AltaGas Ltd. · TSX:ALA

AltaGas — Q3 2004 Earnings Presentation

18 slides from AltaGas's earnings presentation, November 2004

1. Slide 1: 10 Years of Extraordinary Growth - Third Quarter 2004 Update

   ALTAGAS 10 Years of Extraordinary Growth Third Quarter 2004 Update November, 2004

2. Slide 2: Forward-Looking Information

   Forward-Looking Information ƒ Certain information in this presentation is forward-looking. Such information is subject to certain risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated in the forward-looking information. These risks and unce

3. Slide 3: Q3 Highlights

   Q3 Highlights ƒ Acquired a 48 2/3 percent interest in the Edmonton ethane extraction plant for approximately $42.1 million ƒ Entered into a capital lease for the right to 25 megawatts of gas fired power peaking capacity ƒ Tied in 333 wells in the first nine months of 2004 compared to 227 well tie-in

4. Slide 4: Q3 Highlights

   Q3 Highlights ƒ David Cornhill announced decision to step down as CEO in 2006 ƒ will stay on as Chairman of the Board ƒ will continue to hold a significant investment in AltaGas ƒ Enbridge sold its 36 percent interest in AltaGas at an average price of $19.78 per unit 4

5. Slide 5: Net Income

   Net Income NET INCOME ƒ Third quarter ($ Millions) ƒ $17.1 million in 2004, 85.9% increase over 2003 40 ƒ Full quarter of operating as an income trust 30 ƒ First nine months ƒ $40.0 million in 2004, 52.1% 20 increase over 2003 10 ƒ Absorbed $6.1 million in one time costs 0 2001 2002 2003 2003 2004 ƒ

6. Slide 6: Net Income Per Unit

   Net Income Per Unit NET INCOME PER UNIT ƒ Net Income Per Unit ($) ƒ Q3 2004 up 65.0% over Q3 2003 1.00 ƒ First nine months 2004 up 0.90 43.1% over same period 2003 0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00 2001 2002 2003 2003 2004 Q3 0.20 0.33 Q2 0.15 0.25 Q1 0.23 0.24 Annual 0.50 0.70 0.84 6

7. Slide 7: Seasonality with Consistent Growth

   Seasonality with Consistent Growth NET INCOME BY QUARTER ƒ Q3 2004 is strongest Q3 in ($ Millions) AltaGas’ history ƒ Q4 historically the strongest 18 quarter 15 ƒ On track for another record 12 year 9 6 3 0 Q1 Q2 Q3 Q4 2002 7.6 4.9 5.7 11.2 2003 10.2 6.8 9.2 12.0 2004 11.0 11.9 17.1 7

8. Slide 8: Net Revenue

   Net Revenue NET REVENUE ƒ Third quarter ($ Millions) ƒ $61.5 million in 2004, 15.4% increase over 2003 220 200 ƒ First nine months 180 ƒ $178.2 million in 2004, 160 140 12.1% increase over 2003 120 100 80 60 40 20 0 2001 2002 2003 2003 2004 Q3 53.3 61.5 Q2 51.2 59.5 Q1 54.4 57.2 Annual 135.0 169.9 2

9. Slide 9: Net Revenue by Segment

   Net Revenue by Segment NET REVENUE BY SEGMENT ƒ Gathering and Processing ($ Millions) ƒ Increased volumes in all components ƒ Acquisitions and expansions ƒ Energy Services 200 150 ƒ Genesee energy contract 100 ƒ Higher power prices 50 ƒ Natural Gas Distribution ƒ Increased customer base 0 2001 2002

10. Slide 10: EBITDA

    EBITDA EBITDA ƒ Third quarter ($ Millions) ƒ $33.8 million in 2004, 17.0% increase over 2003 100 ƒ First nine months 80 ƒ $92.8 million in 2004, 6.7% increase over 2003 60 40 20 0 2001 2002 2003 2003 2004 Q3 28.9 33.8 Q2 27.4 27.8 Q1 30.7 31.2 Annual 69.9 94.8 121.9 10

11. Slide 11: Funds from Operations

    Funds from Operations FUNDS FROM OPERATIONS ƒ Third quarter ($ Millions) ƒ $28.5 million in 2004, 36.4% increase over 2003 100 ƒ First nine months 80 ƒ $74.7 million in 2004, 17.5% increase over 2003 60 40 20 0 2001 2002 2003 2003 2004 Q3 20.9 28.5 Q2 20.8 24.1 Q1 21.9 22.1 Annual 50.2 70.8 90.2 Q1/

12. Slide 12: Capital Expenditures

    Capital Expenditures ƒ $75.8 million in capital expenditures in first nine months of 2004 ƒ $68.5 million growth capital (includes $13.8 million capital lease) ƒ $4.3 million maintenance capital ƒ $3.0 million administration capital ƒ Additional ƒ $12.8 million invested in Taylor NGL Limited Partner

13. Slide 13: 2004 Financial Structure

    2004 Financial Structure ƒ Trust stability rating DEBT AS A PERCENTAGE OF ƒ S&P: SR-3 TOTAL CAPITAL ƒ DBRS: STA-3 (middle) 60% ƒ Rating on medium term notes ƒ S&P: BBB- 50% Target Range ƒ DBRS: BBB(low) 40% ƒ Capital structure 30% ƒ September 30, 2004 44% ƒ Trust target 45 - 50% 20% ƒ Historical tar

14. Slide 14: 2004 Opportunities - Gathering and Processing

    2004 Opportunities - Gathering and Processing GAS WELL COMPLETIONS ƒ Internal growth with low investment IN THE WCSB ƒ $7.9 million spent in the field gathering and processing component in the first nine months of 2004 16,000 ƒ numerous plant expansions underway 14,000 or anticipated 12,000 ƒ $5.5 m

15. Slide 15: 2004 Opportunities - Energy Services

    2004 Opportunities - Energy Services POWER PRICE RECEIVED ƒ Power Services COMPARED TO POWER POOL ƒ 478 MW of long term PRICE ($/MWh) conservatively priced power supply ƒ includes 25 MW of gas fired power peaking capacity as of September 1, 2004 $90 $80 ƒ substantial portion of power margins locked

16. Slide 16: 2004 Opportunities – Natural Gas Distribution

    2004 Opportunities – Natural Gas Distribution ƒ Expansion of existing franchise NUMBER OF GAS DISTRIBUTION customer base CUSTOMERS (AUI) ƒ customer base increasing on average by 2% per year 60,000 ƒ continue to see healthy growth particularly in urban areas 55,000 50,000 ƒ Heritage Gas 45,000 ƒ deli

17. Slide 17: 2004 Outlook

    2004 Outlook ƒ Expect growth to continue ƒ Gathering and Processing ƒ ahead of 2003 ƒ producers active, significant well tie-in activity ƒ impact of acquisitions and expansions ƒ Energy Services ƒ ahead of 2003 ƒ power pricing and operations improving ƒ Premstar acquisition ƒ Natural Gas Distributio

18. Slide 18: ALTAGAS

    ALTAGAS 10 Years of Extraordinary Growth Third Quarter 2004 Update November, 2004

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