Capital Power (CPX) Q3 2024 earnings summary

Executive summary

• Achieved record quarterly generation of 11 TWh in Q3 2024, driven by high dispatch and new U.S. asset acquisitions, with U.S. assets contributing over 50% of Q3 adjusted EBITDA and 54% of total generation.

• Advanced 10 growth projects totaling 1.1 GW, including Genesee Repowering Units 1 and 2, and entered the AESO queue for a ~1.5 GW data center at Genesee.

• Entered a three-year agreement with four First Nations for up to 25% equity in Halkirk 2 Wind, supporting reconciliation and profit-sharing.

• Announced a voluntary departure program to reduce Canada-based corporate workforce by at least 25% to support U.S. growth strategy.

• Acquired La Paloma (California) and Harquahala (Arizona) gas-fired facilities for $1.5 billion, boosting U.S. presence.

Financial highlights

• Q3 2024 adjusted EBITDA was $401 million, down $13 million year-over-year; AFFO was $315 million, up $19 million; net income was $178 million, down from $272 million.

• Revenues and other income for Q3 2024 were $1,030 million, up $82 million year-over-year; net cash flows from operating activities were $236 million, up $244 million year-over-year.

• For the nine months ending September 2024, adjusted EBITDA was $1,003 million (down $139 million year-over-year), and AFFO was $635 million (down $22 million year-over-year).

• Dividends per common share increased 6% to $0.6519 for Q3 2024.

Outlook and guidance

• 2024 AFFO guidance remains $770–$870 million; adjusted EBITDA guidance is $1,310–$1,410 million; sustaining CapEx tracking within $180–$200 million.

• Genesee Repower project expected to complete combined cycle commissioning in Q4 2024, with total project cost updated to $1.55–$1.65 billion.

• Dividend growth guidance of 6% through 2025, with a long-term target of 2–4% growth after 2025.

• No additional common share equity required in 2024 outside of the dividend reinvestment plan to fund current growth projects.