1. Capital Power partners with Apollo Funds for $3 billion natural gas investment. 2. The partnership targets U.S. natural gas generation acquisitions. 3. Projected increase in U.S. capacity by 50% by 2030. 4. Strategic partnerships aim to enhance Capital Power’s earnings. 5. 2026 financial guidance optimistic, reflecting disciplined capital allocation.
FAQ
Why Bullish?
The MOU signals strong prospective growth through significant investment, potentially boosting shares. Historical examples show similar partnerships led to substantial market appreciation.
How important is it?
The strategic partnership with Apollo could result in significant future revenues and asset optimization, making it highly relevant for stock performance.
Why Long Term?
Strategic growth plans will take time for full implementation but may yield significant returns. Successful acquisition flips historically enhance long-term valuations.
Capital Power's 2025 Investor Day: Accelerating Growth Towards 2030
EDMONTON, Alberta, Dec. 10, 2025 — Capital Power Corporation (“Capital Power” or the “Company”) (TSX: CPX), today announced significant strategic advancements during its 2025 Investor Day in Toronto. Highlighting a robust partnership with Apollo Global Management (NYSE: APO), the Company revealed plans for a US$3 billion investment aimed at expanding its U.S. natural gas generation capacity.
Key Announcements from the 2025 Investor Day
During the event, Capital Power shared ambitious targets and strategic agreements designed to position itself as a key player in the North American energy market. The main highlights include:
- 2030 Growth Targets:
- 50% cumulative increase in U.S. capacity (approximately 3.5 GW)
- 13-15% annual Total Shareholder Return (TSR)
- 8-10% annual Adjusted Funds from Operations (AFFO) per share growth
- 2-4% annual dividend growth target
- Strategic Agreements:
- Memorandum of Understanding (MOU) with Apollo-managed funds for a partnership to pursue merchant natural gas acquisitions across the U.S.
- Binding MOU with an investment-grade data centre developer for an Electricity Supply Agreement (ESA) in Alberta, enhancing support for the AI infrastructure growth in the region.
Investment Partnership with Apollo Global Management
The new MOU between Capital Power and Apollo aims to create an investment partnership that will target U.S. natural gas generation assets, with a potential committed equity of up to US$3 billion. This strategic alliance combines the financial prowess of Apollo with Capital Power’s operational expertise, aimed at accelerating growth in the U.S. market.
The agreement anticipates an equity commitment of up to US$2.25 billion from Apollo Funds and US$750 million from Capital Power. Capital Power may pursue a working interest of 25% to 50% in each acquisition, allowing the Company to leverage its operational capabilities to enhance the performance of acquired assets.
Powering AI in Alberta
In addition to the investment partnership, Capital Power has signed a binding MOU with a reputable data centre developer to establish a 250 MW Electricity Supply Agreement. This long-term ESA is expected to commence in 2028 and will be supported by Capital Power's existing Alberta-based generation portfolio. A termination fee will be payable to Capital Power if final agreements are not realized.
2026 Financial Guidance
For 2026, Capital Power’s financial guidance emphasizes disciplined execution and sustainable growth. Expectations include:
- Adjusted EBITDA: $1,565 – $1,765 million
- AFFO: $890 – $1,010 million
- Sustaining Capital: $290 – $330 million
- Dividend Growth target: 2%
This guidance reflects the anticipated full-year contribution from recently acquired assets, assuring stakeholders of the Company’s commitment to maximizing returns and longevity of its asset portfolio.
Investor Day Webcast and Additional Information
The 2025 Investor Day event commenced at 9:00 AM ET, with a live webcast available for access on the Company’s website. An archive of the presentation will also be hosted for those unable to attend live.