AltaGas & WGL Holdings Strategic Combination High-quality, contracted assets with significant organic growth 15-20% 18 Funds from Operations per 8-10% Dividend Growth Billion Share2 Accretion (2019 2021) Total Enterprise…
Compelling Benefits Acquisition supports AltaGas long-term vision and strategy Business Diversification compatibility (Gas utilities, (3 businesses, 8 utility jurisdictions, in Scale midstream, over 30 states and (C22 billion1…
AltaGas & WGL Significant Infrastructure Platform High-quality, contracted assets with attractive organic growth 2 Bcf/d1 1,078 MW3 4.5B4 of Natural Gas of Power Generation Utility Rate base transacted 70,000 Bbls/d liquids 422 MW…
Leading North American Diversified Energy Company Premier footprint in Canada and the U.S. Segment normalized EBITDA1 (2017F) Balanced Long-Term Gas Power Utilities Target Business Mix 25% 40% 35% All three business segments Fee /…
WGL Overview WGL is a leading diversified U.S. energy company EBIT Contribution By Segment5 Seen as a preferred source of clean and efficient energy solutions that produce value for customers, investors and Utility 60% communities…
Larger Scale Enhances AltaGas Competitive Position TSX: ALA Today CAD Peer Group Enterprise Value ( billions) Common shares outstanding1 172 million Common share trading price2 27.71 50 52-week trading range2 35.55-27.31 45 Market…
Attractive Platform for Growth Through 2021 C7 billion of identified capital investment opportunities Energy U.S. Midstream Storage Marcellus / Utica Footprint Canadian Midstream Canadian Montney Utilities System Betterment…
Combined Midstream in North Americas Most Prolific Gas Plays Strategic infrastructure provides producers with global market access Unique opportunity providing critical infrastructure for energy exports at three sites on both the…
AltaGas Northeast B.C. Strategy Provides new market access for Western Canadian propane producers to Asia Truck Terminal Expected to be Canadas first Blair Creek Raw gas propane export terminal, located on B.Cs west coast Liquids…
Marcellus Pipelines Connecting low cost producers with U.S. consumption markets and exports ME VT NH NY Stonewall Currently in service MI US135 Million Designed to gather 1.4 Bcfd from MA 30% Ownership West Virginia CT RI PA…
Combined Utility Business High quality assets underpinned by regulated, low-risk cash flow Delivering clean and affordable natural gas to homes and businesses in 8 jurisdictions Estimated combined rate base more than doubles and…
Customer Growth and Accelerated Replacements Drive Growth High near-term growth Projected Rate Base Growth (C billions) Expected near-term growth driven by AltaGas WGL customer additions, accelerated New business Replacements…
Michigan Growth Opportunity Marquette Connector Pipeline (MCP) Proposed pipeline that will connect the Great Lakes Gas Transmission pipeline to the Northern Gas pipeline in Marquette, Michigan Approximately 42 miles mainly with 20…
Combined Power Business Generating clean energy with natural gas and renewable sources Diversified Power Portfolio 1,0781 MW of power generation 2% Storage 3% Biomass Power generation in over 20 states and provinces Contracts with…
Governing Financial Principles Delivering growth and security Principles Targets 50 - 60% FFO1 payout ratio 1 Dividend Sustainability 90% of dividends underpinned by long-term contracted cash flow2 Enhancing returns on existing…
Highly Contracted, Low-Risk Business Model Managed Commodity Exposure1 Highly Contracted1,2 2019E (First full year including WGL) 2019E (First full year including WGL) 9% 9% 8% 5% 78% 91% Stable EBITDA Commodity Based…
Yield + Growth Strategy 8% 10% Growth through 2021 50% - 60% payout ratio1 balances company growth and investor return and positions ALA for further dividend growth Dividend growth2 2.10 1.98 1.77 1.53 1.38 1.44 1.32 2010…
Financing Strategy Acquisition financing Future growth financing Long-term financing plan structured to maintain strong Future growth investments to be financed in a manner investment grade credit profile consistent with AltaGas' past…
Strong Liquidity and Investment Grade Credit Rating Prudent deal financing enhances balance sheet strength over the long-term FFO1/Debt 15% Target Combined larger platform and financing plan reinforce a path to improved credit…
Transaction Timeline Update Anticipate additional positive milestones into 2018 Q1-17 Q2-17 Q3-17 Q4-17 H1-18 Transaction Announcement Expected close WGL Shareholder Approval received Vote May 10, 2017 FERC approval Maryland,…
Key Takeaways Near-term catalysts (Next 12 Months) Q3 2017 Q4 2017 Q1/Q2 2018 Commence asset sales for Completion of 99 Mmcf/d Completion of North Pine 10,000 1.5 - 2.5B to coincide with WGL Townsend 2A processing facility Bbls/d C3+…
Appendix
AltaGas Key Focus Areas Greenhouse Gas Total Recordable Injury Emissions* Frequency 1.50 4 3 1.00 2 0.50 1 0.00 0 2013 2014 2015 2016 2013 2014 2015 2016 Million tonnes of CO2 equivalent * Gas Division CDP Scores 2016…
Consistent and Diversified EBITDA1 Growth Successful track record of delivering EBITDA1 growth over time Millions 800 Low double digit growth2 600 400 200 0 2010 2011 2012 2013 2014 2015 2016 2017F Non-commodity %…
Contracted EBITDA1 Substantial increase in long-term contracted and Regulated Gas Distribution EBITDA Breakdown of Midstream EBITDA1 2010 2017F2 45% Fixed / Take-or-pay No volume or commodity price exposure 34% 40% 17% 13% 21%…
Combined Scale to Deliver Growth FFO per share growth of 15% - 20% on average through 2021 AltaGas (Cmm) WGL (Cmm) 1,5 1 Project Expected Capex 1,2 Target In-Service 1 Project Expected Capex Target In-Service Townsend 2A 80 2017…
Committed Projects Highly Contracted 60% EBITDA growth from committed projects, and growth in regulated Utilities1,2 2015 San Joaquin Regulated Gas Mclymont Townsend Energy Storage Townsend 2A North Pine Ridley Island Alton 2020F…
Funding Outlook for 2017 Well funded to support full capital program 1 billion 1 billion Gas Projects DRIP1 - Ridley Island Balanced funding Propane Export Terminal Bank liquidity, Term debt, Bank liquidity, Term debt, for…
Delivering Growth and Security Payout ratio balances company growth and investor return and positions ALA for further dividend growth Dividend growth 1.98 2.10 1.77 Dividend payout as a % of 2017F AFFO3 1.53 1.32 1.38 1.44 8% CAGR…
Valuation Multiple Attractive value for AltaGas, combined with sustainable dividend payment. AltaGas has one of the lowest multiples in the entire sector. 2017F Payout Ratios vs. P/AFFO1 Energy infrastructure group yield and growth2…
Gas
Building Infrastructure to Serve New Markets From wellhead to markets Existing assets Growth projects North Pine NGL NGL Fort Sask. Rail, North facility and other truck & American new processing hub2 pipelines2 Markets…
Stable Production Volumes & Throughput Core plants in sustainable plays Blair Creek 2015 62 Mmcf/d 2016 66 Mmcf/d Gross Annual Throughput 2017E 60 70 Mmcf/d Mmcf/d 1,600 2017F FG&P: Gordondale 406 Mmcf/d * 2015 102 Mmcf/d 1,200…
Montney Competitive at Current Prices Competitive Canadian Production1 USD/Mcfe 3.50 3.00 Painted Pony field cash cost estimated at 0.84 USD/Mcfe2 2.50 2.00 Avg. CDN producer cash cost3 From a pure resource 1.50 perspective, we…
Doubling the Townsend Gas Processing Complex Received regulatory approval for the doubling of the Townsend Facility to 396 Mmcf/d and to retrofit the existing 198 Mmcf/d shallow-cut Townsend Facility to a deep-cut facility at a future…
North Pine NGL Separation Facility to Serve Montney Producers NGL facility to serve Montney producers in northeast British Columbia, near Fort St. John Construction has commenced for the first NGL separation train, with expected…
Propane Export Solution to Enhance Producer Netbacks Truck AltaGas propane export terminal at Blair Creek Terminal Ridley Island (RIPET) is poised to create a hub for key global markets North Pine: to the west 20,000 bbl/d of C3+…
Ridley Island Propane Export Terminal First mover competitive advantage Expected to be Canadas first West Coast propane export terminal Construction is underway and is expected to be in service by Q1 2019 Facility designed for 40,000…
Clear LPG Shipping Cost Advantage to Asia Terminal Cost Rail Cost North Ft. Saskatchewan America 1 10 days Prince Rupert Demand: Supply: Rail Cost Ocean Freight Cost Japan / Korea 1 Demand: Supply: Ocean Freight Cost…
Utilities
Utilities Portfolio - AltaGas1 System betterment program and upgrades underway at Utilities SEMCO Main replacement program (MRP) continues to 2020 with associated average spend of US10 MM annually MRP-1 was first of its kind…
Supportive Regulatory Environment for Regulated Gas Utilities Allowed ROE and Utility Location Regulatory Equity Thickness Next rate case to be filed Q4 2017 for 2018 and 2019 British 9.40%1 Protected from weather related…
Washington Gas Regulatory Environment Utility Location Regulatory Last rate case was filed in June 2016 with a stipulation issued in April 2017 and final Commission approval still pending Virginia Expedited rate cases anticipated…
Power
Northwest B.C. Hydro Stable Long-Term Financial Returns Forrest Kerr 195 MW fully contracted to 2074 McLymont Creek 66 MW fully contracted to 2075 Volcano Creek 16 MW fully contracted to 2074 60 Year PPA with high quality credit (BC…
California Power Portfolio - Development Pomona Additional potential battery project Gas re-powering application under review by the California Energy Commission 100 MW fast ramping LMS100 technology to complement renewables…
Existing Permitted Gas Plants in California Have Embedded Value Which Can Grow Over Time High barriers to entry for new gas fired generation. Steel in the ground has significant value New builds are difficult to permit, expensive to…
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