Capital Power Corporation · TSX:CPX
Capital Power — Q4 2022 Earnings Presentation
14 slides from Capital Power's earnings presentation, Mar 1, 2023
Slide 1: Q4/22 Analyst Conference Call
Q4/22 Analyst Conference Call Brian Vaasjo, President & CEO Sandra Haskins, SVP Finance & CFO March 1, 2023 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 and ratios
Non-GAAP financial measures and ratios 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 a
Slide 4: Delivering on strategic objectives
Delivering on strategic objectives • Exceeded $500M committed capital for growth target in 2022 through the acquisition of the Midland Cogeneration facility with our JV partner Manulife Investment Management • Added 116 MW in renewables with COD of Clydesdale Solar and Strathmore Solar • Re-contract
Slide 5: Ontario IESO capacity procurement
Ontario IESO(1) capacity procurement Assets very well-positioned for success Significant near-term need for supply York Energy Centre • 1,500 MW of natural gas (15-year contracts) 228 MW • 2,500 MWh of storage (22-year contracts) Expedited RFP • IESO aiming to procure 600 MW of gas and 900 MW of sto
Slide 6: North Carolina solar projects
North Carolina solar projects Project update • Projects continue to be uneconomic with existing 2020 PPAs and significantly higher construction estimates due to industry wide cost Hornet Solar (75 MW) pressures • In discussion with offtaker Duke Energy, it is highly probable existing PPAs will be te
Slide 7: Financial highlights – financing a net zero energy future
Financial highlights – financing a net zero energy future Well-positioned to fund committed growth capex using internally generated cash flow • Record year for adjusted EBITDA (20% yoy) and AFFO (40% yoy) in 2022 • 9th consecutive annual dividend increase with 6% annual growth guidance to 2025 • Gre
Slide 8: Q4/22 financial performance
Q4/22 financial performance AFFO ($M) Strategic decisions • Strong operating $250 $12 performance in Q4/22 offset $24 by unusual items $225 recognized in the quarter $17 • Q4/22 included optimization $10 $60 of carbon emission credit $200 inventory, a major planned outage at Genesee 3 $175 deferred
Slide 9: 2022 financial performance exceeded expectations
2022 financial performance exceeded expectations Exceeded top end of revised guidance ranges from strong fleet-wide performance $3,360M $1,353M $935M $848M +44% yoy +20% yoy +8% yoy +40% yoy Revenues and other Adjusted EBITDA Net cash flows from AFFO income(1) operating activities • Adjusted EBITDA
Slide 10: Alberta power pricing
Alberta power pricing Forward prices for balance of 2023 remain strong 2023 Alberta Power Market • YTD prices settled well below $250 forwards due to very warm weather and strong $200 renewables generation • Balance of year forwards have strengthened relative to Nov $150 18/22 forward prices • Expec
Slide 11: Alberta commercial portfolio
Alberta commercial portfolio Reducing volatility and risk with multi-year hedges GWh Power Hedged Volume 2023 2024 2025 10,000 9,000 Power 8,000 Hedged volume (GWh) (3) 10,000 7,000 6,000 7,000 6,000 Weighted average hedged prices(1) ($/MWh) (3) High-$70s Low-$70s High-$60s 5,000 4,000 Forward Alber
Slide 12: 2023 operational and financial targets
2023 operational and financial targets Adjusted EBITDA up ~10%(1) driven by asset additions Facility availability Sustaining capex ($M) Adjusted EBITDA ($M) AFFO ($M) 93% 94% $141 $135 to $145 $1,455 to $1,515 $848 $805 to $865 $1,353 2022 2023 Target 2022 2023 Target 2022 2023 Target 2022 2023 Targ
Slide 13: Forward-looking information
Forward-looking information Forward-looking information or statements included in this Integrated Annual Report are provided to inform our These statements are based on certain assumptions and analyses made by Capital Power considering its shareholders and potential investors about management’s asse
Slide 14: Investor Relations
Investor Relations Randy Mah Director, Investor Relations (780) 392-5305 rmah@capitalpower.com 10423 101 Street NW 11th Floor Edmonton, Alberta Canada T5H 0E9 capitalpower.com 14