Altagas Ltd. · TSX:ALA
Altagas — Q1 2023 Earnings Presentation
18 slides from Altagas's earnings presentation, Apr 26, 2023
Slide 1: Q1/23 Earnings Summary
Q1/23 Earnings Summary April 26, 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", "will", "intend", "plan", "anticipate", "believe", "aim", "seek", "propose", "contemplate", "estimate",
Slide 3: Key Highlights
Key Highlights AltaGas Delivered Strong Results and Continues to Execute on Strategic Plan Normalized EPS1 was $0.98 in the first quarter of 2023 compared to $1.02 in the first quarter of 2022, while GAAP EPS2 was $1.58 in the first quarter of 2023 compared $1.27 in the first quarter of 2022. No
Slide 4: Key Highlights Continued
Key Highlights Continued On March 1, 2023, AltaGas closed the divestiture of its Alaskan Utilities to TriSummit Utilities Inc. for US$800 million (approximately CAD$1.1 billion), prior to closing adjustments. Sale proceeds were used to reduce debt while providing AltaGas with the financial flexibi
Slide 5: Q1 2023 Financial Results Summary
Q1 2023 Financial Results Summary $582MM $619MM $0.98 $1.58 Normalized Income Before Normalized GAAP EBITDA1 Income Taxes EPS1 EPS 1. Non-GAAP financial measure; see discussion of nearest GAAP measures included in the Q1 2023 earnings news release and MD&A available at www.altagas.ca 5
Slide 6: Consolidated: Q1/23 vs. Q1/22 Normalized EBITDA
Consolidated: Q1/23 vs. Q1/22 Normalized EBITDA1,2 ($ millions) 6 582 5 574 -19 16 555 Q1 2022 Asset Sales & Corp/ Q1 2023 Midstream Utilities Actual3 One-Time Items Other Actual ▼ Sale of Aitken Creek ▲ Higher Asian-to-Canadian ▲ Favorable USD/CAD FX ▲ Higher corporate costs ▼ Sale of Alaska Utilit
Slide 7: Consolidated: Q1/23 vs. Q1/22 Income Before Income Taxes
Consolidated: Q1/23 vs. Q1/22 Income Before Income Taxes1 ($ millions) 164 -28 619 504 -21 Q1 2022 Corp/ Q1 2023 Midstream Utilities Actual Other Actual ▼ Higher unrealized losses on hedging ▲ Gain on disposition from sale of the ▼ Higher interest expense ▲ Primarily same factors impacting Alaska Ut
Slide 8: Utilities: Q1/23 vs. Q1/22 Normalized EBITDA
Utilities: Q1/23 vs. Q1/22 Normalized EBITDA1,2 ($ millions) 3 -52 54 50 408 -12 401 396 Asset Sales & Q1 2022 SEMCO/ Q1 2023 One-Time Items WGL Retail Actual3 ENSTAR Actual ▲ Virginia rate case ▲ Debt Defeasance ▼ Higher natural gas costs ▼ Sale of Alaska Utilities ▲ Favorable USD/CAD FX ▲ Favourab
Slide 9: Utilities: Q1/23 vs. Q1/22 Income Before Income Taxes
Utilities: Q1/23 vs. Q1/22 Income Before Income Taxes1 ($ millions) -220 290 590 94 426 Q1 2022 SEMCO/ Q1 2023 WGL Retail Actual ENSTAR Actual ▲ Primarily same factors impacting ▲ Gain on disposition from sale of the ▼ Higher unrealized losses on hedging normalized EBITDA Alaska Utilities ▼ Primaril
Slide 10: Midstream: Q1/23 vs. Q1/22 Normalized EBITDA
Midstream: Q1/23 vs. Q1/22 Normalized EBITDA1,2 ($ millions) 16 183 174 -7 167 Q1 2022 Q1 2023 Asset Sales & One-time Items Midstream Actual3 Actual ▼ Sale of Aitken Creek ▲ Higher Asian-to-Canadian propane spreads ▲ Higher export volumes at RIPET & Ferndale ▲ Higher realized frac spreads ▼ Lower re
Slide 11: Midstream: Q1/23 vs. Q1/22 Income Before Income Taxes
Midstream: Q1/23 vs. Q1/22 Income Before Income Taxes1 ($ millions) 159 -21 138 -8 Q1 2022 Q1 2023 Midstream Actual Actual ▼ Higher unrealized losses on hedges ▲ Primarily same factors impacting normalized EBITDA 1. Numbers may not add due to rounding. 11
Slide 12: Corporate/Other: Q1/23 vs. Q1/22 Normalized EBITDA
Corporate/Other: Q1/23 vs. Q1/22 Normalized EBITDA1,2 ($ millions) -2 6 -8 Q1 2022 Q1 2023 Corporate Actual3 Actual ▲ Higher corporate cost allocations to business units ▲ Lower employee incentive plan expense 1. Non-GAAP financial measure; see discussion in the advisories. 2. Numbers may not add du
Slide 13: Corporate/Other: Q1/23 vs. Q1/22 Loss Before Income Taxes
Corporate/Other: Q1/23 vs. Q1/22 Loss Before Income Taxes1 ($ millions) -81 -28 -109 Q1 2022 Q1 2023 Corporate Actual Actual ▼ Higher interest expense ▼ Higher transaction costs on acquisitions/dispositions ▲ Primarily same factors impacting normalized EBITDA 1. Numbers may not add due to rounding.
Slide 14: Net Debt and Interest Expense Reconciliation – Q1 2023
14 Net Debt and Interest Expense Reconciliation – Q1 2023 Year-Over-Year Change in Interest Expense2 Q1/23 vs. 2022 Year-End Net Debt1 Reduction2 ($ millions) ($ billions) 5.1 3.0 6.3 20 105 9.3 1.1 5 71 Hybrids issued in August 2022 to 0.4 redeem Preferred 7.9 Shares Q1 2022A Higher Higher Debt Hyb
Slide 15: 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 16: 2023 Capital Allocation
2023 Capital Allocation Discipline Capital Growth Drives Strong Risk-adjusted Returns ~$930 million of invested capital expenditures1,2 focused on high-quality Utilities and Midstream projects driving strong risk-adjusted returns and long-term earnings growth, with additional $90 million of 2022 Mid
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