McElvaine Value Fund on Maxim Power Corp.
Thesis
Maxim Power is an independent power producer whose primary asset is a 300 MW combined-cycle natural gas plant in Alberta. The company is also developing the permitted 400 MW Prairie Lights project near Grande Prairie, creating meaningful additional optionality. Alberta power prices weakened materially in 2026, but management responded by operating the existing plant opportunistically rather than maximizing uneconomic production. The company is deploying its cash toward Prairie Lights and has secured a 2030 turbine slot while pursuing several other potential opportunities. Maxim carries net cash and has very high insider ownership, giving it financial flexibility while management develops these projects. McElvaine views the operating picture as mixed rather than impaired and believes patience is required.
“Several other 'irons in the fire'. Patience is required.”
Key risks
- Alberta power pool prices have collapsed, reducing economics for the existing generating asset.
- Prairie Lights and other development projects require capital and successful execution before generating value.