AltaGas Ltd.
TSX : ALA
TSX : ALA.PR.A
TSX : ALA.PR.U

AltaGas Ltd.

October 24, 2013 09:00 ET

AltaGas Increases Ownership in Petrogas Through Its Energy Export Joint Venture

CALGARY, ALBERTA--(Marketwired - Oct. 24, 2013) - AltaGas Ltd. ("AltaGas") (TSX:ALA)(TSX:ALA.PR.A)(TSX:ALA.PR.U) announced today that it will increase its effective ownership of Petrogas Energy Corp. ("Petrogas") to 33 1/3 percent. AltaGas plans to transfer its current 25 percent ownership to the AltaGas Idemitsu Joint Venture Limited Partnership ("Partnership"). The Partnership will acquire an additional 41 2/3 percent interest in Petrogas. As a result of the transaction, Petrogas will be owned one-third by each of AltaGas, Idemitsu Kosan Co., Ltd. ("Idemitsu"), and its current shareholder.

In January 2013 AltaGas and Idemitsu announced plans to pursue LPG and LNG export opportunities from Canada's West Coast to Asia. LPG exports could begin as early as 2016. Petrogas' extensive logistics network consists of over 1,500 rail cars and 24 rail and truck terminals, which provides the key infrastructure as well as supply logistics and marketing expertise required to pursue LPG export opportunities. Idemitsu is a global leader in the supply of energy, petroleum, lubricants and petrochemical products and services to the people of Japan. Included in its suite of businesses, Idemitsu owns four refineries with capacity of 640,000 bbls/d and processes one million tonnes of ethylene per year and is 51 percent owner of Astomos Energy Corporation, one of the world's largest shippers and marketers of LPG. AltaGas is experienced in constructing large scale energy projects on-time and on-budget and over the past five years has constructed over $1.2 billion of clean energy projects in British Columbia.

"We are excited about the capabilities all three organizations bring to this international energy business," said David Cornhill, Chairman and CEO of AltaGas. "AltaGas and Petrogas bring key infrastructure assets and marketing expertise which, combined with Idemitsu's global leadership in energy supply and access to markets in Asia, greatly enhance our ability to move LPG exports and other opportunities forward."

No additional funding by AltaGas is required to increase its effective ownership from 25 percent to one-third. AltaGas expects the acquisition to be accretive to earnings per share by approximately $0.10 in 2015. AltaGas' one-third interest in Petrogas will be acquired for approximately $440 million.

The acquisition is subject to customary regulatory approvals, including the Competition Act, Hart Scott Rodino Antitrust Improvement Act of 1976, and Investment Canada Act, and is expected to close in first quarter 2014.

TD Securities Inc. acted as the exclusive financial advisor to the Partnership.

About AltaGas Ltd.

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, business objectives, expected growth, results of operations, performance, business projects and opportunities and financial results including anticipated completion of the transactions contemplated above, expected closing date of such transactions and receipt of all required regulatory approvals, expected contributions by Petrogas to AltaGas' earnings per share; the ability to leverage Petrogas assets and capture synergies; anticipated enhanced ability to meet customer needs; anticipated access to additional NGL markets with the optimization of AltaGas' facilities; and anticipated timing of the commencement of LPG export activities. 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.

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