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Capital Power Corporation 10423 101 Street NW Suite 1200 Edmonton , AB T5H 0E9 For immediate release Capital Power ● RESPONSIBLE ENERGY FOR TOMORROW Capital Power reports strong second quarter results , increases its 2021 financial guidance , and announces a 6.8 % common share dividend increase ● July 30 , 2021 EDMONTON , Alberta - July 30 , 2021 - Capital Power Corporation ( TSX : CPX ) today released financial results for the quarter ended June 30 , 2021 . Highlights Generated net cash flows from operating activities of $ 129 million and adjusted funds from operations ( AFFO ) of $ 91 million in the second quarter of 2021 Generated net income of $ 17 million and adjusted EBITDA of $ 241 million in the second quarter of 2021 Increased 2021 financial guidance for adjusted EBITDA to $ 1,090 million to $ 1,140 million ( 2021 target and original guidance of $ 975 million to $ 1,025 million ) and AFFO to $ 570 million to $ 620 million ( 2021 target and original guidance of $ 500 million to $ 550 million ) Completed successful offering of common shares for total gross proceeds of $ 288 million Executed a US $ 150 million private placement of 12 - year senior notes Extended , amended and transitioned existing credit facilities into an inaugural $ 1 billion of Sustainability - linked credit facilities Increased the common share dividend by 6.8 % to $ 2.19 per year representing the eighth consecutive annual increase " Capital Power's financial results in the second quarter of 2021 exceeded management's expectations , " said Brian Vaasjo , President and CEO of Capital Power . " Financial results benefitted from higher Alberta power prices where our trading desk captured an average realized power price of $ 75 per megawatt hour in the second quarter . This was partially offset by major outages at the Arlington Valley and Decatur Energy facilities , a stronger Canadian dollar relative to the U.S. dollar and lower wind resource availability at most of our wind facilities . Based on the strong forecast for the remainder of the year driven by a positive outlook for Alberta power prices , we have increased our 2021 financial guidance with revised guidance ranges now exceeding the top end of our original targets . " " I am pleased to announce that the Board of Directors has approved a 6.8 % per common share dividend increase effective for the third quarter 2021 dividend payment , which is consistent with our 7 % annual dividend growth guidance for 2021 and 5 % for 2022 , " stated Mr. Vaasjo . " The annualized dividend of $ 2.19 per year is forecasted to be below our long - term AFFO payout ratio target of 45 % to 55 % in 2021. " " Debt and equity financing activities completed to date in 2021 were significant in reducing financing risk related to our growth initiatives , including 985 megawatts in advanced stages of development , " said Sandra Haskins , SVP Finance and CFO of Capital Power . " With the completion of the $ 288 million common share offering we do not expect additional equity offerings will be required to fund our current growth projects . The successful financings and confidence in our long - term outlook are supported by the recent affirmations of our investment grade credit ratings and stable outlook by our credit rating agencies , S & P and DBRS . " 1