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ALTAGAS ENTERS AGREEMENT TO ACQUIRE PIPESTONE NATURAL GAS Processing PLANTS AND NATURAL GAS STORAGE FACILITY
ALTAGAS ENTERS AGREEMENT TO ACQUIRE PIPESTONE NATURAL GAS Processing PLANTS AND NATURAL GAS STORA...
About this update from Altagas Ltd.
[{"type":"text","content":"\n \n \n \n ALTAGAS ENTERS AGREEMENT TO ACQUIRE PIPESTONE NATURAL GAS Processing PLANTS AND NATURAL GAS STORAGE FACILITY\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntaj{\nTEXT-ALIGN: JUSTIFY\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n Transaction Strengthens AltaGas' Midstream Value Chain in the Alberta Montney; De-risks Midstream Commercial Profile; Financially and Leverage Accretive\n \n \n \n \n CALGARY, AB\n \n \n ,\n \n \n Aug. 31, 2023\n \n \n /CNW/ -\n \n AltaGas Ltd. (\"AltaGas\" or the \"Company\")\n \n (TSX: ALA) has entered into a definitive agreement with Tidewater Midstream and Infrastructure Ltd. (\"Tidewater\") to acquire: 1) the Pipestone Natural Gas Processing Plant Phase I and Phase II expansion project (individually, \"Pipestone Phase I\" and \"Pipestone Phase II\"); 2) the adjacent Dimsdale Natural Gas Storage Facility (\"Dimsdale Facility\"); 3) the\n \n Pipestone\n \n condensate truck-in/truck-out terminal; and 4) the associated gathering pipeline systems required to operate these assets (collectively, the \"Pipestone Assets\") for total consideration of\n \n $650 million\n \n , or approximately 7.2x estimated run-rate normalized EBITDA, inclusive of synergies and the incremental capital that AltaGas will deploy to complete the Pipestone Phase II development project.\n \n \n \n KEY INVESTMENT AND FINANCIAL HIGHLIGHTS\n \n \n \n The\n \n Pipestone\n \n transaction strengthens AltaGas' midstream value chain through an expanded footprint in the Alberta Montney and provides meaningful long-term Liquified Petroleum Gas (LPG) supply for our global exports' platform. The transaction is expected to be five percent EPS accretive in 2025 forward while being 0.1x net debt to normalized EBITDA credit accretive in 2025 forward.\n \n \n Key highlights from the transaction include:\n \n \n \n 1.\n \n \n Strategic Fit:\n \n \n \n \n Supports AltaGas' long-term strategy by adding long-life infrastructure assets with meaningful financial accretion.\n \n \n Strategic and complementary assets strengthen AltaGas' footprint in the Alberta Montney with low-...