AltaGas announces the filing of a preliminary prospectus for the initial public offering of AltaGas Canada Inc. which includes AltaGas’ Canadian utilities and certain renewable power assets in Canada

AltaGas Expects to Own a Significant Minority Interest Upon Close of the Initial 3ublic Offering. AltaGas Ltd. AltaGas announced today the filing of a preliminary prospectus by ACI – a wholly owned subsidiary of AltaGas – with respect to ACI’s I3O. Upon successful completion of the I3O, AltaGas will retain a significant minority interest in ACI, as well as three nominees on ACI’s seven-member board.

³With the completion of the sale of a maMority interest in ACI, combined with our previously announced asset moneti]ations, we will have significantly advanced the repayment of the bridge facility, as well as exceeded our asset sale target,” stated David Cornhill, Chairman and interim coChief Executive Officer of AltaGas. The expected proceeds from the I3O, the sale of the non-core midstream and power assets announced earlier this week, as well as the moneti]ation of the 35 percent interest in the Northwest Hydro Facilities in June, are expected to raise approximately CDN $2.5 billion approximately USD $1.9 billion . After taking into effect these asset sales, AltaGas will have approximately USD $1.1 billion remaining on the bridge facility. The final planned step in the repayment of the bridge facility is expected to be term debt and hybrid securities issuances. AltaGas expects to complete all funding steps for the total repayment of the outstanding bridge facility in the fourth quarter of 2018.

AltaGas is a North American leader in the new energy economy, and began its Canadian operations with two Gas services contracts in 1994. Four years later, the company added the Utilities segment to its portfolio, followed by the entry into the 3ower business in 2001. AltaGas continues to be an industry leader with approximately $23 billion in assets and approximately $17 billion in enterprise value. AltaGas remains committed to having assets in all three segments of its business.

³We are moving forward boldly, reshaping the company with a focus on Gas and U.S. Utilities, as well as optimi]ing our operating business through our asset moneti]ation plan, which includes the I3O of ACI,” said Mr. Cornhill. ³And we are not standing still. AltaGas has a wealth of opportunities in our businesses, particularly for our Gas business in the Montney, as well as general system betterment and growth in our U.S. Utilities,” continued Mr. Cornhill. ³The assets that comprise ACI were the foundation of AltaGas’ success and growth over the past quarter century. I am confident that this established track record of operational excellence, combined with the proven senior leadership team at ACI, and the continued alignment with AltaGas, will create attractive long-term value and growth for ACI’s stakeholders,” concluded Mr. Cornhill.

The I3O is being Mointly led by RBC Capital Markets, TD Securities Inc. and J.3. Morgan Securities Canada Inc. Completion of the I3O is subMect to, and conditional upon, the receipt of all necessary approvals, including regulatory approvals. The I3O is expected to close in late October to early November 2018.