Capital Power 2025 Investor Day: Accelerating Growth to 2030

Press Release

December 10, 2025

Announces MOU with Apollo-managed funds for US$3 billion investment partnership to pursue merchant U.S. natural gas generation acquisitions and enters into a binding MOU with investment-grade data centre developer in Alberta

EDMONTON, Alberta – Capital Power Corporation (“Capital Power” or the “Company”) (TSX: CPX) 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% cumulative increase in U.S. capacity (or ~3.5 GW)
• 13-15% annual Total Shareholder Return (TSR)
• 8-10% annual AFFO per-share growth
• Maintain 2-4% annual dividend growth target

Strategic Agreements:

• A memorandum of understanding (“MOU”) with funds managed by affiliates of Apollo Global Management (NYSE: APO) (“Apollo Funds”) to form a US$3 billion 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 fueled 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 US$3 billion. 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 U.S.$2.25 billion from Apollo Funds and U.S.$750 million from Capital Power, with Capital Power electing a 25% to 50% 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+ 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, AFFO and Sustaining Capital – underscores our commitment to disciplined execution, capital allocation, and reliable long-term growth. 2026 guidance reflects full-year contribution from the recently acquired assets in PJM and reinforces our dedication to investing in our 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 our business strategy and our ability to generate outsized returns.

• Adjusted EBITDA: $1,565 – $1,765 million
• AFFO: $890 – $1,010 million
• Sustaining Capital: $290 – $330 million
• Dividend Growth target: 2%

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 9:00 AM ET. The webcast can be accessed at:

An archive of the webcast will be available on the Company’s website following the conclusion of the event.

Non-GAAP Financial Measures and Ratios

Capital Power uses (i) earnings before income tax expense, depreciation and amortization, net finance expense, foreign exchange gains or losses, gains or losses on disposals and other transactions, unrealized changes in fair value of commodity derivatives and emission credits, other expenses from the Company’s joint venture interests, acquisition and integration costs, and other items that are not reflective of the Company’s facility operating performance (adjusted EBITDA), and (ii) AFFO as specified financial measures. Adjusted EBITDA and AFFO are both non-GAAP financial measures.

Capital Power also uses AFFO per share as a specified performance measure. This measure is a non-GAAP ratio determined by applying AFFO to the weighted average number of common shares used in the calculation of basic and diluted earnings per share.

These terms 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 by other enterprises. These measures should not be considered alternatives to net income, net income attributable to shareholders of Capital Power, net cash flows from operating activities or other measures of financial performance calculated in accordance with GAAP. Rather, these measures are provided to complement GAAP measures in the analysis of the Company’s results of operations from management’s perspective.

Media Relations

Katherine Perron
(780) 392-5335
kperron@capitalpower.com

Investor Relations

Noreen Farrell
(403) 461-5236
investor@capitalpower.com

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