whats NEXT. AltaGas Income Trust Annual Meeting of Unitholders April 24, 2008 David W. Cornhill Chairman and Chief Executive Officer 1
Forward-looking information Certain information presented today may constitute forward-looking statements with respect to AltaGas Income Trust (the Trust). Such statements reflect the Trusts current expectations, estimates,…
2007 A successful year that positioned us for whats NEXT. Growth Strength Strategy
2007 Another successful year Strength *, ** 2007 figures calculated with adjustments due to negative non-cash tax resulting from the SIFT tax. 4
2007 Another successful year Growth Initiated Taylor acquisition Grew the gas business Grew the power business Increased renewable portfolio 5
Whats NEXT. NEXT for gas 6
Building on existing assets and executing on new initiatives Integrate businesses Diversify businesses New opportunities Focus areas 7
Harmattan growth initiatives announced today 55 million In service late 2008 New pipeline to Carstairs facility New/expanded gathering lines to west and north Efficiency enhancements Increasing processing volumes 25% - 30%…
Harmattan Complex 9
Focus on active gas production areas Montney Play Pouce Coupe facility 10
Pouce Coupe sour gas plant expansion 25 million, 20 Mmcf/d planned expansion to existing sweet processing site 11
Focus on unconventional gas sources Shale Mannville Horseshoe CBM Canyon CBM Potential Potential 12
Pursue new gas opportunities Natural gas storage Sarnia Burlington Storage Source: Union Gas website 13
Whats NEXT. NEXT for power 14
Integration, development and renewables Successful risk mitigation strategy Strong outlook for Alberta power market Increase balance and diversification of power portfolio Integrate and grow with gas business Continue…
Alberta gas-fired peakers Integration and diversification of AltaGas businesses Aerial photograph of AltaGas Bantry gas processing plant east of Calgary Peaking plant location 16
Gas-fired peaking plants Bantry 17
39 MW of gas peaking capacity 18
Continuing expansion into renewables 19
Bear Mountain Wind Park Enercon E-82 turbines in Germany 20
Bear Mountain under construction 21
Run-of-river projects Hydro generation Hydro generation under development Source: Google maps 22
Whats NEXT.
Strong results expected in 2008 Earnings per unit growth in mid-single digits Strong performance from base business Significant power and NGL production hedged at high prices Strong forward power prices and frac spreads…
Post-2010 transition Characteristics of a leading corporation Strong earnings growth Low payout ratio Low effective tax rate Growth in capital spending Investment-grade credit ratings 25
Post-2010 transition AltaGas is well-positioned for the transition 9 Earnings focused and strong track record of growing earnings 9 Low payout ratio target 65-75% of funds from operations 9 Low cash taxes expected in 2011 as…
Positioned for whats NEXT. Balanced asset base Excellent business outlook for gas and power Capable and experienced management team Excellent portfolio of high-quality growth opportunities Financially disciplined Well-positioned…