AltaGas Acquires 25 Percent Strategic Interest in North American Integrated Midstream Company

AltaGas Acquires 25 Percent Strategic Interest in North American Integrated 
Midstream Company 
CALGARY, ALBERTA -- (Marketwired) -- 09/12/13 -- AltaGas Ltd.
("AltaGas") (TSX:ALA)(TSX:ALA.PR.A)(TSX:ALA.PR.U) announced today
that it has entered into an agreement (the "Purchase Agreement") to
acquire a 25 percent strategic interest in Petrogas Energy Corp.
("Petrogas"), a privately held leading North American integrated
midstream company, for approximately 2.8 million shares of AltaGas
Ltd. priced at $35.69, the 20-day volume weighted average price, and
cash (the "Acquisition"). The Acquisition is expected to be
meaningfully accretive to earnings and cash flow per share. 
"Our investment in Petrogas provides strategic alignment with a major
North American integrated midstream service provider and brings a
unique opportunity to optimize and expand our current midstream
assets, increasing our ability to move NGL's and crude oil to meet
market demands. It also brings key infrastructure needed to develop
our LPG export initiative," said David Cornhill, Chairman and CEO of
AltaGas. "Petrogas is a strong fit with our strategy of adding assets
that provide energy solutions for our customers." 
Petrogas, with annual sales of over $2.7 billion and approximately
$750 million in total assets, owns and operates extensive midstream
facilities along with a logistics network consisting of over 1,500
rail cars and 24 rail and truck terminals. More specifically,
Petrogas has major terminal and storage facilities with rail access
in key energy hubs including Fort Saskatchewan, Alberta, Sarnia,
Ontario, Griffith, Indiana, Conway, Kansas and Mt. Belvieu, Texas.
Combined, Petrogas touches over 100,000 bbls/d of crude oil and other
products, can store over 4 million barrels through owned and leased
storage capacity for crude and other products and has throughput
capacity for crude blending in excess of 25,000 bbls/d. 
AltaGas and Petrogas have agreed to enter into a NGL marketing
arrangement whereby Petrogas will purchase the NGL produced for
AltaGas' account at AltaGas-owned processing facilities. The
arrangement is expected to increase AltaGas' access to various NGL
end use markets and improve optimization of AltaGas' natural gas
processing facilities. 
The Acq
uisition is expected to close on October 1, 2013, and is
subject to customary regulatory approvals, including the approval of
the Toronto Stock Exchange. AltaGas will continue to maintain its
strong balance sheet and financial discipline and its commitment to
maintaining an investment grade credit rating. 
As part of the Purchase Agreement, AltaGas has retained a conditional
option to purchase directly or indirectly up to an additional 25
percent interest in Petrogas in 2013. TD Securities Inc. is acting as
exclusive financial adviser to AltaGas with respect to the proposed
Acquisition.  
Investment Highlights 


 
--  The Acquisition provides a unique opportunity for AltaGas to leverage
    its infrastructure assets and capture synergies across business
    activities, unlocking value in our NGL assets; 
    
--  The strategic location of AltaGas' NGL facilities combined with
    Petrogas' market expertise and infrastructure provide the ability to
    move NGL in and out of storage and transport to market to meet customer
    demand; 
    
--  The Acquisition supports AltaGas' LPG export initiative and is expected
    to provide access to additional NGL markets across North America and
    internationally; 
    
--  The Acquisition enhances CNG and LNG trucking opportunities; 
    
--  The Acquisition provides expanded growth opportunities for AltaGas; and 
    
--  Petrogas' assets are located in Canada and throughout key energy markets
    in the United States, providing a good geographic fit with AltaGas'
    current portfolio of assets. 

 
About AltaGas Ltd. 
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. 
This news release contains forward-looking statements. When used in
this news release, the words "may", "would", "could", "will",
"intend", "plan", "anticipate", "believe", "seek", "propose",
"estimate", "expect", and similar expressions, as they relate to
AltaGas or an affiliate of AltaGas, 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 including expected contributions by the Acquisition to
AltaGas earnings and cash flow per share; the ability to leverage
Petrogas assets and capture synergies; anticipated enhanced ability
to meet customer needs; anticipated access to additional NGL markets
with the optimization of AltaGas' facilities; and anticipated
enhanced CNG and LNG trucking. These statements involve known and
unknown risks, uncertainties and other factors that may cause actual
results or events to differ materially from those anticipated in such
forward-looking statements. Such statements reflect AltaGas' current
views with respect to future events based on certain material factors
and assumptions and are subject to certain risks and uncertainties,
including without limitation, changes in market, competition,
governmental or regulatory developments, general economic conditions
and other factors set out in AltaGas' public disclosure documents.
Many factors could cause AltaGas' actual results, performance or
achievements to vary from those described in this news release,
including without limitation those listed above. These factors should
not be construed as exhaustive. Should one or more of these risks or
uncertainties materialize, or should assumptions underlying
forward-looking statements prove incorrect, actual results may vary
materially from those described in this news release as intended,
planned, anticipated, believed, sought, proposed, estimated or
expected, and such forward-looking statements included in, or
incorporated by reference in this news release, should not be unduly
relied upon. Such statements speak only as of the date of this news
release. AltaGas does not intend, and does not assume any obligation,
to update these forward-looking statements. The forward-looking
statements contained in this news release are expressly qualified by
this cautionary statement.
Contacts:
AltaGas Ltd.
Investment Community
1 877 691 7199
investor.relations@altagas.ca 
AltaGas Ltd.
Media
(403) 691 9873
media.relations@altagas.ca
www.altagas.ca
 
 
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