AltaGas makes additional investment in Taylor
CALGARY--(CCNMatthews - Aug. 19) - AltaGas Income Trust (TSE:ALA.UN) today
announced it has acquired an additional 1,605,000 limited partnership units
("Units") of Taylor NGL Limited Partnership ("Taylor") from Taylor's equity
offering of 8,025,000 units at a price of $6.60 per unit.
With this $10.6 million investment, AltaGas holds 3,477,735 units of Taylor
increasing its ownership interest to 18.9 percent from approximately 18.5
percent of the total Taylor units outstanding. This acquisition fits AltaGas'
strategy of making infrastructure-based investments that provide stable and
David Cornhill, Chairman and Chief Executive Officer of AltaGas, said "We
made our initial investment in Taylor in 2003. We are very pleased with this
investment and the opportunity to maintain our ownership interest and
strengthen our existing business relationship."
AltaGas and Taylor each own a 50 per cent interest in the Joffre Ethane
Extraction Plant, a facility capable of processing 250 Mmcf/d of natural gas
and producing 10,400 bbls/d of ethane and natural gas liquids.
AltaGas is financing the purchase through existing bank facilities. This
purchase was executed for investment purposes only and not with the purpose
of influencing the control or direction of Taylor. AltaGas has no present
intention of purchasing any additional securities of Taylor, but AltaGas
reserves the right to do so depending on the price and availability of such
securities, future developments in the business of Taylor and economic and
AltaGas moves energy from its source to the end user, adding value through
the process. The Trust has consolidated assets totalling almost $950 million
and a market capitalization of approximately $1 billion. 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.
When used in this news 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.