2025-12-10, 4:04:46 a.m.
EDMONTON, Alberta — December 10, 2025 — Leads & Copy — Capital Power Corporation (TSX: CPX) unveiled a US$3 billion investment partnership with Apollo-managed funds to acquire merchant U.S. natural gas generation assets and a binding memorandum of understanding (MOU) with an investment-grade data center developer in Alberta during its 2025 Investor Day in Toronto today.
The Investor Day event highlighted Capital Power’s strategic priorities, 2030 growth targets and 2026 guidance, reinforcing its position as a leading North American power producer. The partnership with Apollo Funds combines their capital strength with Capital Power’s expertise to accelerate the company’s U.S. natural gas growth strategy and expand earnings.
Under the MOU, Apollo Funds would commit up to US$2.25 billion in equity, while Capital Power would contribute US$750 million, with Capital Power electing a 25% to 50% working interest in each acquisition. Capital Power will operate the acquired assets and receive management and performance fees, leveraging its operating platform to enhance asset performance and improve returns.
The binding MOU with the data center developer is for a 250 MW Electricity Supply Agreement (ESA) with an anticipated start date in 2028 and a term of 10+ years. The ESA would be backed by Capital Power’s Alberta-based power generation portfolio.
Avik Dey, President and Chief Executive Officer of Capital Power, emphasized the company’s track record of delivering industry-leading returns from natural gas fueled power generation assets, as well as their unique ability to acquire and optimize assets, better than any other North American independent power producer.
Dey noted the opportunity to grow Capital Power’s business due to structural growth in power demand, driven by the AI infrastructure boom and the increasing need for reliable and affordable energy. He added that the planned investment partnership with Apollo Funds would accelerate their efforts to deliver long-term reliable growth to shareholders.
Capital Power also provided its 2026 financial guidance, which includes:
- 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, and exclude 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.
Key 2030 targets include a 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, and maintaining a 2-4% annual dividend growth target.
Today’s Investor Day event starts at 9:00 AM ET. The webcast can be accessed at: https://edge.media-server.com/mmc/p/i5itpzzf/. 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.
Contact Information:
Media Relations Katherine Perron (780) 392-5335 kperron@capitalpower.com
Investor Relations Noreen Farrell (403) 461-5236 investor@capitalpower.com Source: Capital Power
