TransAlta to Acquire 310 MW Contracted Ontario Gas Portfolio for $95 Million
TransAlta (TSX: TA; NYSE: TAC) will acquire a 310 MW contracted Ontario gas portfolio for $95 million (about $306/kW), increasing its Ontario footprint to 1,300 MW. The portfolio comprises four gas-fired plants (Iroquois Falls 120 MW, Kingston 110 MW, North Bay 40 MW, Kapuskasing 40 MW) and 167 acres of co-located land.
The deal is expected to be immediately accretive to free cash flow and cash yield, with ~68% of gross margin contracted to 2031, and management projects about $30 million average Adjusted EBITDA per year. The transaction is subject to regulatory approvals and is expected to close by early Q1 2026. Financing will use cash on hand and draws on credit facilities.
TransAlta (TSX: TA; NYSE: TAC) acquisterà un portafoglio a gas da 310 MW in Ontario con contratto per 95 milioni di dollari (circa 306 $/kW), aumentando la sua presenza in Ontario a 1.300 MW. Il portafoglio comprende quattro impianti a gas (Iroquois Falls 120 MW, Kingston 110 MW, North Bay 40 MW, Kapuskasing 40 MW) e 167 acri di terreno adiacente.
L'accordo è previsto essere immediatamente redditizio per il flusso di cassa disponibile e il rendimento in contanti, con circa 68% del margine lordo contrattualizzato fino al 2031, e la direzione prevede circa 30 milioni di dollari di EBITDA rettificato medio all'anno. La transazione è soggetta a approvazioni normative e dovrebbe chiudersi entro il primo trimestre del 2026. Il finanziamento utilizzerà disponibilità liquide e affidamenti.
TransAlta (TSX: TA; NYSE: TAC) adquirirá una cartera de gas en Ontario de 310 MW con contrato por $95 millones (aprox. $306/kW), aumentando su presencia en Ontario a 1,300 MW. La cartera comprende cuatro plantas de gas (Iroquois Falls 120 MW, Kingston 110 MW, North Bay 40 MW, Kapuskasing 40 MW) y 167 acres de terreno superpuesto.
Se espera que el acuerdo sea inmediatamente acreedor al flujo de caja libre y al rendimiento en efectivo, con ~68% del margen bruto contratado hasta 2031, y la dirección estima unos $30 millones de EBITDA ajustado medio por año. La transacción está sujeta a aprobaciones regulatorias y se espera que cierre a principios del primer trimestre de 2026. El financiamiento utilizará efectivo disponible y préstamos de facilidades de crédito.
TransAlta (TSX: TA; NYSE: TAC) 310MW의 계약된 온타리오 가스 포트폴리오를 $95백만에 인수하여 $306/kW당, 온타리오에서의 규모를 1,300 MW로 확장합니다. 포트폴리오는 가스 화력 4개 발전소(Iroquois Falls 120 MW, Kingston 110 MW, North Bay 40 MW, Kapuskasing 40 MW)와 인접 토지 167에이커로 구성됩니다.
거래는 즉시 자유현금흐름 및 현금 수익성에 기여할 것으로 예상되며, 총마진의 ~68%가 2031년까지 계약되어 있고, 경영진은 연간 평균 $30 million의 조정 EBITDA를 예상합니다. 거래는 규제 승인을 조건으로 하며 2026년 1분기 초에 마감될 것으로 기대됩니다. 자금 조달은 현금 보유분과 신용시설 차입으로 이뤄질 예정입니다.
TransAlta (TSX: TA; NYSE: TAC) s'assiéra sur un portefeuille gazier contracté en Ontario de 310 MW pour 95 millions de dollars (environ 306 $/kW), augmentant sa présence en Ontario à 1 300 MW. Le portefeuille comprend quatre centrales au gaz (Iroquois Falls 120 MW, Kingston 110 MW, North Bay 40 MW, Kapuskasing 40 MW) et 167 acres de terrain adjacent.
La transaction devrait être immédiatement créatrice de flux de trésorerie disponible et de rendement en espèces, avec environ 68 % de la marge brute contractée jusqu'en 2031, et la direction prévoit environ 30 millions de dollars d'EBITDA ajusté moyen par an. L'opération est soumise à des autorisations réglementaires et devrait se clôturer d'ici le premier trimestre 2026. Le financement utilisera les liquidités disponibles et des emprunts sur des facilités de crédit.
TransAlta (TSX: TA; NYSE: TAC) wird ein vertraglich gebundenes Gasportfolio in Ontario mit 310 MW zu 95 Millionen Dollar erwerben (ca. 306 $/kW), wodurch sich die Präsenz in Ontario auf 1.300 MW erhöht. Das Portfolio umfasst vier gasbetriebene Kraftwerke (Iroquois Falls 120 MW, Kingston 110 MW, North Bay 40 MW, Kapuskasing 40 MW) und 167 Morgen Land nebeneinander.
Der Deal wird voraussichtlich sofort gegen den freien Cashflow und die Cash Yield beitragen, mit ca. 68% des Bruttomargen bis 2031 vertraglich gesichert, und das Management rechnet mit ca. 30 Millionen USD durchschnittlichem bereinigtem EBITDA pro Jahr. Die Transaktion unterliegt behördlichen Genehmigungen und soll voraussichtlich bis zum Anfang Q1 2026 abgeschlossen werden. Die Finanzierung erfolgt aus vorhandenen Mitteln und Kreditlinien.
TransAlta (TSX: TA; NYSE: TAC) ستستحوذ على محفظة غازية في أونتاريو تبلغ 310 MW بعقد بقيمة $95 مليوناً (حوالي $306/كW)، مما يزيد بصمتها في أونتاريو إلى 1,300 MW. تتكون المحفظة من أربع محطات تعمل بالغاز (Iroquois Falls 120 MW, Kingston 110 MW, North Bay 40 MW, Kapuskasing 40 MW) و167 فداناً من الأرض الملاصقة.
من المتوقع أن تكون الصفقة إضافة فورية إلى التدفق النقدي الحر و العائد النقدي، مع نحو 68% من الهامش الإجمالي موكَّلاً حتى 2031، وتتوقع الإدارة نحو $30 مليون كإيرادات EBITDA معدلة سنوياً. الصفقة خاضعة للموافقات التنظيمية ومن المتوقع أن تُغلق في بداية الربع الأول من 2026. سيتولى التمويل النقد المتوفر وائتمانات التمويل.
- Immediate accretion to free cash flow and cash yield
- 310 MW portfolio increases Ontario footprint to 1,300 MW
- Estimated $30M average Adjusted EBITDA per year
- 68% of portfolio gross margin contracted to 2031
- Includes 167 acres of co-located land for optionality
- Transaction financed with cash and draws on credit facilities
- Only 68% contracted through 2031 creates re-contracting risk
- Closing subject to regulatory approvals, risking timing or conditions
Insights
Acquisition expands contracted Ontario footprint, is immediately cash‑accretive and adds predictable EBITDA.
The $95 million purchase increases contracted capacity by 310 MW to 1,300 MW and is financed with cash and credit draws. The deal price converts to roughly
Key dependencies include receipt of regulatory approvals and customary closing conditions, with closing expected by
Adds dispatchable, contracted gas capacity and optional land for future site uses; recontracting risk remains beyond
The acquisition consolidates four gas plants (120 MW, 110 MW, 40 MW, 40 MW) under one operator, increasing scale in Ontario. Contract coverage to
Risks stem from contract expiries after
CALGARY, Alberta, Nov. 17, 2025 (GLOBE NEWSWIRE) --
Highlights
- Purchase price of
$95 million , or approximately$306 per kilowatt (kW) - Immediately accretive to free cash flow and cash yield upon closing with approximately
68% of the portfolio's gross margin contracted to 2031; attractive recontracting fundamentals longer-term - TransAlta's Energy Marketing and Trading team to deliver merchant upside and synergies
- Augments and further diversifies TransAlta’s contracted portfolio and enhances competitive position in our core market of Ontario, increasing our footprint by 310 megawatts (MW) to 1,300 MW
TransAlta Corporation (TransAlta or the Company) (TSX: TA; NYSE: TAC) is pleased to announce that it has entered into a definitive share purchase agreement (the Agreement) with an affiliate of Hut 8 Corp. and Macquarie Equipment Finance Ltd., the equity owners of Far North Power Corporation (Far North), pursuant to which TransAlta will acquire Far North and its entire business operations in Ontario. Far North owns and operates generation assets consisting of four natural gas-fired generation facilities totalling 310 MW. The purchase price for the acquisition is
“With this acquisition, our position in Ontario increases through contracted and complementary assets. As electrification and population growth continues, the market will meaningfully rely on existing firm, dispatchable generation for grid reliability. Beyond the contract period these assets are attractively positioned for re-contracting opportunities as well as with optionality given the 167 acres of co-located land. The transaction adds to our reliable and increasingly diversified portfolio, and we see long term value in these assets," said John Kousinioris, President and Chief Executive Officer of TransAlta.
"This acquisition is immediately accretive to cash flow and demonstrates progress towards our priority of pursuing strategic M&A," said Joel Hunter, Executive Vice President, Finance and Chief Financial Officer. "We expect to seamlessly integrate these assets while remaining focused on advancing our Alberta data centre and Centralia opportunities."
The assets are expected to add approximately
1 Adjusted EBITDA is non-IFRS measure. It does not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other entities. Adjusted EBITDA is calculated by adjusting Earnings before income taxes for certain items that may not be reflective of ongoing business performance. The average Adjusted EBITDA is based on the expected aggregate Adjusted EBITDA for the period from 2027 - 2031 divided by the number of years in such period. Please refer to the “Non-IFRS and Supplementary Financial Measures” section of our management’s discussion and analysis for the three and nine months ended September 30, 2025 (“MD&A”) for more information about the non-IFRS measures we use, including a reconciliation of Adjusted EBITDA to Earnings before income tax, the most directly comparable IFRS measure, which section of the MD&A is incorporated by reference herein. The MD&A can be found on SEDAR+ (www.sedarplus.ca) under TransAlta’s profile.
About TransAlta Corporation:
TransAlta owns, operates and develops a diverse fleet of electrical power generation assets in Canada, the United States and Australia with a focus on long-term shareholder value. TransAlta provides municipalities, medium and large industries, businesses and utility customers with affordable, energy efficient and reliable power. Today, TransAlta is one of Canada’s largest producers of wind power and thermal power and Alberta’s largest hydro-electric power. For over 114 years, TransAlta has been a responsible operator and a proud member of the communities where we operate and where our employees work and live. TransAlta aligns its corporate goals with the UN Sustainable Development Goals and the Future-Fit Business Benchmark, which also defines sustainable goals for businesses. Our reporting on climate change management has been guided by the International Financial Reporting Standards (IFRS) S2 Climate-related Disclosures Standard and the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. TransAlta has achieved a 70 per cent reduction in GHG emissions or 22.7 million tonnes CO2e since 2015 and received an upgraded MSCI ESG rating of AA.
For more information about TransAlta, visit our web site at transalta.com.
Cautionary Statement Regarding Forward-Looking Information
This news release includes "forward-looking information," within the meaning of applicable Canadian securities laws, and "forward-looking statements," within the meaning of applicable United States securities laws, including the Private Securities Litigation Reform Act of 1995 (collectively referred to herein as "forward-looking statements"). Forward-looking statements are not facts, but only predictions and generally can be identified by the use of statements that include phrases such as "may", "will", "believe", "expect", "estimate", "anticipate", "intend", "plan", "forecast", "continue" or other similar words. In particular, this news release contains forward-looking statements about the following, among other things: the acquisition of Far North Power Corporation; the anticipated benefits arising from such acquisition, including the addition of approximately
Forward-looking statements and future-oriented financial information in this news release are intended to provide the reader information about management's current expectations and plans and readers are cautioned that such information may not be appropriate for other purposes. Forward-looking statements are subject to important risks and uncertainties and are based on certain key assumptions. All forward-looking statements reflect TransAlta's beliefs and assumptions based on information available at the time the statements were made and as such are not guarantees of future performance. As actual results could vary significantly from the forward-looking statements, you should not put undue reliance on forward-looking statements and should not use future-oriented information or financial outlooks for anything other than their intended purpose. We do not update our forward-looking statements due to new information or future events, unless we are required to by law. For additional information on the assumptions made, and the risks and uncertainties which could cause actual results to differ from the anticipated results, refer to our most recent MD&A and the 2024 Integrated Report, including the section titled "Governance and Risk Management" in our MD&A for the year ended December 31, 2024, filed under TransAlta's profile on SEDAR+ at www.sedarplus.ca and with the U.S. Securities and Exchange Commission at www.sec.gov.
For more information:
| Investor Inquiries: | Media Inquiries: |
| Phone: 1-800-387-3598 in Canada and US | Phone: 1-855-255-9184 |
| Email: investor_relations@transalta.com | Email: ta_media_relations@transalta.com |
FAQ
What is TransAlta (TAC) paying for the 310 MW Ontario gas portfolio and what is the price per kW?
How much additional capacity does the acquisition add to TransAlta's Ontario footprint?
What EBITDA impact does TransAlta expect from the Far North portfolio for TAC shareholders?
When is the TransAlta (TAC) acquisition expected to close and what approvals are required?
How much of the portfolio's gross margin is contracted and until when for TAC investors?
How will TransAlta (TAC) finance the $95 million purchase price?
Which specific plants are included in TransAlta's 310 MW purchase for TAC?
