Capital Power Corporation · TSX:CPX
Capital Power — Q3 2020 Earnings Presentation
16 slides from Capital Power's earnings presentation, Nov 2, 2020
Slide 1: Q3/20 Analyst Conference Call
Q3/20 Analyst Conference Call Nov 2, 2020 Brian Vaasjo, President & CEO Sandra Haskins, SVP Finance & CFO 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
Non-GAAP financial measures 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 and unrealiz
Slide 4: Q3/20 highlights
Q3/20 highlights Strong operating performance and financial results in COVID-19 environment – results meeting management expectations No change in our 2020 outlook – reaffirming our financial guidance provided at Investor Day in Dec/19 Growth strategy – continued progress on renewables and sustain
Slide 5: 10-year tolling agreement extension for Decatur Energy
10-year tolling agreement extension for Decatur Energy Provides immediate benefits on current agreement 10-year tolling agreement extension through to Dec 2032 with current counterparty Since 2017, combustion turbines (CT) have been upgraded to increase capacity, improve heat rate and fuel effic
Slide 6: Growth in renewables
Growth in renewables 3 new solar development projects in North Carolina Executed 20-year PPAs with Duke Energy Carolinas for Hornet Solar, Hunter’s Cove Solar, and Bear Branch Solar totaling 160 MW Construction to begin late 2021 / early 2022 with estimated capital cost of $260M with COD in Q4/2
Slide 7: Financial performance – Q3/20
Financial performance – Q3/20 $M, except per share amounts Q3/20 Q3/19 Change Revenues and other income $453 $517 (12%) Adjusted EBITDA $284 $284 - Basic earnings (loss) per share $0.89 ($2.25) 140% Replace Image Normalized EPS $0.66 $0.60 10% Net cash flows from operating activities $258 $209 23% A
Slide 8: Financial performance – Q3/20 YTD
Financial performance – Q3/20 YTD Q3/20 Q3/19 $M, except per share amounts Change YTD YTD Revenues and other income $1,421 $1,280 11% Adjusted EBITDA $735 $677 9% Basic earnings (loss) per share $0.87 ($0.90) 197% Normalized EPS $1.09 $1.05 4% Net cash flows from operating activities $452 $519 (13%)
Slide 9: Solid financial results
Solid financial results Realized power prices continue to exceed spot power prices Captured realized price of $59MWh in Q3/20 compared to average AB spot price of Portfolio optimization Q3/20 Q3/19 $44/MWh Lower spot price in Q3/20 reflected lower Average AB spot price $44/MWh $47/MWh market dem
Slide 10: Alberta power market – COVID-19 impact
Alberta power market – COVID-19 impact (1) Based on actual 30-day rolling averages, largest year-over-year decline in power demand was 7.2% due to COVID-19 pandemic and low crude World Health oil prices Organization declares COVID-19 Demand started to recover a pandemic in June as the economy re
Slide 11: Portfolio optimization
Portfolio optimization Alberta commercial portfolio positions 2021 2022 2023 % sold forward(1) 13% 18% 12% Contracted prices(1) ($/MWh) High-$50 Low-$50 Low-$50 Current average forward prices(2) ($/MWh) $55 $53 $51 Substantially all of baseload generation hedged for the remainder of 2020 Low hed
Slide 12: Six renewable projects announced in 2020 adding 355 MWs
Six renewable projects announced in 2020 adding 355 MWs Facility Type Capacity Location Capital Cost COD (MW) ($M) Buckthorn Wind Acquisition 100.5 Texas $187 Acquired Apr/20 Whitla Wind 3 Build 54 Alberta $92 Q4/21 Strathmore Solar Build 40.5 Alberta ~$53 Early 2022 Hornet Solar Build 75 North Caro
Slide 13: 2020 annual targets
2020 annual targets(1) Target Q3/20 YTD Forecast Facility availability 93% 94% Modestly exceed target Sustaining capex ($M) $90 to $100 $50 Below target Adjusted EBITDA ($M) $935 to $985 $735 Above mid-point of range AFFO ($M) $500 to $550 $436 Near mid-point of range excluding impact from L
Slide 14: Questions?
Capital¢S pital RESPONSIBLE ENERGY FOR TOMORROW Questions?
Slide 15: Forward-looking information
Forward-looking information The material factors and assumptions used to develop these forward-looking statements relate to: Forward-looking information or statements included in this presentation are provided to inform the Company’s shareholders and potential investors about management’s assessment
Slide 16: Investor Relations
Q1/20 Analyst Conference Call [Insert picture of Cardinal Point or Buckthorn for title page; other visual images in presentation to be added] Investor Relations Randy Mah 10423 101 Street NW Director, Investor Relations 11th Floor (780) 392-5305 Edmonton, Alberta rmah@capitalpower.com Canada T5H 0E9