AltaGas Announces Closing of Increased Interest in Petrogas; Continues to Advance Global Export Strategy
AltaGas closes strategic acquisition of increased ownership in Petrogas; remains focused on providing access to premium global LPG markets and reducing Asian carbon intensity while growing earnings per share and creating earnings durability for shareholders.
CALGARY, AB, Dec. 16, 2020 /CNW/ - AltaGas Ltd. ("AltaGas or the Company") (TSX: ALA) is pleased to announce that it has closed the previously announced acquisition of an additional 37 percent equity interest in Petrogas Energy Corp. ("Petrogas") for total consideration of approximately $715 million. AltaGas' indirect ownership in Petrogas increases to approximately 74% with Idemitsu Kosan Co., Ltd. ("Idemitsu") indirectly owning the remaining approximate 26%. The transaction is expected to be immediately accretive to earnings and cash flow per share and is expected to be accretive to AltaGas' credit metrics on a run-rate basis.
AltaGas is a leading North American energy infrastructure company that connects NGLs and natural gas to domestic and global markets. The company operates a diversified, low-risk, high-growth Utilities and Midstream business that is focused on delivering resilient and durable value for its stakeholders. For more information visit www.altagas.ca or reach out to:
Senior Vice President, Investor Relations & Corporate Development
Director, Investor Relations
This news release contains forward-looking information (forward-looking statements). Words such as: "growing", "expected", "reducing", "creating" and similar expressions suggesting future events or future performance, as they relate to the Corporation or any affiliate of the Corporation, 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. Specifically, such forward-looking statements included in this document include, but are not limited to, statements with respect to the following: advancement of AltaGas' global export strategy; and expected accretive effect on AltaGas' credit metrics, earnings per share and cash flow per share. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results, events and achievements to differ materially from those expressed or implied by such statements. Such statements reflect AltaGas' current expectations, estimates, and projections based on certain material factors and assumptions at the time the statement was made. Material assumptions include: expansion capacity of the Ferndale facility, number of ships and export levels from the Ferndale facility in 2021, current forward curves, terms of Petrogas' underlying contracts, effective tax rates, the U.S./Canadian dollar exchange rate, the impact of the COVID-19 pandemic, butane and propane price differentials, the performance of the businesses, and commodity prices. AltaGas' forward-looking statements are subject to certain risks and uncertainties which could cause results or events to differ from current expectations, including, without limitation those factors discussed under the heading "Risk Factors" in the Corporation's Annual Information Form for the year ended December 31, 2019 (AIF) and set out in AltaGas' other continuous disclosure documents.
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SOURCE AltaGas Ltd.