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MACQUARIE YIELD CORPORATE – Altagas Limited

Altagas Limited · Jun 14, 2012 · 34 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. MACQUARIE YIELD CORPORATE – Altagas Limited – slide 1
  2. MACQUARIE YIELD CORPORATE – Altagas Limited – slide 2
    AltaGas Ltd. Delivering superior returns Macquarie Yield Corporate 1x1 Day June 14, 2012
  3. MACQUARIE YIELD CORPORATE – Altagas Limited – slide 3
    A solid investment Dividend 0.115 monthly; Stable, long-life assets 1.38 annually Strong contracts or regulated 4.5 percent increase in returns annual dividend in 2011 Growing earnings and cash Current yield 4.7* percent flow TTM…
  4. MACQUARIE YIELD CORPORATE – Altagas Limited – slide 4
    Were a leading energy infrastructure company 5
  5. MACQUARIE YIELD CORPORATE – Altagas Limited – slide 5
    AltaGas Ltd. Diversified energy infrastructure Financial strength and flexibility Enterprise value 4.5 billion BBB (stable) credit rating Bank liquidity and cash on hand of over Natural gas gathering and processing, 1.2 billion*…
  6. MACQUARIE YIELD CORPORATE – Altagas Limited – slide 6
    Significant operational and construction management capability Gas Power Utilities Produce 50,000 Bbls/d of C2+ Generate over 500 MW power: Operate three utilities in Canada (Alberta, British Columbia, and Process 0.4 Bcf/d at field…
  7. MACQUARIE YIELD CORPORATE – Altagas Limited – slide 7
    Growth opportunities in all our businesses Gas Power Utilities 120 Mmcf/d deep-cut facility at 277 MW run-of-river Pending acquisition of SEMCO Gordondale 195 MW Forrest Kerr Rate base growth of 500 million in 250 Mmcf/d co-stream…
  8. MACQUARIE YIELD CORPORATE – Altagas Limited – slide 8
    Incremental EBITDA organic and acquisitions 2012E 2013E 2015E Gas Power Utilities See Forward-Looking Statements & Information 9
  9. MACQUARIE YIELD CORPORATE – Altagas Limited – slide 9
    Increasing stable earnings Growing earnings 5% 9% 70 percent of Unhedged commodity earnings from 7% 15% 12% regulated and long- Hedged commodity 19% term contracted 320M 18% Fee-for-service 4% businesses 14% Renewable…
  10. MACQUARIE YIELD CORPORATE – Altagas Limited – slide 10
    Balanced portfolio PROJECTED EBITDA MIX 2011 2013F 2015F (Including SEMCO) (NW Projects on-stream) Utility 12% Utility Utility Gas 38% 32% 37% Gas Power Gas 45% 34% 54% Power Power 31% 17% SEMCO increases…
  11. MACQUARIE YIELD CORPORATE – Altagas Limited – slide 11
    Continue to execute strategy SEMCO acquisition Grow a key business segment Diversify the Utilities Grow US asset base Grow stable earnings and cash flow to deliver solid dividend growth and capital appreciation Improve financial…
  12. MACQUARIE YIELD CORPORATE – Altagas Limited – slide 12
    SEMCO acquisition Acquire SEMCO Holding Funding Acquire SEMCO Holding Cash to close approximately US Corporation for US 1.135 Corporation for US 1.135 780 million billion including billion including approximately approximately US 355…
  13. MACQUARIE YIELD CORPORATE – Altagas Limited – slide 13
    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 533,000 customers See Forward-Looking Statements &…
  14. MACQUARIE YIELD CORPORATE – Altagas Limited – slide 14
    Gas Business
  15. MACQUARIE YIELD CORPORATE – Altagas Limited – slide 15
    Gas business growth 500 million of capital growth in service in 2012 Long-term contracts with strong counterparties 70 million annualized EBITDA 16
  16. MACQUARIE YIELD CORPORATE – Altagas Limited – slide 16
    Strategic assets 17
  17. MACQUARIE YIELD CORPORATE – Altagas Limited – slide 17
    Optimizing assets - Harmattan Co-stream In service early Q3 2012 Adding approximately 25 million annualized EBITDA 20-year cost-of-service agreement with NOVA 60 percent of capital costs contractually fixed 250 Mmcf/d, 100 km…
  18. MACQUARIE YIELD CORPORATE – Altagas Limited – slide 18
    Liquids-rich play at Gordondale Phase II in service: late-2012 Adding 30-35 million annualized EBITDA Encana processing agreement committing long- term supply 120 Mmcf/d deep cut Two-thirds of costs contractually fixed Addition…
  19. MACQUARIE YIELD CORPORATE – Altagas Limited – slide 19
    Younger extraction plant Licensed capacity 750 Mmcf/d 15,000 Bbls C2+ produced Only fractionation plant in BC Rail, truck and pipeline interconnectivity Evaluating debottlenecking options to move to licensed capacity AltaGas…
  20. MACQUARIE YIELD CORPORATE – Altagas Limited – slide 20
    Power Business
  21. MACQUARIE YIELD CORPORATE – Altagas Limited – slide 21
    Building a diversified power business 2012 2016E Approximate generating capacity: Goal: 1000 MW 600 MW See Forward-Looking Statements & Information 22
  22. MACQUARIE YIELD CORPORATE – Altagas Limited – slide 22
    Power business growth 100 million of new assets in service in 2012 1.0 billion in service 2014/2015 Long-term contracts 1.0 billion underpinned with 60-yr fully CPI indexed contracts with BC Hydro 140 million annualized…
  23. MACQUARIE YIELD CORPORATE – Altagas Limited – slide 23
    NW run-of-river projects - 1.0 billion growth Forrest Kerr McLymont and Volcano Creek In-service estimate: mid-2014 In-service estimate: Q4 2015 Approximately 100 million annualized EBITDA Approximately 30 million annualized EBITDA…
  24. MACQUARIE YIELD CORPORATE – Altagas Limited – slide 24
    Forrest Kerr - Capacity factor 55 to 60 percent Predictable, sustainable hydrology 900 800 700 600 Water flow used Discharge (m/s) for generation 500 400 300 200 Design discharge of 252 m/s 100 Minimum…
  25. MACQUARIE YIELD CORPORATE – Altagas Limited – slide 25
    Financially Disciplined
  26. MACQUARIE YIELD CORPORATE – Altagas Limited – slide 26
    Stable cash flow and earnings Operating income 300 200 100 0 2007 2008 2009 2010 2011 Q1 2012* *TTM *TTM *TTM Gas Power Utilities 2011 EBITDA: 282 million 2011 Funds from operations: 2011 Operating income: 190…
  27. MACQUARIE YIELD CORPORATE – Altagas Limited – slide 27
    A record first quarter Normalized EBITDA ( millions) 92.5 Normalized Operating Income ( millions) 100 80 76.4 80 60 60 40 40 20 20 0 0 Q1-10* Q2-10* Q3-10* Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q1-10* Q2-10* Q3-10* Q4-10…
  28. MACQUARIE YIELD CORPORATE – Altagas Limited – slide 28
    Financial discipline Capital Structure* 350 300 13% 250 Preferred 200 Shares 150 49% Common Shares 38% 100 Debt 50 0 2013 2014 2015 2016 2017 2018 2019 2020 Balanced debt maturity Strong balance sheet profile…
  29. MACQUARIE YIELD CORPORATE – Altagas Limited – slide 29
    Committed capital 2012 to 2014 millions Gordondale 115 Co-stream 25 Other 100 Total Gas 240 Forrest Kerr 450 McLymont/Volcano 200 Other 90 Total Power 740 Total Utilities 250 Total 1,230 Excludes SEMCO acquisition See…
  30. MACQUARIE YIELD CORPORATE – Altagas Limited – slide 30
    Funding our 2012 to 2014 committed capital Uses Sources 675 million FCF Ample liquidity to fund 120 million DRIP capital growth 360 million incremental cash flow from new assets Over 1.2 billion current bank 780 million SEMCO…
  31. MACQUARIE YIELD CORPORATE – Altagas Limited – slide 31
    10-year total shareholder return 1100% total return in the past 10 years 1,400 Compared to 10-yr TSX composite return 1,200 of 7.03% 1,200 1,000 800 600 400 200 100 0 Dec. 31, 2001 Dec. 31, 2011 32
  32. MACQUARIE YIELD CORPORATE – Altagas Limited – slide 32
    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…
  33. MACQUARIE YIELD CORPORATE – Altagas Limited – slide 33
    Appendix
  34. MACQUARIE YIELD CORPORATE – Altagas Limited – slide 34
    2012 milestones Growth projects Area Accomplishments for 2012 Status Power tunnel excavation 85 percent complete Forrest Kerr Power Headwork / intake construction 75 percent complete Complete powerhouse excavation Q2 2012 Receive…

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