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Capital Power and Manulife Investment Management Complete Acquisition of Midland Cogeneration Facility, The Canadian Business Journal

EDMONTON, Alberta, September 23, 2022 (GLOBE NEWSWIRE) — Capital Power Corporation (TSX: CPX) (“Capital Power”) and Manulife Investment Management announced today on behalf of Manulife Infrastructure Fund II and its affiliates Did. has successfully acquired his 100% interest in MCV Holding Company, which owns the Midland Cogeneration Venture (“Midland Cogen”), a 1,633 megawatt natural gas combined cycle cogeneration facility. The acquisition was previously announced on July 12, 2022.

Midland Cogen was acquired by OMERS Infrastructure Management Inc. and its co-investors for US$894 million. This is subject to working capital and other closing adjustments and includes an assumed project level liability of US$521 million. Under a 50/50 joint venture with Manulife Investment Management, Capital Power and its joint venture partners each contributed approximately US$186 million. Capital Power financed the transaction using cash on hand and credit facilities. Capital Power is responsible for operations and maintenance, asset management, for which it receives an annual management fee.

Located in Michigan, Midland Cogen is the largest gas-fired cogeneration facility in North America, a key asset to support grid reliability during the transition to renewable energy, and is ready for renewal in 2030 and beyond. , is well positioned given the expected market conditions. It’s working now. Under his 2030 and his 2035 long-term contracts with quality suppliers.

For Capital Power, the acquisition is expected to be immediately accretive to Adjusted Funds From Operations (AFFO), with an average increase of US$0.30 per share over five years, an increase of 7.0%. The financial forecast includes Adjusted EBITDA averaging US$59 million per year (down from US$85 million in 2023 to US$45 million in 2027) and US$35 million average annual over the five years 2023-2027. of AFFO are included. .

Non-GAAP Financial Measures and Ratios
The Company will not: (i) net finance costs, income tax expense, depreciation, impairment, foreign exchange gains or losses, finance costs and depreciation from joint venture interests, gains or losses on disposal, and unrealized changes in fair value; Use the previous return of . Commodity derivatives and emission rights (Adjusted EBITDA), and (ii) AFFO as a measure of financial performance.

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

These terms are not financial measures defined in accordance with GAAP, do not have standardized meanings prescribed by GAAP, and are not likely to be comparable to similar measures used by other companies. These measures should not be considered a substitute for net income, net cash flows from operations or other measures of financial performance calculated in accordance with GAAP. Rather, these measures are provided to supplement his GAAP measures in analyzing the Company’s results of operations from management’s perspective.

See second quarter 2022 non-GAAP measures and ratios and year-end 2021 management discussion and analysis.

Forward-Looking Information
Certain information in this news release is forward-looking within the meaning of Canadian securities laws as it relates to anticipated financial and operating results, events or strategies. Forward-looking information or statements are provided to inform our stockholders and potential investors of management’s assessment of Capital Power’s future plans and operations. This information may not be suitable for other purposes. Forward-looking information in this press release is generally identified by words such as will, expire, believe, plan, intend, target, expect or similar words that imply future results.

Important forward-looking information in this press release regarding the acquisition of MCV Holding Company includes (i) financial impact, including expected AFFO and adjusted EBITDA contributions and increases in AFFO and AFFO per share; and (ii) including positioning for potential earnings. – Midland Cogen’s contract for 2030 and after his 2035 contract expires.

These statements are based on certain assumptions and analyzes made by the Company in light of its experience and perceptions of historical trends, current conditions, expected future developments and other factors that it considers appropriate. I’m here. contract opportunity. Significant factors and assumptions used in making these forward-looking statements include (i) electricity and other energy prices; (ii) expected performance of the Midland Cogen facility; relates to wholesale market opportunities, (iv); the status and impact of policies, laws and regulations; and (v) the effective tax rate.

Whether actual results, performance or achievements will meet our expectations and projections is subject to a number of known and unknown risks and uncertainties that could cause actual results and experiences to differ materially from our expectations. receive. Such significant risks and uncertainties may arise from (i) changes in electricity prices in the MISO electricity market, (ii) changes in market prices of energy commodities and the use of derivatives, (iii) changes in the environment, financial reporting and markets. regulatory and political environment, including (iv) the availability and performance of generating facilities, including maintenance of equipment; (v) the ability to fund current and future capital and working capital needs; (vi) changes in market prices and fuel availability; (vii) the ability to realize the anticipated benefits of the Midland Cogen facility; (viii) limitations inherent in our review of the Midland Cogen facility; and (ix) Changes in general economic and competitive conditions. For more information on these and other risks, see our 2021 Management Discussion and Analysis Risks and Risk Management.

Readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date of approval indicated. We undertake no obligation or commitment to publicly release updates or revisions to forward-looking statements to reflect changes in our expectations or changes in events, conditions or circumstances on which such statements are based. does not bear or accept. As required by law.

About Capital Power
Capital Power (TSX: CPX) is a growth-oriented North American wholesale power company headquartered in Edmonton, Alberta with a strategic focus on sustainable energy. We build, own and operate high quality, utility-scale power generation facilities, including renewable energy and heat. We are also investing heavily in carbon capture and utilization to reduce our carbon footprint, and have committed to going coal-free by 2023. Capital Power owns approximately 7,400 MW of generating capacity at 28 facilities in North America. Ongoing development projects include approximately 385 MW of owned renewable capacity in North Carolina and Alberta, and Genesee 1 and 2 repowers in Alberta to add 512 MW of natural gas combined cycle capacity.

About Manulife Investment Management
Manulife Investment Management is the global brand of the Global Wealth and Asset Management segment of Manulife Financial Corporation. We leverage over a century of financial management and all the resources of our parent company to serve individuals, institutions and retirement plan members around the world. Headquartered in Toronto, our leading public and private market capabilities are enhanced by an investment footprint spanning 19 geographies. To complement these capabilities, we provide access to a network of unaffiliated asset managers around the world. We are committed to investing responsibly across our business. We develop an innovative global framework for sustainable investing, work and engage with companies in our securities portfolio, maintain high standards of stewardship when owning and managing our assets, and We believe in supporting financial well-being through retirement planning. Today, plan sponsors around the world rely on our retirement plan management and investment expertise to help their employees plan, save and live a better retirement. Not all offerings are available in all jurisdictions. For more information, visit manulifeim.com.

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Capital Power and Manulife Investment Management Complete Acquisition of Midland Cogeneration Facility, The Canadian Business Journal

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