Slide 1: Q3 2024 Financial Results and Corporate Update
Q3 2024 Financial Results and Corporate Update Oct 31, 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: Agenda
Agenda 1 Q3 Highlights and Midstream Project Updates 2 Montney Growth and Data Centers 3 Utilities Regulatory and Energy Choice 4 Q3 Segment Results 5 Midstream Project Track Record and MVP Update 6 Updated Leverage Targets 7 2024 Outlook and Guidance 3
Slide 4: Q3/2024 Highlights
1 Q3/2024 Highlights Financial Performance Commercial Agreements Normalized EBITDA1 Normalized EPS1 Townsend Agreement Pipestone I Contract Extension ($MM) $252 $294 $0.14 +100 MMcf/d 5-year extension $0.08 • Two new contracts with • Large Canadian IG producer high-single digit average contract leng
Slide 5: Midstream Project Execution
1 Midstream Project Execution REEF In Service Date: Near 2026 Year-end Pipestone II In Service Date: 2025 Year-end Milestones Cleared To-Date Milestones Cleared To-Date Final Investment Decision FEED Final Investment Decision Site Clearing Site Clearing FEED Acid Gas Wells Project Execution Project
Slide 6: Montney Infrastructure Supports Midstream Growth
2 Montney Infrastructure Supports Midstream Growth Our Montney Infrastructure Montney Licensing Activity 70% Montney activity will Percent of Total Gas Licenses 60% continue to dominate – AltaGas’ infrastructure comprises nearly 70% of 50% sits in most productive all Canadian gas licenses. BC AB
Slide 7: Data Center Growth Opportunity
2 Data Center 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 Dominion NOVEC 8% Other
Slide 8: Active Regulatory and Customer Advocacy
3 Active Regulatory and Customer Advocacy Regulatory Advocating for Energy Choice Rate Case Filing Washington Gas, along with local unions, restaurant associations, Filed D.C. rate case with request for US$45.6MM base business counsels, housing and building associations, filed two D.C. rate incr
Slide 9: Midstream – Q3/24 Performance
4 Midstream – Q3/24 Performance Q3/24 Midstream results were in-line with expectations, supported by record global exports Normalized Midstream EBITDA1 Global Exports 150,000 Record global exports volumes. RIPET Ferndale Global Exports Volumes 125,000 +9% Strong execution across the -2% 100,000
Slide 10: Utilities – Q3/24 Performance
4 Utilities – Q3/24 Performance Q3/24 Utilities results exceeded expectations; continues to deliver strong earnings Normalized Utilities EBITDA1 Cost Management Initiatives Rate base growth through modernization Ongoing focus on cost management efforts across our investments and new customer con
Slide 11: Proven Track Record of Midstream Project Execution
5 Proven Track Record of Midstream Project Execution Legend Key Project Project Targeted Completion Delivery Metrics Execution Actual Completion NEBC Program I -8 % 13 Townsend I Under Budget Total Projects 198 MMcf/d facility Project FID Completed NEBC Program II -14 % Under Budget North Pine + T
Slide 12: Mountain Valley Pipeline Update
5 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 13: Recalibrating Leverage Targets
6 Recalibrating Leverage Targets Previous Leverage Target New Leverage Targets Trailing Metrics (Adjusted for Higher Hybrids) (As of Q3/24) 5.0x (including 50% (including 50% 4.65x debt treatment for prefs + hybrids) debt treatment for prefs + hybrids) 4.5x (excludes prefs 4.0x (excludes prefs + hyb
Slide 14: 2024 Guidance Puts and Takes
7 2024 Guidance Puts and Takes Well-positioned to achieve our 2024 guidance figures. Expect midpoint of Normalized EPS1 of $2.05 - $2.25 and upper end of Normalized EBITDA1 of $1.675 billion to $1.775 billion. 2024 Guidance Intact Largest Changes for 2024 Since Guidance was Set Normalized EBITDA1 Gu
Slide 15: 2024 Capital Spending Allocation
7 2024 Capital Spending Allocation 2024 Capital Budget: $1.3 Billion Increased Midstream Allocation Largest 2024 capital outlays include Utilities Strong organic growth opportunities across both platforms – ARP, System Betterment, Pipestone II driving healthy competition for capital. Attractive oppo
Slide 16: Executing on Strategic Priorities to Compound Long-term Value
Executing on Strategic Priorities to Compound Long-term Value Normalized Earnings Normalized Adjusted Net Debt1,2 / Stock Per Share1 EBITDA1 Normalized EBITDA Performance 2019 2020 2021 2022 2023 2024E 2019 2020 2021 2022 2023 2024E 2018 2019 2020 2021 2022 2023 2024E ALA-CA Midstream Index LDC Inde
Slide 17: Appendix: Q3 2024 Variances
Appendix: Q3 2024 Variances 17
Slide 18: Consolidated: Q3/24 vs. Q3/23 Normalized EBITDA
Consolidated: Q3/24 vs. Q3/23 Normalized EBITDA1,2 ($ millions) 0 46 294 -4 252 Q3 2023 Corp/ Q3 2024 Midstream Utilities Actual Other Actual ▲ Global Exports performance ▲ Partial settlement of WGL’s post-retirement ▲ Blythe ▲ Addition of Pipestone Assets (Pipestone I + benefit pension plan ▼ G&A,
Slide 19: Consolidated: Q3/24 vs. Q3/23 Income Before Income Taxes
Consolidated: Q3/24 vs. Q3/23 Income (Loss) Before Income Taxes1 ($ millions) -31 40 20 62 -51 Q3 2023 Corp/ Q3 2024 Midstream Utilities Actual Other Actual ▲ Lower unrealized losses on hedging ▲ Primarily same factors impacting ▼ Higher interest expense ▲ Higher gains on asset sales (Central normal
Slide 20: Midstream: Q3/24 vs. Q3/23
Midstream: Q3/24 vs. Q3/23 Normalized EBITDA1,2 ($ millions) -18 185 -4 -11 181 Q3 2023 Q3 2024 Midstream Actual Actual ▲ Global Exports performance ▲ Addition of Pipestone Assets (Pipestone I + Dimsdale Storage) ▲ Frac & Liquids Handling volumes/margins ▲ North Pine performance ▼ MVP equity earning
Slide 21: Utilities: Q3/24 vs. Q3/23
Utilities: Q3/24 vs. Q3/23 Normalized EBITDA1,2 ($ millions) 117 46 71 Q3 2023 Q3 2024 Utilities Actual Actual ▲ Partial settlement of WGL’s post-retirement benefit pension plan ▲ ARP modernization investments ▲ Lower O&M/G&A ▼ Retail Performance (compared to outsized performance last year) ▼ Asset
Slide 22: Corporate/Other: Q3/24 vs. Q3/23
Corporate/Other: Q3/24 vs. Q3/23 Normalized EBITDA1,2 ($ millions) -5 -4 -4 Q3 2023 Q3 2024 Corporate Actual Actual ▲ Blyth performance ▼ Higher G&A due to LTIP accruals on AltaGas’ rising stock price 1) Non-GAAP financial measure; see discussion in the advisories; 2) Numbers may not add due to roun
Slide 23: 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