Capital Power Corporation

Good day, and thank you for standing by. Welcome to Capital Powers' fourth quarter and year-end 2025 results conference call. At this time, all participants are in a listen-only mode. After this speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising 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 first speaker today, Roy Arthur at Capital Power. You may begin.

Good morning, everyone. My name is Roy Arthur, Vice President, Investor Relations and Investment Partnerships. Thank you for joining us today to review Capital Power's fourth quarter and year-end 2025 results, which we published earlier today. Our integrated annual 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, Scott Manson, our interim CFO, will present a review of the quarter and our year-end financials for the company. Avik will then conclude the formal part of the presentation before we open the floor to questions from analysts in our interactive Q&A. In the spirit of reconciliation, Capital Power respectively acknowledges that we operate within the ancestral homelands, traditional and treaty territories of the indigenous people of Turtle Island or North America. We acknowledge the diverse Indigenous communities located in these areas and whose presence continues to enrich the community. 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 the cautionary statement on forward-looking information or are regulatory filings on CDAR+. In today's discussion, we will be referring to various non-GAAP financial measures and ratios also noted on the same slide. These measures are not defined financial measures according to GAAP and do not have standardized meaning prescribed by GAAP and therefore are unlikely to be comparable to other similar measures used in other enterprises. These measures are provided to complement the GAAP measures that are included in the analysis of the company's results from management's perspective. The reconciliations of these non-GAAP measures to their nearest GAAP measures can be found in our integrated annual report. With that, I will hand it over to Avik.

Thank you, Roy. Good morning, everyone, and thank you for joining us. Relentless execution is core to who we are. It's what sets the capital power team apart and underpins our ability to deliver on our strategic priorities with excellence. As we did in 2025, and sets us up for continued success in 2026 and beyond. With precision and passion, our team has executed on our strategic priorities. We have acquired 2.2 gigawatts of generation capacity through our PGM acquisition. We've optimized contracts across 2 gigawatts of contracted capacity, upgraded and expanded 385 megawatts across our fleet. extending asset life and maximizing value, and advanced or completed 300 megawatts of new capacity growing our renewable power portfolio. Acquire, optimize, develop. These are the pathways by which we create value. Our strategy is straightforward, but how we execute is our competitive advantage. 2025 was an exceptional year for capital power. Our results perfectly highlight our strategy in action. Deliberate growth and durable performance driving superior returns. In addition to the strategic wins I just highlighted, our operations team also delivered with excellence in 2025. Specifically, we generated a record 45 terawatt hours of power across our portfolio, with 52% of total generation coming from our US portfolio. underscoring the successful strategic diversification of our generation portfolio. These achievements are driven by our people, the dedicated experts, innovators, and professionals who are passionately powering North America 24-7, 365. Our 2025 performance demonstrates our team's ability to consistently deliver, diversify our portfolio, and relentlessly execute to drive long-term shareholder value. At our 2025 Investor Day, we outlined our disciplined approach to value creation through growth and clearly defined optimization pathways. When we acquire assets, we take a strategic approach to value creation. We systematically add value through three optimization pathways. First, we focus on operating and optimizing the assets themselves, driving reliability, availability, and performance across the fleet. Second, we enhance value commercially through contracting and hedging using our market expertise to improve cash flow, visibility, and risk-adjusted returns. And third, we create value at the enterprise level leveraging our differentiated funding model to lower our cost of capital and improve overall returns. Together, these three pillars enable us to consistently unlock value beyond the initial acquisition, positioning us to meet or exceed our return targets of 13 to 15 percent. Our 2025 performance is a clear example of this strategy in action. As we look to build on our performance in 2026, our approach to growth through acquisitions remains purpose-driven. We acquire assets in high-demand markets that enhance our strategic position and diversify our portfolio. Why does that matter? By buying the right assets, we are increasing our scale, allowing us to optimize a large, complementary, flexible generation fleet, diversifying our footprint, increasing our exposure to multifaceted demand growth across North America, And finally, enhancing fleet efficiency, lowering the age and heat rates of our assets positions us to create value on a merchant basis and for long-term contracts. The operation, optimization, and integration of our PJM assets demonstrate another clear example of our discipline growth and ability to execute. In the first two quarters under capital power ownership, the Hummel and Rolling Hills facilities delivered strong adjusted EBITDA contribution, performing ahead of expectations with higher dispatch and strong pricing. That transaction increased diversification of our cash flows and lowered market-specific risk, with no single market representing more than 30% of our total flexible generation capacity. At the fleet level, we continue to apply our industry-leading expertise to optimize our assets. Asset optimization is core to Capital Power's DNA. We deliberately acquire assets with strong optimization potential and apply disciplined operating maintenance and risk management practices to deliver reliable megawatts and enhanced value. We have added or are in the process of adding 385 megawatts to our fleet from asset optimization, 170 megawatts through our two battery energy storage facilities in Ontario. 110 megawatts in capacity upgrades across three facilities, York, Gorway, and Arlington Valley. And advanced 105 megawatts in expansion capacity at East Windsor. As we continue to grow through acquisition, this sets us apart from other buyers in the market, enabling us to identify and deliver values others cannot. It's our competitive advantage compared to other IPPs. The returns associated with optimizing existing capacity are strong and reinforce our focus on existing generation as a way to address society's need for more power. At a portfolio level, our approach to commercial optimization is fundamental to driving incremental value. We have been very deliberate in constructing a portfolio of assets in regions with strong supply-demand fundamentals. In the regions where we operate, we see customers looking to contract supply much earlier than in the past, owing to growing demand. These discussions are anchored in cost of replacement rather than recovery of costs as they have been in the past. As a result, Capital Power's contracted portfolio is poised to see significant growth in contracted EBITDA through recontracting, enhancing margins, reducing volatility, and improving returns for longer duration. Our new contract for MCB announced last fall is a prime example of the strategy in action. Extending to 2040, this new long-term contract provided 10 years of incremental contracted cash flow. The contract is expected to generate a full year increase in adjusted EBITDA for the facility of approximately $100 million annually, representing an 85% increase over current contract pricing for the whole facility. To kick off 2026, we also completed the recontracting of Arlington Valley. The extension of the summer tolling agreement through 2038 secures 13 years of contracted revenue, includes a 35 megawatt upgrade, and resets pricing at 140% above the existing contract, positioning us for continued growth and value creation in the U.S. Southwest. Commercial optimization is about maximizing the value of our capacity with a continued focus on contracting longer duration at better pricing. Our North American portfolio includes 12 gigawatts of total capacity with 4.8 gigawatts long-term contracted between 2032 and 2047. 2.4 gigawatts medium-term contracts expiring in the 26 to 31 window. and 4.8 gigawatts of merchant, primarily in Alberta and PJM. Looking forward, our focus is the merchant and medium-term portfolio, where we can extend duration when pricing is attractive. As always, we will continue to hedge our merchant generation to manage risk near-term, but preserve the ability to realize long-term upside. I'll now hand it over to Scott to discuss enterprise optimization and financial performance. Thanks, Avik.