Fortis Inc. Announces Sale of Aitken Creek Natural Gas Storage Facilities in British Columbia
May 01 2023 - 7:00AM
Fortis Inc. ("Fortis" or the "Corporation") (TSX/NYSE: FTS), a
well-diversified leader in the North American regulated electric
and gas utility industry, today announced FortisBC Holdings Inc.
("FHI") has entered into a definitive share purchase and sale
agreement with a subsidiary of Enbridge Inc. (TSX/NYSE: ENB)
to sell its 93.8% ownership interest in the Aitken
Creek Natural Gas Storage Facility in British Columbia and its 100%
ownership interest in the Aitken Creek North Gas Storage Facility
(collectively "Aitken Creek") for approximately C$400 million,
subject to customary closing conditions and adjustments.
Aitken Creek is the only underground natural gas
storage facility in British Columbia with a total working gas
capacity of 77 billion cubic feet. It is located 120 kilometers
northeast of Fort St. John, British Columbia at the heart of the
Montney production region.
"We are pleased to announce the sale of Aitken
Creek to Enbridge. This unregulated asset sale further strengthens
our balance sheet and provides additional funding flexibility to
support our regulated utility growth strategy," said David
Hutchens, President and Chief Executive Officer, Fortis.
As previously disclosed, the Corporation
expects to fund its low-risk, highly executable $22.3
billion 2023-2027 capital investment plan primarily
with cash from operations, debt issued at the regulated utilities
and common equity from the Corporation's dividend reinvestment
plan.
The purchase is subject to required approval,
principally by the British Columbia Utilities Commission. Closing
is expected to occur by the end of the year.
CIBC Capital Markets and Fasken acted as the
exclusive financial and legal advisors, respectively, to
Fortis.
About Fortis
Fortis is a well-diversified leader in the North
American regulated electric and gas utility industry with 2022
revenue of $11 billion and total assets of $64 billion as at
December 31, 2022. The Corporation's 9,200 employees
serve utility customers in five Canadian provinces, nine U.S.
states and three Caribbean countries.
Fortis shares are listed on the TSX and NYSE and
trade under the symbol FTS. Additional information can be accessed
at www.fortisinc.com, www.sedar.com,
or www.sec.gov.
Forward-Looking Information Fortis
includes "forward-looking information" in this media release within
the meaning of applicable Canadian securities laws and
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995 (collectively referred to
as "forward-looking information"). Forward-looking information
included in this media release reflects expectations of Fortis
management regarding future growth, results of operations,
performance and business prospects and opportunities. Wherever
possible, words such as "anticipates", "believes", "budgets",
"could", "estimates", "expects", "forecasts", "intends", "may",
"might", "plans", "projects", "schedule", "should", "target",
"will", "would" and other similar terminology or expressions have
been used to identify the forward-looking information, which
includes, without limitation, statements related to the
Corporation's forecast capital spending for the five-year period
2023 through 2027; expected sources of funding for the 2023-2027
capital plan; and, the satisfaction of the conditions precedent and
the expected timing and outcome of the Aitken Creek sale
transaction.
Forward-looking information is subject to risks,
uncertainties and assumptions. Certain material factors or
assumptions have been applied in drawing the conclusions contained
in the forward-looking information. These factors or assumptions
are subject to inherent risks and uncertainties surrounding future
expectations generally, including those identified from time to
time in the forward-looking information. Such risk factors or
assumptions include but are not limited to: the implementation of
the Corporation's five-year capital plan; no material capital
project and financing cost overrun related to any of the
Corporation's capital projects; and risks relating to failure to
complete the transaction and the timing thereof. Fortis
cautions readers that a number of factors could cause actual
results, performance or achievements to differ materially from the
results discussed or implied in the forward-looking information.
These factors should be carefully considered and undue reliance
should not be placed on the forward-looking information. For
additional information with respect to certain of these risks or
factors, reference should be made to the continuous disclosure
materials filed from time to time by Fortis with Canadian
securities regulatory authorities and the Securities and Exchange
Commission. All forward-looking information included in this media
release is given as of the date of this media release and Fortis
disclaims any intention or obligation to revise or update any
forward-looking information, whether as a result of new
information, future events or otherwise.
For further information
contact
Investor Enquiries:Ms. Stephanie Amaimo Vice President, Investor
RelationsFortis
Inc.248.946.3572investorrelations@fortisinc.com |
Media Enquiries:Ms. Karen McCarthyVice President, Communications
& Government RelationsFortis
Inc.709.737.5323media@fortisinc.com |
A .pdf version of this press release is available
at: http://ml.globenewswire.com/Resource/Download/9600ad7a-dcfd-429e-8671-38b0787dd846
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