By Adriano Marchese
Capital Power plans to boost U.S. capacity by half by 2030, deliver double‑digit shareholder returns and expand its natural gas portfolio through a $3 billion partnership with Apollo Global Management.
The Canadian power generation company on Wednesday laid out its targets through the end of the decade, which include a 50% cumulative increase in U.S. capacity, the equivalent of 3.5 gigawatts of energy.
For shareholders, the company is aiming for 13% to 15% annual total shareholder returns, with adjusted funds from operations in the range of 8% to 10% a year.
Dividend growth is expected to be between 2% and 4% annually.
Additionally, Capital Power has signed a preliminary agreement with Apollo Global Management to form a $3-billion partnership to buy a natural gas power plants in the U.S.
Apollo will provide as much as $2.25 billion, while Capital Power will contribute up to $750 million. Capital Power said it will choose to own between 25% and 50% of the assets, and will run the plants, earning management and performance fees.
Chief Executive Avik Dey said the company has an opportunity to grow the business thanks to the structural growth in power demand driven by the artificial intelligence infrastructure trend and the growing need for energy.
Capital Power has also signed an agreement with a major data centre developer in Alberta to supply electricity for more than 10 years, and said it expects to begin in 2028.
More immediately in 2026, the company said it expects adjusted earnings before interest, taxes, depreciation and amortization of between 1.57 billion Canadian dollars ($1.13 billion) and C$1.77 billion, as well as adjusted funds from operations in the range of C$890 million to C$1.01 billion. Sustaining capital is projected to be between C$290 million and C$330 million.
Dividend growth for the year is pegged at 2%.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
December 10, 2025 06:43 ET (11:43 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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