TransAlta to Buy Fully Contracted Colorado Gas Plants in US$1 Billion Deal, Launches $350 Million Equity Offering
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The latest announcement is out from TransAlta ( (TSE:TA) ).
On June 3, 2026, TransAlta said it agreed to acquire Mountain Peak Power and Canyon Peak Power, two fully contracted natural gas peaking plants near Denver totaling 318 MW, from Blackstone subsidiaries for an enterprise value of US$1.0 billion. The plants, backed by 25–30‑year tolling deals with investment‑grade Colorado cooperatives, are expected to add about US$80 million in annual adjusted EBITDA and be immediately accretive to free cash flow per share once both units are in service.
The acquisition, slated to close in early Q4 2026 subject to regulatory approvals and Canyon Peak’s commercial start, will be funded partly by assuming US$750 million of non‑recourse project debt and by a concurrent C$350 million bought‑deal equity issue of common shares. TransAlta plans to use the long‑term contracted cash flows and strengthened credit metrics to support further growth, including at its Centralia site and Alberta data centre projects, while deepening its strategic foothold in the high‑growth Colorado market.
The most recent analyst rating on (TSE:TA) stock is a Buy
with a C$24.00 price target.
To see the full list of analyst forecasts on TransAlta stock,
see the TSE:TA Stock Forecast page.
Spark’s Take on TA Stock
According to Spark, TipRanks’ AI Analyst, TA is a Neutral.
The score is held back primarily by weakening profitability and a highly leveraged balance sheet, despite strong operating and free cash flow. Technicals are largely neutral with the stock below key longer-term moving averages, and valuation is unattractive due to a very high P/E with only a modest dividend yield. The latest earnings call adds some support via hedging coverage, liquidity actions, and defined 2026 guidance, but near-term headwinds (power prices and Centralia downtime) limit upside confidence.
To see Spark’s full report on TA stock,
click here.
More about TransAlta
TransAlta Corporation is a Calgary-based power generation company listed on the TSX and NYSE, with a core focus on electricity production and contracted generation assets across North America. The business has been expanding its presence in the Western U.S., pursuing long-term, low-risk cash flow through utility and cooperative off‑take agreements and leveraging its expertise in gas and renewables to support growth initiatives such as data centres.
Average Trading Volume: 1,439,576
Technical Sentiment Signal: Strong Buy
Current Market Cap: C$5.89B
For detailed information about TA stock, go to TipRanks’ Stock Analysis page.
