------------------- ------ --------------------
LIABILITIES AND EQUITY
   Current liabilities                                                                   2,461                                                                 2,712
   Regulatory liabilities                                                                2,310                                                                 2,318
   Other non-current liabilities                                                         6,689                                                                 6,647
   Non-current debt                                                   4,773                           4,510  
                                                                   -------------------- ------ --------------------                      -------------------- ------ --------------------
      Total Liabilities                                              16,233                          16,187  
                                                                   -------------------- ------ --------------------                      -------------------- ------ --------------------
EQUITY
   Common stock                                                                              3                                                                     3
   Additional paid-in-capital                                                           13,655                                                                13,653
   Treasury stock                                                                           (8 )                                                                  (5 )
   Retained earnings                                                                     1,639                                                                 1,544
   Accumulated other comprehensive loss                                 (62 )                                              (86 )
                                                                   -------------------- ------ --------------------                      -------------------- ------ --------------------
      Total Stockholders’ Equity                                     15,227                          15,109  
                                                                   -------------------- ------ --------------------                      -------------------- ------ --------------------
Noncontrolling interests                                                                    14                                                                    13
      Total Equity                                                   15,241                          15,122  
                                                                   -------------------- ------ --------------------                      -------------------- ------ --------------------
      Total Liabilities & Equity                                                      $ 31,474                                           $ 31,309  
                                                                   -------------------- ------ --------------------                      -------------------- ------ --------------------
                                                                                                                                          
Amounts may not add due to rounding
                                                                                                                                          
 
                                                                                                       Avangrid, Inc.
                                                                                       Condensed Consolidated Statement of Cash Flows
                                                                                                         (Unaudited)
 
                                                                                                                             Six Months Ended
                                                                                                                                                    June 30,
$M                                                                                                             2017                                                       2016
                                                                                     ---------------------------------------------------------                     ---------------------------------------------------------
Cash Flow from Operating Activities:
Net income                                                                                              $            359                                           $            314  
                                                                                     -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Net Cash Provided by Operating Activities                                                         925                                     906  
                                                                                     -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Cash Flow from Investing Activities:
   Capital expenditures                                                                                           (1,069 )                                                                        (674 )
   Contributions in aid of construction                                                                               21                                                                            41
   Proceeds from sale of property, plant and equipment                                                                 3                                                                            43
   Proceeds from sale of equity method and other investment                                                            5                                                                            57
   Receipts from affiliates                                                                               --                                                                             2
   Cash distribution from equity method investments                                                                    2                                                                             2
   Other investments and equity method investments, net                                            (7 )                                                       (8 )
                                                                                     -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Net Cash Used in Investing Activities                                                          (1,045 )                                                     (537 )
                                                                                     -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Cash Flow from Financing Activities:
   Non-current note issuance                                                                                         294                                                                --
   Repayments of non-current debt                                                                                    (23 )                                                                         (45 )
   Receipts (repayments) of other short-term debt, net                                                               158                                                                          (160 )
   Payments on tax equity financing arrangements                                                                     (60 )                                                                         (53 )
   Repayments of capital leases                                                                                      (31 )                                                                          (4 )
   Repurchase of common stock                                                                                         (3 )                                                                          (4 )
   Issuance of common stock                                                                                           (1 )                                                                          (2 )
   Dividends paid                                                                                (268 )                                                     (134 )
                                                                                     -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Net Cash Provided by (Used in) Financing Activities                                                66                                    (402 )
                                                                                     -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Net Decrease in Cash, Cash Equivalents and Restricted Cash                                        (54 )                                                      (33 )
                                                                                     -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Cash, Cash Equivalents and Restricted Cash, beginning of period                                    96                                     434  
                                                                                     -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Cash, Cash Equivalents and Restricted Cash, end of period                                               $             42                                           $            401  
                                                                                     -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                    
Amounts may not add due to rounding
                                                                                                                                                                    
                                                                                                                                                                                                                 Reconciliation of Non-GAAP Financial
                                                                                                                                                                                                                               Measures
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                                                                                                                                            Avangrid, Inc.
                                                                                                                                                                                                      Reconciliation of Non-GAAP Adjusted Net Income (Loss) - $M
                                                                                                                                                                                                                              (Unaudited)
 
                                                                                                                          Three Months ended June 30,                                                                                                                                                                  Six Months ended June 30,
                                                             ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                   2017                                              2016                                           ’17 vs ’16                                                              2017                                              2016                                           ’17 vs ’16
                                                             ------------------------------------------------                     ------------------------------------------------                     ------------------------------------------------                     ------------------------------------------------                     ------------------------------------------------                     -------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                       
Networks                                                                        $    96                                                              $    79                                                              $    17                                                              $   268                                                              $   244                                                              $     24
Renewables                                                                           31                                                                   41                                                                  (11 )                                                                100                                                                   84                                                                    16
Corporate                                                                            10                                                                    4                                                                    6                                                                    5                                                                   18                                                                   (13 )
Gas Storage                                                      (16 )                                             (22 )                                               6                            (14 )                                             (32 )                                               18  
                                                             -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
  Net Income                                                                    $   120                                                              $   102                                                              $    18                                                              $   359                                                              $   314                                                              $     45
     Adjustments:
Sale of equity method investment                                                      -                                                                   (3 )                                                                  3                                                                    -                                                                  (36 )                                                                  36
Impairment of investment                                                              -                                                                    -                                                                    -                                                                    -                                                                    3                                                                    (3 )
Mark-to-market adjustments - Renewables                                              11                                                                   (7 )                                                                 19                                                                   (6 )                                                                 (8 )                                                                   2
Income tax impact of adjustments*                                                    (4 )                                                                  4                                                                   (8 )                                                                  2                                                                   17                                                                   (15 )
Gas Storage, net of tax                                           16                             22                             (6 )                                              14                             32                             (18 )
                                                             -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
  Adjusted Net Income                                                           $   143                        $   118                        $    25                                           $   369                        $   322                        $     48  
                                                             ==================== ===== ==================== ==================== ==================== ===== ==================== ==================== ==================== ===== ====================                      ==================== ===== ==================== ==================== ==================== ===== ==================== ==================== ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                       
* 2017: Income tax impact of adjustments: $2M from MtM
adjustment-Renewables.
 
* 2016: Income tax impact of adjustments: $14M from sale of
equity method investment- Corporate, $(1)M on impairment of
investment - Networks, $1M from sale of other investment and $3M
from MtM adjustments - Renewables.
                                                                                                                                                                                                                                                                                                                                                                                                                       
                                                                                                                                                                                                                                              Non-GAAP Adjusted Net Income (Loss) - $M
                                                             ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                       
                                                                                                                                             Three Months ended June 30,                                                                                                                                                                                     Six Months ended June 30,
                                                             ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                               Adjusted 2017                                                        Adjusted 2016                                                          Adjusted                                                           Adjusted 2017                                                        Adjusted 2016                                                        Adjusted ’17
                                                                                                                                                                                                                          ’17 vs ’16                                                                                                                                                                                                       vs ’16
                                                             ---------------------------------------------                        ---------------------------------------------                        ---------------------------------------------                        ---------------------------------------------                        ---------------------------------------------                        ----------------------------------------------
Networks                                                                        $    96                                                              $    79                                                              $    17                                                              $   268                                                              $   246                                                              $     22
Renewables                                                                           38                                                                   35                                                                    3                                                                   97                                                                   77                                                                    20
Corporate                                                         10                              4                              6                              5                             (1 )                                                6  
                                                             -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
Adjusted Net Income                                                             $   143                                           $   118                             25                                           $   369                                           $   322                              48  
                                                             ==================== ===== ====================                      ==================== ===== ====================                      ==================== ===== ====================                      ==================== ===== ====================                      ==================== ===== ====================                      ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                       
                                                                                                                                                                                                                                                                                                                                                                                                                       
                                                                                                                                                                                                                            Avangrid, Inc.
                                                                                                                                                                                                     Reconciliation of Adjusted Non-GAAP Earnings (Loss) Per Share
                                                                                                                                                                                                                                 (EPS)
                                                                                                                                                                                                                              (Unaudited)
                                                                                                                                                                                                                                                                                                                                                                                                                       
                                                                                                                                             Three Months ended June 30,                                                                                                                                                                                     Six Months ended June 30,
                                                             ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                   2017                                                                 2016                                                              ’17 vs ’16                                                              2017                                                                 2016                                                              ’17 vs ’16
                                                             ------------------------------------------------                     ------------------------------------------------                     ------------------------------------------------                     ------------------------------------------------                     ------------------------------------------------                     -------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                       
Networks                                                                        $  0.31                                                              $  0.25                                                              $  0.06                                                              $  0.87                                                              $  0.79                                                              $   0.08
Renewables                                                                         0.10                                                                 0.13                                                                (0.03 )                                                               0.32                                                                 0.27                                                                  0.05
Corporate                                                                          0.03                                                                 0.01                                                                 0.02                                                                 0.02                                                                 0.06                                                                 (0.04 )
Gas Storage                                                    (0.05 )                                           (0.07 )                                            0.02                          (0.05 )                                           (0.10 )                                             0.06  
                                                             -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
  Earnings Per Share                                                            $  0.39                                                              $  0.33                                                              $  0.06                                                              $  1.16                                                              $  1.01                                                              $   0.15
     Adjustments:
Sale of equity method investment                                                      -                                                                (0.01 )                                                               0.01                                                                    -                                                                (0.12 )                                                                0.12
Impairment of investment                                                              -                                                                    -                                                                    -                                                                    -                                                                 0.01                                                                 (0.01 )
Mark-to-market adjustments - Renewables                                            0.04                                                                (0.02 )                                                               0.06                                                                (0.02 )                                                              (0.03 )                                                                0.01
Income tax impact of adjustments*                                                 (0.01 )                                                               0.01                                                                (0.03 )                                                               0.01                                                                 0.06                                                                 (0.05 )
Gas Storage, net of tax                                         0.05                           0.07                          (0.02 )                                            0.05                           0.10                           (0.06 )
                                                             -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
 Adjusted Earnings Per Share                                                    $  0.46                                           $  0.38                                           $  0.08                                           $  1.19                                           $  1.04                                           $   0.15  
                                                             ==================== ===== ====================                      ==================== ===== ====================                      ==================== ===== ====================                      ==================== ===== ====================                      ==================== ===== ====================                      ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                       
                                                                                                                                                                                                                                                                                                                                                                                                                       
Weighted-avg # of Shares (M):                                                     309.5                                                                309.5                                                                                                                                     309.5                                                                309.5
Amounts may not add due to rounding
                                                                                                                                                                                                                                                                                                                                                                                                                       
* 2017: EPS Income tax impact of adjustments: $0.01 from MtM
adjustment - Renewables.
* 2016: EPS Income tax impact of adjustments: $0.05 from sale of
equity method investment - Corporate and $0.01 from MtM adjustment -
Renewables.
                                                                                                                                                                                                                                                                                                                                                                                                                       
                                                                                                                                                                                                                                             Non-GAAP Adjusted Earnings (Loss) Per Share
                                                             ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                       
                                                                                                                                             Three Months ended June 30,                                                                                                                                                                                     Six Months ended June 30,
                                                             ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                               Adjusted 2017                                                        Adjusted 2016                                                          Adjusted                                                           Adjusted 2017                                                        Adjusted 2016                                                        Adjusted ’17
                                                                                                                                                                                                                          ’17 vs ’16                                                                                                                                                                                                       vs ’16
                                                             ---------------------------------------------                        ---------------------------------------------                        ---------------------------------------------                        ---------------------------------------------                        ---------------------------------------------                        ----------------------------------------------
Networks                                                                        $  0.31                                                              $  0.26                                                              $  0.05                                                              $  0.87                                                              $  0.79                                                              $   0.07
Renewables                                                                         0.12                                                                 0.11                                                                 0.01                                                                 0.31                                                                 0.25                                                                  0.06
Corporate                                                       0.03                           0.01                           0.02                           0.02                          (0.00 )                                             0.02  
                                                             -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
 Adjusted Earnings Per Share                                                    $  0.46                                           $  0.38                                           $  0.08                                           $  1.19                                           $  1.04                                           $   0.15  
                                                             ==================== ===== ====================                      ==================== ===== ====================                      ==================== ===== ====================                      ==================== ===== ====================                      ==================== ===== ====================                      ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                       
Weighted-avg # of Shares (M):                                                     309.5                                                                309.5                                                                                                                                     309.5                                                                309.5
Amounts may not add due to rounding

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20170719005289r1&sid=cmtx6&distro=nx&

View source version on businesswire.com: http://www.businesswire.com/news/home/20170719005289/en/

SOURCE: AVANGRID, Inc.

AVANGRID, Inc. 
Analysts: 
Patricia Cosgel, 203-499-2624 
or 
Media: 
Michael West Jr., 203-499-3858


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