AltaGas exceeds its 2019 asset sales target with approximately $2.2 billion announced or completed sales to-date
CALGARY, Sept. 30, 2019 /CNW/ – AltaGas Ltd. (AltaGas) (TSX: ALA) announced today that it has entered into a definitive agreement for the sale of its indirect, non-operating interest in the Central Penn Pipeline (Central Penn) held by its subsidiary WGL Midstream, Inc. (WGL Midstream) to Meade Pipeline Investment, LLC, a subsidiary of NextEra Energy Partners, LP. Total gross proceeds for WGL Midstream’s interest is approximately $870 million (US$657 million). AltaGas’ estimated 2019 cash flow and normalized EBITDA for the Central Penn Pipeline is approximately US$49 million and US$39 million, respectively. The transaction is expected to close in the fourth quarter of 2019 and is subject to customary closing conditions and regulatory approvals.
‘We have exceeded our asset sales guidance range for this year, and we are well positioned to focus on executing against our unique value proposition,” said Mr. Randy Crawford, President and Chief Executive Officer of AltaGas. “In 2019, we have increased our financial flexibility and delevered our balance sheet. Operationally, our volumes at RIPET are at targeted levels, and we are focused on achieving more timely recovery of investments at our Utilities. As we enter 2020 in a stronger position, we remain firmly focused on the future and unlocking the significant organic growth potential of our Midstream and Utilities assets,” continued Mr. Crawford.
AltaGas has now announced or completed approximately $2.2 billion in asset sales, which exceeds the top end of the previously announced $1.5 – $2.0 billion asset sales program targeted for 2019, including the sale of its portfolio of U.S. distributed generation assets for $940 million (US$720 million) which closed in September and the sale of its interest in the Stonewall Gas Gathering System in May for $379 million (US$280 million).
Central Penn is a FERC-regulated, 185-mile pipeline that originates in Susquehanna County, Pennsylvania, and extends to Lancaster County, Pennsylvania. It is an integral part of the larger Atlantic Sunrise project operated by The Williams Companies through Transcontinental Gas Pipe Line Company, LLC (Transco). The pipeline went into service in October 2018 and has the capacity to deliver up to approximately 1.7 Bcf/d of natural gas from the northeastern Marcellus producing area to markets in the mid-Atlantic and Southeastern regions of the United States.
In February 2014, WGL Midstream and certain partners formed Meade Pipeline Co LLC (Meade). Meade (39 percent) and Transco (61 percent) have joint ownership of Central Penn. WGL Midstream holds a 55 percent interest in Meade (21 percent indirect interest in Central Penn).
AltaGas is a leading North American energy infrastructure company with a focus on regulated Utilities, Midstream and Power. AltaGas creates value by growing and optimizing its energy infrastructure, including a focus on clean energy sources. For more information visit: www.altagas.ca.