Capital Power Corporation · TSX:CPX
Capital Power — Q2 2020 Earnings Presentation
16 slides from Capital Power's earnings presentation, Jul 30, 2020
Slide 1: Q2/20 Analyst Conference Call
Q2/20 Analyst Conference Call July 30, 2020 Brian Vaasjo, President & CEO Bryan DeNeve, SVP Finance & CFO 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: Q2/20 highlights
Q2/20 highlights Solid Q2 results – meeting management expectations • No change in our 2020 outlook – reaffirming our financial guidance provided at Investor Day in Dec/19 Increased the common share dividend by 6.8% to $2.05 per year representing the 7th consecutive annual increase • Maintaining
Slide 5: Growth in Alberta renewables
Growth in Alberta renewables Whitla 3(1) Proceeding with phase 3 of Whitla Wind that will add 54 MW in late 2021 with an expected capital cost of $92M Construction activities and discussions for renewable offtake contracts with commercial and industrial customers will occur concurrently for Whit
Slide 6: Positioning Capital Power for the future
Positioning Capital Power for the future Brian Vaasjo President & CEO Kate Chisholm Bryan DeNeve Darcy Trufyn SVP Planning & Sandra Haskins Chris Kopecky Jacquie Pylypiuk SVP Business SVP Operations, Stakeholder Relations & SVP Finance & Chief SVP and Chief Legal SVP People, Culture & Development &
Slide 7: Financial highlights
Financial highlights Q2/20 financial results in line with our expectations Captured realized price of $53/MWh in Q2/20 Portfolio optimization Q2/20 Q2/19 compared to average AB spot price of $30/MWh that reflected lower market demand Average AB spot price $30/MWh $57/MWh from reduced oil and gas p
Slide 8: Financial performance – Q2/20
Financial performance – Q2/20 $M, except per share amounts Q2/20 Q2/19 Change Revenues and other income $435 $366 19% Adjusted EBITDA $217 $191 14% Basic earnings per share $0.10 $0.93 (89%) Replace Image Normalized EPS $0.17 $0.14 21% Net cash flows from operating activities $91 $114 (20%) Adjusted
Slide 9: Financial performance – Q2/20 YTD
Financial performance – Q2/20 YTD Q2/20 Q2/19 $M, except per share amounts Change YTD YTD Revenues and other income $968 $763 27% Adjusted EBITDA $451 $393 15% Basic (loss) earnings per share ($0.02) $1.42 (101%) Replace Image Normalized EPS $0.44 $0.44 0% Net cash flows from operating activities $1
Slide 10: Portfolio optimization
Portfolio optimization Alberta commercial portfolio positions Substantially all of baseload generation hedged for the remainder of 2020 Expect liquidity to increase during remainder of this year to facilitate increased hedging for 2021 2021 2022 2023 % sold forward(1) 10% 16% 11% Contracted pric
Slide 11: 6-month performance versus 2020 annual targets
6-month performance versus 2020 annual targets Facility availability Sustaining capex ($M) Adjusted EBITDA ($M) AFFO ($M) $90 to $100 $500 to $550 $935 to $985 93% 92% $451 $215 $34 Q2/20 YTD Target Q2/20 YTD Target Q2/20 YTD Target Q2/20 YTD Target 2020 Adjusted EBITDA 2020 AFFO expected to be expe
Slide 12: 2020 development and construction targets
2020 development and construction targets Targets Status Cardinal Point Wind (Illinois, 150 Total USD project cost expected near low end of budget MW) Complete construction range within $289-$301M (CAD), $236- Completed on-schedule with COD in Mar/20 $246M (USD) budget for COD in Received net
Slide 13: Progress on 2020 growth target
Progress on 2020 growth target $500M of committed capital for growth Buckthorn Wind (Texas) • ~$187M acquisition Committed Capital ($M) • 101 MW $500 ~$330 Whitla Wind 3 (Alberta) • $92M development • 54 MW, COD Q4/21 Q2/20 YTD Target Strathmore Solar (Alberta) • $50M-$55M development • 40.5 MW, COD
Slide 14: Questions?
Capital¢S pital RESPONSIBLE ENERGY FOR TOMORROW Questions?
Slide 15: Forward-looking information
Forward-looking information The material factors and assumptions used to develop these forward-looking statements relate to: Forward-looking information or statements included in this presentation are provided to inform the Company’s shareholders and potential investors about management’s assessment
Slide 16: Investor Relations
Q1/20 Analyst Conference Call [Insert picture of Cardinal Point or Buckthorn for title page; other visual images in presentation to be added] Investor Relations Randy Mah 10423 101 Street NW Director, Investor Relations 11th Floor (780) 392-5305 Edmonton, Alberta rmah@capitalpower.com Canada T5H 0E9