Altagas Ltd. · TSX:ALA
Altagas — Q1 2025 Earnings Presentation
24 slides from Altagas's earnings presentation, May 1, 2025
Slide 1: Q1 2025 Financial Results and Corporate Update
Q1 2025 Financial Results and Corporate Update May 1, 2025
Slide 2: Forward-Looking Information
Forward-Looking Information This presentation contains forward-looking information (forward-looking statements). Words such as "may", "can", "would", "could", "should", "likely", "will", "intend", "contemplate", "plan", "anticipate", "believe", "aim", "seek", "future", "commit", "propose", "contempl
Slide 3: Agenda
Agenda 1 Q1 2025 Achievements & Strategy Execution 2 REEF and Pipestone II Project Updates 3 Macro Environment 4 2025 Business Plan 5 Q1 2025 Segment Results & Highlights 6 2025 Outlook & Strategy 7 Value Proposition & Driving Shareholder Value 3
Slide 4: Q1/2025 Highlights
1 Q1/2025 Highlights Financial Performance Business De-Risking Normalized EBITDA1 Normalized EPS1 Global Export Contracting WGL Regulatory Activity ($MM) D.C. ARP extended to 2025 YE with ▪ Exceed 2027 global exports tolling target ▪ $689 $1.14 $1.15 additional US$34MM of capital ▪ Long-term agreeme
Slide 5: Low Risk Business Model – Enhanced Cashflow Stability
1 Low Risk Business Model – Enhanced Cashflow Stability Continued progress on increasing contracted cashflows Divesting Non-Core, Commodity A B Increasing Commercial Contracting C Delivering a Low-Risk Business Model Sensitive Assets 2020 Normalized EBITDA1 2025E Normalized EBITDA1 Long-term Target
Slide 6: REEF Update
2 REEF Update Milestones Cleared To-Date Delivery 2024 2025 2026 Jetty Construction Final Investment Decision FEED Timeline Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Site Clearing Base Commercial Contracting EPF1 Site Prep. Uplands Project Execution Cost Exposure Installation ~60% project costs committed
Slide 7: Pipestone II Update
2 Pipestone II Update Milestones Cleared To-Date Delivery 2024 2025 Final Investment Decision Site Clearing Timeline Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FEED Acid Gas Wells Gathering System Acid Gas Wells Gas Gathering Project Execution Facility EPC Contracting Principally all work executed or under firm price
Slide 8: Strong Demand for Gas Utilities Investments
3 Strong Demand for Gas Utilities Investments U.S. Natural Gas Demand U.S. Household Energy Demand U.S. Gas-Fired Electrical Generation 90 Consumption per Home, Gas vs. Electric 125 petroleum and other 4,000 85 Natural Gas Electricity renewables 100 3,000 80 nuclear Billion KWh 75 Bcf/d natural gas
Slide 9: Growing Asian Demand Supports Midstream Expansion
3 Growing Asian Demand Supports Midstream Expansion Global Natural Gas Demand Asian LPG Imports Canadian Natural Gas Production 4.0 Other APAC 25 75 India Japan 20 60 3.0 (MMboe/d) South Korea (MMBbl/d) 15 45 China (bcf/d) 2.0 30 10 Norway 15 1.0 5 Middle East 0 0 0.0 2030 1990 1995 2000 2005 2010 2
Slide 10: 2025 Business Plan
4 2025 Business Plan Long-term Strategic Priorities Remain Unchanged Focus on growing, de-risking, and strengthening the enterprise. 1 2 3 Optimize Assets For Balance Sheet Active De-Risking Maximum Returns Deleveraging Increase throughput, extend asset lives Execute long-term commercial contracting
Slide 11: Utilities – Q1/25 Performance
5 Utilities – Q1/25 Performance Q1/25 Utilities results exceeded expectations; cost management playing a key role Normalized Utilities EBITDA1 Cost Management Initiatives ▪ Rate base growth through modernization ▪ 9% Y/Y reduction in O&M across all utilities investments and new customer connects. wi
Slide 12: Midstream – Q1/25 Performance
5 Midstream – Q1/25 Performance Strategic infrastructure drives outsized volume growth, anchored by global exports platform Results Y/Y One-Time Impacts Global Exports 150,000 ▪ Continued de-risking Global Export Volumes RIPET Ferndale ▪ Absence of hedging 125,000 with higher tolling in gain present
Slide 13: 2025 Financial Guidance
6 2025 Financial Guidance Normalized EBITDA1,2 Guidance Normalized EPS1,3 Guidance ($ millions) $1,769 $1,775 - $1,875 Tailwinds / Headwinds $2.25 $2.10 - $2.30 + Utilities cost management $2.00 + Utilities asset optimization Midstream: ~44% Midstream: from volatile gas prices ~ 42% - 46% $1.75 + Ex
Slide 14: 2025 Capex Budget
6 2025 Capex Budget 2025 Capital Budget: $1.4 Billion Midstream Allocation Capital deployment reflects the continued strong growth Strong organic growth opportunities across both platforms – driving opportunities. Largest 2025 capital outlays include REEF, Pipestone II, healthy competition for capit
Slide 15: Leverage Targets
6 Leverage Targets Leverage Targets Trailing Metrics (Medium to Long-Term) (As of Q1/25) (including 50% (including 50% 4.84x debt treatment for 4.65x debt treatment for prefs + hybrids) prefs + hybrids) (excludes prefs 4.0x (excludes prefs + hybrids) 4.2x + hybrids) Adjusted Net Debt to Adjusted Net
Slide 16: AltaGas Value Proposition
7 AltaGas Value Proposition Diversified, Low-Risk Business Model with Visible Growth and Disciplined Capital Allocation Low Risk Energy Infrastructure Visible, Industry- Disciplined Capital 1 2 3 Platform Providing Stable and Leading Growth Allocation Growing Earnings / Cash Flows Robust energy fund
Slide 17: Execution Delivers Compounding Long-term Value
7 Execution Delivers Compounding Long-term Value Normalized Earnings Normalized Adjusted Net Debt1,2 / Share Price Per Share1 EBITDA1 Normalized EBITDA Performance ALA-CA Midstream Index LDC Index Blended Index 2018 2019 2020 2021 2022 2023 2024 2025E 2018 2019 2020 2021 2022 2023 2024 2025E 2018 20
Slide 18: Appendix: Q1 2025 Variances
Appendix: Q1 2025 Variances 18
Slide 19: Consolidated: Q1/25 vs. Q1/24
Consolidated: Q1/25 vs. Q1/24 Normalized EBITDA1,2 ($ millions) 294 -50 252 64 15 689 660 Q1 2024 Corp/ Q1 2025 Actual Utilities Midstream Other Actual ▲ Retail performance ▼ Higher global export volumes offset by ▲ Blythe performance (absence of ▲ Favorable weather (D.C. & Michigan) lower margins (
Slide 20: Consolidated: Q1/25 vs. Q1/24
Consolidated: Q1/25 vs. Q1/24 Income (Loss) Before Income Taxes1 ($ millions) 62 -93 231 541 3 513 Q1 2024 Utilities Midstream Corp/ Q1 2025 Actual Other Actual ▲ Primarily same factors impacting ▼ Primarily same factors impacting ▲ Primarily same factors impacting normalized EBITDA normalized EBITD
Slide 21: Utilities: Q1/25 vs. Q1/25
Utilities: Q1/25 vs. Q1/25 Normalized EBITDA1,2 ($ millions) 64 501 437 Q1 2024 Utilities Q1 2025 Actual Actual ▲ Retail performance ▲ Favorable weather (D.C. & Michigan) ▲ Lower O&M at WGL ▲ ARP modernization ▲ Asset optimization ▲ DC Rate case (2022) ▲ Favorable USD/CAD FX rate (net of hedges) ▼ M
Slide 22: Midstream: Q1/25 vs. Q1/24
Midstream: Q1/25 vs. Q1/24 Normalized EBITDA1,2 ($ millions) -11 -50 247 197 Q1 2024 Q1 2025 Midstream Actual Actual ▼ Higher global export volumes offset by lower margins (including higher tolling relative to Q1/24) ▼ Opex/G&A ▼ Absence of gain on ARO settlement (Alton in Q1/24) ▼ Absence of hedge
Slide 23: Corporate/Other: Q1/25 vs. Q1/24
Corporate/Other: Q1/25 vs. Q1/24 Normalized EBITDA1,2 ($ millions) -9 -24 15 2 Q1 2024 Q1 2025 Corporate Actual Actual ▲ Blythe performance (absence of turnaround in Q1/24) ▲ Corporate G&A Notes: 1) Non-GAAP financial measure; see discussion in the advisories; 2) Numbers may not add due to rounding.
Slide 24: Contact Information
Contact Information For more information visit www.altagas.ca or reach out to one of the following: Jon Morrison Aaron Swanson Senior Vice President, Corporate Vice President, Investor Relations Development and Investor Relations Aaron.Swanson@altagas.ca Jon.Morrison@altagas.ca Jennifer Sudermann Bl