Capital Power Corporation · TSX:CPX
Capital Power — Q1 2015 Earnings Presentation
17 slides from Capital Power's earnings presentation, Apr 27, 2015
Slide 1: Q1/15 Analyst Conference Call
CAPITAL POWER Q1/15 Analyst Conference Call April 27, 2015 Brian Vaasjo, President & CEO Stuart Lee, SVP Finance & CFO
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, and gains on disposals (adjusted EBITDA), (ii) funds from operations (FFO), (iii) normalized earnings attributable to co
Slide 4: Corporate updates: Shepard Energy Centre
Corporate updates Shepard Energy Centre begins commercial operations In Mar/15, Shepard became fully operational and capable of generating over 800 MW of power to the Alberta grid Final construction costs not expected to exceed $854M, which includes an accrued performance bonus to the turbine ma
Slide 5: Corporate updates: Beaufort Solar
Corporate updates Beaufort Solar Board has approved the 15 MW solar project in North Carolina, U.S. Fully contracted facility with a 15- year PPA with Duke Energy Commercial operations date (COD) targeted for Dec/15 Sale leaseback structure; sell to tax equity investor at COD in exchange for
Slide 6: Q1/15 Operating performance
Q1/15 Operating performance Plant availability Q1/15 Q1/14 Alberta commercial Genesee 3 100% 96% Strong operating plants Keephills 3 100% 100% performance across Clover Bar 97% 97% the fleet with average Joffre 99% 100% availability of 98% Shepard 80% N/A compared to 94% in Halkirk 99% 96% Q1/14 A
Slide 7: EPCOR ownership reduced
EPCOR ownership reduced Recent $225M Secondary Offering by EPCOR has reduced their ownership position in Capital Power L.P. (CPLP) to 9% from 18%. On Apr 2/15 closing date, EPCOR exchanged their remaining CPLP units to common shares. Registration Rights Agreement terminated – Capital Power no lo
Slide 8: Capital allocation
Capital allocation (1) Growing contracted cash flow base supports Dividend dividend growth Growth Capital Growth (2) Well positioned to fund or partially fund Allocation Opportunities any new significant growth opportunities in the near term with discretionary cash flow Repurchase (3) Consider debt
Slide 9: Q1/15 Financial review
Q1/15 Financial review Generated $108M of FFO in Q1/15 in-line with expectations Normalized EPS of $0.32 benefited from higher captured prices from portfolio trading activities that were offset by lower settled prices for the AB Commercial plants and 1-month delay from March to April on the effe
Slide 10: Financial performance – Q1/15
Financial performance – Q1/15 $M, except per share amounts Q1/15 Q1/14 Change Revenues $358 $308 16% Adjusted EBITDA (before mark-to-market)(1) $116 $106 9% Basic earnings per share $0.41 $0.33 24% Normalized earnings per share $0.32 $0.32 - Funds from operations $108 $92 17% Positive year-over-year
Slide 11: Financial outlook
Financial outlook 2015 Alberta power forwards are currently in the low-$30/MWh range, which is lower than our original forecast assumption of $44/MWh At the beginning of the year, Alberta baseload position for 2015 was significantly hedged in the mid-$50/MWh No change to revised FFO guidance;
Slide 12: Q1/15 Performance and 2015 targets
Q1/15 Performance and 2015 targets Operational and financial targets ($M) 100% Plant availability Sustaining capex $100 95% 98% $75 94% 90% $50 $65 85% $25 80% $6 $0 Q1/15 2015 Target Q1/15 2015 Target Plant operating & maintenance expenses Funds from operations ($M) $200 $180 - $200 ($M) $365 - $41
Slide 13: 2015 Development & construction targets
2015 Development & construction targets On-time, on-budget and safe development of committed projects K2 Wind (Ontario) Genesee 4&5 (Alberta) Complete construction for Transition from development COD in mid-2015 to construction 13
Slide 14: Executive rotation
Executive rotation As part of Capital Power’s ongoing executive development, the Board of Directors have approved the rotation of Stuart Lee and Bryan DeNeve Executive rotation effective May 1, 2015 Stuart Lee Bryan DeNeve Senior VP, Finance & Senior VP, Corporate Chief Financial Officer Develop
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 Senior Manager (780) 392-5305 rmah@capitalpower.com Head Office 10th Floor 10423 – 101 Street NW Edmonton, AB T5H 0E9 www.capitalpower.com