Oil & Gas Product News Logo

AltaGas closes $9 billion acquisition of WGL

AltaGas closes $9 billion acquisition of WGL

Company info

1700, 355 - 4th Avenue, S.W.
Calgary, AB
CA, T2P 0J1


Phone number:

Read more

AltaGas Ltd. announced the closing of its approximately $9 billion acquisition of WGL Holdings, Inc. (WGL), creating a North American leader in the clean energy economy.  

The combination of AltaGas and WGL supports AltaGas' long-term vision and strategy, and results in a company with an enterprise value of over $17 billion, a presence in over 30 states and provinces, and approximately $6 billion in growth opportunities. AltaGas' diversified and balanced portfolio of assets provides stability and predictability, with approximately 80 percent of 2019 EBITDA expected to come from its regulated gas distribution utilities and medium to long-term contracts underpinning combined Midstream and Power assets. 

"AltaGas is well positioned to strengthen its North American clean energy platform and drive growth across all three business segments, Gas, Power and Utilities, while continuing to deliver exceptional customer service," said David Harris, President and CEO of AltaGas. "The combined forces of AltaGas and WGL will expand clean energy choices for our customers and enhance AltaGas' position as a leading North American clean energy infrastructure company." 

Combined Midstream Business Provides Producers with Global Market Access
AltaGas is now positioned to actively participate in energy export projects on both coasts of North America, and has a presence in the two most prolific gas plays - the Montney and Marcellus.  With its ownership interest in Canada's first west coast propane export terminal - the Ridley Island Propane Export Terminal which is scheduled to be completed in Q1 of 2019 - AltaGas is ideally positioned to move natural gas liquids to premium Asian markets. In the Marcellus region, AltaGas connects low cost producers with high growth U.S. end-use markets and the Cove Point liquefied natural gas (LNG) terminal, which provides access for LNG exports off the east coast. 

Serving approximately 1.8 million customers with a rate base of approximately $4.5 billion, AltaGas' utilities across North America deliver safe, reliable and clean natural gas to homes and businesses in eight jurisdictions.  Washington Gas serves high growth areas driving customer additions, general system betterment and accelerated replacement programs. AltaGas expects to grow its Utility rate base to approximately $7 billion by the end of 2021. 

With a clean power generation footprint covering hydroelectric, wind, small scale solar, biomass, and energy storage, AltaGas sees tremendous opportunity across North America to expand its clean energy offerings. The recent build and performance of the Pomona Energy Storage asset, as well as compelling value realization from the North West British Columbia Hydro Electric facilities, underscore our sustainable development capabilities as AltaGas continues to explore expansion opportunities. 

"We have a clear path for profitable growth in each of our businesses well into the future," continued Mr. Harris.  "We expect to maintain visible dividend growth and balance this with investments in growth opportunities in each of our business segments. Fundamental to all this is also strengthening our balance sheet and maintaining an investment grade credit rating. 

"Ultimately, we believe this approach will provide the greatest value creation for shareholders, while continuing to deliver on our commitments to our customers and other stakeholders," concluded Mr. Harris. 

With the closing of the WGL acquisition, Terry McCallister will be retiring as Chief Executive Officer of WGL after a career that spanned 18 years, including the last nine as Chairman and CEO. AltaGas has committed that at least one current member of the WGL board of directors will be recommended to the AltaGas board of directors. Mr. McCallister has agreed to join the AltaGas board of directors, subject to formal acceptance by the Board. Adrian Chapman will succeed Mr. McCallister as President and Chief Executive Officer of Washington Gas.  Mr. Chapman currently serves as President and Chief Operating Officer and has been a key part of WGL's team for more than 36 years.  

"This transaction is a powerful one," stated Mr. Terry McCallister, Chief Executive Officer of WGL.  "Our combined forces will allow us to capitalize on the important inflection point in the clean energy economy by investing in projects like battery storage and other renewables. The assets and opportunities of the combined companies will provide for our customers' energy needs today and tomorrow."

More from Industry News

NACE International launches enhanced new website to serve members and customers

NACE International, the nonprofit association and leading resource for corrosion expertise and education, has launched its newly redesigned website, www.nace.org. Based on feedback from frequent users and customers, the new site features enhanced tools and search functions, intuitive navigation to help users quickly locate information, and convenient mobile functionality and responsive design.

Sproule launches new Canadian NGL Report

Sproule and GTI have announced a strategic partnership to deliver a jointly developed Canadian natural gas liquids (NGL) report to industry. The report provides an in-depth understanding of the economics of producing natural gas and NGLs. This monthly report leverages the expertise of GTI and Sproule principals to provide insight and analysis on the profitability of natural gas and NGL production at western Canadian gas plants. Included in the report are supply and price forecasts for gas and NGLs, netback analysis by component and a summary of the market dynamics that are affecting pricing along commentary regarding key developments and relevant news. 

New United Electric Controls gas detector offers carbon monoxide monitoring and flexible mounting

United Electric Controls, a producer of safety, alarm and shutdown technology, has announced that it has added carbon monoxide (CO) to the list of gases detected by the latest Vanguard WirelessHART gas detector.  Vanguard version 1.2 also includes new mounting flexibility and a variety of other features that enhance installation, configurability and maintainability.


Get our newsletter

Learn more

Methane emission tracking needs innovative approach, study recommends

Tracking and reducing methane emissions from oil and gas operations needs an innovative approach, according to new report from the C.D. Howe Institute. In "Measuring and Managing the Unknown: Methane Emissions from the Oil and Gas Value Chain" authors Sarah Marie Jordaan and Kate Konschnik highlight the growing pressure on industry and policymakers to address the "unknown" factor in greenhouse gas emissions and propose a regulatory approach that remains open to new technologies.

Schneider Electric joins cybersecurity coalition to affirm role in strengthening digital trust

Dedicated to securing and protecting trust in the digital economy, Schneider Electric today announced its membership in the Cybersecurity Coalition, based in Washington, D.C. As a digital transformation leader operating in more than 100 countries, Schneider Electric continues to work closely with governments, customers, and partners to play a principal role in confronting cybersecurity risks and challenges. By joining the Coalition, Schneider affirms its commitment to being open, transparent, and collaborative so it can better detect, prevent, and respond to cyber threats across its extended enterprise.

Large diameter flex-hone plays critical role in oil and gas industry

In the oil and gas industry, failing to perform ongoing maintenance on equipment can have severe consequences including reducing equipment service life, causing unplanned shutdowns and degrading performance.  Ongoing maintenance is required to remove rust, corrosion and other accumulated material from the inside diameter (ID) of valves, pumps, piping, diesel engines, motors, natural gas compressors, flow meters and other large bore equipment.  Often, this maintenance work is performed in the field under harsh conditions.  


Get Our Magazine

Paper or Digital delivered monthly to you

Subscribe or Renew Learn more

Pembina Pipeline Corporation launches new partnership with Ducks Unlimited Canada

A landmark gift from Pembina Pipeline Corporation is ensuring working landscapes across the Canadian Prairies also work for conservation. Its $1-million investment in Ducks Unlimited Canada's (DUC) Revolving Land Conservation Program will protect approximately 2,000 acres (809 hectares) of important wetland habitat. At the same time, communities across Alberta and Saskatchewan will profit from a host of environmental benefits. 

Uncooled methane gas detection camera from FLIR scales up LDAR programs

FLIR Systems, Inc. has launched the FLIR GF77 Gas Find IR, its first uncooled thermal camera designed for detecting methane. This handheld camera offers inspection professionals the features they need to find potentially dangerous, invisible methane leaks at natural gas power plants, renewable energy production facilities, industrial plants, and other locations along a natural gas supply chain. The GF77 provides methane gas detection capability at roughly half the price of cooled gas inspection thermal cameras, to empower the oil and gas industry to reduce emissions and ensure a safer work environment.

Perkins opens third Regional Logistics Centre in Curitiba, Brazil, to serve South and Central America

Perkins has announced the planned opening of a new Regional Logistics Centre (RLC) in Curitiba, Brazil, to support Original Equipment Manufacturers (OEMs) and Perkins distributors in South and Central America. Co-located with the Perkins engine manufacturing facility in Curitiba, the new RLC - expected to be operational in the first quarter of 2019 - will stock more than 3,000 genuine Perkins parts and provide next day or two-day delivery for most of the region.

Pembina reports record annual results in 2018

Pembina Pipeline Corporation has announced its financial and operating results for the fourth quarter and full year 2018. Pembina delivered strong 2018 financial and operational results leading to record full year earnings and Adjusted EBITDA. These results were largely driven by the full-year contribution from assets included in the acquisition of Veresen Inc. in October 2017 and assets placed into service following a large-scale capital program, driving growing revenue volumes. Highlights for the fourth quarter and full year 2018 include:

  • Fourth quarter and full year earnings of $368 million and $1.3 billion, a 17 percent decrease and 45 percent increase, respectively, over the same periods in 2017;
  • Cash flow from operating activities of $674 million for the fourth quarter and $2.3 billion in 2018, increases of 29 percent and 49 percent, respectively, over the same periods in 2017. Adjusted cash flow from operating activities increased by nine percent and 54 percent to $543 million and $2.2 billion in the fourth quarter and full year 2018, respectively, compared to the same periods in 2017;
  • On a per share (basic) basis, cash flow from operating activities for the fourth quarter and full year 2018 increased by 28 percent and 26 percent, respectively, compared to the same periods in the prior year. On a per share (basic) basis, adjusted cash flow from operating activities for the fourth quarter increased eight percent and 31 percent for the full year compared to the same periods of the prior year;
  • Fourth quarter and full year operating margin of $800 million and $3.2 billion, were seven percent and 64 percent higher, respectively, than the same periods of the prior year; and
  • Fourth quarter and full year Adjusted EBITDA of $715 million and $2.8 billion, representing six percent and 67 percent increases, respectively, over the same periods in 2017.

Get our newsletter

Learn more

NASTT No-Dig Show set for March 17-21 in Chicago

NASTT's 2019 No-Dig Show will take place March 17-21, 2019 at the Donald E. Stephens Convention Center. The conference will host more than 200 exhibitors and over 2,000 attendees who include public works, contractors, engineers, utility owners, damage prevention and industrial facility personnel.

Tourmaline adds reserves through 2018

Tourmaline Oil Corp. is pleased to report very strong total reserve growth, liquids reserve growth and a continued reserve value increase in the current depressed natural gas price environment.  The Company executed on the 2017-2018 plan to concentrate almost entirely on internal EP growth and has produced the best reserve metrics in the Company's 10 year history over the past two years.

Netzsch adds xLC stator adjustment to triple service life of pumps

Another component has been added to the product portfolio of the NEMO progressing cavity pump from NETZSCH: the xLC unit. This unit triples the service life of the pump, particularly when conveying difficult, abrasive media. When wear occurs in the rotor-stator system, the new xLC unit allows the performance of the pump to be re-established by adjusting the preload between the conveyor elements. 

Rockwell, Schlumberger start joint venture to create integrated automation solutions provider

Rockwell Automation, which is dedicated to industrial automation and information, and Schlumberger, a leading provider of technology for reservoir characterization, drilling, production, and processing to the oil and gas industry,  have entered into an agreement to create a new joint venture, Sensia, the first fully integrated digital oilfield automation solutions provider.

GTI quantifies opportunity to produce low-carbon Renewable Natural Gas (RNG) from wood wastes

Today, GTI has released a site-specific engineering design titled Low-Carbon Renewable Natural Gas (RNG) from Wood Wastes. GTI led a team of engineers and scientists to produce a "blueprint" for converting an existing biomass facility into an RNG production site, using the wood waste feedstock and some of the existing infrastructure. A biomass power plant in Stockton, California, was the host site for the engineering design effort. In addition to providing data about the process technologies, the integrated plant, and production costs, the study highlights the many environmental benefits and the low-carbon fuel produced. 


Get Our Magazine

Paper or Digital delivered monthly to you

Subscribe or Renew Learn more