Topic: How To Invest

Q: Hi Pat. Can you give me your thoughts about Capital Power Corp. and if it’s a buy? Thanks. Regards.

Article Excerpt

A: Capital Power Corp., $42.52, symbol CPX on Toronto (Shares outstanding: 116.5 million; Market cap: $5.0 billion; is one of Canada’s largest independent electrical power producers, with its 29 facilities across North America offering 7,500 megawatts of power. Capital Power continues to expand both its power-generation capacity, as well as its long-term guaranteed energy sales contracts. In September 2022, the company completed the acquisition of the Midland Cogeneration facility in Midland, Michigan, in a 50/50 joint venture partnership with Manulife Investment Management. The partners paid $894 million U.S. for the 1,633-megawatt natural gas combined-cycle cogeneration facility. It’s the largest gas-fired cogeneration facility in the U.S (in addition to natural gas, it uses heat to generate steam power). The facility mostly produces power under long-term contracts, some through to 2030 and the rest through to 2035. Capital Power and Manulife Investment Management acquired the facility from an affiliate of OMERS (the Ontario Municipal Employees’ Retirement System). Capital Power is managing and operating the facility…