TransAlta Sells Wind Stake for $305 Million, Closes $1 Billion Gas Deal
AI-generated image: synthetic visual, not an actual depiction of events, people, or locations.
Key Takeaways
- TransAlta sold a 49% stake in its 500 MW Oklahoma wind portfolio to Ares Infrastructure funds for US$305 million.
- The company acquired 318 MW of natural gas peaking capacity in Colorado from Blackstone for US$1.0 billion, including the assumption of US$750 million in debt.
- TransAlta will retain operational control of the Oklahoma wind assets, which are expected to generate US$60 million in Adjusted EBITDA in 2026.
TransAlta (NYSE: TAC) Corp. sold a 49% stake in its Oklahoma wind portfolio to Ares Infrastructure funds for US$305 million and completed a US$1 billion acquisition of two Colorado gas plants, freeing capital for development projects while expanding its contracted power business.
The Calgary-based electricity producer said Oct. 22 that the wind-sale proceeds, before customary closing adjustments, will strengthen its balance sheet and support growth opportunities, including the conversion of its Centralia power plant to natural gas and proposed Alberta data centres. TransAlta retains a 51% interest and will oversee operations under a long-term asset management agreement, according to the company’s release.
The sale covers a portfolio TransAlta described as totaling 500 megawatts across the White Rock West, White Rock East and Horizon Hill facilities. The assets have long-term contracts with investment-grade counterparties and benefit from production tax credits that expire in 2034.
TransAlta expects the wind portfolio to generate about US$60 million in adjusted earnings before interest, taxes, depreciation and amortization in 2026. The interest sold represents roughly US$29 million of that non-IFRS earnings measure.
