TransAlta Corp T.TA

Alternate Symbol(s): TAC | T.TA.PR.D | T.TA.PR.E | T.TA.PR.F | TACPF | T.TA.PR.G | T.TA.PR.H | TSLTF | T.TA.PR.J

Utilities Utilities - Independent Power Producers

TransAlta Corporation owns, operates, and develops a diverse fleet of electrical power generation assets, utilizing a range of input resources that includes water, wind, solar, natural gas and thermal coal in Canada, the United States and Australia. The Company provides clean power for municipalities, medium and large industries, and utility customers. Its segments include Hydro, Wind & Solar, Gas, Energy Transition, Energy Marketing, and Corporate. The Company has a diversified portfolio of energy assets and its diverse fleet of hydro, wind, solar, natural gas and cogeneration generate about 6.7 gigawatts (GW) of electricity. It delivers renewable energy solutions for large scale commercial partners, including tech companies. It operates a fleet of electrical power generation assets, including Antrim Wind Project, Ardenville Wind Facility, Old Town Wind Project, Pinnacle Project, SunHills Solar Project, Cascade hydro power plant, and Fortescue River Gas Pipeline, among others.

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TransAlta Corp

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Post by anon314on Feb 19, 2014 6:56pm

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Post# 22227458

Veritas Research on Transalta Renewables

TransAlta Renewables (RNW) - $11.27 – REC Upside Offsets Hydro Output Risk

Veritas: Buy, Intrinsic Value Estimate $11.75

RNW generated $1.24 of free cash flow in F2013, which when compared to the $0.77 current annual dividend, underscores the relatively low risk profile associated with its attractive dividend yield. However, while RNW’s income- appeal remains, Veritas is concerned that long-term average estimates for the hydroelectric assets is too high as actual output was 14% below long-term averages in F2013. On a positive note, Veritas’ RNW financial forecast does not ascribe any value to Renewable Energy Credits (“RECs”), allowing for modest pricing upside. Additionally, Veritas believes
the recently-closed Wyoming Wind acquisition generates approximately $0.25/share of equity value accretion. All considered, Veritas increased its RNW intrinsic value estimate to $11.75/share, from $11.15 previously, which accounts for some REC upside, the Wyoming Wind acquisition, and a reduction of output expectations for the hydroelectric assets. Given the attractive dividend yield and modest capital upside, Veritas maintains a BUY recommendation.

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