AltaGas acquires remaining Petrogas stake for C$285M

AltaGas Ltd. is now sole owner of Petrogas Energy Corp. after buying the 25.97% stake held by a Canadian subsidiary of Idemitsu Kosan Co. Ltd. for total cash considerations of C$285 million.

The transaction closed July 5.

AltaGas funded the deal with proceeds from the sale of its non-operated interest in the Aitken Creek gas processing plant in April, as well as with short-term debt from its existing credit facilities, which have approximately $3 billion of liquidity, the company said in a July 5 news release.

The company expects the deal to be accretive to EPS by reducing the net income that is applicable to noncontrolling interests. It estimates a full-year run-rate accretion of more than 10 cents per share.

"Idemitsu will continue to represent an important partnership for AltaGas as a global exports offtake customer through the Astomos Energy Joint Venture," the company said. "AltaGas and Idemitsu will also continue to evaluate future opportunities and collaborate on prospective energy transition projects as both organizations pursue various lower-carbon initiatives over the long-term."

AltaGas last boosted its ownership in Petrogas when it bought Sam Holdings Corp.'s 37% stake in 2020.

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