Business
Capital Power Announces Strategic Acquisition of Two Flexible Generation Assets in PJM and a $500 Million Offering of Common Shares
US$2.2 billion (~CAD$3.0 1 billion) acquisition expected to be immediately accretive ...
About this update from Capital Power Corporation
[{"type":"text","content":"Capital Power Announces Strategic Acquisition of Two Flexible Generation Assets in PJM and a $500 Million Offering of Common Shares\n\n\n\n\n\n US$2.2 billion (~CAD$3.0\n \n 1\n \n\n\n\n\n billion) acquisition expected to be immediately accretive to adjusted funds from operations per share\n \n\n\n\n\n BASE SHELF PROSPECTUS IS ACCESSIBLE, AND PROSPECTUS SUPPLEMENT WILL BE ACCESSIBLE WITHIN TWO BUSINESS DAYS, ON SEDAR+\n \n\n\n\n NOT FOR DISTRIBUTION TO THE U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES\n \n\n\n\n Acquisition Highlights:\n \n\n\n\n\n Strategic entry into PJM\n \n 2\n \n :\n \n establishes a foothold in the largest and most liquid North American power market with strong fundamentals for natural gas power generation, enhancing strategic positioning for Capital Power.\n \n\n\n Positions Capital Power as one of five North American independent power producers (“IPPs”) with over 10 GW of natural gas capacity:\n \n adds 2.2 GW of natural gas capacity to the Company’s Flexible Generation\n \n 3\n \n portfolio, strengthening Capital Power’s position as the 5\n \n th\n \n largest non-regulated operator of flexible and reliable natural gas assets in North America.\n \n 4\n \n\n\n\n Continues North American expansion and diversification strategy:\n \n increases diversification in Capital Power’s portfolio, no single market will represent more than 30% of net capacity.\n \n\n\n Strategically positioned, high quality assets:\n \n Hummel Station is one of the largest, newest, and most efficient combined-cycle natural gas assets in PJM MAAC\n \n 5\n \n (“Hummel”) and the Rolling Hills plant is a combustion turbine natural gas asset and a flexible peaker with fast ramping capability (“Rolling Hills”), both of which support the reliability of PJM’s electricity grid and position Capital Power for growth opportunities in PJM and North America more broadly.\n \n\n\n Attractive valuation:\n \n approximately 7x 5-year (2026-2030) average enterprise value (“EV”) / Adjusted EBITDA\n \n 6\n \n , a comparable valuation multiple to Adjusted EBITDA estimated for 2026, the first full year of ownership post-Acquisition.\n \n\n\n Expected to be immediately accretive in the first full year of ownership:\n \n approximately 17-19% 5-year (2026-2030) ...