Off restriction following equity raise

Canadian Market Summary

January 2, 2018

We come off restriction following Emera’s ~$700m common equity offering (excluding the over-allotment option). While the company noted at its recent investor dinner that it required external financing to fund its $7.7b 2017-2020 capital plan, the equity issue was larger and quicker than we expected. Our estimates decline as Emera accelerates the de- levering of its balance sheet. Looking forward, we expect the company will require additional financing to bring its debt-to-capitalization down to its targeted 55% level and we forecast a $500m hybrid issue in 2018 and $500m common equity in 2019. We remain Sector Perform rated, and our target decreases $1 to $50, commensurate with our lower estimates.

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