Capital Power Corporation · TSX:CPX

Capital Power — Q2 2014 Earnings Presentation

17 slides from Capital Power's earnings presentation, Jul 28, 2014

  1. Slide 1: Q2/14 Analyst Conference Call

    CAPITAL POWER Q2/14 Analyst Conference Call July 28, 2014 Brian Vaasjo, President & CEO Stuart Lee, SVP Finance & CFO

  2. 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

  3. 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

  4. Slide 4: Corporate updates: Genesee 4 & 5 agreements with ENMAX

    Corporate updates Finalized agreements with ENMAX on Genesee 4 & 5 facilities  Joint arrangement agreements finalized with ENMAX in July 2014 to develop, construct, own and operate the Genesee 4 & 5 facilities  Capital Power will lead the development and construction of the project and will be the

  5. Slide 5: Corporate updates: Shepard construction update

    Corporate updates Shepard construction update  Construction of the 800 MW natural gas combined cycle facility is approximately 97% completed  First fire scheduled for early August with construction expected to be completed by the end of 2014  COD targeted in early 2015 5

  6. Slide 6: Dividend increase

    Dividend increase A $0.10 increase to annual dividend; now $1.36 per share  Effective with Q3/14 dividend, quarterly dividend increased by 7.9% to $0.34 from $0.315  Contracted cash flow base has grown significantly with the additions of three contracted wind facilities since 2012 and with the sch

  7. Slide 7: Q2/14 results

    Q2/14 results  Results impacted by seasonally weak Alberta power prices of $42/MWh compared to an unusual $123/MWh in Q2/13 caused by numerous planned/unplanned plant outages and low wind generation  14% lower generation from AB commercial plants and acquired Sundance PPA segment due to: • Derates

  8. Slide 8: Q2/14 Operating performance

    Q2/14 Operating performance Plant availability Q2/14 Q2/13 Alberta Genesee 3 96% 100% commercial plants  Overall average fleet Keephills 3 100% 65% availability of 92% in Clover Bar 98% 99% Q2/14 versus 86% in Joffre 95% 100% Q2/13 Halkirk 98% 99% Alberta contracted Genesee 1 96% 61%  97% average

  9. Slide 9: Financial review

    Financial review Portfolio optimization Q2/14 Q2/13 Change Spot power price average (MW/h) $42 $123 (66%) Realized power price(1) (MW/h) $57 $93 (39%) Q2/14 results impacted by the hedge position on the AB power portfolio resulting in a captured price of $57/MWh, compared to a $93/MWh captured price

  10. Slide 10: Financial performance – Q2/14

    Financial performance – Q2/14 $M, except per share amounts Q2/14 Q2/13 Change Revenues $240 $321 (25%) Adjusted EBITDA (before mark-to-market)(1) $91 $109 (17%) Basic earnings per share $0.17 $0.20 (15%) Normalized earnings per share $0.07 $0.27 (74%) Funds from operations $85 $85 - Q2/14 results re

  11. Slide 11: Financial performance – 2014 YTD

    Financial performance – 2014 YTD 2014 2013 $M, except per share amounts Change YTD YTD Revenues $548 $686 (20%) Adjusted EBITDA (before mark-to-market)(1) $197 $231 (15%) Basic earnings per share $0.50 $0.64 (22%) Normalized earnings per share $0.39 $0.63 (38%) Funds from operations $177 $191 (7%) 2

  12. Slide 12: 2014 Financial outlook

    2014 Financial outlook No change to 2014 annual guidance  AB power prices in the second half of 2014 are expected in the low- $60/MWh range  Alberta portfolio hedged positions (% sold forward) Jul-Dec, 2014 2015 2016 Percentage sold forward(1) 100% 86% 46% Average contracted prices(2) Mid-$50 Mid-

  13. Slide 13: 2014 Corporate priorities

    2014 Corporate priorities Operational and financial targets Plant availability ($M) Sustaining capex 100% $100 $85 94% 95% 95% $75 90% $50 $33 85% $25 80% $0 2014 YTD 2014T 2014 YTD 2014T Plant operating & ($M) Funds from operations ($M) maintenance expenses $400 $200 } $360 to } $165 to $300 $400 $

  14. Slide 14: 2014 Corporate priorities: development and construction targets

    2014 Corporate priorities Development and construction targets 2014 Targets Status K2 Wind Commence construction Construction commenced & complete project following completion of the financing $850M project financing in Q1/14 Shepard Energy Complete construction Construction on track for Centre with

  15. Slide 15: Questions?

    QUESTIONS?

  16. 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

  17. 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

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