Mr. Katherine Perron reports

CAPITAL POWER 2025 INVESTOR DAY: ACCELERATING GROWTH TO 2030

Capital Power Corp. is hosting its 2025 investor day today in Toronto. The event will highlight the company's strategic priorities, 2030 growth targets and 2026 guidance, underscoring Capital Power's position as a top-tier North American power producer serving the continent's growing electricity demand with reliable, efficient natural gas generation.

2025 investor day highlights

2030 targets:

• 50-per-cent cumulative increase in U.S. capacity (or approximately 3.5 gigawatts);
• 13- to 15-per-cent annual total shareholder return (TSR);
• 8- to 10-per-cent annual adjusted funds from operations per-share growth maintain;
• 2- to 4-per-cent annual dividend growth target.

Strategic agreements:

• A memorandum of understanding (MOU) with funds managed by affiliates of Apollo Global Management (New York Stock Exchange: APO) to form a $3-billion (U.S.) partnership to pursue the acquisition of merchant natural gas assets across the U.S.
• A binding MOU to negotiate an electricity supply agreement (ESA) in Alberta with an investment-grade data centre developer, strengthening Capital Power's role in powering the province's growing AI infrastructure.

"We have a long-standing track record of delivering industry leading returns from natural-gas-fuelled power generation assets, and an ability to acquire and optimize assets better than any other North American independent power producer," said Avik Dey, president and chief executive officer of Capital Power. "Now more than ever, we see an opportunity to grow our business as a result of structural growth in power demand driven by the AI infrastructure boom and the growing need for reliable and affordable energy.

"Our planned investment partnership with Apollo Funds would accelerate our efforts to deliver long-term reliable growth to our shareholders by augmenting our industry-leading growth platform and enhancing our access to capital," Mr. Dey added.

Strategic partnership accelerating growth

Capital Power has entered into an MOU with Apollo Funds to form an investment partnership to pursue the acquisition of merchant U.S. natural gas generation assets, with total potential committed equity of up to $3-billion (U.S.). The partnership combines Apollo Funds' capital strength with Capital Power's operating and commercial expertise to accelerate Capital Power's U.S. natural gas growth strategy and expand earnings.

• The MOU contemplates an equity commitment of up to $2.25-billion (U.S.) from Apollo Funds and $750-million (U.S.) from Capital Power, with Capital Power electing a 25-per-cent to 50-per-cent working interest in each acquisition.
• The MOU contemplates a partnership with Capital Power operating acquired assets and receiving management and performance fees.
• Capital Power will create additional value by leveraging its operating platform to enhance asset performance and improve returns.

Powering AI in Alberta

Additionally, the company entered into a binding MOU with an investment-grade data centre developer for a 250 MW ESA. The long-term ESA (10-plus years) has an anticipated start date in 2028 and would be backed by Capital Power's Alberta-based power generation portfolio. If a final agreement between the parties cannot be reached, a termination fee will be paid to Capital Power.

2026 financial guidance

Capital Power's 2026 financial guidance -- ranging across adjusted EBITDA (earnings before interest, taxes, depreciation and amortization), AFFO and sustaining capital -- underscores the company's commitment to disciplined execution, capital allocation and reliable long-term growth. Two thousand twenty-six guidance reflects full-year contribution from the recently acquired assets in PJM and reinforces the company's dedication to investing in its assets as they progress through their life cycle. The enhanced sustaining capital investment is a critical step in extending asset life and positioning the portfolio for commercial maximization opportunities. These guidance ranges reflect continued confidence in the company's business strategy and its ability to generate outsized returns.

• Adjusted EBITDA: $1,565-million to $1,765-million;
• AFFO: $890-million to $1,010-million;
• Sustaining capital: $290-million to $330-million;
• Dividend growth target: 2 per cent.

The 2026 targets and forecasts are based on numerous assumptions, including power and natural gas price forecasts. They do not include the effects of asset sell-downs, potential future acquisitions or development activities, or potential market and operational impacts relating to unplanned facility outages, including outages at facilities of other market participants, and the related impacts on market power prices.

2025 investor day webcast

Today's event starts at 9 a.m. ET.

An archive of the webcast will be available on the company's website following the conclusion of the event.

About Capital Power Corp.

Capital Power is a growth-oriented power producer with approximately 12 gigawatts of power generation at 32 facilities, plus battery energy storage across North America. The company prioritizes safely delivering reliable and affordable power communities can depend on, building lower-carbon power systems and creating balanced solutions for the company's energy future.