Altagas Ltd. · TSX:ALA
Altagas — Investor Presentation (December 2024)
20 slides from Altagas's investor presentation, Dec 3, 2024
Slide 1: 2025 Financial Guidance and Outlook
2025 Financial Guidance and Outlook Dec 3, 2024
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: Overview
Overview 1 2025 Guidance Highlights 2 North American and Global Macro Environment 3 2025 Business Plan and Strategic Priorities 4 2025 Guidance and Headwinds and Tailwinds 5 Dividend Outlook 6 2025 Capital Program 7 Other Updates 3
Slide 4: 2025 Guidance Highlights
1 2025 Guidance Highlights 2025 Normalized EBITDA1 2025 Dividend Increase $1.26 +6% $1.19 +6% Y/Y mid-point to Annual Increase mid-point growth 2024E 2025E 2024E 2025E 2025 Normalized EPS1 2025 Capital Program 1 Maintenance + System Betterment +2% Asset Modernization + New $1.4 Billion 2 Customer Co
Slide 5: Strong Environment for Gas Utilities Investments
2 Strong Environment for Gas Utilities Investments U.S. Natural Gas Demand U.S. Household Energy Demand U.S. Gas-Fired Electrical Generation 90 Gas vs. Electric2 petroleum and other 4,000 85 125 renewables Natural Gas Electricity 100 3,000 nuclear Billion KWh 80 natural gas 75 75 2,000 Growing Bcf/d
Slide 6: Robust Asian Demand Supports Midstream Expansion
2 Robust Asian Demand Supports Midstream Expansion Global Natural Gas Demand Global LPG Exports Canadian Energy Export Projects 85 4.0 3.5 • Coastal Gas Link 70 Recently 3.0 • TMX Expansion (MMboe/d) 55 Completed Enbridge Line 3 MMBbl/d 2.5 • 40 2.0 • LNG Canada 1.5 Norway 25 1.0 Middle East In Cons
Slide 7: 2025 Business Plan
3 2025 Business Plan Continue to Execute on our Long-term Strategic Priorities Focus on growing, de-risking, and strengthening the enterprise. 1 2 3 Optimize Assets For Active Continued Balance Maximum Returns De-risking Sheet Deleveraging Increase throughput, extend asset lives Increased long-term
Slide 8: Advocating for Customer Choice in 2025
Advocating for Customer Choice in 2025 Advocating for Energy Choice Washington Gas, along with local unions, restaurant associations, business counsels, housing and building associations, filed two AltaGas will be very active in statement of claims challenging two proposed local gas bans. advocacy
Slide 9: 2025 Financial Guidance
4 2025 Financial Guidance Normalized EBITDA1,2 Guidance $3.00 Normalized EPS1,3 Guidance ($ millions) Tailwinds / Headwinds $2.50 $2.10 - $2.30 $1,675 - $1,775 $1,775 - $1,875 + Higher utilization at Montney facilities $2.00 + Utility rate base growth Midstream: Midstream: + Normal weather (DC & MI)
Slide 10: 2025 Dividend Increase and Forward Outlook
5 2025 Dividend Increase and Forward Outlook Plan to return capital through sustainable annual $1.26/Share DIVIDEND dividend increases 2025 Dividend PHILOSOPHY Compound at strong long-term rates that aligns with AltaGas’ long-term normalized EPS1 growth Represents 6% Y/Y increase. 50-60% Payout
Slide 11: 2025 Capex Budget
6 2025 Capex Budget 2025 Capital Budget: $1.4 Billion Increasing 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 competitio
Slide 12: 2025 Capital Allocation Breakdown
6 2025 Capital Allocation Breakdown Capital focused on advancing short and long-term projects across portfolio. Capital Allocation Investment Focus Investment Return Low capital business development and asset optimization Mix of immediate and delayed investment returns 4 Other Growth Pipestone
Slide 13: Data Centers Provide Additional Growth Opportunity
7 Data Centers Provide Additional Growth Opportunity Data Centers US Power Demand Share of Top U.S. Data Center Locations PJM – Data Center Power Demand Forecast 700 Terawatt-hours 12% Data Center Consumption 600 Share of US Power Demand Share of US Power 10% Northern 500 Demand Virginia 20,000 Domi
Slide 14: Pipestone II Update
7 Pipestone II Update In Service Date: 2025 Year-end June Facility Progress November Facility Progress Milestones Cleared To-Date Final Investment Decision Site Clearing FEED Acid Gas Wells Gathering System Project Execution EPC Contracting 95% executed or firm price EPC awarded Acid Gas Injection W
Slide 15: REEF Update
7 REEF Update In Service Date: Near 2026 Year-end Rail Offloading Foundation Overburden Removal Milestones Cleared To-Date Final Investment Decision FEED Site Clearing Project Execution EPC Contracting ~50% firm price EPC awarded; balance over project execution plan In-Water Piling Piling Set-Up In-
Slide 16: Mountain Valley Pipeline Update
7 Mountain Valley Pipeline Update The Pipeline Q3/24 First full quarter of operations with strong operating performance and no surprises. Partners currently evaluating ~475 MMcf per day expansion through additional compression. MVP – Bradshaw Compressor Station Proposed 3.5 GW VA power plant f
Slide 17: Focused on Continued Balance Sheet Deleveraging
7 Focused on Continued Balance Sheet Deleveraging Previous Leverage Target New Leverage Targets Trailing Metrics (Adjusted for Higher Hybrids) (As of Q3/24) 5.0x (including 50% (including 50% debt treatment for 4.65x debt treatment for prefs + hybrids) prefs + hybrids) (excludes prefs 4.5x 4.0x (exc
Slide 18: 2025 Normalized EBITDA Seasonality Expectations
2025 Normalized EBITDA Seasonality Expectations Consolidated Normalized EBITDA1 Midstream Normalized EBITDA1 Utilities Normalized EBITDA1 by Quarter by Quarter by Quarter 42%- 46% 35%-39% 28%-32% 31%-35% 25%-29% 24%-28% 22%-26% 17%-21% 20%-24% 12%-16% 14%-18% 5%-9% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 19: Executing on Strategic Priorities to Compound Long-term Value
Executing on Strategic Priorities to Compound Long-term Value Normalized Earnings Normalized Adjusted Net Debt1,2 / Share Price Per Share1 EBITDA1 Normalized EBITDA Performance 2018 2019 2020 2021 2022 2023 2024E 2025E 2018 2019 2020 2021 2022 2023 2024E 2025E 2018 2019 2020 2021 2022 2023 2024E 202
Slide 20: 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 In