News

Enbridge realizes gain on sale of AltaGas investment

July 21, 2004


/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE U.S./

CALGARY--(CCNMatthews - July 21) - AltaGas Income Trust ("AltaGas") announced 
that Enbridge Inc. has sold 11,650,000 Trust Units of AltaGas to a group of 
Canadian underwriters at a price of $19.75. This sale reduces Enbridge's 
interest in AltaGas from approximately 36% to 13%. The sale, excluding the 
over-allotment, will realize net proceeds to Enbridge of approximately $217 
million and will close on or about August 10.

In addition, the underwriters have been granted an over-allotment option to 
purchase an additional 1,747,500 Trust Units at the issue price of $19.75 per 
unit at any time up to 30 days after closing of the offering. Should the 
over-allotment option be taken up Enbridge's interest in AltaGas would be 
reduced to under 10%.

"We are very pleased with the strong market response and successful sale of 
our units by Enbridge," said David Cornhill, Chairman and Chief Executive 
Officer of AltaGas. "Since Enbridge made its initial investment in AltaGas 
five years ago we have tripled our asset base and grown our market 
capitalization by six times to over one billion dollars. Enbridge has been a 
good investor and received very good returns on their investment. We are 
supportive of their disposition and are pleased with the opportunity to 
realize our full growth potential and deliver substantial unitholder value to 
an expanded unitholder base."

The underwriting syndicate was led by Scotia Capital Inc., CIBC World Markets 
Inc. and RBC Capital Markets, and included BMO Nesbitt Burns Inc., National 
Bank Financial Inc., TD Securities Inc., Clarus Securities Inc., HSBC 
Securities (Canada) Inc., Canaccord Capital Corporation, FirstEnergy Capital 
Corp., and Peters & Co. Limited.

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. Our 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 or a solicitation of 
an offer to buy the Trust Units in any jurisdiction. The Trust Units offered 
have not been, and will not be, registered under the United States Securities 
Act of 1933, as amended, and may not be offered or sold within the United 
States of America.

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.

 


Media 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