Income stability and security
Northland management is committed to ensuring unitholder value remains as sustainable as the power we generate.
To ensure revenue stability, all of Northland’s sales are made under long-term power purchase agreements (PPAs) with creditworthy customers. Long-term contracts assure the supply and price of natural gas, which is the Fund’s largest cost.
Northland distributions, while creating premium returns, have not strained the company. Distributions have grown an average of 2% a year since 1999, while distributable cash has grown at more than 4% a year. Except for 2003, the Fund has paid out less than it took in every year.
This conservative approach has created a current market cap of over $1 billion and a strong balance sheet, enabling Northland to pursue attractive development opportunities and protecting its ability to make future distributions.
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