CALGARY, ALBERTA–(Marketwired – Feb. 2, 2016) – AltaGas Ltd. (“AltaGas”) (TSX:ALA) announced today that its wholly owned subsidiaries, AltaGas Processing Partnership and AltaGas Holdings Inc., have entered into an agreement with Tidewater Midstream and Infrastructure Ltd. (“Tidewater”) to sell AltaGas Northcentral Processing Limited Partnership, a limited partnership containing certain non-core natural gas gathering and processing assets (the “Tidewater Disposition”). Total consideration to be received by AltaGas is $30 million cash and 43.7 million common shares of Tidewater. The assets being sold to Tidewater pursuant to the Tidewater Disposition are located primarily in central and north-central Alberta, total approximately 490 Mmcf/d of gross licensed natural gas processing capacity, and represent less than two percent of AltaGas’ EBITDA for 2016. Subject to the satisfaction or waiver of conditions typical for a transaction of this nature, the Tidewater Disposition is expected to close in the first quarter of 2016.
“The sale of these assets aligns with AltaGas’ strategy to focus on operating and optimizing our larger plants and developing larger scale opportunities as part of our northeast British Columbia strategy,” said David Cornhill, Chairman and CEO of AltaGas. “Moving forward, AltaGas and Tidewater have agreed to work together to identify additional opportunities that could enhance value for each company’s respective producer customers and shareholders.”
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