Capital Power Corporation

Hello, and welcome to Capital Power Second Quarter 2026 Analyst Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask the 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. I would now like to hand the conference over to Roy Arthur. Sir, you may begin.

Good morning, everyone. My name is Roy Arthur, Vice President, Investor Relations and Investment Partnerships. Thank you for joining us to review Capital Power's second quarter 2026 results, which we published earlier today. The report and the presentation for this call are available on our website. Before we begin, allow me to describe how we will spend our time on today's call. Our President and Chief Executive Officer, Avik Dey, will walk through our business highlights including recent commercial optimization efforts and why we remain excited about the future of our business. Following that, our Senior Vice President, Finance and Chief Financial Officer, Kevin MacIntosh, will highlight our growing confidence in the upside embedded in our business in addition to reviewing the quarterly results. Avik will then provide concluding remarks before we open the floor to analyst questions. Now that I've described the agenda for the call, allow me to address a couple housekeeping items before handing it over to Avik. First, we acknowledge that Capitol Power's 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 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. I'd like to remind everyone that today's discussion includes forward-looking information and references to non-GAAP financial measures and ratios. Please refer to pages 4 and 22 of the presentation for the applicable disclosures. With that, I'll turn it over to Avik.

Thanks, Roy. Before we begin, I just wanted to acknowledge and thank the number of investors, customers, partners, and community leaders that joined us at the Calgary Stampede this year in July in our home province of Alberta. The Stampede this year welcomed more than 1.4 million visitors. And in particular this year, it was incredibly exciting to see how much energy there was around all the great things happening in Alberta and Canada, exemplified by the number of announcements that were made. And it just continues to excite us what the business outlook for the province and Canada is. And secondly, I just wanted to take a moment also to recognize my 800 colleagues across North America who work tirelessly to deliver reliable and affordable electricity and be active stakeholders in the communities in which we operate. None of our success could happen without their contributions. Our second quarter results reflect a business that is capturing demand. and delivering on the opportunity in front of us. There are three key takeaways we'd like to leave you with today. First, as I mentioned before, Alberta is open for business. Policy clarity is improving confidence, attracting investment and positioning Alberta as a leader among North American data center markets. New customers combined with growing demand from Alberta's established industries means the province will need significantly more reliable power in the years ahead. Our recently announced energy supply agreement is tangible evidence of our differentiated approach and action, taking capacity already embedded in our portfolio and converting it into durable long-term contracted cash flows. Second, our business has significant embedded growth potential. Our large and diverse portfolio offers a number of opportunities to create incremental value from a merchant and contracted perspective. Our confidence in being able to optimize around our business continues to increase as we execute on our strategy and we are pleased to be providing an update on this today. Third, our returns remain balanced. We continue to target compelling risk adjusted returns combining meaningful cash flow growth with an attractive and growing dividend. Turning to our Q2 highlights, you will see how we continue to execute through contracting, optimization, and discipline capital allocation, translating opportunity into results. Turning the page, we continue to progress our 2026 priorities. These include optimization and renewable growth. while maintaining a disciplined focus on long-term value maximization. Our second quarter highlights included securing a 250 megawatt long-term energy supply agreement with Meta, a premier hyperscale customer subsequent to quarter end. Next, advancing capacity up rates across our WEC and PJM portfolios. adding approximately 45 megawatts of incremental capacity in 2026 and a further 25 megawatts in 2027. Executing on our growth projects with North Carolina Solar under construction in East Windsor nearing completion with commissioning now underway. Generating 10.1 terawatt hours across the portfolio up 12% year over year with 60% coming from our US fleet. Reinforcing once again the success of our diversification strategy. And lastly, advancing our 2026 maintenance cycle with 66% of planned outage days now complete, strengthening the reliability and efficiency of our fleet. Our progress reflects the strength of our people and the culture we've built. One that values ownership, collaboration, and disciplined decision-making. By bringing together expertise from across the org, We identify opportunities that create value for our customers and shareholders. The agreement to provide power to Meta is a recent example of that capability at work. Our recently executed energy supply agreement in Alberta demonstrates our ability to unlock value through commercial optimization with investment grade counterparties. Under the agreement, we will provide 250 megawatts of capacity and energy. expected to commence in the second half of 2028 over a term of more than 10 years. Strategically, this transaction does several important things. It converts existing merchant power generation into stable long duration contracted cash flows and it does so with no capital investment. Additionally, The agreement is at the portfolio level and does not encumber any of our assets. This preserves our commercial optimization upside at Genesee, our flagship facility, where we see significant opportunities ahead. In Alberta, we continue to see strong demand from data centers and other large customers seeking reliable power, providing more opportunities to generate incremental value from our existing fleet. This is a significant milestone and reflects a broader trend across our fleet as we continue to secure attractive contracts and enhance the value of our capacity. Recent contracting activity across Alberta, WECC and MISO highlights the strong positioning of our fleet. Over the past five years, we have consistently captured value through strategic re-contracting across our portfolio. These efforts have enhanced cash flow visibility while generating attractive risk-adjusted returns. We continue to use replacement cost economics as an important benchmark in our negotiating to ensure we are appropriately compensated for the value and reliability our assets provide. We continue to see meaningful opportunities to maximize value per kilowatt through disciplined contracting and commercial optimization. Beyond the value we are creating through contracting, we're encouraged by the opportunities across our markets where strong fundamentals support both development and merchant upside. We operate across multiple power markets, each with its own drivers of value. Throughout our footprint, policy clarity, tightening supply-demand fundamentals, and increasing reliability needs are creating opportunities to contract existing capacity at attractive prices and unlock additional value from our portfolio. These dynamics support both commercial optimization today and future growth opportunities across our fleet. We also benefit from diversification across technologies with natural gas, renewables, and storage, allowing us to meet a wide range of customer and market needs. Taken together, our portfolio gives us the flexibility to allocate capital where opportunities are most attractive, reduce reliance on any single market, and continue creating value across a range of market environments. With that, I'm pleased to turn it over to Kevin, who will take you through our financial results and highlight how the opportunities we've discussed are increasingly reflected in the value we're creating across our business.