2011 Annual Meeting of Shareholders of AltaGas Ltd. April 20, 2011
Agenda Annual Report to Shareholders Election of Directors Appointment of the Auditors Further Business Update from David Cornhill, Chairman and CEO 2
Annual report to shareholders 2010 Financial Statements and Auditors Report 3
Election of directors Eight nominees for election as directors at this meeting David W. Allan L. Hugh A. Daryl H. Cornhill Edgeworth Fergusson Gilbert Robert B. Myron F. David F. M. Neil Hodgins Kanik Mackie McCrank 4
Election of directors Motion That the persons nominated be the nominees for the directors of AltaGas Ltd. 5
Appointment of auditors Motion To appoint Ernst & Young LLP as the auditors of AltaGas Ltd. until the next Annual meeting of Shareholders or until a successor is appointed and that the remuneration of such auditors be fixed by AltaGas…
Forward-looking information Certain information presented today may constitute forward- looking statements with respect to AltaGas Ltd. Such statements reflect the Companys current expectations, estimates, projections and assumptions.…
Were in a good place David Cornhill Chairman and Chief Executive Officer 8
AltaGas vision To be a leading North American energy infrastructure company with a focus in Canada and the northern and western United States 9
Were a leading energy infrastructure company Gas Asset Base Growth 1.6 Bcf/d interests in six extraction 120 Mmcf/d Gordondale gas plant under facilities development 1.2 Bcf/d gas processing 250 Mmcf/d Harmattan Co-stream project…
Stable cash flow and earnings EBITDA: 244 million Operating income: 152 million Funds from operations: 195 million Net income: 97 million Normalized FFO payout: 55.6% Net income per share: 1.19 Dividend: 1.32 11
Natural gas is a good place to be Source: Ziff Energy Group 12
Our 2010 Gas accomplishments Expansions Received ERCB approval to construct facilities to remove ethane Harmattan Co-Stream and NGL for over 250 Mmcf/d of NGTL gas Added 18 Mmcf/d of sour gas processing capacity for Montney…
Optimizing assets - Harmattan Co-stream On time, on budget Equipment ordered, pipeline construction begins June 2011 In service Q1 2012 60 percent of capital costs contractually fixed 250 Mmcf/d, 100 km pipeline increases…
The Montney is a good place to be - Gordondale 15
Henderson Pipeline and Gordondale Gas Plant Clearing pipeline right-of-way 120 Mmcf/d deep cut Henderson Pipeline: 10 percent of volumes processed by mid-2011 Gordondale Plant: in-service late-2012 Two-thirds of capital costs…
The Montney is a good place to be - Younger 17
Optimizing and growing - Younger On time, on budget Operational by Q4 2011 30 percent interest in 250 Mmcf/d pipeline project to bring liquid-rich gas from the Montney area Increase throughput approximately 15 percent Capital…
Power generation is a good place to be North American electricity generation forecast to increase substantially over the next 20 years Natural gas and renewable power generation capacity forecast to increase substantially over the…
Power - Our 2010 accomplishments Our Growth Projects What weve accomplished this year 60-yr EPA with BC Hydro and IBA signed with First Nations in May. Forrest Kerr Camp construction and detailed engineering completed on turbine…
Run-of-river is a good place to be Forrest Kerr Mobilized camp March 1, 2011 Commenced portal excavation and blasting 195 MW capacity 55 percent capacity factor 60 year EPA with BC Hydro, 100 percent CPI indexed Expect…
Predictable, sustainable hydrological data 900 800 700 600 Discharge (m/s) Water flow used for generation 500 400 300 200 Design discharge of 252 m/s 100 Minimum release of 10 m/s 0 Jan Feb Mar Apr May…
Construction activities - Tunneling 23
Headwork and intake area 24
Construction activities - Tunneling Total linear meters of tunneling: 4,870m Tunnel dimension: 10mX10m Three portals/access points Power tunnel intake Access tunnel Tailrace discharge Keys to successful tunneling: Consistent…
Bridge work one of five to be retrofitted 26
Aerial view of camp site and staging areas 27
Forrest Kerr Camp 28
Growing and diversifying our power business McLymont and Volcano Creek run-of-river Two developments totaling approximately 80 MW capacity In-service estimate: 2015-2016 Negotiations underway Permitting, engineering and planning…
Utilities are a good place to be 30
Utilities - our 2010 accomplishments Our growth projects What weve accomplished this year Rate base growth Invested 57 million, growing rate base by 15 percent Added 2,000 customers to reach almost 75,000 customers across Customer…
Alberta investment growing 32
Nova Scotia Bedford Project Expansion 30 million, five-year expansion to Fairview, Clayton Park, Bayers Lake & Bedford Access new home and business construction, conversions 1,600 new customers by 2015 33
Utilities forecast strong rate base growth Nine percent annual rate base growth 2011 2016 34
2011 Milestones Our growth projects Business Planned accomplishments for 2011 Complete access and surge tunnels, start construction Forrest Kerr Power on power-house, power tunnel and intake structure; 75 percent of costs…
Were a good place to invest Growing earnings Adding highly contracted, long- life infrastructure Enhancing earnings stability 22% 23% 5% 34% 36
Were in a good place financially Strong balance sheet Balanced debt maturity profile 37
Funding our 2011-2016 committed capital 1,100mm committed capital 1,200mm FCF (past 3 year average) 180mm DRIP 700mm dividends (at current rate) 975mm current bank liquidity 1.8B in uses 2.4B in sources Ample liquidity to…
AltaGas is a good place to be Strong, diversified asset base of gas, Attractive portfolio of power and utilities energy infrastructure Capital growth focused on stable, long- assets term contracted projects and regulated asset…
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