AltaGas Income Trust Closes Taylor Acquisition

On January 10, 2008, AltaGas Income Trust and Taylor NGL Limited Partnership announced the successful completion of the acquisition of Taylor by AltaGas. As a result of this transaction, AltaGas increased its total assets to $1.9 billion. The total value of this transaction was approximately $590 million.

AltaGas is a public company listed on the TSX that creates value by acquiring, growing and optimizing gas and power infrastructure, including a focus on renewable energy sources, to serve North America's energy demand. The newly acquired assets are low-risk, long-life and complementary to AltaGas' existing gas and power infrastructure. The resulting asset mix provides more emphasis on the extraction business, while reducing the reliance on the field gathering and processing business. More specifically, the transaction doubles AltaGas' natural gas liquids production. The acquisition also increases AltaGas' focus on renewable energy growth.

The Taylor acquisition is accretive to cash flow immediately and will be accretive to earnings in 2009. Due to its increased size, which will increase liquidity and access to capital, AltaGas is positioned for continued growth.

The AltaGas team was led by Executive Vice President David Wright, and Vice President, General Counsel and Corporate Secretary Dennis Dawson. AltaGas was assisted by Stikeman Elliott LLP in Calgary with a team that included Chris Nixon, Glenn Cameron, Keith Chatwin, Alyson Goldman, Martin Mix, Charlotte Feasby and Veronica Tang (securities; M&A); Leland Corbett (banking); Sandy Walker (competition); and David Weekes (tax). Donald Biberdorf, Anthony Strawson and Gail Lai from Felesky Flynn LLP advised AltaGas on tax matters.

Taylor was represented by Macleod Dixon LLP with a team that included Robert Engbloom, Don Tse, Kathleen Cowick and Candace Herman (securities) and Craig Maurice (tax).

Lawyer(s)

Christopher W. Nixon Craig A. Maurice Keith R. Chatwin Candace T. Herman Alyson F. Goldman Anthony V. Strawson Kathleen Cowick Charlotte Feasby Martin Mix David E. Wright Don Tse Glenn Cameron Sandra L. Walker Donald K. Biberdorf David G. Weekes Dennis A. Dawson Leland P. Corbett