Capital Power Corporation · TSX:CPX
Capital Power — Q3 2016 Earnings Presentation
17 slides from Capital Power's earnings presentation, Oct 24, 2016
Slide 1: Q3/16 Analyst Conference Call
CAPITAL POWER Q3/16 Analyst Conference Call October 24, 2016 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 finance expense, income tax expense, depreciation and amortization, impairments, foreign exchange gains or losses, finance expense from joint venture, and gains or losses on disposals (adjusted EBITDA), (ii) funds from operations, (iii
Slide 4: Q3/16 Update
Q3/16 Update Q3/16 financial performance modestly ahead of our expectations Continue to be engaged with the AB government to ensure fair compensation is received for proposed accelerated closure of coal-fired units by 2030 under the Climate Leadership Plan Coal phase-out facilitator has provid
Slide 5: Genesee 4&5 project
Genesee 4&5 project Full notice to proceed (FNTP) decision for Genesee 4&5 moved to Q1/17 from Q4/16 and contingent on • Announcement of fair compensation by AB government • Clarity that implementation of Climate Leadership Plan will have no adverse impact on the Alberta electricity market design
Slide 6: Q3/16 Operating performance
Q3/16 Operating performance Plant availability Q3/16 Q3/15 Alberta commercial Genesee 3 100% 100% Solid operating plants Keephills 3 96% 63% performance from Clover Bar 91% 88% Capital Power Joffre 81% 100% operated facilities Shepard 99% 100% Halkirk 96% 97% 96% average availability in Q3/16, A
Slide 7: Recent financings strengthen balance sheet
Recent financings strengthen balance sheet Completed long-term private placement debt financing • Closed a C$160M, 10-year non-amortizing private placement Note with Prudential Capital Group • Note bears an interest rate of 3.85%, payable semi-annually Issued Preferred shares (Series 7) • Issued
Slide 8: Q3/16 Financial review
Q3/16 Financial review Generated $94M of FFO, down 3% compared to $97M in Q3/15 Normalized EPS of $0.31 versus $0.33 in Q3/15 Despite a 31% decline in average Alberta power prices from $26/MWh to $18/MWh in Q3 year-over-year, trading desk captured a 289% higher realized average power price ver
Slide 9: Financial performance – Q3/16
Financial performance – Q3/16 $M, except per share amounts Q3/16 Q3/15 Change Revenues $378 $469 (19%) Adjusted EBITDA (before mark-to-market)(1) $120 $127 (6%) Basic earnings per share $0.63 $0.44 43% Normalized earnings per share $0.31 $0.33 (6%) Funds from operations $94 $97 (3%) Lower Adjusted E
Slide 10: Financial performance – Q3/16 YTD
Financial performance – Q3/16 YTD Q3/16 Q3/15 $M, except per share amounts Change YTD YTD Revenues $948 $910 4% Adjusted EBITDA (before mark-to-market)(1) $371 $337 10% Basic earnings per share $0.71 $0.40 78% Normalized earnings per share $0.95 $0.73 30% Funds from operations $309 $275 12% Increase
Slide 11: Financial outlook
Financial outlook Alberta commercial hedging profile Termination of our Buyer role under Sundance C PPA has significantly increased our baseload hedging profile from 2015 year-end Alberta Commercial baseload positions: 2017 2018 2019 As of date Jun Sep Jun Sep Jun Sep 30/16(1) 30/16 30/16(1) 30/
Slide 12: 2016 YTD performance vs. annual targets
2016 YTD performance vs. annual targets Operational and financial targets Plant availability Sustaining capex ($M) 94% 94% $65 $38 2016 YTD Target 2016 YTD Target Plant operating & Funds from operations ($M) maintenance expenses ($M) $380 - $430 $200 - $220 $309 $155 2016 YTD Target 2016 YTD Target
Slide 13: 2016 Disciplined growth targets
2016 Disciplined growth targets Genesee 4&5 (Alberta) Target Q3/16 Status Proceeding with construction based on: Full notice to proceed decision Clarity with respect to impact of moved to Q1/17 decisions from the AB government’s Revised construction plan would Climate Leadership Plan achieve s
Slide 14: 2016 Disciplined growth targets
2016 Disciplined growth targets New developments Target Q3/16 Status Execute a contract for the Bloom Wind (178 MW project in output of a new development Kansas) • 10-year fixed price contract covering 100% of the output • Construction started in Q3/16 with COD targeted in Q3/17 Actively biddi
Slide 15: Questions?
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Slide 16: 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 17: Investor Relations Contact
Investor Relations Contact Randy Mah Head Office Senior Manager 10th Floor (780) 392-5305 10423 – 101 Street NW rmah@capitalpower.com Edmonton, AB T5H 0E9 www.capitalpower.com