Capital Power Corporation · TSX:CPX
Capital Power — Q3 2019 Earnings Presentation
14 slides from Capital Power's earnings presentation, Oct 28, 2019
Slide 1: Q3 2019 Analyst Conference Call
Q3 2019 Analyst Conference Call Brian Vaasjo, President & CEO Bryan DeNeve, SVP Finance & CFO October 28, 2019 1
Slide 2: Forward-looking information
Forward-looking information Cautionary statement Certain information in this presentation and responses to questions contains forward-looking information. Actual results could differ materially from conclusions, forecasts or projections in the forward-looking information as a result of certain mater
Slide 3: Non-GAAP financial measures
Non-GAAP financial measures The Company uses (i) earnings before net finance expense, income tax expense, depreciation and amortization, impairments, foreign exchange gains or losses, finance expense and depreciation expense from its joint venture interests, gains or losses on disposals and unrealiz
Slide 4: Q3/19 highlights
Q3/19 highlights Assumed full control of Genesee Generating Station • Entered into an agreement to acquire remaining 50% interest in Genesee 3 from TransAlta Corporation in exchange for the divestiture of our 50% share in Keephills 3 and $10M cash • Transaction closed on Oct 1/19 • Strategic freed
Slide 5: Positive outlook for Alberta power prices
Positive outlook for Alberta power prices $/MWh Positive outlook with 2019-2021 80 Q3/19 average power YTD average power forward prices averaging $57/MWh price down 15% YoY price up 18% 70 60 $58 $55 $49 50 $47 40 30 20 10 0 (1) (1) (1) (1) Q3/18 Q3/19 Q3/18 YTD Q3/19 YTD 2018 2019 Fwds 2020 Fwds 20
Slide 6: Financial highlights
Financial highlights Results in line with our expectations, generated $225M in AFFO – a record quarter Trading desk captured a 26% higher realized average power price versus spot price Portfolio optimization Q3/19 Q3/18 Average AB spot price $47/MWh $55/MWh Average realized price $59/MWh $54/MWh
Slide 7: Financial performance – Q3/19
Financial performance – Q3/19 $M, except per share amounts Q3/19 Q3/18 Change Revenues and other income $517 $395 31% Adjusted EBITDA $284 $179 59% Basic (loss) earnings per share $(2.25) $0.08 -2913% Replace Image Normalized EPS $0.60 $0.33 82% Net cash flows from operating activities $209 $65 222%
Slide 8: Financial performance – Q3/19 YTD
Financial performance – Q3/19 YTD Q3/19 Q3/18 $M, except per share amounts Change YTD YTD Revenues and other income $1,280 $1,077 19% Adjusted EBITDA $677 $565 20% Basic (loss) earnings per share $(0.90) $0.93 -197% Normalized EPS $1.05 $0.81 30% Net cash flows from operating activities $519 $317 64
Slide 9: Portfolio optimization
Portfolio optimization Alberta commercial portfolio positions 2020 2021 2022 % sold forward(1) 53% 2% 10% Contracted prices(1) ($/MWh) Mid-$50 High-$60 Low-$50 Current average forward prices(2) $57 $58 $54 ($/MWh) Alberta baseload merchant position now more than half hedged in 2020 • From 41% in Q
Slide 10: 9-month performance versus 2019 annual targets
9-month performance versus 2019 annual targets 2019 AFFO expected to be at the top end of the range Facility availability Sustaining capex Adjusted EBITDA AFFO $485 to $535M $80 to $90M $870 to $920M $427 95% 95% $677 $58 Q3/19 YTD Revised Q3/19 YTD Revised Q3/19 YTD Revised Q3/19 YTD Revised Target
Slide 11: 2019 development & construction targets
2019 development & construction targets Construction Whitla Wind Cardinal Point Wind (Alberta) (Illinois) • 201.6 MW (Phase 1) • 150 MW • 20-year PPA • 12-year PPA • $315 - $325M(1) • $289 - $301M • COD in Q4/19 • COD in Mar/20 Other contracted growth Exceeded $500M of committed capital target wit
Slide 12: Questions?
Capital¢S apital RESPONSIBLE ENERGY FOR TOMORROW Questions?
Slide 13: Forward-looking information
Forward-looking information Forward-looking information or statements included in this presentation are provided to These statements are based on certain assumptions and analyses made by the Company in light of its inform the Company’s shareholders and potential investors about management’s experien
Slide 14: Investor Relations
Investor Relations Randy Mah Director, Investor Relations (780) 392-5305 rmah@capitalpower.com 10423 101 Street NW 11th Floor Edmonton, Alberta Canada T5H 0E9 14