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EQUITY OFFERING – Altagas Limited

Altagas Limited · Jun 2, 2004 · 38 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. EQUITY OFFERING – Altagas Limited – slide 1
    ALTAGAS 10 Years of Extraordinary Growth June 2004 Equity Offering
  2. EQUITY OFFERING – Altagas Limited – slide 2
    AltaGas Senior Leadership Team Title At AltaGas Since David Cornhill Chairman and CEO 1994 (inception) Gary Holden President and COO 2003 Patricia Newson SVP Finance and CFO 1996 Dennis Dawson VP General Counsel 1997 and Corporate…
  3. EQUITY OFFERING – Altagas Limited – slide 3
    AltaGas in the News Entrepreneur of the Year Award Recipient (Ernst & Young) 2nd ranked Energy CEO and 30th ranked overall CEO (National Post) Canadas Top 100 Employers (MediaCorp) Top 30 Fastest Growing Companies in Alberta…
  4. EQUITY OFFERING – Altagas Limited – slide 4
    Presentation Agenda Introduction Business Overview Investment Highlights Financial Review Offering Summary 4
  5. EQUITY OFFERING – Altagas Limited – slide 5
    AltaGas Income Trust on the TSX AltaGas Income Trust effective May 1, 2004 Market capitalization almost 1 billion Started in 1994 with 37,000 of equity Nearly 1 billion in assets today Included in indexes May 14, 2004 S&P/TSX…
  6. EQUITY OFFERING – Altagas Limited – slide 6
    Investment Highlights Demonstrated track record of exceptional growth and value creation Integrated energy business with a diversified portfolio of assets and services Stable long-term cash flow from essential industry services…
  7. EQUITY OFFERING – Altagas Limited – slide 7
    Creating Long-Term Value Total Per Annum Equity Returns SINCE CompoundASE AnnualLISTING (July Growth Rates 1999) Since IPO SINCE Compound JANUARY Annual Growth 2003 Rates Since January 2003 AltaGas 15.2% AltaGas 65.5%…
  8. EQUITY OFFERING – Altagas Limited – slide 8
    Large Cap Liquid Income Trust mm Market Capitalization 2,500 Infrastructure Trusts 2,000 Energy Related Business Trusts 1,500 1,000 500 0 S r as lta n na er o et ge r er lo e C…
  9. EQUITY OFFERING – Altagas Limited – slide 9
    ALTAGAS Business Overview 10 Years of Extraordinary Growth
  10. EQUITY OFFERING – Altagas Limited – slide 10
    Midstream Energy Value Chain Energy Services Natural Gas Gathering and Processing Distribution Field Gathering and Processing Transmission Extraction AltaGas creates value by opportunistically linking all components of…
  11. EQUITY OFFERING – Altagas Limited – slide 11
    Five Major Midstream Businesses FIELD GATHERING NET BOOK VALUE AND PROCESSING At December 31, 2003 BC ALBERTA SASK. EXTRACTION 778.9 million TRANSMISSION 7% 16% POWER SERVICES NATURAL GAS 49% DISTRIBUTION 13% Edmonton…
  12. EQUITY OFFERING – Altagas Limited – slide 12
    Flexible Core Business Line FIELD GATHERING AND PROCESSING 69 facilities with 901 mmcf/d of capacity moveable facilities BC ALBERTA SASK. 62% capacity utilization 40% of revenue from take-or-pay and capital and operating recovery…
  13. EQUITY OFFERING – Altagas Limited – slide 13
    Strategically Located Facilities FIELD GATHERING AND PROCESSING EXTRACTION 4 extraction plants with 539 mmcf/d inlet BC ALBERTA SASK. capacity, including Albertas newest plant one field fractionation plant 9,000 bbls/d production…
  14. EQUITY OFFERING – Altagas Limited – slide 14
    Long Term Stability FIELD GATHERING AND PROCESSING EXTRACTION BC ALBERTA SASK. TRANSMISSION 6 transmission pipelines totaling 750 km 396 mmcf/d volumes attractive cost-of-service assets Suffield pipeline backed by long-term…
  15. EQUITY OFFERING – Altagas Limited – slide 15
    Adding Value by Managing Risk FIELD GATHERING AND PROCESSING EXTRACTION BC ALBERTA SASK. TRANSMISSION POWER SERVICES supply 4% of Albertas power capacity 3,300 MWh sold at 47/MWh in 2003 predictable cash flows provided by active…
  16. EQUITY OFFERING – Altagas Limited – slide 16
    Cost of Service Returns FIELD GATHERING AND PROCESSING EXTRACTION BC ALBERTA SASK. TRANSMISSION POWER SERVICES NATURAL GAS DISTRIBUTION 60,000 customers 6% of Alberta natural gas distribution market Edmonton regulated cost of…
  17. EQUITY OFFERING – Altagas Limited – slide 17
    Recent Developments May 26, 2004 Premstar Energy Canada Ltd. announced intention to acquire Premstar for 22 million payable by way of 993,789 AltaGas treasury trust units and 1.2 million in cash one of Canada's leading energy agency…
  18. EQUITY OFFERING – Altagas Limited – slide 18
    Comparison to Peer Group Enbridge Fort Inter KeySpan Pembina Taylor Income Chicago Pipeline Facilities Pipelines NGL Fund Field Gathering and Processing 9 9 9 Extraction 9 9 9 Transmission 9 9 9 9 9 9 Gas Services 9 9 Power…
  19. EQUITY OFFERING – Altagas Limited – slide 19
    Investment Highlights 19
  20. EQUITY OFFERING – Altagas Limited – slide 20
    Investment Highlights Demonstrated track record of exceptional growth and value creation Integrated energy business with a diversified portfolio of assets and services Stable long-term cash flow from essential industry services…
  21. EQUITY OFFERING – Altagas Limited – slide 21
    Exceptional Value Creation Demonstrated track record of exceptional growth and value creation Canadas first publicly traded pure-play midstream energy business Incorporated in 1994 with an investment of 37,000 Now one of the largest…
  22. EQUITY OFFERING – Altagas Limited – slide 22
    Lower Risk Profile from Integration and Diversification Integrated energy business Capturing value through all components of the midstream value chain Diversified portfolio of assets and services provides stability 5 major…
  23. EQUITY OFFERING – Altagas Limited – slide 23
    Lower Risk Profile from Integration and Diversification Cash Flow Horizon 2003 NET BOOK VALUE At December 31, 2003 778.9 million 100 90 Basin Proven 80 Field Gathering Net Book Value (%) Reserve Life 70 Index and…
  24. EQUITY OFFERING – Altagas Limited – slide 24
    Stable Long-Term Cash Flows Stable long-term cash flow from essential industry services Gathering and Processing substantial revenues from take/transport-or-pay and cost recovery contracts area of mutual interest and life of…
  25. EQUITY OFFERING – Altagas Limited – slide 25
    Attractive Growth Opportunities Strong industry fundamentals provide attractive growth opportunities Gathering and Processing internal growth with low investment combined with accretive acquisitions strong E&P activity expected in…
  26. EQUITY OFFERING – Altagas Limited – slide 26
    Conservative Financial Management Conservative financial management with low ongoing capital requirements Long term management to maintain strong balance sheet Debt as a percentage of total capital targeted range 45% to 50% pro…
  27. EQUITY OFFERING – Altagas Limited – slide 27
    Financial Overview 27
  28. EQUITY OFFERING – Altagas Limited – slide 28
    Strength and Diversity CAPITAL INVESTMENT Approximately ( millions) 960 million 1000 Energy EnergyServices Services Disciplined growth through successful 800 execution of strategies Natural Natural GasGas Distribution…
  29. EQUITY OFFERING – Altagas Limited – slide 29
    Strength and Diversity ASSETS EBITDA At December 31, 2003 For the year ended December 31, 2003 919.3 million 121.9 million 15% 12% 18% 54% 34% 67% Gathering and Processing Gathering and Processing Energy Services…
  30. EQUITY OFFERING – Altagas Limited – slide 30
    Financial Stability and Growth FUNDS GENERATED FROM Exceptional track record OPERATIONS ( Millions) of profitable growth 105 Annual growth rates since inception 90 Assets: 75% 75 57% CAGR Net revenues: 54% 60 Funds from…
  31. EQUITY OFFERING – Altagas Limited – slide 31
    Excellent Outlook for 2004 EBITDA BY QUARTER Strong performance in ( Millions) Q1 2004 35 Q2 normally affected by 30 seasonality 25 Q2 2004 expected to show 20 year over year growth 15 10 5 0 Q1 Q2 Q3 Q4 2002 24.0…
  32. EQUITY OFFERING – Altagas Limited – slide 32
    Conservative Financial Structure Reaffirmed investment Debt as a Percentage of Total Capital grade rating on medium term notes 60% S&P: BBB- 50% DBRS: BBB(low) Target range 40% Move debt as a proportion 30% of the capital…
  33. EQUITY OFFERING – Altagas Limited – slide 33
    Income Trust Strategy Pay stable monthly cash distributions to Trust unitholders Includes both trust units and exchangeable securities Funded from AltaGas existing operations First monthly distribution is 0.15 per unit to be paid on…
  34. EQUITY OFFERING – Altagas Limited – slide 34
    Offering Summary 34
  35. EQUITY OFFERING – Altagas Limited – slide 35
    Comparables Unit Market Enterprise Net Debt2 / Price Cap.1 Value Ent. Val. Dist. Est.3 Yield (mm) (mm) % % % Pipeline and Midstream Trusts Pembina Pipeline Income Fund 11.41 1,142 1,833 37.7% 1.05 9.2% Inter Pipeline Fund 7.72…
  36. EQUITY OFFERING – Altagas Limited – slide 36
    Offering Summary Amount: Approximately 75 million (10% over-allotment option) Issue Price: Context of the market Use of Proceeds: Reduce bank indebtedness, which may be redrawn and used for general corporate purposes including…
  37. EQUITY OFFERING – Altagas Limited – slide 37
    Investment Highlights Demonstrated track record of exceptional growth and value creation Integrated energy business with a diversified portfolio of assets and services Stable long-term cash flow from essential industry services…
  38. EQUITY OFFERING – Altagas Limited – slide 38
    ALTAGAS 10 Years of Extraordinary Growth June 2004 Equity Offering

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