Pattern Energy Reports Fourth Quarter and Full Year 2013 Financial Results

Pattern Energy Reports Fourth Quarter and Full Year 2013 Financial Results

Declares First Quarter 2014 Dividend of $0.3125 Per Class A Common Share

SAN FRANCISCO, Feb. 28, 2014 (GLOBE NEWSWIRE) -- Pattern Energy Group Inc.
(Nasdaq:PEGI) (TSX:PEG) (Pattern Energy), an independent power company, today
announced its financial results for the fourth quarter and full year of 2013.

Highlights

  *Cash available for distribution of $42.6 million for 2013, up 141% from
    2012
  *Adjusted EBITDA of $141.8 million for 2013, up 88% from 2012
  *Electricity sales of 2,259 GWh for 2013, up 35% from 2012
  *Revenue of $202 million for 2013, up 76% from 2012
  *Increased owned megawatts by 214 MW, up 21%
  *Initiated quarterly cash dividend of $0.3125 per Class A common share in
    Q4
  *Declared Q1 2014 dividend of $0.3125 per Class A common share

"This was a tremendous year for Pattern Energy that included our successful
IPO – the first U.S. listing of a wind power company – the growth of our
portfolio to ten projects totaling 1,255 MW and the declaration of our first
quarterly dividend," said Mike Garland, President and CEO of Pattern Energy.
"With a strong balance sheet, a clearly identified pipeline of ROFO project
acquisitions and significant opportunities for third-party acquisitions, we
are optimally positioned to grow our portfolio of world-class wind power
projects, which will increase our cash available for distribution and allow us
to grow the quarterly dividend."

In 2013, Pattern Energy acquired 45% of the 149 MW Grand Renewable wind power
project in Ontario and made a commitment to acquire 81% of the 182 MW
Panhandle 2 wind power project in Texas upon its completion. Pattern Energy's
portfolio now totals ten wind power projects, including Panhandle 2, with a
total owned capacity of 1,255 MW.

Pattern Energy successfully closed its initial public offering (IPO) on
October 2, 2013. Results for periods prior to the IPO are attributable to its
predecessor entities.

Financial Results

Pattern Energy sold 532 GWh of electricity in the fourth quarter of 2013
compared to 453 GWh in the same period in 2012. For the year ended December
31, 2013, Pattern Energy sold 2,259 GWh of electricity, compared to 1,673 GWh
in 2012 across a smaller fleet of projects. Electricity sold was lower than
expected largely due to lost production from reimbursable turbine down time,
which has been corrected, and from wind conditions that were lower than the
long-term average.

Net income in the fourth quarter of 2013 was a loss of $19.4 million compared
to a loss of $4.5 million for the same period last year. The decrease in the
Company's fourth quarter net income was $14.9 million, which was primarily due
to unrealized losses attributable to its energy hedge and to the impact of
recording a U.S. income tax valuation allowance on certain deferred tax assets
that were contributed to the Company at the time of its IPO, partially offset
by unrealized gains attributable to interest rate swaps.

For the full year ended December 31, 2013, net income was $10.1 million,
compared to a loss of $13.4 million in 2012. The increase in the Company's
annual net income was primarily due to a full year of commercial operations at
the Spring Valley, Santa Isabel and Ocotillo projects, as well as unrealized
gains attributable to interest rate swaps.

Adjusted EBITDA

Adjusted EBITDA was $29.4 million for the fourth quarter of 2013 compared to
$21.1 million in the same period last year. For the full year ended December
31, 2013, adjusted EBITDA was $141.8 million compared to $75.2 million for
2012. A reconciliation of adjusted EBITDA to net income determined in
accordance with GAAP is shown below.

Cash Available For Distribution

Cash available for distribution in the fourth quarter of 2013 was $5.6 million
compared to $5.6 million in the same period last year. For the full year ended
December 31, 2013, cash available for distribution was near the expected
result at $42.6 million compared to $17.7 million for 2012. A reconciliation
of cash available for distribution to net cash provided by operating
activities determined in accordance with GAAP is shown below.

Quarterly Dividend

On November 26, 2013, Pattern Energy announced that its Board of Directors
approved the introduction of a quarterly cash dividend in the amount of
$0.3125 per Class A common share for the fourth quarter, which represents
$1.25 on an annualized basis.

On February 26, 2014, the Board of Directors approved a quarterly dividend of
$0.3125 per Class A common share for the first quarter of 2014, which
represents $1.25 on an annualized basis. The dividend will be paid on April
30, 2014 to shareholders of record as of March 31, 2014.

Acquisition Pipeline

In addition to potential acquisitions of assets from third parties, Pattern
Energy has the Right of First Offer (ROFO) on an identified pipeline of
acquisition opportunities from Pattern Energy Group LP (Pattern Development).
Since the IPO, the initial ROFO projects grew in size by 78 MW. In December,
the Company acquired two ROFO projects. The remaining initial ROFO projects
include the following:


Asset       Location          Owned MW Status
Gulf Wind   Carson County, TX 76       Operational
Panhandle 1 Panhandle, TX     179      Construction
K2          Ontario, Canada   90       Financing in Process
Armow       Ontario, Canada   90       Ready for Financing
Meikle      BC, Canada        175      Pre-construction

Non-GAAP Financial Measures (unaudited)

The following tables reconcile net income (loss) to adjusted EBITDA and cash
available for distribution, respectively, for the periods presented (in
thousands):

                            Pattern Energy Group Inc.
                            Three Months Ended      For the Year Ended
                             December 31,            December 31,
                            2013         2012        2013        2012
                                                              
Net income (loss)            $(19,376)  $(4,455)  $10,072   $(13,376)
Plus:                                                          
Interest expense, net of     15,186      10,944     61,118     35,457
interest income
Tax provision (benefit)      11,347      (4,851)    4,546      (3,604)
Depreciation and accretion   21,422      14,476     83,180     49,027
EBITDA                       $28,579    $16,114   $158,916  $67,504
Unrealized (gain) loss on    6,050       7          11,272     6,951
energy derivative
Unrealized (gain) loss on    (4,692)     4,921      (15,601)   4,953
interest rate derivatives
Interest rate derivative     1,040       --        2,099      --
settlements
Gain on transactions         1,205       --        (5,995)    (4,173)
Plus, our proportionate
share in the following from                                    
our equity accounted
investments:
Interest expense, net of     228         44         267        44
interest income
Tax (benefit) provision      (88)        (122)      (172)      (65)
Depreciation and accretion   6           --        20         --
Unrealized gain on interest
rate and currency            (2,985)     221        (9,076)    27
derivatives
Realized loss (gain) on
interest rate and currency   74          (38)       39         --
derivatives
Adjusted EBITDA              $29,417    $21,147   $141,769  $75,241
                                                              
                            Pattern Energy Group Inc.
                            Three Months Ended      For the Year Ended
                             December 31,            December 31,
                            2013         2012        2013        2012
                                                              
Net cash provided by         $9,756     $4,544    $78,152   $35,051
operating activities
Changes in current operating 5,233       6,959      8,237      6,885
assets and liabilities
Network upgrade              618         1,236      1,854      6,263
reimbursement
Use of operating cash to
fund maintenance and debt    --          (522)      --         (1,047)
reserves
Release of restricted cash
to fund general and          318         --         318        --
administrative costs
Operations and
maintenancecapital          (388)       (19)       (819)      (623)
expenditures
Less:                                                          
Distributions to             (866)       (244)      (2,292)    (1,298)
noncontrolling interests
Principal payments paid from (9,041)     (6,356)    (42,829)   (27,546)
operating cash flows ^(1)
Cash available for           $5,630     $5,598    $42,621   $17,685
distribution
                                                              
^(1) Excludes $7,495 of principal pre-payments on our Ocotillo project which
were paid from ITC cash grant proceeds for the year ended December 31, 2013

Conference Call and Webcast

Pattern Energy will host a conference call and webcast to discuss these
results at 10:30 a.m. U.S. Eastern Time on Friday, February 28, 2014. Mike
Garland, President and CEO, and Mike Lyon, CFO, will co-chair the call.
Participants should call (888) 231-8191 or (647) 427-7450 and ask an operator
for the Pattern Energy earnings call. Please dial in 10-15 minutes prior to
the call to secure a line. A replay will be available shortly after the call.
To access the replay, please dial (855) 859-2056 or (416) 849-0833 and enter
access code 2062037. The replay recording will be available until 12:00 a.m.
U.S. Eastern Time, March 14, 2014.

A live webcast of the conference call will be also available in the investor
section of Pattern's website at www.patternenergy.com. An archived webcast
will be available for one year.

About Pattern Energy

Pattern Energy Group Inc. (Pattern Energy) is an independent power company
listed on the NASDAQ ("PEGI") and Toronto Stock Exchange ("PEG"). Pattern
Energy has a portfolio of ten wind power projects, with a total owned capacity
of 1,255 MW, in the United States, Canada and Chile that use proven,
best-in-class technology. Pattern Energy's wind power projects generate stable
long-term cash flows in attractive markets and provide a solid foundation for
the continued growth of the business. For more information, visit
www.patternenergy.com.

Cautionary Statement Regarding Forward-Looking Statements

Certain statements contained in this press release constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995 and "forward-looking information" within the meaning of Canadian
securities laws. These forward-looking statements represent the Company's
expectations or beliefs concerning future events, and it is possible that the
results described in this press release will not be achieved. These
forward-looking statements are subject to risks, uncertainties and other
factors, many of which are outside of the Company's control, which could cause
actual results to differ materially from the results discussed in the
forward-looking statements. Any forward-looking statement speaks only as of
the date on which it is made, and, except as required by law, the Company does
not undertake any obligation to update or revise any forward-looking
statement, whether as a result of new information, future events or otherwise.
New factors emerge from time to time, and it is not possible for the Company
to predict all such factors. When considering these forward-looking
statements, you should keep in mind the risk factors and other cautionary
statements in the prospectus filed with the SEC and applicable Canadian
securities regulatory authorities in connection with the Company's initial
public offering. The risk factors and other factors noted in the prospectus
could cause actual events or the Company's actual results to differ materially
from those contained in any forward-looking statement.

Pattern Energy Group Inc.
Consolidated Balance Sheets
(in thousands of U.S. dollars, except share data)

                                                    December 31,
                                                    2013         2012
Assets                                                           
Current assets:                                                  
Cash and cash equivalents                            $103,569   $17,574
Trade receivables                                    20,951      13,715
Related party receivable                             167         --
Reimbursable interconnection costs                  1,455       51,307
Derivative assets, current                           13,937      17,177
Current deferred tax assets                          573         --
Prepaid expenses and other current assets           13,927      13,794
Total current assets                                 154,579     113,567
                                                                
Restricted cash                                      32,636      13,904
Turbine advances                                     --         44,150
Deferred development costs                           --         26,544
Construction in progress                            --         6,081
Property, plant and equipment, net of accumulated
depreciation of $179,778 and $100,247 in 2013 and    1,476,142   1,668,302
2012, respectively
Unconsolidated investments                          107,055     36,218
Derivative assets                                    82,167      62,895
Deferred financing costs, net of accumulated
amortization of $16,225 and $9,311 in 2013 and 2012, 35,792      42,654
respectively
Net deferred tax assets                              2,017       4,940
Other assets                                        13,243      16,475
Total assets                                         $1,903,631 $2,035,730
                                                                
Liabilities and equity                                           
Current liabilities:                                             
Accounts payable and other accrued liabilities       $15,550    $7,750
Accrued construction costs                           3,204       67,206
Related party payable                                1,245       198
Accrued interest                                     495         559
Dividend payable                                     11,103      --
Contingent liabilities                               --         8,001
Derivative liabilities, current                      16,171      13,462
Current portion of long-term debt                    48,851      137,258
Total current liabilities                            96,619      234,434
                                                                
Long-term debt                                       1,200,367   1,153,312
Derivative liabilities                               7,439       35,326
Asset retirement obligations                        20,834      19,056
Net deferred tax liabilities                         9,930       3,662
Other long-term liabilities                          438         528
Total liabilities                                   1,335,627   1,446,318
                                                                
Equity:                                                          
Class A common stock, $0.01 par value per share:
500,000,000 shares authorized; 35,530,786 and 100    355         --
shares issued and outstanding as of December 31,
2013 and 2012, respectively
Class B common stock, $0.01 par value per share:
20,000,000 shares authorized; 15,555,000 shares      156         --
issued and outstanding at December 31, 2013
Additional paid-in capital                           489,388     1
Capital                                              --          545,471
Accumulated (loss) income                            (13,336)    2,903
Accumulated other comprehensive loss                 (8,353)     (34,264)
Total equity before noncontrolling interest          468,210     514,111
Noncontrolling interest                              99,794      75,301
Total equity                                        568,004     589,412
Total liabilities and equity                         $1,903,631 $2,035,730
                                                                

Pattern Energy Group Inc.
Consolidated Statements of Operations
(in thousands of U.S. dollars, except per share data)

                       Three months ended December Year ended December 31,
                        31,
                       2013           2012          2013         2012
                                                              
Revenue:                                                       
Electricity sales       $42,737      $29,675     $173,270   $101,835
Energy derivative       3,925         4,677        16,798      19,644
settlements
Unrealized loss on      (6,050)       (7)          (11,272)    (6,951)
energy derivative
Related party revenue   446           --          911         --
Other revenue           709           --          21,866      --
Total revenue           41,767        34,345       201,573     114,528
                                                              
Cost of revenue:                                               
Project expense        15,616        9,782        57,677      34,843
Depreciation and        21,422        14,476       83,180      49,027
accretion
Total cost of revenue   37,038        24,258       140,857     83,870
                                                              
Gross profit            4,729         10,087       60,716      30,658
                                                              
Operating expenses:                                            
Development expense     --           174          --         174
General and             4,256         271          4,819       858
administrative
Related party general   (799)         3,017        8,169       10,604
and administrative
Total operating         3,457         3,462        12,988      11,636
expenses
                                                              
Operating income        1,272         6,625        47,728      19,022
                                                              
Other income (expense):                                        
Interest expense        (15,445)      (11,307)     (63,614)    (36,502)
Equity in earnings
(losses) in             2,658         (53)         7,846       (40)
unconsolidated
investments
Interest rate           (1,040)       --          (2,099)     --
derivative settlements
Unrealized gain (loss)  4,692         (4,921)      15,601      (4,953)
on derivatives
Net (loss) gain on      (1,205)       --          5,995       4,173
transactions
Related party income    665           --          665         --
Other income, net       373           350          2,496       1,320
Total other expense     (9,302)       (15,931)     (33,110)    (36,002)
                                                              
Net (loss) income       (8,030)       (9,306)      14,618      (16,980)
before income tax
Tax provision           11,346        (4,851)      4,546       (3,604)
(benefit)
Net (loss) income       (19,376)      (4,455)      10,072      (13,376)
Net loss attributable
to noncontrolling       (6,197)       (1,146)      (6,887)     (7,089)
interest
Net (loss) income
attributable to         $(13,179)    $(3,309)    $16,959    $(6,287)
controlling interest
                                                              
Earnings per share                                             
information:
Less: Net income
attributable to
controlling interest    (157)                      (30,295)    
prior to the IPO on
October 2, 2013
Net loss attributable
to controlling interest $(13,336)                 $(13,336)  
subsequent to the IPO
                                                              
Weighted average number                                        
of shares:
Basic and diluted -     35,448,056                 35,448,056  
Class A common stock
Basic and diluted -     15,555,000                 15,555,000  
Class B common stock
                                                              
Earnings per share for
period subsequent to                                           
the IPO
Class A common stock:                                          
Basic and diluted loss  $(0.17)                   $(0.17)    
per share
Class B common stock:                                          
Basic and diluted loss  $(0.48)                   $(0.48)    
per share
                                                              
                                                              
2012 pro forma                                                 
information:
Unaudited pro forma net                                        
loss after tax:
Net loss before income                                         $(16,980)
tax
Pro forma tax provision                                        818
Pro forma net loss                                             $(17,798)
                                                              

Pattern Energy Group Inc.
Consolidated Statements of Cash Flows
(in thousands of U.S. dollars)

                             Three months ended    Year ended December 31,
                              December 31,
                             2013        2012       2013         2012
Operating activities                                           
Net (loss) income             $(19,376) $(4,455) $10,072    $(13,376)
Adjustments to reconcile net
(loss) income to net cash                                      
provided by operating
activities:
Depreciation and accretion    21,422     14,476    83,180      49,027
Amortization of financing     1,388      1,278     6,816       2,546
costs
Unrealized loss (gain) on     1,358      4,928     (4,329)     11,904
derivatives
Stock-based compensation      511        --        511         --
Net loss (gain) on            1,205      --        (5,995)     (4,173)
transactions
Deferred taxes                11,347     (4,851)   4,546       (3,604)
Equity in (earnings) loss in  (2,658)    53        (7,846)     40
unconsolidated investments
Changes in operating assets                                    
and liabilities:
Trade receivables             (786)      (3,014)   (8,721)     (298)
Reimbursable interconnection  (11)       --        (11)        --
receivable
Prepaid expenses and other    695        (2,464)   (2,698)     (5,842)
current assets
Other assets (non current)    (208)      (114)     (566)       (428)
Accounts payable and other    (1,826)    552       3,036       (379)
accrued liabilities
Related party                 481        (782)     190         (100)
receivable/payable
Accrued interest payable      (890)      (1,063)   (33)        (78)
Contingent liabilities        --         --        --          (188)
Long-term liabilities         (2,896)    --        --          --
Net cash provided by          9,756      4,544     78,152      35,051
operating activities
                                                              
Investing activities                                           
Receipt of ITC Cash Grant     --         79,910    173,446     79,910
Payment for acquisition from  (30,070)   --        (30,070)    --
Pattern Development
Proceeds from sale of         --         --        14,254      4,173
investments and tax credits
Decrease in restricted cash - 2,785      27,990    66,517      28,431
interconnect and PPA security
Increase in restricted cash - (2)        (35,732)  (80,569)    (36,576)
interconnect and PPA security
Capital expenditures          (2,552)    (281,346) (123,517)   (641,422)
Deferred development costs    --         (1,691)   (528)       (7,093)
Distribution from             --         --        10,463      --
unconsolidated investments
Contribution to               (941)      (1,433)   (9,678)     (22,387)
unconsolidated investments
Reimbursable interconnection  --         (5,663)   49,715      (47,055)
receivable
Other assets (non current)    618        1,231     2,358       3,066
Net cash (used in) provided   (30,162)   (216,734) 72,391      (638,953)
by investing activities
                                                              

Pattern Energy Group Inc.
Consolidated Statements of Cash Flows
(in thousands of U.S. dollars)

                       Three months ended December Year ended December 31,
                        31,
                       2013           2012          2013         2012
Financing activities                                           
Proceeds from IPO, net  $317,926     $--         $317,926   $--
of expenses
Repurchase of shares
for employee tax        (24)          --           (24)        --
withholding
Capital distributions -
Contribution            (232,640)     --           (232,640)   --
Transactions
Payment for acquisition
from Pattern            (49,430)      --           (49,430)    --
Development
Capital contributions - --            46,732       32,679      281,519
controlling interest
Capital distributions - --            (88,457)     (98,886)    (114,236)
controlling interest
Capital distributions - (866)         (244)        (2,292)     (1,298)
noncontrolling interest
Decrease in restricted
cash - debt service     6,035         17,896       122,689     26,669
reserves
Increase in restricted
cash - debt service     (894)         (641)        (127,369)   (15,850)
reserves
Payment for deferred    --            (19,944)     (294)       (19,989)
financing costs
Proceeds from revolving --            --           56,000      --
credit facility
Proceeds from long-term --            302,368      138,620     497,226
debt
Repayment of revolving  (56,000)      --           (56,000)    --
credit facility
Repayment of long-term  (9,041)       (6,356)      (50,324)    (27,546)
debt
Repayment of
construction and grant  --            (53,328)     (114,056)   (53,328)
loans
Net cash (used in)
provided by financing   (24,934)      198,026      (63,401)    573,167
activities
                                                              
Effect of exchange rate
changes on cash and     (181)         (111)        (1,147)     637
cash equivalents
Net change in cash and  (45,521)      (14,275)     85,995      (30,098)
cash equivalents
Cash and cash
equivalents at          149,090       31,849       17,574      47,672
beginning of period
Cash and cash
equivalents at end of   $103,569     $17,574     $103,569   $17,574
period
                                                              
Supplemental disclosure                                        
Cash payments for
interest and commitment $12,327      $14,123     $57,505    $43,474
fees
Schedule of non-cash                                           
activities
Change in fair value of 13,978        (957)        52,244      (11,173)
interest rate swaps
Change in fair value of --           (1,701)      --         (2,015)
contingent liabilities
Amortization of
deferred financing
costs - included as     --           1,395        175         3,824
construction in
progress
Capitalized interest    941           3,024        4,171       9,386
Capitalized commitment  --           317          39          873
fee
Change in property,     (32,440)      (11,218)     (192,461)   30,154
plant and equipment
Transfer of capitalized
assets to South Kent    --           --           49,275      --
joint venture
Non-cash distribution   --           --           (5,748)     --
to Pattern Development
Assumption of
liabilities related to  (4,207)       --           (4,207)     --
Contribution
Transactions
Accrued IPO stock       (884)         --           (884)       --
issuance costs

CONTACT: Ross Marshall
         Investor Relations
         T: (416) 815-0700 ext. 238
         E: rmarshall@tmxequicom.com
        
         Matt Dallas
         Media Relations
         T: (917) 363-1333
         E: matt.dallas@patternenergy.com

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