AltaGas Ltd. · TSX:ALA
AltaGas — Q2 2004 Earnings Presentation
16 slides from AltaGas's earnings presentation, September 2004
Slide 1: 10 Years of Extraordinary Growth: Second Quarter 2004 Update
ALTAGAS 10 Years of Extraordinary Growth Second Quarter 2004 Update September, 2004
Slide 2: Forward-Looking Information
Forward-Looking Information 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
Slide 3: Q2 Financial Highlights
Q2 Financial Highlights Converted from corporate structure to AltaGas Income Trust on May 1, 2004 Commenced monthly cash distributions of $0.15 per unit Successfully closed public offering of 4,730,000 trust units at $18.70 for gross proceeds of $88.5 million Implemented Premium Distribution
Slide 4: Q2 Operational Highlights
Q2 Operational Highlights Tied in 253 wells in the first half of 2004 compared to 147 well tie-ins during the first half of 2003 Entered into agreement to acquire PremStar Energy Canada Ltd. and its subsidiaries, a leading energy agency business, for approximately $22.0 million $6.0 million sp
Slide 5: Financial Highlights
Financial Highlights NET INCOME PER UNIT Net Income Per Unit ($) Q2 2004 up 66.7% over Q2 2003 First six months 2004 up 1.00 28.9% over same period 2003 0.90 0.80 0.70 Q2/04 absorbed one time 0.60 costs 0.50 $3.5 million in trust conversion 0.40 costs 0.30 $1.7 million in turnaround 0.20
Slide 6: Net Revenue
Net Revenue NET REVENUE Second quarter ($ Millions) $59.5 million in 2004, 16.2% increase over 2003 220 200 First six months 180 $116.7 million in 2004, 160 10.5% increase over 2003 140 120 100 80 60 40 20 0 2001 2002 2003 2003 2004 Q1 54.4 57.2 Q2 51.2 59.5 Annual 135.0 169.9 219.9 6
Slide 7: Net Revenue by Segment
Net Revenue by Segment NET REVENUE BY SEGMENT Gathering and Processing ($ Millions) Increased throughput in field gathering and processing, extraction and transmission 200 Acquisitions and expansions 150 Energy Services Genesee energy contract 100 Higher power prices 50 Natural Gas Dis
Slide 8: Funds from Operations
Funds from Operations FUNDS FROM OPERATIONS Second quarter ($ Millions) $23.9 million in 2004, 14.9% increase over 2003 100 First six months 80 $45.5 million in 2004, 6.6% increase over 2003 60 40 20 0 2001 2002 2003 2003 2004 Q1 21.9 21.6 Q2 20.8 23.9 Annual 50.2 70.8 90.2 8
Slide 9: Net Income
Net Income NET INCOME Second quarter ($ Millions) $11.9 million in 2004, 75.0% increase over 2003 40 First six months $22.9 million in 2004, 34.7% 30 increase over 2003 20 Two months of operating as an income trust 10 0 2001 2002 2003 2003 2004 Q1 10.2 11.0 Q2 6.8 11.9 Annual 19.2 29.4 38.
Slide 10: Seasonality with Consistent Growth
Seasonality with Consistent Growth NET INCOME BY QUARTER Q2 2004 is strongest Q2 in ($ Millions) AltaGas’ history On track for another record 12 year 9 Expect each quarter to surpass last year 6 3 0 Q1 Q2 Q3 Q4 2002 7.6 4.9 5.7 11.2 2003 10.2 6.8 9.3 12.0 2004 11.0 11.9 10
Slide 11: 2004 Financial Structure
2004 Financial Structure Trust stability rating DEBT AS A PERCENTAGE OF S&P: In process TOTAL CAPITAL DBRS: STA-3 (middle) 60% Reaffirmed investment grade rating on medium term notes 50% Target Range S&P: BBB- 40% DBRS: BBB(low) 30% Capital structure June 30, 2004 39.9% 20% Trust t
Slide 12: 2004 Opportunities - Gathering and Processing
2004 Opportunities - Gathering and Processing GAS WELL COMPLETIONS Internal growth with low investment IN THE WCSB numerous plant expansions underway or anticipated 16,000 Strong E&P activity 14,000 tied in 253 wells in first half 2004 12,000 compared to 147 in first half 2003 10,000 Acqui
Slide 13: 2004 Opportunities - Energy Services
2004 Opportunities - Energy Services POWER PRICE RECEIVED Power Services COMPARED TO POWER POOL 478 MW of long term PRICE ($/MWh) conservatively priced power supply including 25 MW of gas fired power peaking capacity $90 $80 substantial portion of power $70 margins locked in for 2004 $60 $50
Slide 14: 2004 Opportunities – Natural Gas Distribution
2004 Opportunities – Natural Gas Distribution Expansion of existing franchise NUMBER OF GAS DISTRIBUTION customer base CUSTOMERS (AUI) customer base increasing on average by 2% per year 60,000 continue to see healthy growth 55,000 particularly in urban areas 50,000 Heritage Gas 45,000 deli
Slide 15: 2004 Outlook
2004 Outlook Expect growth to continue Gathering and Processing ahead of 2003 producers active, significant well tie-in activity impact of acquisitions and expansions Energy Services ahead of 2003 power pricing and operations improving Premstar acquisition Natural Gas Distributio
Slide 16: ALTAGAS
ALTAGAS 10 Years of Extraordinary Growth Second Quarter 2004 Update September, 2004