Slide 1: Q2 2024 Financial Results and Corporate Update
Q2 2024 Financial Results and Corporate Update Aug 1, 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 Key Highlights 2 Midstream Project Execution 3 Utilities Growth Opportunities 4 Second Quarter Financial Results 5 MVP Update 6 2024 Outlook and Guidance 3
Slide 4: Q2/2024 Highlights
1 Q2/2024 Highlights Financial Performance Risk Management Normalized EBITDA1 Normalized EPS1 $0.14 REEF Long-term Contracting New Time Charter ($MM) $295 $239 $0.07 Additional +18% Phase I Capacity New VLGC time charter agreement in Committed Q2/24 for 2026 year-end delivery 87% H2/24 exports tolle
Slide 5: Midstream Project Execution
2 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 FEED Site Clearing Site Clearing Project Execution Project Execution EPC C
Slide 6: Proven Track Record of Midstream Project Execution
2 Proven Track Record of Midstream Project Execution On-time and On-budget Legend Key Project Project Targeted Completion Delivery Metrics Execution Actual Completion NEBC Program I -8 % 13 Townsend I Under Budget Total Projects 198 MMSCFD facility Project FID Completed NEBC Program II -14 % Under
Slide 7: Utilities Growth Opportunities
3 Utilities Growth Opportunities U.S. Natural Gas Demand Cost of Electricity Over Natural Gas Gas-fired Power Demand & Load Growth 90 6.0x 45.0 Data Center demand Coal Retirements 85 5.0x 35.0 80 4.0x U.S. Average Bcf/d 25.0 75 3.0x Bcf/d 70 2.0x 15.0 1.0x 65 5.0 0.0x 2014 2015 2016 2017 2018 2019 2
Slide 8: Midstream – Q2/24 Performance
4 Midstream – Q2/24 Performance Q2/24 Midstream results exceeded expectations, supported by record global exports Normalized Midstream EBITDA1 Global Exports 150,000 Global Exports Volumes Record global exports 125,000 performance. +31% +7% 100,000 (Bbls/d) Continued growth across operating 75,0
Slide 9: Utilities – Q2/24 Performance
4 Utilities – Q2/24 Performance Q2/24 Utilities results were in line with expectations, despite warmer weather in Michigan and D.C. Normalized Utilities EBITDA1 Cost Management Initiatives Rate base growth through modernization Ongoing focus on cost management efforts across our investments and
Slide 10: Mountain Valley Pipeline Update
5 Mountain Valley Pipeline Update The Pipeline Highly Attractive Asset Critical Infrastructure Serving Growing Natural Gas Markets Connecting low-cost gas to strong regional demand, including new emerging demand. MVP – Bradshaw Compressor Station Long-term 20-Year Contracted Cash Flows with IG s
Slide 11: 2024 Guidance Puts and Takes
6 2024 Guidance Puts and Takes Well-positioned to achieve our 2024 guidance figures of Normalized EPS1 of $2.05 - $2.25 and Normalized EBITDA1 2024 Guidance Intact of $1.675 billion to $1.775 billion. Changes Since Guidance was Set Normalized EBITDA1 Guidance ($ millions) Global Export Performance $
Slide 12: 2024 Capital Spending Allocation
6 2024 Capital Spending Allocation 2024 Capital Budget: $1.3 Billion Increasing Midstream Allocation Largest 2024 capital outlays include Utilities Strong organic growth opportunities across both platforms – ARP, System Betterment, and the Pipestone II driving healthy competition for capital. Attrac
Slide 13: Executing on Strategic Priorities to Compound Long-term Value
Executing on Strategic Priorities to Compound Long-term Value Normalized Earnings Normalized Net Debt2 / Stock Per Share1 EBITDA1 Normalized EBITDA Performance 2019 2020 2021 2022 2023 2024E 2018 2019 2020 2021 2022 2023 2024E ALA-CA Midstream Index 2019 2020 2021 2022 2023 2024E LDC Index Blended I
Slide 14: Appendix: Q2 2024 Variances
Appendix: Q2 2024 Variances 14
Slide 15: Consolidated: Q2/24 vs. Q2/23 Normalized EBITDA
Consolidated: Q2/24 vs. Q2/23 Normalized EBITDA1,2 ($ millions) 20 -5 295 41 239 Q2 2023 Corp/ Q2 2024 Midstream Utilities Actual Other Actual ▲ Global Exports performance ▲ Lower O&M/G&A ▼ Primarily higher G&A due to LTIP ▲ F&LH volumes/margins ▲ ARP modernization investments accruals on AltaGas’ r
Slide 16: Consolidated: Q2/24 vs. Q2/23 Income Before Income Taxes
Consolidated: Q2/24 vs. Q2/23 Income (Loss) Before Income Taxes1 ($ millions) -135 182 -74 -19 -46 Q2 2023 Corp/ Q2 2024 Midstream Utilities Actual Other Actual ▼ Lower unrealized gains on hedging ▼ Lower unrealized gains on hedges ▼ Primarily same factors impacting ▼ DD&A ▼ Restructuring costs norm
Slide 17: Midstream: Q2/24 vs. Q2/23
Midstream: Q2/24 vs. Q2/23 Normalized EBITDA1,2 ($ millions) 41 175 -18 134 -11 Q2 2023 Q2 2024 Midstream Actual Actual ▲ Global Exports performance ▲ FL&H volumes/ margins ▲ Addition of Pipestone (incl. Dimsdale) ▲ Absence of 2023 Wildfires ▼ Contingency/commercial settlement in Q2/23 ▼ O&M/G&A ▼ E
Slide 18: Utilities: Q2/24 vs. Q2/23
Utilities: Q2/24 vs. Q2/23 Normalized EBITDA1,2 ($ millions) 122 20 102 Q2 2023 Q2 2024 Utilities Actual Actual ▲ Lower O&M/G&A ▲ ARP modernization investments ▲ Retail power volume/margins ▲ DC rate case ▼ MD and VA (2023) rate cases ▼ Asset optimization ▼ Weather in Michigan 1) Non-GAAP financial
Slide 19: Corporate/Other: Q2/24 vs. Q2/23
Corporate/Other: Q2/24 vs. Q2/23 Normalized EBITDA1,2 ($ millions) 3 -5 -2 Q2 2023 Q2 2024 Corporate Actual Actual ▼ 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 rounding. 19
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