Resuming Coverage; Derisked U.S. Gas Acquisition Diversifies Gas Portfolio

Research evidence excerpt

Resuming Coverage; Derisked U.S. Gas Acquisition Diversifies Gas Portfolio

Power & Utilities

TransAlta Corp.

TD SECURITIES INC. - CANADA COMPANY UPDATE

June 9, 2026

Price: C$17.47 (06/8/2026) Resuming Coverage; Derisked U.S. Gas

Price Target: C$26.00 Acquisition Diversifies Gas Portfolio

BUY (1)

ESG SCORE: 58/100

John Mould, CFA^ THE TD COWEN INSIGHT

416 944 6832

We attribute the 13% pullback since TA's CO peaker acquisition announcement to asset

john.mould@tdsecurities.com

characteristics (highly derisked) and full valuation (12.5x EV/EBITDA). We view these new

Prtishtha Soni^ peakers as complimentary to TA's older gas-fired merchant fleet & consistent with TA's desire

416 307 8389 to grow in WECC. We continue to anticipate near-term progress on the broader Alberta data

prtishtha.soni@tdsecurities.com

centre opportunity. Maintain BUY, $26 PT.

Ben Fullarton^

416 308 8209 Event

ben.fullarton@tdsecurities.com

We are resuming coverage of TransAlta following the completion of a $350 million bought

Key Data deal equity offering (18.2 million shares at $19.20/share). TransAlta has agreed to acquire

Symbol TSX: TA-T

two highly contracted gas-fired peakers located in Colorado (318 MW total) for an EV of ~$1.4

12-Month Div (Est.): C$0.28 billion. The $1.4 billion cash purchase price will be funded with the bought deal proceeds; the

Beta: 0.49 transaction includes the assumption of $1.035 billion of project-level debt. The acquisition is

12-Month Total

50.4% expected to close early in Q4/26.Return:

52-Week Range: C$24.79-C$14.21 Impact: Mixed for Sentiment

Market Cap: C$5.5B

■We attribute the 13% pullback since the acquisition was announced to asset

Net Debt (MM): C$5,233.0

characteristics and full valuation. The highly de-risked nature of these assets do not offer