Midstream companies have taken the downturn better than other sectors of Canada's oil and industry, but AltaGas has kicked up some serious dust in the last year, making deals, raising money, building things and, of course, culminating in its $8.4 billion acquisition this week of WGL Holdings, a diversified U.S. energy infrastructure company.
The foundation for all this activity is the midstreamer’s western Canada business, helping producers develop the region's world-class natural gas reserves by investing in gas processing and export infrastructure.
The company's BC. strategy began in 2014 when AltaGas entered into a 15-year alliance with Painted Pony Petroleum. In 2015, it completed its $430-million integrated Townsend midstream complex in northeast B.C. ahead of schedule and under budget.
In 2016 things really heated up:
January
AltaGas signs sublease agreements with Ridley Terminals Inc. for the development of its proposed Ridley Island Propane Export Terminal, a 1.2 million tonne per year export facility planned for the Prince Rupert, B.C., area.
February
AltaGas enters into an agreement to divest certain non-core natural gas gathering and processing assets to Tidewater Midstream and Infrastructure Ltd. It receives $30 million cash and 43.7 million common shares of Tidewater.
April
Issues $350 million senior unsecured medium-term notes that mature in 2026. The net proceeds mostly pay down debt.
April
David Cornhill steps down as chief executive officer and is succeeded by David Harris (Cornhill, founder of the company, continues to serve as chairman of the board of directors).
May
AltaGas enters into a memorandum of understanding with Astomos Energy Corporation for the sale and purchase of liquefied petroleum gas from the proposed Ridley Island Propane Export Terminal.
June
Closes a public offering of 14,685,000 Common Shares at $30 per share for total of approximately $440 million.
July
AltaGas and the Halfway River First Nation sign a 10-year relationship agreement that provides the framework for consultation, financial benefits, community investment, employment opportunities and support for a wildlife study in the First Nation’s traditional territory.
September
Opens its Townsend Facility north of Fort St. John.
December
Receives regulatory approval for the doubling the size of its Townsend Facility to 396 MMcf/d and to retrofit the existing 198 MMcf/d shallow-cut Townsend Facility to a deep-cut facility in the future.
December
Announces a 2017 capital budget of up to $550 million focusing on growth projects including the doubling at Townsend.
January 2017
AltaGas reaches a much-anticipated positive final investment decision on its Ridley Island Propane Export Terminal, after receiving approval from federal regulators.
Later in the month, AltaGas announces $2.5 billion subscription receipt offering made up of $2.1 billion bought deal and $400 million private placement, and its purchase of WGL Holdings, Inc. for $8.4 billion.
Upon the closing of the transaction, AltaGas' assets are estimated to be approximately C$22 billion. The company says it is expected to have a diversified growth portfolio of over C$7 billion in low-risk investment opportunities throughout its three business segments through to 2021.
