EDMONTON, AB–(Marketwired – July 26, 2017) – Capital Power Corporation (Capital Power, or the Company) (TSX: CPX) today released financial results for the second quarter ended June 30, 2017.
Net income attributable to shareholders in the second quarter of 2017 was $109 million and basic earnings per share attributable to common shareholders was $1.03 per share, compared with $23 million, or $0.19 per share, in the comparable period of 2016. Normalized earnings attributable to common shareholders in the second quarter of 2017, after adjusting for non-recurring items and fair value adjustments, were $26 million or $0.27 per share compared with $29 million or $0.30 per share in the second quarter of 2016.
Net cash flows from operating activities were $78 million in the second quarter of 2017 compared with $70 million in the second quarter of 2016. Adjusted funds from operations were $47 million in the second quarter of 2017, compared to $79 million in the second quarter of 2016.
For the six months ended June 30, 2017, net income attributable to shareholders was $159 million and basic earnings per share attributable to common shareholders was $1.47 per share compared with $17 million and $0.07 for the six months ended June 30, 2016. For the six months ended June 30, 2017, normalized earnings attributable to common shareholders were $59 million, or $0.61 per share, compared with $61 million, or $0.63 per share, in the first six months of 2016.
Net cash flows from operating activities were $177 million for the six months ended June 30, 2017 compared with $201 million for the six months ended June 30, 2016. Adjusted funds from operations were $138 million for the first six months of 2017, compared to $172 million in the comparable six month period last year.
“Capital Power’s financial results for the second quarter of 2017 were in line with management’s expectations,” said Brian Vaasjo, President and CEO of Capital Power. “Second quarter results benefitted from strong operating performance with average facility availability of 94% and a solid contribution from our portfolio optimization activities. Our trading desk captured an average realized Alberta power price of $52 per megawatt hour (MWh) in the second quarter, well above the average spot price of $19 per MWh.”
“In the second quarter, the Company continued to execute on its growth strategy by adding nearly 1,300 megawatts of contracted generation through the acquisitions of Veresen Inc.’s thermal power business and the Decatur Energy Center, in addition to the start of commercial operations for our Bloom Wind project. Construction costs for Bloom Wind were under budget and the project was completed one month ahead of schedule. The addition of these six facilities has materially increased the Company’s contracted cash flows and has further diversified the generation fleet throughout North America,” stated Mr. Vaasjo.
“Based on Capital Power’s outlook and consistent with our 7% annual dividend growth guidance for 2017, I am pleased to announce that the Board of Directors has approved a 7.1% or $0.11 per common share dividend increase that increases the annualized dividend to $1.67 per share effective for the third quarter 2017 quarterly dividend payment,” continued Mr. Vaasjo. “With the recent additions to our fleet that have strengthened our contracted cash flow profile, we are extending our current 7% annual dividend growth guidance for 2018 by an additional two years to the end of 2020. Each annual increase is subject to changing circumstances and approval by the Board of Directors of Capital Power at the time of the increase.”
| Operational and Financial Highlights(1) (unaudited) | Three months ended June 30 | Six months ended June 30 | ||||||||||
| (millions of dollars except per share and operational amounts) | 2017 | 2016 | 2017 | 2016 | ||||||||
| Electricity generation (excluding Sundance C power purchase arrangement (Sundance PPA)) (Gigawatt hours) | 3,674 | 3,707 | 7,636 | 7,605 | ||||||||
| Generation facility availability (excluding Sundance PPA) | 94 | % | 90 | % | 96 | % | 93 | % | ||||
| Revenues and other income | $ | 201 | $ | 226 | $ | 539 | $ | 560 | ||||
| Adjusted EBITDA (2) | $ | 96 | $ | 108 | $ | 239 | $ | 228 | ||||
| Net income | $ | 107 | $ | 20 | $ | 154 | $ | 12 | ||||
| Net income attributable to shareholders of the Company | $ | 109 | $ | 23 | $ | 159 | $ | 17 | ||||
| Basic and diluted earnings per share | $ | 1.03 | $ | 0.19 | $ | 1.47 | $ | 0.07 | ||||
| Normalized earnings attributable to common shareholders (2) | $ | 26 | $ | 29 | $ | 59 | $ | 61 | ||||
| Normalized earnings per share (2) | $ | 0.27 | $ | 0.30 | $ | 0.61 | $ | 0.63 | ||||
| Net cash flows from operating activities | $ | 78 | $ | 70 | $ | 177 | $ | 201 | ||||
| Adjusted funds from operations (2),(3) | $ | 47 | $ | 79 | $ | 138 | $ | 172 | ||||
| Purchase of property, plant and equipment and other assets | $ | 63 | $ | 81 | $ | 148 | $ | 112 | ||||
| Dividends per common share, declared | $ | 0.3900 | $ | 0.3650 | $ | 0.7800 | $ | 0.7300 | ||||
| (1) | The operational and financial highlights in this press release should be read in conjunction with Management’s Discussion and Analysis and the unaudited condensed interim consolidated financial statements for the six months ended June 30, 2017. |
| (2) | Earnings before net finance expense, income tax expense, depreciation and amortization, impairments, foreign exchange gains or losses, finance expense from its joint venture interests, and gains or losses on disposals (adjusted EBITDA), normalized earnings attributable to common shareholders, normalized earnings per share and adjusted funds from operations are non-GAAP financial measures and do not have standardized meanings under GAAP and are, therefore, unlikely to be comparable to similar measures used by other enterprises. See Non-GAAP Financial Measures. |
| (3) | Commencing with the Company’s March 31, 2017 quarter-end, the Company uses adjusted funds from operations as a measure of the Company’s ability to generate cash from its current operating activities to fund growth capital expenditures, debt repayments and common share dividends to the Company’s shareholders. |
Capital Power and Siksika Resource Developments Limited announce partnership
On July 5, 2017, Capital Power and Siksika Resource Developments Limited (SRDL) entered into an exclusive agreement to jointly develop power projects on the Siksika Nation reserve. The Siksika Nation is located approximately 100 kilometers southeast of Calgary. The Siksika Nation controls one of the largest reserves in Canada comprising 172,000 acres of land with excellent solar, wind and gas projects potential. The location is attractive for the development of power projects given the existing transmission and distribution infrastructure, and ample water.
Capital Power and SRDL expect to develop multiple power projects including both renewable and natural gas-fired technologies. The agreement contemplates Capital Power as the lead developer and operator with both SRDL and Capital Power taking joint ownership positions in projects. The purpose is also to foster economic development and provide socioeconomic benefits to the Siksika Nation and its members such as employment, business opportunities for Siksika Nation owned companies, education, training and support for traditional language and cultural enrichment.
SRDL is a wholly-owned company of the Siksika Nation. It currently operates several enterprises on the Siksika Nation reserve. The Siksika Nation has approximately 6,000 members.
Significant events
Acquisition of Decatur Energy and $183 million public offering
On April 12, 2017, the Company announced that it entered into an agreement to acquire all of the ownership interests in Decatur Power Holdings, LLC, which owns the Decatur Energy Center (Decatur Energy) from an affiliate of LS Power Equity Partners III for $603 million (US$448 million), including working capital and other closing adjustments of $9 million (US$7 million). Decatur Energy is a 795 MW natural gas-fired combined cycle power generation facility located in Decatur, Alabama that operates under a tolling agreement.
Decatur Energy sells capacity and energy to a regional entity under a long-term contract which has an original term of 10 years and expires December 31, 2022. Decatur Energy is well-positioned, given anticipated market conditions, as well as significant remaining useful life, to be re-contracted or to pursue other commercial alternatives at the end of the current long-term contract, including the ability to sell power into the Pennsylvania, New Jersey, and Maryland interconnection market starting in 2023.
Financing of the Decatur Energy acquisition consisted of a combination of debt and equity. On April 24, 2017, the Company announced the completion of its previously announced public offering of 7,375,000 subscription receipts (Subscription Receipts), on a bought deal basis, at an issue price of $24.75 per Subscription Receipt, for total gross proceeds of $183 million less issue costs of $7 million. On June 13, 2017, upon closing of the Decatur Energy acquisition, each Subscription Receipt was converted for one common share of the Company. No dividend record date occurred during the period when the Subscription Receipts were outstanding and as such, no obligations to make any cash dividend equivalent payments were triggered.
The balance of the purchase price was financed through debt utilizing a temporary expansion of Capital Power’s credit facilities and is expected to be followed by permanent financing with an issuance of long-term debt later in 2017.
The Decatur Energy acquisition supports the Company’s growth strategy and increases the Company’s geographical diversification and contracted cash flows. During the first full year of operations, the Decatur Energy acquisition is expected to increase adjusted funds from operations by $43 million and increase adjusted EBITDA by $60 million.
Bloom Wind begins commercial operation
On June 1, 2017, the Company’s 178MW Bloom Wind facility commenced commercial operations. On June 12, 2017, the Company received $244 million (US $181 million) in financing from an affiliate of Goldman Sachs in exchange for Class A interests of a subsidiary of the Company. The Company incurred issue costs of $7 million (US$5 million) associated with the financing. Effective July 1, 2017, Bloom Wind will operate under a 10-year proxy revenue swap agreement with Allianz Risk Transfer, a subsidiary of Allianz SE. Under the contract, which was executed on April 21, 2016, Capital Power swaps the market revenue of the project’s generation for a fixed annual payment for a 10-year term. The agreement secures long-term predictable revenues and mitigates generation volume uncertainty.
Acquisition of thermal facilities
On February 21, 2017, the Company announced that it entered into an agreement to acquire the thermal power business of Veresen Inc. Under the terms of the agreement, Capital Power acquired 284 MW of generation from two natural gas-fired power assets in Ontario consisting of the 84 MW East Windsor Cogeneration Centre (East Windsor) and a 50% interest in the 400 MW York Energy Centre (York Energy), and operates both facilities. The transaction also includes 10 MW of zero-emissions waste heat generation from two facilities (5 MW each), together known as EnPower Green Energy Generation (EnPower), located at Westcoast Energy’s BC Gas Pipeline compressor stations in Savona and 150 Mile House, British Columbia.
On April 13, 2017, the Company announced that it had completed the acquisition of the two natural gas-fired power facilities in Ontario. The purchase price for the natural gas-fired facilities consisted of (i) $235 million in total cash consideration, including working capital and other closing adjustments of $11 million, and (ii) the assumption of $253 million of project level debt (proportionate basis at acquisition date net book value).
On June 1, 2017, the Company completed the acquisition of EnPower. The purchase price consisted of (i) $8 million of total cash consideration, including working capital and other closing adjustments of $3 million, and (ii) the assumption of $18 million of project level debt.
The acquisitions of these facilities support the Company’s growth strategy and are consistent with the Company’s technology and operating focus. During the first full year of operations, these acquisitions are expected to increase adjusted funds from operations by $24 million and increase adjusted EBITDA by $55 million.
Appointments to the Board of Directors
Effective April 3, 2017, Keith Trent and Katharine Stevenson were appointed to the Capital Power Board of Directors.
Amendment of Genesee Coal Mine Joint Venture Agreement
On March 28, 2017, the Company announced that it entered into an agreement (the Amending Agreement) to amend its Genesee Mine Joint Venture Agreement with Prairie Mines & Royalty ULC (PMRU), a subsidiary of Westmoreland Coal Company, to accelerate the repayment of amounts it would otherwise have owed to PMRU during the term of the agreement and eliminate all future payments to PMRU relating to existing capital assets at the Genesee Coal Mine (Coal Mine). Capital Power will continue to pay PMRU contracted mining fees for PMRU’s ongoing operation of the Coal Mine.
By accelerating the $70 million repayment of capital expenditures to PMRU, the transaction will reduce Capital Power’s cost of coal for the Genesee facility, and enhance the Company’s net income, adjusted EBITDA, net cash flows from operating activities and adjusted funds from operations. These cost reductions were anticipated to take place and have been included in the adjusted funds from operations guidance that was provided as part of the Company’s year-end disclosure on February 17, 2017. As a result of the transaction, net cash flows from operating activities are expected to increase by $14 million for 2017. The operations and management of the Coal Mine are unchanged as a result of the Amending Agreement and the Company will continue to control the Coal Mine and treat it as a subsidiary.
Coal for the Genesee facility is supplied by the adjacent Coal Mine under a long-term, cost of service supply agreement. Prior to the Amending Agreement, Capital Power paid PMRU a fee to cover PMRU’s depreciation expense and certain other costs, as well as provide a variable rate of return to PMRU. These fees paid to PMRU were included as part of Capital Power’s cost of coal for operating the Genesee facility, and will be eliminated with the Amending Agreement.
The cost savings for Capital Power will be magnified through 2030 with the phase-out of coal-fired generation under the Alberta Climate Leadership Plan, which would accelerate the amounts in respect of depreciation that would have been paid to PMRU due to the shortened asset lives.
Subsequent events
Dividend increase
On July 25, 2017, the Company’s Board of Directors approved an increase of 7.1% in the annual dividend for holders of its common shares, from $1.56 per common share to $1.67 per common share. This increased common dividend will commence with the third quarter 2017 quarterly dividend payment on October 31, 2017 to shareholders of record at the close of business on September 29, 2017.
Analyst conference call and webcast
Capital Power will be hosting a conference call and live webcast with analysts on July 26, 2017 at 9:00 am (MT) to discuss its second quarter operating and financial results. The conference call dial-in numbers are:
(604) 638-5340 (Vancouver)
(403) 351-0324 (Calgary)
(416) 915-3239 (Toronto)
(514) 375-0364 (Montreal)
(800) 319-4610 (toll-free from Canada and USA)
Interested parties may also access the live webcast on the Company’s website at www.capitalpower.com with an archive of the webcast available following the conclusion of the analyst conference call.
Non-GAAP financial measures
The Company uses (i) adjusted EBITDA, (ii) adjusted funds from operations, (iii) normalized earnings attributable to common shareholders, and (iv) normalized earnings per share as financial performance measures. 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 the Company, 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. Reconciliations of adjusted EBITDA to net income (loss), adjusted funds from operations to net cash flows from operating activities and normalized earnings attributable to common shareholders to net income (loss) attributable to shareholders of the Company are disclosed below and are discussed further in the Company’s Management’s Discussion and Analysis, prepared as of July 25, 2017, for the six months ended June 30, 2017 which is available under the Company’s profile on SEDAR at www.SEDAR.com.
Adjusted EBITDA
Capital Power uses adjusted EBITDA to measure the operating performance of facilities and categories of facilities from period to period. Management believes that a measure of facility operating performance is more meaningful if results not related to facility operations such as impairments, foreign exchange gains or losses and gains or losses on disposals are excluded from the adjusted EBITDA measure.
A reconciliation of adjusted EBITDA to net income is as follows:
| (unaudited, $ millions) | Three months ended | |||||||||||||||
| Jun 30 2017 | Mar 31 2017 | Dec 31 2016 | Sep 30 2016 | Jun 30 2016 | Mar 31 2016 | Dec 31 2015 | Sep 30 2015 | |||||||||
| Revenues and other income | 201 | 338 | 280 | 374 | 226 | 334 | 337 | 466 | ||||||||
| Energy purchases and fuel, other raw materials and operating charges, staff costs and employee benefits expense, and other administrative expense | (119 | ) | (208 | ) | (148 | ) | (232 | ) | (127 | ) | (225 | ) | (216 | ) | (318 | ) |
| Adjusted EBITDA from joint ventures (1) | 14 | 13 | 12 | 6 | 9 | 11 | 13 | 6 | ||||||||
| Adjusted EBITDA | 96 | 143 | 144 | 148 | 108 | 120 | 134 | 154 | ||||||||
| Depreciation and amortization | (65 | ) | (60 | ) | (53 | ) | (53 | ) | (54 | ) | (56 | ) | (56 | ) | (53 | ) |
| Impairment | – | – | – | (6 | ) | – | – | – | – | |||||||
| Losses on termination of power purchase arrangement | – | – | (20 | ) | – | – | (53 | ) | – | – | ||||||
| Foreign exchange gain (loss) | 9 | 2 | (4 | ) | 3 | (1 | ) | 8 | – | (8 | ) | |||||
| Net finance expense | (25 | ) | (20 | ) | (24 | ) | (21 | ) | (19 | ) | (22 | ) | (27 | ) | (25 | ) |
| Finance expense from joint ventures (1) | (2 | ) | (3 | ) | (3 | ) | (3 | ) | (4 | ) | (3 | ) | (3 | ) | (2 | ) |
| Income tax recovery (expense) | 94 | (15 | ) | (14 | ) | (4 | ) | (10 | ) | (2 | ) | (14 | ) | (16 | ) | |
| Net income (loss) | 107 | 47 | 26 | 64 | 20 | (8 | ) | 34 | 50 | |||||||
| Net income (loss) attributable to: | ||||||||||||||||
| Non-controlling interests | (2 | ) | (3 | ) | (2 | ) | (2 | ) | (3 | ) | (2 | ) | (1 | ) | 1 | |
| Shareholders of the Company | 109 | 50 | 28 | 66 | 23 | (6 | ) | 35 | 49 | |||||||
| Net income (loss) | 107 | 47 | 26 | 64 | 20 | (8 | ) | 34 | 50 | |||||||
| (1) | Total income from joint ventures as per the Company’s consolidated statements of income. |
Adjusted funds from operations
Adjusted funds from operations represents net cash flows from operating activities adjusted to include net finance expenses and current income tax expenses and exclude changes in operating working capital and distributions received from the Company’s joint venture interests. Net finance expenses and current income tax expenses are included as the timing of cash receipts and payments of interest and income taxes and the resulting cash basis amounts are not comparable from period to period. Changes in operating working capital are excluded from adjusted funds from operations as the timing of cash receipts and payments also affects the period-to-period comparability. Distributions received from the Company’s joint venture interests are excluded as the distribution is calculated after the effect of joint venture debt payments, which are not considered an operating activity. Adjusted funds from operations also exclude the impact of fair value changes in certain unsettled derivative financial instruments that are charged or credited to the Company’s bank margin account held with a specific exchange counterparty. The Company includes interest and current income tax expenses excluding Part VI.1 tax recorded during the period rather than interest and income taxes paid. Adjusted funds from operations is reduced by sustaining capital expenditures and preferred share dividends and adjusted to include the Company’s share of the adjusted funds from operations of its joint venture interests and cash from coal compensation that will be received annually.
A reconciliation of net cash flows from operating activities to adjusted funds from operations is as follows:
| (unaudited, $ millions) | Three months ended June 30 | Six months ended June 30 | |||||||
| 2017 | 2016 | 2017 | 2016 | ||||||
| Net cash flows from operating activities per condensed interim consolidated statements of cash flows | 78 | 70 | 177 | 201 | |||||
| Add (deduct) items included in calculation of net cash flows from operating activities per consolidated statements of cash flows: | |||||||||
| Interest paid | 23 | 23 | 37 | 41 | |||||
| Change in fair value of derivatives reflected as cash settlement | (2 | ) | 13 | – | 13 | ||||
| Distributions received from joint ventures | (6 | ) | (3 | ) | (14 | ) | (17 | ) | |
| Miscellaneous financing charges paid (1) | – | – | 2 | 1 | |||||
| Income taxes paid | – | 1 | – | 1 | |||||
| Change in non-cash operating working capital | 8 | 16 | 10 | (3 | ) | ||||
| 23 | 50 | 35 | 36 | ||||||
| Net finance expense (2) | (24 | ) | (17 | ) | (42 | ) | (39 | ) | |
| Current income tax expense | (5 | ) | (2 | ) | (7 | ) | (7 | ) | |
| Decrease in current income tax expense due to Part VI.1 tax | 4 | 2 | 6 | 7 | |||||
| Sustaining capital expenditures (3) | (31 | ) | (24 | ) | (35 | ) | (30 | ) | |
| Preferred share dividends paid | (8 | ) | (5 | ) | (16 | ) | (10 | ) | |
| Adjusted funds from operations from joint ventures | 10 | 5 | 20 | 14 | |||||
| Adjusted funds from operations | 47 | 79 | 138 | 172 | |||||
| (1) | Included in other items of non-cash adjustments to reconcile net income to net cash flows from operating activities. |
| (2) | Excludes unrealized changes on interest rate derivative contracts and amortization and accretion charges. |
| (3) | Includes sustaining capital expenditures net of joint venture contributions of $2 million and $4 million for the three and six months ended June 30, 2017, respectively, compared with $3 million and $5 million for the three and six months ended June 2016, respectively. |
Normalized earnings attributable to common shareholders and normalized earnings per share
The Company uses normalized earnings attributable to common shareholders and normalized earnings per share to measure performance by period on a comparable basis. Normalized earnings per share is based on earnings (loss) used in the calculation of basic earnings (loss) per share according to GAAP and adjusted for items that are not reflective of performance in the period such as unrealized fair value changes, impairment charges, unusual tax adjustments, gains and losses on disposal of assets or unusual contracts, and foreign exchange gain or loss on the revaluation of U.S. dollar denominated debt. The adjustments, shown net of tax, consist of unrealized fair value changes on financial instruments that are not necessarily indicative of future actual realized gains or losses, non-recurring gains or losses, or gains or losses reflecting corporate structure decisions.
| (unaudited, $ millions except per share amounts and number of common shares) | Three months ended | |||||||||||||||
| Jun 30 2017 | Mar 31 2017 | Dec 31 2016 | Sep 30 2016 | Jun 30 2016 | Mar 31 2016 | Dec 31 2015 | Sep 30 2015 | |||||||||
| Basic earnings (loss) per share ($) | 1.03 | 0.44 | 0.21 | 0.63 | 0.19 | (0.11 | ) | 0.29 | 0.44 | |||||||
| Net income (loss) attributable to shareholders of the Company per condensed interim consolidated statements of income (loss) | 109 | 50 | 28 | 66 | 23 | (6 | ) | 35 | 49 | |||||||
| Preferred share dividends including Part VI.1 tax | (8 | ) | (8 | ) | (8 | ) | (5 | ) | (5 | ) | (5 | ) | (6 | ) | (5 | ) |
| Earnings (loss) attributable to common shareholders | 101 | 42 | 20 | 61 | 18 | (11 | ) | 29 | 44 | |||||||
| Recognition of U.S. deferred tax assets related to non-capital losses | (86 | ) | – | – | – | – | – | – | – | |||||||
| Unrealized changes in fair value of derivatives | 23 | (7 | ) | (8 | ) | (22 | ) | 10 | 5 | 11 | (19 | ) | ||||
| Unrealized foreign exchange (gain) loss on revaluation of U.S. dollar denominated debt | (12 | ) | (1 | ) | 3 | 1 | 1 | (8 | ) | 1 | 6 | |||||
| Loss on de-recognition of the Sundance C power purchase arrangement (Sundance PPA) | – | – | – | – | – | 46 | – | – | ||||||||
| Change in unrecognized tax benefits | – | – | – | (27 | ) | – | – | – | – | |||||||
| Settlement of Sundance power purchase arrangement legal action | – | – | 15 | – | – | – | – | – | ||||||||
| Deferred income tax (reduction) expense related to temporary difference on investment in subsidiary | – | – | (1 | ) | 13 | – | – | – | – | |||||||
| Impairment loss on Southport goodwill | – | – | – | 4 | – | – | – | – | ||||||||
| Success fee received related to development project | – | – | (3 | ) | – | – | – | – | – | |||||||
| Restructuring charges | – | – | – | – | – | – | – | 2 | ||||||||
| Release of tax liability on foreign domiciled investment | – | (1 | ) | – | – | – | – | – | – | |||||||
| Normalized earnings attributable to common shareholders | 26 | 33 | 26 | 30 | 29 | 32 | 41 | 33 | ||||||||
| Weighted average number of common shares outstanding (millions) | 98.1 | 96.3 | 96.1 | 96.1 | 96.1 | 96.4 | 98.7 | 100.9 | ||||||||
| Normalized earnings per share ($) | 0.27 | 0.34 | 0.27 | 0.31 | 0.30 | 0.33 | 0.42 | 0.33 | ||||||||
Forward-looking information
Forward-looking information or statements included in this press release are provided to inform the Company’s shareholders and potential investors about management’s assessment of Capital Power’s future plans and operations. This information may not be appropriate for other purposes. The forward-looking information in this press release is generally identified by words such as will, anticipate, believe, plan, intend, target, and expect or similar words that suggest future outcomes.
Material forward-looking information in this press release includes disclosures regarding: (i) expectations pertaining to the amendment of the Genesee Coal Mine Joint Venture Agreement regarding reduction to Capital Power’s cost of coal and expected enhancements to the Company’s net income, adjusted EBITDA, net cash flows from operating activities and adjusted funds from operations, (ii) expectations pertaining to the financial impacts of the acquisition of the Veresen thermal facilities including expected impacts to adjusted funds from operations and adjusted EBITDA, and (iii) expectations pertaining to the acquisition of Decatur Energy including: financing plans for the acquisition, financial impacts including expected impacts to adjusted funds from operations and adjusted EBITDA, and re-contracting of the facility.
These statements are based on certain assumptions and analyses made by the Company in light of its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate. The material factors and assumptions used to develop these forward-looking statements relate to: (i) electricity and other energy prices, (ii) anticipated facility performance, (iii) business prospects and opportunities including expected growth and capital projects, (iv) status of and impact of policy, legislation and regulations, and (v) effective tax rates.
Whether actual results, performance or achievements will conform to the Company’s expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results and experience to differ materially from the Company’s expectations. Such material risks and uncertainties are: (i) changes in electricity prices in markets in which the Company operates, (ii) changes in energy commodity market prices and use of derivatives, (iii) regulatory and political environments including changes to environmental, financial reporting, market structure and tax legislation, (iv) facility availability and performance including maintenance of equipment, (v) ability to fund current and future capital and working capital needs, (vi) acquisitions and developments including timing and costs of regulatory approvals and construction, (vii) changes in market prices and availability of fuel, and (viii) changes in general economic and competitive conditions. See Risks and Risk Management in the Company’s Management’s Discussion and Analysis for the year ended December 31, 2016, prepared as of February 17, 2017, for further discussion of these and other risks.
Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the specified approval date. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.
For more information, please contact:
Media Relations:
Michael Sheehan
(780) 392-5222
[email protected]
Investor Relations:
Randy Mah
(780) 392-5305 or (866) 896-4636 (toll-free)
[email protected]
