AltaGas has completed the sale of its remaining indirect equity stake of about 55% in its Northwest British Columbia Hydro Electric Facilities for C$1.37bn ($1.04bn).
To date, AltaGas executed asset sales worth $3.8bn ($2.89bn), which it intends to utilize to further de-lever and efficiently fund capital growth.
The hydroelectric facilities included in the sale are 214MW Forrest Kerr, the 17MW Volcano Creek, and the 72MW McLymont Creek which are located in Tahltan First Nation territory. They are supported by three separate 60-year, fully indexed electricity purchase agreements with BC Hydro.
The facilities have been acquired by joint-venture entities controlled by Axium Infrastructure, as manager of Axium Infrastructure Canada II Limited Partnership, and Manulife Financial.
AltaGas president and CEO Randy Crawford said: “The sale of our remaining interest in the facilities marks another financial milestone, which has seen us successfully monetise C$3.8bn in non-core assets since completing the acquisition of WGL in July 2018.
“In addition to unlocking substantial value within our portfolio and enhancing our financial strength, the sale of these assets further sharpens our focus on our Midstream and US utilities businesses, where we see numerous opportunities to drive strong, organic growth.”
The sale is a part of the firm’s asset monetization and funding strategy for the proposed acquisition of US-based WGL Holdings.
In January 2017, the Canadian energy infrastructure company had signed an agreement to acquire US-based WGL Holdings for C$8.4bn ($6.42bn), including debt, in a bid to strength its natural gas distribution business.
WGL Holdings, which owns natural-gas utility Washington Gas, is engaged in providing natural gas, electricity, green power and energy services.
In September 2018, AltaGas signed an agreement to acquire 50% stake in the 210 MMcf/d Aitken Creek natural gas processing plants of Black Swan Energy in Canada.
The Aitken Creek facilities include the existing 110 MMcf/d North Aitken Creek Gas Plant and the 100 MMcf/d Aitken Creek Gas Plant, which is currently under construction.