AltaGas profile Well positioned with a substantial total enterprise value and an attractive diversified mix of business lines Millions Enterprise Value3 TSX: ALA CAD 25,000 Common shares outstanding1 145 million Common share trading…
Well diversified energy infrastructure Segment EBITDA1 2 Bcf/d of natural gas transacted 25% Processing and moving natural gas Contracted 35% Midstream and natural gas liquids to key Utilities markets including Asia 40% 50%…
Diversification by business and geography EBITDA By Business AltaGas One of the most Enbridge Income Fund Midstream diversified energy Gibson infrastructure Inter Pipeline Power companies in the Keyera Utilities sector…
Consistent and diversified EBITDA growth Successful track record of delivering EBITDA growth over time Millions EBITDA 800 600 400 200 0 2010 2011 2012 2013 2014 2015 F + GWF* Midstream Power Utilities…
Contracted EBITDA with strong counterparties Substantial increase in long-term We have a diversified counterparty contracted and utility EBITDA exposure which is primarily investment grade quality 2010 2016F 1% 100% 0% 9% 40%…
Capital allocation to maximize shareholder value Track record of allocating capital in an efficient manner to maximize risk adjusted returns Millions 1.7 billion 600 million 2,500 completed under construction Millions 1,800…
Well defined growth opportunities across all three business segments 2016 2020 Growth capex 2.2B Pomona 1.8B Sonoran Sonoran & DCLNG Blythe III Alton Liquids separation Processing facilities facilities 0.8B Processing…
Committed projects fully contracted 50% EBITDA growth 2015F GWF Utilities McLymont Townsend Alton 2020F 7 year PPAs with Regulated stable 60 year EPA with 90% Take or Fully contracted PG&E returns in BC Hydro Pay with Painted…
2016 Funding sources and uses of cash Credit facility capacity ( billions) DRIP Bank Bankliquidity, Term Bank liquidity, liquidity, Term Debt, Term shares, Preferred debt, debt, Preferred shares, Preferred shares, Capex…
Sound financial position Strong balance sheet Debt-to-capitalization Executed financing history 70% Millions Target 2,500 60% 50% 2,000 40% 1,500 30% 1,000 20% 500 10% 0% 0 2010 2011 2012 2013 2014 Q3 2015 2011 A 2012 A 2013 A…
Delivering growth and security Dividend payout1,2,3 Payout ratio balances company 56% growth and investor return and 49% 51% 46% 45% positions ALA for further dividend 42% growth 12% increase in dividend in 2015 2010 2011 2012…
Valuation multiple Attractive value for AltaGas, combined with sustainable dividend payment 2016F Payout ratios vs. P/AFFO1 2016F Total payout ratio2 P/AFFO/Sh 350% 20 x 300% 18 x 250% 16 x 200% 14 x Keyera Enbridge IF 150% 12 x…
Committed to creating shareholder value Attractive yield + growth CFPS CAGR 1 7 10% Yield 4 6% Total 11 16% 5 year total shareholder return achieved2 CAGR Cumulative Return 13% 78% 1 Based on achieved growth rates over…
1.1B Northwest BC hydro projects successfully executed Forrest Kerr completed on time Volcano on two years ahead of and on budget schedule See forward-looking statements & information 15
Competitively positioned within California CAISO dispatch curve1 1PA consulting Group GWF Energy Inc. report, May 2015 2Potential future development 3San Gabriel plant would be repowered with new technology (Pomona) 16 See…
Growing demand for flexible natural gas-fired generation 4 GW of new gas-fired generation required in California1 GW 76 Capacity at equilibrium (2021) 74 72 70 68 66 64 62 60 Beyond the need to provide green firming…
Over 1 billion investment in clean power Expanding our clean energy footprint into northern California Tracy 330 MW US 642 million Sonoran (Blythe II) acquisition of Development Tracy, Hanford CAISO has stated and Henrietta…
Delivering clean and affordable energy System betterment program and upgrades underway at all Utilities Implementation of Automated Meter Reading and Meter Data Management systems Multi-year pipeline replacement program…
Capital spend in Utilities: 2016 2020 650 million increase in rate base over the next five years1 Millions 800 700 Utilities 600 500 400 300 200 100 6 - 7% CAGR 0 1 2 3 4 5 6 7 8 9 10 2016F 2017F 2018F 2019F…
Supportive regulatory environment for Utilities Utility Regulatory 2016/2017 two year revenue requirement applications to be filed by end of November 2015 Revenue stabilization adjustment account used to mitigate weather volatility…
Building infrastructure to serve new markets From wellhead to markets Existing assets Growth projects North Rail, truck Fort Sask. American Definitive project & hub2 Markets agreement NGL Storage, rail & truck offloading2…
Stable production volumes & throughput Production volumes High grade asset base with core plants in sustainable plays that drive growth Blair Creek 2014 60 Mmcf/d 2015 65 Mmcf/d Gross Annual Throughput Mmcf/d 1,600 Gordondale…
Best in class midstream operations Reliability Facilities operate with best in class reliability Harmattan Co-Stream Gordondale 2014 98.4% 2014 99.5% 2015 98.1% 2015 100% Blair Creek Blythe 2014 99.1% 20141 93.8% 2015 99.3% 2015…
Sustainability of Montney gas region Trend in drilling in the Montney Gas volumes from the Montney remains positive compared to the expected to exceed 6 bcf/d by 20201 previous 10 years Drilling forecast1 Production volumes1…
Growth opportunities in northeast British Columbia 2016 Increase gas processing capacity 198 Mmcf/d Townsend I under construction; in service expected mid-2016 2017 - 2018 Liquid separation capacity Liquid separation facility near…
Townsend phase 1: under construction 198 Mmcf/d shallow-cut natural gas processing facility enhanced with logistical infrastructure and gathering systems Townsend plant and associated infrastructure: 325 - 350 million Processing…
Fort St. John hub development Development of a liquids separation and processing facility to serve producers in the Montney 20,000 Bbls/d of C3+ and 20,000 Bbls/d of C5+ liquids separation and processing capacity High potential…
Clear LPG shipping cost advantage to Asia Key to long-term sustainability will be cost competitiveness to other North American basins Mb/d Global LPG demand growth led by Asia2 12 8 4 0 2010 2011 2012 2013 2014 2015 2016 2017…
Attractive LPG market fundamentals Propane Price Comparison Propane price netback at Fort Saskatchewan (US/Gal)1 USD/Gal 2.00 Fort Saskatchewan current market MTB less 20 to 30 1.75 1.50 Fort Saskatchewan if one new PDH plant…
LPG exports moving forward Ferndale continues to surpass Definitive project agreement and land sub- expectations lease for the development of a propane Exporting LPG to Asia export facility in British Columbia Expected on-stream date…
Douglas Channel LNG Image for illustrative purposes only See forward-looking statements & information 32
Key takeaways Strong customer focus Committed to lowering costs and unlocking value for producers Proven track record of optimizing, debottlenecking and adding new lines of business to existing facilities Collaborative approach…
Appendix
Creating shareholder value Proven track record of counter cyclical moves and unique transaction structuring to create shareholder value AUI acquisition niche franchise in growing market; good value; below the radar screen of the…
Strong track record of growth Normalized EBITDA Normalized funds from operations Millions Millions 700 500 600 400 500 400 300 300 200 200 100 100 0 0 2015F 2004 2005 2006 2007 2008 2009 2010 2011 2012…
Key sensitivities Foreign Exchange Key variables +/- 0.05 US/CAD 2016 Impact EBITDA 14 MM Frac Spread Key variables +/- 1/bbl 2016 Impact EBITDA 1 MM Alberta Power Price Key variables +/- 1/MWh 2016 Impact EBITDA 2 MM Natural Gas…
Alberta Carbon Policy Establishes a carbon price of 30 per tonne starting in 2018; reduction targets based on best-in-class performance Carbon pricing has no material impact to AltaGas Sundance PPA PPA accounts for less than one…
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