AltaGas Provides Year-end Update on Global Exports Tolling and Commercial Contracting
AltaGas Provides Year-end Update on Global Exports Tolling and Commercial Contracting |
| [23-December-2024] |
CALGARY, AB, Dec. 23, 2024 /CNW/ - AltaGas Ltd. ("AltaGas" or the "Company") (TSX: ALA) is pleased to provide a year-end update on global exports tolling and commercial contracting activities. One of the Company's strategic priorities is to advance commercial de-risking of our Midstream business with increased global exports tolling and additional long-term commercial contracting across the value chain. AltaGas has made significant progress on this strategic priority in 2024 and exits the year on a very strong footing. In December, the Company executed several commercial contracts that will provide long-term liquified petroleum gas ("LPG") supply and tolling contracts for its global exports' platform. This includes contracts with existing customers and the addition of new customers. Some of these contracts will take effect in 2027 with LPG volumes that will be added to Canadian supply while others will take near-term effect with export volumes initially flowing through the Ridely Island Propane Export Terminal ("RIPET") and moving to the Ridely Island Energy Export Facility ("REEF") once the facility comes online. AltaGas continues to advance additional long-term tolling arrangements and believes it will be positioned achieve its long-term REEF contracting targets in early 2025. As previously disclosed, AltaGas is in commercial discussions for the more than 100 percent of REEF phase I capacity. Once AltaGas has achieved its long-term tolling target, the Company will strategically evaluate adding additional tolling contracts while maintaining reserve capacity to deliver on shorter-term contracting opportunities that provide open market access for our diverse customer base and deliver on AltaGas' merchant export operations. AltaGas' West Coast Export Advantage is Robust The long-term advantage of AltaGas' west coast export capabilities remains robust. The current RIPET advantage for Canadian producers to export to Asia is approximately US$8/Bbl higher than selling domestically or to major U.S. LPG markets. The importance of the Canadian energy industry to diversify end market exposure for LPGs continues to grow as the U.S. oversupply compounds and reaffirms the benefit of its customers linking more Canadian barrels to premium Asian demand markets. Construction activity at REEF continues to progress. Piling activities continued through December with temporary and permanent piles being added while uplands work is advancing as per schedule. Storage tank fabrication is progressing offshore with steel cutting more than 75 percent complete while rail construction is ongoing, and REEF will provide AltaGas and its customers material long-term logistical advantages. Global Exports Contracts Build on Recent Contracts Across Midstream Value Chain Recent global exports contracting awards build on the strong commercial success that AltaGas has delivered across other parts of the Midstream value chain in 2024. This includes two long-term agreements with a large investment grade international energy company in Northeastern B.C. for 100 Mmcf/d of gas processing capacity at the Townsend facility, along with associated liquids handling and fractionation services, and the extension of contract term with a large Canadian investment grade producer at the Pipestone I gas processing facility in the Alberta Montney for an additional five years. The latter of which includes gas processing, liquids handling and marketing services. AltaGas looks forward to continuing to execute additional commercial contracts in the new year and continuing to connect customers and markets to affordable and reliable sources of energy while building a diversified, lower-risk, high-growth energy infrastructure business that compounds long-term value for its stakeholders. ABOUT ALTAGAS 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 energy infrastructure business that is focused on delivering stable and growing value for its stakeholders. For more information visit www.altagas.ca or reach out to one of the following: Jon Morrison Aaron Swanson Investor Inquiries Media Inquiries FORWARD-LOOKING INFORMATION This news release contains forward-looking information (forward-looking statements). Words such as "guidance", "may", "can", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "aim", "seek", "propose", "contemplate", "estimate", "focus", "strive", "forecast", "expect", "project", "target", "potential", "objective", "continue", "outlook", "vision", "opportunity" and similar expressions suggesting future events or future performance, as they relate to the Company or any affiliate of the Company, are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, business objectives, expected growth, results of operations, performance, business projects and opportunities and financial results. Specifically, such forward-looking statements included in this document include, but are not limited to, statements with respect to the following: anticipated benefits of AltaGas' commercial contracts for LPG supply and tolling volumes through its global exports' platform; anticipated effective date of these contracts and the facilities such contracts will flow through; the status of AltaGas' continuing negotiations for long-term arrangements; AltaGas' ability to meet its long-term REEF contracting targets and the timing thereof; AltaGas' strategy for evaluating additional tolling contracts and the anticipated benefits therefrom; AltaGas' west coast exports advantage; the importance of the Canadian energy industry in diversifying end market exposure for LPGs; the anticipated benefits of linking Canadian barrels to Asian market demands; progress on construction activity at REEF including, among other things, storage tank fabrication and rail construction and the anticipated benefits therefrom; and AltaGas intention to execute on additional commercial contracts in 2025, continuing to connect customers and markets to affordable and reliable energy sources and building a diversified, lower risk, high-growth energy infrastructure business compounding long-term value for its stakeholders. Such statements reflect AltaGas' current expectations, estimates, and projections based on certain material factors and assumptions at the time the statement was made. Material assumptions include: effective tax rate; anticipated timing of asset sale and acquisition closings; the U.S/Canadian dollar exchange rate; inflation; interest rates; credit ratings;regulatory approvals and policies; expected commodity supply, demand and pricing; volumes and rates; propane price differentials; degree day variance from normal; pension discount rate; financing initiatives, the performance of the businesses underlying each sector; impacts of the hedging program; weather; frac spread; access to capital; future operating and capital costs; timing and receipt of regulatory approvals; seasonality; planned and unplanned plant outages; timing of in-service dates of new projects and acquisition and divestiture activities; taxes; operational expenses; returns on investments; dividend levels; and transaction costs. AltaGas' forward-looking statements are subject to certain risks and uncertainties which could cause results or events to differ from current expectations, including, without limitation: health and safety risks; operating risks; natural gas supply risk; volume throughput; service interruptions; transportation of petroleum products; market risk; inflation; general economic conditions; cybersecurity, information, and control systems; climate-related risks; environmental regulation risks; regulatory risks; litigation; changes in law; Indigenous and treaty rights; dependence on certain partners; political uncertainty and civil unrest; risks related to conflict, including the conflicts in Eastern Europe and the Middle East; decommissioning, abandonment and reclamation costs; reputation risk; weather data; capital market and liquidity risks; interest rates; internal credit risk; foreign exchange risk; debt financing, refinancing, and debt service risk; counterparty and supplier risk; technical systems and processes incidents; growth strategy risk; construction and development; underinsured and uninsured losses; impact of competition in AltaGas' businesses; counterparty credit risk; composition risk; collateral; rep agreements; market value of the Common Shares and other securities; variability of dividends; potential sales of additional shares; labor relations; key personnel; risk management costs and limitations; commitments associated with regulatory approvals for the acquisition of WGL; cost of providing retirement plan benefits; failure of service providers; risks related to pandemics, epidemics or disease outbreaks and the other factors discussed under the heading "Risk Factors" in the Corporation's Annual Information Form (AIF) for the year ended December 31, 2023 and set out in AltaGas' other continuous disclosure documents. Many factors could cause AltaGas' or any particular business segment's actual results, performance or achievements to vary from those described in this press release, including, without limitation, those listed above and the assumptions upon which they are based proving incorrect. These factors should not be construed as exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this news release as intended, planned, anticipated, believed, sought, proposed, estimated, forecasted, expected, projected or targeted and such forward-looking statements included in this news release, should not be unduly relied upon. The impact of any one assumption, risk, uncertainty, or other factor on a particular forward-looking statement cannot be determined with certainty because they are interdependent and AltaGas' future decisions and actions will depend on management's assessment of all information at the relevant time. Such statements speak only as of the date of this news release. AltaGas does not intend, and does not assume any obligation, to update these forward-looking statements except as required by law. The forward-looking statements contained in this news release are expressly qualified by these cautionary statements. Financial outlook information contained in this news release about prospective financial performance, financial position, or cash flows is based on assumptions about future events, including economic conditions and proposed courses of action, based on AltaGas management's (Management) assessment of the relevant information currently available. Readers are cautioned that such financial outlook information contained in this news release should not be used for purposes other than for which it is disclosed herein. Additional information relating to AltaGas, including its quarterly and annual Management's Discussion and Analysis (MD&A) and Consolidated Financial Statements, AIF, and press releases are available through AltaGas' website at www.altagas.ca or through SEDAR+ at www.sedarplus.ca. SOURCE AltaGas Ltd. | ||
Company Codes: Toronto:ALA |
