CIBC World Markets Energy Trust Conference April 21, 2005
Forward-Looking Information Certain information in this presentation is forward- looking. Such information is subject to certain risks, uncertainties and assumptions that could cause actual results to differ materially from those…
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…
Business Overview
Our Energy Portfolio Gathering Energy Natural Gas and Processing Services Distribution Field gathering Power services AltaGas Utilities and processing Gas services Heritage Gas Extraction Oil and natural Inuvik Gas…
Gathering and Processing Net investment of 640 million generated 45 million of operating income 69 field gathering and processing facilities BC ALBERTA SASK. 913 Mmcf/d capacity 6,000 km of pipelines 4 extraction plants 1 field…
Energy Services Net investment of 147 million generated 38 million of operating income Energy agency business Over 1,000 customers 478 MW of generating capacity BRITISH ALBERTA COLUMBIA ONTARIO Edmonton Oakville…
Natural Gas Distribution ALTAGAS UTILITIES Net investment of 122 million generated INC. 8 million of operating income 100% ownership of AltaGas Utilities Inc. BC ALBERTA SASK. One third interest in Inuvik Gas Ltd. 25% interest in…
Integrated Energy Businesses Net Book Value At December 31, 2004 890.3 million 11% 14% NORTHWEST TERRITORIES 12% 45% 14% B.C. ALBERTA SASK. 4% NOVA ONTARIO SCOTIA
Diversified Asset Focused Business Capital Investment by Component Operating Margin by Component 2004 2004 1,200 Field Gathering and Processing Extraction Gas services Transmission ( millions) 1,000 Power Services Gas…
2004 Financial Performance
AltaGas Today: Strong and Diversified TOTAL ASSETS EBITDA At December 31, 2004 For the year ended 1,108.6 million December 31, 2004 133.4 million 14% 11% 15% 53% 36% 71% Gathering and Processing Gathering and…
Net Income NET INCOME ( Millions) 2004 65.8 million, 72% increase 70 over 2003 includes Trust conversion costs 60 and income tax benefit from Trust conversion 50 Strong Performance 40 Gathering and Processing Energy Services 30…
Net Income Per Unit NET INCOME PER UNIT () 2004 1.33 is a 58% increase over 2003 1.40 includes Trust conversion costs 1.20 and income tax benefit from Trust conversion 1.00 Basic Units 0.80 49.4 million (45.5 million 2003)…
EBITDA EBITDA ( Millions) 2004 133.4 million is a 9% increase over 2003 140 includes Trust conversion 120 costs 100 80 60 40 20 0 2001 2002 2003 2004 69.9 94.8 121.9 133.4
Net Revenue by Segment NET REVENUE BY SEGMENT ( Millions) Gathering and Processing Increased volumes in all 250 components Acquisitions and expansions 200 Fee increases 150 Energy Services 100 PremStar acquisition Higher…
2004 Capital Investments 130 million in invested capital for 2004 119 million growth capital 6 million maintenance capital 5 million administration capital
2004 Financial Structure DEBT AS A PERCENTAGE OF TOTAL CAPITALIZATION * Trust stability rating S&P: SR-3 60% DBRS: STA-3 (middle) Rating on medium term 50% Target Range notes 40% S&P: BBB- DBRS: BBB (low) 30% Capital structure…
Stable Cash Flow Horizon Cash Flow Horizon by Component - 2004 100.0 Gas services 90.0 80.0 Field gathering and processing 70.0 Net Book Value (% 60.0 50.0 Power services 40.0 30.0 Transmission 20.0 Extraction…
Growth Strategy
Drivers of 2005 Growth Acquisition opportunities Full year impact of 2004 acquisitions October 2004 closing of the acquisition of PremStar, a leading Canadian energy agency business August 2004 acquired 48 2/3% of Edmonton Ethane…
Positioned for Growth Strong gas prices fueled by increasing gas demand and maturing basin Continued growth in power demand Gathering and Processing organic growth with low investment increase facility utilization strong E&P…
Acquisition Strategy Disciplined approach to acquisitions Net income accretive Return on equity accretive Maintain low risk profile Maintain financial flexibility Enhance unitholder value
Investment Highlights
Premier Energy Trust Enbridge Fort Inter Keyera Pembina Taylor Income Chicago Pipeline Facilities Pipelines NGL Fund Field Gathering and Processing 9 9 9 Extraction 9 9 9 9 Transmission 9 9 9 9 9 9 9 Gas Services 9 9 Power…
Large Cap Liquid Income Trust Market Capitalization 3,000 2,500 Infrastructure Trusts 2,000 Energy Related Business Trusts 1,500 1,000 500 0 e go na er et er S r as ra or in ta rio w…
Industry Relative Performance AltaGas vs. selected S&P/TSX Indices - January 1, 2004 to April 15, 2005 AltaGas S&P/TSX Canadian Income Trust Index S&P/TSX Canadian Energy Index April 15, 2005 normalized closing values AltaGas…
Investment Highlights Demonstrated track record of growth and value creation Strong fundamentals driven by natural gas Integrated energy business with a diversified portfolio of assets and services Very low risk model Substantial…
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