Agenda 1:30 1:35 p.m. Welcome 1:35 2:45 p.m. Strategy in action: Poised to double over the next five years David Cornhill, Chairman & Chief Executive Officer Growing to 15 billion and beyond John Lowe, Executive Vice President…
STRATEGY IN ACTION Poised to double over the next five years David Cornhill Chairman and Chief Executive Officer
20 years of extraordinary growth 1994 2014 1,062%1 8.1 billion2 1999: TSX Listing 3.5 million 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 Total assets Total shareholder return 1 Based on 100 investment…
Excellent track record Reliable business model Attractive dividend Significant value creation 8% 8% 300% 230% CAGR CAGR TSR2 250% 3.47 AltaGas 3.25 1.77 2.96 200% S&P/TSX Composite Index 2.61 1.53 2.36 1.44 150% 1.38 1.32…
Creating social value Our people are our greatest asset: 1,700 employees A safe and healthy Focused on building Providing sustainable environment is integral long-term relationships benefits to the communities to our success in which…
We have a clear vision To be a leading North American energy infrastructure company with a focus in Canada and the northern and western United States 7
Natural gas renaissance drives our strategy Invest in and operate infrastructure providing clean and affordable energy to North America and Asia Utilities Our natural gas utilities deliver clean and affordable natural gas to homes…
Natural gas renaissance drives our strategy Utilities Invest in and operate utilities that deliver clean and affordable natural gas to homes and businesses in North America STRATEGY IN ACTION Nova Scotia was one of the last…
Utilities strategy in action Building a franchise in Nova Scotia Acquisition / Development / Expansion 2002 Acquired 24.9% interest in Heritage Gas Gained exclusive distribution rights to six 24.9%Ownership 100% Interest counties…
Delivering clean and affordable energy 5 Utilities: Serving over 550,000 customers; 20% Canada; 80% US Rate base: 1.4 billion1 1 As of September 30, 2014; assumes CAD/USD at par 11
Natural gas renaissance drives our strategy Power Invest in and operate assets that generate clean energy with natural gas and renewable sources in North America STRATEGY IN ACTION With the growing demand for clean energy in…
Growing California demand for clean energy MW 15,000 MW new generation required 20,000 Cumulative once-through cooling plants compliance by year1 15,000 10,000 5,000 0 Repower Retrofit Retire 1Source: Pace Global, CAISO…
Power strategy in action Blythe I added 507 MW Blythe III Natural gas-fired plant Blythe II PPA through 2020 50 million in incremental EBITDA Blythe I Blythe II: 500 MW California Blythe III: 500 MW 14
Generating clean energy across North America 391 MW Our power 443 MW assets generate 1,391 MW1 75% from clean energy sources2 11 MW 15 MW 24 MW 507 MW 1 Includes projects under construction 2 Includes gas-fired, hydro, wind, and…
Natural gas renaissance drives our strategy Gas Invest in and operate assets that process and move natural gas to key markets including Asia STRATEGY IN ACTION With the abundant supply of natural gas and NGL in Canada, AltaGas is…
Gas strategy in action Competitive Need for new Acquired Idemitsu Kosan service offering; markets only natural Transportation joint venture strategic through gas pipeline logistics LPG export provides access alliance with energy to…
Video Please visit http://www.altagas.ca/investors/presentations_and_events to view the video 18
Processing and moving gas to key markets Significant processing and logistics capabilityprocessing Significant across North andAmerica logistics capability across North America LNG Significant growth opportunities through…
A strong foundation for continued growth Vertical integration GASGAS POWER POWER UTILITIES Operational expertise Strategic alliances Access to markets 2 Bcf/d 1,391 MW 5 Utilities of natural gas of power generation serving…
7.5 billion in growth opportunities 2015 2019 Poised to double 2014 2019 15+ 4 billion 2 8 1.5 billion 2014 1 Committed Development Evaluation 2019 Total assets Gas Utilities Power 1 As of September 30, 2014 (2015 2019…
We can deliver Delivered more than double 4.5 billion our growth target since 2009 cumulative capital spend 5-year target 1.9 1 2009 IR Day 2010 2011 2012 2013 2014E Capital spend 1 As of September 30, 2014 22
Successfully completed the largest project in our history 195 MW Forrest Kerr facility brought online on time and on budget Intake Powerhouse 23
Poised to double over the next five years 2014 2019 15+ 8 14 19 Total assets (Billions) Future projects 2015 2019 24
GROWING TO 15 BILLION AND BEYOND John Lowe Executive Vice President Corporate Development
To 15 billion and beyond Poised to double 2014 2019 15+ 4 billion 2 8 1.5 billion 2014 1 Committed Development Evaluation 2019 Total assets Gas Utilities Power 1 As of September 30, 2014 (2015 2019 Growth capex) 26
Growing and improving our Utilities 2 billion Grow rate base Provide customers with a secure source of capital spend program clean energy 2015 2019 Economies of scale Billion Committed capital 1.0 0.5 0.0 2015E…
Growing our Power portfolio 1.5 billion capital spend program 2015 2019 Additional power Sonoran expansions (Blythe II) (Blythe III) McLymont Cogen III Committed Development Evaluation 28
Growing our Gas portfolio 4 billion capital spend program 2015 2019 Increase gas processing capacity Increase gas LPG exports processing capacity LNG exports Phase II & III Fractionation expansion Regional LNG LPG exports…
Gas revolution drives growth strategy New networks needed to process and deliver energy to new markets Liquids-rich plays offer producers opportunity to Montney and Duvernay estimated to have more realize higher netbacks than 3,000…
Asia offers attractive LPG and LNG markets Japanese propane sells at a premium Japanese natural gas sells at a to Alberta market1 premium to Alberta market2 Per Bbl Per MmBtu Edmonton Japan* 100 20 Edmonton Avg. Japan Avg. LNG -…
West coast has a clear shipping advantage to Asia Arriving in Chiba, Japan Arriving at Ferndale Middle East 1 19 days Demand: Supply: Japan / North Korea 1 Demand: Supply: 11 days America 1 Demand: Supply: 31 days 14…
Integrated network Younger is the only extraction plant in B.C., located in liquids-rich Montney Competitive fee-for-service midstream services Network of logistic assets to move product to market Leverage our energy export…
Connecting producers from well-head to markets Rail, truck NORTH Fort Sask. hub2 & AMERICAN pipelines2 MARKETS Storage, rail & Existing extraction, NGL truck offloading2 RAW Ferndale processing & GAS Terminal1 fractionation…
Building strategic alliances Signed a 15-year strategic alliance with Painted Pony Petroleum Ltd. Natural gas and NGL processing infrastructure and marketing services Supports reserve growth in the Montney Provides new markets…
Meeting demand for processing infrastructure Pursuing 1 Bcf/d of new processing capacity in liquids-rich areas Build-out of natural gas and NGL processing infrastructure in northeast B.C. is expected 1 billion in investment…
Build-out of infrastructure in northeast B.C. Integrated value chain to meet customer demand Site(s) in hand to develop natural gas liquids infrastructure and provide enhanced logistics and marketing services Provide diverse…
Well-head to markets: AltaGas LPG export offering Sourcing Logistics Markets RAW GAS Existing extraction, NGL Storage, rail & Ferndale processing & truck offloading2 Terminal1 fractionation Abundant natural gas New…
Growing our LPG business on the US west coast Ferndale Exporting LPG to Asia 750,000 Bbls of current storage capacity Exported 3,000,0001 Bbls this year Ramping up to 30,000 Bbls/d over next few years Replace Photo Potential…
Ferndale terminal 40
Targeting an additional 30,000 Bbls/d of LPG Site feasibility underway and in dialogue with potential off-takers 41
Solid returns from LPG service offering Extraction & Logistics fractionation fees fees LPG facility fees Marketing fees & Margin earned on spread to Existing extraction, NGL Asian RAW Storage, rail & Ferndale GAS…
Well-head to markets: AltaGas LNG export offering Sourcing Logistics Markets Existing extraction, RAW processing & GAS fractionation Abundant natural gas New processing infrastructure ASIAN MARKETS PNG pipeline SALES LNG…
PNG pipeline provides competitive advantage Only existing natural gas pipeline that connects to Kitimat and Prince Rupert Shippers backstop development costs Rate base growth Lower costs to current customers British…
Advancing Canadian west coast LNG terminal Douglas Channel LNG project: Phase I 0.55 million tonnes per year British Columbia capacity Douglas Channel site Existing pipeline capacity on PNG Consortium to provide barge District Lot…
Advantages of Douglas Channel LNG Strategically located Proximity to existing infrastructure and Kitimat Access to deep water for LNG berth Access to PNG pipeline; 80 Mmcf/d of existing capacity Douglas Channel LNG Minimizes…
Consortium partners Gathering and processing Independent shipping Leading participant world- capacity and access to company serving the global wide in the LNG market; WCSB supply oil and gas industry; 35 offers services including…
EXMAR is the first in the world to build floating LNG Building, owning, and operating the worlds first floating LNG Source: EXMAR 48
Floating LNG advantages Smaller environmental footprint Shorter lead time to completion Cost control advantages Lower site remediation 49
Longer-term LNG export opportunities Triton LNG: Owned 50/50 by AltaGas and Idemitsu 2.3 million tonnes per year approved by NEB Site being secured 50
Solid returns from LNG service offering RAW GAS Existing extraction, processing & fractionation Abundant natural gas New processing infrastructure ASIAN MARKETS PNG pipeline SALES GAS LNG west coast terminal PNG pipeline…
Regional LNG facilities 250 million investment over five years Plan for achieving 500,000 gallons per day over five years: Dawson Creek: 20,000 gallons per day Growing natural gas distribution network complements gas…
Poised to double over the next five years 2014 2019 15+ 8 14 19 Total assets (Billions) Future projects 2015 2019 53
OPERATIONAL EXCELLENCE & EXECUTING GROWTH David Harris Chief Operating Officer
Diverse operations GAS Inlet gas processed: 1.5 Bcf/d transacted1 More than 70 gathering and processing facilities Network of over 6,500 km of gathering and sales lines POWER Generation capacity: 1,391 MW 2 (60% Canada, 40% US)…
Operational synergies Deployed best Implemented practices across the behavioral based enterprise safety across fleet Power Leveraging Interdependent alliance partners organization Gas Utilities Investing in and leveraging…
20 Years of operational excellence Safety & Talent Operations Capital Asset environment management management effectiveness optimization Driving synergies across our business 57
Operational excellence in 2014 Excellent operating performance and increased volumes at extraction facilities year-over-year GAS - EXTRACTION 18% increase in 4,000 Bbls/d increase in Mmcf/d extraction inlet Bbls/d extraction C2 and…
Operational excellence in 2014 Processing assets performing exceptionally well GAS - PROCESSING 2014 Achievements: Mmcf/d Gordondale Mmcf/d Blair Creek processing throughput processing throughput 120 100 Gordondale licensed…
Operational excellence in 2014 Increased total in-service generating capacity POWER MW Parkland peaker capacity 1,400 increased to 10 MW in Q3 2014 1,300 Forrest Kerr 195 MW in-service 1,200 16 MW Volcano Creek achieved…
Operational excellence in 2014 Excellent operating performance during Blythes first full year of service POWER Blythe generated a record 1,836,000 MWh in 2013 Commercial availability Capacity factor Btu/kWh Heat rate 100% 46%…
Focused on safety first Committed to safety Declining trend in IFRs1 among segments 16 Board of Directors commitment Gas segment Frequency 12 8 Management EOH&S committee: Providing 4 recommendations and ensuring the 0…
Environmental excellence 63
Construction expertise Track record completing major construction projects successfully Bear Mountain Harmattan Co-Stream Gordondale Forrest Kerr & Volcano 2009 2012 2012 2014 Graph represents capital spend 64
Video Please visit http://www.altagas.ca/investors/presentations_and_events to view the video 65
Utilities update 66
Clear strategy at our Utilities Stable, long-life assets Regulated returns Experienced teams Economies of scale Grow rate base 1 billion investment over next five years in existing utilities 67
Focused on growing and improving infrastructure 1 billion Implied Price Continue to assess cyclical market for acquisition opportunities1 investment at existing Utilities to EBITDA Multiple Million 12x 300 Currently 11x over 10x…
System betterment program and upgrades 1.4 billion rate base 1 Implementation of Automated Meter Reading and Meter Data Management systems 45% 55% Multi-year pipeline replacement program Canada US Station refurbishment…
Growing and improving our Utilities Utility Growth projects Multi-year pipeline replacement & station refurbishment programs to ensure safe, reliable gas delivery systems Proposed Bedford Basin looping project will provide…
Power update 71
Alberta power market Alberta generation expected to grow by 70%1 3.8% forecast average load growth over the MW next 5 years 30,000 3.4% forecast average load growth over the next 10 years 24,953 25,000 2.6% forecast average load…
16 MW Volcano Creek Milestone Status Construct powerhouse building Complete Install turbines Complete Intake Complete Complete weir and headrace canal Complete Install penstock Complete Install transmission line Complete…
16 MW Volcano Creek Powerhouse 2013 Powerhouse 2014 74
66 MW McLymont Creek 75 75
66 MW McLymont Creek Milestone Status Powerhouse Intake access road Complete Complete 2.8 km tunnel Q1 2015 Construct intake and weir Q2 2015 Construct transmission line and Mid-2015 switch gear Construct powerhouse and…
66 MW McLymont Creek Powerhouse Power Tunnel 77
Expanding Harmattan with Cogen III 15 MW expansion at Harmattan facility for a total of 45 MW Meeting the increased power demand at Harmattan On schedule and on budget Completed piling and major foundations; combustion turbines…
Doubling the existing 507 MW Blythe facility Blythe II (Sonoran) Acquired Sonoran project for US8.5 million in Q2 2014 Blythe III Gas-fired project; fully permitted and shovel ready Blythe II Potential to double the size of the…
Gas update 80
Townsend 198 Mmcf/d shallow-cut natural gas processing facility Located in the Montney resource play; 100 kilometers north of Fort St. John Painted Pony Petroleum Ltd. has rights to a minimum 150 Mmcf/d of firm capacity…
Alton natural gas storage construction underway Located near Truro, Nova Scotia Phase I: 4.5 Bcf of which 4 Bcf to be contracted with Heritage Gas Construction commenced in Q2 2014 Estimated cost: 100 million Expected…
Increasing utilization at Cold Lake Header construction Expansion to double utilization of the system announced in August 2013 Providing gas supply to SAGD heavy oil projects near Cold Lake, AB Underpinned by long-term take-or-pay…
Dawson Creek construction to commence Q4 2014 Assembled LNGo System LNG production facility located near Dawson Creek Expected to serve commercial and residential markets in displacing diesel fuel Expected cost: 35 million…
We can deliver Added over 420 Gordondale 1 billion Forrest Northwest Kerr Developed Ferndale new Mmcf/d of processing projects substantially markets for Western capability in last three completed: Canadian natural gas: years:…
Poised to double over the next five years 2014 2019 15+ 8 14 19 Total assets (Billions) Future projects 2015 2019 86
MAXIMIZING SHAREHOLDER VALUE Deborah Stein Senior Vice President Finance and Chief Financial Officer
Disciplined financing supports our strategy Ensure strong access to capital markets Maintain investment grade credit ratings Maintain competitive cost of capital Maintain ample liquidity, balance sheet strength and…
2009 - 2014: Five years of business transformation Transformation of our business Successfully executed strategy as outlined five years ago Long-life, stable assets with strong contractual or regulated underpinnings Three balanced…
A larger, more diverse company Grew 4x in size within the last five years with more diversified EBITDA sources, leading to a more reliable cash flow profile Enterprise value growth EBITDA growth Gas Utilities Power 1 1…
Significantly increased geographic diversity and A leading North American energy infrastructure company 2009 Current 91
significantly increased market access Significant processing and logistics capabilityprocessing Significant across North andAmerica logistics capability across North America LNG Significant growth opportunities through…
Significantly improved cash flow quality 100% 6% BBB- 35% BBB- 29% BBB 75% EBITDA 25% 50% 46% BBB 7% A (65%) 25% 33% 15% A (19%) 4% 0% 2009 Current Utilities Gas assets (transmission & co-stream) Contracted…
Significantly improved debt maturity profile Millions 600 Maturity profile 2009 4.6 Year average 300 maturity profile 0 2010 2011 2012 2013 2014 2015 2016 Millions 600 Maturity profile 2014 8.2 Year average maturity…
Effective financial risk management Issuance of long-term fixed rate debt Recent 30-year note at 4.50% in August 2014 INTEREST RATES Seek to extend average debt maturity profile Contracts indexed to CPI with flow through mechanisms…
Conservative payout ratio Payout ratio balances reinvestment and investor return Positioned well for further dividend growth 100% Dividend payout as a percentage of 2013 FFO1 75% 50% 25% 0% Peer 1 Peer 2 ALA Peer 3…
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