Q3 2024 and FY 2024 Key HighlightsQ3 Financials - Beat on Revenues, ex-TAC, and Adj. EBITDA; $97M YTD FCF already approaching FY 2024 target of $100M+ Q3 2024 Results: Revenues $433M, Gross profit $133M, ex-TAC Gross Profit $166M, Net loss $6M, Non-GAAP Net Income $22M, Adj. EBITDA $48M, Free Cash Flow $43MStrong YoY growth: Revenues +20%, ex-TAC +30%, Adj. EBITDA +110%, FCF +88%Strong Free Cash Flow conversion: 89% conversion from Adj. EBITDA Reiterating 2024 Revenues, ex-TAC, Adj. EBITDA guidance; Growt ...

Financial Data and Key Metrics Changes - TransAlta reported adjusted EBITDA of CAD 325 million and free cash flow of CAD 140 million or CAD 0.47 per share for Q3 2024, demonstrating strong operational capabilities [8][27] - The company maintained a strong balance sheet with over CAD 1.8 billion in available liquidity, including approximately CAD 400 million in cash [8] - Year-to-date free cash flow reached CAD 521 million or CAD 1.72 per share, positioning the company well to achieve the upper end of its guidance [27] Business Line Data and Key Metrics Changes - The Hydro segment produced adjusted EBITDA of CAD 89 million, in line with expectations despite lower realized prices [22] - The Wind and Solar segment delivered adjusted EBITDA of CAD 44 million, a 19% increase year-over-year, primarily due to the addition of Oklahoma wind assets [23] - The Gas segment achieved adjusted EBITDA of CAD 139 million, with improved availability of 96.3%, although year-over-year contributions were lower due to excess supply conditions [24] - The Energy Transition segment reported adjusted EBITDA of CAD 34 million, increasing year-over-year due to lower purchase power costs [25] - The Energy Marketing segment delivered exceptional performance with adjusted EBITDA of CAD 54 million, an increase of CAD 41 million year-over-year [26] Market Data and Key Metrics Changes - The average spot price in Alberta for Q3 was CAD 55 per megawatt hour, significantly lower than CAD 152 per megawatt hour in the same period of 2023 [28] - Hedge volumes for the quarter were 2,365 gigawatt hours at an average price of CAD 85 per megawatt hour, compared to the average spot power price of CAD 55 per megawatt hour [29][30] Company Strategy and Development Direction - The company is focused on completing the Heartland Generation acquisition and integrating the assets into its fleet [35] - TransAlta is advancing significant contracting and development opportunities at its legacy thermal sites in Washington State and Alberta [10][14] - The company plans to temporarily mothball Sundance Unit 6 effective April 1, 2025, to preserve the unit for future opportunities [10][19] - The company is actively pursuing redevelopment and recontracting opportunities at its legacy thermal sites to support the energy transition [36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the Heartland Generation acquisition and its potential to enhance shareholder value [81][84] - The company remains confident in achieving the upper end of its adjusted EBITDA and free cash flow guidance for 2024 despite larger planned outages in Q4 [21] - Management highlighted the importance of balancing reliability, affordability, and sustainability in the context of increasing data center demand [99][100] Other Important Information - Corporate costs have increased year-over-year due to spending on ERP upgrade programs and strategic growth initiatives [26] - The company is committed to returning value to shareholders through an enhanced share repurchase program, having returned CAD 114 million through share repurchases as of September 30, 2024 [34] Q&A Session Summary Question: Discussion on repurposing thermal sites for data centers - Management indicated a focus on colocation for data centers, leveraging existing facilities and land [41][42] Question: Impact of mothballing Sundance 6 on EBITDA - Management explained that mothballing Sundance 6 was a strategic decision to optimize fleet performance and reduce capital expenditures [53][56] Question: Clarity on Heartland transaction and market conditions - Management remains bullish on the Heartland transaction, viewing it as accretive to shareholder value despite changing market conditions [82][84] Question: Future guidance for 2025 - Management confirmed that guidance for 2025 remains intact, with confidence in hedging levels and production from new wind generation [60][62] Question: Ancillary services performance and market dynamics - Management noted strong performance in ancillary services, with the hydro fleet expected to continue delivering value [106]

transalta Third Quarter 2024 Results November 5, 2024 Disclaimer and forward-looking statements This presentation includes "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"). All forward-looking statements are based on the beliefs as ...

Financial Performance - The company reported strong financial performance for Q3 2024, with Free Cash Flow (FCF) per share of $0.47, driven by proactive hedging and asset management strategies [1][4] - Adjusted EBITDA for Q3 2024 was $325 million, a decrease of 28% compared to $453 million in Q3 2023, primarily due to lower power prices and production in the Hydro and Gas segments [4][13][15] - FCF for Q3 2024 was $140 million, down 39% from $228 million in Q3 2023, mainly due to lower adjusted EBITDA and higher income tax expenses [4][17] - Operational adjusted availability improved to 94.5% in Q3 2024, up from 91.9% in Q3 2023, driven by new asset additions and the return of Kent Hills wind facilities [4][14] Business Developments - The company is advancing the acquisition of Heartland Generation, with ongoing discussions with Energy Capital Partners and regulatory approval from the Competition Bureau [3][5] - Sundance Unit 6 will be temporarily mothballed from April 1, 2025, for up to two years, with flexibility to return to service based on market conditions [3][6] - The company is pursuing opportunities to support the energy transition, including redevelopment and recontracting of legacy thermal assets [3] Shareholder Returns - The company returned $114 million to shareholders through share buybacks in the first nine months of 2024, repurchasing 11.8 million shares at an average price of $9.65 per share [4][9] - The enhanced share repurchase program for 2024 targets up to $150 million, with 76% of the program already completed [4][7] Operational Highlights - Production for Q3 2024 increased by 1% to 5,712 GWh compared to 5,678 GWh in Q3 2023, driven by higher output from the Wind and Solar segment [13] - The Wind and Solar segment saw a 19% increase in adjusted EBITDA to $44 million in Q3 2024, driven by new asset additions and the return of Kent Hills wind facilities [15] - The Gas segment's adjusted EBITDA decreased by 45% to $139 million in Q3 2024, primarily due to lower production and market prices in Alberta [15] Financial Guidance - The company expects 2024 Adjusted EBITDA to be between $1,150 million and $1,300 million, with FCF projected between $450 million and $600 million [4][23] - Alberta spot power prices are expected to range between $60 and $75 per MWh for the remainder of 2024, down from previous assumptions of $75 to $95 per MWh [25] Liquidity and Hedging - The company had $1.8 billion in liquidity as of September 30, 2024, including $401 million in cash [22] - Hedged volumes for Q4 2024 are 2,415 GWh at an average price of $82 per MWh, with hedged gas volumes of 15 million GJ at $2.55 per GJ [27]

https://files.reportify.cc/media/product TRANSALTA CORPORATION Management's Discussion and Analysis Third Quarter Report for 2024 This Management's Discussion and Analysis ("MD&A") contains forward-looking statements. These statements are based on certain estimates and assumptions and involve risks and uncertainties. Actual results may differ materially. Refer to the Forward-Looking Statements section of this MD&A for additional information. Table of Contents | --- | --- | --- | --- | |-------|------------- ...

CALGARY, Alberta, Oct. 04, 2024 (GLOBE NEWSWIRE) -- TransAlta Corporation ("TransAlta") (TSX: TA) (NYSE: TAC) will release its third quarter 2024 results before markets open on Tuesday, November 5, 2024. A conference call and webcast to discuss the results will be held for investors, analysts, members of the media and other interested parties the same day beginning at 9:00 a.m. Mountain Time (11:00 a.m. ET). The media will be invited to ask questions following analysts. Third Quarter 2024 Conference Call: W ...

CALGARY, Alberta, Sept. 17, 2024 (GLOBE NEWSWIRE) -- Further to TransAlta Corporation's ("TransAlta" or the "Company") (TSX: TA; NYSE: TAC) press release dated August 22, 2024, the Company announced today that after taking into account all election notices received for the conversion of the Cumulative Redeemable Rate Reset Preferred Shares, Series G (the "Series G Shares") into Cumulative Redeemable Floating Rate Preferred Shares, Series H (the "Series H Shares"), there were only 20,607 Series G Shares tend ...

Walterdale suspension bridge and saskatchewan river with skyline in Edmonton Alberta Canada at dusk Anthony Mance/iStock via Getty Images Note: All amounts disclosed are in Canadian Dollars. Stock prices refer to the TSX prices. On our previous article on TransAlta Corporation (TSX:TA:CA), we stuck with the bull case. This was after the stock had continued to disappoint. We were bullish on Alberta Power prices as well the company's best-in-class hedging activities. Specifically, we said, The "over-hedging" ...

CALGARY, Alberta, Sept. 03, 2024 (GLOBE NEWSWIRE) -- Further to the news release of TransAlta Corporation ("TransAlta" or the "Company") (TSX: TA; NYSE: TAC) dated August 22, 2024, the Company announced today the applicable dividend rates for its cumulative redeemable rate reset first preferred shares Series G ("Series G Shares") (TSX: TA.PR.J) and cumulative redeemable floating rate first preferred shares Series H of the Company ("Series H Shares"). With respect to any Series G Shares that remain outstandi ...

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