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 EDMONTON, Alberta – Capital Power Corporation (TSX: CPX) today released financial results for the quarter ended September 30, 2026.

1. AFFO and adjusted EBITDA are non-GAAP financial measures. See Non-GAAP Financial Measures and Ratios.

CEO Message

Our third-quarter results reflect the continued execution of our strategy and the value of our diversified portfolio, with strong contributions from our Alberta, PJM and Ontario assets. Our portfolio pairs stable contracted cash flows with exposure to markets where growing electricity demand and tightening supply are creating meaningful upside.

Approximately 75% of our expected 2026 adjusted EBITDA is underpinned by long-term contracts. Indicative of our strategy of working with high-quality counterparties, 100% of our power purchase agreements are held with investment grade counterparties and over 70% are utilities or system operators. Our Energy Supply Agreement with Meta is the latest example of these efforts to secure longer-term cash flows across our core markets. Over the past 18 months, we have delivered on ~2 GW of contracted capacity with a weighted average contract life of approximately 15 years.

With a strong balance sheet and disciplined capital allocation, we are also evaluating opportunities to extract additional value from our existing sites through uprates, expansions and co-located battery storage. These opportunities support our focus on growth and shareholder returns. The 2% annual dividend increase announced in the second quarter marks the 13th consecutive year of increase.

Revised 2026 Annual Guidance

Priority	2026 targets	Status at September 30, 2026
Generate financial stability and strength	AFFO 3 of $890 million to $1,010 million	$788 million ‎1
	Adjusted EBITDA 3 of $1,565 million to $1,765 million	$1,308 million ‎1
Execution of major turnarounds	Sustaining capital expenditures 4
	Revised target: $350 million to $370 million Original target: $290 million to $330 million	$270 million ‎1,‎2
Portfolio optimization	Re-contract/contract natural gas generation Maximize facility asset life and value	In July, the Company entered into a long-term ESA with Meta for 250 MW of capacity and energy in support of a data centre in Alberta. In Q1 2026, the Company extended its summer tolling agreement for Arlington Valley from 2031 to October 2038. As part of this agreement, the facility will undergo a 35 MW capacity uprate. Discussions with counterparties to supply energy solutions from across our fleet are in progress.
Expand flexible generation portfolio	Continue construction on Ontario growth and commercial initiative projects Continue to explore opportunities to build or acquire natural gas generation facilities	Construction is underway and the projects are progressing to meet their targeted completion dates. Subsequent to the quarter, the 100MW expansion at East Windsor received approval to operate in the Ontario market.
Grow renewables portfolio	Continue construction of North Carolina growth projects Continue to explore opportunities to build or acquire renewables facilities	Construction for the North Carolina solar projects continued into 2026. Commissioning activities for Hornet and Bear Branch Solar are progressing towards a Q4 2026 completion.
Advance balanced energy solutions such as low-carbon solutions	Evaluate SMRs in Alberta Continue to explore opportunities to co-locate with data centres across North America	Pre-feasibility study work for the Alberta SMR project with Ontario Power Generation remains on track, and we continue to evaluate the development opportunity through this project. We remain in various stages of discussion with several prospective customers about the potential to co-locate or otherwise serve data centre demand at our sites across North America.

1. For the nine months ended September 30, 2026.
2. Net of partner contributions of $10 million and including our share of equity-accounted investments sustaining capital expenditures of $38 million.
3. AFFO and adjusted EBITDA are non-GAAP financial measures. See Non-GAAP Financial Measures and Ratios.
4. The Company revised its guidance range for 2026 sustaining capital expenditures reflecting unplanned outage work, primarily for the U.S. flexible generation fleet, and the advancement of a planned outage from 2027 into the fourth quarter of 2026 to ensure high reliability through 2027. The increase is event-driven, and a significant portion relates to insurable events. Insurance recoveries anticipated in 2026 and 2027, together with concessions from original equipment manufacturers (OEMs), are expected to meaningfully offset the cash impact.

Operational and Financial Highlights¹

($ millions, except per share amounts)	Three months ended September 30,		Nine months ended September 30,
	2026	2025	2026	2025
Electricity generation (Gigawatt hours) 2	14,485	13,374	36,090	31,951
Generation facility availability (%) 3	93	93	91	92
Revenues and other income	831	1,213	2,776	2,642
Net income	67	153	39	172
Net income attributable to shareholders of the Company	67	154	38	173
Basic earnings per share ($)	0.37	0.94	0.09	1.02
Diluted earnings per share ($) ‎4	0.37	0.94	0.09	1.01
Adjusted EBITDA ‎5	553	477	1,308	1,166
AFFO ‎5	306	369	788	822
AFFO per share ($) ‎5	1.94	2.37	5.03	5.53
Net cash flows from operating activities	381	404	907	757
Purchase of property, plant and equipment and other assets, net	167	147	642	576
Dividends per common share, declared ($)	0.7048	0.6910	2.0868	1.9948

1. The operational and financial highlights in this press release should be read in conjunction with the Management’s Discussion and Analysis (MD&A) and the unaudited condensed interim financial statements for the nine months ended September 30, 2026.
2. Gigawatt hours (GWh) of electricity generation reflects the Company’s share of facility output and includes GWh discharged from BESS.
3. Facility availability represents the percentage of time in the period that the facility was available to generate power regardless of whether it was running and therefore is reduced by planned and unplanned outages.
4. Diluted earnings per share was calculated after giving effect to outstanding share purchase options.
5. The consolidated financial highlights, except for adjusted EBITDA, AFFO and AFFO per share were prepared in accordance with GAAP. See Non-GAAP Financial Measures and Ratios.

Revenues and other income decreased quarter-over-quarter due to unfavourable changes in unrealized fair value on commodity derivatives and emission credits, primarily in the U.S. flexible generation segment. Excluding these non-cash fair value changes, revenues and other income increased, driven by higher contributions from the U.S. flexible generation segment, where stronger PJM pricing and summer demand at Hummel Station and Rolling Hills and higher contracted revenues at Arlington Valley more than offset less favourable hedge settlements at La Paloma.

Adjusted EBITDA increased quarter-over-quarter primarily due to:

• higher contributions from the Hummel Station and Rolling Hills facilities acquired in June 2025, reflecting stronger PJM power prices and summer demand in the third quarter and a full nine months of operations in 2026,
• higher results in the Canada flexible generation segment, as favourable portfolio optimization, higher generation and pricing at Goreway, and contributions from the Ontario BESS projects that commenced operations in September 2025 more than offset the impact of lower Alberta spot power prices and lower generation,
• partially offset by a lower contribution from La Paloma, where the financial hedges entered into following its acquisition settled less favourably than in 2025.

AFFO was $306 million and $788 million for the three and nine months ended September 30, 2026, respectively, compared with $369 million and $822 million in the corresponding periods in 2025. Despite higher adjusted EBITDA, as described above, AFFO for both the quarter and year-to-date periods was impacted by the following:

• higher sustaining capital expenditures, primarily reflecting the heavy maintenance schedule for the Alberta fleet, rotor replacements at Rolling Hills and Harquahala, and a full year of planned maintenance at Hummel Station and Rolling Hills,
• higher net finance expense,
• current income tax expense of $35 million and $65 million for the three and nine months ended September 30, 2026, respectively, compared with income tax recoveries of $16 million and $72 million in the corresponding periods of 2025, reflecting higher taxable income due to lower tax depreciation, and
• the non-cash straight-line recognition of capacity payments under the Arlington Valley summer tolling agreement, which contributed favourably to adjusted EBITDA, and which did not affect AFFO,
• the year-to-date impacts were partially offset by the recognition of $174 million in Clean Technology ITCs for eligible Canadian renewables projects in the second quarter of 2026.

Non-GAAP Financial Measures and Ratios

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) adjusted funds from operations (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 (collectively, “forward-looking information”) included in this press release are provided to inform our shareholders, potential investors and other stakeholders 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, among other things, expectations regarding:

• our 2026 adjusted EBITDA and revised sustaining capital expenditures targets, and
• recoverability of insurance proceeds for submitted claims.

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 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:

• Meta’s completion of a data centre as contemplated in the ESA,
• 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 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
• 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 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.

About Capital Power

Capital Power is one of North America’s leading independent power producers, with approximately 12 GW of generation capacity across 35 facilities. Our portfolio includes natural gas, renewables, and battery energy storage solutions. We deliver power generation at utility-scale through a flexible and resilient fleet built to meet growing electricity demand. Backed by an investment-grade credit rating, we provide safe, reliable power communities can depend on.

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Supporting Document

• Full 2026 Q3 Report