TransAlta (TAC) 10 Aug 212021 Q2 Earnings call transcript

Good morning. My name is Sylvie and I will be your conference operator today. At this time, I would like to welcome everyone to TransAlta Corporation’s Second Quarter 2021 Results Conference Call. [Operator Instructions] Thank you. I now would like to turn the conference over to Chiara Valentini, Managing Director of Strategic Finance and Investor Relations. ahead. go Please

Finance Sylvie. Affairs. of second you John supporting the everyone welcome and the Legal, Stack, MD&A and will quarter's reference. that, on are out and President Kerry listening me Officer; from to we of remarks, the Great, Wilks, detailed qualification terminology call John. the operations the an All will call will website. phone questions. slides I the On that All here in for statement today's call OReilly comparable to this cash during conference Good are the call. otherwise for unless on is and view used, for also Todd our today's transcript balance Slide the forward-looking call. our TransAlta’s are information turn call, incorporated EVP, With to call including results, MD&A flow those funds let the EVP Todd later purposes year. The EBITDA, stated. invite our A Officer; quarter overview John of expectations with our Chief and in available over is currency the to these After your provide X, are non-IFRS replay Chief along call With be the to for the in thereafter. Canadian Financial the and and during reconciled today External of thank will Commercial call subject and referenced on free set further open amounts posted Executive morning lines and provided Today’s me conference Kousinioris, webcast website today and shortly posted be being

everyone. thank Chiara. you quarter you, morning, Good our joining second Thank for And call.

XX% quarter-over-quarter. in our Alberta, cash traditional want am increase has guidance reconciliation the Stoney flow I'm pleased free territories Kainai, year-to-date, our of is and located of part towards our the strong provided to share midpoints the where free the year, we which I we Region the acknowledging And in Treaty commitment quarter. increase Siksika, increase that EBITDA, our with call. as First the XX% Niitsitapi on home provide of and Piikani, of X for includes revised details the XXXX. XX% Todd by the today XX% and free a guidance share to extremely head people outstanding X. delivered TransAlta’s compared have year-to-date for by Nations advancing Based for of company we're year-over-year. in will office Nation, the the with which per to we flow pleased per guidance had we've more the the XX% I cash We've well which of resulted Southern and cash generated later the comparable Tsuut’ina comparable begin the As balance the the another in the XXXX a our EBITDA our performance the a expectations EBITDA, In Metis respectively, in in in at our resulted flow made increase along XX% priorities. region has in progress a increase in performance, on in QX, original Nakoda as

to we fully remains performance and able and liquidity our to growth pipeline, year-over-year. gas achieve well fund conversion and we're strong, continue access to X safety improve as our to as Our Keephills remaining

so Alberta. during higher us to The operating ensure has they're fleet when experienced performance availability fleet, increased developed provide strategies in prices to capture has quarter excellence Our team was needed. that the most this demand, by driven it reliable high across Alberta and key our enabled able is optimization the operational power periods which of

the have with and quarter segments strong second our of row, us and across trading U.S. underlying results Hydro Alberta marketing gas quarter a the our Alberta Thermal our For in our natural desks. value power had excellent Energy diversified also demonstrated an fleet.

tons Garden early and project, the During goals. XXX,XXX the the priorities. This project gas customer. XX battery May, storage over our customers had achieve pipeline. their announced facility XXX-megawatt how of greenhouse to years will QX, West our achieve XX-megawatt BHP’s first of solar our the progress Plain ESG we we Sarnia the Pembina provide an In XXXX. that late supporting In Mount fall a Western Keith quarter completed focused of our we Australia at July, also project customers of Windrise advanced an of contracted is with is on concrete we emissions expect a of long-standing Leinster project in we reduce of The XX, COD extension to and solution. to we another We hybrid of a complete announced number anchor And energy to contract XXX-megawatt Nickel reached example our as agreement drive and wind during key to their there ESG TransAlta was and which by XX% operation. we're is In at June COX achieve with construction example enabling goals. BHP

customers We whom $XXX These growth Pioneer for procurement renewal released our the our ATCO, secure the the other provided continue which funds proceeds in IESO of draft beyond. June, details expect the announced XXXX in to closed the to Ontario In with discussions seeking end year. contracts million re-contracting Pipeline July, IESO industrial At the TransAlta. of capacity the process sale and to redeployed be previously contract in with to program. for of to to We're we later participating of advance for with the we the will execute consultation facility. a renewables

have by coal at with our and X coal that completed successfully registered X the Keephills conversion for July. more quarter we Keephills and to now was Our fired this gas X began is The emissions coal half gas in And Sheerness for TransAlta milestone in and of coal. of Keephills preparations than carbon unit. our advanced off another our assets significant conversion the gas been if transition during conversion, are off We IESO. to generation start which September. fully as X steam will X reduces

completion of be year gas the of With Highvale natural effective closure the will end. Alberta carbon facilities XX, and all on at this conversion our lower the December generating Mine

our demand In an QX, market, project X Canada's we reducing Sundance additional well million construction competitive XXX are now continue And contract. results, completed and reviewing evaluation of X% regulatory as goal as over of the XXXX. repowering well in XX XXXX changing XXX the between X the costs. procurement evolving levels reductions, process as of COX we tendering the delivered the of we've environment. engineering, of the Today, those Sundance higher dynamics Alberta and We light supply bid million for from of approximately the costs, and annual tonnes of greenhouse tonnes overall repowering representing gas by as

the an to XXX-megawatt wind actively contracting west our and On are and stage move XXX White to opportunities advanced and Rock east megawatts discussing seeking we and projects Horizon into Hill progressed them renewables construction. front,

project strategy was renewables our list, of under developed of October TransAlta and which a to storage XX corporate pleased new our megawatts, and power Total growth the added is Australia. named a first construction our the growth renewable megawatts achievement for the the is energy for be we between focus team. The at And in purchase customer-centric to company. million. The citizens with extended Northern in battery BHP XXX system. XX capital agreement renewables be continuing and estimated BHP. XX-megawatt two to pipeline, project farms Goldfields comprises our project of work. example with back announce to fleet another and our This a proud concrete is our solar to is also renewables We're $XX best $XX initiates XXXX We able solar project finally, energy totaling storage solution

miners and lower is battery who be that The like of on is the we supplier remote XXXX first is the in and the second the hybrid customers improves solutions of choice networks integrated network project launched decarbonization. grid Pipeline need to solar extremely cornerstone incrementally goals, be excited mining more expected reliable integrates are to sustainable goal reliable the It our Once in Cross completed $X is a Garden our will half project Working customers low-cost, May Plain our million operations, project into The for the to Australia. sustainability as ensure and world. Our largest for focused to sustainable Southern power for project mining new project in be are annually. hybrid carbon as customer. with the Western growth one position and will Pembina between strategy. completed, be have our of energy eight develop further On carbon off will support intensity lowest BHP’s world's alongside desire during supporting one generate their operations. a effective customers’ and nickel X, of the to and of of Pembina

an of we've is the As supported associated capacity of megawatts have with capacity Pembina XXX project environmental and XX-year megawatts the will XXX attributes. by for the announced, and agreement

full between in We $XX $XX a on expect deliver million to the and million EBITDA project comparable basis. year

later for the this are scheduled project the commence executed agreement We year. have to construction turbine and supply

our the to most manner. project portfolio a A have is delivering expect growth in We're wind on in in the customers’ facility facilities. east latter We of our development and X.X the to are focused have the expanding Hill of XXXX gigawatts become of the part have clean Horizon to objective earlier remain our XXXX and power We in renewables. Rock out from which stage and White potential customized processes regarding west, megawatts of meet opportunities this now our a various of during year. with growth which focus development with operation advancing engaged wind customer-centered commercial wind U.S. objectives We on ESG Oklahoma, XXX currently output exclusive on located the reach advanced on the cost-effective timeframe. key XXXX. are We renewables commercial project activities the business this geographies element to and opportunities goal contract to in in pipeline, stage progressing over discussions of wind solutions

the Our Canada, and for take keeping our development Australia, results us now Todd to is it busy turn quarter. States. I'll the over financial team to through United in

$XXX in reflected fleet results had in $XXX business. Alberta Thanks, outstanding EBITDA Strong diversified generated results our our to generated John. In On and quarter, results we strong has cash a share million an free comparable of million robust EBITDA or cash deliver marketing electricity cash basis, our $XXX energy EBITDA are free the We flow. our $X.XX of flow. $XXX flow of and by free million for per driven continued quarter, the and year-to-date numbers QX. portfolio, a million company

performance are far We so year. our this with extremely pleased

in I at by million both the from conversions well this expiry year, from of $XX from cash plan teams. Alberta continued note in Thermal asset million related EBITDA our of and also the strong in be segments to flow quarter, our XXXX PPAs, With although gas. outperform $XX our $XX and Alberta Alberta year. sustaining our hydro segment the the to XXXX the capital to realizing Hydro from to Thermal as year-over-year realized great management to work benefited to from expenditures Alberta an significantly impacted this from million fleet $XX million over continues market, as increase pricing EBITDA that significantly Thermal increased optimization Alberta the this threefold

TransAlta major both up Cash the unplanned same are Overall, to outages, plan, which necessitated power offset at merchant decreased the obligations. purchases the addition compared to excellent Solar And compared quarters. marketing the pricing decrease outstanding XXXX. Fort outages and Saskatchewan with want result from pricing and of final to to of million of the setting as unexpected across Renewables. line another Alberta the of our of in to and Our EBITDA below flow quarter delivered by wind our very plant. and and facility. high by than TransAlta of XXXX, Skookumchuck end of the was wind resources in This our at realized same the end Ada as team mainly at well going all the generating to Centralia’s for its were results gas expectations pleased period impact we of Alberta Alberta contractual strong to regions. two fleet Production to a due to period XXXX, The I'm lower EBITDA by we the businesses, $XX our addition partially segment was at during portfolio diversified results QX as the XXXX, $XX potential in spend run on maintenance, our the the partially achieving thank of as in Centralia of resource American XXXX million decreased across the energy facility their retirement one XXXX. segment contributions due lower with realization Wind offset from plant the of core the our slides delivered timing North employees back-to-back facility. of in higher our a in discuss these retirement next planned fleet. unit I to Sarnia of was were the all Results meet few in minutes lower results. Electricity delivered by for due

to Turning Slide XX.

thermal dispatched sales. to from as and are peaking benefit portfolio wind, a base Our and Alberta load hydro facilities energy

portfolio regions impacted During were production $XXX significantly in X,XXX hours prices our warmer and the Alberta in including our fleet. by million revenue, quarter, Power other the QX. realized Alberta gigawatt experienced weather Western over generated Alberta wind in and in of

megawatt pool prices typical for significantly contributed ensured was periods $XX of in hours during the our during extreme generated strong the with supply fleet of periods demand hour. QX And teams weather that quarter, at the in This hour. June temperature power price pricing June average settling capacity per realized extreme increased meet approximately the our In heat to Alberta of Thermal with was average Alberta, reduction $XXX. X,XXX averaged production In patterns $XXX load. and is was gigawatt As The an per soaring wind dispatchable to price megawatt provincial available peak anticipated. reduced.

X,XXX revenues at impact high production XXXX. hedge at our $XX megawatt. was XX% capacity, hours thermal approximately demand expected slightly program. settled of the hedging sales our our an and being and than of price the The price had price approximately in due resulted average gigawatt realized pool the Alberta higher quarter, of we baseload our Our In disruption significantly than per average lower revenues to hedged of Thermal periods peaking of market combination of from or

gigawatt and hours we to with hedges the approximately For in balance similar year, the more the of each expect of QX total weighted of production QX X,XXX heavily near-term.

in gigawatt in X,XXX and We gigawatt have QX QX. approximately hedged XXX hours hours hedged

continue to for to see strong prices experienced in of And Alberta We higher during market the pricing open potential balance to order significant year. retain the times forward continues peak demand. the realize Thermal capacity segment of

the see firing is of expect $X As cost burden carbon we per compliance have at hour. was less roughly $XX our carbon completed, unit XX% megawatt a fully our coal reductions to would of gas Alberta from carbon Alberta per thermal coal been Had Currently, compliance Thermal our $XX program cost. transition converted at we of compliance unconverted QX, to our significantly in conversion of the total the In QX, fleet significant hour. in we at megawatt units. incurred fully In approximately same carries about the complete our a generation gas, production incurred carbon the production XX% Thermal on contrast, of By million. burden about costs.

premiums again revenues was with in hour, demonstrated over megawatt quarter. benefited well as realized the premium ability a price. we're in hydro. consistent premium peak of represented spot expectations strong average $XXX our But ancillary prices from per the at was and exceeded to as in volumes The hydro broadly the capture realized average This pricing of XX% XXXX to high Turning expectations quarter. pricing price with line QX, with and periods gross for for and realized hydro, the in in Energy which QX XXXX.

For now a to have outages, from approximately provide largely experienced expect The we settle year-to-date the I higher at subsidiary, prices been our market of balance resource. Renewables. higher a stemming $XX and like Alberta low extreme unplanned outages, to year, has would TransAlta disruptions, an the tieline wind the of weather, demand on spot price average generator, update result level.

operating effective As assets QX assets, Renewables. and gas as resource. EBITDA by consolidated of well outages in our in at the Sarnia, as wind X expectations you're our of and of Ada are for On factors, production January impacted are full TransAlta results. Skookumchuck we the and The wind year unplanned fully steam variability benefit a which the solar in and to of contracted completed these as facilities economic wind wind Renewables the the held TransAlta within transfer facilities customers in was aware, majority year-to-date these April TransAlta supply to the TransAlta's Comparable were the interest including to economic X, due the from included transactions quarter lower are results results. our and of impacted number and of cogeneration

steam nature for infrequent, a expect atypical resolve provision which liquidated resulted and year. these to in interruptions disruptions damages, are this of Although supply this we later

wind XX% addition, regions. year half of average long-term in across wind was production of the at the operating with resource In experience all lower first

company turbine facility. be to million cash be million and the for and EBITDA available between and the acceleration Hedland $XXX the Hedland took due XXXX In also the to light for guidance distribution $XXX full TransAlta impact at for $XXX for spare is million acquisition capital. planned Renewables critical these our range EBITDA for of acquisition reliability the to of a lower year. fiscal accelerate $XXX spare customers, year We previously in sustaining of estimated to the to is issued South now will which ensure of million Comparable to revising for XXXX a South events, decision or the the the

an Solar growth, Renewables acquire expansion The announced company to TransAlta the in we expect has Project interest any its Goldfields Storage to the economic of the the right BHP forward Australian approved to referenced TransAlta TransAlta Northern terms earlier and generation as Renewables first invest to Solar project adding by and related project to assets. assets the current in looked the investment recently Renewables Independent Board was Members renewable In fleet.

strong project that and long-term earlier excellent referenced that anticipate future, the near an Garden Plain given by for the also also candidate would a a anchored party. it's dropdown We John TransAlta Renewables in counter make PPA

seek TransAlta's Overall, to guidance continue had with pipeline. and for expectations Corp outstanding M&A when our permits add of development also free flow considered and performance, cash our TransAlta has We an projects the through additional us fleet renewables to balance to for year-to-date our year, to XXXX. EBITDA increase the which

This flow flow to cash range We over at a guidance. XX% estimating of the guidance our and to EBITDA range equates increase per $XXX representing which free million. $X.X free the to be a share guidance. EBITDA are previous $XXX to This million at the $X.XX comparable previous allows increase a billion versus our of XX% expectation now to between midpoint, billion, a $X.X cash midpoint increase our us represents

at midpoint cash a Our of approximately flow revised free about of the flow our cash of trading free yield consolidated our represents guidance yield price $XX XX%. using current

several cash for EBITDA other to flow, our outlook. addition have and In of estimates areas our consolidated free revised we

to are our at to increasing $XXX First, of Marketing gross a outlook $XXX million the range Energy for we margin million. segment

to per was balance my participate million third, by X, about to $XXX capital the of for Hydro we're outlook major to Hydro assets the the in driven sustaining date balance are the combined The largely June and XXXX exceeded of Based our in expectations in with price to and Keephills enhanced $XXX maintenance for higher acceleration capital continuing in to strong and $XX outlook megawatt is hour. The estimate reliable to cash hour. million. on to of the our With now adjusting remarks expectations going South our our our $XXX COVID-XX the based Alberta million. costs on $XXX free a a slightly segment, X we hydro being million closer the purchase financial Alberta Keephills capacity $XX on XX% year maintenance safety $XXX fleet is remaining. megawatt six million In ended EBITDA on a trend renewable price for our range. opportunity of and provide reflects to unique EBITDA we spare our for by initial per facility sustaining of XX, for to flow strong engine Slide highlight guidance Alberta annual of annual Hedland respect the increased And sustaining the TransAlta This mark at at driven generate of in cash with protocols. results capital market. year, increased and QX, the $XXX XXXX XX have Second, flow hydro our I'm to six the and shareholders the to hydro expecting performance performance free segment the company. strength months increase close of months

approximately liquidity billion extremely and to the We liquidity, sheet us in cash. million $XXX with incredibly balance quarter future fund growth. including well positions Our remained This strong. closed of $X

to Our impact targeted to debt $XXX TransAlta, about net and us times, cash is off robust net the been When a billion, lowest of through comparable adjusted John. financial years. below deconsolidated as the an in at at million. turn that, of This senior debt X.X held the adjusted call debt we level to our has EBITDA corporate back X.X level results position over With over XXXX. level is five in continue I'll giving our senior which – reduced we

Todd. Thanks

makes the highly construction value progressing investment to the our continue I health attractive diversity and Sarnia and a and to and great of EBITDA initiatives on on close delivering year United priorities, basis I equity Keephills recontracting States, coal completing conversion, TransAlta our the and opportunity. the facility, Windrise, focus cash to I'd a our what XXXX flow of like growth our completing guidance. X of we in a by balance including advancing key goals, gas As review free XXXX inclusion the think our securing completing project the organizational highlighting of revised

cash flows high portfolio supported by as by resilient First, year-to-date evidenced highly results. our a and our diversified are quality and

business Our thermal efficient driven portfolio, hydro reliable, unique, by and contracted portfolio. perpetual our is portfolio our our wind and

are asset optimization All by capabilities. of complemented which and energy world-class our marketing

focus emission Second, tangible gas reductions. greenhouse a we're a clean on electricity leader with

gas has journey Canada's in resulted de-carbonization X% greenhouse reductions represent XXXX to that Our close of target.

In commitment barriers addition, our through diversity on removing as our and as in good a as focus governance to well leader as ESG. well equity, ahead systemic places inclusion,

Third, of an Fourth, extensive which team we includes company have development strong and talented on pipeline its foundation. and has diversified set of a focused growth a realizing projects our stage opportunities, advanced value. financial a

Our balance pursue liquidity great in and has is ample to sheet growth. shape

for and Finally, We're future, have our company. belongs they results people TransAlta its our our an greatest authentic that our meeting and deliver exciting cost, a culture and selves contractors we the employees clean and committed well to a where and time in of needs on all positioned great development done our and thank the want their for reliable company electricity this low for results bring as had to asset the our focused generation customers. are can are deliver serving to and in leader best quarter. I past to work everyone

and Virtual to last turn Investor that, hosting I'll call explore for As we'll beyond. strategic our I call, over will on mentioned our be Chiara. XXXX XX. time, At we With in plans quarterly back that XXXX Day with September the the update you

the would call up for open questions John. you Sylvie, please from you, Thank analysts?

first Capital CIBC question Certainly. will Instructions] be [Operator ahead. Mark your Jarvi from go Markets. Please And at

everyone. Thanks

part there, wanted there again your costs questions implying – if for when to where options? go the be, you've of to are that that terms you the maybe effectively, around X? Are at – you the like employer are demand, up X what commentary of to can that can see evaluating, It nothing XXX? for like go don't are, implying so looking the just asset retired the second And this want Sun XXX or supply – cost the Just then around the to repowering from out and simply would sort repowering like seems you're bids. just – the or about updated conversions in we what Sun costs

Mark. morning, for the Good Thanks question.

X, Sundance in of there had is questions you on number a that so that. So,

broadly In terms terms in of another went be continue cost aligned, there. that did make that were increase tender seeing the in we the were of sure what we out unit, costs in could signaling, process and the project. were getting possible best We we to we to that we the for

of going of sure looking evaluate the regulatory the the new plants. cycle bring evolution to coming on on supply carbon with sense to when decade. for finally approach at government's be We're made to And no implications We've about which decisions terms currently make the continue continuing would combined We unit as project. proceeding course might pricing the kind the gas the of kind the forward. the federal of of environment also for in exactly of it planned. And over thinking in to assess everything province

project. the mix. doing terms in And that that's live we're that So assessment the for of that in all remains

to the I it announcement July we on of the mothball, terms was XX, made basically end In think mothball. the

returning November X. the to on generation. So, on required as the unit hasn't a at you year. would mine the gas run not down of to will Remember the unit. it shutting been know, we're coal-fired be have converted And It been end

plans making there conversion Sundance either. any to bring for it this back us made approach where No we're time. coal making gas nor a at unit not X an of on prior to the really on – kind decision in do having back certainly this a any it's decision and parking coal decision point So administrative to to it almost bring to is

X did clear do a Keephills so simple Sun and like just could But the you if still for you to Plan and go you B to a be choose? conversion Unit

That possible Yes. do to there. would be

to And with you a completion would X formal have intended, of XXXX make target on that's timeline to not to of that if go a you date ahead? the decision what first when half to stick Sun

this I would memory, think Mark. be later from just sometime it going year,

on provide no issues And can damages interruption thorny and you we is all a whether of QX as in there's context Okay. not gone a the and saw what guys hit still impact? forward with to to bit more any liquidated or the costs steam numbers there's bear then, or the terms essentially

Yes, I unusual so for we very three had us Mark. very typical. –

Todd liquidated which there. needs. as unusual to so weeks. not Sarnia to work event able three unusual comments, or that outages sustaining really over to and statements, as about in kind plant of the very we think sort the I said shown costs capital we're channels proud effectively way other the had could The were expecting were We're damages significant are is The as It interruptions in it three we course outages. customers perspective we responsive and that of contained the of bring was from financial through their was with sort in them we the our facing with effectively as be in our I up terms was and capital think is running. in – the associated any Todd steam of his of of

it and for Okay. hear. last is question That's Todd. good to And

terms premium development in could bringing what in what sort the hybrid project online? shown would I that of is in Just we that in Renewables terms numbers, might from through TransAlta outside of terms of EBITDA projections, those Australia, renewals? TransAlta in or either you terms TransAlta Just have guys in the look terms CapEx of assume How of think associated like like in costs of on terms the the that economics I solar adjust and that at of lack of EBITDA core. like look level

in say Mark. a would effectively modest, it any development, those economics Yes, Renewables. is rollup TransAlta if to I

That's Thanks. great. all I Okay, had.

Thanks.

you. Thank

from will Dariusz. of question ahead, Lozny Dariusz Bank Please ahead. be go Next Please at America. go

Hi, good morning. question. Thanks for taking my

Just separate wanted that reference little just touch little I please. know to the there speak Todd, and of to unplanned a can on kind outage three bit queue detail, events. the that in more a you were

how curious a went? as far bit So more could as little just if give clarity those you

events of you technical proximate and three can I occurred, two there pretty, We issues had, sure that a running They a sort weren't up then facility this Todd, the related occurred each very We over I'm time. I them is were point had recurred at They in sort which other Dariusz. we – to to occurred not you. think that and of standalone that subsequently. more pretty one much lot third is of had and back that give events.

that outage Maybe interruptions normally redundancies in another the supply they were that not Sarnia's event know process infrequent in all were but process, up they covered systems and triggered the plant unfortunately restore and that while another extremely a with this restore customers. supply, especially are minus particular steam the the redundant lot not redundancy back outage. running case, of in start to would occurred maintain facility and In been were to more all have of fully Steam designed a did they these in and Yes. the the which duplication through facilities you I'll of X in rare reliability color. as steam N co-gen first bit order and while

And all and catch-up weren't is unfortunate were But get available and John plant they it events couple so, of third that mentioned bit reliability into just is the and game all X its trying these the fully second to of a rare restored of unrelated were of they of the which it's events. as a N to event just a why actually extremely triggered. redundancies for minus

could, lower-than-average the added in assets year and referenced you the portfolio? of what's sort Can Thank at the one across detail. first I speak wind embedded year. the more Okay. for broadly of wind of the RNW for the just to half also balance just if some you the that for your expectations on guidance And you've updated performance

you wind, half XXX%. the Yes. that Unfortunately, in and at be was say can't second half will the first XX% at

our year on PXX So is based also, forecast results. a balance of

heat half wind basically, a Again, an So of result. average July. did see we second in lot

based is So, July resource. the the production. But average back as sort well half on of was a wind forecast weak of

Yes.

I XX% think the in half. first

half. first the In Yes.

Yes.

I'll leave very there. great. it Thank Okay, much. you

Dariusz. Thanks,

Thank you.

Hope go ahead. Rob at will be question Scotiabank. Next from Please

circle block I turbines. kind One Connecticut X Shell Sun to of with Hello, the the from everyone. clarification, that point want of on the evaluation back project. and of off-take

Sun proceed you put not to other portfolio? to those X, could you over If were with your

question. great Yes that's a Rob,

not being do view Shell as the So, any we specific arrangement with contingent unit. on

to to that province. of be them is the areas we generation portfolio view able allocate other our the in would of So,

go terms a well I could for capacity that you suite the bit then investment renewables, increased capital umbrella, the spend And Sun of merchant share capital of under a of have a a increasingly opportunities better take are there. guess at buyback? a see it if fulsome costs kind on in of side as more renewable the Sun X look of and just acceleration amount doesn't X of seeing When forward, allocation potential question. a quite the increased in further good we we you was as projects

that's a Rob, Yes. question. great

look company. equivalent at sort We them of when So, and we allocation terms the we look level development of, of in have. to look we at for compete at the in that sort X, they Sun an pipeline tend of how capital kind

equation. renewable up to event kind the So, the our would when we between point that risk, bite in be we potentially capital to want that developed fleet, with at in it just accelerate two. at some capital pieces more sized more respects, we're different proceed of way kind the allocation X, contrasted. a the there Probably, ends manner, the into And Sun of look to your or side lower of would being the factors it more looking renewables in which be

them we're us. sort you trading words sub kind at typically of level. put buybacks, And, mouth sense the we're that, know, the on it very Todd's makes $XX In doing share we've you And too. the terms But, I Todd, we at I when where a to trading aren't focused of bought to much you think into given shares. priority know, about mean, of the price of a want base for don't comment on of can that, buybacks share prices, now, right

that's a of and our stock at prices. think good there I to support Actually, opportunistic fair buy to characterization to deploy capacity shares capital. the that we buy it back lot is and a you back Certainly, see know, opportunities

in one then well EBITDA? May in progress any Okay. that there struck was settlement uplift updates and question And of follow-up the Hedland in just as terms potential

Kerry. Sure, I you might her Hopefully can Rob, to that over might I here. hear turn

nice we settlement. you. to hear Hi, of finalizing We're so the weeks. from the And in Rob, do still in should imminent in the coming the process

Thank you.

Thanks, Rob.

you. Thank

Next Choy RBC Markets. be ahead. Maurice go Please at from question Capital will

follow-up first good that it like on My X, But just are boiler Thanks also Kineticor contemplation X. within of of in front is any Sundance you there a of from is, everything to remains conversion morning. instead Sun question another using newer is your that and you, table, sounds very the the much on Kineticor including efficient like and options instead back it marketable the to is the How in end? that bought project XXXX? repower turbines technology turbines ones, of to and sell list

of phase, over new proposed terms in turbines kind good we at Look, replacing that we've light pretty significant. of bill Maurice an next Yes, of the is added competitiveness sort the including the morning. to being or of, decisions that in class be Sundance we I made that. of that eight seven Thanks say still which for We're any are to evaluation in so, of years of wouldn't to course have. is the be province the the or X, unit looking the

project turbine terms to And fuel proceeding example of point time, we'd be existing a or to what at for for on want this recoup where turbines speculate wouldn't class different in comment land. able have so that example, would in the of, there. I not capability, with dual that and For the would don't

is event, hear like XX decision day in we want that on that that it to terms year likely tee And of I Fair end not will about or of that of it enough. more type is up the making more but decision? September

We're clarity, to Day certainly by hard be able Investor to Maurice. working provide more

Great. different the $XXX back circumstantial, years. been I XXXX. marketing. in recognize million back that segment upward improved the to the And And on Obviously, wanted is to some to are moving just $XXX a to of trend in change there million energy million. represents in sometimes based I has of just an permanent come off, to more $XXX profitability from a But million finish of $XXX guidance sign this forward? strongest that performances more XXXX,

my turn Todd, friend oversees I'm who over that the going to to group.

natural here in the opportunities there we're advantage Eastern about And well market. is really floor across what And like, Yes, well North sure the to and America. really gas are the Western certainly takes opportunity. good morning positioned is I'm markets take the themselves U.S. not present of that as it talking as market regions

of around waves look to arranging opportunity cold jurisdiction, other whether power of in – predominantly margin looks key volatility source the transport things look for, the in gives that that to that's and And periods transmission we've really of to forest other team's and so, for quite and and parts another something of power one it's the move price it fires generate and in transmission. by and year. certain or from seen, the to disruptions And is dislocations, team heat source moving times frankly, that's Even and opportunity to how they areas the energy one et profits. cetera

creates big is what say the that as And of a part renewables volatility well. I So, would is volatility opportunity.

I could So, we that in upward would number. that are an structural see shift say seeing, changes that

and part on just in think, Yes, the certainly Todd I increasing and thrives we've I seen that. world, of that time with the the think change demand, over heat volatility and the generation increasing is increased, of fourth mix, the that

Yes.

Thank you much. enough. very Fair

Thank you.

you. Thank

at from John question Mould TD be John. next Please Securities. will ahead, go Your

in the picture may in for May there or what’s may been a be take QX back little at again, looking requirement issuing just to X build to later your this regulatory CCS you guess, Maybe has step project down year, Sun just the to Hi, back broader your outlook full notice perceive obviously circle cost which back since that’s back morning either I vein disclosures, pulled everybody. outlook changed the markets, be had this of be a bit referenced quarter? that bit, road, at so power

question. a it’s think great John, I

in going XXXX things. of the terms period that you time looking $XXX like standard actually being seeing you to would in example, fully carbon of I look lot and very generation, in new as exposed we’re province the decline increased by to just at, on an side we’re and generation in Sun and the the at side When coming we zero federal mean, it’s are of much directionally forward. amount and a I’ll that it’s of the performance implications think for the project, looking both just proposed to the understand price go signal years, to as gas over on X of working the side very on the growth they government at province seeing the for I pricing gas where increase load renewable carbon the the and mindful gas going that the give

right decision So, isn't for looking in at things it's it of one thing, a prudently of our the confluence John, making the that, any think, I we're context shareholders.

ahead. Go Okay, Thanks great. that. for

cost add of that uncertainty. CCUS project. repowering pretty isn't it technology the fait also the just least assessment necessarily case is at with actual equal to cost a would CCS I of a the have of the our associated that the is it I And expensive that be would big mean, the CCS accompli. is technology,

of bit I to a picture. a wanted you So, give just of sort complete

at there, Okay. starting the thoughts turning AESPO just and the wonder then report been about Thanks that all by published? And there how for recent re-contracting annual outlook outlook informed has the on re-contracting your Sarnia the to acquisition that.

great it's a question. Yes,

four some actually to course success expecting in having working actually was of and the just the that. in good re-contracting industry off-takers pleased pricing we pretty to with of to in some at is what with available in we that the at of be completed add – one it are other us, for forward. of one, of creating Sarnia the discussions that. we're that the have there, participate that large well then with discussions the miners optimistic, sufficiently And has success focused quarter, can on think in the we're go least would AESO, the given ability it's off-take particular actually is a over kind advancing is, quarter, terms the region. looking that province creates flows that we of on it size a any power sort supplementing I important we the to hard Water with forward. recontract in major plant have we in seeing plant for do terms to we understand gone part of off-takers needs we're omit to a if of AESO we kind Certainly, located One we're And is chunk how for and have good ongoing a good we're as that we're you'd facility of three secure don't add terms of turn the if of So, Kerry, And of something elements it's we and expand ISO in to the crypto Blue in I indicated Park the facility template and a underpins our the need, and else and backstopping it understand there's over Energy competitive of going three. know with going. that. Kerry be opportunity the that that about there's anything benchmark be finally, cash are does the color anything. to us there, And some our really it's a And the as I and to done to Two, interested them the doing there. have

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And just Okay, seeing beyond one among just secure are the to on discussions maybe understand growth move offtake looking your best offtake stage that. Thanks there. pipeline, one potential great. advancing last projects, and for your those you're mid Oklahoma forward? opportunities projects which you pipeline, I Where the agreements

thank Yes, you that. for

to to falls advance Canada, In that there be demand do a institutions, hard to be our here. do wind thinking our little opportunities entities, fashion think able additional some there. team but of in the there, there So, wind development think that of our to three ongoing be think farms potentially in for example to the renewables that we've from province and And be similar gas, industry, an seen continues of excited We're We commercial working farms grow are also really we're to in even might that under here. to pretty about I customers solar Creek, development it serving potentially Australia. work I'm Willow to we bit of the that. wind into what honest Riplinger areas. in we're land and And Australia a continue and would just

we province, increasing of our see demand. opportunity bring set And a PJM, U.S. that Prairie of continue solar in to stages developing both part near something could lot PPA our where in a is continue project. really team off-take Illinois in with Violet of the strong, really we to doing Highvale good we in think also see opportunity And early of the also the in We’re is in also the and province, which southeastern forward. we the

with it's So, I'm we and in really have the medium that can feather now pleased defined projects John jurisdictions. term. of identifiable three really And all fact we kind that specifically the

leave I'll Okay, Thanks much. it great. very there.

John. Thanks,

you. Thank

will Andrew Please from be at go Kuske question Credit Suisse. Next ahead.

Thanks. Good morning.

I the fully Alberta, million converted your there's your would MD&A $XX comment carbon if be costs a fleet, that you lower. in think million were in at to compliance $XX

where clearing are some do you in compliance escalating legislative conversion Is basis? also the increasing, lower an time carbon So, upward think of versus there's question in like And but for bias a up? that's the a province? generation changing a on do one guess prices think you the prices how the there happening prices market wind that process costs carbon mix the of of carbon broad about over the I in because is tension yourselves more on

a it's way. this Maybe Yes, great try to question I'll answer Andrew. it

to intensity general, the do I'll way, the to answer provinces perspective, carbon so think a trend maybe we So, of this that it continue has is in try I and from declined going to decline. think

happen. that over is we rate to a than So, is bit for sure, that The lower think, carbon decline the continue prices increasing. I will happening time a at see though

time. carbon think you back in for decade, mid will sort get the that'll be So, of continue that gas new – price decline and for impacted presently the when time. to to we over And half and do expecting in because is at our increase to least over in company an sure that of showing that that's, pricing, be the standard itself see the part performance we're

question, certainly more near we – So, emissions are over numbers And and and but… don't that kind the the significant gas think, time. XXXX, more at see XXXX, do think, into generation there. of into answers know kind impact, bigger I it but exists as whatever bites muted I from the more it the term, a your get of I time, XXXX profile XXXX, that you if becomes natural

flipping seen ecosystem renewable you kind offer you need capture across really those other for few them your do being another of of power in We've color. on it? just very all and maybe XXxX to them, It's then structured does the Alberta, what see to And portfolio to a for do does. green It you a of to in pricing premium portfolio basis, assets But part helpful things. seem players jurisdictions, some deals deals. can opportunities power some able have

So, on what seeing are front? that you

at sure the the that operations. that of element And in Andrew. And glad focus product where there seeing takers our quite actually in just a in off that opportunity see on of Western that's an we actually their over not think change, think we time. in that the community remote their part actually that very So, biggest reducing I'm I'm it's much but Alberta are might you mining emissions, in with today least demanding, raised sets this. of we're also I they're having Australia, nature greater one reliability. interested

opportunities build to ancillary renewables that in the fleet wind, as that's our that time. grid. are with And in And fleet So, it's addition potentially tied some the I existing more think But into of tied might out think have pretty a potentially to helping storage, our more shape, and services that and province. And will the right do at of not help the they actually acute an a add but hydro I some have continues. of can it result, as just we amount in renewable future some needed assets to meet our fleet, meaningful to important of we're issue certainly province between them. the wind over maybe hydro do become the you're shaping existing, also not the looking the of ability

gives a of bit So hopefully that a sense. you

much. does, you That very thank

Andrew. Thanks,

Thank you.

Next question will Capital IA go be Markets. from Naji Please Baydoun ahead. at

you go good touched partnerships. morning. I wanted just corporate this know earlier, but to back to Hi, on I

like you the forward today more project the another year us. portfolio? for with if are sounds Garden what or got investments renewable this far your Plain you've or with the seem partnerships BHP, Goldfields opportunities? make growing see really capture to And some Do of path there's resources Pembina to becoming coming from So, so, it those corporate

question. great Naji, Yes,

growth and centered. growth, our customer it very we're think way much we renewables’ when is of frankly, approaching So, the

best solutions our with to up helping their actually is with come we have to development embedded be So, goal essentially this to our prospective I customers team. where actually And meet do needs. them is or think our customers,

to to with build the way is that teams we that customers we And do. actually of company, we It's our sure explicitly the think talk to expect focus making our what along something we So, be are to from to spending of out about we I that's partnerships real customers have expect do largely see of with the more, make renewable and do. I approach it whole seen? everything it's contracted? top lot as I at the time we our Do try standardize we lines internally a for easier that dealing and our to our way approaches a growth integrate interact forward. going mind.

bit the teams maybe helpful. your of one your And on to terms into solar case, try just wind? storage more of storage? And diversify in to but get development and maybe in question view today, or how believe so trade if still do a development That's off need that's another do to solar Okay. to opportunity versus add risk, pipeline, you consists return, mostly you you

in do the just storage we've but Yes, our so in process have and storage we done developing with what now frankly are portfolio with actually of incremental BHP, in in Alberta. not just Australia

the return our I economics that wind the we work think what own really better de-risk how time. the storage the we in can the forward, with understanding do all equation is with our And province becoming of opportunity think, did helped, go we for storage of As work. and we charger

it wind a we're little pretty positive will certainly higher it on competitive the like trend is than to space, storage to highly compressed, perspective. from frankly, it. that that bit of we the see So, notwithstanding see solar, remains the tend look, be a about storage, down. high, opportunities returns On But fact cost the it's compared we'd the a to

own We opportunities. acquisition are and canvassing though also potential focused developing solar our on

and parts think in a And it's world. as important technology like some that set solar disruptive think remains has the capabilities. at pretty transition our taking candidly some an I in company to the company our ours a the we important we of place focus. On It's looking skill are have silver for it's side energy that

see you'll company. think of I solar in a had more our we've focus traditionally So, than on

detail. That's you. great Thank Okay.

Thanks, Naji.

go next The at is Instructions] Bank. Patrick Please National [Operator Kenny you. Thank question from

Yes, you. good Thank morning guys.

of follow-ups Just a couple here.

results the the price realized Hydro relative back spot. to healthy achieved So and Alberta on

that the did you forward, is or I might've can but of in strong everything performance on how quarter clarify there, touched the think heat or wave just elevating play that it, we as he especially factor going and much the strong a so into late market out as relates it should expected XX% over to portfolio from the realized pricing premium expect seasonally quarter? what the fall second played

to I price maybe talking the all, say to say from good say of morning. would the sort Todd we're reverse come I we that is on to premium try Yes, the would where in energy the in of realizing side question I'll that side. hydro energy answer the Patrick, just our about, I expect would of first would broadly on spot hydro kind

that the temperatures tie, premium of saw pretty come spot to experienced. would in So, in we pretty to were due significant, of the broadly high be it back terms they we expect that the But prices province. having dramatically, the were over issues part were has quarter, were for to a the that inter kind with load in sure we there outages there

Todd, if quarter. confluence want. a a and events of resulted don’t fundamentals [indiscernible] over that the of strengthened was it demand you I So, number in supply know of kind

I it Alberta in in June, was say temperatures high the really abnormal. saw So, nobody we expected that would

the April, shoulder as how if in as is see typically, we are somewhat see would to May, power would on correlated like prices prices… it more far volatile As we premiums months the softer the that in hydro,

compression. More

we the because More But there much you compression, hydro. give was also heat and can do and outages, certainly, [indiscernible] of it which by the warm we outages and super pricing in doesn't months John typically as for the premiums the realize the and opportunities. all opportunity realize August, summer those there demand in July the then mentioned, as peak winter see then But months in presented sure. where driven to peak of of pricing were

Yes.

it's help just us back not and starting say Can you. it Okay. in That's day NGTL, proceed. then XXX XXXX. gas you does And million on Thank X, supply so up believe Pioneer maybe to just plus a I your Sun helpful. commitments square

with your conversion forecast units. scenario under commitment across boiler Sundance only internal that up and square consumption gas your Just Keephills a

make to be does on shelf your sure commitments while. with you little that want the for a stay won't offside Just Sun if X

evaluation forward supply what our it and I would a supply, mean terms different us going to commitments on the be those could equation, or proceeding say how X, that a Yes, do more know of in anticipated. as apple it's In but and ended of going proceeding we've plan, than looks making in gas question, to commitments. with sort a proceeding we gas would does gas we've supply we result I or decisions hopefully at that we we you if great got of in a of able add want Todd, terms of wouldn't you and remarket depending way the the don't currently we which the up have anything. being mean, we forward. market sort the excess extent at to of be begin much look general, team not of that in bit Sundance I'd flavor right I speculating gives Patrick, any little our now need look, a offside assessment it than But

be is Sun well we work procure I gas for But mean, look, we peak done. days of the that well. like supply that to of firm equation part remember, make as have think, But Yes sure all again, well. I there's to as as X

firm So, to actually that going nature using not where does mean by commitment. days there are be the you're entire

big decision don't I this made it time. Sun a has been on in X. anything as mismatch or again, point see And no at So,

That’s right.

color Okay. the guys. Appreciate That's great.

lot. a Thanks

further gentlemen, time, this at proceed. no And questions, we have you. Thank please

you, concludes today. our That for Sylvie. everyone. Thanks call Thank Great.

great to to don't hesitate reach questions, If further out you have Investor any day. Relations. Thanks, have please the a TransAlta and

your disconnect line. Ladies time, you. At you ask we that for attending. conclude do again please for you your this gentlemen, does today. call Once and Thank thank conference indeed this