ATCO Energy Systems announces its largest ever energy infrastructure project: Yellowhead Mainline to drive economic growth in Alberta
- The Yellowhead Mainline will support energy, petrochemical, building materials and hydrogen projects that use natural gas and carbon capture technology to produce products that the world demands with lower emissions than previously possible.
- The Yellowhead Mainline will also reinforce the natural gas network and contribute to energy security for
Alberta's growing population and industries. - The project is expected to create thousands of direct jobs during construction and enable more than
$20 billion of investment and associated employment inAlberta by customers, including Dow's Path2Zero project, while providing additional market access to producers. - With the announcement of the Yellowhead Mainline project, ATCO Energy Systems is updating its three-year capital investment guidance.
"As
The project is expected to create approximately 2,000 jobs during construction and will provide gas supply for the more than
"Dow appreciates the partnership with ATCO to supply Dow's Path2Zero project. Together these projects will have a profound positive impact on communities, creating jobs and economic opportunity for
The project consists of building approximately 200 kilometres of high-pressure natural gas pipeline and related control and compression facilities that will run from
As disclosed in
As shown below, ATCO Energy Systems now expects its capital investment to be in the range of
Investor & Analyst Inquiries:
Senior Vice President, Finance,
Colin.Jackson@atco.com (403) 808 2636
Media Inquiries:
Director, Corporate Communications
Kurt.Kadatz@atco.com
(587) 228 4571
Forward-Looking Information Advisory
Certain statements contained in this news release constitute forward-looking information. Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "plan", "estimate", "expect", "may", "will", "intend", "should", "goals", "targets", "strategy", "future", and similar expressions. In particular, forward-looking information in this news release includes, but is not limited to, references to: anticipated benefits to be generated by the Yellowhead Mainline project, including driving economic growth, supporting energy, petrochemical, building materials and hydrogen projects, reinforcing
Although the Company believes that the expectations reflected in the forward-looking information are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and no assurance can be given that these expectations will prove to be correct. Forward-looking information should not be unduly relied upon. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties, and other factors, which may cause actual results, levels of activity, and achievements to differ materially from those anticipated in such forward-looking information. The forward-looking information reflects the Company's beliefs and assumptions with respect to, among other things, the growth of energy demand; inflation; the development and performance of technology and technological innovations; continuing collaboration with industry participants, business partners, regulatory bodies and environmental groups; the performance of assets and equipment; the ability to meet current project schedules; and other assumptions inherent in management's expectations in respect of the forward-looking information identified herein.
The Company's actual results could differ materially from those anticipated in this forward-looking information as a result of, among other things, risks inherent in the performance of assets; capital efficiencies and cost savings; applicable laws, regulations and government policies; regulatory decisions; competitive factors in the industries in which the Company operates; prevailing market and economic conditions; credit risk; interest rate fluctuations; the availability and cost of labour, materials, services, and infrastructure; future demand for resources; the development and execution of projects, including projects not proceeding on schedule or at currently estimated budgets; prices of electricity, natural gas, natural gas liquids, and renewable energy; the development and performance of technology and new energy efficient products, services, and programs including but not limited to the use of zero-emission and renewable fuels, carbon capture, and storage, electrification of equipment powered by zero-emission energy sources and utilization and availability of carbon offsets; risks related to the activities of other industry participants, customers, counterparties and/or stakeholders; the termination or breach of contracts by contract counterparties; the occurrence of unexpected events such as fires, floods, extreme weather conditions, explosions, blow-outs, equipment failures, transportation incidents, and other accidents or similar events; global pandemics; geopolitical tensions and wars; and other risk factors, many of which are beyond the control of the Company. Due to the interdependencies and correlation of these factors, the impact of any one material assumption or risk on a forward-looking statement cannot be determined with certainty. Readers are cautioned that the foregoing lists are not exhaustive. For additional information about the principal risks that the Company faces, see "Business Risks and Risk Management" in the 2023 MD&A.
This news release contains financial outlook information, which is subject to the same assumptions, risk factors, limitations and qualifications set forth above. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise or inaccurate and, as such, undue
reliance should not be placed on such financial outlook information. The Company's actual results, performance and achievements could differ materially from those expressed in, or implied by, such financial outlook information. The Company has included such information in order to provide readers with a more complete perspective on its future operations and its current expectations relating to its future performance. Such information may not be appropriate for other purposes and readers are cautioned that such information should not be used for purposes other than those for which it has been disclosed herein. The financial outlook information that is contained herein was approved and made as of the date of this news release.
Any forward-looking information contained in this news release represents the Company's expectations as of the date hereof, and is subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable securities legislation.
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1
Capital investment is a non-GAAP financial measure that is defined as cash used for capital expenditures, business combinations, and cash used in the Company's share of capital expenditures in joint ventures. The most directly comparable financial measure that is disclosed in the Company's financial statements is capital expenditures. Capital expenditures include additions to property, plant and equipment and intangibles as well as interest capitalized during construction. Capital investment is not a standardized financial measure under the reporting framework used to prepare the Company's financial statements. Capital investment may not be comparable to similar financial measures disclosed by other issuers. For additional information, see "Other Financial and Non-GAAP Measures" and "Reconciliation of |
2 Mid-year rate base is equal to total net capital investment less depreciation. Growth in mid-year rate base is a leading indicator of a utility's earnings trend, depending on changes in the equity ratio of the mid-year rate base and the rate of return on common equity. Mid-year rate base CAGR is not a standardized financial measure under the reporting framework used to prepare the Company's financial statements and may not be comparable to similar financial measures disclosed by other issuers. |
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