Capital Power Corporation

made a message advising you, your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Roy Arthur. Please go ahead, sir.

Good morning, everyone. My name is Roy Arthur, Vice President, Strategy, Planning, and Investor Relations at Capital Power. Thank you for joining us today to review our third quarter 2025 results, which we published earlier today. Our third quarter report and presentation for this conference call are available on our website. During today's call, our President and CEO, Abic 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 the financials for the company. Abic will then conclude the formal part of the presentation before we open the floor to questions from analysts in our interactive Q&A. Before we 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 our cautionary statement on forward-looking information on slide 3 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 are unlikely to be comparable to similar measures used in other enterprises. These measures are provided to complement the GAAP measures which are included in the analysis of the company's results from management's perspective. Reconciliations of these non-GAAP financial measures to their nearest GAAP measures can be found in our integrated annual report. We acknowledge that Capital Powers head office in Edmonton is located within the traditional and contemporary home of many Indigenous peoples of the Treaty 6 region and Métis homeland. We acknowledge the diverse Indigenous communities that are in these areas. Their presence continues to enrich the community and our lives as we learn more about the Indigenous history of the land on which we live and work. With that, I will hand it over to Avik.

Thank you, Roy. Good morning, everyone, and thank you for joining us. Before I begin, I'd like to thank and recognize our people who power our strategy forward and deliver on our growth and long-term resilience each and every quarter. The success we have achieved would not be possible without their efforts. I will also take a moment to acknowledge the upcoming retirement of Sandra Haskins, whose leadership and contributions have been instrumental to Capital Power's success. I'll share a few more words about Sandra at the end of today's presentation. With that, I will now review Capital Power's 2025 third quarter results. This quarter perfectly highlights our strategy in action, with execution and value creation on multiple fronts. including contracts for assets with terms to 2040 and beyond in Canada and the US, and more re-contracting opportunities in the near term. These efforts clearly demonstrate our ability to enhance contractedness across volume, price, and duration. This quarter, we have further strengthened our position as one of North America's leading independent power producers. Key highlights for the third quarter include advancing commercial optimization with the execution of a long-term contract with improved economics for Midland Cogeneration Venture. This extension enhances visibility of future cash flows and demonstrates our ability to unlock value for existing natural gas generation. Also, commissioning our first two Ontario battery storage projects at York and Gorway. adding 170 megawatts of capacity contracted through 2047. Delivered on time and under budget, these projects enhance our contractedness, portfolio diversification, and Ontario's grid reliability. With an excellent safety record after nearly 12 months of construction, these projects are a testament to our project execution capabilities. Continued construction of three solar projects in North Carolina, all on schedule and within budget, demonstrating our commitment to enhancing our renewables platform. The successful financial integration of our newly acquired PJM assets, Hummel Station and Rolling Hills, the largest acquisition in our history. These facilities performed above expectations in their first full quarter. contributing meaningfully to adjusted EBITDA and adding over 45 new employees and contractors to our legacy of operational expertise. And finally, we generated 13.4 terawatt hours across our portfolio and completed 65% of planned outage days for the year. As we talk through our accomplishments, a consistent theme emerges of long-term lower risk growth across our portfolio. And at the core, we have this compounding growth of energy expertise and knowledge from the people at Capital Power. Together, these achievements reinforce our team's ability to consistently deliver, diversify our portfolio, and execute with discipline to drive long-term shareholder value. In September 2025, we executed a new long-term contract with improved economic terms for Midland Cogeneration Venture. the largest natural gas-fired combined electric and steam generation facility in the U.S., extending the contract to 2040 and providing 10 years of incremental contracted revenue. Michigan is an attractive and growing market for electricity. This contract is an important milestone for capital power as it reinforces the critical role efficient natural gas assets like MCV play in maintaining grid reliability as power demand grows. Starting in June 2030, MTV will receive enhanced payments under a new PPA for 1240 megawatts, or approximately 75% of its capacity. This will provide long-term revenue stability and increase annual adjusted EBITDA by roughly US $100 million, an 85% increase over current contract pricing that the facility received today. When we talk about re-contracting our assets, we often talk about preserving optionality for other opportunities. We are excited to see one of those opportunities advancing with a signed letter of intent with a leading co-location data center developer for a potential 250 megawatt project, highlighting how our flexible generation platform can serve new load growth reliably and efficiently. This presents an opportunity to secure superior economics for uncontracted capacity and build a relationship with a leading co-location data center developer. The MCB recontracting and other near-term recontracting opportunities tell a very clear story that our strategy of commercial optimization is delivering. We can extend contracts, improve economics, and secure long-term visible cash flows across core markets, all without taking on new build risk. It's a disciplined way to create value while strengthening the reliability customers depend on, and it builds on the theme of long-term lower risk growth in years to come. This quarter, our battery energy storage project achieves commercial operations. We are proud to add the 120 megawatt York and 50 megawatt Gourmet Best project to the Ontario grid, strengthening reliability and adding a new technology to our asset base. Not only were these our first ever battery storage projects, but they were also delivered on time, under budget, and with an excellent safety record, a testament to our team's discipline and execution. Contracted through 2047, these facilities will add approximately $35 million in annual adjusted EBITDA over time. In addition to achieving operation of our best assets, we completed 70 megawatts of capacity upgrades at York and Galway with contracts to 2035. Through our various growth and recontracting efforts, this portfolio has extended its weighted average contract life from approximately five years to 11 years. Together, the Ontario projects demonstrate how our expertise in gas, renewables and storage comes together to deliver reliable, flexible power and long term value. Our disciplined approach is driving success across our North American platform. It's another example of long term, lower risk growth that we believe we can continue. In their first full quarter under capital power ownership, the Hummel and Rolling Hills facilities achieved financial integration and delivered a strong adjusted EBITDA contribution performing ahead of expectations with higher dispatch and strong pricing. The energy price outlook in PJM is strong and we continue to crystallize value for these assets using hedges with investment grade counterparties having put in place approximately nine gigawatts of hedges through 2027. We are also encouraged by continued strength in capacity pricing coming in at the cap of $3.29 per megawatt day for the 26-27 auction, approximately 20% higher than the 25-26 auction. The operation optimization and integration of Hummel and Rolling Hills demonstrate another clear example of our disciplined growth and ability to execute, and it's reflected in the strong financial results Sandra will walk you through next.