AltaGas Ltd. and WGL Holdings, Inc. announced today the entering into of a definitive agreement and plan of merger for AltaGas to acquire WGL in an all cash transaction valued at approximately C$8.4 billion.
WGL is a diversified energy infrastructure company that is the sole shareholder of Washington Gas Light Company, a regulated natural gas utility headquartered in Washington D.C., which has a growing contracted midstream franchise in the Marcellus/Utica, and also owns non-regulated contracted power and energy marketing businesses throughout the United States.
The transaction enhances AltaGas's position as a leading, diversified North American energy infrastructure company, with assets of approximately C$22 billion. AltaGas will have, on a combined basis, natural gas rate base assets of C$4.5 billion and over C$7 billion of identified capital investment opportunities identified through to 2021 in highly attractive clean energy lines of business.
AltaGas has been advancing its infrastructure in Northeast B.C, including the new Townsend gas processing facility, the North Pine natural gas liquids facility, and plans for a $180-million gas processing facility, separation train, and rail terminal.
--Daily Oil Bulletin, Staff