Capital Power Corporation · TSX:CPX
Capital Power — Q1 2013 Earnings Presentation
15 slides from Capital Power's earnings presentation, Apr 29, 2013
Slide 1: Analyst Conference Call Q1 2013 Review
CAPITAL POWER ANALYST CONFERENCE CALL Q1 2013 REVIEW Brian Vaasjo, President & CEO Stuart Lee, SVP & CFO April 29, 2013
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 losses, and gains on disposals (adjusted EBITDA), (ii) funds from operations, (iii) cash flow per share, (iv) discretionary cash flow, (v
Slide 4: Corporate updates
Corporate updates Purchased interest in Shepard Energy Centre On Feb 28/13, completed the $237M payment for the first tranche (25% interest) in Shepard • Capital Power and ENMAX now jointly control the Shepard project Second tranche expected to close in Q1/14 for remaining 25% interest Site sele
Slide 5: Q1/13 Operating performance
Q1/13 Operating performance Plant Availability Q1/13 Q1/12 Solid operating Alberta Genesee 3 98% 84% performance commercial plants Keephills 3 98% 95% Average plant availability Clover Bar Energy Centre 99% 98% of 94% Joffre 92% 94% Achieved 92%+ availability Halkirk 98% N/A on all plants, exclu
Slide 6: Halkirk wind
Halkirk wind Alberta’s best performing wind facility in Q1/13 Halkirk made ~25% more revenue than the average of all AB wind units(1) 42% 41% 73% $48 56% $37 Capacity factor Realized Price Price capture factor Halkirk South wind (1) Based on average hourly revenue per installed megawatt. 6
Slide 7: Financial performance – Q1/13
Financial performance – Q1/13 $M, except per share amounts Q1/13 Q1/12 % Change Revenues and other income(1) $354 $362 (2.2%) Adjusted EBITDA(1) $122 $139 (12%) Basic earnings per share $0.44 $0.66 (33%) Normalized earnings per share $0.36 $0.46 (22%) Funds from operations $103 $116 (11%) Cash flow
Slide 8: AB commercial portfolio positions
AB commercial portfolio positions Alberta portfolio hedged positions for AB baseload plants and acquired Sundance PPA (% sold forward) Apr–Dec, 2013 2014 2015 Hedged positions (% hedged) 52% 73% 48% Average hedged prices(1) ($/MWh) Mid-$60 High-$50 Mid-$50 (1) The forecast average contracted price
Slide 9: Financial outlook
Financial outlook No change to outlook 2013 financial targets based on an average AB power price of ~$58/MWh Two major scheduled outages (Genesee 1, Keephills 3) in Q2/13 Useful lives of our coal plants increased to 50 years from 45, in accordance with revised Federal Government coal regulatio
Slide 10: Corporate priorities
Corporate priorities Operational targets Performance measure 2013 Target Q1/13 Results Plant availability average ≥ 93% 94% Sustaining capex ≤ $105M $17M Maintenance and operating $225M - $245M $45M expenses 10
Slide 11: Corporate priorities (cont'd)
Corporate priorities (cont’d) Development and construction targets Performance measure 2013 Target Status Port Dover & Continue on Received Nanticoke Wind budget $340M, full notice Q4/13 target to proceed COD in Apr/13 K2 Ontario Environmental On track Wind approvals received in 2013 Shepard Energy
Slide 12: Corporate priorities (cont'd)
Corporate priorities (cont’d) Financial targets Normalized EPS Funds from operations $1.50 $500 $1.20 – $1.40 $400 $385 – $415M $1.00 $300 $0.50 $200 $0.36 $103 $100 $0.00 $0 Q1/13 2013T Q1/13 2012T Cash flow per share $5.00 $4.00 $3.80 – $4.20 $3.00 $2.00 $1.04 $1.00 $0.00 Q1/13 2013T 2013 financia
Slide 13: Questions?
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Slide 14: Forward-looking information
Forward-looking information Forward-looking information or statements included in this presentation 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 may not be appropriate for othe
Slide 15: Investor Relations Contacts
Investor Relations Contacts Randy Mah Chris Williams Senior Manager Senior Analyst (780) 392-5305 (780) 392-5105 rmah@capitalpower.com cwilliams@capitalpower.com 15