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AltaGas Power Holdings to buy WF Energy Holdings for $642 million

Staff writer |
AltaGas said it and its indirect wholly owned subsidiary AltaGas Power Holdings (U.S.) entered into an agreement with Highstar Capital IV and certain of its affiliates to acquire GWF Energy Holdings.

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GWF Energy Holdings holds a portfolio of three natural gas-fired electrical generation facilities in northern California totalling 523 MW, including the 330 MW Tracy facility, the 97 MW Hanford facility and the 96 MW Henrietta facility). The purchase price is $642 million, subject to certain closing adjustments.

The Acquisition is expected to add approximately $95 million in incremental contracted EBITDA per year, to be over 5 percent accretive to cash flow per share and to be modestly accretive to earnings per share in 2016, the first full year of ownership.

AltaGas also announced today an increase of $0.005 per share in its common share dividend to $0.165 on a monthly basis, $1.98 per share annualized.

The increase, along with the previous increase announced in April, results in a 12 percent increase to AltaGas' common share dividend in 2015. The dividend increase will be effective for the October dividend, payable in November.

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