AltaGas Ltd. · TSX:ALA

AltaGas — Q2 2005 Earnings Presentation

12 slides from AltaGas's earnings presentation, October 2005

  1. Slide 1: Financial Overview Second Quarter 2005

    Financial Overview Second Quarter 2005 October, 2005

  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: Net income

    Net income ƒ Second quarter 2005 NET INCOME ($ Millions) ƒ $19.1 million or 61% increase over Q2-04 ƒ 35% increase over Q2-04, normalized for one-time conversion costs in Q2-04 70 65.8 60 ƒ $46.7 million YTD, or 104% increase over 50 46.7 first half 2004 38.3 40 29.4 ƒ Impact from PremStar and EEEP

  4. Slide 4: Net income per unit

    Net income per unit ƒ Increased monthly distributions NET INCOME PER UNIT ($) from $0.15 to $0.16 (from $1.80 to $1.92 annualized) 1.40 1.33 ƒ Second quarter 2005 1.20 ƒ Increase of 40% over Q2-04 1.00 0.84 0.87 ƒ YTD increase of 78% over first half 0.80 0.70 2004 0.60 0.50 ƒ Basic units outstanding

  5. Slide 5: Net revenue by segment

    Net revenue by segment ƒ Gathering and Processing NET REVENUE BY SEGMENT ƒ Acquisition of EEEP ($ Millions) ƒ Gains related to Taylor investment 255.5 250 ƒ Higher operating and administrative 220.3 costs due to growth 200 172.7 ƒ Energy Services 152.1 ƒ PremStar acquisition 150 135.0 ƒ Increased ma

  6. Slide 6: EBITDA

    EBITDA ƒ Second quarter 2005 EBITDA ($ Millions) ƒ $34.1 million or 23% increase over Q2-04 ƒ $80.4 million or 36% increase over 140 first half 2004 120 ƒ $71.2 million or 21% increase over 100 first half 2004 - excluding Q1 gains 80 from reduction in ownership of Taylor 60 40 20 0 2001 2002 2003 20

  7. Slide 7: Funds from operations

    Funds from operations ƒ Second quarter 2005 FUNDS FROM OPERATIONS ($ Millions) ƒ $30.4 million or 27% increase over Q2-04 ƒ $61.5 million YTD or 33% increase 120 over first half 2004 100 ƒ Excludes proceeds on disposition of Taylor units ($12.8 million) 80 ƒ Distributable cash for Q2-05 $27.9 60 mil

  8. Slide 8: 2005 financial structure

    2005 financial structure ƒ Committed to investment grade DEBT AS A PERCENTAGE OF rating TOTAL CAPITAL * ƒ Trust stability rating ƒ S&P: SR-3 60% ƒ DBRS: STA-3 (middle) Target Range ƒ Rating on medium-term notes 50% ƒ S&P: BBB- 40% ƒ DBRS: BBB (low) ƒ Capital structure 30% ƒ June 30, 2005 - 40.5% ƒ T

  9. Slide 9: Capital expenditures

    Capital expenditures ƒ $9.8 million in capital expenditures in Q2-05 ƒ $6.4 million growth ƒ $0.9 million administration ƒ $2.5 million maintenance ƒ $15.8 million in capital expenditures in first half 2005 ƒ $10.3 million growth ƒ $1.6 million administration ƒ $3.9 million maintenance ƒ Target grow

  10. Slide 10: 2005 outlook

    2005 outlook ƒ Full-year impacts of late 2004 acquisitions ƒ Power pricing: ƒ Robust compared to 2004 ƒ Favourable pricing on hedged power volumes and spot prices higher ƒ Forward market prices for 2006 significantly stronger ƒ Growth initiatives ƒ Disciplined and focused acquisition strategy ƒ High

  11. Slide 11: Opportunities to increase EBITDA

    Opportunities to increase EBITDA Strong industry fundamentals provide opportunities for prudent increases in EBITDA ƒ Gathering and Processing • Strong exploration and production activity in WCSB supports continued internal growth • Accretive acquisitions at reasonable valuations • Increased facilit

  12. Slide 12: AltaGas

    AltaGas

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