AltaGas Income Trust Investor Day September 18, 2008
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,…
whats NEXT. A Simple Strategy David Cornhill Chairman and Chief Executive Officer September 18, 2008 A pure play in energy infrastructure Business Operations and/or Development Opportunities AltaGas Offices 2
Long-life assets with long-term cash flows 2,500 Gas Power Natural Gas Distribution Corporate 2,000 Taylor NGL Limited Partnership Assets ( millions) 1,500 Suffield EEEP Sundance B PPAs 1,000 AltaGas Utilities Inc.…
Bear Mountain Wind Park Bear Mountain ridge construction underway 5 Forrest Kerr run-of-river project Intake area and access road Hydro generation Downstream of intake area Hydro generation under development…
Whats NEXT. Significant growth in the next 12 months and beyond 2008 Capital expenditures of 225 million Expect strong results from gas and power 2009 Capital expenditures of 250 million Expect good gas results and modest…
Whats NEXT. Pure play energy infrastructure Long-life cash flows Balance between gas and power Quality growth opportunities Well-positioned for 2011 9
whats NEXT. Supporting Our Strategy Debbie Stein Vice President Finance and Chief Financial Officer September 18, 2008 AltaGas today Energy infrastructure trust: Market Capitalization 1.7 billion Enterprise Value 2.2…
Strong track record Net Income EBITDA 160 250 140 135.8 211.7 114.5 114.2 200 120 173.1 173.7 155.5 100 90.3 150 millions millions 133.4 73.7 121.9 122.3 80 65.8 60 100 38.3 40 50 20 0 0 2003 2004 2005…
Strong returns AltaGas Inco me Trust Keyera Facilities Inco me Fund Inter P ipeline Fund Pembina Pipelines Inco me Fund TransA lta Corpo ratio n TransCanada Co rpo ratio n Enbridge Inc. 175% 150% 125% 100% 75% 50%…
Our finance strategy Minimize cost of capital Ensure liquidity Ensure access to capital markets Maintain optimal financial risk Support disciplined growth strategy and strong energy infrastructure business 9 Key…
Strong financial metrics Debt as a percentage of total capital* EBITDA to Interest 60% 16x 14x 50% 12x Target Range 40% 10x 5.4 x BBB Median* 30% 8x 6x 20% 4x 10% 2x 0% 0x 2003 2004 2005 2006 2007 2008 2003 2004 2005 2006…
Capital expenditures 2008 2009 Extraction and Transmission 67 M 120 M GAS Field Gathering and Processing 30 M 10 M Energy Services 6 M 10 M Power Generation 122 M 110 M 225 M 250 M Spent to date 125 M Remainder of year…
Our tax strategy Balance interests of current unitholders and future shareholders Continue to capitalize on tax efficiency of trust structure Expect to convert in 2011 After-tax return to Canadian taxable accounts expected to be…
Well-positioned for 2011 Focus on traditional metrics Earnings and ROE Strong tax position Conservative tax planning Approximately 850 million in tax pools by 2011 Conservative payout targets Distributions: 65 - 75% of funds from…
whats NEXT. Stable Energy Infrastructure Richard Alexander President and Chief Operating Officer September 18, 2008 Our business Meeting energy demand Gas and power infrastructure Large fixed-return component…
Facilities throughout the WCSB Extraction plant Transmission Pipeline BRITISH COLUMBIA ALBERTA SASKATCHEWAN Field Gathering and Processing Area Edmonton Calgary 3 Growing our gas business 70 Operating…
Stable revenue sources 8% 12% Contractually fixed Fixed fee 58% Hedged revenue 22% Unhedged revenue YTD 2008 net revenue 5 Growth in extraction production Ethane NGLs 40,000 35,000 30,000 Production…
Strong forward prices Frac hedges in place for 60% of exposed volumes at 23/Bbl for remainder of 2008 and 27/Bbl for 2009 and for 15% of exposed volumes at 27/Bbl for 2010 40 Forward Market Frac Spread (/Bbl) 35 30 25…
Growing our power business 100 Operating Income ( millions) 80 55.3 60 40 20 0 2003 2004 2005 2006 2007 YTD 2008 * * Operating income for the six months ended June 30, 2008 Indicates operating income for six months…
Growth in generation capacity Coal-fired Gas-fired Hydro Wind 500 Generation capacity (MW) 400 300 200 100 0 2001 2002 2003* 2004 2005 2006 2007 2008 2009 * AltaGas entered into a three-year contract for 100 MW…
Strong forward prices Approximately two-thirds of 2008 PPA volumes hedged at 76/MWh, up from 66/MWh in 2007 100 10 9 90 8 AECO Gas Price (/GJ) Power Price (/MWh) 80 7 6 70 5 60 4 Power price 50 3 AECO price…
Power generation capacity by fuel type Current Generating power At September 18, 2008 December 31, 2009 0.5% 0.4% 10% 18% Coal Natural Gas Wind 8% Hydro 90% 74% * Based on power generation capacity 17 Whats…
Successful integration of Taylor assets Seamless integration process Similar business models and assets Extraction business now considerably larger Continue to build on acquisition realize full potential of assets 19…
Project status Peaking plants Harmattan initiatives EDS Pouce Coupe expansion Sarnia storage Bear Mountain Harmattan Co-streaming Rainy River Forrest Kerr 2008 2009 2010 2011 2012 2013 Complete Under construction Awaiting…
Harmattan initiatives Volume growth projects Ricinus Gathering System New pipeline to Carstairs facility New/expanded gathering lines Plant efficiency enhancements Existing Caroline Gathering System Sundre Olds Bergen…
Harmattan Co-streaming Project Status of NGL Extraction Convention Inquiry Completed during third quarter 2008 Decision expected in fourth quarter 2008 Evidence suggests Inquiry will not rule negatively on Co-streaming Project…
Pouce Coupe sour gas plant expansion 25 million, 20 Mmcf/d planned expansion to existing sweet processing site Pouce Coupe Gas Plant and Gathering Line BRITISH COLUMBIA Bonanza er Riv upe Co ALBERTA uce Po B.C.…
Organic growth Younger Extraction Facility Strong drilling activity in Northeast B.C. opportunities for growth Ethylene Delivery System (EDS) Utilize unused portion of EDS completed in first quarter 2008 Upgrade 12 km of existing…
Bear Mountain Wind Park Construction underway Diversifying power portfolio Expect cash flow in late 2009 31 Continued expansion into renewable energy Ensure long-term sustainability of power business Expand portfolio…
Run-of-river projects BRITISH COLUMBIA ALBERTA Edmonton Calgary Hydro Power Generation Hydro Power Generation Under Development Vancouver 33 Run-of-river projects Location Project Capacity (MW) Forrest Kerr…
Wind projects Wind under construction Wind development opportunities 35 Wind projects Status Project Location Net Capacity (MW) Roughrider North Dakota 92 High Plains Wyoming 150 Mature development Yellowhead Manitoba…
Whats NEXT. Outlook 37 2008 operating results expected to be stronger than 2007 Gas expect results to increase Larger asset base Strong frac spreads provide upside Cost controls and re-contracting Power expect results…
2009 and beyond continued opportunities to grow 2009 Expect higher results from gas business Harmattan initiatives, Pouce Coupe, Sarnia Expect steady results from power business Additional power peaking capacity Bear…
whats NEXT. Delivering Growth Jim Bracken Senior Vice President Major Projects September 18, 2008 1 Project execution delivering growth Acme coal bed methane gas processing facility 10 Mmcf/d facility processing Horseshoe…
Significant projects underway to deliver more growth Bear Mountain Wind Park in B.C. construction underway and on schedule Sarnia storage in Ontario valuable infrastructure Pouce Coupe expansion in Alberta sour gas expansion in…
Bear Mountain Wind Project status South end of project looking north South end of project looking north 5 Bear Mountain Wind Project status Construction underway project on time and on budget Construction costs…
North end of project looking south Turbine site 27 completed foundation 7 Bear Mountain Wind Project success factors Fixed-price turbine supply and construction with a leading turbine manufacturer BC Hydro 25-year…
Pouce Coupe gas processing plant expansion overview Expansion of existing AltaGas plant to Pouce Coupe Gas Plant process 20 Mmcf/d of sour gas and Gathering Line Capital cost estimate 25 million In-service in second quarter 2009…
Pouce Coupe gas processing plant project status In regulatory approvals stage ERCB and Alberta Environment applications filed Major equipment purchased Construction expected to start early next year Project expected to be…
Sarnia Gas Storage Project status 5.3 Bcf of working capacity and 52 Mmcf/d of deliverability 50% ownership - partnered with Market Hub Partners Located within Dawn storage and market hub OEB approved the storage pool in July…
Forrest Kerr run-of-river project overview Large scale project expected to produce clean, renewable energy for British Columbia 195-MW run-of-river project Located on the Iskut River in Northwest B.C. In-service target date of…
Forrest Kerr run-of-river project Significant engineering work complete solid project design in place 17 Forrest Kerr run-of-river project status Independent feasibility study for 195 MW project completed in Q2-2008…
Forrest Kerr success factors Expect to have long-term contract to sell power First Nation and B.C. government support for project Solid project design AltaGas renewable development team has experience to drive project…
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