Page 9 – TransAlta

TransAlta Reports Fourth Quarter and Full Year 2022 Results and Commits to Net-Zero by 2045

Posted on February 22, 2023July 14, 2025 by kevin_wick

Fourth Quarter 2022 Financial Highlights

Adjusted EBITDA^(1),(2) of $541 million, an increase of 123% over the same period in 2021
Free Cash Flow (“FCF”)⁽¹⁾of $315 million, or $1.17 per share, an increase of 303% on a per-share basis from the same period in 2021
Earnings before income taxes of $7 million, an improvement of $39 million from the same period in 2021
Cash flow from operating activities of $351 million, an increase of 550% from the same period in 2021

Full Year 2022 Financial Highlights

Adjusted EBITDA^(1),(2) of $1.63 billion, an increase of 27% from the same period in 2021
FCF⁽¹⁾of $961 million or $3.55 per share, an increase of 64% on a per-share basis from the same period in 2021
Earnings before income taxes of $353 million, an increase of $733 million from 2021
Cash flow from operating activities of $877 million, a decrease of 12% from the same period in 2021

Other Business and ESG Highlights

Announced over 200 MW of renewable growth projects, including the Horizon Hill wind facility and Mount Keith 132kV transmission expansion, securing 40% of our 5-year 2 GW Clean Electricity Growth Plan target
Completed and executed contract renewals with our customers at the Sarnia Regional Cogeneration Plant (“Sarnia”), including the Ontario Independent Electricity System Operator (IESO)
Announced a 10-year contract extension at the Kent Hills wind facility with New Brunswick Power Corporation (“NB Power”) and advanced rehabilitation efforts, with the facility expected to fully return to service in the second half of 2023. The parties have also agreed to evaluate the installation of a battery energy storage system and potential repowering at the facilities end of life in 2045
Announced agreement to acquire a 50% interest in a 320 MW early-stage pumped hydro development project
Reduced annual carbon emissions by 2.3 million tonnes, an 18% reduction compared to 2021
Accelerated our business transformation to become net-zero by 2045
Received ESG ratings of ‘A-‘ with CDP (formerly known as the Carbon Disclosure Project) and ‘A’ with MSCI (Morgan Stanley Capital International)
Achieved a strong safety performance, including a record Total Recordable Injury Frequency of 0.39
Increased the common share dividend by 10% to an annualized dividend of $0.22 per share
Returned $54 million of capital to common shareholders during the year through share buybacks of 4.3 million common shares

TransAlta Corporation (TransAlta or the Company) (TSX: TA) (NYSE: TAC) today reported its financial results for the fourth quarter and full year ended Dec. 31, 2022.

“2022 was a remarkable year for TransAlta, with results that exceeded the top end of our adjusted EBITDA and Free Cash Flow guidance. We achieved exceptional financial performance from all our generation segments, as well as our Energy Marketing segment. On the growth front, we secured over 200 MW of renewables growth projects bringing the total under our Clean Electricity Growth Plan to 800 MW or 40 per cent of our 2 GW target. During the year, we also added 1,980 MW of development opportunities to our pipeline and currently have 374 MW of projects in an advanced stage of development,- said John Kousinioris, President and Chief Executive Officer. “Our evolution is on track, and the cash flows from our legacy fleet are positioning us well to transition our business towards contracted renewables,” added Mr. Kousinioris.

Key Business Developments

Early-Stage Pumped Hydro Development Project

On Feb. 16, 2023, the Company announced that it had entered into a definitive agreement to acquire a 50 per cent interest in the Tent Mountain Renewable Energy Complex (Tent Mountain), an early-stage 320 MW pumped hydro energy storage development project, located in southwest Alberta, currently owned by Montem Resources Limited (Montem). The acquisition includes the land rights, fixed assets and intellectual property associated with the pumped hydro development project. The Company will pay Montem approximately $8 million upon closing the transaction with additional contingent payments of up to $17 million (approximately $25 million total) based on the achievement of specific development and commercial milestones. The Company and Montem will form a partnership and jointly manage the project, with the Company acting as project developer. The partnership will actively seek an offtake agreement over the development period for the energy and environmental attributes generated by the facility. The acquisition also includes the intellectual property associated with a 100 MW offsite green hydrogen electrolyser and a 100 MW offsite wind development project. The closing of the transaction remains subject to customary closing conditions, including receipt of shareholder approval by Montem which is expected to occur in March 2023.

TransAlta and Lafarge Canada Advance Low-Carbon Fly Ash Repurposing Project

During the fourth quarter of 2022, the Company entered into an agreement with Lafarge Canada that will advance low-carbon concrete projects in Alberta. The project will repurpose landfilled fly ash, a waste product from the Company’s Canadian coal-fired electricity facilities, which ceased operating on coal at the end of 2021. The ash will be used to replace cement in concrete manufacturing.

Changes to the Board of Directors

On Dec. 15, 2022, the Company announced the appointment of Ms. Manjit Sharma to the board of directors (the “Board” or the “Board of Directors”) effective Jan. 1, 2023. Ms. Sharma brings over 30 years of experience that spans a variety of industries, most recently serving as Chief Financial Officer of WSP Canada Inc.

On Sept. 30, 2022, Ms. Beverlee Park retired from the Board of Directors. Ms. Park served on the Board of Directors since 2015 and as Chair of the Audit, Finance and Risk Committee from April 2018 to May 2022. The Company recognizes the many contributions made by Ms. Park to TransAlta, and thanks her for the many years of service.

Public Offering of Senior Green Bonds and Release of Inaugural Green Bond Framework

On Nov. 17, 2022, the Company issued US$400 million senior notes (“US$400 million Senior Green Bonds”), which have a coupon rate of 7.75 per cent per annum and mature on Nov. 15, 2029. Including the effects of settled interest rate swaps, the notes have an effective yield of approximately 5.98 per cent. The notes are an unsecured obligation, rank equally in right of payment with all of our existing and future senior indebtedness, and are senior in right of payment to all of our future subordinated indebtedness. The interest payments on the bonds are made semi-annually, on November 15 and May 15, with the first payment commencing May 15, 2023.

The Company used the net proceeds from the issuance of the notes to repay $100 million drawn on its credit facility and replaced the balance sheet cash used to fund the repayment in full of the Company’s US$400 million 4.50 per cent unsecured senior notes.

The Company will allocate an amount equal to the net proceeds from this offering to finance or refinance new and/or existing eligible green projects in accordance with its Green Bond Framework (the “Framework”). The Framework received a second-party opinion from Sustainalytics, which verified that it aligned with the Green Bond Principles from the International Capital Market Association.

Announced a 10% Common Share Dividend Increase

On Nov. 7, 2022, the Company announced that the Board of Directors approved a 10 per cent increase in its common share dividend and declared a dividend of $0.055 per common share that was paid on Jan. 1, 2023. The quarterly dividend of $0.055 per common share represents an annualized dividend of $0.22 per common share.

New Term Facility

During the third quarter of 2022, the Company closed a two-year $400 million floating-rate term facility (“Term Facility”) with its banking syndicate with a maturity date of Sept. 7, 2024. As at Dec. 31, 2022, the full amount was drawn on the Term Facility.

Executed Contract Renewals with the IESO at Sarnia and Melancthon 1 Wind Facilities

During the third quarter of 2022, TransAlta Renewables Inc., a subsidiary of the Company, announced that it was awarded capacity contracts for Sarnia and the Melancthon 1 wind facility from the IESO as part of the IESO’s Medium-Term Capacity Procurement Request for Proposals. The new capacity contracts for these two facilities run from May 1, 2026, to Apr. 30, 2031, and the existing contracts will be extended from Dec. 31, 2025 and March 3, 2026, respectively, to Apr. 30, 2026.

Executed Industrial Contract Extensions at Sarnia

During the second and fourth quarters of 2022, the Company executed contracts for the supply of electricity and steam from Sarnia with three of its legacy industrial customers, and with three new customers, who had previously been resold utilities as part of a legacy customer’s contract. Following the contracting efforts in 2021 and 2022, Sarnia has been fully recontracted without interruption to the industrial customers’ delivery terms. The contracts extend to Apr. 30, 2031 for four customers and to Dec. 31, 2032 for the other three customers.

Kent Hills Wind Facilities Update

On June 2, 2022, TransAlta Renewables announced the rehabilitation plan for the Kent Hills 1 and 2 wind facilities together with the execution of amended and extended power purchase agreements (“PPAs”) with NB Power. The amended agreements for the Kent Hills 1, 2 and 3 wind facilities provide for an additional 10-year contract term to December 2045 and an effective 10 per cent reduction to the original contract prices from January 2023 through December 2033. In addition, both parties have agreed to work in good faith to evaluate the installation of a battery energy storage system at Kent Hills and to consider a potential repowering of Kent Hills at the end of its life in 2045. A waiver for the Kent Hills non-recourse bonds was also obtained from the project bondholders and a supplemental indenture was entered into with the bondholders that facilitates the rehabilitation of the Kent Hills 1 and 2 wind facilities.

Mount Keith 132kV Transmission Expansion

On May 3, 2022, TransAlta Renewables exercised its option to acquire an economic interest in the expansion of the Mount Keith 132kV transmission system in Western Australia which will support the Northern Goldfields-based operations of BHP Nickel West (“BHP”). The project is being developed under the existing PPA with BHP, which has a term of 15 years.

Executed Long-term PPA for the Remaining 30 MW at Garden Plain

During the second quarter of 2022, the Company entered into a long-term PPA for the remaining 30 MW of renewable electricity and environmental attributes for the Garden Plain wind project in Alberta with a new investment-grade globally recognized customer. The 130 MW Garden Plain wind project, which was announced in May 2021 with a 100 MW PPA contracted to Pembina Pipeline Corporation (“Pembina”), is now fully contracted with a weighted average contract life of approximately 17 years. Construction is underway with commercial operation expected in the first half of 2023.

Energy Impact Partners Investment

On May 5, 2022, the Company entered into a commitment to invest US$25 million over the next four years in Energy Impact Partners Deep Decarbonization Frontier Fund 1 (the “Frontier Fund”). During 2022, the Company invested $10 million (US$8 million). The investment in the Frontier Fund provides the Company with a portfolio approach to investing in emerging technologies and the opportunity to identify, pilot, commercialize and bring to market emerging technologies that will facilitate the transition to net-zero emissions.

MSCI Environmental, Social and Governance Rating Upgrade

During the second quarter of 2022, TransAlta’s MSCI Environmental Social and Governance Rating was upgraded to ‘A’ from ‘BBB’. The upgrade reflects the Company’s strong renewable energy growth compared to its peers. In 2021, the Company grew its installed renewable energy capacity by 15 per cent through the acquisition and construction of solar and wind facilities and secured 600 MW in additional renewable energy projects. In line with its goal to reduce carbon emissions by 75 per cent from 2015 emissions levels by 2026, TransAlta also completed coal-to-gas conversions of its Canadian coal-fired facilities in 2021, nine years ahead of Alberta’s coal phase-out plan.

Horizon Hill Wind Project and Fully Executed Corporate PPA with Meta

On April 5, 2022, TransAlta announced a long-term renewable energy PPA with a subsidiary of Meta Platforms Inc. (“Meta”), formerly known as Facebook, Inc., for 100 per cent of the generation from its 200 MW Horizon Hill wind project to be located in Logan County, Oklahoma. Under this agreement, Meta will receive both renewable electricity and environmental attributes from the Horizon Hill facility. The facility will consist of a total of 34 Vestas turbines. Construction commenced in the fall of 2022 with a target commercial operation date in the second half of 2023. TransAlta will construct, operate and own the facility.

Alberta Electricity Portfolio

The Alberta Electricity Portfolio generated gross margin of $1,177 million, an increase of $319 million compared to the same period in 2021. Higher merchant margins were realized through dispatch optimization and the increase in realized power prices which more than offset higher fuel costs from increased natural gas prices in 2022 as compared to the prior year. Periods of strong weather-driven demand and unplanned outages resulted in opportunities for each of our fuel types in the Alberta Electricity Portfolio throughout the year.

Alberta’s annual demand for electricity expanded by approximately 1.7% from 2021 to 2022 due to the economic recovery from the COVID-19 pandemic, higher residential cooling demand in summer and stronger market conditions for energy commodities supporting power demand. The average pool price increased from $102 per MWh in 2021 to $162 per MWh in 2022. Pool prices were higher in the second through fourth quarters of 2022, compared to 2021 as a result of higher demand in the province, higher natural gas and carbon prices and stronger prices in an adjacent power market. August and December, specifically, were months with significant weather-driven demand in the province.

For the year ended Dec. 31, 2022, the Alberta Electricity Portfolio achieved a realized merchant power price of $126 per MWh, compared to the Alberta electricity price, which averaged $162 per MWh. The Company was able to benefit during higher-priced periods by optimizing dispatch of each of the Alberta Hydro, and Gas fleet, ensuring high availability during peak demand, while hedged positions at Alberta Gas minimized unfavourable market pricing during lower-priced hours in the quarter.

Hedged volume for the 2022 fiscal year was 7,228 GWh at an average price of $86 per MWh compared to 6,992 GWh at an average price of $72 per MWh in 2021.

Liquidity and Financial Position

The Company continues to maintain a strong financial position in part due to long-term contracts and hedged positions. As at Dec. 31, 2022, TransAlta had access to $2.1 billion in liquidity, including $1.1 billion in cash and cash equivalents.

Fourth Quarter and Year Ended 2022 Highlights

*$ millions, unless otherwise stated*	3 Months Ended		Year Ended
*$ millions, unless otherwise stated*	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Adjusted availability (%)	89.5	83.8	90	86.6
Production (GWh)	6,005	5,823	21,258	22,105
Revenues	854	610	2,976	2,721
Adjusted EBITDA^(1),(2)	541	243	1,634	1,286
FFO^(1),(2)	459	186	1,346	994
FCF^(1),(2)	315	79	961	585
Earnings (loss) before income taxes	7	(32)	353	(380)
Net earnings (loss) attributable to common shareholders	(163)	(78)	4	(576)
Cash flow from operating activities	351	54	877	1,001
Net earnings (loss) per share attributable to common shareholders, basic and diluted	$ (0.61)	$ (0.29)	$ 0.01	$ (2.13)
FFO per share^(1),(4)	$ 1.71	$ 0.69	$ 4.97	$ 3.67
FCF per share^(1),(4)	$ 1.17	$ 0.29	$ 3.55	$ 2.16
Dividends declared per common share⁽³⁾	$ 0.11	$ 0.10	$ 0.21	$ 0.19
Dividends declared per preferred share⁽³⁾	$ 0.34	$ 0.25	$ 1.20	$ 1.02

Download the full news release

TransAlta Announces Acquisition of 50% Interest in Early-Stage Pumped Hydro Energy Storage Development Project

Posted on February 16, 2023January 7, 2025 by kevin_wick

TransAlta Corporation (TransAlta or the Company) (TSX: TA) (NYSE: TAC) announced today that it has entered into a definitive agreement to acquire a 50% interest in the Tent Mountain Renewable Energy Complex (Tent Mountain or the Project), an early-stage 320 MW pumped hydro energy storage development project, located in southwest Alberta, currently owned by Montem Resources Limited (Montem) (ASX:MR1). TransAlta and Montem will form a partnership and jointly manage the Project, with TransAlta acting as project developer. The acquisition includes the land rights, fixed assets and intellectual property associated with the pumped hydro development project. The Project leverages Montem’s existing assets at Tent Mountain, which include large legacy water reservoirs from past mining operations.

Pumped hydro is an environmentally sustainable solution for managing the intermittency of increased renewable electricity generation in the Province of Alberta; the characteristics of the Tent Mountain site are rare and present a unique opportunity to provide 15 hours of energy storage capability for the Alberta market. The Project is strategically located on private, industrial zoned land, including an existing upper reservoir that supports a cost competitive pumped hydro project compared to other similar projects. The Project has already completed key technical and environmental work including a hydrology assessment, with additional geotechnical analysis being planned in 2023 to further advance the design of the Project. The Project will be developed over the next four years, with construction targeted to start as early as 2026 with a commercial operation date between 2028 and 2030, all subject to regulatory, commercial and engineering considerations.

TransAlta has owned, operated, and constructed hydro facilities for more than 110 years and this Project offers similar long-term advantages as TransAlta’s other Alberta hydro facilities. These long-term advantages include that the Project will have a life span of greater than 80 years, which will substantially reduce its operating costs compared to other technologies over the life of the Project. The Project’s closed loop system will result in minimal impacts to Alberta’s natural river system and will have the ability to provide flexible, firm clean power to customers at scale. The Project will actively seek an offtake agreement over the development period for the energy and environmental attributes generated by the facility; the Project will provide a unique value proposition to customers seeking carbon free electricity.

The Tent Mountain Renewable Energy Complex is a unique development opportunity for our Company and the Province of Alberta. The Project can support the reliability of the Alberta grid with a proven technology that is non-emitting and has a significantly larger capacity and duration than other currently available storage options. We believe long duration storage projects, like Tent Mountain, are essential to support the reliability of the grid in Alberta as wind and solar penetration increase on the path to net-zero electricity,- said John Kousinioris, President and Chief Executive Officer of TransAlta.

We are thrilled to be entering into this partnership with TransAlta to develop the Tent Mountain Renewable Energy Complex. TransAlta has been operating in the Alberta power market for more than 110 years and brings many skill sets which are complementary to Montem’s,- said Peter Doyle, Managing Director and Chief Executive Officer of Montem.

TransAlta will pay Montem approximately $8 million upon closing the transaction with additional payments of up to $17 million (approximately $25 million total) contingent on the achievement of specific development and commercial milestones. The acquisition also includes the intellectual property associated with a 100 MW offsite green hydrogen electrolyser and a 100 MW offsite wind development project. The closing of the transaction remains subject to customary closing conditions, including receipt by Montem of shareholder approval, with closing expected to occur in March 2023. The Project will be independent of TransAlta’s existing Alberta hydro assets and will be managed through this partnership. TransAlta bears no exposure to reclamation obligations nor to any environmental liabilities arising from Montem’s historical mining operations at the Tent Mountain site.

About Montem Resources

Montem Resources (ASX: MR1) is a steelmaking coal and renewable energy development company that owns and leases coal tenements and freehold land in the Canadian provinces of Alberta and British Columbia. The Company’s objective is to advance its steelmaking coal projects and renewable energy complex in the Crowsnest Pass, Alberta. The Company has planned an integrated mining complex in the Crowsnest Pass, focusing on the low-cost development of open-cut operations that leverage central infrastructure. This is centered around the Tent Mountain Mine Redevelopment Project, and the Chinook Vicary Project.

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 111 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 been recognized by CDP with an ‘A-‘ rating. TransAlta has achieved a 61 per cent reduction in GHG emissions since 2015.

For more information about TransAlta, visit our web site at transalta.com.

Cautionary Statement Regarding Forward-Looking Information

Note: All financial figures are in Canadian dollars unless otherwise indicated.

*Investor Inquiries:*	*Media Inquiries:*
Phone: 1-800-387-3598 in Canada and U.S.	Phone: 1-855-255-9184
Email: [email protected]	Email: [email protected]

Media Advisory: TransAlta and TransAlta Renewables Fourth Quarter and Full Year 2022 Results and Conference Call

Posted on January 23, 2023January 7, 2025 by kevin_wick

TransAlta Corporation (TransAlta) (TSX: TA) (NYSE: TAC) will release its fourth quarter and full year 2022 results before markets open on Thursday, February 23, 2023. 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.

TransAlta Renewables Inc. (TransAlta Renewables) (TSX:RNW) will release its fourth quarter and full year 2022 results before markets on Thursday, February 23, 2023. Any questions regarding TransAlta Renewables may be asked on the TransAlta conference call.

Fourth Quarter and Full Year 2022 Conference Call:

Toll-free North American participants call: 1-888-664-6392
Webcast link: https://app.webinar.net/eodKJ0BLj5P

Related materials will be available on the Investor Centre section of TransAlta’s website at https://transalta.com/investors/presentations-and-events/. If you are unable to participate in the call, the instant replay is accessible at 1-888-390-0541 (Canada and USA toll free) with TransAlta pass code 499174 followed by the # sign. A transcript of the broadcast will be posted on TransAlta’s website once it becomes available.

About TransAlta:

For more information about TransAlta, visit its website at transalta.com.

About TransAlta Renewables Inc.:

TransAlta Renewables is among the largest of any publicly traded renewable independent power producers (“IPP”) in Canada. Our asset platform and economic interests are diversified in terms of geography, generation and counterparties and consist of interests in 26 wind facilities, 11 hydroelectric facilities, eight natural gas generation facilities, two solar facilities, one natural gas pipeline, and one battery storage project, representing an ownership interest of 2,965 megawatts of owned generating capacity, located in the provinces of British Columbia, Alberta, Ontario, QuÃ©bec, New Brunswick, the States of Pennsylvania, New Hampshire, Wyoming, Massachusetts, Michigan, Minnesota, Washington, North Carolina, and the State of Western Australia. For more information about TransAlta Renewables, visit its web site at transaltarenewables.com.

For more information:

Investor Inquiries:
Phone: 1-800-387-3598 in Canada and U.S. Email: [email protected]

Media Inquiries:
Phone: 1-855-255-9184 Email: [email protected]

TransAlta Announces Outlook for 2023 and Update on Corporate Strategy

Posted on December 15, 2022December 15, 2022 by kevin_wick

TransAlta Corporation (TransAlta or the Company) (TSX: TA) (NYSE: TAC) announced today its financial outlook for 2023.

Highlights

Adjusted EBITDA⁽¹⁾ range of $1.20 billion to $1.32 billion
Free Cash Flow⁽¹⁾⁽²⁾range of $560 million to $660 million or FCF per share range of $2.07 to $2.44
Sustaining capital⁽³⁾range of $140 million to $170 million
Continued delivery of TransAlta’s Clean Electricity Growth Plan by reaching final investment decision on 500 MW of additional clean energy projects across Alberta, the United States and Australia to deliver $75 million to $100 million of incremental adjusted EBITDA
Appointment of Ms. Manjit Sharma to the Company’s Board of Directors effective Jan. 1, 2023

Strategy Update

Continuing strong FCF supports TransAlta’s strategy of increasing shareholder value through significant capital allocation to contracted renewables growth
Due to its strong financial position, TransAlta is positioned as the primary growth vehicle for the consolidated TransAlta group and expects to advance its Clean Electricity Growth Plan
The Company will support organic expansions and opportunities to manage the current Canadian and Australian tax horizons of TransAlta Renewables Inc. (“TransAlta Renewables”), as well as support the sustainability of the TransAlta Renewables’ dividend

We are pleased to announce that our annual outlook highlights continuing strong cash flow expectations for 2023. Our fleet remains well positioned to capture the ongoing strength that we see in the Alberta merchant market. We are focused on redeploying these cash flows toward growing our contracted renewables asset base, which will create further value for our shareholders as we work to deliver our 2 GW renewables growth target by 2025,” said John Kousinioris, President and Chief Executive Officer of TransAlta.

As we further advance our Clean Electricity Growth Plan and decarbonization efforts, TransAlta is well positioned to fully execute our growth plan. As we move forward, we expect to prioritize new growth investments within the TransAlta parent company. TransAlta Renewables will continue to retain growth opportunities where it has a right of first offer on organic expansions or where there is a mutual benefit to manage its tax horizon in order to sustain its current dividend, which is highly valued by its income-focused shareholders including TransAlta, added Mr. Kousinioris.

2023 Strategic Priorities

In addition to meeting the financial targets set out in the outlook, the Company is focused on the following key priorities for 2023:

Advance customer-centred power solutions, renewables and storage, and grid reliability products for our Canadian, United States and Australian markets
Continue execution of the Clean Electricity Growth Plan to deliver 2 GW of new generation and a 5 GW growth pipeline by 2025 by reaching final investment decision on 500 MW of additional clean energy projects across Canada, the United States and Australia
Develop and maintain a growing pipeline of greenfield and brownfield development opportunities that add at least 1,500 MW of new development sites to our pipeline
Achieve commercial operation and integration of the Garden Plain wind project, Northern Goldfields solar and storage project, White Rock and Horizon Hill wind projects and the Mount Keith transmission project ensuring these projects are delivered safely, on-time and on-budget consistent with their expected operating and financial performance expectations
Complete the rehabilitation of Kent Hills targeting a safe return of the wind facility to full operations in the second half of 2023
Advance a new technology roadmap that aligns with the Clean Electricity Growth Plan
Advance long-term contractedness of the Alberta Electricity Portfolio through new and existing sales channels
Deliver permanent financing for growth projects by executing tax equity or other financing program in order to monetize the value of production tax credits and other potential tax attributes

Update to Clean Electricity Growth Plan

To date, the Company has announced 800 MW of projects for a total cost of $1.5 billion toward our 2 GW Clean Electricity Growth Plan. These projects are expected to deliver $147 million of annualized adjusted EBITDA. With the current inflationary environment, we expect costs on future projects to be higher based on increases to expected pricing of equipment and construction labour. Although we estimate that the remaining projects will cost more, we see continuing demand for renewable energy and we expect PPA prices to respond to absorb these higher costs across the industry. As a result, we forecast that expected returns on projects will remain intact. Accordingly, we have reset our capital investment target to $3.6 billion with an increased incremental EBITDA target of $315 million.

Clean Electricity Growth Plan Targets	Revised Target	Original Target	Achieved to Date	% of Revised Target Achieved
Renewable Energy Capacity	2 GW	2 GW	800 MW	40%
Capital Investment	$3.6 billion	$3 billion	$1.5 billion	41%
Incremental EBITDA	$315 million	$250 million	$147 million	47%

Appointment of New Board Member

The Company is pleased to announce the appointment of Ms. Manjit Sharma to the Board of Directors effective January 1, 2023. Ms. Sharma brings over 30 years of experience that spans a variety of industries, most recently serving as Chief Financial Officer of WSP Canada Inc. In this role, she was responsible for leading the finance, real estate, procurement, tax and shared services functions across Canada. Prior to WSP Canada Inc., she was on the National Executive Team of General Electric Canada (GE Canada), serving as Chief Financial Officer from 2016 to 2019. From 1999 to 2016, she held various senior positions with GE Canada, with responsibilities that spanned strategic planning and analysis, mergers and acquisitions, tax oversight, risk, governance, and diversity and inclusion. Ms. Sharma currently serves as a board member of each of Vermilion Energy Inc., Finning International Inc. and Export Development Canada. She is also a member of the GE Canada Pension Trust Committee.

Ms. Sharma holds a Bachelor of Commerce degree (with Honours) from the University of Toronto, is a Fellow Chartered Accountant and holds the ICD.D Directors designation and the GCB.D Global Competent Boards designation. In 2019, Ms. Sharma was recognized as one of Canada’s Top 100 Most Powerful Women by the Women’s Executive Network.

ESG Targets

The Company has a comprehensive and ambitious set of environment, social, and governance (ESG) targets that support the long-term success of our business and highlight our ESG value proposition. These targets include:

Environment

Complete TransAlta’s off-coal transition by retiring our single remaining coal unit in the United States by the end of 2025
Achieve a company-wide reduction of greenhouse gases emissions (GHG) of 75 per cent over 2015 levels by 2026
Develop new renewable projects and power offerings that support customer sustainability goals by delivering low cost, reliable and clean energy solutions

Social

Achieve at least 40 per cent gender diversity among all employees by 2030
Maintain equal pay for women in equivalent roles as men
Support equal access to all levels of education for youth and Indigenous peoples through financial support and employment opportunities
Provide Indigenous cultural awareness training to all U.S. and Australian-based employees by the end of 2023

Governance

Achieve 50 per cent female representation on the Board of Directors of the Company by 2030
Maintain our position as a leader in integrated ESG disclosure

The Company continues to report on progress in alignment with major frameworks and was recently upgraded to an A- score from CDP (formerly Climate Disclosure Project).

2023 Financial Outlook

Comparable EBITDA is estimated to be between $1.20 billion to $1.32 billion. The midpoint of the range represents continued strong performance compared to historical levels. The Company expects comparable EBITDA for 2023 to be impacted by a number of factors, including:

Continued strong merchant pricing levels in Alberta though at a lowered target price range than 2022 based on our fundamental market forecast. The lower price expectations are driven by normalized weather expectations and the addition of new wind and solar supply including TransAlta’s Garden Plain wind facility, which is expected to achieve commercial operation in early 2023. This will be partially offset by lower fuel costs due to favourable natural gas hedges
Adjusted EBITDA contributions from newly commissioned projects that include Garden Plain, White Rock, Horizon Hill, Northern Goldfields Solar and Mount Keith transmission asset additions
Completion of the rehabilitation outage of Kent Hills 1 and 2 and fully returning the wind facility to service in the second half of 2023
Adjusted performance expectations from the Energy Marketing segment due to exceptional performance achieved in 2022 partially driven by timing of cash settlements. The reversal of these settlements are included in our 2023 outlook.

The Company expects sustaining capital to be in the range of $140 million to $170 million consistent with current levels.

FCF is expected to be between $560 million and $660 million excluding the impact of rehabilitation capital expenditures required at Kent Hills. The midpoint of the range represents a 9 per cent increase over 2021 levels and a 19 per cent decrease from the midpoint of the 2022 outlook. This is largely driven by lower expected Alberta power pricing in 2023 and a return to normal performance from the Energy Marketing segment, both of which will be partially offset by the contribution from new assets.

The following table summarizes and provides additional details pertaining to our 2023 outlook:

Measure (millions)	2023 Target	2022 Target	2021 Actual
Adjusted EBITDA⁽¹⁾	$1,200 and $1,320	$1,380 to $1,460	$1,263
FCF ⁽¹⁾	$560 and $660	$725 to $775	$562

Range of key power price assumptions:

Market	2023 Prices	2022 Prices
Alberta Spot ($/MWh)	$105 and $135	$125 to $150
Mid-C Spot ($/MWh)	US$75 to US$85	US$55 to US$65
AECO Gas Price ($/GJ)	$4.60	$5.00 to $6.00

Alberta spot price sensitivity: a +/- $1 per MWh change in spot price is expected to have a +/- $3.5 million annualized impact on Comparable EBITDA.

Other assumptions relevant to 2023 financial outlook (millions):

Sustaining capital⁽³⁾	$140 to $170
Energy marketing gross margin	$90 to $110

Alberta Hedging assumptions full year 2023:

Hedged production (GWh)	5,200
Hedge price ($/MWh)	$74.00
Hedged gas volumes (GJ)	58.4 million
Hedge gas price ($/GJ)	$2.24

Notes

(1) These items are not defined and have no standardized meaning under IFRS. Presenting these items from period to period provides management and investors with the ability to evaluate earnings (loss) trends more readily in comparison with prior periods results. Please refer to the Segmented Financial Performance and Operating Results section of the MD&A for further discussion of these items, including, where applicable, reconciliations to measures calculated in accordance with IFRS. See also the Additional IFRS Measures and Non-IFRS Measures section of this release.

(2) Free cash flow per share is calculated using the weighted average number of common shares outstanding. The weighted average number of common shares outstanding for the three and nine months ended Sept. 30, 2022 was 271 million shares. Please refer to the Non-IFRS financial measures section in this release for the purpose of this non-IFRS ratio.

(3) Excludes payments associated with finance leases and Kent Hills rehabilitation capital.

Non-IFRS financial measures and other specified financial measures

We use a number of financial measures to evaluate our performance and the performance of our business segments, including measures and ratios that are presented on a non-IFRS basis, as described below. Unless otherwise indicated, all amounts are in Canadian dollars and have been derived from our audited annual 2021 consolidated financial statements and the unaudited interim condensed consolidated statements of earnings (loss) for the three and nine months ended Sept. 30, 2022, prepared in accordance with IFRS. We believe that these non-IFRS amounts, measures and ratios, read together with our IFRS amounts, provide readers with a better understanding of how management assesses results.

Non-IFRS amounts, measures and ratios do not have standardized meanings under IFRS. They are unlikely to be comparable to similar measures presented by other companies and should not be viewed in isolation from, or as an alternative for, or more meaningful than our IFRS results.

Adjusted EBITDA

In the fourth quarter of 2021, comparable EBITDA was relabeled as adjusted EBITDA to align with industry standard terminology. Each business segment assumes responsibility for its operating results measured by adjusted EBITDA. Adjusted EBITDA is an important metric for management that represents our core business profitability. In the second quarter of 2022, our adjusted EBITDA composition was adjusted to include the impact of closed positions that are effectively settled by offsetting positions with the same counterparty to reflect the performance of the assets and Energy Marketing segment in the period in which the transactions occur. Accordingly, the Company has applied this composition to all previously reported periods. Interest, taxes, depreciation and amortization are not included, as differences in accounting treatments may distort our core business results. In addition, certain reclassifications and adjustments are made to better assess results excluding those items that may not be reflective of ongoing business performance. This presentation may facilitate the readers’ analysis of trends. Adjusted EBITDA is a non-IFRS measure. Please refer to M39-M40 of the MD&A for a description of adjustments made.

Average Annual EBITDA

Average annual EBITDA is a non-IFRS financial measure that is forward-looking and is used to show the average annual EBITDA that the project currently under construction is expected to generate upon completion.

Funds From Operations

FFO is an important metric as it provides a proxy for cash generated from operating activities before changes in working capital and provides the ability to evaluate cash flow trends in comparison with results from prior periods. FFO is a non-IFRS measure.

Free Cash Flow

FCF is an important metric as it represents the amount of cash that is available to invest in growth initiatives, make scheduled principal repayments on debt, repay maturing debt, pay common share dividends or repurchase common shares. Changes in working capital are excluded so FFO and FCF are not distorted by changes that we consider temporary in nature, reflecting, among other things, the impact of seasonal factors and the timing of receipts and payments. FCF is a non-IFRS measure.

Non-IFRS Ratios

FFO per share, FCF per share and adjusted net debt to adjusted EBITDA are non-IFRS ratios that are presented in the MD&A. Refer to the Reconciliation of Cash Flow from Operations to FFO and FCF and Key Financial Non-IFRS Ratios sections of the MD&A for additional information.

FFO per share and FCF per share

FFO per share and FCF per share are calculated using the weighted average number of common shares outstanding during the period. FFO per share and FCF per share are a non-IFRS ratios.

Reconciliation of these non-IFRS financial measures to the most comparable IFRS measure are provided below.

About TransAlta Corporation:

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: 2023 annual financial guidance, including adjusted EBITDA and free cash flow; the Company’s strategy of allocating capital to contracted renewables growth; TransAlta being the primary growth vehicle for the consolidated TransAlta group; the Company’s support for organic expansions and opportunities to manage the current Canadian and Australian tax horizons of TransAlta Renewables; the Company’s support for the sustainability of the TransAlta Renewables’ dividend; the Company’s execution towards targets associated with its Clean Electricity Growth Plan, including the amount of incremental EBITDA to be delivered on the execution of such growth plan ; the returns on the Company’s growth projects will remain intact despite an expected increase to costs; the execution of the Company’s growth plan without the need for external capital; the key priorities for 2023, including adding at least 1,500 MW of new development sites to the Company’s pipeline; achieving the commercial operation and integration of each of the Garden Plain wind project, Northern Goldfields solar and storage project, White Rock and Horizon Hill wind projects and the Mount Keith transmission project on-time and on-budget; completing the rehabilitation of Kent Hills and realizing a safe return of the wind facility to full operations in the second half of 2023; delivering permanent financing for growth projects by executing tax equity or other financing program in order to monetize the value of production tax credits and other potential tax attributes; sensitivity of 2023 financial performance to Alberta pricing; the Company’s ESG targets, including the Company’s ability to achieve targets relating to diversity and emission reductions; and guidance ranges for Alberta spot price, Mid-C spot price, AECO gas price, and sustaining capital. 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 current political and regulatory environments; the price of power in Alberta and the extent of hedging to occur in Alberta (as described above); that PPA prices will increase generally to account for the higher costs across the industry; assumptions regarding Mid-C spot price and AECO gas price; 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: operational risks involving our facilities; changes in market power and gas prices where we operate; unplanned outages at generating facilities and the capital investments required to address such outages; any delays, cost increases or operational issues with any of our current growth projects, including the Northern Goldfields Solar Project or the Garden Plain wind project; equipment failure and our ability to carry out repairs in a cost effective and timely manner, including the Kent Hills remediation; the effects of weather, catastrophes and public health crises; global supply chain disruptions impacting major maintenance and growth projects; disruptions in the source of thermal fuels, water, solar or wind resources required to operate our facilities; energy trading risks, including risks arising from the Company’s exposure to volatile markets and the regulatory risks associated with the Company’s trading and optimization activities; failure to obtain necessary regulatory approvals in a timely fashion, or at all; inability to satisfy all conditions and requirements associated with announced 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, including an escalation of the war in Ukraine; general economic conditions in the geographic areas in which TransAlta operates; disputes or claims involving TransAlta or TransAlta Renewables; and other risks and uncertainties discussed in the Company’s materials filed with the securities regulatory authorities from time to time and as also set forth in the Company’s MD&A and Annual Information Form for the year ended Dec. 31, 2021. 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.

Note: All financial figures are in Canadian dollars unless otherwise indicated.

*Investor Inquiries:*	*Media Inquiries:*
Phone: 1-800-387-3598 in Canada and U.S.	Phone: 1-855-255-9184
Email: [email protected]	Email: [email protected]

TransAlta Declares Dividends

Posted on December 12, 2022January 7, 2025 by Ben Harris

The Board of Directors of TransAlta Corporation (TSX: TA) (NYSE: TAC) declared a quarterly dividend of $0.055 per common share payable on April 1, 2023 to shareholders of record at the close of business on March 1, 2023.

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 December 31, 2022 up to but excluding March 31, 2023:

Preferred Shares	TSX Stock Symbol	Dividend Rate	Dividend Per Share	Record Date	Payment Date
Series A	TA.PR.D	2.877%	$0.17981	March 1, 2023	March 31, 2023
Series B*	TA.PR.E	6.163%	$0.37991	March 1, 2023	March 31, 2023
Series C	TA.PR.F	5.854%	$0.36588	March 1, 2023	March 31, 2023
Series D*	TA.PR.G	7.233%	$0.45578	March 1, 2023	March 31, 2023
Series E	TA.PR.H	6.894%	$0.43088	March 1, 2023	March 31, 2023
Series G	TA.PR.J	4.988%	$0.31175	March 1, 2023	March 31, 2023

*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 hydro-electric power. For over 111 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 61 per cent reduction in GHG emissions since 2015.

For more information about TransAlta, visit its website at transalta.com.

For more information:

*Investor Inquiries:*	*Media Inquiries:*
Phone: 1-800-387-3598 in Canada and U.S.	Phone: 1-855-255-9184
Email: [email protected]	Email: [email protected]

TransAlta Announces Pricing of US$400 Million Senior Green Bond Offering

Posted on November 14, 2022November 14, 2022 by kevin_wick

TransAlta Corporation (TransAlta) (TSX: TA; NYSE: TAC) is pleased to announce that it priced a public offering (the Offering) of US$400 million aggregate principal amount of its 7.750% senior notes due November 15, 2029, at an issue price equal to 100% of the principal amount of the notes, in an underwritten U.S. public offering. Including the gain on the corresponding interest rate hedges, the issuance equates to an effective yield of approximately 5.982%. Closing of the Offering is expected to occur on or about November 17, 2022.

TransAlta intends to use the net proceeds from the sale of the notes to repay C$100 million drawn on its credit facility and replace balance sheet cash used to fund the repayment in full of TransAlta’s 4.500% unsecured senior notes on November 15, 2022 and pay any related fees and expenses. We intend to allocate an amount equal to the net proceeds from this offering to finance or refinance, in part or in full, new and/or existing eligible green projects in accordance with our Green Bond Framework.

The Offering is made pursuant to a preliminary prospectus supplement dated November 14, 2022 to a short form base shelf prospectus of TransAlta dated June 28, 2021, which forms a part of and is included in TransAlta’s registration statement on Form F-10, filed in the United States with the U.S. Securities and Exchange Commission (SEC). A final prospectus supplement in respect of the offering of the notes will be filed with the SEC. The short form base shelf prospectus and the prospectus supplements contain important detailed information about the notes. Copies of these documents may be obtained without charge by visiting the SEC’s EDGAR website at www.sec.gov or from Attention: RBC Capital Markets, 200 Vesey Street, 8th Floor, New York, New York 10281-8098, Telephone: 212-428-6200.

This press release shall not constitute an offer to sell or the solicitation to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration under the securities laws of any such state or jurisdiction. The notes being offered have not been approved or disapproved by the SEC or any Canadian securities regulatory authority, nor has any authority passed upon the accuracy or adequacy of the short form base shelf prospectus or the prospectus supplement.

About TransAlta:
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 111 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 61 per cent reduction in GHG emissions since 2015.

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: TransAlta’s intention to use the net proceeds from the Offering to replace balance sheet cash and any indebtedness drawn to fund the repayment in full of TransAlta’s 4.500% unsecured senior notes on November 15th, 2022, and pay any related fees and expenses; TransAlta’s intention to allocate an equivalent amount to the net proceeds of the Offering to finance or refinance, in part or in full, new and/or existing eligible green projects in accordance with TransAlta’s Green Bond Framework; and the completion and expected closing date of the Offering. 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 current political and regulatory environment, the price of power in Alberta and the condition of the financial markets. 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: operational risks involving our facilities; changes in market prices where we operate; unplanned outages at generating facilities and the capital investments required; equipment failure and our ability to carry out repairs in a cost effective and timely manner, including the Kent Hills remediation; the effects of weather, catastrophes and public health crises; global supply chain disruptions impacting major maintenance and growth projects; disruptions in the source of thermal fuels, water, solar or wind required to operate our facilities, including the necessary natural gas supply; energy trading risks; failure to obtain necessary regulatory approvals in a timely fashion, or at all; inability to satisfy all conditions and requirements associated with announced growth projects; negative impact 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); changes in prevailing interest rates; currency exchange rates; inflation levels and commodity prices; armed hostilities, including an escalation of the war in Ukraine; general economic conditions in the geographic areas where TransAlta operates; disputes or claims involving TransAlta or TransAlta Renewables; and other risks and uncertainties discussed in TransAlta’s materials filed with the securities regulatory authorities from time to time and as also set forth in TransAlta’s MD&A and Annual Information Form for the year ended Dec. 31, 2021. 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.

For more information:

Investor Inquiries:
Phone: 1-800-387-3598 in Canada and U.S. Email: [email protected]

Media Inquiries: Phone: 1-855-255-9184 Email: [email protected]

TransAlta Announces Public Offering of U.S. Senior Green Bonds and releases inaugural Green Bond Framework

Posted on November 14, 2022November 14, 2022 by Ben Harris

TransAlta Corporation (TransAlta) (TSX: TA; NYSE: TAC) is pleased to announce it has commenced a U.S. public offering of its senior notes. TransAlta intends to use the net proceeds from the sale of the notes to repay C$100 million drawn on its credit facility and replace balance sheet cash used to fund the repayment in full of TransAlta’s 4.500% unsecured senior notes on November 15, 2022 and pay any related fees and expenses. TransAlta also intends to allocate an amount equal to the net proceeds from this offering to finance or refinance, in part or in full, new and/or existing eligible green projects in accordance with our Green Bond Framework (the Framework). The Framework received a second-party opinion from Sustainalytics which verified that it aligned with the Green Bond Principles from the International Capital Markets Association. The precise timing, size and terms of the offering are subject to market conditions and other factors.

RBC Capital Markets LLC, BofA Securities Inc. and CIBC Capital Markets LLC are joint book runners for the offering which is being made pursuant to a preliminary prospectus supplement dated November 14, 2022, to a short form base shelf prospectus of TransAlta dated June 28, 2021, which forms a part of and is included in TransAlta’s registration statement on Form F-10, filed in the United States with the U.S. Securities and Exchange Commission (SEC). A final prospectus supplement in respect of the offering of the notes will be filed with the SEC. The short form base shelf prospectus and prospectus supplements contain important detailed information about the notes. Copies of these documents may be obtained without charge by visiting the SEC’s EDGAR website at www.sec.gov or from Attention: RBC Capital Markets, 200 Vesey Street, 8th Floor, New York, New York 10281-8098, Telephone: 212-428-6200.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction. The notes being offered have not been approved or disapproved by the SEC or any Canadian securities regulatory authority, nor has any authority passed upon the accuracy or adequacy of the short form base shelf prospectus or the prospectus supplement.

About TransAlta:

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 111 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 61 per cent reduction in GHG emissions since 2015.

Cautionary Statement Regarding Forward-Looking Information

TransAlta’s 4.500% unsecured senior notes on November 15th, 2022, and pay any related fees and expenses; TransAlta’s intention to allocate an equivalent amount to the net proceeds of the offering to finance or refinance, in part or in full, new and/or existing eligible green projects in accordance with TransAlta’s Green Bond Framework; and TransAlta’s expectations that its Green Bond Framework, and any future Green Bond issuances, will enable TransAlta to further expand its commitment to accelerate the deployment of renewable energy and other environmentally beneficial projects . 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 current political and regulatory environment, the price of power in Alberta and the condition of the financial markets. 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: operational risks involving our facilities; changes in market prices where we operate; unplanned outages at generating facilities and the capital investments required; equipment failure and our ability to carry out repairs in a cost effective and timely manner, including the Kent Hills remediation; the effects of weather, catastrophes and public health crises; global supply chain disruptions impacting major maintenance and growth projects; disruptions in the source of thermal fuels, water, solar or wind required to operate our facilities, including the necessary natural gas supply; energy trading risks; failure to obtain necessary regulatory approvals in a timely fashion, or at all; inability to satisfy all conditions and requirements associated with announced growth projects; negative impact 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); changes in prevailing interest rates; currency exchange rates; inflation levels and commodity prices; armed hostilities, including an escalation of the war in Ukraine; general economic conditions in the geographic areas where TransAlta operates; disputes or claims involving TransAlta or TransAlta Renewables; and other risks and uncertainties discussed in TransAlta’s materials filed with the securities regulatory authorities from time to time and as also set forth in TransAlta’s MD&A and Annual Information Form for the year ended Dec. 31, 2021. 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.

For more information:

*Investor Inquiries:*	*Media Inquiries:*
Phone: 1-800-387-3598 in Canada and U.S.	Phone: 1-855-255-9184
Email: [email protected]	Email: [email protected]

TransAlta Reports Third Quarter 2022 Results, Increases 2022 Financial Guidance, and Announces a 10% Common Share Dividend Increase

Posted on November 8, 2022June 24, 2025 by kevin_wick

Third Quarter 2022 Financial Highlights

Adjusted EBITDA^(1),(2) of $555 million, an increase of 38% over the same period in 2021
Free Cash Flow⁽¹⁾of $393 million, or $1.45 per share, an increase of $0.68 or 88% on a per-share basis compared to the same period in 2021
Earnings before income taxes of $126 million, compared to a loss before income taxes of $441 in the same period in 2021
Net earnings attributable to common shareholders of $61 million or $0.23 per share, compared to a loss of $1.68 per share for the same period in 2021
Cash flow from operating activities of $204 million, a decrease of $406 million for the same period in 2021
Increased annual common share dividend by 10% to $0.22 per year effective Jan. 1, 2023, representing the fourth consecutive annual increase
Returned $34 million of capital to common shareholders during the nine months ended Sept. 30, 2022, through share buybacks of 2.7 million common shares

Other Business Highlights

Executed contract renewals for five additional years for the Sarnia cogeneration and Melancthon 1 wind facilities with the Ontario Independent Electricity System Operator (“IESO”)
Expanded TransAlta’s development pipeline by 553 MW across Canada and the United States
Announced Ms. Beverlee Park’s retirement from the Board of Directors

2022 Revised Outlook

Increased 2022 annual financial guidance as set out below:
Adjusted EBITDA range of $1,380 to $1,460 million (original guidance of $1,065 to $1,185 million)
FCF range of $725 to $775 million (original guidance of $455 to $555 million)

TransAlta Corporation (TransAlta or the Company) (TSX: TA) (NYSE: TAC) today reported its financial results for the three and nine months ended Sept. 30, 2022.

“Our third quarter results demonstrated the value of our strategically diversified fleet in Alberta. Our Alberta Electricity Portfolio, comprising our Alberta hydro, gas and wind facilities, led our results with exceptional operational availability and a portfolio position that benefited from the strong pricing environment,” said John Kousinioris, President and Chief Executive Officer. “With this exceptional performance across the fleet and our continuing positive outlook on market expectations for the balance of the year, we have revised our 2022 financial guidance upwards for both adjusted EBITDA and free cash flow, with revised ranges now exceeding the top end of our original targets. I am also pleased to announce that the Board of Directors has approved a 10% increase to the common share dividend effective for the first quarter 2023 dividend payment.”

“We continue to execute on our strategy of developing contracted renewables and are progressing several advanced-stage projects on multiple fronts. Our focus is to also expand our development pipeline and I am pleased to share that this quarter we have added 553 MW of development opportunities to our pipeline,” added Mr. Kousinioris.

Set out below are additional highlights of TransAlta’s business activities from the quarter, including the Company’s progress on advancing its Clean Electricity Growth Plan as well as details regarding the Company’s financial performance and liquidity.

Key Business Developments

Executed Contract Renewals with the IESO at Sarnia Cogeneration and Melancthon 1 Wind Facilities

On Aug. 23, 2022, TransAlta Renewables Inc., a subsidiary of the Company (“TransAlta Renewables”) announced that it was awarded capacity contracts for the Sarnia cogeneration facility and the Melancthon 1 wind facility from the IESO as part of the IESO’s Medium-Term Capacity Procurement Request for Proposals. The new capacity contracts run from May 1, 2026 to April 30, 2031 and will extend the period of contracted revenues of the Sarnia cogeneration facility to April 30, 2031. The Company expects the gross margin from the Sarnia cogeneration facility to step down by approximately thirty per cent as a result of the IESO price cap under the new contract.

New Term Facility

During the third quarter of 2022, the Company closed a two-year $400 million floating rate Term Facility with its banking syndicate with a maturity date of Sept. 7, 2024.

Changes to Board of Directors

On Sept. 30, 2022, Ms. Beverlee Park retired from TransAlta’s Board of Directors. Ms. Park served on the Board of Directors since 2015 and as Chair of the Audit, Finance and Risk Committee from April 2018 to April 2022. The Company recognizes her for the many contributions made by Ms. Park to TransAlta and thanks her for the many years of service.

Conversion Results for Series E and F Preferred Shares

On Sept. 21, 2022, there were 89,945 Cumulative Redeemable Rate Reset First Preferred Shares, Series E (Series E Shares) tendered for conversion, which was less than the one million shares required to give effect to conversions into Cumulative Redeemable Rate Reset First Preferred Shares, Series F (Series F Shares). As a result, the Series E Shares were not converted into Series F Shares.

Liquidity and Financial Position

The Company continues to maintain a strong financial position in part due to long-term contracts and hedged positions. At the end of the third quarter of 2022, TransAlta had access to $2.3 billion in liquidity, including $0.8 billion in cash and cash equivalents.

Accelerated Clean Electricity Growth Plan

On Sept. 28, 2021, the Company announced the strategic targets associated with its Clean Electricity Growth Plan.

During the third quarter, the Company added 553 MW to its renewable development pipeline across Canada and the United States, bringing its development pipeline to between 3.6 GW and 4.7 GW.

As of Nov. 7, 2022, the Company has made significant progress in achieving the targets of the Clean Electricity Growth Plan. Refer to Strategy and Capability to Deliver Results in the Company’s Management’s Discussion and Analysis (MD&A) for further details.

Clean Electricity Growth Plan Targets	Target	% of Target Achieved
Renewable Energy Capacity	2 GW	40%
Capital Investment	$3 Billion	49%
Incremental EBITDA	$250 Million	59%

Normal Course Issuer Bid

During the nine months ended Sept. 30, 2022, the Company purchased and cancelled a total of 2.7 million common shares at an average price of $12.50 per common share, for a total cost of $34 million.

Third Quarter 2022 Highlights

*$ millions, unless otherwise stated*	3 months ended		9 months ended
*$ millions, unless otherwise stated*	Sept. 30, 2022	Sept. 30, 2021	Sept. 30, 2022	Sept. 30, 2021
Adjusted availability (%)	93.8	89.2	90.1	87.5
Production (GWh)	5,432	6,053	15,253	16,282
Revenues	929	850	2,122	2,111
Adjusted EBITDA⁽¹⁾	555	402	1,093	1,043
Earnings (loss) before income taxes	126	(441)	346	(348)
Net earnings (loss) attributable to common shareholders	61	(456)	167	(498)
Cash flow from operating activities	204	610	526	947
FFO⁽¹⁾	488	318	887	808
FCF⁽¹⁾	393	210	646	506
Net earnings (loss) per share attributable to common shareholders, basic and diluted	0.23	(1.68)	0.62	(1.84)
FFO per share^(1),(2)	1.80	1.17	3.27	2.98
FCF per share^(1),(2)	1.45	0.77	2.38	1.87

Download the full news release

TransAlta Declares Dividends

Posted on November 8, 2022January 7, 2025 by kevin_wick

The Board of Directors of TransAlta Corporation (TSX: TA) (NYSE: TAC) declared a quarterly dividend of $0.055 per common share payable on January 1, 2023 to shareholders of record at the close of business on December 1, 2022.

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, 2022 up to but excluding December 31, 2022:

Preferred Shares	TSX Stock Symbol	Dividend Rate	Dividend Per Share	Record Date	Payment Date
Series A	TA.PR.D	2.877%	$0.17981	December 1, 2022	December 31, 2022
Series B*	TA.PR.E	5.348%	$0.33700	December 1, 2022	December 31, 2022
Series C	TA.PR.F	5.854%	$0.36588	December 1, 2022	December 31, 2022
Series D*	TA.PR.G	6.418%	$0.40442	December 1, 2022	December 31, 2022
Series E	TA.PR.H	6.894%	$0.43088	December 1, 2022	December 31, 2022
Series G	TA.PR.J	4.988%	$0.31175	December 1, 2022	December 31, 2022

*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 hydro-electric power. For over 111 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 61 per cent reduction in GHG emissions since 2015.

For more information about TransAlta, visit its website at transalta.com.

For more information:

*Investor Inquiries:*	*Media Inquiries:*
Phone: 1-800-387-3598 in Canada and U.S.	Phone: 1-855-255-9184
Email: [email protected]	Email: [email protected]

Media Advisory: TransAlta and TransAlta Renewables Third Quarter 2022 Results and Conference Call

Posted on October 11, 2022January 7, 2025 by kevin_wick

TransAlta Corporation (TransAlta) (TSX: TA) (NYSE: TAC) will release its third quarter 2022 results before markets open on Tuesday, November 8, 2022. 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.

TransAlta Renewables Inc. (TransAlta Renewables) (TSX:RNW) will release its third quarter 2022 results before markets on Friday, November 4, 2022. Any questions regarding TransAlta Renewables may be asked on the TransAlta conference call.

Third Quarter 2022 Conference Call:
Toll-free North American participants call: 1-888-664-6392
Webcast link: https://app.webinar.net/nr859wn1RkL

Related materials will be available on the Investor Centre section of TransAlta’s website at https://transalta.com/investors/presentations-and-events/. If you are unable to participate in the call, the instant replay is accessible at 1-888-390-0541 (Canada and USA toll free) with TransAlta pass code 828706 followed by the # sign. A transcript of the broadcast will be posted on TransAlta’s website once it becomes available.

About TransAlta:

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 111 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 61 per cent reduction in GHG emissions since 2015.

For more information about TransAlta, visit its website at transalta.com.

About TransAlta Renewables Inc.:

TransAlta Renewables is among the largest of any publicly traded renewable independent power producers (IPP) in Canada. Our asset platform and economic interests are diversified in terms of geography, generation and counterparties and consist of interests in 26 wind facilities, 13 hydroelectric facilities, eight natural gas generation facilities, two solar facilities, one natural gas pipeline, and one battery storage project, representing an ownership interest of 2,968 megawatts of owned generating capacity, located in the provinces of British Columbia, Alberta, Ontario, QuÃ©bec, New Brunswick, the States of Pennsylvania, New Hampshire, Wyoming, Massachusetts, Michigan, Minnesota, North Carolina, Washington and the State of Western Australia.

For more information about TransAlta Renewables, visit its web site at transaltarenewables.com.

For more information:

*Investor Inquiries:*	*Media Inquiries:*
Phone: 1-800-387-3598 in Canada and U.S.	Phone: 1-855-255-9184
Email: [email protected]	Email: [email protected]