Capital Power Corporation · TSX:CPX
Capital Power — Investor Presentation (January 2024)
18 slides from Capital Power's investor presentation, January 2024
Slide 1: Building the leading power producer in North America: 2024 Guidance
Building the leading power producer in North America 2024 Guidance January 2024 1
Slide 2: Forward-looking information
Forward-looking information Forward-looking information or statements included in this presentation are provided to inform our • electricity and other energy and carbon prices; shareholders and potential investors about management’s assessment of Capital Power’s future plans and • performance; opera
Slide 3: Non-GAAP financial measures and ratios
Non-GAAP financial measures and ratios Non-GAAP Financial Measures and Ratios This presentation contains references to certain financial measures that do not have a standardized meaning prescribed by GAAP and may not be comparable to similar measures presented by other issuers and should not be cons
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: Presentation Team
Presentation Team Avik Dey Sandra Haskins President & Chief SVP, Finance & Chief Executive Officer Financial Officer 1/16/2024 5
Slide 6: Agenda
Agenda • Corporate Overview • 2024 Priorities • 2024 Targets • Key Assumptions • Sources & Uses of Funds • Key Takeaways 6
Slide 7: Delivering reliable, affordable and decarbonized electricity solutions
Delivering reliable, affordable and decarbonized electricity solutions Reliable Operational Net Zero Power Excellence by 2045 Stable and growing Well maintained ESG leader cash flows from a and efficiently committed to highly contracted operated plants decarbonization generation portfolio Balance Sh
Slide 8: North American footprint
North American footprint 30 Operating Facilities In Operation Wind 7 700 Solar Gas ~ Gas / Coal* , Waste Heat Landfill Gas Megawatts Battery Storage Development and Construction *Genesee 1, 2, 3 shown as one facility 8
Slide 9: 2024 Priorities
2024 Priorities A balanced approach to the energy transition DELIVER BUILD CREATE 1 Reliable & affordable power today 2 Decarbonized power systems for tomorrow 3 Real net-zero power solutions for customers Provide safe, reliable generation Complete $1.35B repower Advance low-carbon solutions • Stron
Slide 10: 2024 Operational and Financial Targets
2024 Operational and Financial Targets Facility availability Sustaining capex ($M) Adjusted EBITDA ($M) AFFO ($M) $1,450 to $1,405 to $800 to $770 to 94% 93% $180 to $200 $810 $870 $1,460 $1,505 $135 to $145 2023T 2024T 2023T 2024T 2023T 2024T 2023T 2024T • Facility availability reflects Genesee rep
Slide 11: Genesee repower timelines/assumptions
Simple Cycle Completion Combined Cycle Completion Genesee repower Unit #1 Q2 2024 Unit #2 Q3 2024 Unit #1 Q4 2024 Unit #2 Q4 2024 timelines/assumptions Simple Cycle Completion – 411 MWs capacity • Unit 1 Q2 2024 • Unit 2 Q3 2024 • Output during commissioning will range between 0 MWs and 411 MWs • Ex
Slide 12: Alberta commercial portfolio
Alberta commercial portfolio Reducing volatility and risk through hedging GWh Power Hedged Volume 10,000 2024 2025 2026 9,000 Power 8,000 Hedged volume (GWh) (3) 10,500 9,000 7,500 7,000 6,000 Weighted average hedged prices(1) ($/MWh) (3) High-$70s Mid-$70s Mid-$70s 5,000 4,000 Forward Alberta power
Slide 13: Key Assumptions for Acquisitions
Key Assumptions for Acquisitions Fredrickson 1 Acquisitions contribute $260M in Adjusted • Closed December 28, 2023 EBITDA in 2024, filling the gap from • EBITDA $18M CAD softened Alberta fundamentals La Paloma / Harquahala • Expected close in February 2024 • EBITDA $243M CAD net of transaction cost
Slide 14: 2024 Adjusted EBITDA Compared to 2023 Guidance
2024 Adjusted EBITDA Compared to 2023 Guidance Increase of over 9% in year-over-year adjusted EBITDA on normalized basis ($M) AB Commercial Other Coal Acquisitions Compensation 2023T(1) Normalized 2024T 2023T 1) 2023T expected to be low end of the guidance range of $1,455M - $1,515M 14
Slide 15: 2024 Guidance Midpoint with Existing Assets and Acquisitions
2023 2024 Guidance Midpoint 2024 Guidance Midpoint Guidance with Existing Assets with Acquisitions Adjusted EBITDA Split by Fuel Type 5% 5% 6% Other Other Other 18% 18% 19% 21% Renewable Renewable Coal Renewable 73% 78% 59% Gas Gas Gas Adjusted EBITDA Split by US vs CAN 24% 26% 38% US US US 62% 76%
Slide 16: Cash Flow and Financing Outlook
Cash Flow and Financing Outlook Balanced finance plan to fund 2024 growth Expected Sources Expected Uses $75M Cash/Credit $90M(1) Facilities $110M Common dividends $320M Debt Debt repayments $1.7B $1.7B (1) Capital AFFO and other Market $820M (1) $590M (3) Transaction $650M (2) $85M Committed DRIP g
Slide 17: Key Takeaways
Key Strong Financial Performance Takeaways • Over 9% increase over 2023 in normalized Adjusted EBITDA Genesee Repower project complete • Most efficient combined cycle unit in Canada • Reduces approximately $200M in carbon tax Acquisitions diversify portfolio and cashflow resiliency • Canada/U.S. EBI
Slide 18: Investor Relations
Investor Relations Kat Perron Media & Investor Relations capitalpower.com 1-780-392-5335 investor@capitalpower.com 18