Copy ALA PR Update 1
11:29 AM EDT, 08/31/2023 (MT Newswires) -- Tidewater Midstream and Infrastructure Ltd. (TWM.TO) on Thursday said it has agreed to sell its Pipestone natural gas plant, Pipestone expansion project, Dimsdale natural gas storage facility and associated gathering and other infrastructure to AltaGas Ltd. (ALA.TO) for $650 million.
The deal includes the assumption of power leases at Pipestone and is subject to the completion of customary conditions. The transaction is also subject to a positive final investment decision (FID) on the Pipestone expansion project.
To facilitate reaching FID, AltaGas and Tidewater have agreed to form a new joint venture to advance the final steps to develop and construct the project. The joint venture terms will allow the parties to continue to collaborate on the Pipestone expansion project even if the transaction does not proceed.
The consideration will consist of $325 million in cash and $325 million in AltaGas common shares. Tidewater stands to receive about 12.5 million AltaGas common shares.
Tidewater plans to use net proceeds from the sale for general corporate purposes, including repayment of amounts on its senior credit facility.
Tidewater and AltaGas' directors have unanimously approved the deal, which is expected to close in the fourth quarter.
Separately, Tidewater announced changes to its executive leadership team. Jeff Scott will serve as executive vice president of downstream commercial, Matt Millard as executive vice president of downstream operations, Jared Gurevitch as executive vice president of midstream commercial, John McGougan as executive vice president of midstream operations, and Shawn Heaney as executive vice president of planning and strategy.
Executives Jarvis Williams, Brent Booth, Terrence Dumont and Jeff Ketch are stepping down from their respective roles.
Tidewater at last look gained 6.2% in early Thursday trading.
Price: 1.03, Change: +0.06, Percent Change: +6.19