AltaGas Ltd. Delivering superior returns Corporate Profile - February 2012
Were a leading energy infrastructure company 3
AltaGas Ltd. (TSX:ALA) Diversified energy infrastructure Financial strength Enterprise value 4 billion (5 billion BBB (stable) credit rating including SEMCO) Bank liquidity and cash on hand of over Natural gas gathering and…
Continue to Execute Strategy SEMCO acquisition Grow a key business segment Diversify the Utilities Grow US asset base Grow earnings and cash flow to deliver dividend growth and capital appreciation Improved financial strength and…
Transaction overview Acquire SEMCO Holding Funding Corporation for US 1.135 Cash to close approximately billion including US780 million approximately US 355 million debt Subscription receipts 403 million US300 new credit facility 2013…
Credit positive transaction AltaGas Ltd SEMCO STANDARD & POORS STANDARD & POORS Affirmed BBB; Outlook stable Placed on Credit Watch Positive Revised business risk profile to Excellent business risk profile strong from satisfactory…
Incremental EBITDA organic and acquisitions See Forward-Looking Statements & Information 8
Increasing stable earnings Adding highly contracted, stable, long-life infrastructure Growing earnings Enhancing earnings stability See Forward-Looking Statements & Information 9
Balancing the portfolio PROJECTED EBITDA MIX 2011* 2013F 2015F (Including SEMCO) (Forrest Kerr on-stream) Utility 12% Utility Utility Gas 38% 32% 37% Gas Power Gas 45% 34% 54% Power Power 31% 17% SEMCO will…
Growing the Utility business SEMCO Holding Corp. SEMCO Energy Inc. Rate Base - 725MM SEMCO Gas Eaton Rapids Gas ENSTAR Gas CINGSA Gas Division Storage Division Storage (Michigan) (Michigan) (Alaska) (Alaska) Regulated…
SEMCO business SEMCO HOLDING CORPORATION Each SEMCO division is a standalone OWNS 100 PERCENT OF SEMCO turn-key business with its own billing / ENERGY INC. CIS systems, call centers, accounting, IT and HR functions A regulated natural…
SEMCO Alaska Natural gas utility operation: ENSTAR Gas storage business: Cook Inlet Natural Natural Gas Company (ENSTAR) Gas Storage Alaska (CINGSA) 2011E rate base: 200 million 65 percent interest Largest natural gas distributor in…
SEMCO Michigan A natural gas utility operation: Storage and pipeline assets in Michigan SEMCO Michigan Less than 2 percent of revenues 2011E rate base: 425 million Five regulated underground storage Distributes gas to approximately…
1.9 billion in Utility growth SEMCO Acquisition US1.135 billion PNG acquisition 230 million Approximately 500 million capex in the next 5 years 1.2 billion rate base 530,000 customers See Forward-Looking Statements &…
Committed capital 2012 to 2014 millions Gordondale 115 Co-stream 25 Other 100 Total Gas 240 Forrest Kerr 490 McLymont/Volcano 200 Other 90 Total Power 780 Utilities 250 Total 1,270 Excludes SEMCO acquisition 20 See Forward-Looking…
Funding our 2012 to 2014 committed capital 645 million FCF (Q3 2011 TTM) 120 million DRIP 360 million incremental cash flow from new assets 1,025 million current bank liquidity 780 million SEMCO and cash* 1,270 million committed…
Gas Business
Capitalizing on unconventional gas plays 23
Liquids-rich play at Gordondale 120 Mmcf/d deep cut Encana processing agreement committing long-term supply Phase I completed on-time and on-budget: 16 Mmcf/d processed at Pouce Coupe. Phase II in service: late-2012 Construction…
Younger extraction plant Licensed capacity 750 Mmcf/d 15,000 Bbls C2+ produced Processing 600 Mmcf/d Only fractionation plant in BC Rail, truck and pipeline interconnectivity Evaluating debottlenecking options to move to…
Optimizing assets - Harmattan Co-stream Equipment ordered, pipeline construction began June 2011 60 percent of capital costs contractually fixed 250 Mmcf/d, 100 km pipeline increases throughput to near full capacity of 490 Mmcf/d…
Power Business
Building a diversified power business Generation capacity by fuel type 2012 2016E Approximate capacity: 600 MW Goal: 1000 MW See Forward-Looking Statements & Information. 28 See Forward-Looking Statements & Information
Waste-heat and cogeneration projects under construction Crowsnest waste-heat recovery (60% interest) 6 MW project, EPA with BC Hydro In-service estimate: Q3 2012 Gordondale peaking plants 3.4 MW gas-fired peakers In-service…
NW run-of-river projects - 1 billion growth Forrest Kerr McLymont and Volcano Creek 195 MW capacity Two developments totaling approximately 82 MW capacity 55 60 percent capacity factor 60 year EPA with BC Hydro 60 year EPA with BC…
Forrest Kerr key milestones Milestone Status Site-prep & base camp mobilization Finalize contracting strategy Critical path engineering Turbine-generator contract awarded All tunneling contracts awarded Power tunnel / underground…
Capacity factor 55 to 60 percent Predictable, sustainable hydrology 900 800 700 600 Discharge (m/s) Water flow used for generation 500 400 300 200 Design discharge of 252 m/s 100 Minimum release of 10 m/s…
Excavation progress as of February 24, 2012 33
Forrest Kerr One-year look ahead Milestone Status Complete transmission line design and routing Commence headworks/intake construction Commence transmission line construction Complete main access tunnel Complete construction access…
McLymont Creek Location: Status: Solely within the Tahltan territory First Nations Impact Benefit Agreement ratified by Tahltan members Approximately 100 km northwest of 60-year EPA with BC Hydro Stewart, near the Eskay Creek Mine…
Volcano Creek Location: Status: Solely within the Tahltan territory First Nations Impact Benefit Agreement ratified by Tahltan Approximately 100 km northwest of members Stewart, near the Eskay Creek Mine 60-year EPA with BC Hydro…
AltaGas is a good place to be Strong, diversified base of gas, power and utility assets Attractive portfolio of energy Capital growth focused on stable, long-term contracted infrastructure assets projects and regulated rate base growth…
Appendix
Stable cash flow and earnings EBITDA*: 265 million Operating income*: 211 million Funds from operations*: 214.5 million Net income*: 80.2 million FFO payout*: 51% *TTM ending September 30, 2011 39
Financial discipline Strong balance sheet* Balanced debt maturity profile *Adjusted for October MTN issuance and November equity issuance 40
Total shareholder return 1,400 1,200 1100% total return in the past 10 1,200 1,000 years. 800 600 400 200 100 0 Dec. 31, 2001 Dec. 31, 2011 Compared to 10-yr TSX composite return of 7.03% 41
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