TransAlta (TA.TO, TAC) was last seen down 3.9% in after-hours New York trading after the company on Wednesday said it agreed to acquire Mountain Peak Power and Canyon Peak Power in Colorado from Blackstone for about US$1 billion.
The two natural-gas peaking facilities, located near Denver,, have a combined capacity of 318 megawatts. Mountain Peak Power has been operating since September 2025, while Canyon Peak Power is expected to begin commercial operations by the end of September.
The company said the assets are expected to generate about US$80 million in annual adjusted EBITDA. "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," Chief Executive Joel Hunter added.
The transaction is valued at about US$1 billion, including US$750 million of assumed project debt and US$250 million of equity. TransAlta plans to fund the equity portion through a concurrent $350-million bought-deal share offering, according to the statement.
The acquisition is set to close in early Q4, subject to Canyon Peak Power entering commercial service, regulatory approvals, and other customary closing conditions, the company said.
The company's shares were last seen down US$0.56 to US$13.90 after hours. They closed up $0.25 to $20.08 on the Toronto Stock Exchange.