TransAlta Advances Portfolio Rotation Through Sale of Minority Interest in Oklahoma Wind Portfolio for US$305 Million and Closes Acquisition of Colorado Gas Assets for US$1 Billion
Key Highlights
- ➤TransAlta sold a 49% Oklahoma wind portfolio stake for US$305 million cash.
- ➤TransAlta expects approximately US$60 million 2026 Adjusted EBITDA from the wind assets.
- ➤TransAlta acquired 318 MW of Colorado gas peaking facilities for US$1.0 billion.
- ➤Acquisition included assumption of US$750 million senior secured project-level debt.
- ➤Ares acquired minority ownership in contracted Oklahoma wind facilities from TransAlta.
Expert Statements
Joel Hunter, President and Chief Executive Officer of TransAlta
“We are actively managing our portfolio by rotating capital into the most attractive opportunities within our core geographies.”
Joel Hunter, President and Chief Executive Officer of TransAlta
“This transaction monetizes a portion of our investment in a non-core geography while retaining operational control and continued participation in the Assets.”
Joel Hunter, President and Chief Executive Officer of TransAlta
“The proceeds will strengthen our balance sheet and support accretive growth opportunities, including the Centralia conversion and Alberta data centre projects, as large-load growth, electrification and onshoring increase power demand across North America.”
Joel Hunter, President and Chief Executive Officer of TransAlta
“We will continue to be nimble in focusing our investment and operational expertise where we can have the greatest impact.”
Joel Hunter, President and Chief Executive Officer of TransAlta
“We are pleased to partner with Ares, a leading global asset manager with significant experience investing in renewable energy infrastructure and look forward to leveraging our combined strengths to further enhance the value of these assets.”
Josh Bellet, Managing Director in Ares Infrastructure Equity
“We are excited to partner with TransAlta on this portfolio of high-quality, contracted wind assets in Oklahoma.”
Josh Bellet, Managing Director in Ares Infrastructure Equity
“This transaction reflects our continued focus on investing in essential infrastructure that provides durable cash flows while helping meet the growing demand for power across the United States.”
Josh Bellet, Managing Director in Ares Infrastructure Equity
“We believe high-quality renewable generation assets will remain an important part of expanding domestic energy supply, and we look forward to working closely with TransAlta and its team of respected operators to support the long-term value of this portfolio.”
TransAlta Corporation (TransAlta or the Company) (TSX: TA) (NYSE: TAC) announced today that it has closed the sale of a 49 per cent minority ownership interest in its 500 MW wind portfolio in Oklahoma (the Assets) to Ares Infrastructure funds (Ares) for cash proceeds of US$305 million, before customary closing adjustments. The Assets include the 100 MW White Rock West, 200 MW White Rock East and 200 MW Horizon Hill wind facilities.
"We are actively managing our portfolio by rotating capital into the most attractive opportunities within our core geographies,” said Joel Hunter, President and Chief Executive Officer of TransAlta. “This transaction monetizes a portion of our investment in a non-core geography while retaining operational control and continued participation in the Assets. The proceeds will strengthen our balance sheet and support accretive growth opportunities, including the Centralia conversion and Alberta data centre projects, as large-load growth, electrification and onshoring increase power demand across North America. We will continue to be nimble in focusing our investment and operational expertise where we can have the greatest impact. We are pleased to partner with Ares, a leading global asset manager with significant experience investing in renewable energy infrastructure and look forward to leveraging our combined strengths to further enhance the value of these assets," concluded Mr. Hunter.
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