Slide 1: TransAlta Corporation Second Quarter 2019 Results
TransAlta Corporation Second Quarter 2019 Results Friday, August 9, 2019 1
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation includes forward-looking statements or information (collectively referred to herein as “forward-looking statements”) within the meaning of applicable securities legislation. All forward-looking statements are based on our beliefs as well as assumptions ba
Slide 3: Agenda
Agenda CEO Update Growth Projects Second Quarter 2019 Highlights Questions and Answers 3
Slide 4: Key Highlights – Six Months Ended June 30, 2019
Key Highlights – Six Months Ended June 30, 2019 Comparable EBITDA FFO FCF ($ millions) ($ millions) ($ millions) $484 $436 $349 $324 $177 $144 (1) (1) (1) 2018 2019 2018 2019 2018 2019 • Accelerating coal to gas conversions and evaluating hybrid option • First gas on Pioneer Pipeline four months ahe
Slide 5: Current Development Projects For TA and RNW
Current Development Projects For TA and RNW Big Level - 90 MW Antrim - 29 MW Pennsylvania project New Hampshire project ⚫ 15-year PPA with Microsoft ⚫ 20-year PPAs with Partners HealthCare ⚫ Capital cost of ~US$178 million (75%) and New Hampshire Electric ⚫ Commercial operation expected in Q4 Cooper
Slide 6: Growth Projects EBITDA
Growth Projects EBITDA EBITDA GENERATED BY NEW ASSETS ($ MILLIONS) TransAlta EBITDA excluding PPA Capacity Payment (1) (1) (2) Energy (3) Obligation Capacity Payment (1) Windrise and Skookumchuck are potential drop-down candidates to TransAlta Renewables (2) Pioneer Pipeline EBITDA subject to throug
Slide 7: Alberta Electricity Prices
Alberta Electricity Prices ALBERTA POOL PRICE AND FORWARD CURVE ($/MWH) $80 $70 $60 $60 $56 $57 $58 $52 $50 $50 $40 $30 $20 $10 $- Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 2020 Current forward curve as at August 7, 2019 (Bal 2019 - $56; 2020 - $58) Prior forward curve
Slide 8: EBITDA Generated by Canadian Coal
EBITDA Generated by Canadian Coal SECOND QUARTER 2019 CANADIAN COAL ($/MWH) ⚫ Production was lower than 2018 Q2 due to planned maintenance TransAlta EBITDA excluding PPA ⚫ Comparable EBITDA Capacity Payment was higher than 2018 Q2 due to: Ancillary ⚫ Higher revenue per MWh Obligation ⚫ Lower cost of
Slide 9: Year to Date Trend
Year to Date Trend 6 MONTHS 2019 EBITDA (1)(2) ($MILLIONS) ⚫ EBITDA and segment cash flows in line with expectations ⚫ Strong performance from Energy Marketing and Canadian Coal 6 MONTHS 2019 SEGMENT CASH FLOWS(2) ($MILLIONS) (1) During the first quarter of 2019, we revised our approach to reporting
Slide 10: EBITDA Generated by TransAlta Hydro
EBITDA Generated by TransAlta Hydro 6 MONTHS 2019 HYDRO ($ MILLIONS) Hydro assets currently generating ~$142 million of EBITDA prior to payment of obligations to the Balancing Pool Other Revenue includes revenues from other hydro assets, transmission assets, and other services provided by the hydro
Slide 11: Second Quarter 2019 Highlights
Second Quarter 2019 Highlights 3 Months Ended 6 Months Ended June 30 June 30 (in $CAD millions) 2019 2018 2019 2018 Revenues $497 $446 $1,145 $1,034 Comparable EBITDA(1)(2) $215 $248 $436 $484 FFO (2) $155 $188 $324 $349 FCF (2) $49 $96 $144 $177 Adjusted Availability(3) 83.8% 85.8% 86.7% 90.1% • Ov
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