AltaGas has entered into a definitive agreement with Tidewater Midstream and Infrastructure to acquire Pipestone natural gas-processing plants and natural gas-storage facility for $650 million.
Under the deal, AltaGas will acquire the Pipestone Natural Gas Processing Plant Phase I and Phase II expansion projects, the adjacent Dimsdale Natural Gas Storage Facility, the Pipestone condensate truck-in/truck-out terminal, and the associated gathering pipeline systems required to operate these assets for total consideration of $650 million, or approximately 7.2 times the estimated run-rate normalized EBITDA, inclusive of synergies and the incremental capital that AltaGas will deploy to complete the Pipestone Phase II development project.
In exchange, AltaGas will pay $325 million in cash and will issue about 12.5 million AltaGas common shares, with each share priced at $26.07.
“The acquisition is consistent with AltaGas’ long-term strategy and provides us the oppo
