Forward-looking information y Certain information presented today may constitute forward- looking statements with respect to AltaGas Income Trust (the Trust). Such statements reflect the Trusts current expectations, estimates,…
Strategic Overview David Cornhill, Chairman & Chief Executive Officer 1 Leading energy infrastructure company Business Operations and/or Development Opportunities 2
2 billion of projects in pipeline Run-of-river projects Wind projects Harmattan Co-Stream Gas processing projects Gas storage projects 3 Gas business strategic focus Extraction y Grow volumes FG&P y Increase facility…
Harmattan Co-Stream Project 5 Gas processing opportunities y Working with Tier 1 producers y Significant gas processing projects y Key strategic areas y Sour gas facilities with acid gas injection 6
Gas storage opportunities y Exploring sizeable storage opportunities in Michigan y Working with strategic partners y Recently completed first storage asset Current gas storage Gas storage opportunity 7 Rate regulated…
Power business strategic focus y Expand and grow power capacity y Reduce emission intensity y Clean sources, including gas-fired generation y Renewable sources, including wind, run-of- river and geothermal 9…
Gas-fired peaking plants 11 Bear Mountain Wind Park 12
Wind projects Wind power generation under construction Wind power generation under development 13 Walker Ridge y 70-MW project y Northern California y Submitted into 2009 Renewable RFO Glen Ridge y 100-MW project y…
Run-of-river projects Run-of-river hydro generating power Run-of-river hydro - under development Run-of-river hydro - under development (with PPA) 15 Forrest Kerr project y Located in northwest B.C. y Hatch Energy…
Geothermal energy y Long-life assets y Reliable, renewable energy source y Base-load power y Consistent, predictable cash flows 17 Balancing growth with income y Pursuing 2 billion of real growth projects Significantly grow…
2010 and beyond: substantial growth y Finance growth through increasing free cash flow y Increased ability to access debt markets y Work with strategic partners 19
Stable & Growing Energy Infrastructure Richard Alexander, President & Chief Operating Officer 1 Our business Meeting energy demand y Diverse assets and services y Stable revenue sources Quality growth opportunities y Gas and…
Gas assets Extraction plant Transmission Pipeline Field Gathering and Processing Area Storage facility 3 Growth through stable revenue sources Gas operating income ( millions) YTD 2009 net revenue 120 from gas…
Active drilling areas Northeast B.C. and Northwest Alberta Montney Play Coal bed methane in Central Alberta Field Gathering and Processing Area 9 Natural gas pricing forecast 10 8 Gas price (/GJ) 6 4…
Sarnia gas storage y First infrastructure investment in Ontario y Completed on time and on budget y Expected to contribute EBITDA of 3 million per year y Pursuing additional significant storage in Michigan 11 Power…
Growth through stable revenue sources Power operating income ( millions) 117.9 YTD 2009 net revenue 120 from power business 106.3 100 90.9 94.6 32% 80 60 48.7 35.8 40 68% 20 Hedged revenue 0 2004 2005 2006 2007*…
Alberta power supply/demand outlook Alberta Internal Peak Demand Forecast vs. Alberta Firm Generation Capacity Sources: EDC demand forecast; AltaGas generation capacity forecast based on publicly available information. 15…
Growth in power generation capacity Generation capacity at year-end (MW) Coal-fired Gas-fired Hydro Wind 500 400 300 200 100 0 2002 2003* 2004 2005 2006 2007 2008 2009 * AltaGas entered into a three-year contract for…
Estimated Growth In-service Estimated Capital Status project estimate Return ( millions) Harmattan 100-120 Q4-2010 Mid teens Regulatory process Co-Stream Pouce Coupe 25 Q2-2010 Low teens Regulatory process sour gas expansion Ante…
Harmattan Co-Stream Project Project status y Capital estimate: 100- 120 million y In-service estimate: November 2010 y Application currently before ERCB y MOU with NOVA for long- term cost-of-service 21 FG&P…
Pouce Coupe sour gas expansion y Expansion of existing AltaGas Pouce Coupe gas plant to process 20 Mmcf/d processing plant and gathering line sour gas y Located in area of strong producer activity BRITISH y Capital estimate: 25…
Younger extraction plant y Facility expected to be close to full capacity by year-end New volumes from northeast B.C. developments y Opportunities to bring additional liquid-rich gas from Montney area 25 Northwest B.C.…
Log Creek and Kookipi Creek y Two 10-MW run-of-river hydro projects y 40-year EPAs with BC Hydro y Capital estimate: 60-70 million y In-service estimate: Q1- 2013 y Permitting, engineering and environmental studies 27…
Gas outlook y Increased earnings from 2008 and 2009 capital program y Stronger extraction volumes no scheduled turnarounds y Hedged 61% of 2009 frac spread exposed NGLs at 27/Bbl y Stronger Energy Services results y Producer…
2009 another strong year 31
Major Projects: Bear Mountain Wind Park Jim Bracken, Senior Vice President Major Projects 1 Bear Mountain Wind Park y B.C.s first operational wind park y 102 MW of wind power y 25-year PPA with BC Hydro y Total capital…
Transmission lines and substation 3 Arrival of turbines 4
Arrival of turbines 5 Arrival of turbines 6
Erection of towers 7 Erection of towers 8
Installation of blades 9 Installation of blades 10
Installation of blades 11 First turbine spinning 12
Project status y Construction proceeding smoothly 34 towers and nacelles erected 16 turbines installed 11 turbines delivering power to the BC grid Substation and interconnections complete y Project on time and on budget 13…
Success factors y Fixed-price turbine supply and construction with a leading turbine manufacturer y BC Hydro 25-year indexed contract y Project management and execution plan in place 15 Success factors y Strong BC…
Finance: Supporting Our Strategy Debbie Stein VP Finance & Chief Financial Officer 1 Our business strategy y Capitalize on integrated energy value chain y Optimize existing businesses y Grow and diversify energy infrastructure…
2010 and beyond y Stable and sustainable cash flows Low-risk, long-life energy infrastructure assets y Corporate structure in H2 2010 Lower payout ratios No cash taxes y Substantial growth opportunities Strong balance sheet…
Strong track record 4.00 3.50 3.00 2.50 /unit 2.00 1.50 1.00 0.50 0.00 2004 2005 2006 2007* 2008 TTM 2009** Net income Funds from operations EBITDA Distributions * 2007 net income shown net of 0.09 per unit…
Diversification strategy at work Q2-09 YTD EBITDA* 2010E EBITDA* 7% 5% E&T 37% 36% FG&P 43% Energy Services Conventional 32% Power Renewable Power 5% Gas 17% 15% Distribution** 3% Increased cash flow…
Finance strategy Support disciplined growth strategy and strong energy infrastructure business y Minimize cost of capital y Ensure liquidity y Ensure access to capital markets y Maintain optimal level of financial risk 9…
Finance strategy at work y 2009 financing initiatives 100 million equity issue (January) 250 million credit facility (February) 300 million MTN issues (April and June) y Debt to total capitalization of 36.1 percent* y Credit upgrade…
Financial strength and flexibility Relative to comparables, AltaGas continues to have stronger coverage and lower leverage levels EBITDA to interest coverage* Debt to capitalization* 12x 90% 10x 75% BBB median BBB 64% 7.9 8x…
Estimated growth capital 2009-2015 (millions) Gas Harmattan Co-Stream 120 FG&P plant expansions and growth projects 185 Storage 200 Natural gas distribution 60 565 Power Harmattan Co-generation 25 Wind 400 Hydro 950 1,375…
Growth capital 2010 and beyond y Planned capex = 1.7 billion (2010 -2015) Gas 1800 y Harmattan Complex projects 1500 y FG&P projects ( millions) 1200 y Storage 900 600 Power 300 y Clean energy projects Forrest Kerr,…
Tax horizon y Low cash taxes until 2015 y Will continue to grow pools as invest in business Tax pools at December 31, 2008 Approximately 870 million Planned expenditures 2009/2010 600 million CCA estimated deduction 2009-2010* 300…
Financial strategy supports growth y Unutilized credit facilities y Access to capital markets Universal shelf prospectus y Strong credit metrics Investment-grade credit rating y Manageable debt maturity profile y Increasing free cash…
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…
Senior Management Team Alberta, Mr. Baines has earned a Chartered Business Valuator (CBV) designation from the Canadian Institute of Chartered Business Valuators. James (Jim) Bracken (CA) Senior Vice President Major Projects James…
Senior Management Team Mr. Dawson has 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. Massimiliano Fantuz (B.Sc., P.Eng.)…
Senior Management Team Prior to joining AltaGas, Ms. Stein held controllership, risk, audit, and investor relations roles, most recently with TransCanada Corporation. Ms. Stein has a Bachelor of Arts in Economics from York University, is…
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