TransAlta Corporation Enters into Automatic Share Purchase Plan
TransAlta Corporation (“TransAlta” or the “Company”) (TSX: TA) (NYSE: TAC) announced today that it has entered into an automatic share purchase plan (ASPP) with its broker in order to facilitate repurchases of TransAlta’s common shares (Common Shares) under the Company’s previously announced normal course issuer bid (NCIB).
The Company previously announced that it had received approval from the Toronto Stock Exchange (TSX) to purchase up to 14,000,000 of its Common Shares during the 12-month period that commenced May 31, 2024 and terminates May 30, 2025. Purchases under the NCIB may be made through open market transactions on the TSX and any alternative Canadian trading systems on which the Common Shares are traded, based on the prevailing market price. Since January 1, 2024, the Company has purchased 9,137,200 Common Shares at a weighted average price per Common Share of $9.33 for an aggregate value of approximately $85.3 million. Since the beginning of the current NCIB on May 31, 2024, the Company has purchased 1,700,000 at a weighted average price per Common Share of $9.77 for an aggregate value of approximately $16.6 million.
The Company believes that the prevailing price for the Common Shares may not, from time to time, reflect the underlying value of the Common Shares and that the purchase of Common Shares pursuant to the NCIB may be an attractive and appropriate use of available funds relative to other alternatives. The ASPP will facilitate purchases under the NCIB as it will allow for purchases of Common Shares to be made at times when the Company would ordinarily not be permitted to make purchases, whether due to regulatory restriction or customary self-imposed blackout periods. TransAlta is committed to enhancing shareholder returns through appropriate capital allocation such as a share buyback and its quarterly dividend, which are underpinned by the Company’s strong free cash flow position.
Under the ASPP, the Company’s broker may purchase Common Shares from the effective date of the ASPP until the end of the NCIB. The ASPP will facilitate purchases of Common Shares under the NCIB by authorizing the Company’s broker to make purchases at its sole discretion based on parameters set by the Company in accordance with TSX rules, applicable law and the terms of the ASPP. Outside of periods that the Company is restricted from purchasing Common Shares pursuant to insider trading rules or its own internal trading blackout policies, Common Shares may also be purchased based on management’s discretion, in compliance with TSX rules and applicable law.
All purchases of Common Shares made under the ASPP will be included in determining the number of Common Shares purchased under the NCIB. Any Common Shares purchased by the Company pursuant to the NCIB will be cancelled. The Company is not currently in possession of any material undisclosed information in relation to the Company. The ASPP has been pre-cleared by the TSX and will be effective on July 1, 2024.
The ASPP will terminate on the earliest of the date on which: (a) the maximum purchase limits under the ASPP are reached; (b) August 6, 2024; or (c) the Company terminates the ASPP in accordance with its terms.
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 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 112 years, TransAlta has been a responsible operator and a proud member of the communities where we operate and where our employees work and live. TransAlta aligns its corporate goals with the UN Sustainable Development Goals and the Future-Fit Business Benchmark, which also defines sustainable goals for businesses. Our reporting on climate change management has been guided by the International Financial Reporting Standards (IFRS) S2 Climate-related Disclosures Standard and the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. TransAlta has achieved a 66 per cent reduction in GHG emissions or 21.3 million tonnes CO2e since 2015 and received an upgraded MSCI ESG rating of AA.
For more information about TransAlta, visit its website at transalta.com.
Note: All financial figures are in Canadian dollars unless otherwise indicated.
TransAlta Corporation (TransAlta or the Company) (TSX: TA) (NYSE: TAC) announced today that the Toronto Stock Exchange (TSX) has accepted the notice filed by the Company to implement a normal course issuer bid (NCIB) for a portion of its common shares (Common Shares).
Pursuant to the NCIB, TransAlta may repurchase up to a maximum of 14,000,000 Common Shares, representing approximately 4.6% of the 303,256,652 Common Shares issued and outstanding as at May 27, 2024. Purchases under the NCIB may be made through open market transactions on the TSX and any alternative Canadian trading systems on which the Common Shares are traded, based on the prevailing market price. Any Common Shares purchased under the NCIB will be cancelled.
Transactions under the NCIB will depend on future market conditions. TransAlta will initially retain discretion whether to make purchases under the NCIB, and to determine the timing, amount and acceptable price of any such purchases, subject at all times to applicable TSX and other regulatory requirements. The period during which TransAlta is authorized to make purchases under the NCIB commences on May 31, 2024, and ends on May 30, 2025, or such earlier date on which the maximum number of Common Shares are purchased under the NCIB or the NCIB is terminated at the Company’s election.
Under TSX rules, not more than 211,262 Common Shares (being 25% of the average daily trading volume on the TSX of 845,049 Common Shares for the six months ended April 30, 2024) can be purchased on the TSX on any single trading day under the NCIB, with the exception that one block purchase in excess of the daily maximum is permitted per calendar week.
TransAlta has repurchased and cancelled 8,561,800 Common Shares on the open market through the facilities of the TSX and/or alternative Canadian trading systems at an average price of $9.50 per share under its prior NCIB approved by the TSX on May 26, 2023, for the twelve-month period commencing May 31, 2023.
The NCIB provides the Company with a capital allocation alternative with a view to long-term shareholder value. TransAlta’s Board of Directors and Management believe that, from time to time, the market price of the Common Shares does not reflect their underlying value and purchases of Common Shares for cancellation under the NCIB may provide an opportunity to enhance shareholder value.
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 112 years, TransAlta has been a responsible operator and a proud member of the communities where we operate and where our employees work and live. TransAlta aligns its corporate goals with the UN Sustainable Development Goals and the Future-Fit Business Benchmark, which also defines sustainable goals for businesses. Our reporting on climate change management has been guided by the International Financial Reporting Standards (IFRS) S2 Climate-related Disclosures Standard and the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. TransAlta has achieved a 66 per cent reduction in GHG emissions or 21.3 million tonnes CO2e since 2015 and received an upgraded MSCI ESG rating of AA. For more information about TransAlta, visit its website at transalta.com.
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 “may”, “will”, 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 TransAlta’s intentions with respect to the NCIB, the effects of repurchases of Common Shares and purchases thereunder, including any enhancement to shareholder value. 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: the entering into of an automatic securities purchase plan; legislative or regulatory developments; any significant changes to Common Share price or trading volume; continued availability of capital and financing; changes to general economic, 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 unless otherwise indicated.
TransAlta Achieves Commercial Operation of 200 MW Horizon Hill Wind Facility, increasing its United States Renewables Fleet to over 1 GW
TransAlta Corporation (TransAlta or the Company) (TSX: TA) (NYSE: TAC) announced today that the 200 MW Horizon Hill Wind Project (“Horizon Hill”), located in Logan County, Oklahoma, has achieved commercial operation. The facility is fully contracted to Meta Platforms Inc. (“Meta”), which is receiving both clean electricity and environmental attributes from the new facility.
“Since 2020, Meta has supported its global operations with 100 per cent wind and solar energy. As our footprint grows, it’s key that we find strong partners who can help us continue to meet that goal by bringing new renewable energy to the grid” – said Urvi Parekh, head of renewable energy at Meta. “We are excited to partner with TransAlta to help power our operations with clean electricity.”
“We are pleased to bring our 30th wind facility, Horizon Hill, into service. The completion of the facility also concludes the significant construction program we started in 2021 through which we have added 800 MW of contracted renewable electricity to our portfolio. With the completion of Horizon Hill, over 60 per cent of our fleet is now contracted on a megawatt basis,” said Mr. John Kousinioris, President and Chief Executive Officer of TransAlta. “Horizon Hill also brings our US renewables fleet to over one GW, another key milestone for TransAlta, and provides a clean energy solution to a leading corporate energy customer.”
On Feb. 22, 2024, the Company entered into a 10-year transfer agreement with an AA- rated customer for the sale of approximately 80 per cent of the expected production tax credits (“PTCs”) to be generated from Horizon Hill. The remaining PTCs are expected to be sold through spot transactions or contracted at a later date.
Horizon Hill Highlights
Long-term contracted revenues with Meta who will receive 100 per cent of both renewable electricity and environmental attributes;
Facility includes 34 Vestas V162 and V136 turbines, of which 33 have 119-metre towers and one has a 105-metre tower;
10-year transfer agreement for approximately 80 per cent of PTCs, which are subject to an annual inflation adjustment factor, with an AA- rated third-party customer, with opportunity to contract the remaining 20 per cent;
Extends TransAlta’s weighted-average contract life of its renewables portfolio1 to over 12 years; and
Estimated average annual adjusted EBITDA range between US$31 and US$33 million, including third-party sales of PTCs.
(1) The weighted-average remaining contract life does not include our merchant renewables assets. For power generated under long-term power purchase agreements (“PPAs”) and other long-term contracts, the weighted-average remaining contract life is based on long-term average gross installed capacity.
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 112 years, TransAlta has been a responsible operator and a proud member of the communities where we operate and where our employees work and live. TransAlta aligns its corporate goals with the UN Sustainable Development Goals and the Future-Fit Business Benchmark, which also defines sustainable goals for businesses. Our reporting on climate change management has been guided by the International Financial Reporting Standards (IFRS) S2 Climate-related Disclosures Standard and the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. TransAlta has achieved a 66 per cent reduction in GHG emissions or 21.3 million tonnes CO2e since 2015 and received an upgraded MSCI ESG rating of AA.
For more information about TransAlta, visit our web site at transalta.com.
Cautionary Statement Regarding Forward-Looking Information
This news release contains “forward-looking information”, within the meaning of applicable Canadian securities laws, and “forward-looking statements”, within the meaning of applicable United States securities laws, including the United States Private Securities Litigation Reform Act of 1995 (collectively referred to herein as “forward-looking statements”). In some cases, forward-looking statements can be identified by terminology such as “plans”, “expects”, “proposed”, “will”, “anticipates”, “develop”, “continue”, and similar expressions suggesting future events or future performance. In particular, this news release contains, without limitation, statements pertaining to the anticipated benefits arising from the Horizon Hill facility (defined above); expected generation of PTCs (defined above) to be sold through spot transactions or contracted to customers; and the estimated average annual adjusted EBITDA range for the Horizon Hill facility. These forward-looking statements are not historical facts but are based on TransAlta’s belief and assumptions based on information available at the time the assumptions were made, including, but not limited to the political and regulatory environments; and the condition of the financial markets not changing significantly. 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: changes in power prices; supply chain disruptions impacting major maintenance projects; cybersecurity breaches; the settlement price of the PPA being greater than the nodal price received in the market; congestion and curtailment risks and the potential for negative priced hours; negative impacts to our credit ratings; legislative or regulatory developments and their impacts; increasingly stringent environmental requirements and their impacts; increased competition; global capital markets activity (including our ability to access financing at a reasonable cost or at all, including as it pertains to PTCs); changes in prevailing interest rates, currency exchange rates and inflation levels; armed hostilities; general economic conditions in the geographic areas in which TransAlta operates; and other risks and uncertainties discussed in the TransAlta’s materials filed with the securities regulatory authorities from time to time and as also set forth in TransAlta’s most recent MD&A and Annual Information Form for the year ended Dec. 31, 2023. Readers 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. The purpose of the financial outlooks contained in this news release are to give the reader information about management’s current expectations and plans and readers are cautioned that such information may not be appropriate for other purposes and is given 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.
TransAlta Corporation (TransAlta or the Company) (TSX: TA) (NYSE: TAC) today reported its financial results for the first quarter ended March 31, 2024, demonstrating strong operational and financial performance and reaffirming its 2024 outlook.
First Quarter 2024 Financial Highlights
TransAlta’s first quarter results exceeded our expectations given the anticipated decline in Alberta spot power prices to $99 per MWh in 2024, as compared to elevated spot power prices of $142 per MWh in 2023. The 30 per cent decline in spot prices year over year was primarily due to milder weather, lower natural gas prices and incremental generation from the addition of new wind and solar supply in the market. Highlights for the quarter include:
Adjusted EBITDA(1) of $328 million, compared to $503 million for the same period in 2023
Free Cash Flow (“FCF”)(1) of $206 million or $0.67 per share, compared to $263 million or $0.98 per share for the same period in 2023
Earnings before income taxes of $267 million, compared to $383 million for the same period in 2023
Net earnings attributable to common shareholders of $222 million, compared to $294 million for the same period in 2023
Cash flow from operating activities of $244 million, a decrease of $218 million for the same period in 2023
The return of $53 million of capital to shareholders year to date through the buyback of 5.9 million common shares constituting 35 per cent of the Company’s previously announced 2024 enhanced share repurchase program of up to $150 million
Other Business Highlights and Updates
Achieved commercial operation of the 100 MW White Rock West wind facility on Jan. 1, 2024 and the 200 MW White Rock East wind facility on April 22, 2024
Completed the Mount Keith 132kV expansion on Feb. 29, 2024
Advanced commissioning of the 200 MW Horizon Hill wind facility to its final stages
Achieved strong operational adjusted availability of 92.3 per cent
Paused greenfield growth projects in Alberta pending clarity on the impact of new market regulations announced by the Government of Alberta
Signed the 2024 Bow River Basin water sharing memorandum of understanding in preparation for potential lower water conditions in southern Alberta
Announced the transition of its Executive Vice President, Finance and Chief Financial Officer (“CFO”) with the retirement of Todd Stack effective June 30, 2024 and the appointment of Joel E. Hunter as Executive Vice President, Finance and CFO effective July 1, 2024
“Our first quarter results demonstrate the value of our asset optimization and hedging strategies, supported by our strong operating capabilities. We continue to perform well while managing through the evolving markets of our operating portfolio, illustrating the advantage of our diversified fleet,” said Mr. John Kousinioris, President and Chief Executive Officer of TransAlta.
“We are confident that we will reach our 2024 guidance given the performance of our growing generating portfolio. We do not believe that our strong free cash flow results in the first quarter, and our expectations for the balance of 2024, are reflected in the current trading price of our common shares. As a result, we will continue to use share repurchases as part of our capital allocation strategy. Year to date, we have deployed $53 million towards share repurchases, which is approximately 35 per cent of our $150 million share repurchase target or $0.17 per share in value to shareholders,” added Mr. Kousinioris.
“We are focused on making balanced capital allocation decisions that enhance value for our shareholders as we execute the next stage of our aspirational Clean Electricity Growth Plan. Given the recent announcements on market changes from the Government of Alberta, we have decided to pause greenfield development in Alberta until the full impact of the Restructured Energy Market is understood. Our focus will shift to our other core jurisdictions, the United States and Western Australia, where we will look to secure appropriate risk-adjusted returns within stable markets.”
“The interim regulations to be adopted by the Government of Alberta effective July 1, 2024 in relation to market power mitigation and the supply cushion in the province remain in effect until Nov. 30, 2027 and are not expected to have a significant impact on our Company. We believe market prices and offer behaviour will be driven primarily by preexisting demand and supply fundamentals, which are already reflected in the weaker pricing conditions expected over the period of time that the regulations will be in place,” added Mr. Kousinioris.
Key Business Developments
White Rock Wind Facilities Achieve Commercial Operation
On Jan. 1, 2024, the 100 MW White Rock West wind facility achieved commercial operation. On April 22, 2024, the 200 MW White Rock East wind facility was also commissioned. The White Rock wind facilities are located in Caddo County, Oklahoma and are contracted under two long-term PPAs with Amazon for the offtake of 100 per cent of the generation from the facilities. The Company’s wind generating portfolio in the US now totals 819 MW in gross installed capacity.
Bow River Basin Memorandum of Understanding
On April 19, 2024, the Company announced it had signed a voluntary water-sharing memorandum of understanding with over thirty other water licence holders in the Bow River Basin. The Government of Alberta continues to anticipate and prepare for lower water conditions this summer with specific concerns in southern Alberta where agriculture could be impacted by water shortages. The Government of Alberta is leading efforts to coordinate water usage among water licence holders for Alberta river basins in an effort to ensure licensees get the water they need as opposed to the water to which they are entitled. In recognition of the unique role the Company plays in managing water flows while also serving as a key provider to Alberta’s electricity grid, we look forward to working with the Government and downstream stakeholders to maximize water storage in the early season to help mitigate any anticipated drought conditions. We anticipate the Company’s water management efforts will not have an adverse impact on our electricity generating and environmental objectives.
Annual Shareholder Meeting
The Honourable Rona Ambrose did not stand for reelection and retired from the Board of Directors (“Board”) following the annual shareholder meeting on April 25, 2024. The Board extends its gratitude for her service to the Company. She has been a valuable contributor to the Board since 2017 and we thank her for her leadership and insight, including her contributions as Chair of the Governance, Safety and Sustainability Committee of the Board.
At the annual general meeting of the holders of common shares of TransAlta, the Company received strong support on all items of business, including the election of all 12 directors and Say on Pay.
TransAlta Announced Retirement of CFO and Appointment of New CFO
On April 11, 2024, the Company announced the retirement of Todd Stack, Executive Vice President, Finance and Chief Financial Officer from the Company, effective June 30, 2024. The Board expresses its deep appreciation to Mr. Stack for his contributions during his 34-year career with the Company. Mr. Joel E. Hunter will be appointed as Executive Vice President, Finance and CFO effective July 1, 2024.
Normal Course Issuer Bid (“NCIB”) and Automatic Share Purchase Plan (“ASPP”)
TransAlta is committed to enhancing shareholder returns through appropriate capital allocation such as share buybacks and its quarterly dividend. The Company previously announced an enhanced common share repurchase program for 2024 of up to $150 million, targeting up to 42 per cent of 2024 FCF guidance being returned to shareholders in the form of share repurchases and dividends.
The Company also previously announced that it had received approval from the Toronto Stock Exchange (TSX) to purchase up to 14,000,000 of its common shares during the 12-month period that commenced on May 31, 2023 and will terminate on May 30, 2024. The Company intends to renew the NCIB in May 2024.
On March 19, 2024, the Company entered into an ASPP to facilitate repurchases of TransAlta’s common shares under its NCIB.
Under the ASPP, the Company’s broker may purchase common shares from the effective date of the ASPP until the termination of the ASPP. All purchases of common shares made under the ASPP will be included in determining the number of common shares purchased under the NCIB. The ASPP will terminate on the earliest of the date on which: (a) the maximum purchase limits under the ASPP are reached; (b) May 3, 2024; or (c) the Company terminates the ASPP in accordance with its terms.
During the three months ended March 31, 2024, the Company purchased and cancelled a total of 3,460,300 common shares, at an average price of $9.36 per common share, for a total cost of $32 million.
Mount Keith 132kV Expansion Complete
The Mount Keith 132kV expansion project was completed during the first quarter of 2024. The expansion was developed under the existing power purchase agreement with BHP Nickel West (“BHP”), which has a term of 15 years. The expansion will facilitate the connection of additional generating capacity to the transmission network which supports BHP’s operations and increases its competitiveness as a supplier of low-carbon nickel.
Production Tax Credit (“PTC”) Sale Agreements
On Feb. 22, 2024, the Company entered into a 10-year transfer agreement with an AA- rated customer for the sale of approximately 80 per cent of the expected PTCs to be generated from the White Rock and the Horizon Hill wind projects. The expected annual average EBITDA from these contracts is approximately $57 million (US$43 million).
First Quarter 2024 Highlights
$ millions, unless otherwise stated
Three months ended
March 31, 2024
March 31, 2023
Operational information
Adjusted availability (%)
92.3
92.0
Production (GWh)
6,178
5,972
Select financial information
Revenues
947
1,089
Adjusted EBITDA(1)
328
503
Earnings before income taxes
267
383
Net earnings attributable to common shareholders
222
294
Cash flows
Cash flow from operating activities
244
462
Funds from operations(1)
239
374
Free cash flow(1)
206
263
Per share
Net earnings per share attributable to common shareholders, basic and diluted
0.72
1.10
Funds from operations per share(1),(2)
0.78
1.40
FCF per share(1),(2)
0.67
0.98
Weighted average number of common shares outstanding
TransAlta Corporation Announces Results of the Annual Meeting of Shareholders and Election of all Directors
TransAlta Corporation (TSX: TA) (NYSE: TAC) (“TransAlta” or the “Company”) held its Annual Meeting of Shareholders (the Meeting) on April 25, 2024. The total number of common shares represented by shareholders at the Meeting and by proxy was 194,587,285, representing 63.21 per cent of the Company’s outstanding common shares.
The following resolutions were considered by shareholders:
Election of Directors
The twelve director nominees proposed by management were elected. The votes by ballot were received as follows:
Nominee
Votes For
Per cent
Against
Per cent
John P. Dielwart
187,971,087
99.50%
952,208
0.50%
Alan J. Fohrer
187,736,517
99.37%
1,186,602
0.63%
Laura W. Folse
187,808,261
99.41%
1,116,958
0.59%
Harry A. Goldgut
188,080,397
99.55%
842,898
0.45%
John H. Kousinioris
187,992,591
99.51%
930,548
0.49%
Candace J. MacGibbon
187,620,471
99.31%
1,304,768
0.69%
Thomas M. O’Flynn
182,108,667
96.39%
6,814,452
3.61%
Bryan D. Pinney
188,013,643
99.52%
909,632
0.48%
James Reid
188,104,667
99.57%
818,628
0.43%
Manjit K. Sharma
187,918,417
99.47%
1,004,824
0.53%
Sandra R. Sharman
186,504,893
98.72%
2,420,326
1.28%
Sarah A. Slusser
187,989,860
99.50%
935,379
0.50%
Appointment of Auditors
The appointment of Ernst & Young LLP to serve as the auditors for 2024 was approved. The votes by ballot were received as follows:
Votes For
Per cent
Withheld
Per cent
192,404,387
98.88%
2,182,897
1.12%
Advisory Vote on Executive Compensation (also known as say-on-pay)
The non-binding advisory vote on the Company’s approach to executive compensation or say-on-pay was approved. The votes by ballot were received as follows:
Votes For
Per cent
Against
Per cent
187,077,751
99.02%
1,848,374
0.98%
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 112 years, TransAlta has been a responsible operator and a proud member of the communities where we operate and where our employees work and live. TransAlta aligns its corporate goals with the UN Sustainable Development Goals and the Future-Fit Business Benchmark, which also defines sustainable goals for businesses. Our reporting on climate change management has been guided by the International Financial Reporting Standards (IFRS) S2 Climate-related Disclosures Standard and the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. TransAlta has achieved a 66 per cent reduction in GHG emissions or 21.3 million tonnes CO2e since 2015 and received an upgraded MSCI ESG rating of AA.
For more information about TransAlta, visit our web site at transalta.com.
The Board of Directors of TransAlta Corporation (TSX: TA) (NYSE: TAC) declared a quarterly dividend of $0.06 per common share payable on July 1, 2024 to shareholders of record at the close of business on June 1, 2024.
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 March 31, 2024, up to but excluding June 30, 2024:
Preferred Shares
TSX Stock Symbol
Dividend Rate
Dividend Per Share
Record Date
Payment Date
Series A
TA.PR.D
2.877%
$0.17981
June 1, 2024
June 30, 2024
Series B*
TA.PR.E
7.011%
$0.43579
June 1, 2024
June 30, 2024
Series C
TA.PR.F
5.854%
$0.36588
June 1, 2024
June 30, 2024
Series D*
TA.PR.G
8.081%
$0.50230
June 1, 2024
June 30, 2024
Series E
TA.PR.H
6.894%
$0.43088
June 1, 2024
June 30, 2024
Series G
TA.PR.J
4.988%
$0.31175
June 1, 2024
June 30, 2024
*Please note the quarterly floating rate on the Series B and Series D 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 hydroelectric power. For over 112 years, TransAlta has been a responsible operator and a proud member of the communities where we operate and where our employees work and live. TransAlta aligns its corporate goals with the UN Sustainable Development Goals and the Future-Fit Business Benchmark, which also defines sustainable goals for businesses. Our reporting on climate change management has been guided by the International Financial Reporting Standards (IFRS) S2 Climate-related Disclosures Standard and the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. TransAlta has achieved a 66 per cent reduction in GHG emissions or 21.3 million tonnes CO2e since 2015 and received an upgraded MSCI ESG rating of AA.
For more information about TransAlta, visit its website at transalta.com.
TransAlta Achieves Commercial Operation of 300 MW White Rock Project and Increases its US Renewables Fleet to 820 MW
TransAlta Corporation (TransAlta or the Company) (TSX: TA) (NYSE: TAC) announced today that the combined 300 MW White Rock East and White Rock West wind facilities (White Rock), located in Caddo County, Oklahoma, have achieved commercial operation. The White Rock wind facilities are fully contracted to Amazon Energy LLC (Amazon) and are currently supplying clean and affordable electricity to our customer. TransAlta’s portfolio in the US now totals 820 MW in net operating renewable energy capacity.
We are pleased to bring into service our first clean electricity project in Oklahoma, White Rock, which is our largest wind project completed to date. White Rock was made possible through our long-term customer relationship with Amazon and its commitment to power its operations with 100 per cent renewable energy. Amazon is a global leader in procurement of renewable energy to achieve sustainability and carbon reduction objectives, and we are excited to be a trusted supplier to provide clean and affordable electricity as part of Amazon’s decarbonization pledge,- said Mr. John Kousinioris, President and Chief Executive Officer of TransAlta.
In addition, we are also pleased to announce our first long-term contract to supply production tax credits (PTCs) to a taxable counterparty in the US. We have secured favourable pricing on approximately 80% of the expected generation of PTCs, which will provide another stream of contracted revenue that secures long-term cash flows from White Rock and further diversifies the contracted cash flows from our renewable portfolio. We look forward to operating this facility and delivering on our commitments to our customers. As I look ahead, we are nearing completion of our other Oklahoma wind project which will add another 200 MW facility, increasing our US portfolio to more than 1 GW, another key milestone for our company, added Mr. Kousinioris.
White Rock comprises a total of 51 Vestas wind turbines and is the first of the Company’s two wind projects in Oklahoma to achieve commercial operations. On Feb. 22, 2024, the Company entered into a 10-year transfer agreement with an AA- rated customer for the sale of approximately 80 per cent of the expected PTCs to be generated from the White Rock wind facilities. The remaining PTCs are expected to be sold through spot transactions or contracted at a later date.
White Rock Project Highlights
¢ Long-term contracted revenues from Amazon; an investment-grade customer;
¢ 10-year transfer agreement of PTCs, which are subject to an annual inflation adjustment factor, with an AA- rated third-party customer;
¢ 49 Vestas V162 6.0 MW and 2 Vestas V136 3.45 MW turbines that are 119 metres and 105 metres in height with total rotor diameters of 162 metres and 136 metres, respectively;
¢ Estimated average annual adjusted EBITDA range between US$53 and US$57 million, including third-party sales of PTCs; and
¢ TransAlta weighted-average contract life of renewables portfolio1 increased to 12 years.
(1) The weighted-average remaining renewables portfolio contract life does not include our merchant renewables assets. For power generated under long-term power purchase agreements (“PPAs”) and other long-term contracts, the weighted-average remaining contract life is based on long-term average gross installed capacity.
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 112 years, TransAlta has been a responsible operator and a proud member of the communities where we operate and where our employees work and live. TransAlta aligns its corporate goals with the UN Sustainable Development Goals and the Future-Fit Business Benchmark, which also defines sustainable goals for businesses. Our reporting on climate change management has been guided by the International Financial Reporting Standards (IFRS) S2 Climate-related Disclosures Standard and the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. TransAlta has achieved a 66 per cent reduction in GHG emissions or 21.3 million tonnes CO2e since 2015 and received an upgraded MSCI ESG rating of AA.
For more information about TransAlta, visit our web site at transalta.com.
Cautionary Statement Regarding Forward-Looking Information
This news release contains forward-looking information, within the meaning of applicable Canadian securities laws, and forward-looking statements, within the meaning of applicable United States securities laws, including the United States Private Securities Litigation Reform Act of 1995 (collectively referred to herein as forward-looking statements). In some cases, forward-looking statements can be identified by terminology such as plans, expects, proposed, will, anticipates, develop, continue, and similar expressions suggesting future events or future performance. In particular, this news release contains, without limitation, statements pertaining to the anticipated benefits arising from the White Rock facilities (defined above); expected generation of PTCs (defined above) to be sold through spot transactions or contracted to customers; estimated average annual adjusted EBITDA range for the White Rock facilities;expected completion date of the Corporation’s other Oklahoma wind project; and the expected total renewable generation by the Corporation in the US. These forward-looking statements are not historical facts but are based on TransAlta’s belief and assumptions based on information available at the time the assumptions were made, including, but not limited to the political and regulatory environments; and the condition of the financial markets not changing significantly. 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: changes in market power and gas prices; supply chain disruptions impacting major maintenance and growth projects; cybersecurity breaches; negative impacts to our credit ratings; legislative or regulatory developments and their impacts; increasingly stringent environmental requirements and their impacts; increased competition; global capital markets activity (including our ability to access financing at a reasonable cost or at all); changes in prevailing interest rates, currency exchange rates and inflation levels; armed hostilities; general economic conditions in the geographic areas in which TransAlta operates; and other risks and uncertainties discussed in the TransAlta’s materials filed with the securities regulatory authorities from time to time and as also set forth in the TransAlta’s MD&A and Annual Information Form for the year ended Dec. 31, 2023. Readers 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. The purpose of the financial outlooks contained in this news release are to give the reader information about management’s current expectations and plans and readers are cautioned that such information may not be appropriate for other purposes and is given 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.
TransAlta Joins Other Water Licence Holders and the Alberta Government to collaborate on flow management on the Bow River System
TransAlta Corporation (TransAlta or the Company) (TSX: TA) (NYSE: TAC) announced today that it has signed onto a voluntary water-sharing memorandum of understanding (MOU) with over thirty other water licence holders in the Bow River Basin.
Water-sharing MOUs have been initiated by the Government of Alberta, across Southern Alberta, to coordinate water needs in what is expected to be a lower water year.
Due to its role managing water storage and water flows in the Bow River system for power generation, drought prevention and flood control, the Company is collaborating with other downstream water licence holders to manage water flows.
TransAlta will contribute to this effort by maximizing storage of run-off in the spring and then use that water to manage river flows during the summer. The MOUs do not include TransAlta’s facilities on the North Saskatchewan River system.
TransAlta recognizes the unique role our Bow River system plays in managing water flows while also serving as a key component of Alberta’s electricity grid. We look forward to working with the Government and downstream licence holders to maximize water storage in the spring and sustain water flow during the summer months to help mitigate drought conditions, should they occur,- said Blain van Melle, Executive Vice President, Commercial and Customer Relations.
TransAlta expects these water management efforts during the spring and summer seasons to align with its electricity generation objectives and practices. The Company does not expect this voluntary arrangement to have a material impact on the performance of TransAlta’s hydro fleet and hydro operations are expected to perform consistent with the Company’s guidance range for 2024 based on current water forecasts. TransAlta continues to retain full capacity and capability to respond when these hydro facilities are needed by the electricity grid and will continue to meet environmental obligations.
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 112 years, TransAlta has been a responsible operator and a proud member of the communities where we operate and where our employees work and live. TransAlta aligns its corporate goals with the UN Sustainable Development Goals and its climate change strategy with CDP (formerly Climate Disclosure Project) and the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. TransAlta has achieved a 66 per cent reduction in GHG emissions or 21.3 million tonnes CO2e since 2015 and received an upgraded MSCI ESG rating of AA.
Note: All financial figures are in Canadian dollars unless otherwise indicated.
Cautionary Statement Regarding Forward-Looking Information
This news release contains forward-looking information, within the meaning of applicable Canadian securities laws, and forward-looking statements, within the meaning of applicable United States securities laws, including the United States Private Securities Litigation Reform Act of 1995 (collectively referred to herein as forward-looking statements). In some cases, forward-looking statements can be identified by terminology such as plans, expects, proposed, will, anticipates, develop, continue, and similar expressions suggesting future events or future performance. In particular, this news release contains, without limitation, statements pertaining to the anticipated benefits arising from the MOU (as defined above); collaboration with other downstream water licence holders to manage water flows; impacts on the performance of TransAlta’s hydro fleet and hydro operations; and expected to performance of the hydro fleet and hydro operations consistent with 2024 guidance range. These forward-looking statements are not historical facts but are based on TransAlta’s belief and assumptions based on information available at the time the assumptions were made, including, but not limited to water flows in the Bow River system forecasts; and the political and regulatory environments not changing significantly. 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: adverse changes to water flows in the Bow River system for power generation; changes in market power and gas prices; cybersecurity breaches; legislative or regulatory developments and their impacts; increasingly stringent environmental requirements and their impacts; increased competition; global capital markets activity (including our ability to access financing at a reasonable cost or at all); changes in prevailing interest rates, currency exchange rates and inflation levels; armed hostilities; general economic conditions in the geographic areas in which TransAlta operates; and other risks and uncertainties discussed in the TransAlta’s materials filed with the securities regulatory authorities from time to time and as also set forth in the TransAlta’s MD&A and Annual Information Form for the year ended Dec. 31, 2023. Readers 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. The purpose of the financial outlooks contained in this news release are to give the reader information about management’s current expectations and plans and readers are cautioned that such information may not be appropriate for other purposes and is given 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.
TransAlta Announces Retirement of CFO and Appointment of New CFO
TransAlta Corporation (“TransAlta” or the “Company”) (TSX: TA) (NYSE: TAC) announced today the retirement of Todd Stack, Executive Vice-President, Finance and Chief Financial Officer from the Company, effective June 30, 2024.
“On behalf of the Board of Directors and management team, I wish to express my deep appreciation to Todd for his contributions to TransAlta and its success during his 34-year tenure with the Company. As CFO, Todd has played a leadership role in strengthening our balance sheet and simplifying our corporate structure as he helped position TransAlta to deliver on its strategic objectives into the future”,- said John Kousinioris, President and Chief Executive Officer.
“Todd has been a strong member of our leadership team and will be missed for his commitment to the Company and its employees. I want to personally thank Todd for his partnership and for facilitating a seamless transition of his role.”
TransAlta also announced today that the Board has appointed Joel E. Hunter as Executive Vice-President, Finance and Chief Financial Officer, effective July 1, 2024. Mr. Hunter is a seasoned energy executive with over 26 years of finance, capital markets and strategic planning expertise. Mr. Hunter currently serves as Executive Vice-President and CFO with TC Energy.
“We are excited to have someone of Joel’s calibre join TransAlta’s leadership team and help TransAlta realize its full potential. Joel’s energy sector experience, extensive financial and capital markets expertise, and established reputation as a strong, collaborative leader will be immensely valuable to the execution of our strategic objectives” – said Kousinioris. “On behalf of our Board and employees, I welcome Joel to TransAlta and look forward to working closely with him.”
Mr. Hunter is a Chartered Financial Analyst (CFA) and holds a Bachelor of Commerce (Accounting) from the University of Calgary, and a Bachelor of Arts (Economics) from the University of Regina.
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 hydroelectric power. For over 112 years, TransAlta has been a responsible operator and a proud member of the communities where we operate and where our employees work and live. TransAlta aligns its corporate goals with the UN Sustainable Development Goals and the Future-Fit Business Benchmark, which also defines sustainable goals for businesses. Our reporting on climate change management has been guided by the International Financial Reporting Standards (IFRS) S2 Climate-related Disclosures Standard and the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. TransAlta has achieved a 66 per cent reduction in GHG emissions or 21.3 million tonnes CO2e since 2015 and received an upgraded MSCI ESG rating of AA.
For more information about TransAlta, visit its website at transalta.com.
Note: All financial figures are in Canadian dollars unless otherwise indicated.
Media Advisory: TransAlta Annual Meeting of Shareholders and First Quarter 2024 Results and Conference Call
2024 Annual Meeting of TransAlta Corporation Shareholders
On Thursday, April 25, 2024, TransAlta Corporation (TransAlta) (TSX: TA) (NYSE: TAC) will hold its annual meeting of shareholders at 11:00 a.m. Mountain Time (1:00 p.m. ET) in a virtual-only meeting format via live audio webcast (https://web.lumiagm.com/471294222). The management proxy circular (available at https://transalta.com/investors/results-reporting/) provides detailed information about the business of the meeting and the voting process. TransAlta will only conduct the formal business of the meeting and there will not be a management presentation following the formal business of the meeting.
Q1 2024 Earnings Release, Conference Call and Webcast
TransAlta will release its first quarter 2024 results before markets open on Friday, May 3, 2024. 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.
To access the conference call via telephone, please register ahead of time using the call link below: https://register.vevent.com/register/BIae6c878522b348aca5e96eabffd10dd6. Once registered, participants will have the option of 1) dialing into the call from their phone (via a personalized PIN); or 2) clicking the Call Me option to receive an automated call directly to their phone.
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 hydroelectric power. For over 112 years, TransAlta has been a responsible operator and a proud member of the communities where we operate and where our employees work and live. TransAlta aligns its corporate goals with the UN Sustainable Development Goals and the Future-Fit Business Benchmark, which also defines sustainable goals for businesses. Our reporting on climate change management has been guided by the International Financial Reporting Standards (IFRS) S2 Climate-related Disclosures Standard and the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. TransAlta has achieved a 66 per cent reduction in GHG emissions or 21.3 million tonnes CO2e since 2015 and received an upgraded MSCI ESG rating of AA.
For more information about TransAlta, visit its website at transalta.com.
Note: All financial figures are in Canadian dollars unless otherwise indicated.
