AltaGas Ltd. (AltaGas) has announced that after careful consideration, David Cornhill, Founder of AltaGas and Chairman, has elected to step down on April 1, 2019 from the Chairman position. New Chair Pentti Karkkainen has been appointed by the Board of Directors, effective April 2. Mr. Cornhill will remain on the Board, ensuring an orderly transition and continuity.
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AltaGas Ltd. announced the appointment of Randall (Randy) Crawford as Chief Executive Officer and member of the Board of Directors, effective December 10, 2018. Mr. Crawford assumes this role from David Cornhill and Phillip Knoll who will continue as interim co-CEOs until the effective date. Mr. Crawford will join the AltaGas senior leadership team in Calgary, Alberta, and will lead the next stages of the company's ongoing evolution.
AltaGas Ltd. reported third quarter results and discussed its framework for a balanced financial strategy to take advantage of the capital investment and growth opportunities in Gas and U.S. Utilities; surface the value of its asset base; and improve its credit metrics. AltaGas plans to provide a further update later in the fourth quarter on its business, operational and financial outlook, capital plan and overall funding plan for 2019.
AltaGas Ltd. has entered into definitive agreements for the sale of non-core midstream and power assets in Canada and power assets in the United States, for total proceeds of approximately $560 million. The proceeds from the sale of these assets will be used to repay a significant portion of the bridge facility related to the acquisition of WGL Holdings Inc.
AltaGas Ltd. has entered into definitive agreements with Kelt Exploration (LNG) Ltd. to provide an energy infrastructure solution for the liquids-rich Inga Montney development located in northeast British Columbia. The Commercial Arrangements underpin the expansion of the Townsend Complex, including the addition of a 198 MMcf per day of C3+ deep cut gas processing capacity. The additional natural gas liquids will increase utilization in AltaGas' existing liquids pipelines, position the company well for an expansion of the North Pine fractionator to 20,000 bbls per day - which already has regulatory approval, and provide additional propane supply to the Ridley Island Propane Export Terminal.
AltaGas Ltd. reported results in line with its expectations and remains firmly focused on achieving its operational and financial objectives for 2018. With normalized EBITDA of $166 million, and normalized funds from operations of $121 million, AltaGas remains well positioned to fund its capital program through internally generated cash flow, its dividend reinvestment program, and normal course borrowings under its credit facilities. AltaGas' net income applicable to common shares for the quarter was $1 million ($0.01 per share), with normalized net income of $23 million or $0.13 per share.
AltaGas Ltd. President and CEO David Harris has resigned from his position, effective immediately, the company has announced. Mr. Harris has also resigned from his position on the AltaGas Board. The Board of Directors of AltaGas and Mr. Harris have mutually agreed to his resignation due to a complaint under review by the Board. This complaint is not related to AltaGas' strategy, operations or financial reporting.
Birchcliff Energy and AltaGas have entered into a definitive agreement for a long-term natural gas processing arrangement at AltaGas' deep-cut sour gas processing facility located in Gordondale, Alberta. The new Processing Arrangement will be effective from January 1, 2018 and will replace the parties existing Gordondale processing arrangement. Under the Processing Arrangement, Birchcliff is being provided with up to 120 MMcf/d of natural gas processing on a firm-service basis, and Birchcliff's take-or-pay obligation is 100 MMcf/d. The term of the Processing Arrangement is for at least 15 years, subject to extension in accordance with the terms of the agreement.
Continuing a pattern of aggressive growth, Calgary's AltaGas is moving to expand its markets in the eastern United States by acquiring Washington, D.C.-based WGL Holdings in a transaction valued at CAD$8.4 billion.