TransAlta Corporation - TAC STOCK NEWS

TransAlta has completed the acquisition of Heartland Generation and Alberta Power (2000) from Energy Capital Partners for a total purchase price of $542 million. The net cash payment was $215 million before working capital adjustments, reduced by $95 million to reflect Heartland's economic benefit since October 31, 2023.

To comply with federal Competition Bureau requirements, TransAlta agreed to divest Heartland's Poplar Hill and Rainbow Lake assets post-closing, with proceeds going to ECP. TransAlta is a major Canadian power generation company, being the largest hydroelectric power producer in Alberta and one of Canada's largest wind power producers.

TransAlta has revised its agreement to acquire Heartland Generation from Energy Capital Partners for $542 million, reflecting an $80 million price reduction due to required asset divestitures of Poplar Hill and Rainbow Lake (97 MW net ownership). The transaction includes $232 million of low-cost debt and will add 1,747 MW of net capacity to TransAlta's portfolio. The deal values Heartland's portfolio at $270 per kilowatt with an expected EBITDA multiple of 5.4x. The acquisition is expected to generate $85-90 million in annual EBITDA and $20 million in annual corporate pre-tax synergies. Approximately 60% of revenues are contracted with a 15-year weighted-average remaining life. Closing is expected by December 4, 2024.

TransAlta (TSX: TA) (NYSE: TAC) reported strong Q3 2024 financial results with Adjusted EBITDA of $325 million and Free Cash Flow of $140 million ($0.47 per share). The company is tracking toward the upper end of its 2024 guidance with adjusted EBITDA of $1,150-$1,300 million. Key developments include plans to temporarily mothball Sundance Unit 6 effective April 1, 2025, progress in the Heartland Generation acquisition, and the return of $114 million to shareholders through share buybacks. The company maintained strong operational performance with 94.5% adjusted availability, despite lower Alberta spot power prices and milder weather conditions.

TransAlta 's Board of Directors has announced dividend declarations for both common and preferred shares. Common shareholders will receive a quarterly dividend of $0.06 per share, payable on January 1, 2025, with a record date of December 1, 2024. The company also declared quarterly dividends for its Preferred Shares series, with rates ranging from 2.877% to 7.305%, all payable on December 31, 2024. The Series B and D Preferred Shares feature quarterly floating rates that reset each quarter. All amounts are in Canadian dollars.

TransAlta (TSX: TA) (NYSE: TAC) has announced the release of its third quarter 2024 results on Tuesday, November 5, 2024, before markets open. A conference call and webcast for investors, analysts, and media will be held the same day at 9:00 a.m. Mountain Time (11:00 a.m. ET).

The company has provided webcast and telephone registration links for interested parties to participate in the conference call. Related materials will be available on TransAlta's Investor Centre website. For those unable to attend, a replay and transcript will be accessible online.

TransAlta is a diverse electrical power generation company operating in Canada, the United States, and Australia. It is one of Canada's largest wind power producers and Alberta's largest hydroelectric power producer. The company has achieved a 66% reduction in GHG emissions since 2015 and received an upgraded MSCI ESG rating of AA.

TransAlta (TSX: TA; NYSE: TAC) has announced the results of the conversion process for its Cumulative Redeemable Rate Reset Preferred Shares, Series G (Series G Shares) into Cumulative Redeemable Floating Rate Preferred Shares, Series H (Series H Shares). The company received election notices for the conversion of only 20,607 Series G Shares, which falls short of the one million shares required to initiate the conversion process. Consequently, no Series G Shares will be converted into Series H Shares on September 30, 2024. This announcement follows TransAlta's previous press release dated August 22, 2024, which outlined the conversion option for shareholders.

TransAlta (TSX: TA; NYSE: TAC) has announced dividend rates for its Series G and Series H Preferred Shares. For Series G Shares outstanding after September 30, 2024, the annual dividend rate will be 6.77300% for the five-year period ending September 30, 2029. This rate is based on the five-year Government of Canada bond yield plus 3.80000%.

For any Series H Shares issued on September 30, 2024, the initial annual dividend rate will be 8.00500% for the period ending December 31, 2024. This floating rate is calculated as the 90-day Government of Canada Treasury Bills rate plus 3.80000% and will be reset quarterly.

Shareholders wishing to convert their Series G Shares must instruct their broker by 3:00 p.m. (MDT) / 5:00 p.m. (EDT) on September 16, 2024.

TransAlta (TSX: TA; NYSE: TAC) has announced that it will not redeem its Series G Preferred Shares on September 30, 2024. As a result, shareholders have the option to convert their Series G Shares into Series H Shares on a one-for-one basis. The dividend rates for both series will be announced on September 3, 2024.

Key points:

• Conversion Date: September 30, 2024
• Current outstanding Series G Shares: 6,600,000
• Conversion deadline: 3:00 p.m. (MST) / 5:00 p.m. (EST) on September 16, 2024
• Automatic conversion conditions apply if less than 1,000,000 shares remain in either series
• Series H Shares listing on TSX is conditionally approved

TransAlta (TSX: TA, NYSE: TAC) reported strong financial results for Q2 2024, exceeding expectations despite a year-over-year decline in Alberta spot power prices. Key highlights include:

• Free Cash Flow (FCF) per share of $0.57, supported by hedging strategies and new energy sources.
• Adjusted EBITDA of $312 million, down from $387 million in Q2 2023.
• Net earnings attributable to common shareholders of $56 million, equating to $0.18 per share.
• Cash flow from operating activities increased to $108 million, up by $97 million from Q2 2023.

The company achieved commercial operation of new wind facilities and continued share repurchases, enhancing shareholder value. TransAlta reaffirmed its 2024 outlook, projecting an Adjusted EBITDA of $1,150-$1,300 million and FCF of $450-$600 million.