Scotia Capital Investing for Income Conference October 6, 2005 Jim Bracken Senior Vice President Energy Services 1 Good morning everyone and thank you for attending our presentation. I would like to thank Scotia Capital for…
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…
Business Overview 3 3
Trust profile 54.0 million units1 ALA.UN on TSX Current market capitalization 1.5 billion2 Assets 1.1 billion1 Distributions 16 cents/unit/month (1.92 annualized) 7% increase announced August 10th 6.9% yield2 1. June…
Energy value chain Gathering Processing AltaGas creates value by strategically linking Ga Power asset and service components of the Wellhead Transmission End-user energy value chain Gas Extraction Natural…
Integrated energy businesses Net book value At June 30, 2005 871.6 million NORTHWEST TERRITORIES 11% 14% B.C. ALBERTA SASK. 45% 12% NOVA ONTARIO SCOTIA 14% 4% FIELD GATHERING AND PROCESSING EXTRACTION TRANSMISSION POWER…
Diversified energy services business Capital investment by component Operating margin by component (6 months ended June 2005) 1,200 Field Gathering and Processing Extraction Gas Services Transmission Gas Services 1,000 Power…
Gathering and Processing 69 field gathering and processing facilities 916 Mmcf/d capacity 6,000 km of pipelines BC ALBERTA SASK. 4 extraction plants - 539 Mmcf/d inlet capacity 1 field fractionation plant Almost 20,000 Bbls/d…
Western Canada production Bcf/d Tcf/yr 1%/Yr 7 17 17.5 Increase 16 High Case 15.3 9% Growth 16 6 9% Decline 14.4 8% Tight Gas 5 11% Coal Bed 12 Methane 4 42% New Gas 8 3 2 4 30% Existing Gas 1 Actual Forecast 9%…
AltaGas regional utilization British Columbia Alberta Saskatchewan 10% 79% 74% 59% 57% % Utilization W6 Capacity Throughput W5 W4 W3 10 Our overall throughput in our FG&P facilities in the first half of…
Energy Services 478 MW of generating capacity; 6% of Alberta capacity Energy procurement and consulting services, energy supply and natural gas transportation and storage optimization to end-use customers Energy agency business…
Natural Gas Distribution ALTAGAS UTILITIES Regulated cost-of-service returns INC. AltaGas Utilities BC ALBERTA SASK. 61,551 customers at March 31, 2005 6% of Alberta market Positioned for Northern development Nova Scotia…
Proposed spin-out of Natural Gas Distribution segment Transaction description Spin out of Trust ownership of natural gas distribution segment to new publicly traded corporation Trust unitholders to receive shares in AltaGas…
Proposed spin-out of Natural Gas Distribution segment Impact to AltaGas Income Trust No impact on current level of distributions Improved financial metrics Lower target debt to total capitalization of 40% to 45% No…
Financial Performance 15 Id like to move on to our financial performance. 15
AltaGas today: strong and diversified TOTAL ASSETS EBITDA At June 30, 2005 Six months ended June 30, 2005 1,069.8 million 80.4 million 13% 12% 15% 33% 55% 72% Gathering and Processing Gathering and Processing Energy…
Financial stability and growth EBITDA Exceptional track record ( Millions) of profitable growth 135 Annual growth rates since 120 inception to end 2004 105 50% CAGR Assets: 69% 90 75 Net revenues: 50% 60 Funds from…
Net income NET INCOME PER UNIT First half 2005 () 46.7 million YTD, or 104% increase over first half 2004 1.40 1.33 78% increase in NIPU over first 1.20 half 2004 1.00 0.84 0.87 Impact from PremStar and EEEP 0.80 0.70…
Conservative financial management Debt as a percentage of total capitalization Current target: 45% to 50% Target post spin-out: 40% to 45% As at June 30, 2005: 40.5% Disciplined approach to growth focusing on traditional…
Growth Strategy 20 20
Growth opportunities Strong industry fundamentals provide opportunities for prudent increases in EBITDA Gathering and Processing Strong exploration and production activity in WCSB supports continued internal growth Accretive…
Disciplined acquisition strategy Disciplined approach to acquisitions Net income accretive Cash flow accretive Return on equity accretive Maintain low risk profile Maintain financial flexibility Enhance unitholder…
Strong liquidity Financing options Debt and equity markets Funds from operations DRIP 23 Our balance sheet supports our growth strategy. In August, we issued 100 of new medium-term notes to replace those that…
Investment Highlights 24 I would like to end my presentation by discussing a few of the investment highlights for AltaGas. 24
Premier energy trust Enbridge Fort Inter Keyera Pembina Taylor Income Chicago Pipeline Facilities Pipelines NGL Fund Field Gathering and Processing 9 9 9 Extraction 9 9 9 9 Transmission 9 9 9 9 9 9 9 Gas Services 9 9 Power…
Large cap liquid income trust Market Capitalization 3,000 2,500 Infrastructure Trusts 2,000 Energy Related Business Trusts 1,500 1,000 500 0 er e S na et go as ra or r ta er in…
Industry relative - performance AltaGas vs. selected S&P/TSX Indices - August 1, 2003 to September 27, 2005 AltaGas S&P/TSX Canadian Income Trust Index S&P/TSX Canadian Energy Index 300 September 27, 2005 normalized closing…
Investment highlights Demonstrated track record of growth and value creation Strong fundamentals driven by energy demand Integrated energy business with diversified portfolio of assets and services Stable and predictable long-term…
Loading...
