Why is this happening now?? What's going on in the gas spaceAltaGas to Buy Pipestone, Dimsdale Natural Gas Assets for C$650M 08/31/2023 06:36 AM ET
By Robb M. Stewart
Energy infrastructure company AltaGas struck with a deal with Tidewater Midstream & Infrastructure to buy Pipestone natural gas processing plants and a storage facility for 650 million Canadian dollars ($480.3 million) in a move to bolster its position in Alberta's resource-rich Montney region.
AltaGas said Thursday it has a definitive agreement to acquire the Pipestone phase I processing plant and phase II expansion project and the adjacent Dimsdale natural gas storage facility, as well as the Pipestone condensate truck-in-truck-out terminal and associated gathering pipeline systems needed to operate the assets.
The purchase price reflects about 7.2 times the estimated run-rate normalized earnings before interest, taxes, depreciation and amortization, and is expected to boost per-share earnings by 5% from 2025 onward, AltaGas said.
The deal is contingent on Tidewater and AltaGas making a final investment decision to go ahead with the second phase of the Pipestone project, and the companies said they will create a new joint venture to advance the final steps needed to develop and construct the project.
AltaGas said the C$650 million it will pay will be made up of C$325 million in cash and the issuance of about 12.5 million of its shares.
Tidewater said the sale of the assets will unlock value for its shareholders and strengthen its balance sheet, with the proceeds to be used for purposes including the repayment of its senior credit facility.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
August 31, 2023 06:36 ET (10:36 GMT)
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