Capital Power Corporation · TSX:CPX
Capital Power — Investor Presentation (February 2025)
31 slides from Capital Power's investor presentation, February 2025
Slide 1: Powering the North American energy expansion
Reliable Affordable Clean Powering the North American energy expansion February 2025 Investor Presentation
Slide 2: 5th largest North American natural gas IPP
Unmatched in-house operational expertise Large and diversified generation footprint 14 Owned natural ~10 GW gas facilities 5th largest Total owned capacity, ~85% natural gas North American natural gas IPP Strong balance sheet and liquidity Proven ability to acquire and optimize BBB-/BBB (low) Sound
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 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 6: Multiple sources of growth driving power demand
US Power Demand CAGR (%)(1) 0.9% 2.9% ~70% 0.6% Multiple sources of growth driving 0.8% 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 peaking capacity • Efficient power production and Natural Gas decarbonization potential (CCS, hydrogen etc.) Provid
Slide 9: Strategically positioned existing capacity available for data center
Capacity Available at Genesee ~1.5+ GW Strategically positioned natural gas + CCS opportunity existing capacity available for data center contracting over the Additional Capacity(1) next five years 2025 - 2027 2028+(2) 1.6 GW 4.7 GW natural gas natural gas 1. Includes flexible generation sites with
Slide 10: Superior data center value proposition; speed to market with confidence
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 Dedicated and highly trained
Slide 11: Capital Power Update
Reliable Affordable Clean Capital Power Update Positioned to succeed amid energy expansion 11
Slide 12: Shareholder value creation priorities
Shareholder value creation priorities Flexible Generation and Renewables Contract Optimize Acquire Develop Optimization & Expand Targeted Annual TSR of 12-14%
Slide 13: There is a strong case for re-contracting our existing flexible generation
Contract optimization: CPX U.S. flexible generation capacity factor1 There is a strong case for re-contracting our 60% existing flexible generation 50% 53% assets 45% 40% 37% 31% 30% 20% 10% 0% 2021 2022 2023 2024 YTD 1. Historical capacity factors have been re-baselined to include U.S. acquisitions
Slide 14: Building fleetwide efficiencies through optimization and expansion
York(1) and Goreway Uprates ~60MW ~$14M 3 & 6 year Optimize & Expand Capacity Annual EBITDA Contract Building fleetwide Added Benefit Extensions efficiencies through optimization and Decatur CT Uprate expansion ~90MW ~$8M 10 year Capacity Annual EBITDA Contract Added Benefit Extension 1. Reflects CP
Slide 15: Compelling US M&A value proposition
Natural Gas Generation(1) Large and fragmented market ~3,000 ~900 GW Facilities Capacity Acquire Compelling Owners motivated >2/3(2) US M&A value to monetize US natural gas capacity acquired by financial buyers proposition Lower cost ~20 – 50%(3) with certainty Lower cost than build ($/kW) 1. SNL (S
Slide 16: Material renewables growth with future sell-down potential
CPX Renewables Capacity (MW) 620 Develop Material renewables Remaining 320 solar panels(1) growth with future 1,500 sell-down potential Operating renewables Under construction Potential development Renewable assets: 13 operating, 4 under construction 1. Solar panels remaining for deployment, pursuan
Slide 17: Stable and contracted EBITDA with potential for growth
Stable and contracted EBITDA with potential for growth ($M) 1,340-1,440 1,265-1,315 Base Enhanced Total Capacity and tolling contracts Less than 1-year hedges and Energy margin contracts optimization of non-baseload Long term hedges facilities 17
Slide 18: 2025 Guidance Summary
2025 Guidance Summary ($M) Adjusted EBITDA AFFO Sustaining Capex 1,340-1,440 1,310-1,410 195-225 850-950 180-200 770-870 2024 Revised Guidance 2025 Guidance 2024 Guidance 2025 Guidance 2024 Guidance 2025 Guidance 18
Slide 19: 2025: Fully Funded | Strong Liquidity | Ready to Grow
2025: Fully Funded | 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 19
Slide 20: CPX: Largely insulated from potential tariffs
CPX: Largely insulated from potential tariffs Limited direct impacts from tariffs: Marginal exposure to cross-border commodity sales for RECs and electricity Limited near-term supply chain impacts to our projects in development Local fuel procurement and energy sales insulate our business from poten
Slide 21: 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 22: Appendix I: Power Industry Fundamentals
Reliable Affordable Clean Appendix I Power Industry Fundamentals 22
Slide 23: 2025 – 2026 Completion Timeline
Flexible Generation Project Portfolio Update ~ 850 2025 – 2026 Completion Timeline MW 6 Total net incremental generation capacity Projects Alberta & Ontario 170 500 175 ~ ~ ~ MW MW MW BESS capacity Repower capacity Uprate / expansion capacity 23
Slide 24: 2025 – 2027 Completion Timeline
Renewables Project Portfolio Update 305 ~ 2025 – 2027 Completion Timeline MW 4 Total net incremental generation capacity Projects Alberta & North Carolina 125 180 ~ ~ MW MW Wind Capacity Solar Capacity 24
Slide 25: 2024: Renewable sell-down
2024: Renewable sell-down | Optimizing our portfolio and crystalizing returns Asset Rotation Crystalized 49% sell-down of Proceeds returns ownership interest $333 M1 Proceeds received Two Canadian exceeded targeted wind facilities returns for renewables Renewable sell-down aligns with our portfolio
Slide 26: 2024: Genesee off-coal | Repowering complete
2024: Genesee off-coal | Repowering complete Genesee Generating Station capacity MW Repowering positions CPX to succeed ~500 MW additional capacity 500 Generation capacity Future data ~1.9 GW center potential 1,400 Maximization of Most efficient asset life CCGT in Canada Legacy capacity Repowering F
Slide 27: Year over year adjusted EBITDA reconciliation ($M)
Year over year adjusted EBITDA reconciliation ($M) 1,340-1,440 New assets: Full year La 1,310-1,410 Paloma and Harquahala, Halkirk 2, Ontario BESS, Alberta and California energy margin 2024 Revised Guidance New Assets Corporate AB / CA margin 2025 Guidance 27
Slide 28: Year over year AFFO reconciliation ($M)
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: 5-Year historical dividend growth
5-Year historical dividend growth We are committed ~7% growth CAGR Historical to growing our Average payout ratio: 36%1 dividend per Continued dividend growth share, as we invest in growth Near-term 6% growth to 2025 Target payout ratio: 45-55% Long-term 2-4% growth beyond 2025 Target payout ratio:
Slide 30: 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 31: Investor Relations
Investor Relations Roy Arthur VP, Investor Relations 1-403-736-3315 | investor@capitalpower.com capitalpower.com 31
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