AltaGas Ltd. ("AltaGas" or the "Company") announces the following corporate updates:
CFO Retirement and Transition
James Harbilas, AltaGas' Executive Vice President and CFO, will retire on April 1, 2026. Following an executive search, Sean Brown will be joining AltaGas to succeed James as incoming CFO effective today. James will assume the role of Strategic Advisor until his retirement. Over the coming months, James and Sean will be focused on ensuring a smooth CFO transition.
"On behalf of the Board and the entire AltaGas team, I want to thank James for his strong contributions to AltaGas' success," said Vern Yu, AltaGas' President and Chief Executive Officer. "Over the past six years, AltaGas has de-leveraged its balance sheet, completed strategic acquisitions and divestitures and advanced a disciplined capital allocation framework across our two core businesses. We thank James for his strong leadership in helping achieve these significant milestones and for his commitment to a successful transition.
"We are pleased to welcome Sean Brown as our next CFO. Sean has more than 25 years of experience spanning energy infrastructure, finance, and capital markets. This includes nearly a decade as a public company CFO and a distinguished background in investment banking. Sean's proven leadership in strategy, capital allocation, risk management and investor relations will be instrumental as we continue to execute on our long-term strategic plan and deliver sustained value for our stakeholders."
Sean most recently served as Senior Vice President & Chief Financial Officer at Gibson Energy Inc. and was previously a Managing Director, Global Energy Group, at BMO Capital Markets. He holds an MBA from the Richard Ivey School of Business, a BBA from Acadia University, and is a Chartered Financial Analyst (CFA).
Pipestone Phase II Commercial Operations
Pipestone II has achieved full commercial operations. Following completion of construction in early November, the facility progressed through successful commissioning. The facility reached first gas in mid-December 2025, with AltaGas declaring full commercial operations in late December. Pipestone I and II are now operating on a fully integrated basis as one complex with two trains. Train II has ramped strongly and is now operating at more than 90 percent of design capacity.
Long-term contracted volumes at Train II will continue to increase in the coming months as per the commercial contracts, with producers taking advantage of short-term interruptible capacity currently available to process additional natural gas and natural gas liquids ("NGLs") volumes in the Alberta Montney. Pipestone II is fully-contracted under long-term take-or-pay agreements and provides critical gas processing and liquids handling capacity in one of the most active liquids-rich natural gas producing regions in Western Canada.
Dimsdale Phase II Expansion Positive FID
AltaGas has achieved a positive FID on the Phase II expansion of the Dimsdale natural gas storage facility. The 30 Bcf expansion is backed by multi-year, take-or-pay firm storage service contracts. This includes Tourmaline and Gunvor taking additional capacity above their previously disclosed Phase I commitments, as well as four new Phase II customers. The Dimsdale Phase II expansion will include construction of additional compression and dehydration capacity and the drilling of five new storage wells, increasing gas storage capacity in the Alberta Montney. The capital cost for the project is estimated at approximately $165 million, with a targeted in-service date of mid-2027.
In aggregate, AltaGas will now deploy approximately $230 million to expand its gas storage capacity in the Alberta Montney over the coming 18 months, all backed by long-term take-or-pay agreements. The strong customer demand underscores the need for more gas storage in Western Canada to help balance future Canadian LNG draws and highlights the value of strategically located assets in key hubs, such as Dimsdale, which are uniquely positioned to capture this emerging opportunity.
MVP Southgate FERC Approval
The MVP Southgate project, a planned extension of the MVP mainline into North Carolina, continues to make positive progress under its more efficient project plan. In late December, the U.S. Federal Energy Regulatory Commission ("FERC") unanimously approved the new shortened pipeline route. This follows a positive Environmental Assessment issued in October by FERC and the U.S. Fish and Wildlife Service, which concluded that the project would not cause significant adverse impacts if specific mitigation measures and environmental safeguards are followed.
These approvals reaffirm AltaGas' decision to retain its ownership in MVP, including MVP Boost and MVP Southgate. AltaGas expects MVP Southgate to generate attractive project-level returns with an expected sub-5.0x EBITDA build multiple and MVP Boost is expected to achieve an approximately 3.0x EBITDA build multiple.