Capital Power Corporation · TSX:CPX
Capital Power — Q1 2017 Earnings Presentation
16 slides from Capital Power's earnings presentation, May 1, 2017
Slide 1: Q1/17 Analyst Conference Call
CAPITAL POWER Q1/17 Analyst Conference Call May 1, 2017 Brian Vaasjo, President & CEO Bryan DeNeve, 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 net finance expense, income tax expense, depreciation and amortization, impairments, foreign exchange gains or losses, finance expense from joint venture interest, and gains or losses on disposals (adjusted EBITDA), (ii) adjusted funds
Slide 4: Executing on growth
Executing on growth Recent acquisitions of contracted natural gas assets with 1,079 MWs of capacity Completed the acquisition of the York Energy and East Windsor facilities in Ontario from Veresen Inc. on Apr 13/17 York Energy (50% of 400 MW) Announced the acquisition of Decatur Energy Center lo
Slide 5: Acquisition of Decatur Energy Center
Acquisition of Decatur Energy Center Highlights of transaction Agreement to acquire Decatur Energy Center from LS Power for US$441M, subject to working capital and other closing adjustments Fully contracted until Dec. 2022 with high probability of recontracting based on its history and need for
Slide 6: Geographical profile
Geographical profile Acquisitions increase geographical diversification Geographical breakdown based on capacity US ON 6% 7% US BC 26% 13% AB AB ON 53% 74% 12% BC 9% 2016 year-end Including recent acquisitions and Bloom Wind 6
Slide 7: Improving contracted adjusted EBITDA
Improving contracted adjusted EBITDA(1,2,3,4) $600 Decatur $500 East Windsor York Energy Off-coal compensation $400 Bloom Macho Springs and Beaufort K2 Wind ($M) $300 Shepard PD&N $200 Halkirk Quality Wind Island Generation $100 North Carolina Kingsbridge 1 Genesee 1&2 $0 2010 2011 2012 2013 2014 20
Slide 8: Q1/17 operating performance
Q1/17 operating performance Facility availability Q1/17 Q1/16 AB commercial facilities Genesee 3 99% 99% Overall fleet performed Keephills 3 93% 90% well with average Clover Bar 99% 99% availability of 97% in Joffre 92% 89% Q1/17, unchanged from Shepard 99% 100% a year ago Halkirk 96% 99% AB contr
Slide 9: Q1/17 Financial review
Q1/17 Financial review Q1/17 financial results were in line with management’s expectations • Generated $91M of AFFO • Normalized EPS of $0.34 versus $0.33 in Q1/16 Trading desk captured a 150% higher realized average power price versus spot price in Q1/17 Portfolio optimization Q1/17 Q1/16 AB sp
Slide 10: Financial performance – Q1/17
Financial performance – Q1/17 $M, except per share amounts Q1/17 Q1/16 Change Revenues $338 $334 1% Adjusted EBITDA (before mark-to-market)(1) $134 $128 5% Basic earnings (loss) per share $0.44 $(0.11) - Normalized earnings per share $0.34 $0.33 3% Adjusted funds from operations $91 $93 (2%) Results
Slide 11: Financial outlook
Financial outlook Commencement of annual off-coal compensation payments of $52.4M per year in the third quarter Partial year AFFO and EBITDA contributions from the acquisitions of York Energy, East Windsor and Decatur Alberta Commercial baseload positions: 2018 2019 2020 As of date Mar 31/17 %
Slide 12: Q1/17 performance vs. annual targets
Q1/17 performance vs. annual targets Facility availability Sustaining capex ($M) 97% $75 $80 95% $4 Q1/17 Original Current Q1/17 Target Target Target Facility O&M expenses ($M) AFFO ($M) $215 to $240 $195 to $215 $340 to $385 $305 to $345 $49 $91 Q1/17 Original Current Q1/17 Original Current Target
Slide 13: Disciplined growth targets
Disciplined growth targets Bloom Wind and new developments 2017 Targets Q1/17 Status Complete Bloom Wind on time Construction expected to be and on budget for COD in Q3/17 completed on time and on budget Execute contracts for the output On track with target – progress of two new developments
Slide 14: QUESTIONS?
Capital¢S eae
Slide 15: 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 16: Investor Relations Contact
Investor Relations Contact Randy Mah 10423 101 Street NW Senior Manager 10th Floor (780) 392-5305 Edmonton, Alberta rmah@capitalpower.com Canada, T5H 0E9 www.capitalpower.com