Presentation agenda Introduction Business overview Investment highlights Financial review 2
Introduction 3
Business Overview 4
Energy value chain Gathering Processing AltaGas creates value by strategically linking Ga Power asset and service Wellhead Transmission End-user components of the energy value chain Gas Extraction Natural Gas…
Integrated energy business Diversified portfolio of assets and services provides stability 6 major businesses Underlying commodities natural gas, natural gas liquids, power Various industry cycles often offsetting Extensive…
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…
Field Gathering and Processing 69 facilities with 916 Mmcf/d of capacity moveable facilities 62% capacity utilization BC ALBERTA SASK. 50% of revenue from take-or-pay and capital and operating recovery contracts 50% of revenue has…
Extraction 4 extraction plants with 539 Mmcf/d inlet capacity, including Albertas newest plant One field fractionation plant BC ALBERTA SASK. 19,987 Bbls/d average production in first half 2005 75% of operating margin based on…
Transmission 6 transmission pipelines totaling 750 km 432 Mmcf/d average volumes in first half 2005 (excludes condensate transmission volumes) BC ALBERTA SASK. Attractive cost-of-service assets Suffield pipeline backed by…
Power Services 6% of Albertas power capacity 3,481 MWh sold at 48.77/MWh in 2004 BC ALBERTA SASK. Average price for power sold for first half of 2005 48.81/MWh Rights to 353 MW until December 31, 2020 25 MW of gas-fired peaking…
Gas Services Energy procurement and consulting services, energy supply and natural gas transportation and storage optimization to end-use customers BRITISH ALBERTA Energy agency business marketed COLUMBIA under AltaGas and…
Natural Gas Distribution Regulated cost-of-service returns AltaGas Utilities BC ALBERTA SASK. 60,866 customers 6% of Alberta natural gas distribution market Positioned for Northern development Nova Scotia greenfield opportunity…
Investment Highlights 14
Investment highlights Diversified asset focused business Stable and predictable long-term cash flows Risk and return managed through comprehensive range of contracts Disciplined financial management Conservative maintenance…
Diversified asset focused business Capital investment by component Operating margin by component (6 months ended June 2005) 1,200 Gas Services Field Gathering and Processing Extraction 1,000 Power Services Transmission Gas…
Growing stable and predictable long-term cash flow Cash flow horizon by component - 1999 Cash flow horizon by component - 2005 100.0 100 90.0 90 80.0 80 Gathering and Field gathering and Processing & Other processing &…
Risk and return managed through comprehensive range of contracts Operating margin by contract type (6 months ended June 30, 2005) Cost of service Provides for recovery of operating and maintenance expenses, amortization, taxes, and…
Financial Review 19
Conservative financial management Strong balance sheet Debt as a percentage of total capitalization Targeted range 40% to 45% As at June 30, 2005 40.5% Disciplined approach to growth focusing on traditional financial metrics…
Financial stability and growth Exceptional track record EBITDA ( Millions) of profitable growth Annual growth rates 135 since inception to end 2004 120 Assets: 69% 105 Net revenues: 50% 50% CAGR 90 Funds from operations: 53% 75…
Opportunities to increase EBITDA Strong industry fundamentals provide opportunities for prudent increases in EBITDA Gathering and Processing Strong exploration and production activity in WCSB supports continued internal growth…
Financial highlights 6 months ( millions) 1999 2004 June 2005 EBITDA 42.8 133.4 80.4 Funds generated from operations 28.6 108.6 61.5 Net income 11.3 65.8 46.7 Total assets 436.5 1,108.6 1,069.8 Unitholders equity 230.8 483.5…
Comparables FFO/ Total Total Debt/ Rating EBIT/I EBITDA/I Debt Debt/Capital EBITDA Pembina Pipeline Income Fund NR 1.74x 3.53x 17.6% 51.0% 4.14x Inter Pipeline Fund BBB 3.83x 6.69x 32.4% 33.2% 2.63x Enbridge Income Fund BBBH, Baa2…
Ratings Ratings S&P: BBB- DBRS: BBB (low) both stable outlook Board and management committed to maintaining investment grade ratings 25
Cash flow horizon Expected term of medium- term notes 5 years NET BOOK VALUE At June 30, 2005 871.6 million 100 90 80 Field gathering and processing & other 70 Net Book Value (%) 60 Gas services 50 Power services…
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