Maxim Power reserves gas turbine for Prairie Lights

Executive Summary

• Maxim Power Corp. has entered into a reservation agreement with GE Vernova to secure a manufacturing slot for a 7HA.02 gas turbine and generator package, with a target delivery by 2030, for its Prairie Lights Power Project.
• The agreement requires a non-refundable deposit payable in 2026, which will be credited toward the final purchase price under a definitive sales agreement to be negotiated in good faith.
• The company anticipates total project spending of up to $60 million in 2026, to be funded by cash on hand and operating cash flow, while noting that regulatory permit amendments for the new turbine model are expected to be routine.

Key Details

• Agreement Type: Gas turbine and generator reservation agreement with GE Vernova (NYSE: GEV).
• Equipment: 7HA.02 gas turbine and generator package.
• Delivery Timeline: Target delivery by 2030.
• Financial Terms:
  • Non-refundable deposit required to hold the manufacturing slot.
  • Deposit is payable in 2026.
  • Deposit will be credited toward the final purchase price in the definitive sales agreement.
  • Final purchase price to be agreed upon in the definitive agreement.
• Project Context:
  • The unit is for the permitted 400-megawatt Prairie Lights power project near Grande Prairie, Alberta.
  • The 7HA.02 is an updated model of the currently approved gas turbine in the project's regulatory permits.
  • An amendment to project regulatory permits is required but is anticipated to be routine in nature.
• Financial Position & Spending:
  • Total project spending anticipated for 2026: up to $60 million.
  • Funding source: Cash on hand and cash flow from operations.
  • Current liquidity: Approximately $84 million total, including approximately $59 million of unrestricted cash.
• Strategic Outlook: Management expressed encouragement regarding government signals from Alberta and Canada regarding the importance of reliable and dispatchable electricity.

Notable Quotes

• "The corporation continues to advance all aspects of project development for Prairie Lights and anticipates total project spending during 2026 of up to $60-million."
• "The corporation is highly encouraged by recent actions of both the government of Alberta and the government of Canada, both of which have signalled the importance of access to reliable and dispatchable electricity to support vibrant and growing Albertan and Canadian economies."