AltaGas Secures $460 Million Equity Deal, Boosts Credit Ratings
Calgary-based AltaGas Ltd. has successfully closed a significant $460 million equity financing deal, announced November 7, 2025, a move set to bolster its financial position and credit ratings. The offering saw 11,615,000 common shares sold at $39.65 each, led by a syndicate of major financial institutions including CIBC Capital Markets and TD Securities.
This strategic maneuver is designed to reduce AltaGas' leverage while paving the way for future growth, notably reinforced by the company's decision to maintain its 10% ownership in the Mountain Valley Pipeline (MVP) and associated projects. Credit rating agencies have responded positively, with Fitch updating its outlook for AltaGas to 'Stable' and S&P Global Ratings shifting to 'Positive', reflecting enhanced financial metrics and anticipated returns from future projects.
AltaGas anticipates that retaining its MVP stake will deliver increased shareholder value through expected revenue growth following pipeline expansions projected by 2028. The company foresees substantial boosts in EBITDA and higher earnings per share in the coming years. For Calgary, a city deeply intertwined with the energy sector, such strategic investments by a major local player like AltaGas underscore the continued commitment to energy infrastructure development. This positions the company well amid global demand for LPG exports and ensures stable utility cash flows, contributing to the city's broader economic narrative.
