Capital Power announces fourth quarter and year-end 2024 results

February 26, 2025

EDMONTON, Alberta – Capital Power Corporation (TSX: CPX) today released financial results for the quarter and year ended December 31, 2024.

Strategic highlights

• Achieved COD of Genesee Repowering project resulting in a reduction of ~3.4 million tonnes (MT) per annum¹ of CO₂ emissions (Scope 1) and increasing capacity by 512 megawatts (MW)
• Enhanced geographic diversification through successful execution of U.S. based acquisitions of La Paloma and Harquahala and advanced development of 3 U.S. solar projects
• Enhanced financial flexibility and crystallized returns on renewable assets through a sell-down transaction for $340 million of gross proceeds
• Successfully executed an equity financing for total gross proceeds of $460 million, including the exercise of the option
• Record generation of ~38 terawatt hours across the Company’s strategically positioned fleet
• Continued to advance five long-term fully contracted development projects in Ontario representing ~350 MW of incremental capacity

Financial highlights

• In the fourth quarter of 2024, generated:
  • Adjusted funds from operations (AFFO) of $182 million and net cash flow from operating activities of $438 million
  • Adjusted EBITDA of $330 million and net income of $242 million
• For full-year 2024, generated:
  • AFFO of $817 million and net cash flows from operating activities of $1,144 million
  • Adjusted EBITDA of $1,333 million and net income of $701 million

“In Q4 2024, we proudly completed our Genesee Repowering project, transitioning Capital Power and the Province of Alberta off coal. This project dramatically reduced our carbon emissions and added significant lower heat rate capacity – making our Genesee 1 and 2 Canada’s most efficient natural gas combined cycle units². In addition to growing our capacity in Alberta, we diversified our fleet through U.S. acquisitions while advancing development across our renewables and flexible generation assets in Canada and the U.S. We are set up for success, with a fleet of well-maintained and optimized assets and access to multiple sources of attractively priced capital. With our expanded North American presence, Capital Power is positioned to continue growing to meet this unprecedented era of energy expansion,” said Avik Dey, President and CEO of Capital Power.

“Our financial results continue to demonstrate the prudence of our strategy and focus on geographic diversification, pro-active risk management and long-term contractedness. These efforts stabilize our cash flows which, along with the dividend, offer a compelling total return. Our strong financial position means our 2025 capital spend, including the advancement of fully contracted projects and maintenance capital, is fully funded along with our dividend. This strong financial position is driven by our base cash flows that are almost entirely long-term contracted or hedged; our cash on hand derived from selling down renewable assets, and successfully executing our largest ever bought deal equity financing. This positions us better than ever to pursue acquisitions as part of our growth strategy while maintaining financial stability,” stated Sandra Haskins, SVP Finance and CFO of Capital Power.

1. Anticipated GHG emission reductions from Genesee Repowering project and transition off-coal compared to 2019 facility emissions.
2. Repowered Units 1 and 2 at Genesee Generating Station use Mitsubishi M501JAC turbines and Vogt heat recovery steam generators in combined cycle mode are the most efficient combined cycle units currently operating in Canada.

Operational and Financial Highlights¹

($ millions, except per share amounts)	Three months ended December 31		Year ended December 31
	2024	2023	2024	2023

($ millions, except per share amounts)	Three months ended December 31		Year ended December 31
	2024	2023	2024	2023
Electricity generation (Gigawatt hours)	9,408	8,692	37,821	32,487
Generation facility availability	89%	93%	92%	95%
Revenues and other income	853	984	3,776	4,282
Adjusted EBITDA 2	330	313	1,333	1,455
Net income 3	242	95	701	737
Net income attributable to shareholders of the Company	240	97	699	744
Basic earnings per share ($)	1.76	0.74	5.16	6.07
Diluted earnings per share ($)	1.75	0.74	5.15	6.04
Net cash flows from (used in) operating activities	438	(18)	1,144	822
Adjusted funds from operations 2	182	162	817	819
Adjusted funds from operations per share ($) 2	1.38	1.38	6.34	6.99
Purchase of property, plant and equipment and other assets, net	395	244	1,070	723
Dividends per common share, declared ($)	0.6519	0.6150	2.5338	2.3900

1. The operational and financial highlights in this press release should be read in conjunction with the Business Report and the audited consolidated financial statements for the year ended December 31, 2024.
2. Earnings before net finance expense, income tax expense, depreciation and amortization, impairments, foreign exchange gains or losses, finance expense and depreciation expense from joint venture interests, gains or losses on disposals and other transactions and unrealized changes in fair value of commodity derivatives and emissions credits and other items that are not reflective of the long-term performance of the Company’s underlying business (adjusted EBITDA) and AFFO are used as non-GAAP financial measures by the Company. The Company also uses AFFO per share which is a non-GAAP ratio. These measures and ratios do not have standardized meanings under GAAP and are, therefore, unlikely to be comparable to similar measures used by other enterprises. See Non-GAAP Financial Measures and Ratios.
3. Includes depreciation and amortization for the three months ended December 31, 2024 and 2023 of $137 million and $142 million, respectively, and for the year ended December 31, 2024 and 2023 of $503 million and $574 million, respectively. Budgeted depreciation and amortization for 2025 is $128 million per quarter.

Significant Events

Renewable power asset sell-down

On December 20, 2024, the Company closed its sale of 49% interests in the Quality Wind facility in British Columbia and the Port Dover and Nanticoke Wind facility in Ontario to Axium Infrastructure. Total pre-tax cash proceeds from the transaction are $333 million, inclusive of working capital. At December 31, 2024, transaction fees of $7 million have been recorded within trade and other payables.

The two wind facilities are fully contracted with investment grade counterparties and have a remaining weighted average contract life of ~11 years. Capital Power will continue to manage and operate the assets on behalf of the newly formed partnership under a long-term asset management agreement. Consistent with its strategy, the transaction represents the crystallization of a levered equity return in excess of Capital Power’s capital allocation thresholds and enhances its financial flexibility.

$460 million bought offering of common shares

On December 17, 2024, the Company completed a public offering of 7,820,000 common shares (inclusive of the full exercise of a 1,020,000 common shares over-allotment option), at an issue price of $58.80 per common share for total gross proceeds of approximately $460 million (the Offering) less issue costs of $19 million.

The Company intends to use the net proceeds from the Offering to fund future potential acquisitions and growth opportunities and for general corporate purposes.

Genesee is off coal and repowering achieves commercial operations

On June 18, 2024, the Company reached a significant milestone for the Genesee Repowering project with the announcement that the Genesee Generating Station is off coal and now 100% natural gas-fueled, resulting in the facility being off coal more than 5 years ahead of the Alberta government mandate.

On December 13, 2024, the Company announced that its Genesee Repowering project as Genesee Unit 2 achieved combined cycle commercial operations. This milestone marked a significant phase in the Genesee Repowering project resulting in Genesee Units 1 and 2 becoming Canada’s most efficient natural gas combined cycle facility³. The advancement of this project increases overall capacity at the Genesee Generating Station by 512 MW and reduces CO₂ emissions (Scope 1) by 3.4 MT annually⁴ – representing a ~60% increase in capacity while reducing emissions (Scope 1) by ~40%.

The approximately $1.5 billion project began construction in summer 2021 requiring more than 5.8 million hours of labour with a peak of ~1,250 workers on site. Located entirely within the footprint of the existing Genesee Generating Station, the project involved installing two new Mitsubishi M501JAC gas-fired combustion turbines and Vogt triple-pressure heat recovery steam generators, while utilizing the units’ existing steam turbine generators.

The Genesee Generating Station is now capable of delivering up to 1,857 MW of reliable, affordable and lower-carbon power for Alberta’s thriving economy. The significant baseload generation available on the 26,000+ acre site supports grid-wide reliability while presenting opportunities for future development, energizing the Alberta advantage for new technologies, industries and growth. With the project now complete, Capital Power will be referring to the Genesee Generating Station as a single facility in our portfolio (30 total facilities instead of 32 when counting all three units separately).

Refinancing of York Energy

On November 27, 2024, York Energy successfully refinanced and upsized its existing term loan for an additional approximately ten-year term maturing April 30, 2035. The $315 million term loan bears interest at a fixed rate of 5.34% and is repayable in quarterly installments. This refinancing creates interest savings of approximately 0.66% and extends the maturity to align with the power purchase agreements expiring in 2035.

Organizational review – voluntary departure program

On October 24, 2024, the Company announced the rollout of the voluntary departure program (VDP) and achieved a reduction in its Canada-based corporate employees of approximately 40% (165 positions). The VDP is the result of a strategic organizational review to optimize the organization to scale and grow efficiently, inclusive of decentralizing corporate functions, reducing headcount in certain areas and expanding in key growth areas.

In connection with the restructuring, the Company incurred a total cost of $49 million, which includes $10 million related to employee benefit costs that would have otherwise been incurred in future periods. The total restructuring costs are expected to be paid within the next six months as the employees participating in the VDP will depart the Company by June 2025.

3. Repowered Units 1 and 2 at Genesee Generating Station use Mitsubishi M501JAC turbines and Vogt heat recovery steam generators in combined cycle mode are the most efficient combined cycle units currently operating in Canada.
4. Anticipated GHG emission reductions from Genesee Repowering project and transition off-coal compared to 2019 facility emissions.

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