UPDATE: AltaGas Down 3% As Announces Expansion of US Power Business With US$515 Mln Natural Gas Fired Plant Buy
AltaGas Ltd. (ALA.TO) announced today that its indirect wholly owned subsidiary AltaGas Power Holdings (U.S.) Inc. has entered into a purchase and sale agreement with affiliates of LS Power Equity Advisors, LLC to acquire Blythe Energy, LLC, which owns a 507 MW natural gas-fired combined cycle plant, associated major spare parts, and a related 230 kV 67-mile electric transmission line in Southern California, for US$515 million.
"The Acquisition of Blythe is an important addition to our power business. The power purchase agreement provides stable earnings and cash flow and with the infrastructure in place today, the facility is well positioned to access two premium power markets in California and Arizona in the future," said David Cornhill, Chairman and CEO of AltaGas. "The addition of natural gas-fired power generation to our energy infrastructure portfolio in the US provides another platform for growth to meet the increasing demand for clean sources of energy."
The Acquisition is expected to be accretive to earnings and cash flow per share in 2014, the first full year of ownership, and is expected to add approximately $50 million in incremental contracted EBITDA per year.
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