09:58 AM EDT, 05/26/2022 (MT Newswires) -- AltaGas Ltd. (ALA.TO) said Thursday that it will sell its Alaskan utility assets to TriSummit Utilities Inc. for US$800 million, with closing expected no later than the first quarter of 2023.
The sale will include AltaGas' 100% interest in ENSTAR Natural Gas, the Alaska Pipeline Co., the Company's 65% indirect interest in the Cook Inlet Natural Gas Storage Alaska, and other ancillary unregulated operations.
ENSTAR and CINGSA will continue to operate as standalone utilities and remain headquartered in Alaska while all ENSTAR employees will join TriSummit concurrent with closing.
"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," AltaGas President and CEO Randy Crawford said.
"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."
Following the sale, AltaGas said all of its remaining utility assets will be located in the eastern US, including Maryland, Virginia, Michigan and the District of Columbia.
AltaGas said its 2022 guidance remains unchanged, including its normalized EPS guidance range of $1.80 to $1.95, compared to its full-year 2021 normalized EPS of $1.78.
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