Capital Power Corporation · TSX:CPX
Capital Power — Q3 2024 Earnings Presentation
19 slides from Capital Power's earnings presentation, Oct 30, 2024
Slide 1: Record generation and diversification
Record generation and diversification Q3 2024 | Analyst presentation
Slide 2: Agenda
Agenda Q3 2024 | Analyst presentation 1. Business Highlights | Avik Dey - President & CEO 2. Financial Review | Sandra Haskins - SVP, Finance & CFO 3. Closing Remarks | Avik Dey - President & CEO 4. Q&A | Management Sandra Haskins SVP, Finance & Chief Financial Officer Avik Dey President & CEO 2
Slide 3: Forward-looking information and Non-GAAP financial measures and ratios
Forward-looking Non-GAAP financial information measures and ratios Cautionary statement Certain information in this presentation and responses to questions contain Capital Power uses (i) earnings before net finance expense, income tax expense, forward-looking information. Actual results could differ
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: Q3 2024 highlights
Q3 2024 highlights Deliver 11 • Generation of ~11TWh across our strategically positioned fleet ~ Terawatt hours Deliver • U.S. assets contributed 53% of Q3 2024 EBITDA Record quarterly generation • Investing in our assets; >60% of budgeted outage days complete Build 11 • Advancing 10 projects across
Slide 6: Strong power fundamentals
Strong power fundamentals Rising capacity factors underpin opportunity for reliable generation U.S. natural gas combined cycle Generation (TWh)(1) Capacity factor (%)(1) 1,482 57% 53% 1,241 2018 2023 2018 2023 1. SNL (S&P Capital IQ), U.S. combined cycle units 6
Slide 7: There is a strong case for re-contracting our existing thermal assets
There is a strong case CPX U.S. flexible generation capacity factor1 for re-contracting our existing thermal assets. 60% 53% 50% 45% 40% 37% 31% 30% 20% 10% 0% 2021 2022 2023 2024 YTD 1. Historical capacity factors have been re-baselined to include U.S. acquisitions. 7
Slide 8: U.S. asset diversification
U.S. asset diversification Q3 2023 Q3 2024 Generation 31% 40% 45% U.S. assets underscore value of diversification ~8.5TWh ~11TWh 54% Alberta • ~54% of generation in Q3 2024 Rest of Canada • ~53% of adjusted EBITDA in Q3 2024 U.S. 15% 15% Value of existing generation is rising • Potential to re-contr
Slide 9: Flexible generation: 2024 – 2026 Completion Timeline
Flexible generation Project Portfolio Update ~ 850 2024 – 2026 Completion Timeline MW 6 Total net incremental generation capacity Projects Alberta & Ontario 170 500 175 ~ ~ ~ MW MW MW BESS capacity Repower capacity Uprate / expansion capacity 9
Slide 10: Renewables: 2024 – 2027 Completion Timeline
Renewables Project Portfolio Update 305 2024 – 2027 Completion Timeline MW 4 Total net incremental generation capacity Projects Alberta & North Carolina 125 180 ~ ~ MW MW Wind Capacity Solar Capacity 10
Slide 11: Superior data center value proposition; speed to market with confidence
Superior data center value proposition; speed to market with confidence Existing reliable generation 14 flexible generation sites with ~7.8 GW of capacity Top tier land position with expansion potential ~18,000 acres of developable land In-house operational capabilities Dedicated and highly trained
Slide 12: Q3 Results
885 M $ Q3 $ 401M Adjusted Revenues and other income(1) EBITDA - $82M YoY Results - $13 YoY $ 315 M $ 236 M Net cash flows AFFO + $19M YoY from operating activities - $244M YoY 1. Before unrealized changes in fair value of commodity derivatives & emission credits 12
Slide 13: 9-month financial performance
$ 2,506 M 9-month $ 1,003Adjusted M Revenues and other income(1) EBITDA - $326M YoY financial - $139M YoY performance $ 635 M $ 706 M Net cash flows AFFO - $22M YoY from operating activities - $134M YoY 1. Before unrealized changes in fair value of commodity derivatives & emission credits. 13
Slide 14: Diversification of U.S. assets reduces adjusted EBITDA volatility
Diversification of U.S. assets reduces adjusted EBITDA volatility Adjusted EBITDA1 Q3 2023 to Q3 2024 comparison $238 $210 $134 $130 $76 $80 (36%) +72% +5% Alberta U.S. Rest of Canda Q2 2023 Q2 2024 1. Adjusted EBITDA is a non-GAAP financial measure. 14
Slide 15: Re-affirming guidance ranges for sustaining capex, AFFO and Adjusted EBITDA
Re-affirming guidance ranges for sustaining capex, AFFO and Adjusted EBITDA Sustaining capex ($M) AFFO ($M) Adjusted EBITDA ($M)1 $1,310 to $1,410 $770 $180 to $870 to $200 $1,003 $128 $635 Q3/24 YTD 2024T Q3/24 YTD 2024T Q3/24 YTD 2024T 1. Adjusted EBITDA revised guidance range 15
Slide 16: 2025 Guidance Investor Day
2025 Guidance Investor Day Virtual Call | January 2025 In-person | December 2025 16
Slide 17: Questions & Answers
Questions & Answers 17
Slide 18: Forward-looking information
Forward-looking information Forward-looking information or statements included in this MD&A are provided to inform our shareholders and • electricity and other energy and carbon prices; potential investors about management’s assessment of Capital Power’s future plans and operations. This • performan
Slide 19: Investor Relations
Investor Relations Roy Arthur VP, Investor Relations 1-403-736-3315 | investor@capitalpower.com capitalpower.com 19