Mr. Joel Hunter reports

TRANSALTA ADVANCES PORTFOLIO ROTATION THROUGH SALE OF MINORITY INTEREST IN OKLAHOMA WIND PORTFOLIO FOR US$305 MILLION AND CLOSES ACQUISITION OF COLORADO GAS ASSETS FOR US$1 BILLION

TransAlta Corp. has closed the sale of a 49-per-cent minority ownership interest in its 500-megawatt wind portfolio in Oklahoma to Ares Infrastructure funds for cash proceeds of $305-million (U.S.) before customary closing adjustments. The assets include the 100-megawatt White Rock West, 200-megawatt White Rock East and 200-megawatt Horizon Hill wind facilities.

"We are actively managing our portfolio by rotating capital into the most attractive opportunities within our core geographies," said Joel Hunter, president and chief executive officer of TransAlta. "This transaction monetizes a portion of our investment in a non-core geography while retaining operational control and continued participation in the assets. The proceeds will strengthen our balance sheet and support accretive growth opportunities, including the Centralia conversion and Alberta data centre projects, as large-load growth, electrification and onshoring increase power demand across North America. We will continue to be nimble in focusing our investment and operational expertise where we can have the greatest impact. We are pleased to partner with Ares, a leading global asset manager with significant experience investing in renewable energy infrastructure and look forward to leveraging our combined strengths to further enhance the value of these assets," concluded Mr. Hunter.

"We are excited to partner with TransAlta on this portfolio of high-quality, contracted wind assets in Oklahoma," said Josh Bellet, managing director in Ares Infrastructure Equity. "This transaction reflects our continued focus on investing in essential infrastructure that provides durable cash flows while helping meet the growing demand for power across the United States. We believe high-quality renewable generation assets will remain an important part of expanding domestic energy supply, and we look forward to working closely with TransAlta and its team of respected operators to support the long-term value of this portfolio."

The assets are supported by long-term contracts with investment-grade counterparties, including production tax credits which expire in 2034. In 2026, the assets are expected to deliver adjusted earnings before interest, taxes, depreciation and amortization of approximately $60-million (U.S.), which, based on a 49-per-cent share, equates to approximately $29-million (U.S.). TransAlta will maintain operational oversight of the assets under a long-term asset management agreement, leveraging its expertise in renewable generation.

TransAlta also announced today that it has completed the acquisition of Mountain Peak Power LLC and Canyon Peak Power LLC from Blackstone Inc. for $1.0-billion (U.S.), inclusive of the assumption of $750-million (U.S.) of senior secured project level debt. The acquisition includes two new, fully contracted natural gas-fired peaking facilities totalling 318 megawatts near Denver, Colo.

About TransAlta Corp.

TransAlta is one of Canada's largest publicly traded power generators, delivering reliable electricity across Canada, the United States and Western Australia. For more than 115 years, its people have safely operated and evolved essential energy infrastructure that powers customers and communities. Its technology-diverse portfolio and disciplined execution allow it to deliver dependable power across evolving energy systems. The company takes a practical, responsible approach to meeting today's energy needs while building for what comes next.

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