Transalta (TAC) has seen a recent surge in call accumulation including 2,625 November $15 calls, 1000 June $12 calls, 1200 March $10 calls, and 2500 March $11 calls. TAC this week is breaking out of a nice weekly bull flag after consolidating on the 8-week EMA and clearing 2023 highs.

TransAlta Corporation (TAC) is a major electricity power generator and wholesale marketing company headquartered in Calgary, Alberta, Canada. It operates 78 power plants in Canada with a mix including coal, natural gas, wind, solar, and hydro power generation. TAC owns Canada’s largest investor-owned renewable energy provider. TAC recently announced a $542M to acquire Heartland Energy Capital. Heartland owns and operates generation assets consisting of 507 MW of cogeneration, 387 MW of contracted and merchant peaking generation, 950 MW of natural gas-fired thermal generation, transmission capacity and a development pipeline that includes the 400 MW Battle River Carbon Hub.

TAC has a $3.3B market cap and trades 39X Earnings, 7.8X EBITDA and 10X FCF with a 1.55% dividend yield. TransAlta’s hydro fleet is delivering strong results and can be instrumental in supporting data centers in Alberta. TAC will share more detailed development plans for Centralia during the first half of 2025. TAC is marketing Alberta legacy thermal sites and believe that they hold significant value. The sites have water rights, fiber optic cable access close by, and grid interconnection on location.