Slide 1: First Quarter 2024 Results
transaita First Quarter 2024 Results May 3, 2024 “oO
Slide 2: Disclaimer and forward-looking statements
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 Securitie
Slide 3: John Kousinioris, President and Chief Executive Officer
John Kousinioris President and Chief Executive Officer
Slide 4: Q1 2024 achievements and strategic initiatives
Q1 2024Atachievements Transaction A Glance and strategic initiatives Results and Growth and customer Strategic initiatives financial position solutions Adjusted EBITDA1 of $328 million Mount Keith 132kV expansion Advancing acquisition of 54% from renewables completed Heartland Generation FCF1 of $20
Slide 5: Alberta regulatory change timeline
Alberta regulatory change timeline Restructured Energy Market Renewables (“REM”) industry REM design REM pause consultation and approval implementation implemented and design process Aug 2023 Feb 2024 Jul 1, 2024 2025 2026 Nov 30, 2027 Renewables Interim Interim pause ended Regulations in regulation
Slide 6: Alberta interim regulations
Alberta interim regulations July 1, 2024 to November 30, 2027 1 Icon Market power mitigation regulation 2 Icon Here Supply cushion regulation Do not expect the interim Requires the AESO to direct long lead time regulations to Creates offer limit for only gas-fired resources with offer control ≥ 5% a
Slide 7: Restructured Energy Market
Restructured Energy Market Icon State of play Icon TransAlta’s positioning Market Here Here requires low- cost, flexible Potential features: and fast- responding Changing energy landscape requires a long- Day-ahead market term focus generation for grid reliability Administrative scarcity pricing mec
Slide 8: Alberta organic growth pause
Alberta organic growth pause Project Technology MW Status Riplinger Wind 300 Cancelled Greenfield development in Alberta on Tempest Wind 100 On hold hold pending WaterCharger Storage 180 On hold clarity of regulatory Pinnacle 1 & 2 Gas 44 On hold changes Potential investment date1 pushed to 2026+ 8
Slide 9: Heartland remains a compelling acquisition
Heartland remains a compelling acquisition Expands Aligned with Alberta flexible generation market strategy Attractive deal metrics Ownership in additional Enhances competitive positioning in 5.5x TEV1/EBITDA2 multiple at ~1.8 GW of assets response to changing dynamics closing ~$115 million annual a
Slide 10: Todd Stack, Executive Vice President, Finance and CFO
Todd Stack Executive Vice President, Finance and Chief Financial Officer
Slide 11: Alberta electricity portfolio
Alberta electricity portfolio Q1 2024 realized prices Quarterly realized merchant prices $300 $160 $140 $250 $120 $200 $100 Average spot $80 price in Q1 $150 2024 $60 $100 $40 $50 $20 $0 $0 Hydro Gas Wind Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Spot price 153% Hydro G
Slide 12: Strong hedge position through 2026
Strong hedge position through 2026 1,400 Expected 2024 Average MW per hour 1,200 1,000 thermal 800 production largely 600 400 200 hedged 0 Q2 2024 Q3 2024 Q4 2024 2025 2026 Capacity Contract C&I and financial hedges Q2 2024 Q3 2024 Q4 2024 Full year 2025 Full year 2026 Hedged Price ($/MWh) 85 85 85
Slide 13: TransAlta segmented results
TransAlta segmented results Three months ended March 31, 2024 ($millions) Adjusted EBITDA1 Q1 2024 Q1 2023 Hydro 87 106 Strong Wind and Solar 89 88 performance Gas 134 240 from Hydro and Gas fleet Energy Transition 26 54 Energy Marketing 20 39 Corporate (28) (24) Total 328 503 13 1 Adjusted EBITDA i
Slide 14: Alberta hydro continues to perform to expectations
Alberta hydro continues to perform to expectations Hydro adjusted EBITDA 1 ($millions) Hydro volumes (GWh) 120 900 800 100 700 Volume (GWh) 600 80 $ millions 500 60 400 300 40 200 100 20 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 0 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 2023 2023 2024 Q1 20
Slide 15: 2024 guidance affirmed
2024 guidance affirmed ($ millions) 2024 Outlook Adjusted EBITDA1 1,150 to 1,300 FCF1 450 to 600 Early look 2025 FCF ($/share) 1.47 to 1.96 expectations Sustaining capital 130 to 150 broadly in line with 2024 Market 2024 Outlook Alberta spot 75 to 95 ($/MWh) Mid-C spot 75 to 85 (US$/MWh) AECO gas pr
Slide 16: 2024 YTD share repurchases
2024 YTD share repurchases Highlights Returned $53 million of capital through the $53 million buyback of ~6 million common shares; 35% of up to $150 million 2024 program Balanced, prudent and disciplined Long-term shareholder value creation $150 approach to drives our investment and capital allocati
Slide 17: 2024 priorities
2024 priorities Safety, reliability Growth and commercial Strategic initiatives and availability Complete Mount Keith, Horizon Hill and Progress CO2 emissions reduction to Improve leading and lagging safety White Rock 75% from 2015 levels by 2026 performance, including TRIF of 0.0 Target 400 MW of n
Slide 18: Diversified and resilient fleet, clean electricity leader
Diversified and resilient fleet Clean electricity leader with ESG focus 5 GW growth pipeline Strong financial position Antrim, New Hampshire 18
Slide 19: Questions and answers
Questions and answers Visit us at: www.transalta.com Investor_relations@transalta.com 19
Slide 20: Development pipeline: United States
Development pipeline Potential development (excluding prospects): 2,348 – 2,598 MW United States Project MW Technology State Stage FID Horizon Hill 200 Wind OK - Monument Road 152 Wind NE 2025 Swan Creek 126 Wind NE 2025 Dos Rios 242 Wind OK 2025 Old Town 185 Wind IL 2026 Cotton Belle 1 104 Solar TX
Slide 21: Development pipeline: Canada
Development pipeline Potential development (excluding prospects): 1,747 – 2,597 MW Canada Project MW Technology Location Stage FID On Tempest 100 Wind AB hold On WaterCharger 180 Battery AB hold On Pinnacle 1 and 2 44 Gas AB hold New Brunswick Power 10 Battery NB 2025 Battery Sunhills Solar 170 Sola
Slide 22: Development pipeline: Australia
Development pipeline Potential Development (excluding prospects): 494 MW Australia Project MW Technology Location Stage FID Mt. Keith West N/A Transmission Mt Keith 2025 Network Upgrade SCE Capacity 94 Gas Kalgoorlie 2024 Expansion Port Boodarie Solar 50 Solar 2024 Hedland Southern Cross 120 Solar/W