Capital Power Corporation · TSX:CPX
Capital Power — Q4 2019 Earnings Presentation
17 slides from Capital Power's earnings presentation, Feb 24, 2020
Slide 1: Q4/19 Analyst Conference Call
Q4/19 Analyst Conference Call Brian Vaasjo, President & CEO Bryan DeNeve, SVP Finance & CFO February 24, 2020 1
Slide 2: Forward-looking information
Forward-looking information Cautionary statement Certain information in this presentation and responses to questions contains forward-looking information. Actual results could differ materially from conclusions, forecasts or projections in the forward-looking information as a result of certain mater
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 and depreciation expense from its joint venture interests, gains or losses on disposals and unrealiz
Slide 4: Strong execution in 2019
Strong execution in 2019 An excellent year highlighted by additional contracted growth Growth • $1B acquisition of Goreway Power Station that doubled our $500M growth target • Completion of Whitla Wind 1 project • Successfully raised $1.2 billion in capital to fund growth • Assumed full control of G
Slide 5: 2019 performance versus annual targets
2019 performance versus annual targets Met or exceeded financial targets Facility availability Sustaining capex Adjusted EBITDA AFFO $485 to $80 to $555 $535M $90M $1,029 $870 to 95% $78 $907 $920M 94% Actual Revised Actual Revised Actual Reduced for Revised Actual Revised K3/G3 swap Target (1) Targ
Slide 6: Positive outlook in Alberta power prices
Positive outlook in Alberta power prices $/MWh 2019 average Positive outlook with 2020-2022 80 power price up 9% forward prices averaging $57/MWh 70 60 $55 $50 50 40 30 20 10 0 2018 2019 2020 Fwds 2021 Fwds 2022 Fwds 2023 Fwds 1) Forward prices as of February 20, 2020. 6
Slide 7: Financial highlights
Financial highlights Q4/19 and 2019 financial results were consistent with our updated expectations provided at Investor Day on Dec 5/19 AFFO at the high end of the updated $535 to $555 million guidance range Trading desk captured a 21% higher realized average power price versus spot price in
Slide 8: Financial performance – Q4/19
Financial performance – Q4/19 $M, except per share amounts Q4/19 Q4/18 Change Revenues and other income $683 $340 101% Adjusted EBITDA(1) $352 $171 106% Basic earnings per share $1.61 $1.24 30% Replace Image Normalized EPS $0.29 $0.30 -3% Net cash flows from operating activities $201 $133 51% Adjust
Slide 9: Financial performance – 2019
Financial performance – 2019 $M, except per share amounts 2019 2018 Change Revenues and other income $1,963 $1,417 39% Adjusted EBITDA(1) $1,029 $736 40% Basic earnings per share $0.73 $2.17 -66% Normalized EPS $1.34 $1.12 20% Net cash flows from operating activities $720 $450 60% Adjusted funds fro
Slide 10: Portfolio optimization
Portfolio optimization Alberta commercial portfolio positions 2020 2021 2022 % sold forward(1) 72% 3% 11% Contracted prices(1) ($/MWh) Mid-$50 Mid-$60 Low-$50 Current average forward prices(2) $60 $57 $53 ($/MWh) Increased our hedged position in 2020 from 53% to 72% since Q3/19 2021 commercial p
Slide 11: 2020 Financial targets
2020 Financial targets • Based on 63% of the Alberta Commercial baseload generation sold forward at an average contracted price in the mid-$50/MWh range • Excludes any impacts from $500M of committed capital for growth • Reflects a $40M reduction in AFFO from Arlington Valley’s previous tolling agre
Slide 12: 2020 development & construction targets
2020 development & construction targets Construction Cardinal Point Wind Whitla Wind 2 (Illinois) (Alberta) • 150 MW • 97 MW (Phase 2) • 12-year PPA • $165M CAD • $289 - $301M CAD • COD in 2021 • $236 - $246M USD • COD in Mar/20 Other contracted growth $500M of committed capital for growth; target
Slide 13: Sustainability Reporting
Sustainability Reporting Our inaugural Integrated Annual Report, combining our financial and environmental, social and governance (ESG) reporting –––––––––––––––––––––––––––––––––––––––––––––––– Our 2019 Climate Change Disclosure Report (1) –––––––––––––––––––––––––––––––––––––––––––––––– Strong sco
Slide 14: Sustainability: Creating Responsible Energy for Tomorrow
Sustainability: Creating Responsible Energy for Tomorrow Environmental Social Governance ––––––––––––––––––––––––––––––––––––––––– ––––––––––––––––––––––––––––––––––––––––– ––––––––––––––––––––––––––––––––––––––––– 100% dual-fuel capability at Genesee One of Canada’s 50 Best Corporate Board mandate
Slide 15: Questions?
Capital¢S apital RESPONSIBLE ENERGY FOR TOMORROW Questions?
Slide 16: Forward-looking information
Forward-looking information These statements are based on certain assumptions and analyses made by the Company in light of Forward-looking information or statements included in this presentation are provided to inform the Company’s shareholders and potential investors about management’s assessment o
Slide 17: Investor Relations
Title Heading Investor Relations Randy Mah Director, Investor Relations (780) 392-5305 PRESENTED BY: rmah@capitalpower.com Name Title 10423 101Month 00, 20XX Street NW 11th Floor Edmonton, Alberta Canada T5H 0E9 17