CALGARY, ALBERTA--(Marketwired - May 26, 2016) -
NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
AltaGas Ltd. ("AltaGas") (TSX:ALA) announced today that it has entered into an agreement with a syndicate of underwriters
co-led by TD Securities Inc., RBC Capital Markets and BMO Capital Markets to issue 13,350,000 common shares (the "Common
Shares"), on a bought deal basis, at an issue price of $30.00 per Common Share (the "Offering Price"), for total gross proceeds
of approximately $400 million (the "Offering"). The net proceeds resulting from the Offering will be used to partially fund
AltaGas' capital growth program, reduce bank indebtedness and for general corporate purposes.
AltaGas has granted the underwriters an over-allotment option to purchase, in whole or part, up to an additional 1,335,000
Common Shares at the Offering Price to cover over-allotments, if any, for a period of 30 days following the closing of the
Offering. If the over-allotment option is exercised in full, gross proceeds from the Offering will be approximately $440
million.
The Common Shares will be offered in all provinces of Canada by way of a supplement under AltaGas' base shelf prospectus dated
August 10, 2015. The Offering is subject to the receipt of all necessary regulatory and stock exchange approvals. Closing of the
Offering is anticipated to occur on or about June 6, 2016.
Update on AltaGas' Energy Export and Northeast BC Strategy
In connection with AltaGas' capital growth opportunities, AltaGas continues to make significant progress on its energy export
and northeast British Columbia gas strategy. As previously announced, AltaGas has begun the formal environmental review process
for the proposed Ridley Island Propane Export Terminal, filed an application with the National Energy Board for a 25 year propane
export license and entered into a memorandum of understanding with Astomos Energy Corporation for the sale and purchase of
liquefied petroleum gas from such terminal. AltaGas is also progressing with developing a liquids separation and handling
facility, the North Pine Project, to be located 45 km northwest of Fort St. John, British Columbia. The North Pine Project
will be connected to AltaGas' existing infrastructure in the region, including the proposed Ridley Island Propane Export
Terminal, and will serve producers in the Montney region. AltaGas expects to reach final investment decisions in 2016 for both
the North Pine Project and the Ridley Island Propane Export Terminal.
This news release does not constitute an offer to sell securities, nor is it a solicitation of an offer to buy securities, in
any jurisdiction. All sales will be made through registered securities dealers in jurisdictions where the Offering has been
qualified for distribution. The Common Shares offered are not, and will not be, registered under the securities laws of the
United States of America, nor any State thereof, and may not be sold in the United States of America absent registration in the
United States or the availability of an exemption from such registration.
All references to dollar amounts contained herein are to Canadian dollars unless otherwise indicated.
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, the closing of the Offering, the use of proceeds
of the Offering, the sale and purchase of liquefied petroleum gas from Ridley Island Propane Export Terminal, the location and
service area of the North Pine Project and connection capability of North Pine Project to Ridley Island Propane Export Terminal,
timing of final investment decisions, business objectives, expected growth, and business projects and opportunities. 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.