Slide 1: Q2/23 Earnings Summary
Q2/23 Earnings Summary July 28, 2023
Slide 2: Forward-Looking Information
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", "c
Slide 3: Q2 2023 Financial Results Summary
Q2 2023 Financial Results Summary $239MM $182MM $0.06 $0.47 Normalized Income Before Normalized GAAP EBITDA1 Income Taxes EPS1 EPS 1. Non-GAAP financial measure; see discussion of nearest GAAP measures included in the Q2 2023 earnings news release and MD&A available at www.altagas.ca 3
Slide 4: Q2 2023 Highlights
Q2 2023 Highlights Financial: Normalized EPS1 was $0.06 in the second quarter of 2023 compared to $0.14 in the second quarter of 2022, while GAAP EPS2 was $0.47 in the second quarter of 2023 compared $0.12 in the second quarter of 2022. Results were inclusive of approximately $7 million of wildfir
Slide 5: Q2 2023 Highlights
Q2 2023 Highlights Corporate Developments: Effective July 1, 2023, Vern Yu joined as AltaGas’ President and Chief Executive Officer and was appointed to the Board of Directors. Mr. Yu has over three decades of experience in energy infrastructure, including the Utilities and Midstream sectors, acro
Slide 6: 2023 Guidance Seasonality Update
2023 Guidance Seasonality Update After the first half of 2023, AltaGas is reiterating its 2023 guidance with some modest adjustments in expected quarterly contribution due to timing on certain items. Normalized EBITDA1 Guidance 2023 Guidance Update ($ millions) 2023 full year normalized EBITDA guida
Slide 7: 2023 Guidance
2023 Guidance Growth in Base Business Underpins Strong EPS Growth Strategy focused on growing earnings per share and creating durable long-term earnings growth. Normalized EBITDA1,2 Guidance Normalized EPS1,3 Guidance ($ millions) $1.85 - $2.05 $1.89 $1,537 $1,500 - $1,600 Midstream: ~39% Midstream:
Slide 8: Net Debt and Interest Expense Reconciliation – Q2 2023
8 Net Debt and Interest Expense Reconciliation – Q2 2023 Year-Over-Year Change in Interest Expense2 Q2/23 vs. 2022 Year-End Net Debt1 Reduction2 ($ millions) ($ billions) 1.9 3.9 6.8 93 1.1 9.3 5 0.5 76 Hybrids issued in 7.7 August 2022 to redeem Preferred Shares Q2 2022A Higher Higher Debt Hybrid F
Slide 9: Consolidated: Q2/23 vs. Q2/22
Consolidated: Q2/23 vs. Q2/22 Normalized EBITDA1,2 ($ millions) 276 -32 244 -11 6 239 1 Q2 2022 Asset Sales & Corp/ Q2 2023 Midstream Utilities Actual3 One-Time Items Other Actual ▼ Sale of Alaska Utilities ▼ Lower marketing contribution ▲ ARP spending ▲ Higher corporate costs ▼ Sale of Aitken Creek
Slide 10: Consolidated: Q2/23 vs. Q2/22
Consolidated: Q2/23 vs. Q2/22 Income Before Income Taxes1 ($ millions) 114 -17 182 Unchanged 85 Q2 2022 Corp/ Q2 2023 Midstream Utilities Actual Other Actual ▼ Primarily same factors impacting ▲ Higher unrealized gains on hedging ▼ Higher interest expense normalized EBITDA ▲ Gain on disposition from
Slide 11: Utilities: Q2/23 vs. Q2/22
Utilities: Q2/23 vs. Q2/22 Normalized EBITDA1,2 ($ millions) 116 50 -15 -2 4 -1 101 102 Asset Sales & Q2 2022 Q2 2023 One-Time Items WGL SEMCO Retail Actual Actual ▲ ARP spending ▼ Warmer weather ▼ Unfavorable swap timing ▼ Sale of Alaska Utilities ▲ Virginia rate case ▼ Higher G&A impacts ▲ Favorab
Slide 12: Utilities: Q2/23 vs. Q2/22
Utilities: Q2/23 vs. Q2/22 Income Before Income Taxes1 ($ millions) 31 105 -2 85 -9 Q2 2022 Q2 2023 WGL SEMCO Retail Actual Actual ▲ Higher unrealized gains on hedging ▼ Primarily same factors impacting ▲ Higher unrealized gains on hedging ▲ Primarily same factors impacting normalized EBITDA ▼ Prima
Slide 13: Midstream: Q2/23 vs. Q2/22
Midstream: Q2/23 vs. Q2/22 Normalized EBITDA1,2 ($ millions) 163 -18 145 -11 134 Q2 2022 Q2 2023 Asset Sales & One-time Items Midstream Actual3 Actual ▼ Sale of Aitken Creek ▼ Lower marketing contribution ▼ Wildfires ▼ Lower contingency release ▼ Lower Global Exports margins due to higher tolling vo
Slide 14: Midstream: Q2/23 vs. Q2/22
Midstream: Q2/23 vs. Q2/22 Income Before Income Taxes1 ($ millions) -7 Unchanged 181 181 -8 Q2 2022 Q2 2023 Midstream Actual Actual ▲ Higher unrealized gains on hedges ▼ Primarily same factors impacting normalized EBITDA 1. Numbers may not add due to rounding. 14
Slide 15: Corporate/Other: Q2/23 vs. Q2/22
Corporate/Other: Q2/23 vs. Q2/22 Normalized EBITDA1,2 ($ millions) 6 3 -3 Q2 2022 Q2 2023 Corporate Actual Actual ▲ Higher corporate costs allocation to business units ▲ Lower employee incentive plan expense 1. Non-GAAP financial measure; see discussion in the advisories. 2. Numbers may not add due
Slide 16: Corporate/Other: Q2/23 vs. Q2/22
Corporate/Other: Q2/23 vs. Q2/22 Loss Before Income Taxes1 ($ millions) -87 -17 -104 Q2 2022 Q2 2023 Corporate Actual Actual ▼ Higher interest expense ▼ CEO transition costs ▲ Primarily same factors impacting normalized EBITDA 1. Numbers may not add due to rounding. 16
Slide 17: One Strong Platform Focused on Connecting Customers and Markets
One Strong Platform Focused on Connecting Customers and Markets Investing for the Benefit of all Stakeholders Integrated Midstream Business – from wellhead to global markets Gas Gathering NGL Extraction Transportation, Global Wellhead & Processing Export Markets & Fractionation Storage& Rail Logisti
Slide 18: Contact Information
Contact Information For more information visit www.altagas.ca or reach out to one of the following: Jon Morrison Adam McKnight Daine Biluk Senior Vice President, Corporate Director, Investor Relations Director, Corporate Development and Development and Investor Relations Adam.McKnight@altagas.ca Inv