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EDMONTON, Alberta – Capital Power Corporation (TSX: CPX) today released financial results for the quarter ended March 31, 2025.

1. Pennsylvania-New Jersey-Maryland Interconnection.
2. Flexible generation is defined as natural gas generation assets and energy storage business.

“By adding the Hummel and Rolling Hills generating assets and expanding into PJM, we are driving long-term cash flow per share growth, superior diversification of our portfolio and enhanced our positioning for the future. Our existing assets continue to see strong generation driven by long-term fundamentals that underpin our strategy. This supports our thesis that natural gas-fired assets are critical to reliability, provide opportunity for growth and creation of shareholder value in various market conditions,” said Avik Dey, President and CEO of Capital Power.

“Our financial results and portfolio growth demonstrate the prudence of our strategy. We continue to grow our portfolio with a focus on geographic diversification, and pro-active risk management and maintenance of our investment grade credit rating. These efforts stabilize our cash flows through market cycles and, along with the dividend, continue to offer a compelling total return for our shareholders,” stated Sandra Haskins, SVP Finance and CFO of Capital Power.

Operational and Financial Highlights¹

($ millions, except per share amounts)	Three months ended March 31
	2025	2024
Electricity generation (Gigawatt hours)	9,555	8,809
Generation facility availability	90%	94%
Revenues and other income	$988	$1,119
Adjusted EBITDA 2	$367	$279
Net income 3	$150	$205
Net income attributable to shareholders of the Company	$151	$205
Basic earnings per share	$1.03	$1.58
Diluted earnings per share	$1.03	$1.57
Net cash flows from operating activities	$210	$334
AFFO 2	$218	$142
AFFO per share 2	$1.57	$1.15
Purchase of property, plant and equipment and other assets, net	$288	$218
Dividends per common share, declared	$0.6519	$0.6150

1. The operational and financial highlights in this press release should be read in conjunction with the Management’s Discussion and Analysis and the audited condensed interim financial statements for the three months ended March 31, 2025.
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 March 31, 2025 and 2024 of $126 million and $122 million, respectively. Forecasted depreciation and amortization for the remainder of 2025 is $129 million per quarter.

Subsequent Events

Acquisition of Hummel Station Intermediate Holdings III, LLC and Rolling Hills Generating Holdings, LLC

Consistent with the Company’s strategy to acquire flexible generation assets in the U.S, on April 14, 2025, Capital Power entered into a definitive agreement with Hummel Station Intermediate Holdings III, LLC and Rolling Hills Generating Holdings, LLC, each a subsidiary of LS Power Equity Advisors, LLC, to acquire 100% of the equity interests in:

1. Hummel Station, LLC, which owns the 1,124 MW Hummel Station, a combined-cycle natural gas facility in Shamokin Dam, Pennsylvania (Hummel Acquisition), and
2. Rolling Hills Generating, L.L.C., which owns the 1,023 MW Rolling Hills plant, a combustion turbine natural gas facility in Wilkesville, Ohio (Rolling Hills Acquisition and together with the Hummel Acquisition, the Acquisition).

The total purchase price of the Acquisition is expected to be approximately ~$3.0 billion (US $2.2 billion), subject to customary post-closing adjustments, including working capital and estimated transaction expenses. The Acquisition is expected to close in the third quarter of 2025, subject to regulatory approvals and other customary closing conditions.

Capital Power will finance the Acquisition using the net proceeds from its concurrent common share offering, outlined in further detail below, and a combination of some or all of the following (i) cash on hand from a prior equity issuance and asset divestitures; (ii) longer term debt financing; (iii) other immediately available funds, including potential draws under Capital Power’s existing credit facilities; and (iv) funding provided under Acquisition Term Loan Facilities, described in further detail below. This funding plan maintains Capital Power’s investment grade credit rating and preserves its strong balance sheet and financial flexibility.

Common share offering

On April 22, 2025, the Company completed a public offering of 11,902,500 common shares, which included 1,552,500 common shares issued pursuant to the full exercise of the over-allotment option, at $43.45 per common share (Offering Price) for total gross proceeds of approximately $517 million. The Company also issued 3,455,000 common shares at the Offering Price on a private placement basis, for gross proceeds of $150 million, subject to a statutory hold period of 4 months and one day from the closing date of the private placement.

Acquisition Term Loan Facilities

For purposes of financing the Acquisition, the Company entered into an agreement with a lender on April 14, 2025, whereby the lender has agreed to provide, on a fully underwritten basis, senior unsecured term loan facilities in the aggregate principal amount of up to $2 billion (Acquisition Term Loan Facilities). The Acquisition Term Loan Facilities are comprised of two tranches of $1 billion non-extendible, non-revolving, syndicated term credit facilities, with the first tranche maturing in 2028 and the second tranche maturing in 2027.

Non-GAAP Financial Measures and Ratios

Capital Power 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 our joint venture interests, gains or losses on disposals and other transactions and unrealized changes in fair value of commodity derivatives and emission credits (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.

Forward-looking Information

Forward-looking information or statements included in this press release are provided to inform the Company’s 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 press release 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 press release includes disclosures regarding (i) status of the Company’s 2025 AFFO and adjusted EBITDA guidance, (ii) forecasted 2025 depreciation, (iii) the timing of, funding of, generation capacity of, costs of technologies selected for, environmental benefits or commercial and partnership arrangements regarding existing, planned and potential development projects and acquisitions (including the Hummel and Rolling Hill Generating Stations acquisitions), transaction close timing and receipt of required regulatory approvals, and the satisfaction of other customary closing conditions and (iv) the financial impacts of the Hummel and Rolling Hill Generating Stations acquisitions.

These statements are based on certain assumptions and analyses made by the Company considering 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: (i) electricity, other energy and carbon prices, (ii) performance, (iii) business prospects (including potential re-contracting of facilities) and opportunities including expected growth and capital projects, (iv) status of and impact of policy, legislation and regulations and (v) effective tax rates.

Whether actual results, performance or achievements will conform to the Company’s 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 the Company’s expectations. Such material risks and uncertainties are: (i) changes in electricity, natural gas and carbon prices in markets in which the Company operates and the use of derivatives, (ii) regulatory and political environments including changes to environmental, climate, financial reporting, market structure and tax legislation, (iii) disruptions, or price volatility within our supply chains, (iv) generation facility availability, wind capacity factor and performance including maintenance expenditures, (v) ability to fund current and future capital and working capital needs, (vi) acquisitions and developments including timing and costs of regulatory approvals and construction, (vii) changes in the availability of fuel, (viii) ability to realize the anticipated benefits of acquisitions, (ix) limitations inherent in the Company’s review of acquired assets, (x) changes in general economic and competitive conditions and (xi) changes in the performance and cost of technologies and the development of new technologies, new energy efficient products, services and programs.

See Risks and Risk Management in the Company’s Integrated Annual Report for the year ended December 31, 2024, prepared as of February 25, 2025, 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 specified approval date. The Company 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 the Company’s expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.

Territorial Acknowledgement

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 region and Métis Nation of Alberta Region 4. We acknowledge the diverse Indigenous communities that are located in these areas and whose presence continues to enrich the community.

About Capital Power

Capital Power is a growth-oriented power producer with approximately 10 GW of power generation at 30 facilities across North America. We prioritize safely delivering reliable and affordable power communities can depend on, building lower-carbon power systems, and creating balanced solutions for our energy future. We are Powering Change by Changing Power^TM.

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Supporting Document

• Full 2025 Q1 Report