July 29, 2014
BHE investment in AltaLink secures needed infrastructure investment for Alberta
CALGARY, ALBERTA (Marketwired - July 29, 2014)
Berkshire Hathaway Energy announced May 1, 2014 that it will acquire AltaLink for an estimated $3.2 billion. The transaction is subject to approval by the Alberta Utilities Commission.
AltaLink believes that every Albertan will benefit from Berkshire Hathaway Energy's commitment to invest in the transmission infrastructure that powers Alberta's growth.
To meet the growing need for safe, reliable power in Alberta, AltaLink must continue to invest significant amounts of new capital over the next three years. AltaLink benefits from solid, experienced ownership to fund this necessary expansion and reinforcement of Alberta's aging transmission network. In addition, Berkshire Hathaway Energy has committed that following the acquisition 100 per cent of AltaLink's earnings will be reinvested back into AltaLink, elsewhere in Alberta, or other regions of Canada.
"Berkshire Hathaway Energy has a strong track record of owning and operating world-class utilities," said Scott Thon, AltaLink's president and CEO. "Their investment in AltaLink will be of great long-term benefit to Alberta's transmission sector and will ensure our power system supports the economic growth and growing energy needs of Albertans in our homes and businesses."
AltaLink announces second quarter financial results
Today, AltaLink, L.P. announced net income of $49.0 million for the quarter, compared with $33.4 million for the same period in 2013. Revenue for the quarter was $168.5 million compared to $117.5 million in 2013. The growth is primarily due to the increase in our investments to expand and reinforce the reliability of the transmission system.
As a partnership, AltaLink, L.P. reports its net income before income taxes; therefore its results are not directly comparable with net income reported by corporations that recognize income taxes in their financial statements.
Headquartered in Calgary, with offices in Edmonton, Red Deer and Lethbridge, AltaLink is Alberta's largest transmission provider. The partnership is actively working with stakeholders to build new transmission projects in response to the province's growth. We ensure the transmission system will reliably meet Albertans' energy needs today and in the future, by providing access to clean, renewable electric energy and the lowest-priced supply available in the province.
Significant Q2 highlights
- We invested $520.6 million (three months ended June 30, 2013 ? $363.7 million) in capital projects to reinforce and expand the transmission system;
- We energized the Christina Lake Pike substation and related transmission lines on June 30, to support oilsands development in Alberta.
- We energized the Fidler substation and related transmission lines on June 27, helping connect wind generated power to the rest of the province.
This news release does not constitute an offer to sell or the solicitation of an offer to buy AltaLink's securities in any jurisdiction, including but not limited to, the United States. AltaLink's securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold in the United States except in certain transactions exempt from the registration requirements of the U.S. Securities Act and applicable state securities laws.
Except for the historical and present factual information contained herein, the matters set forth in this news release, including words such as "expects", "intends", "projects", "plans", "anticipates" and similar expressions, are forward looking information that represents management of AltaLink's Internal projections, expectations or beliefs concerning, among other things, future operating results and various components thereof or the economic performance of AltaLink. The projections, estimates and beliefs contained in such forward looking statements necessarily involve known and unknown risks and uncertainties, which may cause AltaLink's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward looking statements. These risks and uncertainties include, among other things, those described in AltaLink's filings with the Canadian securities authorities. Accordingly, holders of AltaLink securities and potential investors are cautioned that events or circumstances could cause results to differ materially from those predicted. AltaLink disclaims any responsibility to update these forward looking statements.
For more information please contact:
AltaLink Management Ltd. - Investor Relations
Vice President, Treasurer
AltaLink Management Ltd. - Media Relations
Director, External Engagement