AltaGas Ltd. · TSX:ALA

AltaGas — AltaGas Income Trust — Shareholder Meeting (April 2005)

28 slides from AltaGas's shareholder meeting presentation, Apr 28, 2005

  1. Slide 1: Annual Meeting of Unitholders

    Annual Meeting of Unitholders April 28, 2005

  2. Slide 2: Forward-Looking Information

    Forward-Looking Information ƒ Certain information in this presentation is forward-looking. Such information is subject to certain risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated in the forward-looking information. These risks and unce

  3. Slide 3: Serving North America's energy demand along the value chain

    Serving North America’s energy demand by growing and optimizing our assets along the energy value chain in markets we know, to create long-term value for our unitholders.

  4. Slide 4: Energy Value Chain

    Energy Value Chain Gathering Processing ƒ AltaGas creates value by strategically linking Ga Power asset and service Wellhead Transmission End-user components of the energy value chain Gas Extraction Natural Gas Distribution

  5. Slide 5: Integrated Energy Businesses

    Integrated Energy Businesses ƒ FIELD GATHERING Net Book Value AND PROCESSING At December 31, 2004 ƒ EXTRACTION $ 890.3 million ƒ TRANSMISSION ƒ POWER SERVICES 11% 14% ƒ GAS SERVICES NORTHWEST ƒ NATURAL GAS TERRITORIES DISTRIBUTION 12% 45% 14% 4% B.C. ALBERTA SASK. NOVA ONTARIO SCOTIA

  6. Slide 6: North American Gas Demand

    North American Gas Demand Bcf/d Tcf/yr 74.3 (Up 1.7% / year) 70.5 (Down 1.0% / year) 70 25 Electrical Up 3% / year 23% 31% 60 Growing 20 50 Industrial 33% 26% 40 Shrinking 15 30 10 22% 22% Residential 20 5 10 14% 14% Commercial 8% 7% Pipeline 0 0 1986 2000 2004 2010 2011

  7. Slide 7: Western Canada: Gas Completions

    Western Canada: Gas Completions Gas Completions * New Record ALTAGAS WELL TIE-INS 16,400 450 428 15,000 14,000 400 350 328 11,150 300 279 10,000 9,100 Price 250 Drop 192 188 200 11 5,000 4,600 150 100 50 0 0 1998 2000 2003 2004 2000 2000 2001 2002 2003 2003 2004 2004 *Source: Ziff Energy

  8. Slide 8: Western Canada Spending

    Western Canada Spending Billion Cdn$ Billion Cdn$ History Forecast S c e na r i o i f E ne r g y P r i c e s S t a y Hi g h 30 30 25 25 Facilities 20 Five Fold Increase 70-75% 20 De v. 15 15 Development Drilling 10 Light 10 EOR Land 5 Seismic 5 55% 45% Exploratory Drilling 0 0 1990 1995 2000 2005 20

  9. Slide 9: Serving North America's Natural Gas Demand

    Serving North America’s Natural Gas Demand ƒ Field Gathering and Processing ƒ Extraction ƒ Transmission ƒ Gas Services ƒ Distribution

  10. Slide 10: Field Gathering and Processing

    Field Gathering and Processing ƒ 69 facilities with 913 mmcf/d of capacity BC ALBERTA SASK. ƒ moveable facilities ƒ 6,000 km of gathering lines Edmonton Sylvan Lake Gas Plant Calgary

  11. Slide 11: Extraction

    Extraction ƒ 539 mmcf/d inlet capacity, including Alberta’s newest extraction plant BC ALBERTA SASK. ƒ fourth quarter average production of 21,244 Bbls/d Edmonton Joffre Ethane Calgary Extraction Plant

  12. Slide 12: Transmission

    Transmission ƒ 6 transmission pipelines totaling 750 km BC ALBERTA SASK. ƒ 432 mmcf/d volumes Edmonton Suffield Transmission Calgary Meter Station

  13. Slide 13: Gas Services

    Gas Services ƒ energy procurement and consulting services, energy supply and natural BRITISH gas transportation and ALBERTA COLUMBIA storage optimization to end use customers ƒ over 1,000 customers Edmonton Calgary ONTARIO Burnaby Oakville Chatham

  14. Slide 14: Natural Gas Distribution

    Natural Gas Distribution ƒ AltaGas Utilities ƒ 60,400 customers BC ALBERTA SASK. ƒ 6% of Alberta natural gas distribution market ƒ positioned for Northern development ƒ Nova Scotia greenfield opportunity Edmonton Northwest Nova Scotia Calgary Territories Inuvik Halifax

  15. Slide 15: Alberta Power Generation Outlook

    Alberta Power Generation Outlook Gas TWh 11% Market Share of Canada Equivalent Tcf* History Forecast 75 a r Growth 0.6 Ye 2.5%/ Natural Gas 16% Growth/yr 50 0.4 25 Coal 0.2 Oil & Other Hydro 0 0.0 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 Source: Statistics Canada, Ziff Energy *Heat Rat

  16. Slide 16: Power Services

    Power Services ƒ 6% of Alberta’s power capacity ƒ rights to 353 MW until December BC ALBERTA SASK. 31, 2020 ƒ 25 MW of gas fired peaking capacity Edmonton Sundance B Power Plant Calgary

  17. Slide 17: Operational Excellence - Reliability

    Operational Excellence - Reliability 130% 120% Plant Performance 110% 100% 90% 80% 70% Jan/04 Jan/05

  18. Slide 18: Operational Excellence - Maintenance Costs

    Operational Excellence – Maintenance Costs 12 10 8.8 Maintenance Cost $/HP/MO 8 6.1 6 4 2 0 Q1 Q2 2003 Q3 Q4 Q1 2004 Q2 Q3 Q4 Q1 2005 Q2 Q3 Q4

  19. Slide 19: Operational Excellence - Competitive Capital Cost

    Operational Excellence – Competitive Capital Cost 20 16 12 8 Variance from 4 Budget% 0 -1 -4 -4 -7 -6 -8 -8 -12 -16 -20 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2004 2005 Note: Based on projects over $250 K completed in each quarter

  20. Slide 20: Operational Excellence - Safety Performance

    Operational Excellence - Safety Performance 100 95 Audit Score 90 85 80 75 2000 2001 2002 2003 2004

  21. Slide 21: AltaGas Today: Strong and Diversified

    AltaGas Today: Strong and Diversified TOTAL ASSETS EBITDA At December 31, 2004 For the year ended December 31, 2004 $ 1,108.6 million $ 133.4 million 14% 11% 15% 53% 36% 71% Gathering and Processing Gathering and Processing Energy Services Energy Services Natural Gas Distribution Natural Gas Distrib

  22. Slide 22: Invested Capital

    Invested Capital INVESTED CAPITAL ($ Millions) ƒ $130 million in invested capital for 2004 200 ƒ $119 million growth capital ƒ $6 million maintenance capital 150 ƒ $5 million administration capital 100 50 0 2000 2001 2002 2003 2004 89.8 204.70 165.20 70.80 130.20

  23. Slide 23: Net Income

    Net Income NET INCOME ($ Millions) ƒ 2004 ƒ $65.8 million, 72% increase 70 over 2003 ƒ includes Trust conversion costs 60 and income tax benefit from 50 Trust conversion ƒ Strong performance 40 ƒ Gathering and Processing 30 ƒ Energy Services 20 ƒ Lower income taxes 10 0 2001 2002 2003 2004 19.2 29.4

  24. Slide 24: Net Income Per Unit

    Net Income Per Unit NET INCOME PER UNIT ($) ƒ 2004 ƒ $1.33 58% increase over 2003 ƒ includes Trust conversion costs 1.40 and income tax benefit from 1.20 Trust conversion 1.00 ƒ Basic units outstanding ƒ 49.4 million (45.5 million 2003) 0.80 ƒ Distribution per unit 0.60 ƒ $0.15 monthly 0.40 ƒ Total

  25. Slide 25: Strong Balance Sheet

    Strong Balance Sheet DEBT AS A PERCENTAGE OF ƒ Committed to investment TOTAL CAPITALIZATION * grade rating 60% ƒ Stability rating ƒ S&P: SR-3 50% Target Range ƒ DBRS: STA-3 (middle) 40% ƒ Medium term notes rating ƒ S&P: BBB- 30% ƒ DBRS: BBB (low) 20% ƒ Capital structure ƒ December 31, 2004 - 42.6% 1

  26. Slide 26: Strong Competitive Advantages

    Strong Competitive Advantages ƒ Revenue diversification ƒ revenue source ƒ fuel source ƒ geography ƒ commodity ƒ counterparty ƒ Stable cash flow ƒ contractual terms ƒ risk management ƒ Strong balance sheet ƒ Financial flexibility ƒ Reliable and cost effective ƒ Experienced management team and dedica

  27. Slide 27: Financial Discipline

    Financial Discipline ƒ Disciplined approach to acquisitions ƒ earnings accretive ƒ return on equity accretive ƒ maintain low risk profile ƒ maintain financial flexibility ƒ enhance unitholder value ƒ Financial discipline ƒ trust is an efficient tax structure ƒ manage as a corporate with a high payou

  28. Slide 28: Annual Meeting of Unitholders

    Annual Meeting of Unitholders April 28, 2005

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