TD Newcrest Unconventional Oil & Gas Forum Myles Dougan Vice President, Communications and Investor Relations July 14, 2010 2
Forward-looking information Certain information presented today may constitute forward-looking statements with respect to AltaGas Ltd. Such statements reflect AltaGas Ltd.s current expectations, estimates, projections and…
Leading energy infrastructure company Meeting energy demand Diverse assets Natural gas and natural gas liquids gathering, extraction, transmission, distribution, storage, marketing Power generation conventional and renewable…
Power business 5
Revenue underpinned by hedging strategy Power operating income ( millions) Q1-2010 Power Segment 117.9 net revenue 120 94.6 100 90.9 15% 88.0 80.8 26% 80 60 40 59% 20 Fee-for-service 0 Hedged revenue 2006 2007*…
Harmattan co-generation project 12.8 MW cogeneration facility at Harmattan Complex Provide steam required to process gas Produce electricity for sale to grid Capital estimate: 22 million In-service estimate: Q3-2010 7
Renewable power projects Run-of-river projects 400 MW under development NW projects (277 MW) In-service estimate: 2014-2016 Log and Kookipi Creek (20 MW) In-service estimate: 2013 40-year EPAs with BC Hydro Waste heat recovery…
NW power projects Forrest Kerr 195 MW 60 year EPA with BC Hydro 100 per cent CPI indexed Capital estimate: 700 million In-service estimate: 2014 McLymont and Volcano Creek Two developments totaling approximately 80 MW…
Gas business 10
Growth through stable revenue sources Gas operating income ( millions) Q1-2010 Gas Segment net revenue 140 114.5 120 110.3 8% 103.6 6% 100 80 49% 63.3 59.3 60 37% 40 20 Fee-for-service 0 Cost-of-service and…
Natural gas distribution growth focus Grow natural gas distribution rate base Expect approximately 20% consolidated rate base growth in 2010 Over 200MM capex in the next 5 years Driven primarily by: Expansion of Heritage Gas…
Gas business growth focus Growing gas supply in Western Alberta and Northeast BC Montney and Horn River Shale plays CBM 25 20 Billion cubic feet/day 15 10 Conventional Gas Coalbed Methane BC Horn River BC…
Harmattan Co-stream project 195 km pipeline Sundre Olds Capital estimate: Harmattan NGTL Eastern 100-120 million Complex Alberta System Sales gas ERCB hearing set for 250 Mmcf/d August 2010 Five extraction MOU with NOVA for…
Groundbirch project 28 Mmcf/d gas plant Dedicated take-or-pay agreement Capital estimate: 28 million In-service estimate: Q4-2010 15
Pouce Coupe sour gas expansion Expansion of existing AltaGas plant to process 20 Pouce Coupe gas processing plant Mmcf/d sour gas and gathering line Located in area of strong producer activity Bonanza Capital estimate: 25…
Ante Creek expansion Expansion of existing AltaGas plant to process up to 20 Mmcf/d Capital estimate: 13 million In-service estimate: Q2-2010 Opportunities for further expansion 17
Acme expansion Expansion of existing AltaGas plant to process additional Horseshoe Canyon CBM natural gas Capital estimate: 5 million Phase 1 in-service estimate: Q3-2011 Opportunities for further expansion 18
Younger extraction plant Facility expected to be close to full capacity by year-end 2010 New volumes from northeast B.C. developments Opportunities to bring additional liquid-rich gas from Montney area 19
5 billion of projects in development Processing facilities NGL extraction facilities Gas storage Gas-fired power gen. Wind power Run-of-river hydro 20
As AltaGas grows, business risk decreases Now Future Unhedged commodity Hedged commodity Fee-for-service Rate regulated and cost-of-service Adding low-risk, long-life infrastructure Utilities, renewable power,…
Looking forward: substantial growth Stable and sustainable cash flows Low-risk, long-life energy infrastructure Disciplined finance and business strategy 2 billion of real growth projects, 5 billion of projects in development As…
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