Crius Energy Signals Cost Reductions Will Exceed Targets

Plans in place to achieve over $25 million in annual G&A Cost-Synergies by the end of 2018

/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/

TORONTO, Sept. 17, 2018 /CNW/ - Today, Crius Energy Trust ("Crius Energy", the "Company" or the "Trust") (TSX:KWH.UN) announces that it is poised to exceed the high-end of its cost reduction guidance, with a run-rate in excess of $25 million in annualized cost reductions by the end of 2018. All figures are in U.S. dollars unless otherwise noted.

"We continue to identify opportunities to reduce costs as we execute on our strategic decision to focus on our deregulated energy business," said Michael Fallquist, Chief Executive Officer of Crius Energy. "We are on-track to deliver approximately $35 million of improved run-rate profitability entering 2019 as a result of increasing our annual run-rate cost savings to more than $25 million, and eliminating the losses from our solar business.  Our profitability going forward will be further enhanced by our focus on high-margin customer growth and our portfolio optimization initiatives."

Crius Energy previously announced in May that it was targeting incremental cost reductions to bring its total annualized general and administrative cost savings target from $10 million to $20-25 million. In addition, the company reported in August that it had already achieved cost-reductions of approximately $20 million and was on target to achieve annual savings of approximately $22 million by year-end. Through additional cost-reduction initiatives those projections have been enhanced and the Company now has plans to exceed the top end of the range before the end of 2018.

The table below provides details on the expected achievement by Crius Energy of $25 million in annualized run-rate cost reductions by the end of 2018:

Quarter ending	Cost-synergies^(1)		Cost to achieve^(2)		Description
	($m)	(Cumm. $m)	($m)	(Cumm. $m)
September 2017	$0.9	$0.9	$0.0	$0.9	USG&E integration synergies (treasury, accounts payable, legal and operations functions)
December 2017	$1.5	$2.4	$0.1	$0.1	USG&E integration synergies (accounting, operations and mass markets functions)
March 2018	$2.3	$4.7	$0.1	$0.2	USG&E integration synergies (IT, accounting and energy supply functions), audit fee synergies, billing system consolidation, human resources system consolidation
June 2018	$6.1	$10.8	$0.4	$0.6	Executive restructuring, billing systems consolidation, USG&E integration synergies (IT)
September 2018	$11.2	$22.0	$1.4	$2.0	Workforce restructuring to reflect focus on residential and small commercial sales
December 2018	$3.1	$25.1	$4.6	$6.6	Billing system consolidation, corporate policy changes, bank fees and professional fees synergies
	$25.1		$6.6

Notes:
(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.

About Crius Energy

With approximately 1.4 million residential customer equivalents, Crius Energy provides competitive electricity and natural gas products to residential and commercial customers in 19 states and the District of Columbia in the United States. The Company sells energy products through a family of brands strategy utilizing a multi-channel sales approach including exclusive partnerships, direct-to-consumer channels, and broker marketing channels. Crius Energy offers consumers a broad suite of energy products and services including fixed and variable contracts, renewable energy, and bundled products to support their energy needs beyond what is offered by their local utility.

The Trust intends to continue to qualify as a "mutual fund trust" under the Income Tax Act (Canada) (the "Tax Act"). The Trust will not be a "SIFT trust" (as defined in the Tax Act), provided that the Trust complies at all times with its investment restriction which precludes the Trust from holding any "non-portfolio property" (as defined in the Tax Act). Material information pertaining to Crius may be found on SEDAR under the Trust's issuer profile at www.sedar.com or on the Trust's website at www.criusenergytrust.ca.

Caution Regarding Forward-Looking Statements

This news release contains forward-looking statements and forward-looking information (collectively, "forward- looking statements") including, without limitation, statements relating to annual run-rate cost reductions; the achievement of cost reductions in 2018 (if at all); the Company's continued ability to exceed cost reduction targets; restructuring, consolidating systems and cost-synergy targets; enhancing unitholder value; target annualized general and administrative cost savings targets; the Company's dedication to the performance of the business; non-IFRS financial measures; the continued strength of the Company's deregulated energy business; cost-reduction initiatives; the risk management capabilities of the Trust; the Trust's outlook, strategy, and ability to execute its business objectives; critical accounting estimates; internal controls over financial reporting; results of operations; financial position or cash flows; expenses and distributions to Unitholders. Often, but not always, forward- looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. All forward-looking statements reflect the Trust's beliefs and assumptions based on information available at the time the statements were made. Actual results or events may differ from those predicted in these forward-looking statements. All of the Trust's forward-looking statements are qualified by: (i) the assumptions that are stated or inherent in such forward-looking statements; and (ii) the risks described in the section entitled "Financial Instruments and Risk Management" in the MD&A for the second quarter of 2018, dated August 13, 2018, and the risks described in the sections entitled "Risk Factors" and "Forward-Looking Statements" in the annual information form of the Trust for the fiscal year ended December 31, 2017, dated March 8, 2018, which are available on SEDAR under the Trust's issuer profile at  www.sedar.com and on the Trust's website at www.criusenergy.ca. Forward-looking statements involve known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking statements. Although the Trust has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward- looking statements. The Trust disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise, except in accordance with applicable securities laws.

SOURCE Crius Energy Trust

Michael Fallquist, Chief Executive Officer, [email protected], [phone]; Roop Bhullar, Chief Financial Officer, [email protected], [phone]; Kelly Castledine, Investor Relations, [email protected], [phone]