Capital Power Corporation · TSX:CPX
Capital Power — Investor Presentation (May 2025)
34 slides from Capital Power's investor presentation, May 2025
Slide 1: Powering the North American energy expansion
Powering the North American energy expansion May 2025 | Investor Presentation
Slide 2: Capital Power at a Glance
Capital Power at a Glance Our Capitalization and Yield1 Our People and Facilities ~ $14 bn ~ $8 bn ~5 % ~725 3 30 Enterprise Market Dividend Employees Corporate Facilities Value Capitalization yield Offices Our Portfolio: 10GW Capacity Our Cash Flow and Risk Profile Renewabes ~$1.4 BBB- ~9 years 14%
Slide 3: Creating Balanced Energy Solutions
Creating Balanced Energy Solutions Flexible Generation Renewables Trading & Origination • Critical, dispatchable supply • Affordable and clean • Actively trade in North American • Reliable and affordable • Carbon market opportunities power, gas and environmental markets • Value creation and optimiza
Slide 4: Natural gas is fueling the energy expansion
Reliable Affordable Clean Natural gas is fueling the energy expansion 4
Slide 5: Strong fundamentals
Strong fundamentals Gas is critical to grid reliability US Natural Gas Power Generation (TWh)1 2,000 1,750 CAGR1,2 U.S. Power - All Technologies 1,500 ~0.5% 1,250 CAGR1,2 U.S. Power - Natural Gas 1,000 ~5.0% 750 U.S. GDP 500 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Slide 6: Multiple sources of growth driving power demand
US Power Demand CAGR (%)(1) 0.9% 2.9% ~70% 0.6% Multiple sources 0.8% of growth driving power demand 0.6% Residential C&I (ex DC) Transportation Data Centers Total ~70% of projected power demand growth is not from data centers 1. Goldman Sachs global investment research, EIA: Total demand CAGR of 2.
Slide 7: Robust and multi-faceted data center power demand growth
US Data Center Power Demand (TWh)(1) • AI Robust and ~17% CAGR • multi-faceted App support • Video / streaming data center power • Financial transactions demand growth • Cloud computing 2020 2030E Majority of projected data center power demand growth is not from AI 1. Goldman Sachs global investment
Slide 8: Natural gas is critical to meeting growing electricity demand
Natural gas is critical to meeting growing electricity demand Abundant low-cost gas supply ~900 GW of existing gas-fired capacity(1) Ensures Affordability Able to provide base load and Efficient power production and peaking capacity decarbonization potential (CCS, hydrogen etc.) Natural Gas Provides
Slide 9: Strong power fundamentals favour existing natural gas generation
Strong power fundamentals favour existing natural gas generation Multi-faceted power Natural gas: Existing natural demand growth fueling the future gas undervalued • C&I • Reliable • Compelling acquisition • Residential • Affordable opportunity • Transportation • Clean • Data centers CPX has multipl
Slide 10: Capital Power Update
Reliable Affordable Clean Capital Power Update Positioned to succeed amid energy expansion 10
Slide 11: Execution of growth strategy enhances shareholder value
Execution of growth strategy enhances shareholder value Flexible Generation1 and Renewables Contract Asset Optimization Acquire Develop Optimization & Expansion Targeted Annual Total Shareholder Return of 12-14% 1. Flexible Generation is defined as natural gas generation assets and energy storage bu
Slide 12: Acquire: ~$3.0B acquisition of two natural gas-fired facilities in PJM
Acquire: ~$3.0B acquisition of two natural gas-fired facilities in PJM Enhanced PJM High Quality Financial Merit Institutional Scale Market Assets Validation Positions Capital Power Large and liquid Consistent with Expected to be accretive as one of five N.A. market with growth, expansion and to
Slide 13: Acquire: Position of scale in a key power market
Acquire: Position of scale in a key power market Rapid acceleration of PJM Largest, most liquid power Power supply constraints Why PJM? market in N.A. load growth forecasts: are expected to continue +44% by 20401,2 PJM load growth projections continue to rise, helping to support capacity and energy
Slide 14: Contract Optimization: There is a strong case for re-contracting
CPX U.S. flexible generation capacity factor1 60% 53% Contract Optimization: 50% 45% There is a strong case 40% 37% for re-contracting our 30% 31% existing flexible generation assets 20% 10% 0% 2021 2022 2023 2024 1. Historical capacity factors have been re-baselined to include U.S. acquisitions.
Slide 15: Contract Optimization: Superior data center value proposition
Contract Optimization: Superior data center value proposition; speed to market with confidence Existing reliable generation 14 flexible generation sites with ~7.8 GW of capacity Top tier land position with expansion potential ~18,000 acres of developable land In-house operational capabilities Dedica
Slide 16: Optimization & Expansion: Building fleetwide efficiencies
York(1) and Goreway Uprates ~60MW ~$14M 3 & 6 year Capacity Annual EBITDA Contract Optimization & Expansion: Added Benefit Extensions Building fleetwide efficiencies through optimization and Decatur CT Uprate expansion ~90MW ~$8M 10 year Capacity Annual EBITDA Contract Added Benefit Extension 1. Ref
Slide 17: Develop: Remaining material renewables growth with future sell-down potential
CPX Renewables Capacity (MW) 620 Develop: Remaining Material renewables 1,500 305 solar panels(1) growth with future sell-down potential Operating renewables Under construction Potential development Renewable assets: 13 operating, 4 under construction 1. Solar panels remaining for deployment, pursua
Slide 18: Resilient amid uncertainty
Resilient amid uncertainty Our business is largely insulated from tariffs Operationally insulated Strategically positioned assets ~90% High-quality counterparties and strong contractual underpinning Fundamentals support growth Contracted / hedged A-rated Adjusted EBITDA1 counterparties2 Limited near
Slide 19: Stable and contracted EBITDA with potential for growth
Stable and contracted EBITDA with potential for growth ($M) 1,340-1,440 1,265-1,315 Base Enhanced Total Capacity and tolling contracts Less than 1-year hedges and Energy margin contracts optimization of non-baseload Long term hedges facilities 19
Slide 20: 2025 Guidance summary
2025 Guidance summary $M Reaffirming 2025 guidance ranges Adjusted EBITDA AFFO Sustaining Capex 850-950 1,340-1,440 195-225 367 YTD 218 YTD 46 YTD Q1 2025 2025 Guidance Q1 2025 2025 Guidance Q1 2025 2025 Guidance 20
Slide 21: Strong Liquidity | Ready to Grow
Strong Liquidity | Ready to Grow Sources Uses Cash and ST credit facilities Repayment of debt and other DRIP Committed growth / ~$1.1B ~$1.1B enhanced capex AFFO Dividends 21
Slide 22: CPX Investment Thesis
2025 Guidance Presentation CPX Investment Thesis Strong fundamentals favour existing gas generation capacity Large, diversified existing generation footprint Unparallel in-house operational and commercial expertise Proven ability to acquire and optimize thermal generation assets Contracted cash flow
Slide 23: Appendix
Appendix 23
Slide 24: Flexible Generation Project Portfolio Update
Flexible Generation Project Portfolio Update ~ 350 2025 – 2026 Completion Timeline MW Total net incremental 5 generation capacity Projects Alberta & Ontario 170 175 ~ ~ MW MW BESS capacity Uprate / expansion capacity 24
Slide 25: Genesee off-coal | Repowering complete
Genesee off-coal | Repowering complete Genesee Generating Station capacity MW Repowering positions CPX to succeed ~500 MW additional capacity 500 Generation capacity Future data ~1.9 GW center potential 1,400 Maximization of Most efficient asset life CCGT in Canada Legacy capacity Repowering Future
Slide 26: Renewables Project Portfolio Update
Renewables Project Portfolio Update 305 ~ 2025 – 2027 Completion Timeline MW Total net incremental 4 generation capacity Projects Alberta & North Carolina 125 180 ~ ~ MW MW Wind Capacity Solar Capacity 26
Slide 27: Year over year adjusted EBITDA reconciliation
Year over year adjusted EBITDA reconciliation ($M) 1,340-1,440 New assets: Full year La 1,310-1,410 Paloma and Harquahala, Halkirk 2, Ontario BESS, Alberta and California energy margin 2024 Revised Guidance New Assets Corporate AB / CA margin 2025 Guidance 27
Slide 28: Year over year AFFO reconciliation
Year over year AFFO reconciliation ($M) 850-950 Higher Adjusted EBITDA and lower current taxes 770-870 Increased interest expense and sustaining capital program 2024 Guidance Adjusted EBITDA Current tax Financing Sustaining CAPEX Other 2025 Guidance 28
Slide 29: Near-term Long-term dividend growth
5-Year historical dividend growth Historical We are committed ~7% growth CAGR to growing our Average payout ratio: 36%1 dividend per Continued dividend growth share, as we Near-term invest in growth 6% growth to 2025 Target payout ratio: 45-55% Long-term 2-4% growth beyond 2025 Target payout ratio:
Slide 30: Hummel Generating Station
High Quality Assets Hummel Generating Station 1,124 MW | Pennsylvania | 100% CPX ownership Large, new & efficient power generation in PJM MAAC Contribution to market and customer reliability • High historical capacity factor (~80%1), potential to increase over time • Low heat rate (6.8 mmbtu/MWh)
Slide 31: Rolling Hills Generating Station
High Quality Assets Rolling Hills Generating Station 1,023 MW | Ohio | 100% CPX ownership Combustion turbine peaking facility in PJM RTO Contribution to market and customer reliability • Flexible peaker, fast ramping capability • Elevated capacity factors given increasing PJM demand profiles St
Slide 32: CPX 2025 Guidance Summary
CPX 2025 Guidance Summary: Revised reporting structure Proportion of total net Net Capacity (GW) Generation (TWh) Capacity Factor Availability capacity U.S. Flexible Generation 4.0 41% 17 48% 90% Canada Flexible Generation 4.2 43% 16 47%1 92% U.S. Renewables 0.6 6% 2 43% 97% Canada Renewables2 0.8 9
Slide 33: Forward-looking information
Forward-looking information Forward-looking information or statements included in this presentation are provided to inform our shareholders and • the impact of climate change, including our assumptions relating to our identification of future risks and potential investors about management’s assessme
Slide 34: Investor Relations
Investor Relations Roy Arthur VP, Strategy, Planning, and Investor Relations 1-403-736-3315 | investor@capitalpower.com A white x on a yellow background capitalpower.com 34