AltaGas Monetizes Non-Core U.S. Transportation and Storage Enterprise and Considerably Advances Deleveraging Plans

Sale Proceeds, Mixed with Robust First Quarter Outcomes from the U.S. Transportation and Storage Enterprise, and an Related Discount in Working Capital Necessities, Will Drive Roughly $485 Million of Debt Compensation

CALGARY, AB, April 23, 2021 /CNW/ – AltaGas Ltd. (“AltaGas” or the “Firm”) (TSX: ALA) immediately introduced the sale and shutting of a transaction to monetize the corporate’s U.S. Transportation and Storage enterprise to an entity owned by Six One Commodities LLC and Vega Power Companions, Ltd. for complete money proceeds of roughly $344 million (US$275 million). The non-core asset sale represents one other vital step in advancing AltaGas’ technique of re-focusing the corporate on its two core companies, whereas persevering with to de-risk and de-lever the platform and cut back the volatility of money flows.

Randy Crawford, President and Chief Govt Officer commented, “We’re happy to advance our strategic plan of focusing, de-leveraging and de-risking our Firm. The monetization of the U.S. Transportation and Storage enterprise positions us to speed up the timeline of attending to our goal of being beneath 5.0x Internet Debt to normalized EBITDA1. Particularly, we consider we’re positioned to scale back our Internet Debt to normalized EBITDA ratio by as much as 0.5x over the course of 2021 relative to the run-rate stage we exited 2020. Ongoing leverage discount will stay a high precedence as we proceed to develop the enterprise. We’re additionally lucky to be promoting the U.S. Transportation and Storage enterprise after a robust monetary contribution from the phase within the first quarter associated to important weather-driven pure fuel value volatility. This created an incremental deleveraging occasion that can profit all of our stakeholders.”

AltaGas’ complete near-term deleveraging is estimated at roughly $485 million and is comprised of three fundamental elements, together with: 1) $344 million of money proceeds that had been obtained via the divestiture; 2) the diminished working and different capital necessities of the U.S. Transportation and Storage enterprise that can now not be required submit the sale; and three) sturdy profitability from the U.S. Transportation and Storage enterprise in the course of the first quarter as a result of sturdy pure fuel costs and volatility seen within the quarter. The third part of the deleveraging will probably be recorded in AltaGas’ Q1 2021 monetary statements which are scheduled to be launched on April 29, 2021, earlier than market open. The closing and efficient date of the transaction is immediately with AltaGas persevering with to document the working outcomes of the enterprise in the course of the first quarter and roughly the primary three weeks of the second quarter of 2021.

AltaGas’ U.S. Transportation and Storage enterprise was a smaller part of the Firm’s operations and included plenty of pure fuel transportation and storage contracts, together with roughly 31 Bcf of leased and managed storage capability. The sale doesn’t embody AltaGas’ 10% fairness stake within the Mountain Valley Pipeline or the Firm’s 5.1% fairness stake within the Mountain Valley Pipeline Southgate enlargement. The enterprise has been reported as a part of AltaGas’ Midstream operations since closing the WGL acquisition in 2018 and didn’t have any materials overlap with AltaGas’ U.S. Utilities platform. The enterprise produced US$21.2 million of normalized EBITDA in 2020 and US$16.2 million of common annual normalized EBITDA over the trailing five-year interval from 2016 to 2020. The enterprise has fluctuating working capital necessities all year long, which generally peak heading into the winter after which hit seasonal lows in March or April, following massive pure fuel stock gross sales over the winter heating season with inventories then being replenished throughout spring and fall shoulder seasons.

AltaGas continues to execute on the Firm’s technique and leverage its distinctive Utilities and Midstream companies which are each well-positioned to ship sturdy and visual progress. As has been publicly messaged prior to now, AltaGas can also be centered on continued deleveraging and will take into account different incremental non-core asset gross sales, ought to the suitable alternatives and market situations be obtainable. Within the years forward, AltaGas will stay acutely centered on working long-life infrastructure belongings that present resilient and sturdy worth for the Firm’s stakeholders. AltaGas is concentrated on delivering sturdy and rising EPS and FFO per share that helps regular dividend progress and gives the chance for capital appreciation.



Non-GAAP measure; see dialogue within the advisories of this information launch and reconciliation to US GAAP monetary measures proven in AltaGas’ Administration’s Dialogue and Evaluation (MD&A) as at and for the interval ended December 31, 2020, which is out there on

About AltaGas

AltaGas is a number one North American vitality infrastructure firm that connects NGLs and pure fuel to home and world markets. The Firm operates a diversified, low-risk, high-growth Utilities and Midstream enterprise that’s centered on delivering resilient and sturdy worth for its stakeholders. For extra info go to: or attain out to one of many following:

Jon Morrison
Senior Vice President, Investor Relations & Company Improvement

Adam McKnight
Director, Investor Relations

Media Inquiries


This information launch comprises forward-looking info (forward-looking statements). Phrases similar to “might”, “can”, “would”, “may”, “ought to”, “will”, “intend”, “plan”, “anticipate”, “consider”, “goal”, “search”, “suggest”, “ponder”, “estimate”, “focus”, “attempt”, “forecast”, “count on”, “venture”, “goal”, “potential”, “goal”, “proceed”, “outlook”, “imaginative and prescient”, “alternative” and related expressions suggesting future occasions or future efficiency, as they relate to the Company or any affiliate of the Company, are supposed to establish forward-looking statements. Specifically, this information launch comprises forward-looking statements with respect to, amongst different issues, technique, anticipated progress, debt discount, alternatives and monetary outcomes. Particularly, such forward-looking statements included on this doc embody, however are usually not restricted to, statements with respect to the next: expectation of recognized components driving roughly $485 million of debt reimbursement; acceleration of the timeline of attending to our goal of being beneath 5.0x Internet Debt to normalized EBITDA; perception that Internet Debt to normalized EBITDA ratio could be diminished by upwards of 0.5x over the course of 2021 relative to the run-rate stage on the finish of 2020; anticipated disclosure of first quarter outcomes from U.S. Transport and Storage enterprise on April 29, 2021; continued deal with deleveraging; and potential for non-core monetization gross sales. These statements contain identified and unknown dangers, uncertainties and different components that will trigger precise outcomes, occasions and achievements to vary materially from these expressed or implied by such statements. Such statements replicate AltaGas’ present expectations, estimates, and projections primarily based on sure materials components and assumptions on the time the assertion was made. Materials assumptions embody: the U.S./Canadian greenback trade price, financing initiatives, the efficiency of the underlying enterprise; entry to capital; acquisition and divestiture actions; taxes; operational bills; and returns on investments.

AltaGas’ forward-looking statements are topic to sure dangers and uncertainties which may trigger outcomes or occasions to vary from present expectations, together with, with out limitation: danger associated to working dangers; regulatory dangers; climate-related dangers, together with carbon pricing; adjustments in legislation; capital market and liquidity dangers; normal financial situations; inner credit score danger; international trade danger; debt financing, refinancing, and debt service danger; rates of interest; progress technique danger; and the opposite components mentioned underneath the heading “Danger Elements” within the Company’s Annual Data Type for the 12 months ended December 31, 2020 and set out in AltaGas’ different steady disclosure paperwork.

Many components may trigger AltaGas’ or any specific enterprise phase’s precise outcomes, efficiency or achievements to range from these described on this press launch, together with, with out limitation, these listed above and the assumptions upon which they’re primarily based proving incorrect. These components shouldn’t be construed as exhaustive. Ought to a number of of those dangers or uncertainties materialize, or ought to assumptions underlying forward-looking statements show incorrect, precise outcomes might range materially from these described on this information launch as supposed, deliberate, anticipated, believed, sought, proposed, estimated, forecasted, anticipated, projected or focused and such forward-looking statements included on this information launch, shouldn’t be unduly relied upon. The influence of anyone assumption, danger, uncertainty, or different issue on a specific forward-looking assertion can’t be decided with certainty as a result of they’re interdependent and AltaGas’ future selections and actions will rely on administration’s evaluation of all info on the related time. Such statements converse solely as of the date of this information launch. AltaGas doesn’t intend, and doesn’t assume any obligation, to replace these forward-looking statements besides as required by legislation. The forward-looking statements contained on this information launch are expressly certified by these cautionary statements.

Monetary outlook info contained on this information launch about potential monetary efficiency, monetary place, or money flows relies on assumptions about future occasions, together with financial situations and proposed programs of motion, primarily based on AltaGas administration’s (Administration) evaluation of the related info presently obtainable. Readers are cautioned that such monetary outlook info contained on this information launch shouldn’t be used for functions aside from for which it’s disclosed herein.

Further info regarding AltaGas, together with its quarterly and annual MD&A and Consolidated Monetary Statements, AIF, and press releases can be found via AltaGas’ web site at or via SEDAR at

Non-GAAP Monetary Measures

This information launch comprises references to sure monetary measures that should not have a standardized that means prescribed by US GAAP and might not be akin to related measures introduced by different entities. The non-GAAP measures and their reconciliation to US GAAP monetary measures are proven in AltaGas’ Administration’s Dialogue and Evaluation (MD&A) as at and for the interval ended December 31, 2020. These non-GAAP measures present further info that administration believes is significant relating to AltaGas’ operational efficiency, liquidity and capability to fund dividends, capital expenditures, and different investing actions. Readers are cautioned that these non-GAAP measures shouldn’t be construed as alternate options to different measures of monetary efficiency calculated in accordance with US GAAP.

EBITDA is a measure of AltaGas’ working profitability previous to how enterprise actions are financed, belongings are amortized, or earnings are taxed. EBITDA is calculated from the Consolidated Statements of Earnings utilizing web revenue (loss) after taxes adjusted for pre-tax depreciation and amortization, curiosity expense, and revenue taxes. Normalized EBITDA contains further changes for transaction prices (recoveries) associated to acquisitions and tendencies, merger dedication prices (recoveries) as a result of a change in timing associated to sure WGL merger commitments, unrealized losses (beneficial properties) on danger administration contracts, non-controlling curiosity of sure investments to which HLBV accounting is utilized, losses on investments, beneficial properties on sale of belongings, restructuring prices, dilution loss and different changes to fairness revenue associated to the acquisition of Petrogas, acquire on re-measurement of beforehand held fairness funding in AIJVLP, COVID-19 associated prices, provisions on belongings, provisions on investments accounted for by the fairness methodology, distributed technology asset associated funding tax credit, international trade losses (beneficial properties), and accretion bills associated to asset retirement obligations. Along with the dilution loss, the opposite changes to fairness revenue primarily included quantities associated to severance, transaction prices, and impairment losses associated to the acquisition of Petrogas. COVID-19 associated prices normalized in 2020 had been primarily comprised of credit score losses that had been incremental and instantly attributable to the COVID-19 pandemic and prices incurred to assist distant work preparations. AltaGas presents normalized EBITDA as a supplemental measure. Normalized EBITDA is utilized by Administration to boost the understanding of AltaGas’ earnings over intervals. The metric is continuously utilized by analysts and traders within the analysis of entities throughout the trade because it excludes gadgets that may range considerably between entities relying on the accounting insurance policies chosen, the ebook worth of belongings, and the capital construction.

Funds from operations is used to help Administration and traders in analyzing the liquidity of the Company. Administration makes use of this measure to know the power to generate funds for capital investments, debt reimbursement, dividend funds, and different investing actions. Funds from operations are calculated from the Consolidated Statements of Money Flows and are outlined as money from operations, adjusted for web adjustments in working belongings and liabilities and expenditures incurred to settle asset retirement obligations

Internet debt is utilized by the company to observe its capital construction and financing necessities. Additionally it is a measure of the Company’s general monetary energy. Internet debt is outlined as short-term debt (excluding third-party venture financing obtained for the development of sure vitality administration providers initiatives), plus present and long-term parts of long-term debt, much less money and money equivalents.

SOURCE AltaGas Ltd.


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