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CIBC WHISTLER CONFERENCE – Altagas Limited

Altagas Limited · Jan 24, 2013 · 48 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. CIBC WHISTLER CONFERENCE – Altagas Limited – slide 1
  2. CIBC WHISTLER CONFERENCE – Altagas Limited – slide 2
    AltaGas Ltd. Whistler Institutional Investors Conference January 24, 2013 1
  3. CIBC WHISTLER CONFERENCE – Altagas Limited – slide 3
    Were a leading energy infrastructure company 3
  4. CIBC WHISTLER CONFERENCE – Altagas Limited – slide 4
    Delivering superior growth Enterprise value over Growth in dividends 6 billion 4.3 percent increase in 2012 Market cap 3.5 billion Long-term, stable and Diversified energy predictable cash flow infrastructure in Canada and the U.S.…
  5. CIBC WHISTLER CONFERENCE – Altagas Limited – slide 5
    Key milestones in 2012 Delivering double digit growth in earnings and cash flow per share More than doubled rate base with SEMCO acquisition 20 percent increase in gas processing capability 13 percent increase in power…
  6. CIBC WHISTLER CONFERENCE – Altagas Limited – slide 6
    Diversified energy infrastructure Gas Power Utilities Process and transport over 2.0 Generate over 550 MW power: Operate three Canadian Utilities and Bcf/d two Utilities in the U.S. - 353 MW coal in Alberta Produce 50,000 Bbls/d of…
  7. CIBC WHISTLER CONFERENCE – Altagas Limited – slide 7
    Increasing our business diversification SEMCO increases Utility EBITDA Equally balanced portfolio with NW projects on stream 2015 Pie charts represent total business EBITDA See Forward-Looking Statements & Information 7
  8. CIBC WHISTLER CONFERENCE – Altagas Limited – slide 8
    Increasing our geographic diversification SEMCO increases U.S. EBITDA Potential growth in U.S. power Pie charts represent business EBITDA See Forward-Looking Statements & Information 8
  9. CIBC WHISTLER CONFERENCE – Altagas Limited – slide 9
    Well diversified Utility business Delivering natural gas to United States over 540,000 customers SEMCO: Michigans third Alberta largest natural gas utility AUI: Albertas second ENSTAR: Alaskas largest largest natural gas utility…
  10. CIBC WHISTLER CONFERENCE – Altagas Limited – slide 10
    More than doubled utility rate base in 2012 Added 130 million annualized EBITDA Acquired SEMCO A regulated natural gas utility with operations in Michigan and Alaska SEMCO distributes gas to over 420,000 customers Rate base of…
  11. CIBC WHISTLER CONFERENCE – Altagas Limited – slide 11
    Strong cash flow from Utilities in 2013 Growing volumes Strong rate base growth from volume demand and system betterment Greenfield expansion 900 Fuel switching Rate Base (millions) Natural gas fired power 700 generation…
  12. CIBC WHISTLER CONFERENCE – Altagas Limited – slide 12
    Our Gas business Process and transport over 2.0 Bcf/d Produce 50,000 Bbls/d of C2+ Two-thirds of processing capacity serving liquids-rich areas Well positioned to meet producers needs Strong construction and operating…
  13. CIBC WHISTLER CONFERENCE – Altagas Limited – slide 13
    Natural gas - growing demand and supply Strong demand growth Fuel switching in manufacturing Growing gas-fired power generation CNG, LNG, and gas-to-liquids opportunities Strong supply growth Technology advances Liquids-rich…
  14. CIBC WHISTLER CONFERENCE – Altagas Limited – slide 14
    Growing Canadian resource picture Existing Conventional Tight Gas Shale Gas Northern Coalbed Produced Offshore Methane 390 TCF 700 - 1300 TCF 70 years of supply 100+ years of supply Source: Canadian Society for…
  15. CIBC WHISTLER CONFERENCE – Altagas Limited – slide 15
    Strategically located in key liquids-rich gas plays C/Mcf JEEP Harmattan Ante Creek JEEP Marlboro Gordondale Marlboro Alder Flats Blair Creek AltaGas Gilby Alder Flats Alder Flats Pouce Coupe Younger Assets Marlboro Gilby…
  16. CIBC WHISTLER CONFERENCE – Altagas Limited – slide 16
    Throughput growth at Harmattan in 2012 In-service: Q4 2012 250 Mmcf/d, 100 km pipeline increases throughput to near full capacity of 490 Mmcf/d 20-year cost-of-service agreement with NOVA Chemicals Located near Mannville and…
  17. CIBC WHISTLER CONFERENCE – Altagas Limited – slide 17
    Growth in deep-cut processing capacity in 2012 Gordondale In-service: Q4 2012 120 Mmcf/d deep cut capacity Long-term committed contract with Encana Located in the Montney: largest low-cost liquids-rich resource play in the WCSB…
  18. CIBC WHISTLER CONFERENCE – Altagas Limited – slide 18
    Growth in deep-cut processing capacity in 2012 Expanded Blair Creek 50 Mmcf/d completed and commissioned in August 2012 Represents 5 percent increase in total gas processed Long term committed contracts with three active…
  19. CIBC WHISTLER CONFERENCE – Altagas Limited – slide 19
    Gordondale gas plant strong drilling results Potential Future Expansion 19
  20. CIBC WHISTLER CONFERENCE – Altagas Limited – slide 20
    Our diversified power generation portfolio Over 550 MW power generating capacity Alberta 353 MW coal 72 MW gas British Columbia 114 MW renewable United States 50 MW renewable 20
  21. CIBC WHISTLER CONFERENCE – Altagas Limited – slide 21
    Building a diversified power business 2012E 2016E Natural Gas Natural Gas Wind Wind 12% Hydro Hydro Biomass 20% Biomass Coal Coal 35% 20% 12% 60% 6% 2% 4% 29% Approximate generating capacity: Approximate generating…
  22. CIBC WHISTLER CONFERENCE – Altagas Limited – slide 22
    Power portfolio increased by 13 percent in 2012 Added 10 million annualized EBITDA Harmattan 15 MW Cogeneration II Gordondale 3.4 MW natural gas fired peaker U.S. Power Assets 35 MW biomass 15 MW wind TTM EBITDA 96 million* See…
  23. CIBC WHISTLER CONFERENCE – Altagas Limited – slide 23
    NW run-of-river projects Forrest Kerr 195 MW capacity 55 percent capacity factor 60 year EPA with BC Hydro 100 percent CPI indexed Capital cost estimate: 725 million Approximately 100 million annualized EBITDA In-service…
  24. CIBC WHISTLER CONFERENCE – Altagas Limited – slide 24
    Strong capacity factor of 55 to 60 percent Forrest Kerr - Predictable, sustainable hydrology 900 800 700 600 Discharge (m/s) Water flow used for generation 500 400 300 200 Design discharge of 252 m/s 100…
  25. CIBC WHISTLER CONFERENCE – Altagas Limited – slide 25
    Forrest Kerr intake 25
  26. CIBC WHISTLER CONFERENCE – Altagas Limited – slide 26
    Forrest Kerr intake structure 26
  27. CIBC WHISTLER CONFERENCE – Altagas Limited – slide 27
    Forrest Kerr powerhouse construction 27
  28. CIBC WHISTLER CONFERENCE – Altagas Limited – slide 28
    NW run-of-river projects McLymont and Volcano Creek 82 MW capacity under construction 60 year EPA with BC Hydro 100 percent CPI indexed Capital cost estimate: 300 million Approximately 30 million annualized EBITDA In-service…
  29. CIBC WHISTLER CONFERENCE – Altagas Limited – slide 29
    A leading energy infrastructure company 2012 to 2014 2014 2014 Post 2014 Significant projects in-service by 2014 29
  30. CIBC WHISTLER CONFERENCE – Altagas Limited – slide 30
    Strong track record * * *TTM as at Q3 2012 30
  31. CIBC WHISTLER CONFERENCE – Altagas Limited – slide 31
    Growth in stable earnings and cash flow Over 80 percent from stable earnings 4% 10% Unhedged commodity Less than 10 Hedged commodity percent of 2013 6% 13% EBITDA generated Stable Earnings by commodity sales 86% 14% 15% 27%…
  32. CIBC WHISTLER CONFERENCE – Altagas Limited – slide 32
    Growing stable predictable dividends Dividends underpinned Double digit compounded by regulated assets annual growth in cash flow Growing dividends * See Forward-Looking Statements & Information * Assumes 1.44 per share…
  33. CIBC WHISTLER CONFERENCE – Altagas Limited – slide 33
    Delivering stable, predictable earnings and cash flow Seasonality of EBITDA from SEMCO and hydro assets provides a more consistent quarterly cash flow profile See Forward-Looking Statements & Information 33
  34. CIBC WHISTLER CONFERENCE – Altagas Limited – slide 34
    Opportunities across businesses and geographies 34
  35. CIBC WHISTLER CONFERENCE – Altagas Limited – slide 35
    Significant infrastructure investment required LEGEND PNG Pipeline (owned by ALA) Pacific Trail Pipeline Liard Cordova Basin Embayment Horn River Feasibility Study Aitken Creek Expansion of PNG Storage pipeline to 600…
  36. CIBC WHISTLER CONFERENCE – Altagas Limited – slide 36
    PNG: strategically located Only pipeline from producing regions in Alberta and BC to the west coast New market access as early as 2015 Rate base growth Lower transportation tolls See Forward-Looking Statements & Information 36
  37. CIBC WHISTLER CONFERENCE – Altagas Limited – slide 37
    LNG: Significant growth potential across all businesses Utilities Power Increased generating capacity to Utilizing existing capacity on support growth PNG Pipeline Gas 30-year firm transportation Increased processing capacity…
  38. CIBC WHISTLER CONFERENCE – Altagas Limited – slide 38
    AltaGas strategic assets Anchorage ENSTAR CINGSA 38
  39. CIBC WHISTLER CONFERENCE – Altagas Limited – slide 39
    A leading energy infrastructure company 2012 to 2014 2014 2014 Post 2014 Significant opportunities post-2014 39
  40. CIBC WHISTLER CONFERENCE – Altagas Limited – slide 40
    Executing our finance strategy Maintain investment grade credit ratings Stable investment grade ratings for all entities Ensure good access to capital markets and strong liquidity Post acquisition of SEMCO, S&P reaffirmed AltaGas…
  41. CIBC WHISTLER CONFERENCE – Altagas Limited – slide 41
    Executing on near-term opportunities 2 Year Stock Price Performance 41
  42. CIBC WHISTLER CONFERENCE – Altagas Limited – slide 42
    Proven long-term shareholder returns 10 Year Stock Price Performance 35 30 25 Share Price 20 15 10 5 0 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13…
  43. CIBC WHISTLER CONFERENCE – Altagas Limited – slide 43
    Delivering strong earnings and cash flow growth Strong, diversified business Attractive portfolio of energy Capital growth focused on stable, long-term infrastructure assets contracted projects Opportunities to grow Proven track…
  44. CIBC WHISTLER CONFERENCE – Altagas Limited – slide 44
    Appendix 44
  45. CIBC WHISTLER CONFERENCE – Altagas Limited – slide 45
    Financial discipline Term Debt Maturity Positions Capital Structure* As at October 31, 2012 500 9% 400 Preferred Shares PNG 35% 300 Common SEMCO Shares 56% 200 AltaGas Debt Ltd 100 0 Strong balance sheet Balanced…
  46. CIBC WHISTLER CONFERENCE – Altagas Limited – slide 46
    Forrest Kerr intake structure 46
  47. CIBC WHISTLER CONFERENCE – Altagas Limited – slide 47
    Forrest Kerr construction 47
  48. CIBC WHISTLER CONFERENCE – Altagas Limited – slide 48
    *NTL transmission pole installation * Northwest Transmission Line 48

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