AltaGas Reaches an Agreement to Sell Distributed Generation Assets for $940 Million
Continued successful execution of asset sale program further strengthens financial position and sharpens focus on core businesses
CALGARY, July 22, 2019 – AltaGas Ltd. (AltaGas) (TSX: ALA) announced today that it has entered into a definitive agreement for the sale of its portfolio of U.S. distributed generation assets held by its subsidiaries WGL Energy Systems, Inc. and WGSW, Inc., to TerraForm Power, Inc., an affiliate of Brookfield Asset Management, for total gross proceeds of approximately $940 million (US$720 million), subject to customary closing conditions. The transaction is expected to close in the third quarter of 2019.
“We are firmly focused on enhancing the value of our core asset footprint where we see the most attractive opportunities for long-term, stable earnings growth,” said Randy Crawford, President and Chief Executive Officer of AltaGas. “With today’s announcement, we are very close to achieving our 2019 asset sales target. We continue to execute against our near-term priorities, and I am confident that our 2019 funding and business plan is on track.”
With this transaction, AltaGas has announced or completed approximately $1.3 billion of its $1.5 – $2.0 billion asset sales program targeted for 2019. Earlier this year, the Company completed the sale of its interest in the Stonewall Gas Gathering System for total gross proceeds of approximately $379 million (US$280 million).
The portfolio of U.S. distributed generation assets consists of 322 megawatts (MW) of contracted distributed generation assets located in 20 states and in the District of Columbia. Included in the portfolio are 291 MW of commercial and industrial solar comprised of both wholly owned assets and interests in tax equity partnerships, 10 MW of fuel cells and 21 MW of residential solar assets.
AltaGas is a leading North American energy infrastructure company with a focus on regulated Utilities, Midstream and Power. AltaGas creates value by growing and optimizing its energy infrastructure, including a focus on clean energy sources. For more information visit: www.altagas.ca.