Capital Power Corporation · TSX:CPX
Capital Power — Q1 2023 Earnings Presentation
12 slides from Capital Power's earnings presentation, May 1, 2023
Slide 1: Q1/23 Analyst Conference Call
Q1/23 Analyst Conference Call Brian Vaasjo, President & CEO Sandra Haskins, SVP Finance & CFO May 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: 6-year contract extension for Goreway
6-year contract extension for Goreway Awarded 40 MW efficiency upgrade from Ontario IESO(1) capacity procurement York Energy Centre 228 MW • Efficiency upgrade will increase current combined contracted capacity from 840 to 880 MW • Contract extension applies to new contracted capacity of 880 MW and
Slide 5: Genesee 1 & 2 repowering project update
Genesee 1 & 2 repowering project update On track to be off coal in 2023 • On schedule to achieve simple cycle commissioning of both units in Q4/23, followed by combined cycle in Q2/24 • Current repowering project cost of $1.1B ($997M budget) and $195M for battery energy storage system (BESS) • Proje
Slide 6: Genesee CCS project update
Genesee CCS project update • Expect Board approval in principle this summer with FID in October • FEED study essentially completed • 2023 Federal Budget • Reaffirmation of role and mandate for Canada Growth Fund to support de-risking of large scale decarbonization through Carbon Contracts for Differ
Slide 7: Highest quarter on record for adjusted EBITDA
Highest quarter on record for adjusted EBITDA $996M $401M $349M $210M +34% yoy +15% yoy -16% yoy +5% yoy Revenues and other Adjusted EBITDA Net cash flows from AFFO income(1) operating activities • Financial results benefitted from higher realized Alberta power prices, offset by milder temperatures
Slide 8: Alberta commercial portfolio
Alberta commercial portfolio Reducing volatility and risk through hedging Power Hedged Volume 2024 2025 2026 GWh 10,000 Power 9,000 8,000 Hedged volume (GWh) (3) 8,000 6,500 4,000 7,000 Weighted average hedged prices(1) ($/MWh) (3) Low-$70s Low-$70s Low-$70s 6,000 5,000 Forward Alberta power prices
Slide 9: Alberta power pricing
Alberta power pricing Forward prices for balance of 2023 remain strong $/MWh 2023 Alberta Power Market $250 • Q1 settles were well below forwards coming into 2023 $200 • Forward prices show additional strength $154 $150 $136 relative to guidance $135 • Assets well positioned to $100 capitalize on ma
Slide 10: 2023 operational and financial targets
2023 operational and financial targets Financial forecast and fleetwide performance remain extremely positive Facility availability Sustaining capex ($M) Adjusted EBITDA ($M) AFFO ($M) 94% 94% $135 to $145 $1,455 to $1,515 $805 to $865 $401 $210 $23 Q1/23 2023 Target Q1/23 2023 Target Q1/23 2023 Tar
Slide 11: Forward-looking information
Forward-looking information Forward-looking information or statements included in this presentation are provided to inform our electricity and other energy and carbon prices; shareholders and potential investors about management’s assessment of Capital Power’s future plans and performance; opera
Slide 12: 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 12