TransAlta Stock Price, News & Analysis

TransAlta Corporation (TAC) announced that the Alberta Court of Appeal has upheld a previous arbitration decision in its favor regarding a force majeure claim. The Court dismissed an application by ENMAX Energy Corporation and the Balancing Pool that sought to overturn the arbitration ruling. This decision confirms that TransAlta is not liable for approximately $167.6 million in availability incentive payments related to the Keephills 1 generating unit incident in 2013.

TransAlta Corporation (TAC) announced that it will not redeem its Series C preferred shares on June 30, 2022. Instead, holders can convert their Series C shares into Series D shares on a one-for-one basis. The annual dividend for Series C will be reset to 5.854% for the next five years. Series D shares will have a quarterly floating rate of 4.577% starting June 30, 2022, adjusted every quarter. Currently, there are 11 million Series C shares outstanding, and the Toronto Stock Exchange has conditionally approved the listing of Series D shares.

TransAlta Corporation (TSX: TA, NYSE: TAC) announced that the Toronto Stock Exchange has accepted its notice to implement a normal course issuer bid (NCIB) for up to 14,000,000 common shares, approximately 7.16% of its public float. The NCIB will commence on May 31, 2022, and end on May 30, 2023. Under this program, TransAlta aims to enhance shareholder value by repurchasing shares when the market price does not reflect their underlying value. The company has previously repurchased 1.4 million shares at an average price of $12.45 under its prior NCIB.

TransAlta reported Q1 2022 financial results, highlighting an adjusted EBITDA of $266 million, down 14% from 2021. Notably, net earnings improved to $186 million or $0.69 per share, compared to a loss of $0.11 last year. Cash flow from operations reached $451 million, up $194 million year-over-year. The company secured long-term Power Purchase Agreements with Meta and Amazon, expanding its renewable portfolio. Challenges included a decrease in gross margin for the Alberta electricity portfolio and increased costs related to the Kent Hills wind facilities rehabilitation.

TransAlta Corporation (TAC) held its Annual and Special Meeting of Shareholders on April 28, 2022, with 69.60% of common shares represented. All twelve director nominees were elected, with the highest votes for John P. Dielwart at 99.67%. Ernst & Young LLP was appointed as auditors for 2022, receiving 96.24% approval. The advisory vote on executive compensation passed with 87.88% support. Additionally, the shareholder rights plan was approved with 96.13% of votes in favor, reflecting strong shareholder backing for management's proposals.

On April 27, 2022, TransAlta Corporation (NYSE: TAC) announced a quarterly dividend of $0.05 per share, payable on July 1, 2022, to shareholders of record by June 1, 2022. In addition, dividends were declared for its Cumulative Redeemable Rate Reset First Preferred Shares, with varying rates across different series.

The payment dates for the preferred shares are also set for June 30, 2022. TransAlta continues to focus on providing clean energy and long-term value for shareholders.

TransAlta Corporation (TSX: TA, NYSE: TAC) will release its Q1 2022 results on May 6, 2022, before market opening. A conference call will occur at 9:00 a.m. MT (11:00 a.m. ET) the same day for investors and analysts, with media inquiries welcome post-call. TransAlta Renewables (TSX: RNW) will announce its results on May 4, 2022. For participation, contact the operator five minutes before the call. Replay options are available, with additional details on TransAlta's Investor Centre.

TransAlta Corporation (NYSE: TAC) has signed a long-term renewable energy purchase agreement with Meta for the 200 MW Horizon Hill Wind Power Project in Logan County, Oklahoma. This agreement allows Meta to access 100% renewable electricity and environmental attributes, supporting their sustainability goals. Construction is set to begin in Q4 2022, with commercial operations targeted for the second half of 2023. The estimated project cost is between US$290 million to US$310 million and is expected to generate annual EBITDA of approximately US$27 million to US$30 million.

TransAlta Corporation (NYSE: TAC) reported strong financial results for Q4 and FY 2021, highlighted by a 15% increase in adjusted EBITDA to $270 million for Q4 and a 36% rise to $1.263 billion annually. Free Cash Flow surged 105% per share in Q4 to $0.39, and 59% to $2.07 per share for the year. However, the company reported a loss before income taxes of $32 million in Q4, improving from $168 million in the same period in 2020. Notable achievements included the completion of coal-to-gas conversions and a significant reduction in carbon emissions.