Slides
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Analyst Presentation | Q2 2026 Maximizing Value Through Commercial Optimization
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Capital Power | 2 Agenda Business Highlights Avik Dey Financial Review Kevin MacIntosh Closing Remarks Avik Dey Q&A Avik Dey President and Chief Executive Officer Kevin MacIntosh Senior Vice President, Finance and Chief Financial Officer
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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 (North America). We acknowledge the diverse Indigenous communities that are located in these areas and whose presence continues to enrich the community. Territorial Acknowledgement Capital Power | 3
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Capital Power | 4 Non-GAAP financial measures and ratios 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 equity-accounted investments, 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 specified 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 and further discussion of these items are disclosed in the Company’s MD&A prepared as of July 29, 2026, for the second quarter of 2026, under the “Non-GAAP Financial Measures and Ratios” section, which is incorporated by reference into this presentation and is available under the Company’s profile on SEDAR+ at sedarplus.ca and on the Company’s website at capitalpower.com. 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 in Capital Power Corporation's (Capital Power or the Company) second quarter Management’s Discussion and Analysis (MD&A) prepared as of July 29, 2026, 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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Capital Power | 5 Q2 Key Messages Significant Embedded Growth Potential Disciplined growth across multiple markets / technologies and ability to grow cash flow with limited capital Compelling risk adjusted returns balanced between cash flow growth and yield Alberta is Open for Business Alberta rapidly emerging as a leader in the data center space; commercial optimization reinforces Capital Power's superior positioning Total Balanced Return Profile
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Capital Power | 6 Q2 Highlights Operations • ~10 TWh of generation across our portfolio (up 12% Y/Y) • 60% of generation from U.S. portfolio (up 10% Y/Y) • 66% of total planned outage days completed OutputOutput Growth • 250 MW Energy Supply Agreement secured with Meta1 • 45 MW of uprates2 underway, with completion expected in 2026 • North Carolina Solar – advancing ~180 MW of additional capacity (2026 / 2027 COD) • East Windsor Expansion – advancing ~100 MW of additional capacity; commissioning underway Optimize Build 1. Subsequent event. ESA signed July 8, 2026. 2. Expected uprates at Arlington Valley and Hummel Station.
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Capital Power | 7 Optimizes merchant portfolio by adding contracted cash flow at compelling pricing Alberta Energy Supply Agreement Commercially Optimizing Our Strategically Positioned Portfolio 250 MW Capacity and energy, expected 2H 2028 >10 Years Long term duration agreement IG Counterparty – Meta Platforms Inc. AA-/Aa3 rated1 Strategic Benefits Preserves commercial optimization potential at Genesee No capital investment required Enhances portfolio weighted average contract life Key Contract Terms 1.Credit ratings based on S&P Global Rating and Moody’s Ratings, respectively.
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Capital Power | 8 Market Capacity Added Term 1. WECC assets include Arlington Valley 2.IESO assets include East Windsor, Goreway and York (including BESS). 3. Capacity presented on a gross basis; Capital Power owns 50% of MCV and York. 4. MISO assets include Midland Cogeneration. 5.Credit ratings based on Moody’s Ratings. 6. Refers to Consumers Energy Commercial Optimization Maximizing Value Per Unit of Capacity Through Long-Term Contracting Long-dated contracts with investment-grade counterparties support cash flow certainty and growth 2026 WECC1 600 MW 6 Years Utility Baa1 2022 2023 IESO2 1,685 MW3 8 Years IESO Aa3 2025 MISO4 1,240 MW3 10 Years Consumers6 A3 WECC1 600 MW 7 Years Utility Baa1 AESO 250 MW >10 years Meta Aa3Credit Rating5 Counterparty
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Capital Power | 9 Policy clarity and demand growth supports long-term contracting and pricing upside Favorable Market Dynamics Unlocking Value AESO 28% IESO 11% Other Can. 3% WECC 20% PJM 18% Other U.S. 10% MISO 9% 12 GW AESO Market tightening supports higher reliability value and recontracting / expansion potential Capacity pricing certainty to 2030, tight reserve margins driving superior energy pricing Tightening market fundamentals driving higher utilization PJM WECC IESO Capacity by Market
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Capital Power | 10 1. Refers to incremental EBITDA upside from a 2026 baseline for existing assets through pricing, commercialization and optimization initiatives, with limited or no incremental growth capital required. Amounts shown are illustrative for sensitivity purposes only and do not represent guidance. 2. Merchant range shows the impact of a spark spread lift for PJM assets (Rolling Hills and Hummel at 85% and 30% capacity factor, respectively). For Alberta, merchant upside potential shows the impact of incremental spark spread lift with 466MW of capacity (current MSSC limit) plus 65 - 100MW of additional capacity above the MSSC for Genesee 1 and 2 at 85% capacity factor. Incremental capacity at Genesee above the MSSC limit is subject to regulatory approval. 3.Contracted upside based on U.S. flexible generation assets with contracts expiring between 2029 and 2032; also includes uprates for various US natural gas sites including: Arlington Valley, Harquahala, La Paloma, and Rolling Hills. 4. EBITDA is a non-GAAP financial measure. See Non-GAAP Financial Measures and Ratios. Strong Fundamentals Driving Increase in Previously Identified Upside Contracted Incremental Annual EBITDA4 Opportunity Merchant $375 – 700 M 5 GW + $10-20 / MWh Incremental cash flow from merchant spark spreads and additional uncontracted volumes 2 Embedded Growth Opportunity1 3 GW + $75-125 / kW year Incremental contracted cash flow from existing assets and uprates Contracted ~$400 – 550 M 3 Opportunity 2025 Investor Day $1 B +$0.25 B 1.25B$
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Capital Power | 11 Reaffirming 2026 Guidance Ranges 1. AFFO and Adjusted EBITDA are Non-GAAP financial measures. See Non-GAAP Financial Measures and Ratios. $1,565 M – 1,765 M Adjusted EBITDA 1 AFFO 1 $890 M – 1,010 M $290 M – 330 M Sustaining CAPEX
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Capital Power | 12 2026 Financial Performance $328 M + $93 M YoY Adjusted EBITDA $351 M + $29 M YoY Revenues and other income $740 M + $299 M YoY Net cash flows from operating activities $214 M + $71 M YoY 1 1. AFFO and Adjusted EBITDA are Non-GAAP financial measures. See Non-GAAP Financial Measures and Ratios. 1 AFFO Q2 1 $482 M + $29 M YoY $755 M + $66 M YoY $1,945 M + $516 M YoY + $173 M YoY YTD $526 M
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Capital Power | 13 Growth Capital Investment (10 Yrs) Organic 40% M&A 60% Yield Dividend Per Share ($) 2% 2026 Dividend Increase 3 1.51 2.79 2016 2026E 1.Capital invested reflects Capital Power's working interest. 2. Spending reflects investments made from 2017 through 2026. 2026 spending includes announced uprates and organic growth projects; no future M&A assumed. 3. Announced concurrent with Q2/26 . 12B Invested since 2017 1,2 A Balanced Formula Organic Growth, Disciplined M&A and a Growing Dividend $ ~6% Historical CAGR
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Capital Power | 14 Our 2030 Targets 1 1. 2026 base year for growth outlook through 2030. 2. AFFO per share is a Non-GAAP ratio. See Non-GAAP Financial Measures and Ratios. 2 Cash Flow 8-10% AFFO / Share Growth CAGR Additional owned U.S. capacity of 3.5 GWU.S. Growth 50%~ Balanced returns from dividend yield and base business growth Annual TSR 13-15%
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Capital Power | 15 Questions & Answers Capital Power | 15
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Capital Power | 16 Capital Power | 16 Appendix
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Capital Power | 17 Net Capacity (GW) Proportion of total net capacity Generation (TWh) Capacity Factor Availability U.S. Flexible Generation 6.2 51% 27.6 51% 92% Canada Flexible Generation 4.4 36% 18.0 53% 92% U.S. Renewables 0.6 5% 2.2 39% 96% Canada Renewables 0.9 8% 2.7 35% 97% Total 12.1 100% 50.5 CPX 2026 Guidance Details
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Capital Power | 18 PJM and Alberta Portfolio Hedge Position 1. 2026 positions represent active hedges from Q3 2026 through year-end 2026. 2. Alberta is denoted in CA$ and PJM in US$. 3. Volume: Natural Gas for Alberta is denoted in terajoule and PJM in MMBtu 4. Pricing: Alberta is denoted in CA$/GJ and PJM in US$/MMBtu. Portfolio Hedged Volumes (June 30, 2026) Alberta PJM 20261 2027 2028 20261 2027 2028 Hedged Power (GWh) 6,500 9,500 5,500 5,000 9,500 5,500 Weighted Average Price ($/MWh) 2 Low-$70s High-$60s Low-$70s High-$40s High-$40s High-$40s Hedged Natural Gas 3 45,000 65,000 40,000 45,000 75,000 45,000 Weighted Average Price 4 >$3 <$4 >$3 >$3 <$3 >$3 2026 2027 2028 Power AESO (C$/MWh) $42.88 $46.56 $62.94 PJM AEP (US$/MWh) $58.38 $55.73 $55.64 PJM PPL (US$/MWh) $56.32 $50.28 $51.63 Natural Gas AECO (C$/GJ) $1.82 $2.28 $2.57 Henry Hub (US$/MMBtu) $3.38 $3.46 $3.67 Transco Leidy (US$/MMBtu) $2.58 $2.83 $3.03 Tetco ELA (US$/MMBtu) $3.12 $3.30 $3.52 Forward Market Pricing (June 30, 2026)
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Capital Power | 19 Capital Power | 19 Detailed Results by Facility Q2 2026 Click to download Results by Facility
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Capital Power | 20 Forward-looking information Forward-looking information or statements (collectively, forward-looking information) included in this presentation are provided to inform our shareholders, potential investors and other stakeholders about management’s assessment of Capital Power’s future plans and operations. This forward-looking information may not be appropriate for other purposes. The forward-looking information in this presentation 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 includes, among other things, expectations regarding: • our priorities and long-term strategies, including our strategy of diversification, acquiring and optimizing existing natural gas capacity, contracting and re-contracting our existing assets, and advancing strategic renewables development, • growth opportunities among natural gas, renewables and storage technologies, • our 2030 targets, including cash flow, U.S. growth, and total shareholder return, • our 2026 guidance ranges, including sustaining capital expenditures, as well as AFFO and adjusted EBITDA, • future revenues, expenses, earnings, adjusted EBITDA and AFFO, • the outcomes resulting from the Energy Supply Agreement with Meta ("ESA"), • PJM and Alberta’s portfolio position, including portfolio hedged volumes and forward market pricing, • the future pricing of electricity and market fundamentals in existing and target markets, and • various aspects around existing, planned and potential development projects and acquisitions (including Arlington Valley, Hummel, North Carolina Solar, and East Windsor Expansion), including expectations around timing and completion. These statements are based on certain assumptions and analyses made by the Company in light of its experience and perception of historical and future 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 this forward-looking information relate to: • electricity and other energy (including natural gas) and carbon prices, • the Company's performance, • the Company's business prospects (including potential re-contracting of facilities) and opportunities including expected growth and capital projects, • the energy needs of certain jurisdictions, • 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 Outlook and Risks and Risk Management sections of the 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 include: • 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, • Meta’s completion of a data center as contemplated in the ESA, • 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 market prices and 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 • the risks and uncertainties discussed under the Risks and Risk Management section of the MD&A. See Risks and Risk Management in our 2025 Integrated Annual Report for the year ended December 31, 2025 for further discussion of these and other risks. Readers are cautioned not to place undue reliance on any such forward-looking information, which speak only as of the date made and that other events or circumstances, although not listed above, could cause Capital Power’s actual results to differ materially from those estimated or projected and expressed in, or implied by the forward-looking information. Capital Power does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking information 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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Capital Power | 21 Noreen Farrell Director, Investor Relations Investor Relations TSX: CPX 1-403-461-5236 investor@capitalpower.com capitalpower.com