Bank of Montreal 2005 Energy Trust Conference June 1, 2005
Business Overview
Energy Value Chain Gathering Processing AltaGas creates value by strategically linking Ga Power asset and service Wellhead End-user components of the energy value chain Transmission Gas Extraction Natural…
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…
Gathering and Processing Net investment of 608.9 million generated 20 million of operating income in the first quarter 2005 BC ALBERTA SASK. 68 field gathering and processing facilities 901 Mmcf/d capacity 6,000 km of pipelines 4…
Energy Services Net investment of 144.8 million generated 9.0 million of operating income in the first quarter of 2005 Energy agency business Over 1,000 customers 478 MW of generating capacity BRITISH ALBERTA COLUMBIA…
Natural Gas Distribution ALTAGAS UTILITIES Net investment of 122 million generated INC. 5.2 million of operating income 100% ownership of AltaGas Utilities Inc. BC ALBERTA SASK. One third interest in Inuvik Gas Ltd. 25% interest in…
Proposed Spin Out of Natural Gas Distribution Segment Rationale Enhance unitholder value Enhance tax efficiency Strengthen balance sheet Improved valuations support build out of Heritage Gas
Proposed Spin Out of Natural Gas Distribution Segment Impact to AltaGas Income Trust No impact on current level of distributions Improved financial metrics Lower target debt to total capitalization of 40% to 45% No significant…
Proposed Spin Out of Natural Gas Distribution Segment Transaction Description Spin out of the Trusts ownership of AltaGas Utilities Inc. and interests in Heritage Gas and Inuvik Gas to a new publicly traded corporation Trust…
Integrated Energy Businesses Net Book Value At March 31, 2005 875.7 million 11% 14% NORTHWEST TERRITORIES 12% 45% 14% B.C. ALBERTA SASK. 4% NOVA ONTARIO SCOTIA
Diversified Asset Focused Business Capital Investment by Component Operating Margin by Component 2005 2005 1,200 Gas services Field Gathering and Processing Extraction ( millions) Energy Services 1,000 Transmission Gas…
Financial Performance
AltaGas Today: Strong and Diversified TOTAL ASSETS EBITDA At March 31, 2005 Three months ended March 31, 2005 1,089.3 million 46.3 million 13% 16% 16% 25% 59% 71% Gathering and Processing Gathering and Processing…
Net Income NET INCOME First quarter 2005 ( Millions) 27.6 million or 150% increase over first quarter 2004 70 65.8 19.7 million or 80% increase over 60 first quarter 2004 - excluding the gains from ownership reduction in 50 40…
Net Income Per Unit NET INCOME PER UNIT First quarter 2005 () Increase of 117% over first quarter 2004 1.40 1.33 Excluding the gains from 1.20 ownership reduction in Taylor, 1.00 0.84 earnings per unit up 54% over 0.80 0.70 first…
EBITDA EBITDA First quarter 2005 ( Millions) 46.3 million or 49% increase over first quarter 140 2004 120 37.1 million or 19% increase over first quarter 100 2004 - excluding the gains 80 from reduction in ownership 60 of Taylor…
Net Revenue by Segment NET REVENUE BY SEGMENT Gathering and Processing ( Millions) Gains related to Taylor 250 255.5 investment 220.3 Acquisition of EEEP 200 172.7 Higher repairs and maintenance 150 135.0 costs 100 82.0…
Capital Expenditures 6.0 million in capital expenditures in first three months of 2005 3.9 million growth 0.7 million administration 1.4 million maintenance Dispositions 8.1 million due to reduction of ownership in Taylor 7.1…
2005 Financial Structure Committed to investment DEBT AS A PERCENTAGE OF grade rating TOTAL CAPITAL * Trust stability rating S&P: SR-3 60% DBRS: STA-3 (middle) 50% Target Range Rating on medium term notes 40% S&P: BBB- DBRS: BBB…
Growth Strategy
Drivers of 2005 Growth Full year impact of 2004 acquisitions October 2004 closed the acquisition of PremStar, a leading Canadian energy agency business August 2004 acquired 48 2/3% of Edmonton Ethane Extraction Plant August 2004 -…
Positioned for Growth Strong gas prices fueled by increasing gas demand and maturing basin Continued growth in power demand Gathering and Processing organic growth with low investment increase facility utilization strong E&P…
Acquisition Strategy Disciplined approach to acquisitions Net income accretive Return on equity accretive Maintain low risk profile Maintain financial flexibility Enhance unitholder value
Investment Highlights
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 Transmission 9 9 9 9 9 9 9 Gas Services 9 9 Power…
Large Cap Liquid Income Trust Market Capitalization 3, 000 2, 500 Infrastructure Trusts 2, 000 Energy Related Business 1, 500 Trusts 1, 000 500 0 Gaz Met Super i or Inter Pi pel i ne Tr ansCanada Pembi na For t Chi…
Industry Relative Performance AltaGas vs. selected S&P/TSX Indices - August 1, 2003 to May 20, 2005 AltaGas S&P/TSX Canadian Income Trust Index S&P/TSX Canadian Energy Index May 20, 2005 normalized closing values AltaGas 211.21…
(thousands) En 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 br id ge Ta yl Tr or an NG sA L lta Po w er Ke ye Fo ra rt Ch ic ag o Pe Al m ta bi na G as Pi pe Average Monthly Trading…
Investment Highlights Demonstrated track record of growth and value creation Strong fundamentals driven by energy demand Integrated energy business with a diversified portfolio of assets and services Strong contractual…
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