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NBF PIPELINES AND MIDSTREAM CONFERENCE – Altagas Limited

Altagas Limited · Sep 5, 2012 · 38 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. NBF PIPELINES AND MIDSTREAM CONFERENCE – Altagas Limited – slide 1
  2. NBF PIPELINES AND MIDSTREAM CONFERENCE – Altagas Limited – slide 2
    AltaGas Ltd. NBF Pipelines and Midstream Conference September 5, 2012
  3. NBF PIPELINES AND MIDSTREAM CONFERENCE – Altagas Limited – slide 3
    Delivering superior growth TSX: ALA Growth in dividends 3.3 billion market cap* Double digit growth in earnings and cash flow over Total enterprise value next 4 years approximately 6 billion EBITDA expected to double Dividend…
  4. NBF PIPELINES AND MIDSTREAM CONFERENCE – Altagas Limited – slide 4
    Were a leading energy infrastructure company 4
  5. NBF PIPELINES AND MIDSTREAM CONFERENCE – Altagas Limited – slide 5
    Adding over 200 million EBITDA in 2012 Closed SEMCO acquisition Harmattan Costream in service August 30 third quarter Addition of low-risk, long-life asset US 1.135 billion 20-year cost-of-service agreement US 725 million rate base…
  6. NBF PIPELINES AND MIDSTREAM CONFERENCE – Altagas Limited – slide 6
    Double digit growth in earnings and cash flow 4% 70 percent of 10% Unhedged earnings from 6% 19% commodity regulated and long- 13% Hedged commodity term contracted 27% 22% Fee-for-service 320M* businesses Renewable long-…
  7. NBF PIPELINES AND MIDSTREAM CONFERENCE – Altagas Limited – slide 7
    Strong diversification underpins EBITDA PROJECTED EBITDA MIX 2016F 2013F (NW Projects on-stream) (Including SEMCO) 2011 Utility 12% Utility 37% Utility Gas Gas 31% 36% Gas 46% Power 55% 33% Power 17% Power 33%…
  8. NBF PIPELINES AND MIDSTREAM CONFERENCE – Altagas Limited – slide 8
    Growing demand for natural gas Medium to long-term developments Continued growing demand from oil sands Fuel switching in manufacturing Growing gas-fired power generation Growing demand in transportation Access to Asian markets…
  9. NBF PIPELINES AND MIDSTREAM CONFERENCE – Altagas Limited – slide 9
    Meeting producers needs in the WCSB Focus on liquids rich plays Well understood geology Technological advances Access to processing capacity and markets Low natural gas prices Strong demand for condensate and butane 9
  10. NBF PIPELINES AND MIDSTREAM CONFERENCE – Altagas Limited – slide 10
    One of Canadas largest gas processors Produce 50,000 Bbls/d of C2+ Process 2.0 Bcf/d Over 150,000 Bbls/d of NGL pipeline capacity Transport 0.4 Bcf/d of natural gas Two-thirds of processing capacity serving liquids rich areas…
  11. NBF PIPELINES AND MIDSTREAM CONFERENCE – Altagas Limited – slide 11
    Growing the Gas business in 2012 75 million annualized EBITDA Throughput growth of 450 Mmcf/d Long-term contracts with strong counterparties in place Growing capacity in prolific areas See Forward-Looking Statements &…
  12. NBF PIPELINES AND MIDSTREAM CONFERENCE – Altagas Limited – slide 12
    Growing deep-cut processing capacity Gordondale In service: late 2012 Adding 30-35 million annualized EBITDA 120 Mmcf/d deep cut capacity 94 percent of capital costs committed* Encana processing agreement committing long-term…
  13. NBF PIPELINES AND MIDSTREAM CONFERENCE – Altagas Limited – slide 13
    Growing throughput at Harmattan In service Q3 2012 Adding approximately 30 million annualized EBITDA 250 Mmcf/d, 100 km pipeline increases throughput to near full capacity of 490 Mmcf/d 20-year cost-of-service agreement with…
  14. NBF PIPELINES AND MIDSTREAM CONFERENCE – Altagas Limited – slide 14
    Growing the Gas business in 2013 Growing throughput at JEEP Processing Duvernay gas 50 percent interest in 75 Mmcf/day processing plant for 20 million Connect Gilby and Sylvan Lake to JEEP with 70km pipeline Long-term contract,…
  15. NBF PIPELINES AND MIDSTREAM CONFERENCE – Altagas Limited – slide 15
    Diversified power generation portfolio Over 550 MW generating capacity: Alberta 353 MW coal 72 MW gas fired British Columbia 114 MW renewable United States 48 MW renewable TTM EBITDA 95 million 15
  16. NBF PIPELINES AND MIDSTREAM CONFERENCE – Altagas Limited – slide 16
    Growing the Power business 140 million annualized EBITDA 1.0 billion in service 2014/2015 Constructing 261 MW run-of-river projects 16 MW run-of- river project in advanced development 60-yr fully CPI indexed contracts with…
  17. NBF PIPELINES AND MIDSTREAM CONFERENCE – Altagas Limited – slide 17
    Forrest Kerr In-service estimate: Capital cost estimate: mid-2014 725 million (580 million construction) Approximately 100 million 287 kV, 37 km long annualized EBITDA transmission line, which interconnects with the Northwest 195…
  18. NBF PIPELINES AND MIDSTREAM CONFERENCE – Altagas Limited – slide 18
    Strong capacity factor of 55 to 60 percent Forrest Kerr - Predictable, sustainable hydrology 900 800 700 600 Discharge (m/s) Water flow used for generation 500 400 300 200 Design discharge of 252 m/s 100…
  19. NBF PIPELINES AND MIDSTREAM CONFERENCE – Altagas Limited – slide 19
    Forrest Kerr Ahead of schedule & on budget Milestone Status Commence headworks/intake construction Commence transmission line construction Complete construction access tunnel Commence switchyard construction Complete powerhouse…
  20. NBF PIPELINES AND MIDSTREAM CONFERENCE – Altagas Limited – slide 20
    McLymont Creek on track Key components: Status: 66 MW enough to power approximately 20,000 homes Two of three bridges completed 2.7 km penstock Road construction underway (4 m diameter tunnel) Surface powerhouse Road cleared to Iskut…
  21. NBF PIPELINES AND MIDSTREAM CONFERENCE – Altagas Limited – slide 21
    Volcano Creek on track Key components: Status: 16 MW enough to power Baseline environmental studies approximately 4,000 homes and engineering work is 2.4 km penstock (2m diameter underway pipeline) partially buried In service: Late…
  22. NBF PIPELINES AND MIDSTREAM CONFERENCE – Altagas Limited – slide 22
    Stable long life assets Natural gas distribution utilities in US and Canada 1.2 billion rate base More than 540,000 customers TTM EBITDA 50 million See Forward-Looking Statements & Information 22
  23. NBF PIPELINES AND MIDSTREAM CONFERENCE – Altagas Limited – slide 23
    AltaGas strong utilities Canada US Total of customers 121,000 422,000 543,000 Miles of pipeline 15,370 9,290 24,660 Assumed rate base C595 M US750 M C1,345 M* Regulated ROE** 10% 11.3% Approved debt** 6.25% 5.70% 2013 EBITDA C70 M…
  24. NBF PIPELINES AND MIDSTREAM CONFERENCE – Altagas Limited – slide 24
    Service territories in the US 24
  25. NBF PIPELINES AND MIDSTREAM CONFERENCE – Altagas Limited – slide 25
    Service territories in Canada 25
  26. NBF PIPELINES AND MIDSTREAM CONFERENCE – Altagas Limited – slide 26
    Nova Scotias only natural gas utility 26
  27. NBF PIPELINES AND MIDSTREAM CONFERENCE – Altagas Limited – slide 27
    0.5 billion in Utility growth in next 5 years System betterment Rate Base Growth 900 Millions Greenfield expansion Economic growth Fuel switching Canadian 700 Natural gas fired US power generation Transportation CNG/LNG…
  28. NBF PIPELINES AND MIDSTREAM CONFERENCE – Altagas Limited – slide 28
    Significant LNG driven rate base growth Utilizing Existing Capacity on Feasibility Study to Expand PNG Western System PNG Western System 30-year Transportation Services LNG Partners to fund pipeline Agreement with LNG Partners expansion…
  29. NBF PIPELINES AND MIDSTREAM CONFERENCE – Altagas Limited – slide 29
    AltaGas strategically located assets 29
  30. NBF PIPELINES AND MIDSTREAM CONFERENCE – Altagas Limited – slide 30
    35 B in infrastructure investment required Source: ZIFF Energy 30
  31. NBF PIPELINES AND MIDSTREAM CONFERENCE – Altagas Limited – slide 31
    Delivering strong earnings and cash flow growth 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…
  32. NBF PIPELINES AND MIDSTREAM CONFERENCE – Altagas Limited – slide 32
    Appendix
  33. NBF PIPELINES AND MIDSTREAM CONFERENCE – Altagas Limited – slide 33
    Strong 2012 to date EBITDA Operating income 300 300 200 200 100 100 0 0 2007 2008 2009 2010 2011 YTD 2012 2007 2008 2009 2010 2011 YTD 2012 *TTM Gas Power Utilities 2011 EBITDA: 282 million 2011 Funds from operations:…
  34. NBF PIPELINES AND MIDSTREAM CONFERENCE – Altagas Limited – slide 34
    Financial discipline Capital Structure* 350 300 9% 250 Preferred Shares 200 35% Common 150 Shares 56% 100 Debt 50 0 2013 2014 2015 2016 2017 2018 2019 2020 Strong balance sheet Balanced debt maturity profile Post…
  35. NBF PIPELINES AND MIDSTREAM CONFERENCE – Altagas Limited – slide 35
    Incremental EBITDA organic and acquisitions 2012E 2013E 2015E PNG Heritage/AUI Co-stream Gordondale NW Projects Cogen II/Crowsnest JEEP SEMCO See Forward-Looking Statements & Information 35
  36. NBF PIPELINES AND MIDSTREAM CONFERENCE – Altagas Limited – slide 36
    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…
  37. NBF PIPELINES AND MIDSTREAM CONFERENCE – Altagas Limited – slide 37
    Committed capital fully funded Uses Sources 640 million FCF Ample liquidity to fund 120 million DRIP capital growth 460 million incremental cash flow from new assets 850 million current bank liquidity and cash* 1,380 million…
  38. NBF PIPELINES AND MIDSTREAM CONFERENCE – Altagas Limited – slide 38
    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 38

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