AltaGas Ltd. is selling its stake in the Central Penn Pipeline for $870 million. (Photo by THE CANADIAN PRESS)

Tidewater signs deal to sell Pipestone and Dimsdale assets to AltaGas for $650M

Tidewater Midstream and Infrastructure Ltd. has signed a deal to sell its Pipestone natural gas plant and expansion project as well as its Dimsdale natural gas storage facility to AltaGas Ltd. for $650 million in cash and shares.

The company says it expects to use the net proceeds from the sale for general corporate purposes, including the repayment of debt.

Tidewater interim CEO Rob Colcleugh says the deal unlocks significant value for shareholders while strengthening the company’s balance sheet.

Under the agreement, AltaGas will pay $325 million in cash and $325 million in AltaGas common shares.

AltaGas says the deal adds strategic and complementary assets that strengthen its footprint in the Alberta Montney region.

The deal is expected to close in the fourth quarter of this year, subject to closing conditions.