Capital Power Corporation · TSX:CPX
Capital Power — CIBC Institutional Investor Conference 2010
18 slides from Capital Power's conference presentation, Jan 22, 2010
Slide 1: CIBC Institutional Investor Conference
CIBC Institutional Investor Conference January 22, 2010 Whistler Brian Vaasjo President & CEO
Slide 2: Cautionary statement regarding forward-looking information
Cautionary statement regarding forward-looking information Certain information in this presentation and in oral answers to questions contains forward-looking information. Actual results could differ materially from conclusions, forecasts or projections in the forward-looking information, and certain
Slide 3: Overview of Capital Power
Overview of Capital Power New company formed in July/09 from EPCOR Utilities Inc.’s spin-off of its power generation business Canadian-based independent power producer (IPP) operating in North America Corporate strategy is to generate a growing stream of cash flow supporting secure dividends a
Slide 4: Corporate strengths
Corporate strengths One of Canada’s largest IPPs with interests in 31 Large, high quality facilities totaling ~3,500 MW of owned and/or operated generation portfolio generation capacity; geographic, fuel source and counterparty diversification Modern fleet with very Q3/09 average plant availability
Slide 5: Large, high quality generation portfolio
Large, high quality generation portfolio Directly Owned 30.6% LP Interest Alberta Contracted ON/BC Contracted Capital Power Income L.P. Two Facilities Alberta Three Facilities 20 Facilities 820 MW(1) Commercial 80 MW(1) 1,668 MW(1) (820 MW)(2) (80 MW)(2) (472 MW)(2) Six Facilities(3) Two PPAs 943 MW
Slide 6: Strategic North American platform
Strategic North American platform Capital Power facilities Capital Power Income L.P. facilities 6
Slide 7: Modern fleet
Modern fleet Modern fleet with average facility age of only 12 years; three new units on line in late 2009 and 2011 Facility age Genesee 2 Genesee 1 Capital Power Income L.P. Brown Lake Taylor Coulee Joffre Average facility Weather Dancer age of 11.8 Miller Creek Years Clover Bar (Landfill) Genese
Slide 8: Strong operating history, fleet availability
Strong operating history, fleet availability Very good operating performance history with high plant availability in 94% - 95% range Total Generation (GWh) Availability (%) 95% 95% 95% 94% 100% 91% 75% 50% 25% 0% Capital Power Generation Pro Rata CPILP Generation Availability 8
Slide 9: Financial strength and access to capital
Financial strength and access to capital Strong balance sheet with investment grade credit rating of BBB (S&P / DBRS) $1.2 billion in credit facilities consolidated assets of ~$4.9 billion with only ~$1.8 billion in long-term debt non-consolidated basis ~$3.5 billion of assets with only $950
Slide 10: Predictable 2010 cash flows with future upside
Predictable 2010 cash flows with future upside 2010 forecasted operating margin AB Commercial Sold Forward AB Commercial Open Less than 5% subject AB Contracted to market price Capital Power Income L.P. changes Ontario & British Columbia Contracted Based on Capital Power Income L.P. on a 30.6% own
Slide 11: Portfolio optimization
Portfolio optimization Capital Power’s merchant production is > 90% hedged for 2010 at prices above the current forward curve Current Forward Forecast % Contracted Contract Price Prices Oct 26, Price 2009 2010 >90 % ~$65 $45 – $50 $60 - $65 2011 45 - 50 % ~$70 $50 – $55 $60 – $75 2012 15 - 20 % $7
Slide 12: Financial outlook
Financial outlook 2010 versus 2009 Sale of remaining 15% interest of Battle River PPA in January, 2010 Scheduled maintenance outages for Genesee 2 and 3 (total operating expenses of $18M to $22M) versus one scheduled outage in 2009 Lower operating margin at G3 from scheduled outage No signif
Slide 13: Outstanding platform for growth
Outstanding platform for growth Pursue selected target markets Numerous development opportunities at various stages Development Near term opportunities for contracted cash flows MW additions: 200 MW in 2009 and 248 MW in Q2/11 Very disciplined and patient approach Acquisitions Focus on l
Slide 14: 2010 corporate priorities
2010 corporate priorities Operational targets Plant availability of ≥ 94% Sustaining capex of $60M Construction / development objectives CPC’s share of final costs for Keephills 3 project at ≤ $955M with completion by Q2/11 Commit at least $500M to capital opportunities that meet or exce
Slide 15: Investment thesis
Investment thesis Growth in North American power industry will continue over the long term Positive long-term fundamentals for the Alberta power market Capital Power most highly levered to Alberta power prices prices in Alberta are expected to be amongst the first to recover in North America
Slide 16: Forward-looking statement
Forward-looking statement Certain information in this presentation and in oral answers to questions is forward-looking within the meaning of Canadian securities laws as it relates to anticipated financial performance, events or strategies. When used in this context, words such as will, anticipate, b
Slide 17: Forward-looking statement (cont'd)
Forward-looking statement (cont’d) (iii) the Company's financial position and credit facilities; (iv) the Company's assessment of commodity and power markets; (v) the Company's assessment of the markets and regulatory environments in which it operates; (vi) weather; (vii) availability and cost of la
Slide 18: Additional information
Additional information Investor Relations 5th Floor, TD Tower 10088 - 102 Ave. Edmonton, Alberta T5J 2Z1 (780) 392-5305 (866) 896-4636 (toll-free) investor@capitalpower.com www.capitalpower.com 18
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