TransAlta Stock Price, News & Analysis

TransAlta Corporation (NYSE: TAC) has set ambitious growth targets, aiming for 2 GW of new renewable capacity with a $3 billion investment by 2025. The company plans to accelerate its focus on customer-centered renewables and storage through a 3 GW development pipeline and has approved an 11% increase in its quarterly dividend to $0.05, payable on January 1, 2022. TransAlta is committed to being coal-free by 2025, aiming for a 70% reduction in carbon emissions by 2030 from 2005 levels. However, it has suspended the Sundance Unit 5 repowering due to escalating costs.

TransAlta reported a strong second quarter 2021, achieving comparable EBITDA of $302 million, a 39% increase year-over-year. Free cash flow rose 52% to $138 million or $0.51 per share. Hydro and Alberta Thermal segments led the growth, with EBITDA contributions of $96 million and $85 million, respectively. Adjusted availability decreased to 84.8% due to major maintenance. The company enhanced its 2021 outlook, projecting comparable EBITDA of $1.1 to $1.2 billion and free cash flow of $440 to $515 million.

On August 5, 2021, TransAlta Corporation (TAC) announced a quarterly dividend of $0.0450 per common share, payable on October 1, 2021, to shareholders of record by September 1, 2021. Additionally, dividends for its Cumulative Redeemable Rate Reset First Preferred Shares were declared, with rates and amounts varying by series:

• Series A: $0.17981 (Payment Date: September 30, 2021)
• Series B: $0.13479 (Payment Date: September 30, 2021)
• Series C: $0.25169 (Payment Date: September 30, 2021)
• Series E: $0.32463 (Payment Date: September 30, 2021)
• Series G: $0.31175 (Payment Date: September 30, 2021)

All amounts are in Canadian dollars.

TransAlta Corporation (TAC) has completed the second of three coal-to-gas conversions at its Alberta facilities, reducing CO₂ emissions significantly. The $31.5 million conversion of Keephills Unit 2 (KH2) is part of a broader $96 million investment aimed at transitioning to 100% clean electricity by the end of 2021. This project aligns with TransAlta's goal to cut annual greenhouse gas emissions by 60% by 2030. The conversion not only maintains generation capacity but also creates approximately 800 jobs, benefiting the local economy.

TransAlta Corporation (NYSE: TAC) will announce its Q2 2021 results on August 10, 2021, before market opening. A conference call will take place at 9:00 AM MT, allowing investors and media to discuss the results and ask questions. TransAlta Renewables will also present its Q2 2021 results on the same date during this call. Interested parties can join via a toll-free number or through a webcast link provided in the release. TransAlta continues to focus on clean, reliable energy production across Canada, the U.S., and Australia, showcasing its commitment to sustainability.

TransAlta Corporation (NYSE: TAC) announced the successful closing of the sale of the Pioneer Pipeline to ATCO Gas and Pipelines Ltd. for $255 million, with net cash proceeds of approximately $127.5 million. This move supports TransAlta's off-coal transition strategy and ensures reliable gas supply for its power generation units. Additionally, TransAlta has secured long-term gas transportation agreements with NOVA Gas Transmission for new and existing services. This strategic sale highlights TransAlta's commitment to reducing carbon emissions while maintaining efficient energy supply.

TransAlta Corporation (TAC) announced that the Toronto Stock Exchange has approved its notice to implement a normal course issuer bid (NCIB) for repurchasing up to 14 million common shares, about 7.16% of its public float as of May 18, 2021. The buyback period starts on May 31, 2021, and ends on May 30, 2022, or when the shares are fully repurchased. The company previously repurchased over 6 million shares at an average price of $8.664 under a prior NCIB. TransAlta's leadership believes this strategy may enhance long-term shareholder value.

TransAlta reported strong first quarter 2021 results, with comparable EBITDA reaching $310 million, a 41% increase from 2020. Free cash flow rose to $129 million or $0.48 per share, up 23% year-over-year. The Hydro segment excelled with a comparable EBITDA of $77 million, a 96% jump due to the expiration of long-term power purchase agreements. Despite lower adjusted availability at 88.6%, the company maintained a robust liquidity position with access to $2.1 billion. Overall, TransAlta anticipates performance aligning with upper guidance for 2021.

TransAlta Corporation (NYSE: TAC) held its virtual Annual and Special Meeting of Shareholders on May 4, 2021, with 185,645,958 common shares, or 68.79%, represented. Shareholders approved all resolutions including the election of 12 directors, appointment of Ernst & Young LLP as auditors, and the advisory vote on executive compensation, which received 97.25% approval. Additionally, the 2021 Share Unit Plan and amendments to the Stock Option Plan were also approved, with respective votes of 95.81% and 96.34%. TransAlta continues to focus on clean, reliable power generation.