Slides
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Q3 2025 | Analyst Presentation Natural Gas Drives Reliability, Growth and Shareholder Value
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Sandra Haskins SVP, Finance & Chief Financial Officer Avik Dey President & CEO 2 Agenda Q3 2025 | Analyst presentation 1. Business Highlights | Avik Dey - President & CEO 2. Financial Review | Sandra Haskins - SVP, Finance & CFO 3. Closing Remarks | Avik Dey - President & CEO 4. Q&A | Management
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3 3 Non-GAAP financial measures and ratios Certain information in this presentation and responses to questions contain forward-looking information. Actual results could differ materially from conclusions, forecasts or projections in the forward-looking information as a result of certain material factors or assumptions that were applied in drawing conclusions or making forecasts or projections as reflected in the forward-looking information. Additional information about the material factors and risks that could cause actual results to differ materially from the conclusions, forecasts or projections in the forward-looking information and the material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information are disclosed on slide 21 of this presentation and the Company’s second quarter Management’s Discussion and Analysis (MD&A) prepared as of October 29, 2025 which is available under the Company’s profile on SEDAR+ at sedarplus.ca and on the Company’s website at capitalpower.com Forward-looking information Cautionary statement Capital Power uses (i) earnings before, income tax expense, depreciation and amortization, net finance expense, foreign exchange gains or losses, gains or losses on disposals and other transactions, unrealized changes in fair value of commodity derivatives and emission credits, other expenses from our joint venture interests, acquisition and integration costs, and other items that are not reflective of the Company’s facility operating performance (adjusted EBITDA), and (ii) AFFO as specified financial measures. Adjusted EBITDA and AFFO are both non-GAAP financial measures. Capital Power also uses AFFO per share as a performance measure. This measure is a non-GAAP ratio determined by applying AFFO to the weighted average number of common shares used in the calculation of basic and diluted earnings per share. These terms are not defined financial measures according to GAAP and do not have standardized meanings prescribed by GAAP and, therefore, are unlikely to be comparable to similar measures used by other enterprises. These measures should not be considered alternatives to net income, net income attributable to shareholders of Capital Power, net cash flows from operating activities or other measures of financial performance calculated in accordance with GAAP. Rather, these measures are provided to complement GAAP measures in the analysis of our results of operations from management’s perspective. Reconciliations of these non-GAAP financial measures are disclosed in the Company’s Management’s Discussion and Analysis (MD&A) prepared as of October 29, 2025, for the third quarter of 2025, which is available under the Company’s profile on SEDAR+ at sedarplus.ca and on the Company’s website at capitalpower.com.
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4 Learn more about Indigenous Relations at Capital Power. In the spirit of reconciliation, Capital Power respectfully acknowledges that we operate within the ancestral homelands, traditional and treaty territories of the Indigenous Peoples of Turtle Island, or North America. Capital Power’s head office is located within the traditional and contemporary home of many Indigenous Peoples of the Treaty 6 Territory and Métis homeland. We acknowledge the diverse Indigenous communities that are located in these areas and whose presence continues to enrich the community. Territorial acknowledgement
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5 • 13.4 TWh of generation across our portfolio • Completed 65% of planned outage days Q3 2025 Highlights: Multiple contracts to 2040 and beyond Q3 2025 generation 13.4 ~ TWh BESS capacity commissioned Contracted to 2047 ~ 170 MW 1. Jointly owned with 50% working interest with Manulife Investment Management. 1.2 GW is gross capacity recontracted to 2040. 2. York BESS: 120 MW. Goreway BESS: 50 MW Optimize: • Execution of a long-term contract with improved economics for Midland Cogeneration Venture (MCV) through to 2040 • Commissioned two Ontario Battery Energy Storage Systems (BESS) contracted to 2047; advanced ~100MW of incremental flexible generation in Ontario Build: • Ongoing construction of three solar projects in North Carolina Buy: • Financial integration of PJM assets completed Growth Operations Recontracted to 2040 ~ 1.2 GW 2 1
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6 Commercial Optimization at MCV Increased duration and superior economics Contract optimization Recontract at MCV Improved economics US$100mm1 annual adjusted EBITDA increase Contracted capacity 1,240 MW 1 Counterparty Consumers Energy | IG-Rated Utility Expiration 2040 10-Year extension Data Center - Letter of Intent Capacity 250 MW Expiration Up to 2040 Counterparty Leading colocation datacenter developer 1.Jointly owned with 50% working interest with Manulife Investment Management. Based on 2030 contract pricing
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7 0 2 4 6 8 10 12 2024 2026 Ontario Growth Projects Enhancing capacity, contractedness and adding battery technology ~5 years ~11 years WACL 1.2 GW 1.4 GW 1. Weighted average contract life of Ontario flexible generation portfolio. 2 Capacity Uprates 170 MW | 2047 expiry ~$35M annual adjusted EBITDA 70MW | 2035 expiry ~$12M annual adjusted EBITDA Battery Energy Storage Systems Capacity Ontario flexible generation weighted average contract life Optimize, expand and develop Contract Extension 1.2GW | 2035-2040 expiry Extension of legacy contracts
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8 10% 20% 30% 40% 50% 60% 70% 80% 90% Hummel Rolling Hills5 year historical average Q3 2025 capacity factor PJM assets: Strong first full quarter Higher dispatch and energy margin Generation & energy Crystalizing value 8% 8% Q3 2025 generation Hedging and capacity • ~9 GW hedged through 2027 • All investment grade counterparties Hummel and Rolling Hills capacity factor Acquire Strong capacity pricing 1. US$329/MW-day for 2026-2027, US$269/MW-day for 2025-2026. • US$329/MW-day, up ~20% 1 • Above historical levels, strong demand Energy margin • xxx
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9 9 month Financial Performance Revenues and other income1 Adjusted EBITDA AFFO Net cash flows from operating activities $1,084 M $477 M $369 M $404 M $2,768 M $1,166 M $882 M $757 M Q3 2025 Financial Performance +$54 M YoY + $76 M YoY + $199 M YoY +$168 M YoY +$240 M YoY + $153 M YoY +$262 M YoY +$51 M YoY 1. Before unrealized changes in fair value of commodity derivatives & emission credits. Q3 Financial Performance Newly acquired assets driving growth
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10 $30 $40 $50 $60 $70 $80 $90 $100 2024 2025 2026 2027 2028 2029 2030 2031 Alberta Outage Update Sustaining capital schedule positions portfolio to better capture rising prices AB forward prices imply ~90% increase in spark spreads (2026 to 2028) Alberta Pool Price ($/MWh) Forwards Historical 1. Monthly average pool price settles January – September 2025. Forecast data October – December 2025 2. Based on forwards for October 30, 2025, and using an illustrative 8.0mmbtu/MWh heat rate Ensures reliability and positions the portfolio for stronger market fundamentals ( 2027+ ) Current outage schedule 2 Elevated maintenance window
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11 9-months 2025 Revised 2025 Guidance9-month 2025 Revised 2025 Guidance9-month 2025 Revised 2025 Guidance 2025 Guidance Summary Sustaining Capex ($M) 134 YTD Adjusted EBITDA ($M) AFFO ($M) 882 YTD 1,166YTD 1,500 -1,650 950-1,100 215-245 Reaffirming 2025 guidance ranges
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12 We have successfully executed our 2025 priorities 1. 40MW Goreway uprate, 19MW CPX share of York 2.. 50MW Goreway BESS, 120MW York BESS. 3. 73MW Maple Leaf, 35MW Bear Branch and 75 MW Hornet Creating shareholder value on multiple fronts Recontract Optimize & Expand Acquire Develop ~1.2GW | 2040 expiry ~60 MW | 100 MW Completed Advancing ~2.2 GW ~170 MW | ~180 MW BESS Solar 1 2 3 Projects Uprates / Expansion PJM market entry Midland Cogeneration Venture
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13 Congratulations
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14 December 9 | Goreway Power Station Tour December 10 | Presentations and Q&A Investor Day 2025 Toronto - Ontario
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15 15 Questions & Answers
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16 16 Appendix
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17 17 CPX 2025 Guidance Summary Revised guidance for PJM acquisition Net Capacity (GW) Proportion of total net capacity Generation (TWh) Capacity Factor Availability U.S. Flexible Generation 6.2 53% 17 48% 90% Canada Flexible Generation 4.2 35% 16 47% 92% U.S. Renewables 0.6 5% 2 43% 97% Canada Renewables2 0.8 7% 3 36% 97% Total 11.8 100% 38
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18 18 Alberta portfolio position Power 2026 2027 2028 Hedged volume (GW) 12,000 6,500 3,000 Weighted average price (CAD $/MWh) Low-$70s Mid-$70s High-$70s Market price Forward Alberta pool price (CAD $/MWh) $51.00 $61.00 $78.00 Natural Gas 2026 2027 2028 Hedged volume (TJ) 70,000 55,000 30,000 Weighted average price (CAD $/MWh) <$4 <$4 <$4 Market price Forward Alberta natural gas price (CAD $/MWh) $2.80 $3.10 $3.00
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19 19 PJM portfolio position Power 2026 2027 2028 Hedged volume (GW) 9,500 9,000 5,500 Weighted average price (USD $/MWh) High-$40s High-$40s High-$40s Market price PJM AEP (USD $/MWh) 49 50 50 PJM PPL(USD $/MWh) 45 46 46 Natural Gas 2026 2027 2028 Hedged volume (TJ) 75,000 70,000 45,000 Weighted average price (USD $/MWh) <$4 <$4 <$4 Market price Transco Leidy (USD $/MWh) $3.10 $3.20 $3.10 Tetco ELA (USD $/MWh) $3.73 $3.80 $3.70
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20 20 Forward-looking information Forward-looking information or statements included in this MD&A are provided to inform our shareholders and potential investors about management’s assessment of Capital Power’s future plans and operations. This information may not be appropriate for other purposes. The forward-looking information in this MD&A is generally identified by words such as will, anticipate, believe, plan, intend, target, and expect or similar words that suggest future outcomes. Material forward-looking information in this presentation consists of forward-looking statements including, but not limited to, statements regarding: • our 2025 performance targets, including sustaining capital expenditures, adjusted funds from operations (AFFO) and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), • future revenues, expenses, earnings, adjusted EBITDA and AFFO, • the future pricing of electricity and market fundamentals in existing and target markets, • our future cash requirements including interest and principal repayments, capital expenditures, dividends and distributions, • our sources of funding, adequacy and availability of committed bank credit facilities and future borrowings, various aspects around existing, planned and potential development projects and acquisitions. This includes expectations around timing, transaction close timing and receipt of required regulatory approvals, and the satisfaction of other customary closing conditions, funding, project and acquisition costs, generation capacity, costs of technologies selected, environmental and sustainability benefits, and commercial and partnership arrangements, • our 2025 estimated capital expenditures for previously announced growth projects, • the performance of future projects and the performance of such projects in comparison to the market, • plans and results related to the acquisition of Hummel Station, LLC (Hummel Station) and Rolling Hills Generating, L.L.C. (Rolling Hills), • the return to operation of the downed unit at the Rolling Hills facility, • anticipated pricing trends, growth opportunities, market conditions, and future power demand in the Pennsylvania- New Jersey-Maryland (PJM) market, • legislative developments regarding carbon pricing in Pennsylvania and Ohio, • future growth and emerging opportunities in our target markets, • market and regulation designs and regulatory and legislative proposals and changes, regulatory updates and the impact thereof on the Company’s core markets and business, and • the impact of climate change, including our assumptions relating to our identification of future risks and opportunities from climate change, our plans to mitigate transition and physical climate risks, and opportunities resulting from those risks. These statements are based on certain assumptions and analyses made by the Company in light of its experience and perception of historical trends, current conditions, expected future developments, and other factors it believes are appropriate including its review of purchased businesses and assets. The material factors and assumptions used to develop these forward-looking statements relate to: • electricity and other energy and carbon prices, • performance, • business prospects (including potential re-contracting of facilities) and opportunities including expected growth and capital projects, • the status and impact of policy, legislation and regulations, • effective tax rates, • the development and performance of technology, • the outcome of claims and disputes, • foreign exchange rates, and • other matters discussed under the Performance Overview, Outlook and Risks and Risk Management sections of this MD&A. • Whether actual results, performance or achievements will conform to our expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results and experience to differ materially from our expectations. Such material risks and uncertainties are: • changes in electricity, natural gas and carbon prices in markets in which we operate and the use of derivatives, • regulatory and political environments including changes to environmental, climate, financial reporting, market structure and tax legislation, • disruptions, or price volatility within our supply chains, • generation facility availability, wind capacity factor and performance including maintenance expenditures, • ability to fund current and future capital and working capital needs, • acquisitions and developments including timing and costs of regulatory approvals and construction, • changes in the availability of fuel, • ability to realize the anticipated benefits of acquisitions, • limitations inherent in our review of acquired assets, • changes in general economic and competitive conditions, including inflation and recession, • changes in the performance and cost of technologies and the development of new technologies, new energy efficient products, services and programs, and • risks and uncertainties discussed under the Risks and Risk Management section of this MD&A. • See Risks and Risk Management in our 2024 Integrated Annual Report, for further discussion of these and other risks. • Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Capital Power does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.
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21 21 Investor Relations Roy Arthur VP, Strategy, Planning, and Investor Relations 1-403-736-3315 | investor@capitalpower.com capitalpower.com