BMO Capital Markets Infrastructure and Utilities Conference February 7, 2013
Were a leading energy infrastructure company 2
Diversified energy infrastructure Gas Power Utilities Process and transport over 2.0 Generate over 550 MW power: Operate three Canadian Utilities and Bcf/d two Utilities in the U.S. - 353 MW coal in Alberta Produce 50,000 Bbls/d of…
Committed to investment grade credit ratings Stable investment grade ratings outlook for all entities Critical part of financing strategy to ensure good access to capital markets and strong liquidity Trend/Outlook/ Entity Rating…
Delivering superior growth Enterprise value 6.5 billion BBB (stable) credit ratings Market cap 3.7 billion Long-term, stable and predictable cash flow Diversified energy infrastructure in Canada Low payout ratio as a and the U.S.…
Key milestones in 2012 Delivering double digit growth in earnings and cash flow per share More than doubled rate base with SEMCO acquisition 20 percent increase in gas processing capability 13 percent increase in power…
Increasing our business diversification SEMCO increases weighting of Utilities in 2013 Equally balanced portfolio with NW projects on stream 2015 Pie charts represent total business EBITDA See Forward-Looking Statements &…
Growth in stable earnings and cash flow Over 80 percent from stable earnings 4% 10% Unhedged commodity Less than 10 Hedged commodity percent of 2013 6% 13% EBITDA generated Stable Earnings by commodity sales 86% 14% 15% 27%…
Delivering stable, predictable earnings and cash flow Seasonality of EBITDA from SEMCO and hydro assets provides a more consistent quarterly cash flow profile See Forward-Looking Statements & Information 9
Strong free cash flow Dividends underpinned Double digit compounded by regulated assets annual growth in cash flow * See Forward-Looking Statements & Information * Assumes 1.44 per share annual dividend 10
Disciplined financial track record Track record of managing the balance sheet prudently Historical External Equity Issuances (including common, DRIP, and Prefs) 11
Financial discipline Term Debt Maturity Positions Capital Structure* As at October 31, 2012 500 9% 400 Preferred Shares PNG 35% 300 Common SEMCO Shares 56% 200 AltaGas Debt Ltd 100 0 Strong balance sheet Balanced…
Well diversified Utility business Delivering natural gas to United States over 540,000 customers SEMCO: Michigans third Alberta largest natural gas utility AUI: Albertas second ENSTAR: Alaskas largest largest natural gas utility…
More than doubled utility rate base in 2012 Added 130 million annualized EBITDA Acquired SEMCO A regulated natural gas utility with operations in Michigan and Alaska SEMCO distributes gas to over 420,000 customers Rate base of…
Strong cash flow from Utilities in 2013 Growing volumes Strong rate base growth from volume demand and system betterment Greenfield expansion 900 Fuel switching Rate Base (millions) Natural gas fired power 700 generation…
Our Gas business Process and transport over 2.0 Bcf/d Produce 50,000 Bbls/d of C2+ Two-thirds of processing capacity serving liquids-rich areas Well positioned to meet producers needs Strong construction and operating…
Natural gas - growing demand and supply Strong demand growth Fuel switching in manufacturing Growing gas-fired power generation CNG, LNG, and gas-to-liquids opportunities Strong supply growth Technology advances Liquids-rich…
Strategically located in key liquids-rich gas plays C/Mcf JEEP Harmattan Ante Creek JEEP Marlboro Gordondale Marlboro Alder Flats Blair Creek AltaGas Gilby Alder Flats Alder Flats Pouce Coupe Younger Assets Marlboro Gilby…
Throughput growth at Harmattan in 2012 In-service: Q4 2012 250 Mmcf/d, 100 km pipeline increases throughput to near full capacity of 490 Mmcf/d 20-year cost-of-service agreement with NOVA Chemicals Located near Mannville and…
Growth in deep-cut processing capacity in 2012 Gordondale In-service: Q4 2012 120 Mmcf/d deep cut capacity Long-term committed contract with Encana Located in the Montney: largest low-cost liquids-rich resource play in the WCSB…
Our diversified power generation portfolio Over 550 MW power generating capacity Alberta 353 MW coal 72 MW gas British Columbia 114 MW renewable United States 50 MW renewable 21
Power portfolio increased by 13 percent in 2012 Added 10 million annualized EBITDA Harmattan 15 MW Cogeneration II Gordondale 3.4 MW natural gas fired peaker U.S. Power Assets 35 MW biomass 15 MW wind TTM EBITDA 96 million* See…
NW run-of-river projects Forrest Kerr 195 MW capacity 55 percent capacity factor 60 year EPA with BC Hydro 100 percent CPI indexed Capital cost estimate: 725 million Approximately 100 million annualized EBITDA In-service…
Strong capacity factor of 55 to 60 percent Forrest Kerr - Predictable, sustainable hydrology 900 800 700 600 Discharge (m/s) Water flow used for generation 500 400 300 200 Design discharge of 252 m/s 100…
Forrest Kerr intake 25
Forrest Kerr intake structure 26
Forrest Kerr powerhouse construction 27
Forrest Kerr - weir 28
Forrest Kerr Goldhoffer transports turbines 29
McLymont Creek on track Key components: 66 MW enough to power approximately 20,000 homes 2.7 km penstock (4m diameter tunnel) Surface powerhouse Transmission line linked to Forrest Kerr In-service: Late 2015 60-year EPA with BC…
NW run-of-river projects Iskut bridge 31
Committed capital fully funded Uses Sources Ample liquidity to fund 2013-15 capital growth 800 million committed capital 1,300 million cash flow 445 million dividends (at current 144 million DRIP rate) 75 million pref dividends 750…
A leading energy infrastructure company 2012 to 2014 2014 2014 Post 2014 Major new assets in-service by 2014 Significant opportunities past 2014 33
Significant infrastructure investment required LEGEND PNG Pipeline (owned by ALA) Pacific Trail Pipeline (PTP) Liard Cordova Basin Embayment Horn River AltaGas/Idemitsu JV Aitken Creek 300 to 325 Mmcf/d Storage potential…
AltaGas / Idemitsu JV Partnership Key Highlights AltaGas and Idemitsu will each own a 50 percent interest in the Partnership Objective: To pursue opportunities involving exports of LPG and LNG from Canada LPG feasibility study to be…
AltaGas / Idemitsu Strategic Rationale The Partnership opens the door to new markets for Canadian gas The Partnership is expected to increase access to markets in Asia, as well as other global markets Japan is the worlds largest…
Idemitsu Kosan Co., Ltd. Key Highlights A global leader in the supply of Over 100 years old Founded in energy, petroleum, lubricants and 1911 and publicly traded since 2006 petrochemical products and on the Tokyo Stock Exchange…
Opportunities across businesses and geographies 39
Delivering strong earnings and cash flow growth Strong, diversified business Attractive portfolio of energy Capital growth focused on stable, long-term infrastructure assets contracted projects Opportunities to grow Proven track…
Loading...
