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    TransAlta Announces Outlook and Continuing Strong Cash Flow for 2022

    January 19, 2022 - ENP Newswire


      CALGARY - TransAlta Corporation ('TransAlta' or the 'Company') (TSX: TA) (NYSE: TAC) announced today its financial outlook for 2022.


      Comparable EBITDA range of $1.065 billion to $1.185 billion

      Free Cash Flow ('FCF') range of $455 million to $555 million or FCF per share range of $1.68 to $2.05

      Sustaining capital range of $150 million to $170 million

      Continued delivery of TransAlta's Clean Electricity Growth Plan by reaching final investment decision on 400 to 500 MW of additional clean energy projects across Alberta, the United States and Australia to deliver $50 million to $70 million of incremental EBITDA

      'We are pleased to announce that our annual outlook highlights continuing strong cash flow expectations for 2022. Our fleet remains well positioned to capture the ongoing strength we see in the Alberta merchant market. We also remain focused on growth that creates value for our shareholders as we work to deliver on our 2 GW renewables growth target by 2025. In 2021, our team secured 600 MW of new renewables projects demonstrating our competitiveness and capability to deliver our growth strategy across all our geographies,' said John Kousinioris, President and Chief Executive Officer of TransAlta.

      '2022 marks our transition off coal in Canada. With the completion of all our coal-to-gas conversions, and with our renewables growth plan well underway, we have adopted a more ambitious target of 75 per cent emissions reduction over 2015 levels by 2026. We are also proud to be the first publicly-traded electricity company in Canada to commit to setting a science-based emissions reduction target. We are excited for another great year of execution and ESG performance for TransAlta,' added Mr. Kousinioris.

      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 hydroelectric power. For over 100 years, TransAlta has been a responsible operator and a proud community-member where its employees work and live. TransAlta aligns its corporate goals with the UN Sustainable Development Goals.

      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 'plan', 'expected', 'estimated', 'will', 'continue', 'goal', 'target' and similar expressions suggesting future events or future performance. In particular, this news release contains, without limitation, statements pertaining to: the Company's financial outlooks for 2022, including Comparable EBITDA, free cash flow, energy marketing gross margin, and sustaining capital; the sensitivity of Comparable EBITDA to Alberta spot prices; TransAlta's Clean Electricity Growth Plan, and associated incremental EBITDA; extent of emission reductions and ability to achieve other ESG targets in 2022 and beyond; achieving final investment decisions on 400 to 500 MW of additional development projects across Canada, the United States and Australia; achieving commercial operation of the Garden Plain wind project and Northern Goldfields solar and storage project in 2022; achieving commercial operation for the White Rock wind facilities in 2023; expand the development pipeline; recontracting each of Sarnia, Pingston and Upper Mamquam and progressing the rehabilitation of Kent Hills to safely return the wind facility back to full operation by 2023, and the cost thereof. The forward-looking statements contained in this news release are based on current expectations, estimates, projections and assumptions, having regard to the Company's experience and its perception of historical trends, and includes, but is not limited to, expectations, estimates, projections and assumptions relating to: the Company's 2022 Alberta hedge price for volume and production of gas and power, respectively; the Alberta and Mid-C spot price; the AECO gas price; that pricing in Alberta will be driven by fewer planned outages and the expected additions of new wind and solar supply; the regulatory environment and the extent of regulations pertaining to COVID-19 not becoming significantly more onerous and current conditions and expected future developments. 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; construction risks, including as it pertains to the supply of equipment and labour availability; 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; the effects of weather, catastrophes and public health crises; disruptions in the source of thermal fuels, water, solar or wind required to operate our facilities, including the necessary natural gas supply to support the conversion of the coal units; energy trading risks; failure to obtain necessary regulatory approvals in a timely fashion, or at all; 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; 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 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 December 31, 2020. 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.

      Non-IFRS Measures

      This news release contains references to financial measures that are calculated and presented using methodologies other than in accordance with International Financial Reporting Standards ('IFRS'), as issued by the International Accounting Standards Board, including EBITDA, and such measures may not be comparable to similar measures presented by other entities. These non-IFRS measures should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS. Certain additional disclosures for these non-IFRS financial measures have been incorporated by reference and can be found under the 'Additional IFRS Measures and Non-IFRS Measures' and under the 'Reconciliation of Non-IFRS Measures' sections of TransAlta's Management's Discussion and Analysis for the nine months ended September 30, 2021, available on SEDAR at, on the U.S. Securities and Exchange Commission website at, and on TransAlta's website under the Investor Centre section. TransAlta utilizes these measures in managing the business, including for performance measurement, capital allocation and valuation purposes and believes that providing these performance measures on a supplemental basis to its IFRS results is helpful to investors in assessing the overall performance of TransAlta's businesses. TransAlta cautions readers that these non-IFRS financial measures or other financial metrics may differ from the calculations disclosed by other businesses and, as a result, may not be comparable to similar measures presented by other issuers and entities.


      Tel: 1-800-387-3598



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