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TransAlta buys Colorado gas assets for $1B, plans $350M share offering

Created at 3 Jun · 8:40 PM8 sources↑ Market-relevant4 events
IN SHORT

Canadian power producer TransAlta Corp. is acquiring two natural gas-fired peaking facilities in Colorado from Blackstone for $1 billion. The company also announced a $350 million bought deal offering of common shares to help fund the transaction.

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Key Numbers

$1 billionacquisition cost for Colorado gas assets
318 megawattscombined capacity of acquired facilities
$80 millionexpected annual adjusted core profit
$33 millionexpected annual free cash flow
25 yearsterm of contracted agreements
$350 millioncommon share offering size
early fourth quarter of 2026expected closing period for acquisition
$750 millionproject level debt to be assumed
$250 millionequity to be raised through share sale

Who's Involved

TransAlta Corp.
Canadian power producer acquiring Colorado gas assets
Blackstone
Seller of the Colorado gas assets
Mountain Peak Power
Acquired natural gas-fired peaking facility in Colorado
Canyon Peak Power
Acquired natural gas-fired peaking facility in Colorado
Joel Hunter
CEO of TransAlta

↳ Why This Matters

The acquisition expands TransAlta's footprint in the Western U.S. power market and diversifies its generation portfolio with contracted natural gas assets, while the share offering aims to strengthen its balance sheet.

Key facts

  • TransAlta is acquiring two natural gas-fired peaking facilities in Colorado from Blackstone for $1 billion.
  • The acquired assets, Mountain Peak Power and Canyon Peak Power, have a combined capacity of 318 megawatts.
  • The facilities are fully contracted under long-term agreements for over 25 years.
  • The transaction is expected to generate about $80 million in annual adjusted core profit and $33 million in free cash flow.
  • TransAlta announced a concurrent $350 million bought deal offering of common shares.
  • The acquisition is expected to close in early fourth quarter of 2026.

Canadian power producer TransAlta Corp. announced on June 3, 2026, that it will acquire two natural gas-fired peaking facilities, Mountain Peak Power and Canyon Peak Power, near Denver, Colorado, from Blackstone for approximately $1 billion. These facilities have a combined capacity of 318 megawatts and are fully contracted under long-term tolling agreements with investment-grade customers for more than 25 years. The deal involves assuming $750 million in project-level debt and raising about $250 million in equity through a share sale. The assets are expected to generate about $80 million in annual adjusted core profit and roughly $33 million in free cash flow, with potential additional upside from performance incentives. TransAlta stated the deal will immediately add to free cash flow per share in the low-to-mid single digits. The transaction is anticipated to close in early fourth quarter of 2026, subject to the completion of the Canyon Peak facility, which is set to begin operations in the third quarter.

Frequently asked questions

TransAlta is acquiring two natural gas-fired peaking facilities in Colorado, named Mountain Peak Power and Canyon Peak Power.

The acquisition cost for the two facilities is approximately $1 billion, including $750 million in project-level debt and $250 million in equity.

TransAlta is funding the acquisition through a $350 million bought deal offering of common shares and by assuming $750 million in project-level debt.

The transaction is expected to close in early fourth quarter of 2026, pending the completion of the Canyon Peak facility.

What Happens Next

01Completion of the acquisition of Colorado gas assets.
02Closing of the $350 million bought deal offering.
03Canyon Peak facility begins operations in Q3 2026.

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How It Developed

3 Jun · 9:13 PM
TransAlta is set to acquire Colorado gas-fired power plants from Blackstone for $1 billion, enhancing its US market position.
Investing.com via PiQSuite
3 Jun · 9:10 PM
TransAlta's $1B acquisition of Colorado gas plants includes $750M debt and $250M equity, with CEO citing data center growth.
Reuters via PiQSuite
3 Jun · 8:42 PM
TransAlta is acquiring two Colorado peaking plants from Blackstone for $1 billion, as previously reported.
Investing.com via PiQSuite
3 Jun · 8:23 PM
TransAlta is acquiring two fully-contracted gas assets in Colorado and launching a $350 million bought deal offering of common shares.
Financial Post via PiQSuite

Sources

T1
TransAlta Announces the Acquisition of Two Fully-Contracted Gas Assets in Colorado and Concurrent $350 Million Bought Deal Offering of Common Sharesm.piqsuite.com
T1
TransAlta to buy Blackstone-backed Colorado peaking plants for $1 billionm.piqsuite.com
T1
TransAlta to buy Blackstone-backed Colorado peaking plants for $1 billionm.piqsuite.com
T1
TransAlta to buy Colorado gas assets in $1B deal, launch $350M bought deal offeringm.piqsuite.com
T1
TransAlta to buy Blackstone-backed Colorado gas-fired plants for $1 billionm.piqsuite.com
T1
TransAlta to buy Blackstone-backed Colorado gas-fired plants for $1 billionm.piqsuite.com
T1
TransAlta to buy Blackstone-backed Colorado peaking plants for $1 billionm.piqsuite.com
T1
TransAlta to buy Blackstone-backed Colorado gas-fired plants for $1 billionm.piqsuite.com

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