AltaGas Ltd Delivering superior returns David Cornhill Chairman and Chief Executive Officer CIBC Energy & Infrastructure Conference Toronto, April 12, 2011 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…
AltaGas Ltd. (TSX:ALA) Diversified energy infrastructure Enterprise value 3 billion Natural gas gathering and processing liquids extraction, and storage Gas-fired, coal and renewable power generation Natural gas distribution…
Leading energy infrastructure company Gas Asset Base Growth 1.6 Bcf/d interests in 6 120 Mmcf/d Gordondale gas plant under extraction facilities development 1.2 Bcf/d gas processing 250 Mmcf/d Harmattan Co-stream project under…
2 billion of organic growth Processing facilities NGL extraction facilities Gas storage Gas-fired power Wind power Run-of-river power Waste heat recovery 6
Significant progress on capital growth plans Objective: 2,000 2 billion in organic growth (2010-2016) ( millions) 1,500 2010 progress report: Approximately 1.4 billion in 1,000 committed growth capital secured (includes…
2010 Accomplishments Significant progress on executing our growth strategy Strong access to capital markets Our Growth Projects Business What Weve Accomplished This Year 60-yr EPA with BC Hydro and IBA signed with First Nations in…
Gas business growth focus Grow processing facilities to meet growing unconventional gas supply in Western Alberta and Northeast BC 25 20 Billion cubic feet/day 15 10 Conventional Gas Coalbed Methane 5 BC Horn River…
Gordondale processing facility 120 Mmcf/d deep cut Encana processing agreement committing long-term supply Capital cost estimate: 235 million Phase I: 10 percent of volumes processed by mid-2011 Phase II in-service:…
Abundant gas supply in Gordondale area Gordondale area geology, Gordondale third party land positions reserve estimates Operated Undiscovered Remaining Producer Gas Reserves Producible (BCF) (BCF) Arc 35 200 Artek 0.3 18…
Younger extraction plant Licensed capacity 750 Mmcf/d Only fractionation plant in BC Owned 57 percent and operated by AltaGas Rail, truck and pipeline interconnectivity 30 percent interest in 250 Mmcf/d pipeline project to bring…
Abundant gas supply in Younger area Younger third party land positions Younger area reserve estimates Existing & Producer Potential Gas Reserves (BCF) Arc Resources 220 CNRL 535 Crew Energy 145 EnCana 245 Huron Energy…
Harmattan Co-stream project 250 Mmcf/d, 100 km pipeline increases throughput to near full capacity of 490 Mmcf/d Deep cut facility maximizes producer net-backs Positioned as a regional hub; rail, truck and pipeline…
Power business growth focus Run-of-river projects in BC 400 MW under development NW projects (277 MW) In-service estimate: 2014-2016 Waste heat recovery 6 MW project, EPA with BC Hydro Gas-fired cogeneration 15 MW cogeneration…
NW run-of-river power projects Forrest Kerr run-of-river 195 MW capacity EPA with BC Hydro 60 year, 100 percent CPI adjusted Returns: expect after-tax unlevered IRR in low double digits Capital estimate: 700 million…
Forrest Kerr project 17
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 Water flow used for 500 percent capacity from generation 400…
Building a diversified power business Generation Capacity by Fuel Type 2010 2016E 20% 1% 11% 69% 19
Utility business growth focus 278 million 2010 rate base Rate base growth will drive earnings growth AUI 16 percent rate base growth in 2011 Heritage 25 percent rate base growth in 2011 Driven primarily by: Expansion of…
Managing growth Forrest Kerr 20 percent fixed by 2010 75 percent contractually fixed by 2011 90 percent contractually fixed by 2012 Co-stream 60 percent contractually fixed through project life Gordondale Two-thirds…
Growing and diversifying EBITDA 6% 13% Unhedged Commodity 21% Hedged Commodity 16% 16% 27% Fee for Service 22% Renewable Long Term 23% Contracted 5% 33% Regulated Returns, Utility 34% and Contracted 2010 2016E…
Funding our 2011-2016 committed capital 1,100mm committed capital 1,200mm FCF (past 3 yr avg)* 700mm dividends (at current rate) 180mm DRiP 975 million current bank liquidity** 1.8B in uses 2.4B in sources Ample liquidity…
Stable earnings Stable earnings through market cycles Earnings supported by diversified energy infrastructure Utilities added in late 2009 In 2008 historically high power prices and Taylor acquisition 24
Looking forward 2011 2012 Stronger results from all Projects in service: businesses Co-stream Gordondale Phase I complete Cogen II Younger pipeline complete Waste heat recovery Higher deferred taxes (non-cash Gordondale taxable…
2011 Milestones Completion of shorter term projects, and progress longer term construction projects on time and on budget. Our Growth Projects Business Milestones in 2011 Complete access and surge tunnels, start construction on…
Conclusion Attractive portfolio of energy infrastructure assets Committed capital growth plan focused on stable, long-term contracted projects and regulated asset growth Continuing to strengthen our existing asset base Financial…
Forrest Kerr construction site 30
Arial view of portal location for access tunnel 31
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