ALA.PR.U AltaGas Ltd

AltaGas Ltd. ("AltaGas") (TSX:ALA)(TSX:ALA.PR.A)(TSX:ALA.PR.U) announced today
that it has entered into an agreement (the "Purchase Agreement") to acquire a 25
percent strategic interest in Petrogas Energy Corp. ("Petrogas"), a privately
held leading North American integrated midstream company, for approximately 2.8
million shares of AltaGas Ltd. priced at $35.69, the 20-day volume weighted
average price, and cash (the "Acquisition"). The Acquisition is expected to be
meaningfully accretive to earnings and cash flow per share.


"Our investment in Petrogas provides strategic alignment with a major North
American integrated midstream service provider and brings a unique opportunity
to optimize and expand our current midstream assets, increasing our ability to
move NGL's and crude oil to meet market demands. It also brings key
infrastructure needed to develop our LPG export initiative," said David
Cornhill, Chairman and CEO of AltaGas. "Petrogas is a strong fit with our
strategy of adding assets that provide energy solutions for our customers."


Petrogas, with annual sales of over $2.7 billion and approximately $750 million
in total assets, owns and operates extensive midstream facilities along with a
logistics network consisting of over 1,500 rail cars and 24 rail and truck
terminals. More specifically, Petrogas has major terminal and storage facilities
with rail access in key energy hubs including Fort Saskatchewan, Alberta,
Sarnia, Ontario, Griffith, Indiana, Conway, Kansas and Mt. Belvieu, Texas.
Combined, Petrogas touches over 100,000 bbls/d of crude oil and other products,
can store over 4 million barrels through owned and leased storage capacity for
crude and other products and has throughput capacity for crude blending in
excess of 25,000 bbls/d.


AltaGas and Petrogas have agreed to enter into a NGL marketing arrangement
whereby Petrogas will purchase the NGL produced for AltaGas' account at
AltaGas-owned processing facilities. The arrangement is expected to increase
AltaGas' access to various NGL end use markets and improve optimization of
AltaGas' natural gas processing facilities.


The Acquisition is expected to close on October 1, 2013, and is subject to
customary regulatory approvals, including the approval of the Toronto Stock
Exchange. AltaGas will continue to maintain its strong balance sheet and
financial discipline and its commitment to maintaining an investment grade
credit rating.


As part of the Purchase Agreement, AltaGas has retained a conditional option to
purchase directly or indirectly up to an additional 25 percent interest in
Petrogas in 2013. TD Securities Inc. is acting as exclusive financial adviser to
AltaGas with respect to the proposed Acquisition. 


Investment Highlights



--  The Acquisition provides a unique opportunity for AltaGas to leverage
    its infrastructure assets and capture synergies across business
    activities, unlocking value in our NGL assets; 
    
--  The strategic location of AltaGas' NGL facilities combined with
    Petrogas' market expertise and infrastructure provide the ability to
    move NGL in and out of storage and transport to market to meet customer
    demand; 
    
--  The Acquisition supports AltaGas' LPG export initiative and is expected
    to provide access to additional NGL markets across North America and
    internationally; 
    
--  The Acquisition enhances CNG and LNG trucking opportunities; 
    
--  The Acquisition provides expanded growth opportunities for AltaGas; and 
    
--  Petrogas' assets are located in Canada and throughout key energy markets
    in the United States, providing a good geographic fit with AltaGas'
    current portfolio of assets. 



About AltaGas Ltd.

AltaGas is an energy infrastructure business with a focus on natural gas, power
and regulated utilities. AltaGas creates value by acquiring, growing and
optimizing its energy infrastructure, including a focus on clean energy sources.
For more information visit: www.altagas.ca.


This news release contains forward-looking statements. When used in this news
release, the words "may", "would", "could", "will", "intend", "plan",
"anticipate", "believe", "seek", "propose", "estimate", "expect", and similar
expressions, as they relate to AltaGas or an affiliate of AltaGas, are intended
to identify forward-looking statements. In particular, this news release
contains forward-looking statements with respect to, among other things,
business objectives, expected growth, results of operations, performance,
business projects and opportunities and financial results including expected
contributions by the Acquisition to AltaGas earnings and cash flow per share;
the ability to leverage Petrogas assets and capture synergies; anticipated
enhanced ability to meet customer needs; anticipated access to additional NGL
markets with the optimization of AltaGas' facilities; and anticipated enhanced
CNG and LNG trucking. These statements involve known and unknown risks,
uncertainties and other factors that may cause actual results or events to
differ materially from those anticipated in such forward-looking statements.
Such statements reflect AltaGas' current views with respect to future events
based on certain material factors and assumptions and are subject to certain
risks and uncertainties, including without limitation, changes in market,
competition, governmental or regulatory developments, general economic
conditions and other factors set out in AltaGas' public disclosure documents.
Many factors could cause AltaGas' actual results, performance or achievements to
vary from those described in this news release, including without limitation
those listed above. These factors should not be construed as exhaustive. Should
one or more of these risks or uncertainties materialize, or should assumptions
underlying forward-looking statements prove incorrect, actual results may vary
materially from those described in this news release as intended, planned,
anticipated, believed, sought, proposed, estimated or expected, and such
forward-looking statements included in, or incorporated by reference in this
news release, should not be unduly relied upon. Such statements speak only as of
the date of this news release. AltaGas does not intend, and does not assume any
obligation, to update these forward-looking statements. The forward-looking
statements contained in this news release are expressly qualified by this
cautionary statement.


FOR FURTHER INFORMATION PLEASE CONTACT: 
AltaGas Ltd.
Investment Community
1 877 691 7199
investor.relations@altagas.ca


AltaGas Ltd.
Media
(403) 691 9873
media.relations@altagas.ca
www.altagas.ca

AltaGas (TSX:ALA.PR.U)
Gráfica de Acción Histórica
De May 2024 a Jun 2024

AltaGas (TSX:ALA.PR.U)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024