Capital Power Corporation · TSX:CPX
Capital Power — Q1 2014 Earnings Presentation
14 slides from Capital Power's earnings presentation, Apr 28, 2014
Slide 1: Q1/14 Analyst Conference Call
CAPITAL POWER Q1/14 Analyst Conference Call April 28, 2014 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
Corporate updates Partnering with ENMAX on Genesee 4 & 5 facilities In Dec/13, announced letter of intent with ENMAX to pursue joint arrangement agreements to develop, construct, own and operate the Genesee 4 & 5 facilities Project ownership agreements have been executed; balance of agreements s
Slide 5: Corporate updates
Corporate updates Genesee coal mine joint venture Sherritt International’s pending sale of its joint venture mine interest to Westmoreland Coal Company In connection with the acquisition by Westmoreland, certain related agreements will be amended and Capital Power will receive a payment of $20 m
Slide 6: Q1/14 Operating performance
Q1/14 Operating performance Plant availability Q1/14 Q1/13 Alberta commercial plants Genesee 3 96% 98% Strong fleet availability of Keephills 3 100% 98% 94% in Q1/14 comparable Clover Bar 97% 99% to Q1/13 Joffre 100% 92% Halkirk 96% 98% AB commercial plants had Alberta contracted Genesee 1 83% 9
Slide 7: Financial review
Financial review Portfolio optimization Q1/14 Q1/13 Change Hedged position(1) (% sold fwd at beginning) 92% 49% - Spot power price average (MW/h) $61 $65 (6.2%) Realized power price(2) (MW/h) $58 $69 (15.9%) Q1/14 results impacted by a high hedge position of 92% on the AB power portfolio resulting i
Slide 8: Financial performance – Q1/14
Financial performance – Q1/14 $M, except per share amounts Q1/14 Q1/13 Change Revenues $308 $365 (16%) Adjusted EBITDA (before mark-to-market)(1) $106 $122 (13%) Basic earnings per share $0.33 $0.44 (25%) Normalized earnings per share $0.31 $0.36 (14%) Funds from operations $90 $103 (13%) Q1/14 resu
Slide 9: 2014 Financial outlook
2014 Financial outlook No change to 2014 annual guidance Expect lower realized prices on unhedged position and profitability from Clover Bar peaking facility Partially offset by a full year of earnings from Port Dover & Nanticoke and higher plant availability target of 95% Alberta portfolio he
Slide 10: 2014 Corporate priorities
2014 Corporate priorities Operational and financial targets Plant availability ($M) Sustaining capex 100% $100 95% $85 95% 94% $75 90% $50 85% $25 $8 80% $0 Q1/14 2014T Q1/14 2014T Plant operating & ($M) Funds from operations ($M) maintenance expenses $200 $400 } $360 to } $165 to $150 $300 $400 $18
Slide 11: 2014 Corporate priorities
2014 Corporate priorities Development and construction targets 2014 Targets Q1/14 Results K2 Wind Commence construction Construction commenced & complete project following completion of the financing $850M project financing in Q1/14 Shepard Energy Complete construction On track with target Centre wi
Slide 12: QUESTIONS?
QUESTIONS?
Slide 13: 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 14: 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