CALGARY, ALBERTA--(Marketwire - Sept. 10, 2012) - AltaGas Ltd. ("AltaGas") (TSX:ALA) (TSX:ALA.PR.A) (TSX:ALA.PR.U) today announced that the Board of Directors has approved a dividend increase of 4.3 percent or $0.06 per common share per year. The annual dividend increased to $1.44 per common share ($0.12 per month) from $1.38 ($0.115 per month). The dividend increase is effective with the September dividend which is payable on October 15, 2012, to common shareholders of record on September 25, 2012. The ex-dividend date is September 21, 2012. This dividend is an eligible dividend for Canadian income tax purposes.

"The dividend increase reflects the strong and predictable cash flow we expect from our diversified portfolio of energy infrastructure assets." said Mr. David Cornhill, Chairman and CEO. "2012 is a milestone year in our history with the addition of new assets across our Gas, Power and Utility businesses. To date in 2012, we completed projects and closed acquisitions that have already added over two thirds of the $215 million in annualized incremental EBITDA that we are on track to add by the end of this year."

Given the expected cash flow in 2013, AltaGas expects the dividend payout as a percentage of funds from operations to be well below 50 percent. The conservative payout ratio supports AltaGas' strategy to grow its business in a financially disciplined manner.

AltaGas has a Dividend Reinvestment and Optional Share Purchase Plan ("DRIP") for eligible Shareholders of AltaGas. Eligible Shareholders may reinvest the cash dividends paid by AltaGas on their common shares toward the purchase of new common shares at a five percent discount to the average market price as defined in the DRIP.

AltaGas is an energy infrastructure business with a focus on natural gas, power and regulated utilities. AltaGas creates value by acquiring, growing and optimizing its energy infrastructure, including a focus on renewable energy sources. For more information visit: www.altagas.ca.