Altagas Ltd. · TSX:ALA
Altagas — Q2 2025 Earnings Presentation
25 slides from Altagas's earnings presentation, Aug 1, 2025
Slide 1: Q2 2025 Financial Results and Corporate Update
Q2 2025 Financial Results and Corporate Update August 1, 2025
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 Q2 2025 Achievements & Strategy Execution 2 REEF and Pipestone II Project Updates 3 Macro Environment 4 2025 Business Plan 5 Q2 2025 Segment Results & Highlights 6 2025 Outlook & Strategy 7 AltaGas Value Proposition 3
Slide 4: Q2/2025 Highlights
1 Q2/2025 Highlights Financial Performance Business De-Risking Normalized EBITDA1,2 Normalized NormalizedEPS EPS 1,31 Global Export Contracting WGL Regulatory Activity ($MM) ($/share) Pembina tolling agreement for 10,000 Filed VA rate case on July 31 with ask $0.27 $342 Bbl/d in 2026 and 10,000
Slide 5: REEF Update
2 REEF Update Milestones Cleared To-Date Delivery 2024 2025 2026 Jetty Construction Final Investment Decision FEED Timeline Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Site Clearing Commercial Contracting EPF1 Site Prep. Project Execution Uplands Cost Exposure Installation ~70% project costs committed or Up
Slide 6: REEF: Open Market Access Built for Phased Growth
2 REEF: Open Market Access Built for Phased Growth REEF Build to Scale A Optimization 1 • REEF designed to add cost-effective phased volumes by • Small project to optimize throughput by additional 15-20 kbd of propane. leveraging common infrastructure (dock, rail, utilities). Includes adding one v
Slide 7: Pipestone II Update
2 Pipestone II Update Milestones Cleared To-Date Delivery 2024 2025 Final Investment Decision Site Clearing Timeline Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FEED Acid Gas Wells Gathering System Acid Gas Wells Gas Gathering Project Execution Facility EPC Contracting ~100% project work executed or under firm price EP
Slide 8: Global LPG Demand Growth Backstopped by Top Tier Resource
3 Global LPG Demand Growth Backstopped by Top Tier Resource Asian LPG Demand Outlook LPG Demand Driven by PDH Build Outs in China 4.0 Other APAC India 1.6 3.5 Japan South Korea 1.4 China PDH C3 Demand Capacity China 1.2 3.0 1.0 South Korea (MMBbl/d) 2.5 0.8 India (mmBbl/d) 2.0 0.6 Other 1.5 0.4 0.2
Slide 9: Montney Economics Among Strongest in North America
3 Montney Economics Among Strongest in North America The Montney is the growth engine of the WCSB, driven by high liquids yields and high productivity wells North American Gas Plays - Half Cycle Economics1,2 WCSB Natural Gas Supply1 AB Montney Core Montney Core Other Nat Gas 22% NEBC Montney Core Mo
Slide 10: Strong Demand for Gas Utilities Investments
3 Strong Demand for Gas Utilities Investments Modernization Capital Drives Rate Base Growth Large Backlog of Pipe Replacement 5,000 Other Plastic Protected Steel Iron $6 US$ Billions (Rate Base) 4,000 $5 Miles of Pipe 3,000 $4 2,000 $3 1,000 Montney $2 +2.7 Bcf/d 2019 2020 2021 2022 2023 2024 2025E
Slide 11: 2025 Business Plan
4 2025 Business Plan Long-term Strategic Priorities Remain Unchanged Focus on growing, de-risking, and strengthening the enterprise. 1 2 3 Optimize Assets For Balance Sheet Active De-Risking Maximum Returns Deleveraging Increase throughput, extend asset lives Execute long-term commercial contracting
Slide 12: Midstream – Q2/25 Performance
5 Midstream – Q2/25 Performance Q2/25 Midstream results exceeded expectations, supported by record global exports Normalized Midstream EBITDA1 Global Exports 150,000 RIPET Ferndale Record second quarter global exports 125,000 performance. Global Export +23% +4% 100,000 Volumes (bbl/d) Continued
Slide 13: Utilities – Q2/25 Performance
5 Utilities – Q2/25 Performance Q2/25 Utilities results in-line with expectations driven by modernization investments Normalized Utilities EBITDA1 Capital Investments Rate base growth through modernization $96MM directed to ARP and modernization investments and new customer additions. initiative
Slide 14: 2025 Financial Guidance
6 2025 Financial Guidance Normalized EBITDA1,2 Guidance Normalized EPS1,3 Guidance ($ millions) $1,769 $1,775 - $1,875 Tailwinds / Headwinds $2.25 + Utilities cost management $2.10 - $2.30 $2.00 + Utilities asset optimization Midstream: ~44% Midstream: activity ~ 42% - 46% $1.75 + MVP equity earning
Slide 15: 2025 Capex Budget
6 2025 Capex Budget 2025 Capital Budget: $1.4 Billion Midstream Allocation Capital deployment reflects the continued strong growth Strong organic growth opportunities across both platforms – driving opportunities. Largest 2025 capital outlays include REEF, Pipestone II, healthy competition for capit
Slide 16: Leverage Targets
6 Leverage Targets Leverage Targets Trailing Metrics (Medium to Long-Term) (As of Q2/25) (including 50% 4.65x debt treatment for prefs + hybrids) 4.6x (including 50% debt treatment for prefs + hybrids) Adjusted Net Debt to Adjusted Net Debt to Normalized EBITDA1,2 Normalized EBITDA1,2 Calibrating on
Slide 17: AltaGas Value Proposition
7 AltaGas Value Proposition Diversified, Low-Risk Business Model with Visible Growth and Disciplined Capital Allocation Low Risk Energy Infrastructure Visible, Industry- Disciplined Capital 1 2 3 Platform Providing Stable and Leading Growth Allocation Growing Earnings / Cash Flows Robust energy fund
Slide 18: Execution Delivers Compounding Long-term Value
7 Execution Delivers Compounding Long-term Value Normalized Earnings Normalized Adjusted Net Debt1,2 / Share Price Per Share1 EBITDA1 Normalized EBITDA Performance Midstream Index LDC Index Blended Index ALA-CA 2018 2019 2020 2021 2022 2023 2024 2025E 2018 2019 2020 2021 2022 2023 2024 2025E 2018 20
Slide 19: Appendix: Q2 2025 Variances
Appendix: Q2 2025 Variances 19
Slide 20: Consolidated: Q2/25 vs. Q2/24
Consolidated: Q2/25 vs. Q2/24 Normalized EBITDA1,2 ($ millions) -5 40 252 12 342 295 Q2 2024 Corp/ Q2 2025 Utilities Midstream Actual Other Actual ▲ Pipeline modernization spending (ARPs in ▲ Strong global exports performance ▼ Corporate G&A WGL and SEMCO) (volumes and margins) ▲ Favorable weather (
Slide 21: Consolidated: Q2/25 vs. Q2/24
Consolidated: Q2/25 vs. Q2/24 Income (Loss) Before Income Taxes1 ($ millions) -9 217 226 64 -46 Q2 2024 Corp/ Q2 2025 Utilities Midstream Actual Other Actual ▲ Unrealized gains on risk management ▲ Unrealized gains on risk management ▼ Higher interest expense contracts contracts ▼ Foreign exchange l
Slide 22: Midstream: Q2/25 vs. Q2/24
Midstream: Q2/25 vs. Q2/24 Normalized EBITDA1,2 ($ millions) 40 -11 215 175 Q2 2024 Q2 2025 Midstream Actual Actual ▲ Strong global exports performance (volumes and margins) ▲ Increased NEBC processing volumes (incl. turnaround cost recoveries) ▲ MVP equity earnings (relative to AFUDC last year) ▲ L
Slide 23: Utilities: Q2/25 vs. Q2/24
Utilities: Q2/25 vs. Q2/24 Normalized EBITDA1,2 ($ millions) 12 134 122 Q2 2024 Q2 2025 Utilities Actual Actual ▲ Pipeline modernization spending (ARPs in WGL and SEMCO) ▲ Favorable weather (Michigan) ▲ Asset Optimization (WGL) ▼ Retail Performance (lower margins) Notes: 1) Non-GAAP financial measur
Slide 24: Corporate/Other: Q2/25 vs. Q2/24
Corporate/Other: Q2/25 vs. Q2/24 Normalized EBITDA1,2 ($ millions) -2 -7 -5 2 Q2 2024 Q2 2025 Corporate Actual Actual ▼ Corporate G&A Notes: 1) Non-GAAP financial measure; see discussion in the advisories; 2) Numbers may not add due to rounding. 24
Slide 25: 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 Bl