Capital Power Corporation · TSX:CPX
Capital Power — Q3 2017 Earnings Presentation
16 slides from Capital Power's earnings presentation, Oct 25, 2017
Slide 1: Q3/17 Analyst Conference Call
CAPITAL POWER Q3/17 Analyst Conference Call October 25, 2017 Brian Vaasjo, President & CEO Bryan DeNeve, SVP Finance & CFO 1
Slide 2: Forward-looking information
Forward-looking information Cautionary statement Certain information in this presentation and in responses to questions contains forward-looking information. Actual results could differ materially from conclusions, forecasts or projections in the forward-looking information, and certain material fac
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 from its joint venture interests, and gains or losses on disposals (adjusted EBITDA), (ii) adjusted
Slide 4: Q3/17 Highlights
Q3/17 Highlights Second wind development project in the U.S. underway New Frontier Wind is a 99 MW wind project in North Dakota In Aug/17, executed a 12-year fixed price contract with Morgan Stanley covering 87% of the facility’s output Revenue swap contract involving a fixed volume of generat
Slide 5: Q3/17 Operating performance
Q3/17 Operating performance Q3/17 Q3/16 Facility availability Q3/17 Q3/16 YTD YTD AB commercial facilities 95% 95% 96% 93% AB contracted facilities 96% 100% 93% 94% ON & BC contracted facilities 98% 93% 98% 97% U.S. contracted facilities 99% 97% 98% 94% Average availability 97% 96% 96% 94% Overall
Slide 6: Q3/17 Financial review
Q3/17 Financial review Q3/17 financial results were in line with management’s expectations • Generated $134M of AFFO • Normalized EPS of $0.28 versus $0.31 in Q3/16 Trading desk captured a 96% higher realized average power price versus spot price in Q3/17 Portfolio optimization Q3/17 Q3/16 AB sp
Slide 7: Financial performance – Q3/17
Financial performance – Q3/17 $M, except per share amounts Q3/17 Q3/16 Change Revenues and other income $346 $374 (7%) Adjusted EBITDA (before mark-to-market)(1) $161 $120 34% Basic earnings (loss) per share $(0.13) $0.63 (121%) Normalized earnings per share $0.28 $0.31 (10%) Adjusted funds from ope
Slide 8: Financial performance – Q3/17 YTD
Financial performance – Q3/17 YTD Q3/17 Q3/16 $M, except per share amounts Change YTD YTD Revenues and other income $885 $934 (5%) Adjusted EBITDA (before mark-to-market)(1) $420 $371 13% Basic earnings per share $1.30 $0.71 83% Normalized earnings per share $0.88 $0.95 (7%) Adjusted funds from oper
Slide 9: Impairment losses
Impairment losses Annual impairment testing done, generally in Q3, on cash generating units that contain goodwill to determine if any impairments should be recognized Southport & Roxboro PP&E was also tested for impairment due to the uncertainty of potential capital investments required to meet
Slide 10: Financial outlook
Financial outlook Alberta Commercial baseload positions: 2018 2019 2020 As of date Sep 30/17 % sold forward(1) 86% 45% 25% Contracted prices(2) High-$40 Low-$50 Low-$50 ($/MWh) Avg. forward prices $44 $46 $45 ($/MWh) Baseload hedges in 2018 increased from 66% in Q2/17 to 86% at an average contra
Slide 11: Financing growth in 2017
Financing growth in 2017 Raised ~$1.0B in gross proceeds from recent financings in 2017 to fund growth ~$1 billion raised in capital $244M from tax-equity investor for Bloom Wind (Jun) Common Tax-equity Shares $183M common share issuance used to debt $183M partially finance the Decatur Energy
Slide 12: Q3/17 YTD performance vs. annual targets
Q3/17 YTD performance vs. annual targets Facility availability Sustaining capex ($M) $80 96% $75 95% $46 Q3/17 Original Revised Q3/17 YTD Target YTD Target Target Facility O&M expenses ($M) AFFO ($M) $215 to $240 $195 to $215 $340 to $385 $305 to $345 $161 $272 Q3/17 Original Revised Q3/17 Original
Slide 13: Disciplined growth targets
Disciplined growth targets Bloom Wind and new developments 2017 Targets Q3/17 Status Complete Bloom Wind on time √ Project completed ahead of and on budget for COD in Q3/17 schedule with construction costs below budget Execute contracts for the output New Frontier Wind – secured a of two new d
Slide 14: Questions?
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Slide 15: Forward-looking information
Forward-looking information Forward-looking information or statements included in this presentation and in responses to questions are provided to inform the Company’s shareholders and potential investors about management’s assessment of Capital Power’s future plans and operations. This information m
Slide 16: Investor Relations Contact
Investor Relations Contact Randy Mah 10423 101 Street NW Senior Manager 10th Floor (780) 392-5305 Edmonton, Alberta rmah@capitalpower.com Canada, T5H 0E9 www.capitalpower.com