AltaGas Ltd. Acquires Interest in 75 Mmcf/d Gas Plant and Announces New Pipeline to JEEP

CALGARY, ALBERTA--(Marketwire - June 19, 2012) - AltaGas Ltd. ("AltaGas") (TSX:ALA) (TSX:ALA.PR.A) (TSX:ALA.PR.U) (TSX:ALA.R) announced today that it has entered into an agreement with Quatro Resources Inc. (Quatro) to acquire 50 percent interest of Quatro's Midstream Assets, including its 87 percent interest in the 75 Mmcf/d Gilby Gas Plant for approximately $20 million. The acquisition is expected to close in third quarter 2012.

In addition, AltaGas will construct a 70-kilometre pipeline to connect the Gilby Gas Plant and AltaGas' 30 Mmcf/d Sylvan Lake Gas Plant to AltaGas' deep-cut, turbo expander facility at the Joffre Ethane Extraction Plant ("JEEP"). Increased volumes processed at the plant are expected to fully utilize JEEP's excess capacity.

"This project is another example of AltaGas' ability to integrate key assets and leverage existing capacity", said David Cornhill, Chairman and CEO of AltaGas. "We will be able to process gas in an area that is rich in liquids and short on deep-cut processing capacity."

The construction of the pipeline into West-Central Alberta will provide producers in the Hoadley Glauconite and Duvernay resource plays with increased recovery of natural gas liquids ("NGL"), improve their recoverable barrels of oil equivalent ("BOEs") and increase the value received for their ethane and other NGL products. The pipeline project is subject to customary conditions. The project is expected to cost approximately $100 million and be completed by late 2013.

The volumes committed to the pipeline and JEEP are underpinned by a long-term fee-for-service contract. This contract is consistent with AltaGas' strategy to increase stable earnings across all its businesses. AltaGas sells approximately 11 percent of the liquids it produces at spot prices and in 2012 has hedged approximately 80 percent at an average frac spread of $35/Bbl. For the remainder of 2012, approximately five percent of AltaGas' expected EBITDA is exposed to commodity prices. "As we add the SEMCO utilities in third quarter, we continue to grow our earnings and cash flow with a portfolio of long-life stable assets," said Mr. Cornhill.

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 renewable 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. 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.