AltaGas Ltd. (TSX: T.ALA, Stock Forum) said it has successfully commissioned the 50 million cubic feet per day of Blair Creek facility expansion which will provide processing capacity to producers developing the liquid-rich Montney resource play.
The Montney resource area, located in northeast B.C., is one of the largest, low cost, liquid-rich resource plays in the Western Canadian Sedimentary Basin. The expansion is underpinned by long-term contracts with three active producers in the area.
According to the press release, the Blair Creek expansion volumes represent approximately a 5% increase in total gas processing throughput and will add $8 to $10 million of annual earnings before interest, taxes, depreciation and amortization (EBITDA).
"We are pleased to announce the commissioning of the expansion and look forward to continuing to work with producers in the liquids-rich Montney area," said David Cornhill, Chairman and CEO."This project demonstrates that we are executing our growth strategy to add over $500 million in new gas assets and $75 million in annualized EBITDA."
AltaGas is an energy infrastructure business with a focus on natural gas, power and regulated utilities.
On Monday, AltaGas was trading at $31.71 a share. The company has a market cap of $2.87 billion, based on 90.4 million shares outstanding. The 52-week high and low was $32.67 and $25.62 respectively.