Fortis Inc. Completes Sale of Aitken Creek Natural Gas Storage Facilities in British Columbia
Fortis Inc. has announced the successful completion of the sale of its 93.8% interest in the Aitken Creek Natural Gas Storage Facility and its 100% interest in the Aitken Creek North Gas Storage Facility, collectively known as "Aitken Creek," to a subsidiary of Enbridge Inc. The transaction, valued at approximately $400 million plus working capital and closing adjustments, follows the satisfaction of all regulatory requirements. The sale of Aitken Creek aligns with Fortis' strategy to strengthen its balance sheet and provide additional funding flexibility to support its regulated utility growth. CIBC Capital Markets and Fasken served as the exclusive financial and legal advisors to Fortis in this transaction.
About Fortis
Fortis is a well-diversified leader in the North American regulated electric and gas utility industry. With 2022 revenue of $11 billion and total assets of $66 billion as of September 30, 2023, the corporation serves utility customers in five Canadian provinces, ten U.S. states, and three Caribbean countries. Fortis shares are listed on the TSX and NYSE under the symbol FTS. For more information, visit www.fortisinc.com.
Investor and Media Enquiries
For investor inquiries, please contact Ms. Stephanie Amaimo, Vice President of Investor Relations at Fortis Inc., at 248.946.3572 or investorrelations@fortisinc.com. For media inquiries, please contact Ms. Karen McCarthy, Vice President of Communications & Government Relations at Fortis Inc., at 709.737.5323 or media@fortisinc.com.
Impact of Fortis Inc.'s Sale of Aitken Creek on New Businesses
Strategic Business Decisions
The recent sale of Aitken Creek by Fortis Inc. to a subsidiary of Enbridge Inc. is a strategic move that could have significant implications for new businesses in the energy sector. This transaction, valued at approximately $400 million, is a clear demonstration of how established companies are capitalizing on their assets to strengthen their financial position. For startups, this could serve as a lesson in strategic business management, particularly in terms of asset utilization and financial planning.
Regulatory Compliance
The sale also underscores the importance of regulatory compliance in business transactions. The deal was completed following the satisfaction of all regulatory requirements, highlighting the critical role of legal due diligence in ensuring smooth business operations. This is a key takeaway for new businesses, as regulatory compliance can significantly impact their growth and success.
Industry Opportunities
Lastly, the sale of Aitken Creek could signal potential opportunities in the energy sector. With Fortis' shift in focus towards its regulated utility growth, there may be gaps in the market that new businesses can fill. This requires keen market analysis and the ability to seize opportunities as they arise.
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