Mr. Jon Morrison reports

ALTAGAS CLOSES ACQUISITION OF ALBERTA MONTNEY INFRASTRUCTURE ASSETS AND DECLARES POSITIVE FID ON PIPESTONE PHASE II

AltaGas Ltd. has closed the previously announced acquisition of the Pipestone assets, including: 1) the Pipestone natural gas processing plant phase I and phase II expansion project; 2) the adjacent Dimsdale natural gas storage facility; 3) the Pipestone condensate truck-in/truck-out terminal; and 4) the associated gathering pipeline systems (collectively, the Pipestone assets) from Tidewater Midstream and Infrastructure Ltd. Following the completion of key derisking milestones, AltaGas has also declared a positive final investment decision (FID) on the Pipestone phase II expansion project.

Pipestone phase II fully contracted; construction to begin in 2024

The Pipestone phase II expansion project is now 100-per-cent contracted under long-term take-or-pay agreements with a combination of marquee independent and investment grade producers. All Pipestone phase II customers who are existing Pipestone phase I customers have also agreed to multiyear contract extensions, further improving the long-term commercial profile of the Pipestone assets.

With inclusion of these new agreements, the Pipestone acquisition is strongly risk accretive to AltaGas with the company's take-or-pay and fee-for-service mid-stream EBITDA (earnings before interest, taxes, depreciation and amortization) mix set to increase by an estimated 6 per cent with a commensurate decrease in commodity exposed EBITDA, once Pipestone phase II comes on line. In aggregate, more than 90 per cent of the Pipestone assets' normalized EBITDA is expected to come from take-or-pay or fee-for-service based contracts.

Given recent engineering and procurement derisking steps taken, AltaGas is excited to move forward with sanctioning Pipestone phase II. The expansion project will be constructed on a fixed price turnkey basis for the majority of the capital costs and will deliver critical gas processing and liquids handling capacity in the Pipestone region, which is one of the fastest-growing liquids-rich natural gas developments in Canada.

Transaction strengthens Altagas's footprint in liquids-rich Alberta Montney

The Pipestone assets strengthen AltaGas's mid-stream value chain through an expanded footprint in the Alberta Montney and provide meaningful long-term liquified petroleum gas (LPG) supply for the company's global exports platform. The transaction is expected to be 5-per-cent EPS (earnings per share) accretive and 0.1 times net debt to normalized EBITDA accretive, once Pipestone II comes on line.

"Closing this transaction and reaching a positive FID on Pipestone phase II significantly strengthens our position in one of Canada's most prolific resource plays," said Vern Yu, AltaGas's president and chief executive officer. "This acquisition is consistent with our long-term strategy through adding long-life infrastructure assets with highly contracted take-or-pay and fee-for-service revenue. The transaction also diversifies our customer base, brings meaningful long-term LPG supply to our global exports platform, and provides long-term growth through the Pipestone phase II expansion and has the potential for additional expansion phases."

AltaGas welcomes its new customers, employees, contractors and other stakeholders as part of this acquisition and looks forward to working together. The company is excited to continue to support the robust growth in the Alberta Montney with key gas processing, liquids handling and gas storage assets, all with global LPG connectivity that will facilitate the best outcomes for the Canadian energy industry.

About Altagas Ltd.

AltaGas is a leading North American infrastructure company that connects customers and markets to affordable and reliable sources of energy. The company operates a diversified, lower-risk, high-growth utilities and mid-stream business that is focused on delivering resilient and durable value for its stakeholders. The company's mission is to improve quality of life by safely and reliably connecting customers to affordable sources of energy for today and tomorrow.

From wellhead to tidewater, AltaGas's mid-stream business is focused on providing its customers with safe and reliable service and connectivity that facilitates the best outcomes for their businesses. This includes global market access for North American LPGs, which provides North American producers and aggregators with the best netbacks for LPGs while delivering diversity of supply and stronger energy security to its downstream customers in Asia.

Throughout AltaGas's operations, the company is playing a vital role within the larger energy ecosystem that keeps the global economy moving forward and is powering the possible within our society, and in a safe, reliable and affordable manner.

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