News

AltaGas Income Trust prices trust unit offering

June 03, 2004


/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER U.S. WIRE SERVICES/

CALGARY--(CCNMatthews - June 3) - AltaGas Income Trust ("AltaGas") 
(TSE:ALA.UN) announced today that it has filed a final short form prospectus 
with the securities commissions in each of the provinces of Canada with 
respect to the issue of 4,300,000 Trust Units at a price of $18.70 per Trust 
Unit to raise gross proceeds of $80,410,000. The syndicate of Underwriters is 
lead by RBC Capital Markets and Clarus Securities Inc., and includes BMO 
Nesbitt Burns Inc., Scotia Capital Inc., CIBC World Markets Inc., National 
Bank Financial Inc., Canaccord Capital Corporation and Peters & Co. Limited. 
AltaGas has granted the Underwriters an over-allotment option to purchase up 
to an additional 430,000 trust units (10 percent of the issue), exercisable 
on the same terms, in whole or in part, within 30 days following the date of 
closing. The offering is anticipated to close on June 10, 2004.

The net proceeds attributable to the sale of Trust Units will be used to 
reduce bank indebtedness, which may be redrawn and used for general corporate 
purposes including AltaGas' ongoing capital program, the funding of the 
Edmonton Ethane Extraction Plant acquisition announced on March 18, 2004 and 
future acquisitions. As a result of this issue and the predictable free cash 
flow generated by AltaGas' diversified asset base, AltaGas will be well 
positioned to continue to pursue attractive investment opportunities as they 
arise.

AltaGas moves energy from its source to the end user, adding value through 
the process. The Trust has assets totaling almost $950 million and a market 
capitalization of approximately $900 million. Its steadily expanding asset 
base today includes natural gas gathering and processing facilities, 
interests in ethane and natural gas liquids extraction plants, and 
transmission pipelines. AltaGas distributes natural gas to Alberta customers 
through AltaGas Utilities Inc., to customers in the Northwest Territories 
through the Ikhil Gas Project and distributes gas in Nova Scotia through its 
interest in Heritage Gas Limited. The Trust provides energy services to 
customers, including marketing of natural gas and natural gas liquids and 
sale of power from its power purchase based arrangements.

AltaGas' Trust Units are listed on the Toronto Stock Exchange under the 
symbol ALA.UN. The Trust is included in the S&P/TSX Capped Income Trust Index 
and the S&P/TSX Capped Energy Trust Index.

This news release does not constitute an offer to sell securities, nor is it 
a solicitation of an offer to buy securities, in any jurisdiction. All sales 
will be made through registered securities dealers in jurisdictions where the 
offering has been qualified for distribution. The Trust Units offered are 
not, and will not be, registered under the securities laws of the United 
States of America, nor any State thereof and may not be sold in the United 
States of America absent registration in the United States or the 
availability of an exemption from such registration.

When used in this press release, the words "anticipate", "estimate", and 
similar expressions are intended to identify forward-looking statements. Such 
statements are subject to certain risks, uncertainties and assumptions that 
could cause actual results to differ materially from those contemplated in 
the forward looking statements. These risks and uncertainties include 
operating performance, regulatory and environmental issues, weather and 
economic conditions, competition and financing availability. For additional 
information on these and other factors see the reports filed by AltaGas with 
Canadian securities regulators. AltaGas disclaims any intention or obligation 
to update or revise any forward looking information whether as a result of 
new information or future event.

 


Media:
Dennis Dawson
(403) 691-7534
Email: dennis_dawson@altagas.ca


or


Investment Community:
Marilyn Pfaefflin
(403) 691-7540
Email: marilyn_pfaefflin@altagas.ca
Website: www.altagas.ca