AltaGas profile Well positioned with a substantial total enterprise value and an attractive diversified mix of business lines Millions Enterprise Value4 25,000 TSX: ALA CAD Common shares outstanding1 147 million Utilities 20,000…
Well diversified energy infrastructure Segment EBITDA1 2 Bcf/d of natural gas transacted 23% Highly Processing and moving natural gas Contracted 37% Midstream Utilities and natural gas liquids to key markets including Asia 40%…
Consistent and diversified EBITDA growth Successful track record of delivering EBITDA growth over time Millions 800 600 400 200 0 2010 2011 2012 2013 2014 2015 2016F Midstream Power Utilities Non-commodity % of EBITDA…
Contracted EBITDA Substantial increase in long-term contracted and utility EBITDA 2010 2016F Fixed / Take-or-pay 44% No volume or commodity price exposure 1 34% Cost-of-service / Fee-for-service 13% 4% Some volume and operating…
Cash flow supported by long-term contracts 1 Hydro 1 Power Wind average 15 Gas-fired1 years2 Utilities3 Townsend Gordondale Take-or-pay average Blair Creek 13 years2 Take-or-pay other 0 10 20 60 30 Average duration…
Strong counterparties Diversified, primarily investment 70% of our gas portfolio is with grade counterparty exposure across investment grade counterparties all 3 business lines 100% 100% 9% 28% 80% 80% 40% 60% 60%…
Capital spending plans Maintenance capital for Gas and Power businesses in 2016 expected to…
Committed projects fully contracted 50% EBITDA growth from committed Gas and Power projects that come on-line in 2016, plus Utilities regulated growth (Excludes all other future development projects, which would result in further…
Power portfolio Our power assets generate 1,688 MW1 Assets provide long-term, stable cash flows 100% from clean energy sources2 Weighted average PPA term is 15 years3 Wind 2% Biomass 7% Hydro 16% Power 75% Gas-Fired…
Termination of Alberta PPA Under change in law provisions within the PPA, AltaGas has decided to terminate the Sundance 3 PPA AltaGas power portfolio in Alberta now consists of only 65 MW or 4% of our total generation Aggressive…
Northwest B.C. Hydro Stable long-term financial returns Forrest Kerr 195 MW fully contracted to 2074 McLmont Creek 66 MW fully contracted to 2075 Volcano Creek 16 MW fully contracted to 2074 60 Year PPA with high quality credit (BC…
Attractive clean energy footprint diversified across northern and southern California Tracy 330 MW US 642 million San Joaquin acquisition (Tracy, Hanford and Henrietta plants) Utilities Expected to deliver CAD 95 million in EBITDA…
Brownfield California expansion opportunities Blythe II (Sonoran) Interconnections for Blythe II / III 76-acres adjacent to existing facility New Colorado River substation, connected to SCEs Devers-Palo Verde 2 transmission Amending…
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 400 million increase in rate base over the next five years Total Utility EBITDA Millions Millions 600 300 Historical and forecast rate base growth of 4% - 7%1 500 250 Utilities 200 400…
Supportive regulatory environment for utilities Utility Regulatory 2016/2017 two year revenue requirement applications has been filed Protected from weather related volatility through revenue stabilization adjustment account…
Building infrastructure to serve new markets From wellhead to markets Existing assets Growth projects Definitive project Fort St. John hub Rail, truck North agreement Fort Sask. New processing & American hub2 infrastructure &…
Higher netback solutions for producers AltaGas strategy will Raw gas allow producers to move natural gas and natural gas Liquids mix piped to separation facility and rail liquids to multiple terminal markets AltaGas is poised to…
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 Gross Annual Throughput 2015 63 Mmcf/d Mmcf/d 1,600 2016E 70 - 75…
Montney competitive at current prices Montney became most active upstream Canadian oil and gas play in 2015, with 28% of all industry wells drilled and 53% of total industry drilling capital Henry Hub US supply cost to generate 15%…
Painted Pony strategic alliance Significant underlying value with 57% Townsend facility anchor tenant with 20 year take-or-pay increase in proved plus probable reserves agreement to 4.6 Tcfe at December 31, 2015 Low cost producer Best…
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: 450 - 475 million Processing…
North Pine liquids separation facility Development of a liquids separation and processing facility to serve Montney producers in northeast British Columbia, near Fort St. John 20,000 Bbls/d of C3+ and 20,000 Bbls/d of C5+ liquids…
Ferndale continues to surpass expectations The only existing and operating LPG export terminal on the west coast of North America, located in Washington state 750,000 barrels of on-site storage capacity Target shipments of 50%…
Canadian LPG exports moving forward Definitive project agreement and land sub-lease for the development of the Ridley Island Propane Export Terminal in British Columbia Expected on-stream date 2018 400 to 500 million project…
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 USD/Gal Propane price netback at Fort Saskatchewan (US/Gal)1 2.00 1.75 Fort Saskatchewan current market MTB less 20 to 30 1.50 Fort Saskatchewan if one new PDH plant…
2016 funding sources and uses of cash Total Liquidity ( billions) DRIP1 Bank liquidity, Term debt, Preferred shares, Non- Capex core asset sales, Partnerships 550 - 650 200-350 million 1.0 million Funds from operations…
Sound financial position Millions Executed financing history Strong balance sheet 2,500 2,000 1,500 Debt-to-capitalization 80% 1,000 70% Covenants 500 60% 0 50% 2011 2012 2013 2014 2015 2016 Common Equity Preferred Equity Debt…
Delivering growth and security Payout ratio balances company growth and 120% Dividend payout as a % of 2016F AFFO3 investor return and positions ALA for further 100% dividend growth 80% Average Dividend growth 1.98 60% 1.77 40%…
Valuation multiple Attractive value for AltaGas, combined with sustainable dividend payment 2016F Payout ratios vs. P/AFFO1 Energy infrastructure group yield and growth 2 Dividend Yield P/AFFO/Sh 14% 20 x VSN 12% 18 x 10% 16…
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 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015…
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 Natural Gas Volumes Key variables +/- 10% 2016 Impact EBITDA 7 MM - 10 MM See…
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