Forward-looking information 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,…
AltaGas today Gas Interests in 6 extraction facilities: 1.6 Bcf/d inlet and 86,000 Bbls/d NGL Power production capacity 353 MW coal-fired generation until 2020 77 field gathering and processing 39.4 MW gas-fired peaking capacity…
The most diversified energy infrastructure trust today; an infrastructure corp in 2011 Enbridge EPCOR Fort Inter AltaGas Income Keyera Pembina Power Chicago Pipeline Fund Field Gathering 9 9 and Processing Extraction 9 9 9 9…
Track record of strong results Positioned for growth and sustainable distributions 3.50 3.00 2.50 /unit 2.00 1.50 1.00 0.50 0.00 2004 2005 2006 2007* Q1-2008 Net income* Funds from operations EBITDA * 2007 net…
Growing on a per unit basis Earnings per unit EBITDA per unit 2.25 3.50 2.06 1.99 3.12 2.00 3.03 3.00 2.88 1.90 1.75 2.70 1.67 2.50 1.50 1.33 1.25 2.00 1.00 1.50 0.75 0.58 0.98 1.00 0.50 0.50 0.25 0.00 0.00…
Acquisitions What we look for in an acquisition Long-life, low-risk assets Complementary and integrated assets/businesses Potential to further optimize value/asset Accretive to earnings and cash flow 7
Strategy execution The Taylor acquisition 9 Long-life, low-risk assets 9 Complementary assets/businesses 9 Better balanced AltaGas business 40% E&T, 10% FG&P, 50% Power 9 Asset optimization potential 9 Harmattan, RET,…
A larger and better diversified business 2007 EBITDA Q1-08 EBITDA 24% Extraction & Transmission Field Gathering & Processing 40% Energy Services 43% 51% Power Generation 22% 1% 3% 16% 173.7 Million 63.6 Million…
A stable and growing base business Percentage of Q1-08 net revenue 21% 35% Fixed return and op cost flowthrough Fixed margin/hedged Fixed fee 13% Unhedged commodity 31% 10
A stable and growing gas and power business Gas business Power business 100.0 100.0 94.6 90.9 90.0 90.0 80.0 80.0 Operating Income ( millions) Operating Income (millions) 70.0 70.0 63.4 60.0 59.3 60.0 60.0 47.8 48.7…
A low-risk business model Not driven by commodity price cycles Diversification of businesses Offsetting commodity prices NGL, natural gas and power Large fee-for-service component Downside protection in extraction, with…
Disciplined risk mitigation strategies with upside Frac hedges for 40 - 45% of exposed volumes in place at 20/Bbl for remainder of 2008 and 25/Bbl for 2009 35 Forward Market Frac Spread (/Bbl) 30 25 20 15 10 5 0 May- Aug-…
Disciplined risk mitigation strategies with upside Approximately two-thirds of 2008 PPA volumes hedged at 76/MWh, up from 66/MWh in 2007 Power price AECO price 100 10 90 9 AECO Gas Price (/GJ) 80 8 Power Price (/MWh)…
NEXT for gas Building on existing assets and executing on new initiatives Integrate businesses Diversify businesses New opportunities Focus areas 15
Harmattan growth initiatives 55 million In service late 2008 New pipeline to Carstairs facility New/expanded gathering lines to west and north Efficiency enhancements Increasing processing volumes 25% - 30% Adding 1,800 - 2,400…
Focus on active gas production areas Montney Play Pouce Coupe facility 17
Pouce Coupe sour gas plant expansion 25 million, 20 Mmcf/d planned expansion to existing sweet processing site 18
Focus on unconventional gas sources Shale Mannville Horseshoe CBM Canyon CBM Potential Potential 19
Pursue new gas opportunities Natural gas storage Sarnia Burlington Storage Source: Union Gas website 20
NEXT for power Integration, development and renewables Successful risk mitigation strategy Strong outlook for Alberta power market Increase balance and diversification of power portfolio Integrate and grow with gas business…
Alberta gas-fired peakers Integration and diversification of AltaGas businesses Aerial photograph of AltaGas Bantry gas processing plant east of Calgary Peaking plant location 22
Gas-fired peaking plants Bantry 23
39 MW of gas peaking capacity 24
Continuing expansion into renewables 25
Bear Mountain Wind Park Enercon E-82 turbines in Germany 26
Bear Mountain under construction Site preparation and road construction Site for turbine 34 (furthest south) and south access road 27
Run-of-river projects Hydro generation Hydro generation under development Source: Google maps 28
Strong results expected in 2008 and 2009 Earnings per unit growth in mid to high single digits for 2008 Strong performance from base business Significant power and NGL production hedged at high prices Strong forward power prices and…
Planned capital expenditures 150 million in 2008 and 250 million in 2009 Total In-service 2008 2009 Projects estimated date project cost Southern AB peakers End Q2-08 12 M Power 100 90 Bear Mountain Wind 190 M for Nov. 2009…
Post-2010 transition Characteristics of a leading corporation Strong earnings growth Low payout ratio Low effective tax rate Growth in capital spending Investment-grade credit ratings 31
Prepared and positioned to convert to a corporation AltaGas is well-positioned for the transition 9 Earnings focused and strong track record of growing earnings 9 Low payout ratio target 65-75% of funds from operations 9 Low…
Financial strategy Target Target Rationale Description Efficient access to capital markets and credit Credit Rating BBB- to BBB+ support to Energy Services and Power Generation Distribution 65-75% of funds from Underpin AltaGas…
Positioned for whats NEXT. Balanced asset base Excellent business outlook for gas and power Capable and experienced management team Excellent portfolio of high-quality growth opportunities Financially disciplined Well-positioned…
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