INVESTOR PRESENTATION Q2 2018

Transcription

1 INVESTOR PRESENTATION Q2 2018

2 FORWARD-LOOKING STATEMENTS AND NON-IFRS MEASURES FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") that involve substantial known and unknown risks and uncertainties, many of which are beyond the control of Crius Energy Trust (the "Trust"), including, without limitation, statements pertaining to the objectives of the Trust (including to grow distributions to unitholders, increase valuation, grow customer base, increase customer lifetime value and reduce costs), the compelling investment and valuation thesis of trust units of the Trust, forecasted electricity demand, the value/growth proposition of deregulated energy, the timing and progress of the Trust's strategic review and sale of the solar business (if at all), the impact of the proposed solar business divestiture on Adjust EBITDA, customer mix and product offerings, the Trust's ability to achieve organic growth through accretive acquisitions, the potential of the Comcast partnership and Integrated Energy Platform strategy, annual run-rate synergies as a result of strategic initiatives, the benefits of portfolio optimization, cost reduction plans and annual run-rate cost reductions for 2018, capital deployment (including repurchases of trust units of the Trust under the normal course issuer bid and debt reduction), access to capital, scalable platform, diversified portfolio, customer churn, customer revenues and margins, customer additions and renewals, customer consumption levels, non-ifrs financial measures (including, EBITDA, Adjusted EBITDA, Distributable Cash and payout ratio), Total Shareholder Returns, revenue, cash availability, embedded margin, gross margin, selling expenses, general and administrative expenses, public float, current yield, annualized distribution, sufficiency of capital, stability of distributions, market penetration, cost-effective growth strategies, growth forecasts, risk management, assertiveness of acquisitions/transactions, tax treatment of the Trust, impact of U.S. tax reform, treatment under governmental regulatory regimes and expected opening of energy markets. A statement may be considered a forward-looking statement when it uses what the Trust knows or expects today to make a statement about the future. Forward-looking statements may be identified by words such as anticipate, assume, believe, could, expect, goal, guidance, intend, may, objective, outlook, plan, seek, should, strive, target, will or other similar expressions. Statements that are not historical facts may be considered forward-looking statements and may involve estimates, assumptions and uncertainties, which could cause actual results or outcomes to differ materially from those expressed in such forward-looking statements. While these statements are based on current expectations, forward-looking statements inherently involve a number of risks and uncertainties which could cause actual results to differ from those anticipated. These risks include, but are not limited to, impact of weather, levels of customer natural gas and electricity consumption, rates of customer additions and renewals, fluctuations in natural gas and electricity prices, changes in regulatory regimes and decisions by regulatory authorities, competition, growth of the U.S. energy industry, dependence on certain suppliers, financial performance, and other business and economic conditions. Additional information on these factors and other factors that could affect the Trust's operations, financial results or distribution levels are described in (i) the annual information form of the Trust for the fiscal year ended December 31, 2017 (dated March 8, 2018), and (ii) the management's discussion and analysis of the Trust for the three and six months ended June 30, 2018 (dated August 13, 2018), which are available on SEDAR under the Trust's issuer profile at No assurance can be given that the expectations set forth in this presentation will ultimately prove to be accurate and, accordingly, such forward-looking statements should not be unduly relied upon. It is not possible for Management to predict new factors that may emerge from time to time, or to assess in advance the impact of each such factor on the Trust's business, or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in forward-looking statements. These forward-looking statements are given only as of the date of this presentation and the Trust does not assume any obligation to update or revise any forward-looking statement to reflect new events or circumstances, except as may be expressly required by applicable securities laws. This presentation is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy securities of the Trust, and is being provided to interested parties to assist them in their evaluation of the Trust. NON-IFRS FINANCIAL MEASURES Statements throughout this presentation may make reference to EBITDA, Adjusted EBITDA, Distributable Cash and payout ratio, which are non-ifrs financial measures commonly used by financial analysts in evaluating the financial performance of companies, including companies in the energy industry. Accordingly, Management believes EBITDA, Adjusted EBITDA, Distributable Cash and payout ratio may be useful metrics for evaluating the Trust's financial performance, as they are measures that Management uses internally to assess performance, in addition to IFRS measures. As there is no generally accepted method of calculating EBITDA, Adjusted EBITDA, Distributable Cash and payout ratio, these terms as used herein are not necessarily comparable to similarly titled measures of other companies. EBITDA, Adjusted EBITDA, Distributable Cash and payout ratio have limitations as analytical tools and should not be considered in isolation from, or as an alternative to, net (loss) income or other data prepared in accordance with IFRS. EBITDA is calculated as earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is calculated as EBITDA adjusted to exclude any change in the fair value of derivative instruments, change in fair value of non-controlling interest, change in fair value of warrant liability, unit-based compensation, goodwill impairment and distributions to non-controlling interest. The items excluded from EBITDA and Adjusted EBITDA are significant in assessing the Trust's operating results and liquidity. See the section entitled "Reconciliation of Net (Loss) Income and Total Comprehensive (Loss) Income to EBITDA and Adjusted EBITDA" in the management's discussion and analysis of the Trust to which such financial information relates for a reconciliation of EBITDA and Adjusted EBITDA to net loss and comprehensive loss as calculated under IFRS for the relevant periods, the most directly comparable measure in the Trust's consolidated financial statements. See the section entitled "Distributable Cash and Payout Ratio" in the management's discussion and analysis of the Trust to which such financial information relates for a reconciliation of Distributable Cash to cash flows provided by (used in) operating activities as calculated under IFRS, the most directly comparable measure in the Trust's consolidated financial statements. Also, please refer to "Key Terms and Abbreviations" in the management's discussion and analysis of the Trust to which such financial information relates for the definitions of non-ifrs financial measures and other terms. Other financial data has been prepared in accordance with IFRS. All figures in this presentation are presented in U.S. Dollars and are reflective of information available as of June 30, 2018, unless otherwise noted. CRIUS ENERGY INVESTOR PRESENTATION Q

3 CRIUS ENERGY: A LEADING RETAIL ENERGY PROVIDER PRODUCTS ELECTRICITY & NATURAL GAS CUSTOMER BASE 1.4 MILLION CUSTOMERS* IN 19 STATES & DISTRICT OF COLUMBIA Electricity Natural Gas Focus on value-added products and services Fixed, variable & index products available Term products up to 5 years Renewable energy options Electricity & Natural Gas *Measured in Residential Customer Equivalents or RCEs. An RCE is a unit of measure used by the energy industry to denote the typical annual commodity consumption by a single-family residential customer. A single RCE represents 100 MMBtu of natural gas or 10 MWh of electricity. CRIUS ENERGY INVESTOR PRESENTATION Q

4 CRIUS ENERGY: A LEADING RETAIL ENERGY PROVIDER SALES & MARKETING DIVERSIFIED SALES CHANNELS & FAMILY OF BRANDS STRATEGY DIRECT-TO- CONSUMER EXCLUSIVE PARTNERSHIPS AWARDS Crius brands have been frequently recognized by J.D. Power for Highest in Residential Customer Satisfaction with Retail Electric Service 2016 USG&E ranked #1 in Maryland and New Jersey USG&E ranked #3 in Connecticut, Massachusetts and New York TriEagle Energy ranked #6 in Texas 2015 Viridian Energy ranked #1 in Massachusetts USG&E ranked #1 in New Jersey USG&E ranked #2 in Connecticut and Massachusetts 2014 USG&E ranked #2 in New Jersey Maryland Gas & Electric and New Jersey Gas & Electric received the highest numerical score among seven providers in their respective regions in the J.D. Power 2016 Retail Electric Provider Residential Customer Satisfaction Study, based on 24,185 total responses, measuring the experiences and perceptions of customers with their retail electric provider, surveyed August 2015-June CRIUS ENERGY INVESTOR PRESENTATION Q

5 INVESTMENT HIGHLIGHTS HIGH GROWTH BUSINESS Customer base increased by nearly 200% since the initial public offering in November 2012 Successful track record of organic growth, accretive strategic acquisitions and customer book acquisitions Significant growth potential from exclusive 5-year Comcast partnership and proprietary Integrated Energy Platform strategy FY 2019 UPSIDE FROM STRATEGIC INITIATIVES Achieved annual run-rate synergies of $20 million through August 2018, and expect to exceed top end of $20-25 million stated range in the near term Active portfolio optimization initiative in 2018 to maximize customer lifetime value through improved margin and customer retention Third party advisor engaged to sell the solar business, and expect negligible negative impact from Q onwards. Elimination of negative impact of $9.1 million for the last twelve months will positively impact Adjusted EBITDA going forward. COMPELLING VALUATION & DISTRIBUTION Discount to peers in the 0.5x - 2.0x EBITDA multiple range 13% Yield and 90.6% normalized LTM Payout Ratio $40.8 million of cash availability and 1.4x Net Debt-to-Adjusted EBITDA ratio Unit Price at 10-Aug-2018 Units Outstanding Market Capitalization Annual Distribution Yield KWH.UN Toronto Stock Exchange C$ M C$351 M C$0.84 / unit 13.5% Management/Board Ownership 18% Management/Board Ownership reflects interests held by Senior Management and the Trust Board when including all Units, PURs held by Management and DTUs held by the Board. CRIUS ENERGY INVESTOR PRESENTATION Q

6 FINANCIAL HIGHLIGHTS POSITIVE TRENDS IN THE BUSINESS CONTRIBUTING TO GROWTH IN REVENUE AND ADJUSTED EBITDA REVENUE (in US$ millions) ADJUSTED EBITDA (in US$ millions) $601 $686 $744 $876 $1,109 $38 $53 $61 $65 $ LTM Q LTM Q DISTRIBUTABLE CASH (in US$ millions) PAYOUT RATIO $29 $35 $39 $45 $34 99% 58% 58% 64% 106% LTM Q LTM Q CRIUS ENERGY INVESTOR PRESENTATION Q

7 CUSTOMER HIGHLIGHTS NEW CUSTOMER GROWTH (RCEs in 000s) CUMULATIVE CUSTOMER GROWTH (millions) EMBEDDED MARGIN (in US$ millions) ,410 1,387 $248 $280 $300 $474 $ Organic Growth (gross adds) Acquisition Growth (gross adds) Q Q SUCCESSFUL ACQUISITION TRACK RECORD April: +40,000 customers in NY and PA April: +200,000 customers in TX, NJ and PA February: +75,000 customers in IL, NY, OH and TX July: +350,000 customers in the US Midwest and Northeast June: +15,000 in five states In addition to the above transactions, Crius acquired customer portfolios from PNE in Feb 2014, Gulf Energy in Jun 2015, Big Sky Gas in Jul 2017, Mint Energy in May 2018, and a residential customer portfolio from a CA based energy retailer in See definition of embedded margin on slide 11 CRIUS ENERGY INVESTOR PRESENTATION Q

8 BUSINESS UPDATE COST REDUCTION PLAN Achieved annual run-rate synergies of $20 million through August 2018, and expect to exceed top end of $20-25 million stated range in the near term Achieved annual run-rate of $10 million in USG&E synergies at end of Q Total annual run-rate cost reductions of $22 million to be achieved by year end STRATEGIC REVIEW OF SOLAR BUSINESS In final stage of a multi-step process driven by a third party advisor to sell the solar business Expect negligible negative impact from Q onwards. Elimination of negative impact of $9.1 million for the last twelve months will positively impact Adjusted EBITDA going forward. ADDED SEVERAL NEW HIGHLY QUALIFIED BOARD MEMBERS Added Bob Gries, Ali Hedayat and Marcie Zlotnik to the Board of Directors Management and Board of Directors now have ~ 18% ownership interest Marcie Zlotnik is the co-founder of Gexa Energy and StarTex Power CRIUS ENERGY INVESTOR PRESENTATION Q

9 ACHIEVEMENT OF COST SYNERGIES Annual cost-reductions of approximately $22 million on a run-rate basis expected by the end of 2018 with annual run-rate cost-reductions of approximately $20 million achieved to date. Cost Synergies (1) Cost to Achieve (2) Description Quarter ending ($M) (Cumm $M) ($M) (Cumm $M) September 2017 $0.9 $ USG&E integration synergies (treasury, accounts payable, legal and operations functions) December 2017 $1.5 $2.4 $0.1 $0.1 March 2018 $2.3 $4.7 $0.1 $0.2 June 2018 $6.1 $10.8 $0.4 $0.6 USG&E integration synergies (accounting, operations and mass markets functions) USG&E integration synergies (IT, accounting and energy supply functions), audit fee synergies, billing system consolidation, human resources system consolidation Executive restructuring, billing systems consolidation, USG&E integration synergies (IT) September 2018 $9.5 $20.3 $1.4 $2.0 Workforce restructuring to reflect focus on residential and small commercial sales December 2018 $1.4 $21.7 $4.4 $6.4 Billing system consolidation, corporate policy changes $21.7 $6.4 (1) Cost synergies are shown based on achievement of an annual run-rate of cost-reductions i.e. the savings will be realized in the following quarter forward. Additionally, costs are shown on a cash basis (pre-tax), and while the majority will impact General and administrative expenses and Adjusted EBITDA, some costs may impact capital expenditures and therefore, Cash flows used in investing activities and Distributable Cash. (2) Cost to achieve are shown based on a cash basis (pre-tax) and will not all impact General and administrative expenses and Adjusted EBITDA, for example, costs to achieve include unit based compensation payments, or items included on the USG&E opening balance sheet, which are not impactful to Adjusted EBITDA, but will impact Cash flows from Operations and/or Distributable Cash. CRIUS ENERGY INVESTOR PRESENTATION Q

10 CAPITAL ALLOCATION Reprioritization of capital allocation to provide more flexibility in how capital return growth is provided to unitholders, while maintaining commitment to current baseline distribution. Discretionary Cash Flow Baseline distribution of C$0.8368/unit, or ~C$48M/year, represents a return of ~C$143M in cash to unitholders over a 3 year period or ~41% of market cap Baseline Distribution Payout Ratio Payout ratio provides buffer to allow for variations, one-time items, working capital investment and other requirements. Baseline distribution hedged for next 12 months at floor of C$1.25 Discretionary Cash Flow Recent elevation is temporary as strategic initiatives are implemented, and there is sufficient liquidity to pay distributions during the temporary elevated period 1 Growth Initiatives 2 Unit Repurchases 3 Debt Reduction 4 Distribution Increases Provides flexibility to apply the excess cash flows generated in a way that maximizes unitholder value CRIUS ENERGY INVESTOR PRESENTATION Q

11 FINANCIALS

12 FINANCIAL METRICS (US$M) Q Q FY 2017 FY 2016 FY 2015 Revenue $269.1 $180.2 $875.9 $743.8 $686.3 Gross Margin $54.1 $37.2 $184.0 $158.5 $163.7 Gross Margin (% of revenue) 20.1% 20.6% 21.0% 21.3% 23.9% Selling Expenses $11.3 $6.1 $34.4 $28.8 $38.9 G&A Expenses* $26.8 $24.9 $84.9 $68.9 $72.2 Adjusted EBITDA* $16.0 $14.1 $64.8 $60.8 $52.6 Net Income $5.3 $(14.6) $20.2 $44.4 $(74.9) Distributable Cash $9.3 $11.4 $45.0 $38.9 $34.7 Cash Flow from Operations $8.4 $1.3 $13.2 $41.0 $37.3 LTM Payout Ratio 106.0% 60.1% 63.8% 58.1% 58.2% Cash and Cash Equivalents $19.6 $29.4 $18.2 $10.9 $11.2 Total Cash and Availability $40.8 $29.7 $49.4 $49.9 $42.9 Adjusted Working Capital less Net Debt** $45.6 $6.0 $9.2 $(14.8) $(16.3) Net Debt to Adjusted EBITDA 1.4x 0.4x 1.4x 0.0x -0.1x Embedded Margin*** $486.2 $304.5 $474.0 $299.7 $279.5 ADJUSTED EBITDA & DISTRIBUTABLE CASH (US$M) Adjusted EBITDA Distributable Cash *General & Administrative expense and Adjusted EBITDA have been adjusted to exclude a loss on sale of the Viridian assets and associated expenses of $7.3 M for FY2016, and FY2017 Adjusted EBITDA excludes $17.5 million for a legal reserve and associated legal fees. **Adjusted Working Capital is defined as current assets less current liabilities excluding unrealized gains and losses on derivatives less Net (current) Debt. ***Embedded margin represents a five year non-discounted measure of managements estimate of future electricity and natural gas margins based on forecasted volumes and unit margins for existing customers with appropriate assumptions for customer attrition and renewals. Embedded margin is not intended to take into account expenses such as selling, general and administrative or financing costs necessary to realize the gross margins. It is only calculated for existing customers and does not factor future customer additions. Embedded margin is a non-ifrs measure. CRIUS ENERGY INVESTOR PRESENTATION Q

13 STRATEGIC INITIATIVES: ADJUSTED EBITDA Demonstrated fundamental strength of the deregulated energy business after divesting the solar business, completing the USG&E integration and achieving increased cost-synergy targets. (2) (1) (1) Represents certain non-recurring general and administrative costs incurred in the last twelve months, comprising $1.0 million in the third quarter of 2017, $1.0 million in the first quarter of 2018 and $4.1 million in the second quarter of 2018, primarily relating to USG&E transaction costs, costs associated with the strategic review and 2018 proxy process and restructuring charges. (2) Represents estimate of general and administrative expense synergies achieved (on a run-rate basis) through the second quarter of 2018, but not yet realized due to the timing of achieving the cost reductions during the last twelve month period. CRIUS ENERGY INVESTOR PRESENTATION Q

14 STRATEGIC INITIATIVES: DISTRIBUTABLE CASH AND PAYOUT RATIO Demonstrated fundamental strength of the deregulated energy business after divesting the solar business, completing the USG&E integration and achieving increased cost-synergy targets. (1) (3) (2) (1) Adjustments tax-effected for U.S. state income tax only at an assumed blended rate of 6.0%, due to current Federal tax-loss position. (2) Represents certain non-recurring general and administrative costs incurred in the last twelve months, comprising $1.0 million in the third quarter of 2017, $1.0 million in the first quarter of 2018 and $4.1 million in the second quarter of 2018, primarily relating to USG&E transaction costs, costs associated with the strategic review and 2018 proxy process and restructuring charges. (3) Represents estimate of general and administrative expense synergies achieved (on a run-rate basis) through the second quarter of 2018, but not yet realized due to the timing of achieving the cost reductions during the last twelve month period. CRIUS ENERGY INVESTOR PRESENTATION Q

15 GROSS MARGIN AND SG&A Focused on driving sustainable growth in our core deregulated energy business and improving our overall cost structure GROSS MARGIN (US$/RCE, PER YEAR) $201 $229 $171 $163 $172 COST TO SERVE* (Fixed G&A US$ per RCE) $85 $72 $56 $49 $50 COST TO ACQUIRE (Upfront selling expenses** US$ per RCE) $46 $34 $48 $21 $21 FY 2014 FY 2015 FY 2016 FY 2017 LTM Q Past declining margin trend expected to moderate and margins to remain near current levels, due to: - Higher margin residential-focused USG&E channels - Increased focus on residential and small commercial segment - Strategic initiatives focused on margin enhancement including portfolio optimization and increased customer engagement FY 2014 FY 2015 FY 2016 FY 2017 LTM Q Positive downward cost-to-serve trends continue and will further benefit from USG&E cost-synergies Focus on cost-control including various restructurings and workforce rationalizations Target USG&E cost synergies expected to result in savings of $8/RCE FY 2014 FY 2015 FY 2016 FY 2017 LTM Q Cost-to-acquire remains low, despite uptick due to USG&E higher-margin residential sales channels Cost-to-acquire increases to $48/RCE, due to higher-upfront cost-to-acquire residential and small commercial channels Note: * Cost to serve calculated as Fixed G&A (total G&A less variable G&A items, namely, POR fees / bad debt, GRT & other taxes and assessments, and certain non-recurring general and administrative costs incurred in the last twelve months, comprising $1.0 million in the third quarter of 2017, $1.0 million in the first quarter of 2018 and $4.1 million in the second quarter of 2018, primarily relating to USG&E transaction costs, costs associated with the strategic review and 2018 proxy process and restructuring charges. per average RCE, deregulated energy only). ** Upfront selling expenses calculated as upfront selling costs per average RCE, deregulated energy only. CRIUS ENERGY INVESTOR PRESENTATION Q

16 BALANCED RISK PORTFOLIO Strong and diversified electricity and natural gas customer base CONTRACT TYPE CUSTOMER SEGMENT REVENUE EXPOSURE COMMODITY / GEOGRAPHY 28% 35% 20% 33% 15% 13% 72% 65% 80% 7% 2% 30% Fixed Commercial Credit Check Mid-Atlantic Electric Variable Mass Market Utility Guaranteed New England Electric Texas Electric New York Electric Midwest Electric Natural Gas Mid-Atlantic (PJM) represents all or parts of DE, IL, IN, KY, MD, MI, NC, NJ, OH, PA, TN, VA, WV and DC. New York (NY-ISO) represents NY exclusively. New England (ISO-NE) represents all or parts of CT, MA, ME, NH, RI and VT. Midwest (MISO) represents all or parts of AK, IA, IL, IN, KY, LA, MI, MN, MO, MS, MT, ND, SD, WI, and Manitoba, Canada. Texas (ERCOT) represents TX exclusively. CRIUS ENERGY INVESTOR PRESENTATION Q

17 APPENDIX

18 CRIUS EXECUTIVE TEAM Michael Fallquist Chief Executive Officer Roop Bhullar Chief Financial Officer Barbara Clay Chief Legal Officer Christian McArthur Chief Operating Officer Kevin McMinn Chief Sales Officer Successful executive and entrepreneur who founded the company in 2009 and led the IPO for Crius Energy on the TSX in 2012 Served as COO of Commerce Energy and in various roles at Macquarie Group in the U.S. and Australia Winner of 2012 Ernst & Young Entrepreneur of the Year Award (NY region Cleantech category) Graduate of Colgate University (BA, Economics) and Cornell University (MBA) Over 12 years of financial leadership in the retail energy industry, both in the U.S. and internationally Track record of success raising equity and debt capital Formerly with Just Energy, Universal Energy, Commerce Energy, King Country Energy Graduate of University of Waikato (BMS/LLB Hons) and UCLA (MBA) Over 19 years in compliance, law and governance in highly regulated industries 9 years in private practice representing energy, communication and financial industry clients for M&A, joint ventures, and complex contract matters Graduate of Rutgers University, and earned her J.D. at Pace Law School Leader in trading, risk management, customer analytics and forecasting with over 15 years of retail energy expertise Led retail supply at Just Energy, oversaw growth from Canadian market to current international footprint Led 2 strategic solar acquisitions and launched Crius Solar, a vertically integrated solar and company Graduate of Queens University (BASc Engineering Physics) and University of Waterloo (MASc Electrical Engineering) Over 21 years of leadership and operational success with U.S. and international corporations with proven performance in a wide range of industries COO of USG&E leading a cultural transition to a customer focused environment, garnering high rankings by JD Power while increasing profitability Served as EVP and Board Member of ESPI bringing the company to recognition as #9 of the Top 10 Energy Companies on the INC500/2008 Successful track record in managing natural gas and power procurement, financial hedging and risk management operations CRIUS ENERGY INVESTOR PRESENTATION Q

19 CRIUS BOARD OF DIRECTORS James Ajello Independent Director Brian Burden Independent Director Michael Fallquist Director & CEO Robert Gries, Jr. Independent Director Ali Hedayat Independent Director Robert Huggard Independent Director Daniel Sullivan Independent Director Marcie Zlotnik Independent Director Director, SKAI Ventures Trustee, Hawaii Pacific University Former Executive VP, CFO, Treasurer & Chief Risk Officer of Hawaiian Electric Industries, Inc. Former Senior VP of Business Development and Senior VP & GM of Commercial and Industrial Marketing and President of Reliant Energy Inc. Director, Trinidad Drilling Ltd. Director, Canadian Soccer Association Former CFO, TransAlta Corp. Former CFO, Molson Coors Founded Crius Energy Commerce Energy, Macquarie Group Over 11 years in the retail energy industry Prior Chairman of the Board and director of Crius Energy Administrator Inc. Former Chief Executive Officer of Public Power, LLC Director of several investment funds, which own approximately 14.4% Units Founder and Managing Director of Maryana Capital in Toronto Co-founder of Edoma Capital in London and Partner at Indus Capital in London Managing Director of the European Principal Strategies group and Managing Director and Co-head of the Americas at the Goldman Sachs Director, Restaurant Brands International Inc., US Geothermal Director, Guelph Hydro Electric Systems Inc. Former CEO, Ontario Energy Association Former President, Direct Energy President of Lindaura Consulting Director, Ontario Teachers Pension Plan Board, Choice Property Real Estate Trust, Allied Properties Real Estate Investment Trust, IMP Group International Inc. Former Consul General for Canada in New York Director, ESCO Advisors LLC and Frontier Utilities, LLC. Former Co-founder, Chairman, and COO of StarTex Power in Texas Former Co-founder, President, and Principal Accounting Officer of Gexa Energy Former President and CEO of TotalNet Communications, Inc. CRIUS ENERGY INVESTOR PRESENTATION Q

20 ADJUSTED EBITDA Q LTM Net income and total comprehensive income $5.3 $70.6 Excluding the impacts of: Finance costs $5.3 $21.8 Provision for (benefit from) income taxes $1.0 $(51.4) Depreciation and amortization $12.8 $52.2 EBITDA $24.4 $93.2 Excluding the impacts of: Unit-based compensation $0.5 $1.4 Change in fair value of derivative instruments $(8.2) $(21.2) Change in fair value of warrants $(0.7) $(2.0) Legal reserve and associated legal fees - $0.7 Adjusted EBITDA $16.0 $72.1 DISTRIBUTABLE CASH AND PAYOUT RATIO Q LTM Cash flows from operating activities $8.4 $49.3 Adjusted to: Exclude: changes in select operating assets and liabilities $2.0 $11.0 Include: Finance costs included in financing activities $(5.1) $(21.2) Include: Maintenance Capital Expenditures included in investing activities $(1.6) $(5.5) Distributable Cash $3.7 $33.6 Total Distributions $9.3 $35.6 Payout Ratio 251.4% 106.0% CRIUS ENERGY INVESTOR PRESENTATION Q

21 AWARD WINNING FAMILY OF BRANDS USG&E ranked by Inc. magazine in the Top 10 fastest growing energy companies Crius ranks #50 on Direct Selling News Global 100 list through its Viridian Energy brand USG&E receives Bronze American Business Award for Company of the Year USG&E ranked #1 in Customer Satisfaction by J.D. Power in New Jersey 2010 USG&E receives key to the City of Doral, Florida Crius creates market for affordable, responsible energy; helps consumers avoid 46 Million pounds of harmful CO 2 through its Viridian Energy brand Verengo Solar completes its 1,000th residential solar installation 2011 USG&E ranked by Inc. magazine as the 3 rd fastest growing private energy marketer USG&E co-founds ACCES, a consumer advocacy organization focused on energy choice Verengo Solar is ranked #69 of Top 100 U.S. Job Creators by Hire Power Awards; earns Angie s List Super Service Award USG&E receives Good to Great award from Greater Miami Chamber of Commerce CEO Michael Fallquist named Ernst & Young Entrepreneur Of The Year - Cleantech category, New York Crius wins Ethos Rising Star Award from Direct Selling News for its Viridian Energy brand 2013 USG&E recognized as a Top Workplace by the South Florida Business Journal and Florida Trend Magazine Verengo Solar marks 10,000th residential solar install 2014 Crius ranks #45 on Direct Selling News Global 100 list through its Viridian Energy brand Crius named Energy Supplier of the Year by the Energy Marketing Conference Careerbuilder names Verengo Top Workplace in Arizona Verengo ranked in the Top 5 U.S. residential solar installers by GTM/SEIA 2015 Crius ranked #1 in Customer Satisfaction in Massachusetts by J.D. Power through its Viridian Energy brand; USG&E ranked #2 in Massachusetts by J.D. Power USG&E ranked #2 in Customer Satisfaction by J.D. Power in Connecticut 2016 USG&E ranked #1 in Customer Satisfaction by J.D. Power in Maryland and New Jersey USG&E brands rank in the Top 3 for Customer Satisfaction by J.D. Power in CT, MA and NY Crius ranked #6 in Texas by J.D. Power through its TriEagle Energy brand 2017 Crius awarded $10 Million incentive package from the State of Connecticut Crius commercial breaks the Energy Research Top 10 in Broker Satisfaction through TriEagle USG&E receives the 2016 Energy Marketing Conferences Leadership and Integrity Award CORPORATE SOCIAL RESPONSIBILITY 4,710,410,990 POUNDS OF CO 2 EMISSIONS AVOIDED IN ,498 PASSENGER VEHICLES OFF THE ROAD FOR A YEAR 51,255,268 TREE SEEDLINGS FOR TEN YEARS Source: CRIUS ENERGY INVESTOR PRESENTATION Q

22 CONTACT INFORMATION Michael Fallquist Chief Executive Officer Roop Bhullar Chief Financial Officer Kelly Castledine Investor Relations