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BMO CAPITAL MARKETS NORTH AMERICAN PIPELINES & UTILITIES CONFERENCE – Altagas Limited

Altagas Limited · Jun 27, 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. BMO CAPITAL MARKETS NORTH AMERICAN PIPELINES & UTILITIES CONFERENCE – Altagas Limited – slide 1
  2. BMO CAPITAL MARKETS NORTH AMERICAN PIPELINES & UTILITIES CONFERENCE – Altagas Limited – slide 2
    AltaGas Ltd. Delivering superior returns BMO conference June 27, 2012
  3. BMO CAPITAL MARKETS NORTH AMERICAN PIPELINES & UTILITIES CONFERENCE – Altagas Limited – slide 3
    A solid investment TSX: ALA EBITDA expected to double by 2015 2.6 billion market cap Double digit growth in Dividend 0.115 monthly; earnings and cash flow 1.38 annually Long-term, stable and 4.5 percent increase in predictable…
  4. BMO CAPITAL MARKETS NORTH AMERICAN PIPELINES & UTILITIES CONFERENCE – Altagas Limited – slide 4
    Were a leading energy infrastructure company 5
  5. BMO CAPITAL MARKETS NORTH AMERICAN PIPELINES & UTILITIES CONFERENCE – Altagas Limited – slide 5
    AltaGas Ltd. Diversified energy infrastructure Financial strength and flexibility Enterprise value 4.5 billion BBB (stable) credit rating Natural gas gathering and processing, Bank liquidity and cash on hand of over 1.2 billion*…
  6. BMO CAPITAL MARKETS NORTH AMERICAN PIPELINES & UTILITIES CONFERENCE – Altagas Limited – slide 6
    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 next 250 Mmcf/d…
  7. BMO CAPITAL MARKETS NORTH AMERICAN PIPELINES & UTILITIES CONFERENCE – Altagas Limited – slide 7
    Increasing stable earnings Growing earnings 5% 70 percent of 9% Unhedged commodity earnings from 7% 15% 12% Hedged commodity regulated and long- term contracted 320M* 18% 19% Fee-for-service businesses 14% 4% Renewable…
  8. BMO CAPITAL MARKETS NORTH AMERICAN PIPELINES & UTILITIES CONFERENCE – Altagas Limited – slide 8
    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 &…
  9. BMO CAPITAL MARKETS NORTH AMERICAN PIPELINES & UTILITIES CONFERENCE – Altagas Limited – slide 9
    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…
  10. BMO CAPITAL MARKETS NORTH AMERICAN PIPELINES & UTILITIES CONFERENCE – Altagas Limited – slide 10
    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…
  11. BMO CAPITAL MARKETS NORTH AMERICAN PIPELINES & UTILITIES CONFERENCE – Altagas Limited – slide 11
    Gas Business
  12. BMO CAPITAL MARKETS NORTH AMERICAN PIPELINES & UTILITIES CONFERENCE – Altagas Limited – slide 12
    Gas business growth 525 million of capital growth in service in 2012 Long-term contracts with strong counterparties 75 million annualized EBITDA 13
  13. BMO CAPITAL MARKETS NORTH AMERICAN PIPELINES & UTILITIES CONFERENCE – Altagas Limited – slide 13
    Strategic assets 14
  14. BMO CAPITAL MARKETS NORTH AMERICAN PIPELINES & UTILITIES CONFERENCE – Altagas Limited – slide 14
    Growing throughput at Harmattan 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 pipeline…
  15. BMO CAPITAL MARKETS NORTH AMERICAN PIPELINES & UTILITIES CONFERENCE – Altagas Limited – slide 15
    Growing deep-cut processing capacity - 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…
  16. BMO CAPITAL MARKETS NORTH AMERICAN PIPELINES & UTILITIES CONFERENCE – Altagas Limited – slide 16
    Growing throughput at JEEP Q3 2012: 20 million acquisition 50 percent interest in 75 Mmcf/day processing plant 2013: 100 million 70km pipeline Connect Gilby and Sylvan Lake to JEEP Long-term contract, dedicated for life-of-…
  17. BMO CAPITAL MARKETS NORTH AMERICAN PIPELINES & UTILITIES CONFERENCE – Altagas Limited – slide 17
    Power Business
  18. BMO CAPITAL MARKETS NORTH AMERICAN PIPELINES & UTILITIES CONFERENCE – Altagas Limited – slide 18
    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…
  19. BMO CAPITAL MARKETS NORTH AMERICAN PIPELINES & UTILITIES CONFERENCE – Altagas Limited – slide 19
    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…
  20. BMO CAPITAL MARKETS NORTH AMERICAN PIPELINES & UTILITIES CONFERENCE – Altagas Limited – slide 20
    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…
  21. BMO CAPITAL MARKETS NORTH AMERICAN PIPELINES & UTILITIES CONFERENCE – Altagas Limited – slide 21
    Financially Disciplined
  22. BMO CAPITAL MARKETS NORTH AMERICAN PIPELINES & UTILITIES CONFERENCE – Altagas Limited – slide 22
    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…
  23. BMO CAPITAL MARKETS NORTH AMERICAN PIPELINES & UTILITIES CONFERENCE – Altagas Limited – slide 23
    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*…
  24. BMO CAPITAL MARKETS NORTH AMERICAN PIPELINES & UTILITIES CONFERENCE – Altagas Limited – slide 24
    Financial discipline Capital Structure* 350 300 14% 250 Preferred 200 Shares 45% 150 Common Shares 100 41% Debt 50 0 2013 2014 2015 2016 2017 2018 2019 2020 Balanced debt maturity Strong balance sheet profile…
  25. BMO CAPITAL MARKETS NORTH AMERICAN PIPELINES & UTILITIES CONFERENCE – Altagas Limited – slide 25
    Funding our 2012 to 2014 committed capital Uses Sources 675 million FCF Ample liquidity to fund 120 million DRIP capital growth 380 million incremental cash flow from new assets Over 1.2 billion current bank 780 million SEMCO…
  26. BMO CAPITAL MARKETS NORTH AMERICAN PIPELINES & UTILITIES CONFERENCE – Altagas Limited – slide 26
    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 27
  27. BMO CAPITAL MARKETS NORTH AMERICAN PIPELINES & UTILITIES CONFERENCE – Altagas Limited – slide 27
    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…
  28. BMO CAPITAL MARKETS NORTH AMERICAN PIPELINES & UTILITIES CONFERENCE – Altagas Limited – slide 28
    Appendix
  29. BMO CAPITAL MARKETS NORTH AMERICAN PIPELINES & UTILITIES CONFERENCE – Altagas Limited – slide 29
    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…
  30. BMO CAPITAL MARKETS NORTH AMERICAN PIPELINES & UTILITIES CONFERENCE – Altagas Limited – slide 30
    Incremental EBITDA organic and acquisitions 2012E 2013E 2015E Gas Power Utilities See Forward-Looking Statements & Information 31
  31. BMO CAPITAL MARKETS NORTH AMERICAN PIPELINES & UTILITIES CONFERENCE – Altagas Limited – slide 31
    Balanced portfolio PROJECTED EBITDA MIX 2015F 2013F (NW Projects on-stream) (Including SEMCO) 2011 Utility 12% Utility 37% Utility Gas Gas 32% Power 38% Gas 46% 33% 55% Power 17% Power 30% SEMCO increases…
  32. BMO CAPITAL MARKETS NORTH AMERICAN PIPELINES & UTILITIES CONFERENCE – Altagas Limited – slide 32
    Building a diversified power business 2016 Natural Gas 2012 Wind Hydro Biomass Coal 20% 12% 35% 20% 12% 60% 2% 6% 4% 29% Approximate generating capacity: Goal: 1000 MW 600 MW See Forward-Looking Statements &…
  33. BMO CAPITAL MARKETS NORTH AMERICAN PIPELINES & UTILITIES CONFERENCE – Altagas Limited – slide 33
    Committed capital 2012 to 2014 millions Gordondale 140 Co-stream 50 JEEP project 120 Other 80 Total Gas 390 Forrest Kerr 450 McLymont/Volcano 200 Other 90 Total Power 740 Total Utilities 250 Total 1,380 Excludes SEMCO acquisition See…
  34. BMO CAPITAL MARKETS NORTH AMERICAN PIPELINES & UTILITIES CONFERENCE – 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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