Slide 1: Q3/14 Analyst Conference Call
CAPITAL POWER Q3/14 Analyst Conference Call October 27, 2014 Brian Vaasjo, President & CEO Stuart Lee, SVP Finance & CFO
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 finance expense, income tax expense, depreciation and amortization, impairments, foreign exchange gains or losses, and gains on disposals (adjusted EBITDA), (ii) funds from operations (FFO), (iii) normalized earnings attributable to co
Slide 4: Corporate updates
Corporate updates Shepard construction update Construction of the 800 MW natural gas combined cycle facility is 99% completed Commissioning is ongoing with steam blowing of main steam lines; steam blows expected to be completed before the end of Oct/14 Construction project expected to be compl
Slide 5: Q3/14 Operating performance
Q3/14 Operating performance Plant availability Q3/14 Q3/13 Alberta commercial plants Genesee 3 97% 99% Strong operating Keephills 3 100% 100% performance in our operated Clover Bar 97% 93% fleet with average plant Joffre 95% 100% availability of 97% in Q3/14; Halkirk 91% 89% unchanged from Q3/13 A
Slide 6: Alberta Commercial
Alberta Commercial Average Alberta power Q3/14 generation below expectations due to lower prices ($/MWh) availability at the Sundance 5 & 6 units from planned $84 and unplanned outages, Keephills 3 derate, and lower wind generation at Halkirk $64 Alberta power prices averaged $64/MWh in Q3/14, c
Slide 7: AB power market in Q3/14
AB power market in Q3/14 $500 Daily settled prices and plant outages Daily Settled Price Average Forward Price $400 $300 ($/MWh) $200 Legend: SD5 = Sundance 5 SD6 = Sundance 6 K3 = Keephills 3 G3 = Genesee 3 $100 $0 1-Jul 8-Jul 15-Jul 22-Jul 29-Jul 5-Aug 12-Aug 19-Aug 26-Aug 2-Sep 9-Sep 16-Sep 23-Se
Slide 8: Financial review
Financial review Deferred tax asset write-down is a non-cash item and has no impact on operations or other key performance measures $73M write-down of deferred tax assets in Q3/14 relating to U.S. income tax loss carry forwards that can no longer be recognized for accounting purposes, based on cur
Slide 9: Financial review
Financial review Portfolio optimization Q3/14 Q3/13 Change Spot power price average (MW/h) $64 $84 (24%) Realized power price(1) (MW/h) $56 $94 (40%) Weak Q3/14 results from lower than expected performance in AB Commercial Plants and Acquired Sundance PPA segment, and lower average Alberta power pri
Slide 10: Financial performance – Q3/14
Financial performance – Q3/14 $M, except per share amounts Q3/14 Q3/13 Change Revenues $248 $380 (35%) Adjusted EBITDA (before mark-to-market)(1) $86 $150 (43%) Basic earnings (loss) per share $(0.62) $0.55 (213%) Normalized earnings per share $0.12 $0.72 (83%) Funds from operations $83 $125 (34%) Q
Slide 11: Financial performance – Q3/14 YTD
Financial performance – Q3/14 YTD Q3/14 Q3/13 $M, except per share amounts Change YTD YTD Revenues $796 $1,066 (25%) Adjusted EBITDA (before mark-to-market)(1) $283 $381 (26%) Basic earnings (loss) per share $(0.12) $1.19 (110%) Normalized earnings per share $0.51 $1.35 (62%) Funds from operations $
Slide 12: 2014 Financial outlook
2014 Financial outlook Revision to 2014 annual guidance AB power prices for Q4/14 expected in the high-$50/MWh range Alberta portfolio hedged positions (% sold forward) Oct-Dec, 2014 2015 2016 Percentage sold forward(1) 100% 92% 49% Average contracted prices(2) High-$50 Mid-$50 Mid-$50 ($/MWh) F
Slide 13: 2014 Corporate priorities
2014 Corporate priorities Operational and financial targets Plant availability ($M) Sustaining capex 100% $100 95% 95% $85 95% $75 90% $50 $42 85% $25 80% $0 Q3/14 YTD 2014T Q3/14 YTD 2014T Plant operating & Funds from operations ($M) ($M) maintenance expenses $200 $400 } $360 to } $165 to $400 $150
Slide 14: 2014 Corporate priorities
2014 Corporate priorities Development and construction targets 2014 Targets Status K2 Wind Commence construction Construction commenced & complete project following completion of financing $850M project financing in Q1/14 Shepard Energy Complete construction Construction nearly Centre with COD in ea
Slide 15: Questions?
QUESTIONS?
Slide 16: Forward-looking information
Forward-looking information Forward-looking information or statements included in this presentation and in responses to questions on the analyst conference call are provided to inform the Company’s shareholders and potential investors about management’s assessment of Capital Power’s future plans and
Slide 17: Investor Relations Contact
Investor Relations Contact Randy Mah Senior Manager (780) 392-5305 rmah@capitalpower.com Head Office 10th Floor 10423 – 101 Street NW Edmonton, AB T5H 0E9 www.capitalpower.com