TransAlta Corporation said on Wednesday it has agreed to acquire two power stations in the United States from affiliates of Blackstone Inc for US$1 billion (A$1.4 billion).
The Canadian power producer said it would buy Mountain Peak Power LLC and Canyon Peak Power LLC, which own two new natural gas peaking facilities near Denver, Colorado, with a combined generating capacity of 318 megawatts.
The transaction included the assumption of $750 million in senior secured project-level debt and $250 million of equity, which TransAlta would finance through a C$350 million (US$250 million) ‘bought-deal’ offering of common shares.
The facilities are fully contracted under long-term tolling agreements with investment-grade customers with a weighted average contract life of 27 years.
“This acquisition adds new, high-quality, low-risk assets in a core market for us,” TransAlta President and Chief Executive Officer Joel Hunter said in a news release.
He said the deal strengthened the company’s business risk profile, was immediately accretive to our free cash flow per share and established a strategic foothold in Colorado, a state it believed had accelerating growth potential.
“These assets will generate long-term contracted cash flows for redeployment into other growth prospects such as Centralia and Alberta data centres, and I am pleased with the continued meaningful progress on both projects,” Hunter said.
TransAlta said the assets were expected to generate $80 million in annual adjusted earnings before interest, tax, depreciation and amortisation and US$33 million in annual free cash flow, with upside potential from availability incentive payments.
Mountain Peak Power has been operating since September 2025, while Canyon Peak Power is expected to enter commercial service during the third quarter of 2026.
TransAlta expects the transaction to close in the early fourth quarter of 2026.
TransAlta shares (TSE: TA) closed 25 cents (1.26%) higher at C$20.08 on Wednesday (Thursday AEST), capitalising the company at C$5.98 billion (US$4.3 billion).
