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SEPTEMBER 2010 INVESTOR DAY – Altagas Limited

Altagas Limited · Sep 9, 2010 · 43 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. SEPTEMBER 2010 INVESTOR DAY – Altagas Limited – slide 1
    Investor Day 2010 Cover_outline text.indd 1 9/9/2010 3:21:40 PM
  2. SEPTEMBER 2010 INVESTOR DAY – Altagas Limited – slide 2
    Forward-looking information Certain information presented today may constitute forward-looking statements with respect to AltaGas Ltd. Such statements reflect AltaGas Ltd.s current expectations, estimates, projections and assumptions.…
  3. SEPTEMBER 2010 INVESTOR DAY – Altagas Limited – slide 3
    Strategic Overview David Cornhill Chairman and Chief Executive Officer 1 Leading energy infrastructure company Meeting energy demand Diverse assets Natural gas gathering and processing, liquids extraction, storage and…
  4. SEPTEMBER 2010 INVESTOR DAY – Altagas Limited – slide 4
    AltaGas strategy Continued focus on: First, optimizing existing business Second, growing and diversifying our business Grow gas and power businesses in: Canada Northern and Western US Reduce carbon footprint through growth in…
  5. SEPTEMBER 2010 INVESTOR DAY – Altagas Limited – slide 5
    Growing supply of natural gas Natural gas production* United States Canada Mexico North American natural gas Trillion cubic feet supply to grow significantly 40 30 20 10 0 2015F 2020F 2025F 2030F 2035F Growing North…
  6. SEPTEMBER 2010 INVESTOR DAY – Altagas Limited – slide 6
    Growing North American gas demand 2010 North American Demand (73 Bcf/d) 2020 North American Demand (94 Bcf/d) 11% 9% 29% Industrial 26% 18% 20% Commercial Electrical generation 10% 13% Residential 27% Other 37% Demand…
  7. SEPTEMBER 2010 INVESTOR DAY – Altagas Limited – slide 7
    Growing demand for cleaner sources of power Incentive programs support the strong growth expected in the renewables industry Renewable Portfolio Standards (RPS)/ Guidelines highlights: British Columbia over 90% of generation from…
  8. SEPTEMBER 2010 INVESTOR DAY – Altagas Limited – slide 8
    Growth and diversification strategy at work EBITDA 10% Unhedged Commodity 20% Hedged Commodity 18% 20% Fee for Service 26% 25% Renewable Long Term 27% Contracted 4% Reg Utility and Contracted 25% 25% 2010E 2016E…
  9. SEPTEMBER 2010 INVESTOR DAY – Altagas Limited – slide 9
    Stable & Growing Energy Infrastructure Richard Alexander President and Chief Operating Officer 1 Gas business 2
  10. SEPTEMBER 2010 INVESTOR DAY – Altagas Limited – slide 10
    Growth through stable revenue sources Gas operating income ( millions) Q2-2010 Gas Segment Net Revenue 115.7 120 110.3 103.6 100 38% 80 47% 63.3 59.3 60 7% 40 8% 20 Fee-for-service 0 Cost-of-service and take-or-pay…
  11. SEPTEMBER 2010 INVESTOR DAY – Altagas Limited – slide 11
    Extraction production Ethane NGLs 40,000 35,000 30,000 Production (Bbls/d) 25,000 20,000 15,000 10,000 5,000 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 YTD 2010* Steadily increasing extraction…
  12. SEPTEMBER 2010 INVESTOR DAY – Altagas Limited – slide 12
    FG&P processing throughput 600 500 Throughput (Mmcf/d) 400 300 200 100 0 96 97 98 99 00 01 02 03 04 05 06 07 08 09 * 10 19 19 19 19 20 20 20 20 20 20 20 20 20 20…
  13. SEPTEMBER 2010 INVESTOR DAY – Altagas Limited – slide 13
    Gas business growth focus Growing gas supply in Western Alberta and Northeast BC Montney and Horn River Shale plays CBM 25 20 Billion cubic feet/day 15 10 Conventional Gas Coalbed Methane BC Horn River BC Montney…
  14. SEPTEMBER 2010 INVESTOR DAY – Altagas Limited – slide 14
    Harmattan Co-stream project 100 km pipeline Sundre Olds Capital estimate: Harmattan NGTL Eastern 100-130 million Complex Alberta System Sales gas ERCB hearing 250 Mmcf/d completed on Five extraction September 9, 2010 plants…
  15. SEPTEMBER 2010 INVESTOR DAY – Altagas Limited – slide 15
    Acme expansion Expansion of existing AltaGas plant to process additional Horseshoe Canyon CBM natural gas Capital estimate: 5 million In-service: Q3-2010 Opportunities for further expansion 13 Ante Creek expansion…
  16. SEPTEMBER 2010 INVESTOR DAY – Altagas Limited – slide 16
    Groundbirch project 28 Mmcf/d gas plant Dedicated take-or-pay agreement Capital estimate: 28 million In-service estimate: Q4-2010 15 Pouce Coupe sour gas expansion Expansion of existing AltaGas plant to process 20…
  17. SEPTEMBER 2010 INVESTOR DAY – Altagas Limited – slide 17
    Natural gas distribution growth focus Grow natural gas distribution rate base Expect approximately 20% consolidated rate base growth in 2010 Over 200MM capex in the next 5 years Driven primarily by: Expansion of Heritage Gas…
  18. SEPTEMBER 2010 INVESTOR DAY – Altagas Limited – slide 18
    Natural gas distribution rate base growth Rate Base 600 M illions () 390 409 421 437 452 400 299 356 250 200 0 2009A 2010O 2011 2012 2013 2014 2015 2016 AUI Heritage Total AUI 9% rate base growth per year in 2011 2016…
  19. SEPTEMBER 2010 INVESTOR DAY – Altagas Limited – slide 19
    Power business 21 Revenue underpinned by hedging strategy Power operating income ( millions) Q2-2010 Power Segment net revenue 117.9 120 94.6 100 90.9 88.0 82.4 66% 80 60 31% 40 3% 20 0 Fee-for-service 2006…
  20. SEPTEMBER 2010 INVESTOR DAY – Altagas Limited – slide 20
    Hedging strategy Daily Average Alberta Power Pool Price Average price received by AltaGas 300 250 /MWh 200 150 Chart 100 truncated at 300/MWh. Hourly 50 Alberta power pool price reached as 0 high as Jan-05…
  21. SEPTEMBER 2010 INVESTOR DAY – Altagas Limited – slide 21
    Changing market dynamics Previous Process New RRO 100% 90% 20% 80% 40% 70% 60% 60% 80% 50% 100% 100% 40% 80% 30% 60% 20% 40% 10% 20% 0% Jul 05 - Jun 06 Jul 06 - Jun 07 Jul 07 - Jun 08 Jul 08 - Jun 09 Jul 09 - Jun…
  22. SEPTEMBER 2010 INVESTOR DAY – Altagas Limited – slide 22
    NW power projects Forrest Kerr Project Capacity 277 MW Total 195 MW 60 year EPA with BC Hydro 100 per cent CPI indexed Forrest Kerr Returns: expect after-tax 195-MW unlevered IRR in low double McLymont digits 66-MW Creek…
  23. SEPTEMBER 2010 INVESTOR DAY – Altagas Limited – slide 23
    Building a diversified power business Generation Capacity by Fuel Type 2010 2016E 21% Coal 29% 1% Natural Gas 34% Hydro 8% Wind 71% 8% 29% Increasing generation capacity Fuel type diversification 29 2 billion…
  24. SEPTEMBER 2010 INVESTOR DAY – Altagas Limited – slide 24
    Forrest Kerr Run of River Project David Harris General Manager, Forrest Kerr Project 1 Forrest Kerr Located in NW BC 195 MW Capacity Largest single site run of river hydro facility in North America utilizing a single…
  25. SEPTEMBER 2010 INVESTOR DAY – Altagas Limited – slide 25
    Project background AltaGas acquired Forrest Kerr in 2008 Located in the Tahltan First Nation traditional territory on the Iskut River, in Northwestern BC Run of river project designed to minimize environmental impact 37km…
  26. SEPTEMBER 2010 INVESTOR DAY – Altagas Limited – slide 26
    Weir and intake 5 Tunneling & site preparation Total linear meters of tunneling: 4,870m Power Tunnel: 3,200 m Access Tunnel: 850 m Surge Tunnel: 520 m Tailrace Tunnel: 300 m Tunnel dimension 10mX10m (D Shaped) Three…
  27. SEPTEMBER 2010 INVESTOR DAY – Altagas Limited – slide 27
    Generator and substation 7 Transmission line to Bob Quinn 8
  28. SEPTEMBER 2010 INVESTOR DAY – Altagas Limited – slide 28
    Construction risk & mitigation strategy Risk Mitigation Location (remote) Establish Base Camp Integrate Local Labor & Contractors (Tahltan) Timing (down market) Weather 95% of project is underground Off-site modularization River…
  29. SEPTEMBER 2010 INVESTOR DAY – Altagas Limited – slide 29
    Forrest Kerr high capacity factor Forrest Kerr - Average Daily Flow at Intake based on 41 years of data 900 800 700 600 Discharge (m/s) Generates at 100 percent Water flow used for generation 500 capacity from mid-May…
  30. SEPTEMBER 2010 INVESTOR DAY – Altagas Limited – slide 30
    Forrest Kerr key milestones Milestone Completion Date 1. Site-Prep & Base Camp Mobilization Aug-Sep 2010 2. Finalize Contracting Strategy Q3 2010 3. Critical Path Engineering Q3/4 2010 4. Release Turbine Generator Package Q4 -…
  31. SEPTEMBER 2010 INVESTOR DAY – Altagas Limited – slide 31
    Finance: Supporting Our Strategy Debbie Stein VP Finance and Chief Financial Officer 1 Financial highlights Net Income 250 200 2% 163.6 =2 GR 141.3 150 CA 114.5 108.8 90.3 100 65.8 64.8 38.3 50 17.6 19.2…
  32. SEPTEMBER 2010 INVESTOR DAY – Altagas Limited – slide 32
    Financial highlights 350 300 7% 250 R=1 CAG 217 202 200 Funds From Operations 162 163 150 129 109 90 96 100 71 50 41 50 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 YTD 2010 350 300 R= 16% 250 CAG 256…
  33. SEPTEMBER 2010 INVESTOR DAY – Altagas Limited – slide 33
    Finance strategy Support disciplined growth strategy and strong energy infrastructure business Minimize cost of capital Credit rating upgrade in 2009 200M in preferred shares issued at favourable rates Ensure liquidity New…
  34. SEPTEMBER 2010 INVESTOR DAY – Altagas Limited – slide 34
    2010 Finance initiatives 2010 financing initiatives 200 million MTN Issuance (March) 600 million credit facility renewed (June) 200 million Preferred Shares (August) Manageable debt maturity profile 669 million of available credit…
  35. SEPTEMBER 2010 INVESTOR DAY – Altagas Limited – slide 35
    Committed capital 350 300 250 ( millions) 200 150 100 50 0 2010E 2011E 2012E 2013E 2014E 2015E 2016E Forrest Kerr NGD Other Objective: 2B in organic growth (2010-2016) 2010 progress report: +1.2B in committed growth…
  36. SEPTEMBER 2010 INVESTOR DAY – Altagas Limited – slide 36
    Our disciplined financial focus Grow strong and stable earnings and cash flows Diversify business and manage risk Balance income and growth Manage our capital growth projects Maintain financial strength and flexibility Minimize…
  37. SEPTEMBER 2010 INVESTOR DAY – Altagas Limited – slide 37
    Senior Management Team Gregory A. Aarssen (B.Sc.(Hons), MBA, LLB) Vice President Corporate Affairs Gregory Aarssen was appointed Vice President Corporate Affairs in January 2008. Mr. Aarssen is responsible for public policy, federal and…
  38. SEPTEMBER 2010 INVESTOR DAY – Altagas Limited – slide 38
    Senior Management Team Jeremy Baines (B.Sc., MBA, CBV) Vice President and Treasurer Jeremy Baines joined AltaGas in the role of Treasurer in July 2005. Prior to joining AltaGas, Mr. Baines spent six years in senior level roles in the…
  39. SEPTEMBER 2010 INVESTOR DAY – Altagas Limited – slide 39
    Senior Management Team over 20 years of oil and natural gas experience including nine years as General Counsel for Pan-Alberta Gas Ltd., a major Canadian natural gas marketing company. Myles Dougan (B.A., IMBA) Vice President,…
  40. SEPTEMBER 2010 INVESTOR DAY – Altagas Limited – slide 40
    Senior Management Team worked for Fluor Canada Ltd. for six years. Mr. Mattson graduated with a management degree from the University of Lethbridge and an MBA from Queen's University in Kingston. Patricia M. Newson (CA) President,…
  41. SEPTEMBER 2010 INVESTOR DAY – Altagas Limited – slide 41
    Senior Management Team Deborah S. Stein (B.A., CA, CPA) Vice President Finance and Chief Financial Officer Deborah Stein was appointed Vice President Finance and Chief Financial Officer in January 2008. Prior to this position she was…
  42. SEPTEMBER 2010 INVESTOR DAY – Altagas Limited – slide 42
    Senior Management Team management positions at Husky Energy, Petro-Canada and Williams Energy, and has more than 12 years of engineering experience in various capacities, including plant and operations. Mr. Toone holds a Bachelor of…
  43. SEPTEMBER 2010 INVESTOR DAY – Altagas Limited – slide 43
    Investor Day 2010 Cover_outline text.indd 2 9/9/2010 3:21:42 PM

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