Capital Power Corporation · TSX:CPX
Capital Power — Q1 2024 Earnings Presentation
19 slides from Capital Power's earnings presentation, May 1, 2024
Slide 1: Executing Our Strategic Focus
Executing Our Strategic Focus 2024 Q1 | Analyst presentation 1
Slide 2: Agenda
Agenda 1. Business Update | Avik Dey - President & CEO 2. Financial Review | Sandra Haskins - SVP, Finance & CFO 3. Closing Remarks | Avik Dey - President & CEO 4. Q&A | Management Avik Dey Sandra Haskins President & CEO SVP, Finance & CFO 2
Slide 3: Forward-looking information and Non-GAAP financial measures
Forward-looking Non-GAAP financial information measures and ratios Cautionary statement Certain information in this presentation and responses to questions contain forward-looking The Company uses (i) earnings before net finance expense, income tax expense, information. Actual results could differ m
Slide 4: Territorial Acknowledgement
Territorial Acknowledgement In the spirit of reconciliation, Capital Power respectfully acknowledges that we operate within the ancestral homelands, traditional and treaty territories of the Indigenous Peoples of Turtle Island, or North America. Capital Power’s head office is located within the trad
Slide 5: Q1 2024 Highlights
Q1 2024 Highlights Executing on our strategic focus Deliver ~9 • ~9 TWh across our strategically positioned fleet • Two significant diversifying acquisitions (C$1.5B) • Executing 7 turnarounds for 2024 ($34M Q1 capital) TWh Generated Build • Genesee Repowering; we are commissioning simple cycle on U
Slide 6: Genesee Repower – Project Update
Genesee Repower – Project Update Increased Capacity & Significantly Lower Carbon Intensity 3 Project Update Repowering 2 Completion 1 H2 2025 1 • Dual fuel units will run in parallel until simple cycle Combined Cycle Units 1 & 2 commissioning complete (bringing units off coal) Simple Cycle Completio
Slide 7: Genesee Repower: Putting Things in Perspective
Genesee Repower Putting Things in Perspective Perspective Commentary Alberta Merit Curve Comparison • Advances Capital Power’s CPX areas of focus: providing reliable, affordable and clean power • Leads the reset of the regional Industry merit curve; allows for greater renewables capacity to come onl
Slide 8: La Paloma & Harquahala Acquisitions
La Paloma & Harquahala Acquisitions Long-term outlook remains strong and supports re-contracting • Closing La Paloma and Harquahala on February 9 and 16th, 2024, respectively • Newly acquired assets driving portfolio diversification (pro-forma capacity 50 / 50% in Canada and US) Adjusted EBITDA1 by
Slide 9: Major Projects Update
Major Projects Update CCS Capital Power is discontinuing pursuit of the $2.4B Genesee CCS project The technology was affirmed as viable Ontario Projects Reduced expected total project cost to $600M (Q4 2023: $655M) No change in timing Other Projects Halkirk 2 Wind – on schedule Maple Lea
Slide 10: Alberta Regulatory Update
Alberta Regulatory Update Interim rules pursuant to MSA: Market power mitigation Supply Cushion Effective July 1, 2024 and in-force until November 2027 Restructured Energy Market proposed by AESO: Intended to be in place post-expiry of interim rules Detailed consultation underway 10
Slide 11: Q1 2024 Results - Overview
Q1 2024 Results - Overview Cash flows impacted by outages and lower prices in Alberta • Adjusted EBITDA is lower year over year due to the decrease in $916M $279M AB power prices, lower generation, final year of coal compensation amortization in 2023 and one-time fees related to the US acquisitions
Slide 12: Q1 2024 Results – Adjusted EBITDA Breakdown
Q1 2024 Results – Adjusted EBITDA Breakdown US Diversification Reduces Adjusted EBITDA Volatility $235 Adjusted EBITDA1 $135 $112 ($M) (43%) $90 $88 $76 (2%) +47% Alberta U.S. Ontario & Western Canada Q1 2023 Q1 2024 1. Adjusted EBITDA is a non-GAAP financial measure. 12
Slide 13: Q1 2024 Results – Alberta Commercial Breakdown
Q1 2024 Results – Alberta Commercial Breakdown Alberta Commercial Impacted by Outages, Pricing, and Repowering Delay Adjusted EBITDA1 250 $235 ($50) 200 ($14) ($17) ($19) 150 $135 ($M) 100 50 0 Q1/23 Q1/24 Guidance Lower Captured Unit 1 Repower Other Outage Q1/24 Actual Reduction Margin Delay Costs
Slide 14: Alberta Commercial Portfolio
Alberta Commercial Portfolio Reducing volatility and risk through hedging Power Hedged Volume 2025 2026 2027 GWh 10,000 Power 9,000 8,000 Hedged volume (GWh) (3) 9,500 8,500 5,000 7,000 Weighted average hedged prices(1) ($/MWh) (3) High-$70s High-$70s Low-$80s 6,000 5,000 Forward Alberta power price
Slide 15: Q1 2024 vs. 2024 Targets
Q1 2024 vs. 2024 Targets Facility availability Sustaining capex ($M) Adjusted EBITDA ($M) AFFO ($M) $180 to $200 $1,405 to 94% YTD $770 to 93% $1,505 $870 $34 YTD $279 YTD $142 YTD Q1 2024 2024T Q1 2024 2024T Q1 2024 2024T Q1 2024 2024T • Adjusted EBITDA trending less than 5% below the lower end of
Slide 16: Investor Day 2024
Investor Event hosted at the JW Marriott Edmonton ICE District Day 2024 May 7, 2024 • • Tour of Genesee site Evening reception May 8, 2024 • • Breakfast and registration Presentations and Q&A • Lunch 16
Slide 17: Questions & Answers
Questions & Answers 17
Slide 18: Forward-looking information
Forward-looking information Forward-looking information or statements included in this MD&A are provided to inform our shareholders and • electricity and other energy and carbon prices; potential investors about management’s assessment of Capital Power’s future plans and operations. This • performan
Slide 19: Investor Relations
Investor Relations Roy Arthur VP, Investor Relations capitalpower.com 1-403-736-3315 investor@capitalpower.com 19