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CIBC WORLD MARKETS 2004 INCOME FUND CONFERENCE – Altagas Limited

Altagas Limited · Sep 27, 2004 · 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. CIBC WORLD MARKETS 2004 INCOME FUND CONFERENCE – Altagas Limited – slide 1
    ALTAGAS 10 Years of Extraordinary Growth CIBC World Markets 2004 Income Fund Conference September 2004
  2. CIBC WORLD MARKETS 2004 INCOME FUND CONFERENCE – Altagas Limited – slide 2
    Presentation Agenda Introduction Business Overview Investment Highlights Financial Review
  3. CIBC WORLD MARKETS 2004 INCOME FUND CONFERENCE – Altagas Limited – slide 3
    AltaGas Senior Leadership Team Title At AltaGas Since David Cornhill Chairman and CEO 1994 (inception) Gary Holden President and COO 2003 Patricia Newson SVP Finance and CFO 1996 Dennis Dawson VP General Counsel 1997 and Corporate…
  4. CIBC WORLD MARKETS 2004 INCOME FUND CONFERENCE – Altagas Limited – slide 4
    AltaGas in the News Entrepreneur of the Year Award Recipient (Ernst & Young) 2nd ranked Energy CEO and 30th ranked overall CEO (National Post) Canadas Top 100 Employers (MediaCorp) Top 30 Fastest Growing Companies in Alberta…
  5. CIBC WORLD MARKETS 2004 INCOME FUND CONFERENCE – Altagas Limited – slide 5
    Exceptional Value Creation Demonstrated track record of exceptional growth and value creation Canadas first publicly traded pure-play midstream energy business Incorporated in 1994 with an investment of 37,000 Now one of the largest…
  6. CIBC WORLD MARKETS 2004 INCOME FUND CONFERENCE – Altagas Limited – slide 6
    AltaGas Income Trust on the TSX AltaGas Income Trust effective May 1, 2004 Trust units listed on the TSX as ALA.UN Exchangeable securities do not trade Included in indexes May 14, 2004 S&P/TSX Capped Income Trust Index S&P/TSX…
  7. CIBC WORLD MARKETS 2004 INCOME FUND CONFERENCE – Altagas Limited – slide 7
    Investment Highlights Demonstrated track record of exceptional growth and value creation Integrated energy business with a diversified portfolio of assets and services Stable long-term cash flow from essential industry services…
  8. CIBC WORLD MARKETS 2004 INCOME FUND CONFERENCE – Altagas Limited – slide 8
    Creating Long-Term Value Total Per Annum Equity Returns SINCE ASE Compound LISTING Annual (July Growth Rates 1999) Since IPO SINCE Compound JANUARY Annual Growth 2003 Rates Since January 2003 AltaGas 16.4% AltaGas 60.2%…
  9. CIBC WORLD MARKETS 2004 INCOME FUND CONFERENCE – Altagas Limited – slide 9
    Large Cap Liquid Income Trust mm Market Capitalization 2,500 Infrastructure Trusts 2,000 Energy Related Business Trusts 1,500 1,000 500 0 as or er e lta na IF an r go S et er…
  10. CIBC WORLD MARKETS 2004 INCOME FUND CONFERENCE – Altagas Limited – slide 10
    ALTAGAS Business Overview 10 Years of Extraordinary Growth
  11. CIBC WORLD MARKETS 2004 INCOME FUND CONFERENCE – Altagas Limited – slide 11
    Midstream Energy Value Chain Energy Services Natural Gas Gathering and Processing Distribution Field Gathering and Processing Transmission Extraction AltaGas creates value by opportunistically linking all components of…
  12. CIBC WORLD MARKETS 2004 INCOME FUND CONFERENCE – Altagas Limited – slide 12
    Major Infrastructure Midstream Businesses FIELD GATHERING NET BOOK VALUE AND PROCESSING At June 30,2004 BC ALBERTA SASK. EXTRACTION 779.4 million TRANSMISSION 8% 16% POWER SERVICES GAS SERVICES 48% Edmonton NATURAL GAS…
  13. CIBC WORLD MARKETS 2004 INCOME FUND CONFERENCE – Altagas Limited – slide 13
    Flexible Core Business Line FIELD GATHERING AND PROCESSING 69 facilities with 906 mmcf/d of capacity moveable facilities BC ALBERTA SASK. 62% capacity utilization 40% of revenue from take-or-pay and capital and operating recovery…
  14. CIBC WORLD MARKETS 2004 INCOME FUND CONFERENCE – Altagas Limited – slide 14
    Strategically Located Facilities FIELD GATHERING AND PROCESSING EXTRACTION 4 extraction plants with 539 Mmcf/d inlet BC ALBERTA SASK. capacity, including Albertas newest plant one field fractionation plant approximately 19,500…
  15. CIBC WORLD MARKETS 2004 INCOME FUND CONFERENCE – Altagas Limited – slide 15
    Long Term Stability FIELD GATHERING AND PROCESSING EXTRACTION BC ALBERTA SASK. TRANSMISSION 6 transmission pipelines totaling 750 km 415 mmcf/d volumes attractive cost-of-service assets Suffield pipeline backed by long-term…
  16. CIBC WORLD MARKETS 2004 INCOME FUND CONFERENCE – Altagas Limited – slide 16
    Adding Value by Managing Risk FIELD GATHERING AND PROCESSING EXTRACTION BC ALBERTA SASK. TRANSMISSION POWER SERVICES total power portfolio of 478 MWs supply 6% of Albertas power capacity 1,725 MWh sold at 48/MWh in first half 2004…
  17. CIBC WORLD MARKETS 2004 INCOME FUND CONFERENCE – Altagas Limited – slide 17
    Adding Value by Managing Risk FIELD GATHERING AND PROCESSING EXTRACTION BC ALBERTA SASK. TRANSMISSION POWER SERVICES GAS SERVICES natural gas marketing and supply management Premstar Energy Canada Ltd. - leading energy Edmonton…
  18. CIBC WORLD MARKETS 2004 INCOME FUND CONFERENCE – Altagas Limited – slide 18
    Cost of Service Returns FIELD GATHERING AND PROCESSING EXTRACTION BC ALBERTA SASK. TRANSMISSION POWER SERVICES GAS SERVICES NATURAL GAS DISTRIBUTION 60,000 customers or 6% of Alberta market Edmonton Heritage Gas - invest 32…
  19. CIBC WORLD MARKETS 2004 INCOME FUND CONFERENCE – Altagas Limited – slide 19
    Growth Strategy
  20. CIBC WORLD MARKETS 2004 INCOME FUND CONFERENCE – Altagas Limited – slide 20
    Lower Risk Profile from Integration and Diversification Integrated energy business Capturing value through all components of the midstream value chain Diversified portfolio of assets and services provides stability 3 business…
  21. CIBC WORLD MARKETS 2004 INCOME FUND CONFERENCE – Altagas Limited – slide 21
    Lower Risk Profile from Integration and Diversification Cash Flow Horizon 2004 NET BOOK VALUE At June 30, 2004 779.4 million 100 90 Field Basin Proven FieldGathering Gathering 80 and Processing and Processing Net Book Value…
  22. CIBC WORLD MARKETS 2004 INCOME FUND CONFERENCE – Altagas Limited – slide 22
    Strength and Diversity Approximately CAPITAL INVESTMENT 976 million ( millions) 1000 Energy Services Disciplined growth Energy Services through successful 800 execution of strategies Natural Gas Natural DistributionGas…
  23. CIBC WORLD MARKETS 2004 INCOME FUND CONFERENCE – Altagas Limited – slide 23
    Low Maintenance Capital Low ongoing annual maintenance capital Approximately 5-6 million 5% of 2003 EBITDA Improve operational efficiency Maintain field gathering and processing volumes Maintain rate base
  24. CIBC WORLD MARKETS 2004 INCOME FUND CONFERENCE – Altagas Limited – slide 24
    Attractive Growth Opportunities Strong industry fundamentals provide attractive growth opportunities Gathering and Processing internal growth with low investment combined with accretive acquisitions strong E&P activity with 279…
  25. CIBC WORLD MARKETS 2004 INCOME FUND CONFERENCE – Altagas Limited – slide 25
    Recent Developments May 26, 2004 Premstar Energy Canada Ltd. announced intention to acquire Premstar for 22 million payable by way of 993,789 AltaGas treasury trust units and 1.2 million in cash one of Canada's leading energy agency…
  26. CIBC WORLD MARKETS 2004 INCOME FUND CONFERENCE – Altagas Limited – slide 26
    Comparison to Peer Group Enbridge Fort Inter KeySpan Pembina Taylor Income Chicago Pipeline Facilities Pipelines NGL Fund Field Gathering and Processing 9 9 9 Extraction 9 9 9 9 Transmission 9 9 9 9 9 9 9 Gas Services 9 9…
  27. CIBC WORLD MARKETS 2004 INCOME FUND CONFERENCE – Altagas Limited – slide 27
    Financial Overview
  28. CIBC WORLD MARKETS 2004 INCOME FUND CONFERENCE – Altagas Limited – slide 28
    Strength and Diversity ASSETS EBITDA At June 30, 2004 For the six months ended June 30, 2004 952.6 million 59.0 million 14% 13% 18% 54% 33% 68% Gathering and Processing Gathering and Processing Energy Services Energy…
  29. CIBC WORLD MARKETS 2004 INCOME FUND CONFERENCE – Altagas Limited – slide 29
    Stable Long-Term Cash Flows Stable long-term cash flow from essential industry services Gathering and Processing substantial revenues from take/transport-or-pay and cost recovery contracts area of mutual interest and life of…
  30. CIBC WORLD MARKETS 2004 INCOME FUND CONFERENCE – Altagas Limited – slide 30
    Exceptional Financial Stability and Growth FUNDS GENERATED FROM Annual growth rates OPERATIONS ( Millions) since inception Assets: 75% 105 Net revenues: 54% 90 57% CAGR Funds from operations: 57% 75 Net income: 49% 60 45 30…
  31. CIBC WORLD MARKETS 2004 INCOME FUND CONFERENCE – Altagas Limited – slide 31
    Excellent Outlook for 2004 EBITDA BY QUARTER Strong operational ( Millions) performance in Q2 2004 35 30 Record second quarter and 25 six month results 20 Q2 2004 absorbed: 15 3.5 million conversion costs 10 5 1.7 one…
  32. CIBC WORLD MARKETS 2004 INCOME FUND CONFERENCE – Altagas Limited – slide 32
    Conservative Financial Structure Trust stability rating Debt as a Percentage of Total Capital DBRS: STA-3 (mid) 60% Investment grade rating on medium term notes 50% Trust Target range S&P: BBB- 40% DBRS: BBB(low) 30% Strong…
  33. CIBC WORLD MARKETS 2004 INCOME FUND CONFERENCE – Altagas Limited – slide 33
    Income Trust Strategy Pay stable monthly cash distributions to Trust unitholders Includes both trust units and exchangeable securities Funded from AltaGas existing operations Monthly distributions of 0.15 per unit to be paid on or…
  34. CIBC WORLD MARKETS 2004 INCOME FUND CONFERENCE – Altagas Limited – slide 34
    Income Trust Strategy DRIP / Premium DRIP / Optional Trust Unit Purchase Plan DRIP Distribution Reinvestment Plan Method by which you accumulate, in lieu of your Unit cash distributions, new Trust units at a 5% discount to the…
  35. CIBC WORLD MARKETS 2004 INCOME FUND CONFERENCE – Altagas Limited – slide 35
    Investment Highlights
  36. CIBC WORLD MARKETS 2004 INCOME FUND CONFERENCE – Altagas Limited – slide 36
    Comparables 2 Unit Market Enterprise Net Debt / 1 3 Price Cap. Value EV Dist. Est. Yield (mm) (mm) % % Pipeline and Midstream Trusts 4 Inter Pipeline Fund 7.98 1,415 1,988 28.8% 0.75 9.4% Pembina Pipeline Income Fund 12.10 1,221…
  37. CIBC WORLD MARKETS 2004 INCOME FUND CONFERENCE – Altagas Limited – slide 37
    Investment Highlights Demonstrated track record of exceptional growth and value creation Integrated energy business with a diversified portfolio of assets and services Stable long-term cash flow from essential industry services…
  38. CIBC WORLD MARKETS 2004 INCOME FUND CONFERENCE – Altagas Limited – slide 38
    ALTAGAS 10 Years of Extraordinary Growth CIBC World Markets 2004 Income Fund Conference September 2004

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