TransAlta Advances its Clean Energy Investment Plan
TransAlta Corporation (TransAlta or the Company) (TSX: TA) (NYSE: TAC) announced today that it has entered into an agreement with Kineticor Holdings Limited Partnership #2 to indirectly acquire two 230 MW Siemens F class gas turbines and related equipment for $84 million. The transaction also results in the Company assuming long-term non-unit contingent power purchase agreements starting in late 2023 with Shell Energy North America (Canada) (Shell). TransAlta will redeploy these assets to its Sundance site as part of its strategy to repower Sundance Unit 5 to a highly efficient combined cycle unit by integrating these gas turbines into the existing steam turbine at Sundance Unit 5.
This transaction has significant benefits, including:
Advances the Company’s strategy of becoming a low cost, low emissions power generation company;
Significantly reduces TransAlta’s post-2020 merchant risk by securing between 210 MW and 420 MW of long-term power contracts with Shell, a strong investment grade company that is committed to providing more and cleaner energy for Alberta;
Reduces the time to design and construct the repowered combined cycle unit by three to six months;
Results in a lower capital outlay, by approximately $230 million, for the repowered combined cycle strategy;
Provides the Company with more operational flexibility by integrating two gas turbines into one steam turbine (rather than two steam turbines); and
Maintains the option to repower the Keephills 1 unit to a combined cycle unit or to convert the unit to gas via a boiler conversion at a later date, depending in each case on market fundamentals.
The Sundance 5 repowered combined cycle unit will have a capacity of approximately 730 MW and is expected to cost approximately $760 million, well below a greenfield combined cycle project. TransAlta expects to achieve commercial operation in 2023.
The acquisition advances our repowering strategy in Alberta and increases our contractedness which will help de-risk our business as we move into a fully merchant Alberta market starting in 2021,- said Dawn Farrell, President and Chief Executive Officer of TransAlta. We are very pleased for the opportunity to have Shell as a major customer and look forward to working with them on this opportunity to provide low cost, clean and reliable power for Albertans.
About TransAlta Corporation:
TransAlta owns, operates and develops a diverse fleet of electrical power generation assets in Canada, the United States and Australia with a focus on long-term shareholder value. TransAlta provides municipalities, medium and large industries, businesses and utility customers with clean, affordable, energy efficient and reliable power. Today, TransAlta is one of Canada’s largest producers of wind power and Alberta’s largest producer of hydro-electric power. For over 100 years, TransAlta has been a responsible operator and a proud community-member where its employees work and live. TransAlta aligns its corporate goals with the UN Sustainable Development Goals and has been recognized by CDP (formerly Climate Disclosure Project) as an industry leader on Climate Change Management. TransAlta is proud to have achieved the Silver level PAR (Progressive Aboriginal Relations) designation by the Canadian Council for Aboriginal Business.
For more information about TransAlta, visit its web site at transalta.com.
Forward Looking Information
This news release contains certain information that is forward-looking and is subject to important risks and uncertainties (such statements are usually accompanied by words such as may, will, should, estimate, intend or other similar words). Specifically, this news release contains forward-looking information with respect to, among other things: the transaction with Kineticor Holdings Limited Partnership #2, including the cost and timing to close; the intention to redeploy the gas turbines to its Sundance site as part of its strategy to repower Sundance Unit 5 to a highly efficient combined cycle unit; integrating the gas turbines into the existing steam turbine;reducing the time to permit, design and construct the repowered combined cycle unit by three to six months; the lower capital outlay of approximately $230 million for the repowered combined cycle strategy, compared to what was discussed during the Company’s Investor Day; provides the Company with more operational flexibility; the plans pertaining to repowering the Keephills 1 unit to a combined cycle unit or the potential conversion of the unit to gas via a boiler conversion at a later date; the Sundance 5 repowered combined cycle having a capacity of approximately 730 MW with an expected cost of approximately $760million; and that commercial operation will be achieved in 2023. All forward-looking information reflect the Company’s beliefs and assumptions based on information available at the time the statements were made and as such are not guarantees of future performance. The forward-looking statements are subject to a number of risks and uncertainties that may cause actual performance, events or results to differ materially from those contemplated by the forward-looking statements, which include: fluctuations in demand, market prices and the availability of fuel supplies to support the conversion of Sundance Unit 5 into highly efficient combined cycle natural gas units; changes in the current or anticipated legislative, regulatory and political environments; the construction and permitting of the repowering of Sundance Unit 5;environmental requirements and changes in, or liabilities under, these requirements; and other risks and uncertainties contained in the Company’s Management Proxy Circular dated March 26, 2019 and its Annual Information Form and Management’s Discussion and Analysis for the year ended December 31, 2018, filed under the Company’s profile with the Canadian securities regulators on www.sedar.com and the U.S. Securities and Exchange Commission on www.sec.gov. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this press release. TransAlta undertakes no obligation to update or revise any forward-looking information except as required by law. For additional information on the assumptions made, and the risks and uncertainties which could cause actual results to differ from those in the forward-looking information, refer to the Company’s Annual Report and Management’s Discussion and Analysis filed under the Company’s profile on SEDAR at www.sedar.com and with the U.S. Securities and Exchange Commission at www.sec.gov.
TransAlta Advances its Clean Energy Investment Plan
The Board of Directors of TransAlta Corporation (TSX: TA) (NYSE: TAC) today declared a quarterly dividend of $0.04 per common share payable on January 1, 2020 to shareholders of record at the close of business on December 2, 2019.
The Board of Directors also declared the following quarterly dividend on its Cumulative Redeemable Rate Reset First Preferred Shares for the period starting from and including September 30, 2019 up to but excluding December 31, 2019:
Preferred Shares
TSX Stock Symbol
Dividend Rate
Dividend Per Share
Record Date
Payment Date
Series A
TA.PR.D
2.709%
$0.16931
December 2, 2019
December 31, 2019
Series B*
TA.PR.E
3.668%
$0.23113
December 2, 2019
December 31, 2019
Series C
TA.PR.F
4.027%
$0.25169
December 2, 2019
December 31, 2019
Series E
TA.PR.H
5.194%
$0.32463
December 2, 2019
December 31, 2019
Series G
TA.PR.J
4.988%
$0.31175
December 2, 2019
December 31, 2019
*Please note the quarterly floating rate on the Series B Preferred Shares will be reset every quarter.
All currency is expressed in Canadian dollars except where noted. When the dividend payment date falls on a weekend or holiday, the payment is made the following business day.
About TransAlta Corporation:
TransAlta owns, operates and develops a diverse fleet of electrical power generation assets in Canada, the United States and Australia with a focus on long-term shareholder value. TransAlta provides municipalities, medium and large industries, businesses and utility customers with clean, affordable, energy efficient and reliable power. Today, TransAlta is one of Canada’s largest producers of wind power and Alberta’s largest producer of hydro-electric power. For over 100 years, TransAlta has been a responsible operator and a proud community-member where its employees work and live. TransAlta aligns its corporate goals with the UN Sustainable Development Goals and has been recognized by CDP (formerly Climate Disclosure Project) as an industry leader on Climate Change Management. TransAlta is proud to have achieved the Silver level PAR (Progressive Aboriginal Relations) designation by the Canadian Council for Aboriginal Business.
For more information about TransAlta, visit its web site at transalta.com.
TransAlta Advances its Clean Energy Investment Plan
TransAlta Corporation (TransAlta) (TSX: TA) (NYSE: TAC) will release its third quarter 2019 results before markets open on Thursday, November 7, 2019. A conference call and webcast to discuss the results will be held for investors, analysts, members of the media and other interested parties the same day beginning at 9:00 a.m. Mountain Time (11:00 a.m. ET). The media will be invited to ask questions following analysts.
Please contact the conference operator five minutes prior to the call, noting TransAlta Corporation as the company.
Dial-in numbers Third Quarter 2019 Results:
Toll-free North American participants call: 1-888-231-8191
Outside of Canada & USA call: 1-647-427-7450
A link to the live webcast will be available on the Investor Centre section of TransAlta’s website at https://transalta.com/investors/events-and-presentations. If you are unable to participate in the call, the instant replay is accessible at 1-855-859-2056 (Canada and USA toll free) with TransAlta pass code 5275707 followed by the # sign. A transcript of the broadcast will be posted on TransAlta’s website once it becomes available.
About TransAlta Corporation:
TransAlta owns, operates and develops a diverse fleet of electrical power generation assets in Canada, the United States and Australia with a focus on long-term shareholder value. TransAlta provides municipalities, medium and large industries, businesses and utility customers with clean, affordable, energy efficient and reliable power. Today, TransAlta is one of Canada’s largest producers of wind power and Alberta’s largest producer of hydro-electric power. For over 100 years, TransAlta has been a responsible operator and a proud community-member where its employees work and live. TransAlta aligns its corporate goals with the UN Sustainable Development Goals and has been recognized by CDP (formerly Climate Disclosure Project) as an industry leader on Climate Change Management. TransAlta is proud to have achieved the Silver level PAR (Progressive Aboriginal Relations) designation by the Canadian Council for Aboriginal Business.
For more information about TransAlta, visit its web site at transalta.com.
TransAlta Advances its Clean Energy Investment Plan
TransAlta Corporation (TransAlta) (TSX: TA)(NYSE: TAC) and SemCAMS Midstream ULC (SemCAMS), a subsidiary of SemGroup Corporation (NYSE:SEMG) announce today that they have entered into definitive agreements to develop, construct and operate a new cogeneration facility at the Kaybob South No. 3 sour gas processing plant. The Kaybob facility is strategically located in the Western Canadian Sedimentary Basin and accepts natural gas production out of the Montney and Duvernay formations. TransAlta will construct the cogeneration plant which will be jointly owned, operated and maintained with SemCAMS. The capital cost of the new cogeneration facility is expected to be approximately $105 million and the project is expected to deliver approximately $18 million in annual EBITDA. TransAlta will be responsible for all capital costs during construction and, subject to the satisfaction of certain conditions, SemCAMS will purchase a fifty percent (50%) interest in the new cogeneration facility as of the commercial operation date, which is targeted for late 2021.
The highly efficient cogeneration facility will have an installed capacity of 40 MW. All of the steam production and approximately half of the electricity output will be contracted to SemCAMS under a 13-year fixed price contract. The remaining electricity generation will be sold into the Alberta Power market by TransAlta. The agreement contemplates an automatic 7-year extension subject to certain termination rights. The development of the cogeneration facility at Kaybob South No. 3 will eliminate the need for traditional boilers and reduce annual carbon emissions of the operation by approximately 100,000 tonnes CO2e, which is equivalent to removing 20,000 vehicles off Alberta roads.
We are very pleased to collaborate with SemCAMS on this project which will enhance their operational and energy efficiency through on-site cogeneration,- said Dawn Farrell, President and Chief Executive Officer of TransAlta. This project represents an important addition to our on-site cogeneration business and we welcome SemCAMS as a valued new customer and partner.
We are excited to partner with TransAlta on this highly strategic project which will enable SemCAMS to further reduce the annual carbon emissions from its facility while lowering operating expenses for the Kaybob 3 producers- said Dave Gosse, President of SemCAMS. The cogeneration facility is an important addition to SemCAMS growing midstream portfolio and furthers SemCAMS focus on providing reliable, low-cost processing solutions to our customers.
About TransAlta Corporation:
TransAlta owns, operates and develops a diverse fleet of electrical power generation assets in Canada, the United States and Australia with a focus on long-term shareholder value. TransAlta provides municipalities, medium and large industries, businesses and utility customers with clean, affordable, energy efficient and reliable power. Today, TransAlta is one of Canada’s largest producers of wind power and Alberta’s largest producer of hydro-electric power. For over 100 years, TransAlta has been a responsible operator and a proud community-member where its employees work and live. TransAlta aligns its corporate goals with the UN Sustainable Development Goals and has been recognized by CDP (formerly Climate Disclosure Project) as an industry leader on Climate Change Management. TransAlta is proud to have achieved the Silver level PAR (Progressive Aboriginal Relations) designation by the Canadian Council for Aboriginal Business.
For more information about TransAlta, visit its web site at transalta.com.
About SemCAMS
SemCAMS Midstream ULC is a gathering and processing business that provides midstream solutions from the wellhead to the wholesale market place in Western Canada. As one of Alberta’s largest licensed gas processors, SemCAMS Midstream owns and operates six gas processing plants located in the heart of the Western Canadian Sedimentary Basin with combined licensed capacity of approximately 2 billion cubic feet per day. Strategically positioned to accept production out of the Montney and Duvernay area, the assets include more than 700 miles of natural gas gathering and transportation pipelines as well as oil gathering and emulsion. SemCAMS Midstream is based in Calgary, Alberta and is a joint venture between SemGroup Corporation® (NYSE: SEMG) and KKR.
Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words expect, anticipate, continue, estimate, may, will, project, should, propose, plans, intends and similar expressions are intended to identify forward-looking information or statements. More particularly, and without limitation, this news release contains forward-looking statements and information relating to: the development and construction of the cogeneration facility at the Kaybob South No. 3 sour gas processing plant; the construction and ownership of the cogeneration plant by TransAlta; construction costs being equal to approximately $105 million the delivery of approximately $18 million in annual EBITDA; the acquisition by SemCAMS of a 50% undivided interest in the cogeneration facility on the commercial operation date; the key terms of the definitive agreement and characteristics of the cogeneration plant, including having electricity generating capacity of 40 MW; a portion of the electricity generation being sold into the Alberta market on a merchant basis; the anticipated reduction in CO2e; the anticipated commercial operation date. These statements are based on TransAlta’s and SemCAMS’s beliefs and assumptions based on information available at the time the assumptions were made, including assumptions pertaining to: the operation of the Kaybob South No. 3 sour gas processing plant; the Alberta energy-only market design; the current environmental and carbon regulations; and no significant changes to the labour market in Alberta. These statements are subject to a number of risks and uncertainties that may cause actual results to differ materially from those contemplated by the forward-looking statements. Some of the factors that could cause such differences include: failure to obtain necessary regulatory approvals; delays in the construction of the generation facility; increased construction costs; legislative or regulatory developments, including as it pertains to carbon pricing; changes in economic and competitive conditions; changes in the demand and price for natural gas and electricity; and other risk factors contained in the TransAlta’s annual information form and management’s discussion and analysis. Readers are cautioned not to place undue reliance on these forward-looking statements or forward-looking information, which reflect TransAlta’s and SemCAMS’s expectations only as of the date of this news release. TransAlta and SemCAMS disclaim any intention or obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Note: All financial figures are in Canadian dollars unless otherwise indicated.
TransAlta Advances its Clean Energy Investment Plan
TransAlta Corporation (TransAlta or the Company) (TSX: TA)(NYSE: TAC) announced today that after taking into account all election notices received for the conversion of the Cumulative Redeemable Rate Reset Preferred Shares, Series G (the Series G Shares) into Cumulative Redeemable Floating Rate Preferred Shares, Series H (the Series H Shares), there were only 140,730 Series G Shares tendered for conversion, which is less than the one million shares required to give effect to conversions into Series H Shares. As a result, none of the Series G Shares will be converted into Series H Shares on September 30, 2019.
About TransAlta Corporation:
TransAlta owns, operates and develops a diverse fleet of electrical power generation assets in Canada, the United States and Australia with a focus on long-term shareholder value. We provide municipalities, medium and large industries, businesses and utility customers clean, affordable, energy efficient, and reliable power. Today, we are one of Canada’s largest producers of wind power and Alberta’s largest producer of hydro-electric power. For over 100 years, TransAlta has been a responsible operator and a proud community-member where its employees work and live. TransAlta aligns its corporate goals with the UN Sustainable Development Goals and we have been recognized by CDP (formerly Climate Disclosure Project) as an industry leader on Climate Change Management. We are also proud to have achieved the Silver level PAR (Progressive Aboriginal Relations) designation by the Canadian Council for Aboriginal Business.
For more information about TransAlta, visit our web site at transalta.com.
TransAlta Advances its Clean Energy Investment Plan
TransAlta Corporation (TransAlta or the Company) (TSX: TA) (NYSE: TAC) announces today its Clean Energy Investment Plan, which includes converting its existing Alberta coal assets to natural gas and advancing its leadership position in renewable energy. The total cost of the plan is expected to be approximately $2 billion which includes approximately $800 million of renewable energy projects already under construction.
TransAlta’s plan includes converting three of its existing Alberta thermal units to gas in 2020 and 2021 by replacing existing coal burners with natural gas burners. The Company will also convert two of its units to highly efficient combined cycle natural gas units in the late 2023 to late 2024 period. The highlights of these gas conversion investments include:
Positioning TransAlta’s fleet as a low-cost generator in the Alberta energy-only market;
Generating attractive returns by leveraging the Company’s existing infrastructure;
Significantly extending the life and cash flows of the Alberta thermal assets; and
Significantly reducing air emissions and costs.
The Company’s Clean Energy Investment Plan also consists of the four wind projects in the United States and Alberta that are currently under construction. These projects are underpinned by long-term power purchase agreements with highly creditworthy counterparties.
The Clean Energy Investment Plan will be funded from the cash raised earlier this year through the strategic investment with an affiliate of Brookfield Renewable Partners, cash generated from operations, and through TransAlta Renewables Inc. In addition to funding the plan, the Company remains committed to returning up to $250 million to shareholders over the next three years through share repurchases and reducing its corporate level debt by $400 million in 2020.
The Company has adopted, based on TransAlta level deconsolidated cash flows, a Debt/EBITDA target of 3.0x or less, and a dividend policy of returning between 10% and 15% of TransAlta deconsolidated Funds from Operations to common shareholders. The credit metrics and dividend policy are being presented on a deconsolidated basis, allowing investors to understand how the dividends received from TransAlta Renewables is either being returned or invested for TransAlta shareholders.
Investor Day
TransAlta will be hosting an Investor Day later today at 9:30 am ET during which our executive team will discuss the announcements above in greater detail. A link to the presentation and live webcast will be available on the Investors section of TransAlta’s website at https://transalta.com/investors/events-and-presentations.
About TransAlta Corporation:
TransAlta owns, operates and develops a diverse fleet of electrical power generation assets in Canada, the United States and Australia with a focus on long-term shareholder value. We provide municipalities, medium and large industries, businesses and utility customers clean, affordable, energy efficient, and reliable power. Today, we are one of Canada’s largest producers of wind power and Alberta’s largest producer of hydro-electric power. For over 100 years, TransAlta has been a responsible operator and a proud community-member where its employees work and live. TransAlta aligns its corporate goals with the UN Sustainable Development Goals and we have been recognized by CDP (formerly Climate Disclosure Project) as an industry leader on Climate Change Management. We are also proud to have achieved the Silver level PAR (Progressive Aboriginal Relations) designation by the Canadian Council for Aboriginal Business.
For more information about TransAlta, visit our web site at transalta.com.
Forward Looking Information
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws (collectively referred to as forwarding-looking statements). All forward-looking statements are based on our beliefs as well as assumptions based on information available at the time the assumption was made. These statements are not guarantees of our future performance, events or results and are subject to a number of significant risks, uncertainties and other important factors that could cause our actual performance, events or results to be materially different from those set out in the forward-looking statements. More particularly, and without limitation, this news release contains forward-looking statements relating to: the Clean Energy Investment Plan, including the cost and associated timing; the benefits expected to be realized from the Clean Energy Investment Plan; the source of funds for the Clean Energy Investment Plan; the return of capital to shareholders and reduction of corporate debt; satisfying the deconsolidated debt/EBITDA target of 3.0x of less; and implementing or maintaining a dividend policy of returning between 10% and 15% of deconsolidated TransAlta funds from operations. The forward-looking statements are subject to a number of risks and uncertainties that may cause actual performance, events or results to differ materially from those contemplated by the forward-looking statements, which include: fluctuations in demand, market prices and the availability of fuel supplies to support the conversion of two coal units into highly efficient combined cycle natural gas units; the satisfaction of all closing conditions associated with the $400 million preferred share subscription in October 2020; changes in the current or anticipated legislative, regulatory and political environments; environmental requirements and changes in, or liabilities under, these requirements; and other risks and uncertainties contained in the Company’s Management Proxy Circular dated March 26, 2019 and its Annual Information Form and Management’s Discussion and Analysis for the year ended December 31, 2018, filed under the Company’s profile with the Canadian securities regulators on www.sedar.com and the U.S. Securities and Exchange Commission on www.sec.gov. Readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on these forward-looking statements, which reflect TransAlta’s expectations only as of the date of this news release. TransAlta disclaims any intention or obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Non-IFRS Measures
Certain financial measures identified in this news release, including EBITDA and funds from operations (FFO), do not have a standardized meaning under International Financial Reporting Standards (IFRS) and may not be comparable to similar measures presented by other entities. Presenting these items from period to period provides management and investors with the ability to evaluate earnings and cash flow trends more readily in comparison with prior periods results and, in the case of the deconsolidated FFO, to allow shareholders to understand how the dividend at TransAlta Renewables is being either returned or invested for TransAlta shareholders. These measures should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS. Deconsolidated TransAlta FFO can be reconciled to TransAlta FFO (as defined in the most recently filed Management’s Discussion and Analysis of the Company) by subtracting the funds from operations of TransAlta Renewables, subtracting any distributions made in respect of the Company’s non-controlling interests (namely, to Canadian Power Holdings Inc.) and adding back the dividends received from TransAlta Renewables. For further information on non-IFRS financial measures, see our most recently filed Management’s Discussion and Analysis, filed with Canadian securities regulators on www.sedar.com and the Securities and Exchange Commission on www.edgar.com and the Investor Day presentation dated September 16, 2019 available on the Company’s website investor centre.
TransAlta Advances its Clean Energy Investment Plan
TransAlta Corporation (TransAlta or the Company) (TSX: TA; NYSE: TAC) announced today that it does not intend to exercise its right to redeem all or any portion of the currently outstanding Cumulative Redeemable Rate Reset First Preferred Shares, Series G (Series G Shares) (TSX: TA.PR.J) on September 30, 2019 (the Conversion Date).
As a result, and subject to certain conditions, the holders of the Series G Shares will have the right to elect to convert all or any of their Series G Shares into Cumulative Redeemable Floating Rate First Preferred Shares, Series H of the Company (Series H Shares) on the basis of one Series H Share for each Series G Share on the Conversion Date.
As provided in the share terms of the Series G Shares, the foregoing conversion right is subject to the conditions that: (i) if TransAlta determines that there would remain outstanding immediately following the conversion, less than 1,000,000 Series G Shares, all remaining Series G Shares shall be converted automatically into Series H Shares on a one-for one basis effective September 30, 2019; or (ii) if TransAlta determines that there would remain outstanding immediately after the conversion, less than 1,000,000 Series H Shares, holders of Series G Shares shall not be entitled to convert their shares into Series H Shares on the Conversion Date. There are currently 6,000,000 Series G Shares outstanding.
With respect to any Series G Shares that remain outstanding after September 30, 2019, holders thereof will be entitled to receive quarterly fixed cumulative preferential cash dividends, if, as and when declared by the Board of Directors of TransAlta. The annual dividend rate for the Series G Shares for the five-year period from and including September 30, 2019 to but excluding September 30, 2024, will be 4.988%, being equal to the five-year Government of Canada bond yield of 1.188% determined as of today plus 3.80%, in accordance with the terms of the Series G Shares.
With respect to any Series H Shares that may be issued on September 30, 2019, holders thereof will be entitled to receive quarterly floating rate cumulative preferential cash dividends, if, as and when declared by the Board of Directors of TransAlta. The annual dividend rate for the 3-month floating rate period from and including September 30, 2019 to but excluding December 31, 2019 will be 5.438%, being equal to the annual rate for the most recent auction of 90-day Government of Canada Treasury Bills of 1.638% plus 3.80%, in accordance with the terms of the Series H Shares (the Floating Quarterly Dividend Rate). The Floating Quarterly Dividend Rate will be reset every quarter.
The Series G Shares are issued in book entry only form and must be purchased or transferred through a participant in the CDS depository service (CDS Participant). All rights of holders of Series G Shares must be exercised through CDS or the CDS Participant through which the Series G Shares are held. The deadline for the registered shareholder to provide notice of exercise of the right to convert Series G Shares into Series H Shares is 3:00 p.m. (MST) / 5:00 p.m. (EST) on September 15, 2019. Any notices received after this deadline will not be valid. As such, holders of Series G Shares who wish to exercise their right to convert their shares should contact their broker or other intermediary for more information and it is recommended that this be done well in advance of the deadline in order to provide the broker or other intermediary with time to complete the necessary steps.
If TransAlta does not receive an election notice from a holder of Series G Shares during the time fixed therefor, then the Series G Shares shall be deemed not to have been converted (except in the case of an automatic conversion). Holders of the Series G Shares and the Series H Shares will have the opportunity to convert their shares again on September 30, 2024, and every five years thereafter as long as the shares remain outstanding. For more information on the terms of the Series G Shares and the Series H Shares, please see TransAlta’s articles of amalgamation, including the share terms and shares in series schedule attached thereto as Schedule A, which are available on the Company’s website under the Investor Centre (Governance).
About TransAlta Corporation:
TransAlta owns, operates and develops a diverse fleet of electrical power generation assets in Canada, the United States and Australia with a focus on long-term shareholder value. We provide municipalities, medium and large industries, businesses and utility customers clean, affordable, energy efficient, and reliable power. Today, we are one of Canada’s largest producers of wind power and Alberta’s largest producer of hydro-electric power. For over 100 years, TransAlta has been a responsible operator and a proud community-member where its employees work and live. TransAlta aligns its corporate goals with the UN Sustainable Development Goals and we have been recognized by CDP (formerly Climate Disclosure Project) as an industry leader on Climate Change Management. We are also proud to have achieved the Silver level PAR (Progressive Aboriginal Relations) designation by the Canadian Council for Aboriginal Business.
For more information about TransAlta, visit our web site at transalta.com.
Forward Looking Information
This news release contains certain information that is forward-looking and is subject to important risks and uncertainties (such statements are usually accompanied by words such as may, will, should, estimate, intend or other similar words). Specifically, this news release contains forward-looking information with respect to the Company, the Series G Shares and the Series H Shares, including but not limited to future conversions, redemptions and dividends. All forward-looking information reflect the Company’s beliefs and assumptions based on information available at the time the statements were made and as such are not guarantees of future performance. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this press release. TransAlta undertakes no obligation to update or revise any forward-looking information except as required by law. For additional information on the assumptions made, and the risks and uncertainties which could cause actual results to differ from those in the forward-looking information, refer to the Company’s Annual Report and Management’s Discussion and Analysis, and the risks set out in the prospectus supplement dated August 8, 2014 relating to the issuance of the Series G Shares, filed under the Company’s profile on SEDAR at www.sedar.com and with the U.S. Securities and Exchange Commission at www.sec.gov.
TransAlta Advances its Clean Energy Investment Plan
Year-to-Date Highlights
The Pioneer Pipeline transported first gas four months ahead of schedule to TransAlta’s generating units at Sundance and Keephills
On July 4, 2019, TransAlta issued final notice to proceed (FNTP) for the coal-to-gas conversion on Sundance Unit 6 with a target to complete the conversion by the second half of 2020
Signed an agreement to purchase a 49% interest in the Skookumchuck Wind Energy Facility upon commercial operation, which is expected in December of 2019; the 136.8 MW wind facility, located in Washington State near the Company’s Centralia Plant, has a 20-year power purchase agreement with an investment grade counterparty
Entered into an agreement to acquire 100% of Keephills 3 from Capital Power in exchange for Genesee 3 enabling full flexibility on coal-to-gas execution strategy
Issued the initial tranche of $350 million of unsecured, subordinated debentures to an affiliate of Brookfield Renewable Partners and its institutional partners (collectively Brookfield) as part of the strategic partnership that recognizes the anticipated future value of TransAlta’s hydro assets, enhances its financial position to execute its strategy, and accelerates the opportunity to return capital to shareholders
Filed a normal course issuer bid (NCIB) and purchased and cancelled 2,398,200 common shares at an average price of $8.57 per common share, for a total cost of $21 million
Funds from operations were $155 million, a decrease of $33 million compared with 2018 and in line with lower expectations from Canadian Gas segment
Free cash flow (1)(2) was $49 million in line with expectations
2019 free cash flow guidance of $270 to $330 million confirmed to the top end of the range
Todd Stack appointed Chief Financial Officer and John Kousinioris appointed Chief Operating Officer
TransAlta Corporation (TransAlta or the Company) (TSX: TA) (NYSE: TAC) today reported its second quarter and year-to-date 2019 financial results, which reflect solid operational and financial results for the quarter and were in line with expectations.
Results for the quarter demonstrate the competitiveness of our business structure and asset diversification,- said Dawn Farrell, President and Chief Executive Officer. We are pleased with the improving margins and performance of our Canadian Coal fleet as we transition away from the Power Purchase Arrangements and execute on our coal-to-gas plan. As we look forward, we are seeing improving fundamentals in the Alberta market and continue work to competitively position our Alberta coal assets to deliver our coal-to-gas strategy, commented Mrs. Farrell.
Comparable EBITDA(1)(2)(3) for the three and six months ended June 30, 2019, was $215 million and $436 million, a decline of $33 million and $48 million compared to 2018 and in line with guidance expectations. This decline largely reflects the expected roll-off of contract cash flows for the Mississauga and Poplar Creek assets within the Canadian Gas segment. In the three and six months ended June 30, 2018, comparable EBITDA included $32 million and $70 million from these contracts.
The Company delivered free cash flow of $49 million and $144 million, respectively, for the three and six months ended June 30, 2019. Free cash flow decreased by $47 million and $33 million compared to the same periods in 2018, mainly driven by lower comparable EBITDA from Canadian Gas and planned outage capital in Canadian Coal in 2019.
The Company’s results were in line with expectations as the roll-off in expected contract cash flows were met with improved EBITDA margins in the Canadian Coal fleet resulting from lower fuel and carbon compliance costs and lower operating costs. In addition, performance from the Energy Marketing segment was stronger than the same period in 2018. Overall, the Company’s cash flows continued to benefit from higher power prices during the year and asset diversification within its portfolio.
Based on the current market outlook for the balance of the year, TransAlta is tracking to achieve the upper end of its free cash flow guidance.
An Investor Day will be held in Toronto on September 16, 2019 to showcase current and future growth opportunities, including the coal-to-gas conversions.
Financial and Operating Highlights
Free cash flow was $144 million, a decrease of $33 million
On August 2, 2019, the Corporation announced that it entered into an agreement to acquire Capital Power Corporation’s 50 per cent ownership interest in the Keephills 3 facility in exchange for TransAlta’s 50 per cent ownership interest in the Genesee 3 facility. This consolidates TransAlta’s control and operation of the Keephills 3 facility, allowing the Company greater flexibility to pursue our coal-to-gas conversions and optimize our fleet decisions. The Company anticipates that the transaction will be neutral to both comparable EBITDA and funds from operations. We expect to recognize a net pre-tax loss in the range of $155 million to $205 million, mainly resulting from the write-down to fair value of TransAlta’s existing 50 per cent of Keephills 3.
Comparable EBITDA
(in CAD$ millions)
3 Months Ended
6 Months Ended
June 30, 2019
June 30, 2018
June 30, 2019
June 30, 2018
Canadian Coal (1)
66
47
129
111(1)
U.S. Coal
19
25
9
50
Canadian Gas
31
61
61
122
Australian Gas
31
31
61
62
Wind and Solar
47
49
116
117
Hydro
37
49
64
66
Energy Marketing
13
6
32
(4)
Corporate
(29)
(20)
(36)
(40)
Total Comparable EBITDA(1)
215
248
436
484(1)
Canadian Coal: Comparable EBITDA for the three and six months ended June 30, 2019 was $19 million and $18 million higher, compared to 2018, excluding the one-time receipt of $157 million for the termination of the Sundance B and C PPAs in the first quarter of 2018. This largely reflects the combined impact of higher realized prices, lower variable costs and lower OM&A costs. Comparable gross margin per MWh for the three and six months ended June 30, 2019, improved by $5/MWh and $2/MWh, respectively, compared to the same periods in 2018.
S. Coal: Comparable EBITDA for the three and six months ended June 30, 2019, was down $6 million and $41 million, respectively, compared to 2018. During the first quarter of 2019, the Company incurred cash losses of $25 million on its day ahead hedging position, due to an isolated and extreme pricing event and unplanned outage at US Coal. The remaining year-to-date comparable EBITDA variance of $16 million was related to the fact that in 2018 TransAlta fulfilled more of its contracted volumes with lower priced power purchases. In 2019, lower priced power to service its contracted volumes was not available until later in the year, requiring additional higher cost production from the plant to support TransAlta contracts.
Canadian Gas: Comparable EBITDA for the three and six months ended June 30, 2019 decreased by $30 million and $61 million, respectively, compared to the same periods in 2018, mainly due to the expiry of the Mississauga contract on December 31, 2018 and lower scheduled payments from the Poplar Creek finance lease. In the three and six months ended June 30, 2018, comparable EBITDA included $32 million and $70 million of EBITDA, respectively, from the Mississauga contract and Poplar Creek contract.
Australian Gas: Comparable EBITDA for the three and six months ended June 30, 2019 was consistent compared to 2018, which was expected due to the nature of these contracts.
Wind and Solar: Comparable EBITDA for the three and six months ended June 30, 2019 was consistent with the same periods in 2018, as lower overall production was mostly offset by insurance proceeds from a tower fire at Summerview. OM&A costs were up slightly due to increased contractor costs.
Hydro: Comparable EBITDA for the three and six months ended June 30, 2019 decreased by $12 million and $2 million, respectively, compared to the same periods in 2018, mainly due to strong results in 2018 and decreased opportunities for ancillary services in 2019.
Energy Marketing: For the three and six months ended June 30, 2019, comparable EBITDA was higher by $7 million and $36 million, respectively, compared to the same periods in 2018 due to strong results across all markets with particularly strong performance from the US Western markets. In addition, for the three and six months ended June 30, 2019, Energy Marketing generated $4 million and $22 million, respectively, in unrealized mark-to-market gains, which were not included in comparable EBITDA. The cash flow from the 2019 unrealized value is expected to be realized in future periods.
Corporate: During the quarter, corporate costs were negatively impacted by the total return swap related to the Company’s share-based payment plan as well as higher legal fees. For the year-to-date period, corporate costs were positively impacted by the realized net gain of $9 million from the total return swap on our share-based payment plans, partially offset by increased legal fees.
Consolidated Earnings Review
Net earnings attributable to common shareholders during the second quarter of 2019 was nil compared to a net loss of $105 million last year, mainly due to the impact of the Alberta tax rate reduction, improved margins at Canadian Coal and strong performance in the Energy Marketing segment. Net loss attributable to common shareholders for the six months ended June 30, 2019 was $65 million compared to a net loss of $40 million for the same period in 2018. The net loss for the six months ended June 30, 2018 included the one-time receipt of $157 million ($115 million after tax) for the termination of the Sundance B and C PPAs. Excluding the termination payment, the year-to-date earnings improved by $90 million, due to the impact of the Alberta tax rate reduction, strong Alberta pricing, improved margins at Canadian Coal, lower year-to-date OM&A costs and lower interest expense, which was partially offset by a loss on sale of assets.
Total sustaining capital expenditures of $86 million were $32 million higher compared to 2018 primarily due to higher planned major maintenance in the Canadian Coal segment. There were no planned maintenance outages on operated power plants in the same periods in 2018. Total capital expenditures of $89 million, which includes productivity capital expenditures, were $29 million higher than 2018 and in-line with the Company’s guidance for the year.
Second Quarter and Year-to-Date 2019 Financial and Operational Highlights
In $CAD millions, unless otherwise stated
3 Months Ended
6 Months Ended
June 30, 2019
June 30, 2018
June 30, 2019
June 30, 2018
Adjusted availability (%)(2)(4)
83.8
85.8
86.7
90.1
Production (GWh) (4)
5,235
5,199
13,360
12,370
Revenue
497
446
1,145
1,034
Comparable EBITDA (2)
215
248
436
641
Net earnings (loss) attributable to common shareholders
(105)
(65)
(40)
FFO (2)
155
188
324
506
Cash Flow from Operating Activities
258
104
340
529
FCF (2)
49
96
144
334
Net earnings (loss) per common share
$(0.36)
$(0.23)
$(0.14)
FFO per share (2)
$0.55
$0.65
$1.14
$1.76
FCF per share (2)
$0.17
$0.33
$0.51
$1.16
Dividends declared per common share
$0.04
$0.04
$0.04
$0.08
TransAlta is in the process of filing its Consolidated Financial Statements and accompanying notes, as well as the associated Management’s Discussion & Analysis (MD&A). These documents will be available August 9, 2019 on the Investors section of TransAlta’s website at transalta.com or through SEDAR at www.sedar.com and EDGAR at www.sec.gov/edgar.shtml.
Conference call
TransAlta will hold a conference call and webcast at 9:00 a.m. MT (11:00 a.m. ET) today, August 9, 2019, to discuss our second quarter 2019 results. The call will begin with a short address by Dawn Farrell, President and CEO, and Todd Stack, Chief Financial Officer, followed by a question and answer period for investment analysts and investors. A question and answer period for the media will immediately follow. Please contact the conference operator five minutes prior to the call, noting TransAlta Corporation as the company and Chiara Valentini as moderator.
Dial-in numbers Second Quarter 2019 Results:
Toll-free North American participants call: 1-888-231-8191
Outside of Canada & USA call: 1-647-427-7450
A link to the live webcast will be available on the Investor Centre section of TransAlta’s website at https://transalta.com/investors/events-and-presentations. If you are unable to participate in the call, the instant replay is accessible at 1-855-859-2056 (Canada and USA toll free) with TransAlta pass code 5281588 followed by the # sign. A transcript of the broadcast will be posted on TransAlta’s website once it becomes available.
Notes
(1) Excluding the one-time receipt of $157 million in compensation received from the Balancing Pool for the early termination of the Sundance B and C Power Purchase Arrangements receivedin the first quarter of 2018
(2) These items are not defined under IFRS. Presenting these items from period to period provides management and investors with the ability to evaluate earnings trends more readily in comparison with prior periods results. Refer to the Discussion of Consolidated Results section of the Company’s MD&A for further discussion of these items, including, where applicable, reconciliations to measures calculated in accordance with IFRS.
(3) During the first quarter of 2019, we revised our approach to reporting adjustments to arrive at comparable EBITDA, mainly to be more comparable with other companies in the industry. Comparable EBITDA is now adjusted to exclude the impact of unrealized mark-to-market gains or losses. Both the current and prior period amounts have been adjusted to reflect this change.
(4) Availability and production include all generating assets (generation operations and finance leases that we operate).
About TransAlta Corporation:
TransAlta owns, operates and develops a diverse fleet of electrical power generation assets in Canada, the United States and Australia with a focus on long-term shareholder value. We provide municipalities, medium and large industries, businesses and utility customers clean, affordable, energy efficient, and reliable power. Today, we are one of Canada’s largest producers of wind power and Alberta’s largest producer of hydro-electric power. For over 100 years, TransAlta has been a responsible operator and a proud community-member where its employees work and live. TransAlta aligns its corporate goals with the UN Sustainable Development Goals and we have been recognized by CDP (formerly Climate Disclosure Project) as an industry leader on Climate Change Management. We are also proud to have achieved the Silver level PAR (Progressive Aboriginal Relations) designation by the Canadian Council for Aboriginal Business.
For more information about TransAlta, visit our web site at transalta.com.
Forward Looking Statements
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws (collectively referred to as forwarding-looking statements). All forward-looking statements are based on our beliefs as well as assumptions based on information available at the time the assumption was made and on management’s experience and perception of historical trends, current conditions, results and expected future developments, as well as other factors deemed appropriate in the circumstances. Forward-looking statements are not facts, but only predictions and generally can be identified by the use of statements that include phrases such as may, will, can, could, would, should, shall, believe, expect, estimate, anticipate, intend, plan, propose, project, forecast, foresee, potential, enable, continue and similar expressions. These statements are not guarantees of our future performance, events or results and are subject to a number of significant risks, uncertainties and other important factors that could cause our actual performance, events or results to be materially different from those set out in the forward-looking statements. More particularly, and without limitation, this news release contains forward-looking statements relating to: the coal-to-gas conversion for Sundance Unit 6; the Pioneer Pipeline driving lower fuel and carbon costs for the Canadian Coal fleet and improve EBITDA margins; ability to achieve the upper end of our FCF guidance; throughput of approximately 130 MMcf/day of natural gas flowing through the Pioneer Pipeline on November 1, 2019; improving fundamentals in the Alberta market; ability to competitively position the Alberta coal assets to deliver on the coal-to-gas strategy; the acquisition of the remaining 50% interest in Keephills 3 from Capital Power; purchasing a 49% interest in the Skookumchuck Wind Energy Facility upon commercial operation and the timing thereof; the closing of the second tranche of $400 million from Brookfield and the anticipated benefits thereof; andthe anticipated future value of TransAlta’s hydro assets. These statements are based on TransAlta’s beliefs and assumptions based on information available at the time the assumptions were made, including assumptions pertaining to: the Company’s ability to successfully defend against any existing or potential legal actions or regulatory proceedings; the closing of the second tranche of the Brookfield investment occurring and other risks to the Brookfield investment not materializing; no significant changes to regulatory, securities, credit or market environments; key assumptions pertaining to power prices remaining unchanged; our ownership of or relationship with TransAlta Renewables Inc. not materially changing; the Alberta hydro assets achieving their anticipated future value, cash flows and adjusted EBITDA; the anticipated benefits and financial results generated on the coal-to-gas conversions and the Company’s other strategies; and assumptions relating to the completion of the strategic partnership with and investment by Brookfield and proposed share buy-backs. The forward-looking statements are subject to a number of risks and uncertainties that may cause actual performance, events or results to differ materially from those contemplated by the forward-looking statements. Some of the factors that could cause such differences include: the failure of the second tranche of the Brookfield investment to close; the outcomes of existing or potential legal actions or regulatory proceedings not being as anticipated, including those pertaining to the Brookfield investment; fluctuations in demand, market prices and the availability of fuel supplies required to generate electricity; changes in the current or anticipated legislative, regulatory and political environments in the jurisdictions in which we operate; environmental requirements and changes in, or liabilities under, these requirements; the failure of the conditions precedent to the second tranche of the investment to be satisfied; and other risks and uncertainties contained in the Company’s Management Proxy Circular dated March 26, 2019 and its Annual Information Form and Management’s Discussion and Analysis for the year ended December 31, 2018, filed under the Company’s profile with the Canadian securities regulators on www.sedar.com and the U.S. Securities and Exchange Commission on www.sec.gov. Readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on these forward-looking statements, which reflect TransAlta’s expectations only as of the date of this news release. In light of these risks, uncertainties and assumptions, the forward-looking statements might occur to a different extent or at a different time than we have described, or might not occur at all. TransAlta disclaims any intention or obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Note: All financial figures are in Canadian dollars unless otherwise indicated.
TransAlta Advances its Clean Energy Investment Plan
Transaction will result in TransAlta owning 100% of the Keephills 3 Facility and Capital Power owning 100% of the Genesee 3 Facility
TransAlta Corporation (TransAlta or the Company) (TSX: TA; NYSE: TAC) announced today that it has entered into definitive agreements with Capital Power Corporation (Capital Power) providing for the swap of their respective non-operating interests in the Keephills 3 facility and the Genesee 3 facility (the Transaction). As a result of the Transaction, TransAlta will own 100% of the Keephills 3 facility and Capital Power will own 100% of the Genesee 3 facility. The purchase prices for each non-operating interest will be largely set-off against each other, resulting in a net payment of approximately $10 million being made from Capital Power to TransAlta, subject to working capital adjustments.
Today marks another important step in our transition to becoming Canada’s leading clean power company, stated Dawn Farrell, President and Chief Executive Officer of TransAlta. This transaction consolidates our control and operation of the Keephills 3 facility and allows us greater flexibility in pursuing our strategy of accelerating the coal-to-gas conversions.
The Keephills 3 facility is a 463 MW coal-fired generating facility located approximately 70 kilometers west of Edmonton, Alberta, adjacent to TransAlta’s existing Keephills Unit 1 and Unit 2 power plants. TransAlta and Capital Power are currently equal partners in the ownership of the Keephills 3 facility, with TransAlta being responsible for its operations. The Keephills 3 facility achieved commercial operation in 2011 and has been identified as a candidate for TransAlta’s intended coal-to-gas conversions.
The Genesee 3 facility is a 466 MW coal-fired generating facility located approximately 50 kilometers southwest of Edmonton, adjacent to Capital Power’s Genesee generating station. TransAlta and Capital Power are also equal partners in the ownership of the Genesee 3 facility, with Capital Power being responsible for its operations.
The closing of the Transaction is subject to certain customary closing conditions, including the receipt of all necessary governmental and regulatory approvals and, as it applies to a subsidiary of TransAlta, receipt of bondholder consent. The Transaction is expected to close in the fourth quarter of 2019.
About TransAlta Corporation:
TransAlta owns, operates and develops a diverse fleet of electrical power generation assets in Canada, the United States and Australia with a focus on long-term shareholder value. We provide municipalities, medium and large industries, and businesses and utility customers with clean, affordable, energy efficient and reliable power. Today, we are one of Canada’s largest producers of wind power and Alberta’s largest producer of hydro-electric power. For over 100 years, TransAlta has been a responsible operator and a proud community-member where its employees work and live. TransAlta aligns its corporate goals with the UN Sustainable Development Goals and we have been recognized by CDP (formerly Climate Disclosure Project) as an industry leader on Climate Change Management. We are also proud to have achieved the Silver level PAR (Progressive Aboriginal Relations) designation by the Canadian Council for Aboriginal Business.
For more information about TransAlta, visit our web site at transalta.com.
Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words expect, anticipate, continue, estimate, may, will, project, should, propose, plans, intends and similar expressions are intended to identify forward-looking information or statements. More particularly, and without limitation, this news release contains forward-looking statements and information relating to: the Transaction, including the closing and satisfaction of conditions precedents; the anticipated benefits arising from the Transaction, including as it relates to the Corporation’s coal-to-gas strategy; and the potential conversion of Keephills 3 to a gas-fired facility. These statements are based on TransAlta’s belief and assumptions based on information available at the time the assumptions were made. These statements are subject to a number of risks and uncertainties that may cause actual results to differ materially from those contemplated by the forward-looking statements. Some of the factors that could cause such differences include: failure to receive all necessary regulatory approvals or satisfy other conditions to closing the Transaction; legislative or regulatory developments; any significant changes to Common Share price or trading volume; market or business conditions; business opportunities that become available to, or are pursued by TransAlta; and other risk factors contained in the Company’s annual information form and management’s discussion and analysis. Readers are cautioned not to place undue reliance on these forward-looking statements or forward-looking information, which reflect TransAlta’s expectations only as of the date of this news release. TransAlta disclaims any intention or obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Note: All financial figures are in Canadian dollars.
TransAlta Advances its Clean Energy Investment Plan
TransAlta Corporation (TransAlta or the Company) (TSX: TA; NYSE: TAC) today commented on the Government of Alberta’s announcement that the energy-only market framework in Alberta will be maintained.
The promise by the Government of Alberta to deliver a decision on market structure within 90 days was fulfilled, thereby reducing significant uncertainty for TransAlta in assessing investment decisions in the Alberta power generation market. The Company has undertaken a review of its future investment decisions on coal-to-gas conversions and repowering through hybrid investments, as well as the impacts on our hydro and wind assets, under an energy-only market. This review has confirmed that our strategy to convert the coal fleet to natural gas remains unchanged. The Company will provide more details of its strategy at its investor day to be held on September 16, 2019.
The energy-only market has been in place in Alberta since 2000. The structure provides stability and ensures a competitive framework to be able to assess investment opportunities in Alberta. TransAlta is now in a position to make key investment decisions as it transitions to gas and continues to provide affordable and clean power for Alberta consumers for decades to come. The $750 million in capital raised earlier in 2019 can now be put to work in Alberta for the benefit of investors and customers.
TransAlta is well positioned to continue on the path to become Canada’s leading gas and renewables generator by 2025.
About TransAlta Corporation
TransAlta owns, operates and develops a diverse fleet of electrical power generation assets in Canada, the United States and Australia with a focus on long-term shareholder value. We provide municipalities, medium and large industries, businesses and utility customers clean, affordable, energy efficient, and reliable power. Today, we are one of Canada’s largest producers of wind power and Alberta’s largest producer of hydro-electric power. For over 100 years, TransAlta has been a responsible operator and a proud community-member where its employees work and live. TransAlta aligns its corporate goals with the UN Sustainable Development Goals and we have been recognized by CDP (formerly Climate Disclosure Project) as an industry leader on Climate Change Management. We are also proud to have achieved the Silver level PAR (Progressive Aboriginal Relations) designation by the Canadian Council for Aboriginal Business.
For more information about TransAlta, visit our web site at transalta.com.
Forward Looking Statement
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws (collectively referred to as forwarding-looking statements). All forward-looking statements are based on our beliefs as well as assumptions based on information available at the time the assumption was made. These statements are not guarantees of our future performance, events or results and are subject to a number of significant risks, uncertainties and other important factors that could cause our actual performance, events or results to be materially different from those set out in the forward-looking statements. More particularly, and without limitation, this news release contains forward-looking statements relating to: the Company’s investor day; being able to conclude and announce key investment decisions at the investor day, and that such decisions will ensure affordable and clean power for Alberta consumers; the market will support TransAlta’s ability to generate power competitively; the closing of the $750 million capital investment, including the $400 million preferred share subscription scheduled to close in October 2020; and becoming Canada’s leading gas and renewables generator by 2025 . The forward-looking statements are subject to a number of risks and uncertainties that may cause actual performance, events or results to differ materially from those contemplated by the forward-looking statements, which include: fluctuations in demand, market prices and the availability of fuel supplies required to generate electricity; the closing of the $750 million investment and the satisfaction of all closing conditions associated with the $400 million preferred share subscription in October 2020; changes in the current or anticipated legislative, regulatory and political environments; environmental requirements and changes in, or liabilities under, these requirements; and other risks and uncertainties contained in the Company’s Management Proxy Circular dated March 26, 2019 and its Annual Information Form and Management’s Discussion and Analysis for the year ended December 31, 2018, filed under the Company’s profile with the Canadian securities regulators on www.sedar.com and the U.S. Securities and Exchange Commission on www.sec.gov. Readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on these forward-looking statements, which reflect TransAlta’s expectations only as of the date of this news release. TransAlta disclaims any intention or obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
