Capital Power Corporation

Thank you for standing by and welcome to the Capital Power Corporation's first quarter 2025 analyst conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you'll need to press star 11 on your telephone. If your question has been answered and you'd like to remove yourself from the queue, simply press star 11 again. As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, President, Strategic Planning, and Investor Relations.

Please go ahead, sir. Good morning, everyone. My name is Roy Arthur, Vice President, Strategy Planning and Investor Relations. Thank you for joining us to Appleview Power's first quarter 2025 results, which we published earlier today. Our first quarter report and presentation for this conference call are available on our website. During today's call, our President and CEO, Avik Day, will provide an update on our business. Following that, Sandra Haskins, Our SVP, finance and CFO will present a review of the quarter and financials for the company. AVEC will wrap up with a review of our 2025 strategic priorities after which we will open the floor to questions from analysts in our interactive Q&A session. Before I start, I would like to remind everyone that certain statements about future events made on the call are forward looking in nature and are based on certain assumptions and analysis made by the company. Actual results could differ materially from the company's expectations due to various risks and uncertainties associated with our business. Please refer to the cautionary statement on forward-looking information on slide three of our regulatory filings available on CDAR. In today's discussion, we will be referring to various non-GAAP financial measures and ratios, also noted on slide three. These measures are not defined financial measures according to GAAP and do not have standardized meanings prescribed by GAAP. and therefore unlikely to be comparable to similar measures used in other enterprises. These measures are provided to complement the gap measures, which are provided in the analysis of the company's results from management's perspective. Reconciliations of these non-gap financial measures to their nearest gap measures can be found in our integrated annual report. We acknowledge that capital powers Our office in Edmonton is located within the traditional and contemporary home of many Indigenous peoples of Treaty 6 Region and the Métis Nation of Alberta Region 4. We acknowledge the diverse Indigenous communities that are in these areas and whose presence continues to enrich the community and our lives as we learn more about the Indigenous history of the lands on which we live and work. With that, I will hand it over to Abik.

Thanks, Roy. Good morning, everyone, and thank you for joining us today. In the first quarter of 2025, we created value and delivered on our strategy on multiple fronts. We delivered 9.6 terawatt hours of reliable power across our strategically positioned portfolio with strong contributions from all four of our revised segments, which we will describe in more detail later in the presentation. We continue to deliver operational excellence by optimizing and maintaining our assets completing 43% of our scheduled outage days for the year. After the end of the quarter, we announced the largest acquisition in our company's history and entered North America's most meaningful and liquid power market, PJM. We're delivering balanced energy solutions for our customers while advancing development projects and new opportunities, including data centers in Canada and the US and exploring small modular reactors in Alberta. In summary, we continue to make tangible progress in delivering on our strategy. Our business remains resilient and continues to offer compelling risk adjusted return potential. Amid considerable market turmoil, we have continued to invest in natural gas. Why? The answer is simple. The demand growth potential we see is insensitive to economic and other forms of disruption. Over the past 25 years, U.S. natural gas power generation has grown at a 5% compound annual growth rate, far outpacing the total power generation and real U.S. GDP. During this time, the U.S. experienced three recessions and significant renewables growth. Despite these events, natural gas has continued to grow and since 2015 has been the number one source of U.S. power generation with no real competition for this title. Looking forward, we remain encouraged by the long-term fundamentals that underpin the need for natural gas fired power generation. Just as the broader natural gas thematic is resilient, so is our business. We procure our feedstock and monetize our power domestically in both Canada and the US. Our strategically positioned assets are in regions with strong fundamentals. and disproportionate C&I demands. Our cash flows are highly contracted with high quality counterparties with over 90% of our PPAs with A-rated entities. In summary, our business is largely insulated from tariffs and other macro impacts. This was demonstrated this quarter when we grew our portfolio and delivered strong results during a period of extreme uncertainty. One notable growth area highlighting the need for natural gas power is data centers. In Alberta and beyond, our proactive engagement seeks to achieve mutually beneficial outcomes. In Alberta, we've completed and continue to pursue proactive and extensive engagement with the ISO to understand their concerns and communicate the needs of our target market of off-takers. Simultaneously, we are working with potential commercial counterparties and have conducted detailed engineering to understand the key parameters for a co-located data center at the Genesee site. Regarding our broader U.S. portfolio, we are evaluating a wide variety of potential site configurations and commercial constructs. With the addition of assets and PGM, we will have greater than two gigawatts of incremental capacity available to be contracted. The data center opportunity remains robust for our business. As part of our growth and evolution, we are revising the way we report on our business. Going forward, we intend to disclose in four segments, US flexible generation, Canada flexible generation, US renewables, and Canada renewables. As we continue to grow and diversify, we believe that these categories better capture the composition of our business and how we manage it internally. Let's zoom in on our flexible generation segments, key pillars of our significant value creation. Starting with Canada, our strong flexible generation portfolio is seeing growth and improvement across multiple areas. We've added capacity through repowering and have five ongoing optimization projects in Ontario. These efforts increase scale and efficiency across this segment lowering the portfolio's average age and lengthening its weighted average contract life. Exemplifying the strategic positioning of these assets is the recent performance of Gorway. This facility had a record quarterly capacity factor, providing reliability for the Ontario grid during major outages at a large nuclear facility in the region. We expect the combination of nuclear outages and growing demand to drive strong utilization of this facility and our other assets in the province for years to come. Turning to the U.S., we are using our strategic and highly accretive acquisition to drive value. Our U.S. portfolio is growing in scale efficiency and lowering its age after adding these two new assets in PJM, Rolling Hills and Hummel. Similar to our Canadian flexible generation assets, strong demand in our key markets continues to drive elevated capacity factors, with Arlington Valley and MCV seeing record quarterly capacity factors in the past 12 months. Focusing in on the quarter, we saw a significant year-over-year increase in generation at Decatur, driven by nuclear outages in the area. Decatur's high availability during the quarter allowed the plant to fully capture the upside from the TVA dispatch. These portfolio improvements and overall asset performance reflect our shareholder value creation priorities in action and highlight the benefits they create. The addition of Hummel and Rolling Hills to our portfolio also increases diversification of cash flows and lowers market-specific risks, with no single market representing more than 30% of our total pro forma capacity of 11.8 gigawatts once the transaction closes. In addition, this transaction diversifies our merchant generation capacity outside of Alberta and creates additional opportunities to contract with commercial counterparties and access new demand centers. I'll now pass it to Sandra.