ALTAGAS 10 Years of Extraordinary Growth March, 2005
Presentation Agenda Introduction Business Overview Fourth Quarter and 2004 Financial Performance Investment Highlights Certain information in this presentation is forward-looking. Such information is subject to certain risks,…
AltaGas Income Trust Profile AltaGas Income Trust effective May 1, 2004 Total units outstanding 53.2 million as at December 31, 2004 49.8 million trust units 3.4 million exchangeable units Trust units listed on the TSX as ALA.UN…
Our Energy Portfolio Gathering Energy Natural Gas and Processing Services Distribution Field gathering Power services AltaGas Utilities and processing Gas services Heritage Gas Extraction Oil and natural Inuvik Gas Transmission…
Proven Business Strategy Focus on energy infrastructure based assets along the midstream value chain Diversify our portfolio of assets and services revenue source contractual term geographic location commodity Extend cash flows…
ALTAGAS Business Overview 10 Years of Extraordinary Growth
Three Strong Operating Segments GATHERING Net Book Value December 31, 2004 AND 909 million PROCESSING ENERGY SERVICES 71% NATURAL GAS DISTRIBUTION NORTHWEST TERRITORIES 15% 14% B.C. ALBERTA SASK. OPERATING INCOME (…
Gathering and Processing Segment FIELD GATHERING AND Net Book Value PROCESSING December 31, 2004 640 million EXTRACTION BC ALBERTA SASK. TRANSMISSION 15% OTHER 57% 22% Edmonton 6% OPERATING INCOME ( millions) 50…
Energy Services Segment POWER SERVICES Net Book Value December 31, 2004 GAS SERVICES 147 million OIL AND GAS PRODUCTION 75% BRITISH ALBERTA 13% COLUMBIA ONTARIO 12% Edmonton Oakville OPERATING INCOME ( millions)…
Natural Gas Distribution Segment Net Book Value ALTAGAS UTILITIES INUVIK GAS LTD. December 31, 2004 INC. Northwest Territories 122 million BC ALBERTA SASK. 4% Inuvik 2% 94% HERITAGE GAS Edmonton LIMITED Nova Scotia…
Premier Midstream Assets Northwest Territories Nova Scotia BC ALBERTA SASKATCHEWAN Inuvik Halifax M oH isle F rL a g ke o Edmonton FIELD GATHERING AND PROCESSING EXTRACTION TRANSMISSION NATURAL GAS DISTRIBUTION…
2004 Operational Highlights Acquired 48 2/3 interest in Edmonton Ethane Extraction Plant Acquired PremStar leading Canadian energy agency business Leased 25 MW of gas fired peaking facility in Alberta Facility expansions at several…
2004 Financial Performance 13
AltaGas Today: Strong and Diversified ASSETS EBITDA At December 31, 2004 For the year ended December 31, 2004 1,108.6 million 133.4 million 14% 11% 15% 53% 36% 71% Gathering and Processing Gathering and Processing Energy…
Net Income NET INCOME ( Millions) 2004 65.8 million, 72% increase 70 over 2003 60 Fourth Quarter 2004 50 25.8 million, 115% increase 40 over 2003 30 Strong Performance 20 Gathering and Processing Energy Services 10…
Net Income Per Unit NET INCOME PER UNIT () 2004 1.33 58% increase over 2003 1.40 Fourth Quarter 2004 1.20 0.49 88% increase over 2003 1.00 Units Outstanding 0.80 53.2 million (36.7 million 2003) 0.60 0.40 0.20 0.00 2001…
EBITDA EBITDA ( Millions) 2004 133.4 million 9% 140 increase over 2003 120 100 Fourth quarter 2004 80 40.6 million 17% increase over 2003 60 40 20 0 2001 2002 2003 2004 Annual 69.9 94.8 121.9 133.4 17
Net Revenue NET REVENUE 2004 ( Millions) 249.8 million 14% increase over 2003 250 Fourth quarter 2004 71.6 million 16% 200 increase over 2003 150 100 50 0 2001 2002 2003 2004 Annual 135.0 169.9 219.9 249.8 18
Net Revenue by Segment NET REVENUE BY SEGMENT Gathering and Processing ( Millions) Increased volumes in all components Acquisitions and expansions 250 Fee increases 200 Energy Services 150 PremStar acquisition 100 Higher power…
2004 Capital Investments 130 million in invested capital for 2004 119 million growth capital 6 million maintenance capital 5 million administration capital 20
2004 Financial Structure Trust stability rating DEBT AS A PERCENTAGE OF S&P: SR-3 TOTAL CAPITAL DBRS: STA-3 (middle) 60% Rating on medium term notes S&P: BBB- 50% Target Range DBRS: BBB (low) 40% Capital structure 30% December 31,…
Guiding Financial Principles Trust tax efficient structure manage as a corporate with high payout ratio Key Financial Metrics earnings per unit investments must be accretive debt ratio target 45 - 50% total capitalization payout…
Growth Opportunities 23
Positioned for Growth Strong gas prices fueled by increasing gas demand and declining supplies Forward market for power prices unsustainably low Gathering and Processing organic growth with low investment increase facility…
Acquisition Strategy 2 deals announced in fourth quarter of 2004 EBITDA Multiples at 11x to 12x Large producers have announced divestiture plans Disciplined approach to acquisitions Earnings accretive Maintain low risk profile…
Drivers of 2005 Growth Acquisition opportunities Full year impact of 2004 acquisitions October 2004 closing of the acquisition of Premstar Energy Canada Ltd., a leading Canadian energy agency business August 2004 acquired 48 2/3% of…
Investment Highlights 27
Premier Energy Trust Enbridge Fort Inter Keyera Pembina Taylor Income Chicago Pipeline Facilities Pipelines NGL Fund Field Gathering and Processing 9 9 9 Extraction 9 9 9 9 9 9 9 9 9 9 Transmission 9 Gas Services 9 9 Power…
Large Cap Liquid Income Trust Market Capitalization 3,000 Infrastructure Trusts 2,500 Energy Related Business 2,000 Trusts 1,500 1,000 500 0 e na S et go er as ra or r ta er in ri…
Exceptional Financial Stability and Growth FUNDS GENERATED FROM Annual growth rates OPERATIONS ( Millions) since inception assets: 69% 110 net revenues: 50% 100 53% CAGR funds from operations: 53% 90 80 net income: 51% 70 60 50…
Experienced Team Strong corporate governance focus Internally managed Incentives based on business performance Experienced senior leadership team with an average of 23 years of energy industry experience Approximately 600 highly…
2005 Outlook Expect growth to continue Gathering and Processing ahead of 2004 producers active, significant well tie-in activity impact of acquisitions and expansions Energy Services ahead of 2004 power pricing and operations…
Investment Highlights Demonstrated track record of growth and value creation Strong fundamentals driven by natural gas Integrated energy business with a diversified portfolio of assets and services Very low risk model Substantial…
ALTAGAS 10 Years of Extraordinary Growth March, 2005
Predictable and Stable Cash Flow Cash Flow Horizon - 2004 100 Gas services(1) 90 80 Field gathering and processing Net Book Value (%) 70 60 50 Power services 40 Extraction 30 20 Transmission 10 Natural Gas…
Midstream Energy Value Chain Diversity business commodity geographic location revenue source contractual terms various industry cycles cost of service and fee based contracts 37
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