Capital Power reports fourth quarter and year-end 2025 results

Core Insights - Capital Power Corporation executed its strategic priorities effectively in 2025, leading to strong financial results and positioning the company for long-term success amid rising electricity demand in North America [6][11]. Strategic Highlights - The company completed its largest acquisition to date, acquiring the Hummel and Rolling Hills facilities in the PJM market for approximately $3.0 billion (US$2.2 billion), adding around 2.2 GW of U.S. natural gas-fired generation capacity [7]. - A long-term contract was executed for the Midland Cogeneration Venture (MCV) through 2040, providing an additional 10 years of contracted cash flows [7]. - Capital Power entered into a binding MOU with a data center developer for a 250 MW Electricity Supply Agreement (ESA) in Alberta, expected to commence in 2028 [7]. - The company reached commercial operation for approximately 60 MW of long-term contracted projects and commissioned 170 MW of battery storage in Ontario, contracted through to 2047 [7]. Financial Highlights - In Q4 2025, Capital Power generated an Adjusted Funds From Operations (AFFO) of $244 million and net cash flows from operating activities of $205 million [7]. - For the full year 2025, the company reported an AFFO of $1,066 million and net cash flows from operating activities of $962 million, with an Adjusted EBITDA of $1,580 million and a net income of $159 million [7]. - The common share dividend was increased by 6%, marking the 12th consecutive year of dividend growth [7]. - The company successfully issued $2.3 billion of senior unsecured notes, including a US$1.2 billion inaugural U.S. private offering, and raised $667 million of equity capital to fund its U.S. expansion [7]. Operational Highlights - Electricity generation for 2025 was 44,616 GWh, an increase from 37,821 GWh in 2024, with generation facility availability at 91% [12]. - The company maintained one of the most reliable and efficient portfolios in North America, optimizing asset life and availability [9]. Significant Events - In December 2025, Capital Power entered into a MOU with Apollo Global Management to form an investment partnership for acquiring U.S. natural gas generation assets, with a total potential committed equity of up to US$3 billion [16]. - The company extended its summer tolling agreement for the Arlington Valley facility, providing 13 years of contracted revenue and positioning for continued growth in the U.S. southwest [23].