Divestiture Will Provide Cash Proceeds to Fund Long-term Growth Opportunities and Continue to Strengthen Balance Sheet, While Concentrating AltaGas’ Utilities Platform in the High Growth Eastern U.S.
AltaGas Ltd. (“AltaGas” or the “Company”) (TSX: ALA) today announced an agreement to sell its Alaskan Utilities to TriSummit Utilities Inc. (“TriSummit”) for US$800 million (approximately CAD$1.025 billion ). The sale price represents 2.3x 2021 rate base and 29x 2021 allowed earnings. The transaction is anticipated to close no later than the first quarter of 2023 and will be subject to customary closing conditions, including State regulatory approvals.
“We are pleased to have the opportunity to monetize the Alaskan Utilities at a compelling valuation” said Randy Crawford , President and Chief Executive Officer of AltaGas. “We believe the valuation reflects the strong long-term performance of the Alaskan platform, which has a long history of delivering safe, reliable and affordable energy to its customers, operating with an industry-leading safety record, and driving positive outcomes for all of its stakeholders. We believe that TriSummit will be an excellent steward to the Alaskan Utilities’ stakeholders in the next chapter of its corporate life, along with the continued direction from the highly capable Alaskan senior leadership team and the dedicated employees that will be joining TriSummit post-closing. The transaction provides AltaGas the ability to recycle capital to fund higher growth investments into our Utilities infrastructure upgrade programs and our North American West Coast exports and Midstream platform while simultaneously continuing to strengthen our balance sheet.”
“We are excited to announce this transaction and look forward to welcoming the ENSTAR team to TriSummit,” said Jared Green , President and Chief Executive Officer of TriSummit. “The dedication and culture of ENSTAR, which is very similar to TriSummit, has provided them with a solid track record and makes this an excellent fit for TriSummit. Our top priority is ensuring a smooth transition, maintaining the strong relationships ENSTAR has in its communities, and to fully support ENSTAR as they continue to provide customers with safe, reliable and affordable service.”