Capital Power Corporation · TSX:CPX
Capital Power — Q1 2018 Earnings Presentation
15 slides from Capital Power's earnings presentation, Apr 30, 2018
Slide 1: Q1/18 Analyst Conference Call
Q1/18 Analyst Conference Call Brian Vaasjo, President & CEO Bryan DeNeve, SVP Finance & CFO April 30, 2018 capitalpower.com
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 as a result of certain m
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, and gains or losses on disposals (adjuste
Slide 4: Executing on growth
Executing on growth Cardinal Point Wind is the 3rd U.S. wind development project Cardinal Point Wind is a 150 MW wind project in Illinois In Apr/18, executed a 12-year fixed price hedge agreement with an investment grade U.S. financial institution covering 85% of the facility’s output Revenue
Slide 5: Q1/18 highlights
Q1/18 highlights Strong operations and solid financial performance Strong operating performance with average facility availability of 96% Quarter benefitted from assets acquired and developed in 2017 Alberta power market Alberta power market continues to experience demand growth and impact of
Slide 6: Updates on Alberta power market
Updates on Alberta power market Capacity market design – update of key components AESO released 2nd draft of Comprehensive Market Design (CMD2) on Apr 24/18 Design continues to be constructive, indicating that existing and future assets will have an equal opportunity to earn a return on and of c
Slide 7: Q1/18 financial review
Q1/18 financial review Q1/18 financial results were generally in line with management’s expectations • Generated $85M of AFFO • Adjusted EBITDA(1) of $173M versus $134M in Q1/17 Timing difference for major planned outage at Genesee in 2018 versus 2017 • Genesee 2 outage in Q1/18 compared to Gene
Slide 8: Portfolio optimization
Portfolio optimization AB commercial portfolio positions 2019 2020 2021 As of date March 31, 2018 % sold forward(1) 46% 22% 4% Contracted prices(2) ($/MWh) Low-$50 Low-$50 Mid-$50 Current average forward prices(3) Mid-$50 Low-$50 Mid-$40 ($/MWh) Nearly 500 MW (gas peaking, wind) available to capture
Slide 9: Financial performance – Q1/18
Financial performance – Q1/18 $M, except per share amounts Q1/18 Q1/17 Change Revenues and other income $307 $338 (9%) Adjusted EBITDA (before mark-to-market)(1) $173 $134 29% Basic earnings per share $0.32 $0.44 (27%) Normalized EPS $0.30 $0.34 (12%) Adjusted funds from operations (AFFO) $85 $88 (3
Slide 10: Capital allocation
Capital allocation Absent growth, consider share buybacks and debt reduction TSX-approved Normal Course Issuer Dividend Bid (NCIB) to purchase and cancel up Growth to 9.3M common shares during the 1- year period ending Feb 20/19 Capital In Q1/18, bought back 713,100 shares Growth at a total cost
Slide 11: Q1/18 performance versus 2018 annual targets
Q1/18 performance versus 2018 annual targets Facility availability Sustaining capex ($M) 96% $85 95% $21 Q1/18 2018T Q1/18 2018T Facility O&M expenses ($M) AFFO ($M) $230 to $250 $360 to $400 $61 $85 Q1/18 2018T Q1/18 2018T 2018 AFFO expected to be above the midpoint of the range capitalpower.com 11
Slide 12: 2018 development & construction targets
2018 development & construction targets Construction New Frontier Wind (North Dakota) – $182M budget, COD in Dec 2018 Whitla Wind (Alberta) – $315-$325M budget, COD in Q4 2019 Development Execute contracts for the output of 1-3 new wind developments • Contract executed for Cardinal Point Wind
Slide 13: Questions?
Questions? capitalpower.com
Slide 14: Forward-looking information
Forward-looking information Forward-looking information or statements included in this presentation 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 may not be appropriate for othe
Slide 15: Investor Relations
Investor Relations Randy Mah 10423 101 Street NW Senior Manager 10th Floor (780) 392-5305 Edmonton, Alberta rmah@capitalpower.com Canada, T5H 0E9 www.capitalpower.com capitalpower.com