2019 Outlook and Strategic Financial Review December 13, 2018
Randy Crawford Introduction Enhancing the Value of our Asset Footprint Randy Crawford President and Chief Executive Officer 3
World-Class Assets More than 21B 3 Bcf / d 4.4B 75% Normalized EBITDA1 U.S. Utilities Assets Natural Gas backed by medium Rate Base Transacted and long-term agreements 1 Non-GAAP measure; see discussion in the advisories…
Immediate Priorities 1 De-lever the balance sheet 2 Create financial flexibility 3 Improve credit metrics 4 Achieve a self-funded capital plan See Forward-looking Information 5
The Game Plan Balancing prudent financial management with investment opportunities in Midstream and U.S. Utilities Steps Action Items Reshape AltaGas Closed 9.3 billion WGL acquisition 1 Focus on Midstream Phase 1 asset sales of 2.4…
The Game Plan Balancing prudent financial management with investment opportunities in Midstream and U.S. Utilities Steps Action Items Reshape AltaGas Closed 9.3 billion WGL acquisition 1 Focus on Midstream Phase 1 asset sales of 2.4…
Asset Sales Northwest Hydro Facilities Agreement to sell remaining 55% interest in Northwest Hydro Agreement to sell remaining 55% interest in Northwest Hydro Facilities for 1.39 billion The valuation achieved for the remaining…
The Game Plan Balancing prudent financial management with investment opportunities in Midstream and U.S. Utilities Steps Action Items Reshape AltaGas Closed 9.3 billion WGL acquisition 1 Focus on Midstream Phase 1 asset sales of 2.4…
Balanced Funding Plan Priorities Regain financial strength and flexibility to efficiently fund growth Financial flexibility Optimize cost Accelerate of capital Maintain capital Recapture de-levering Eliminate near-term…
Tim Watson Balanced Funding Plan Strengthening the Cost of Capital Tim Watson Executive Vice President and Chief Financial Officer 11
Balanced Funding Plan Priorities Regain financial strength and flexibility to efficiently fund growth Financial flexibility Optimize cost Accelerate of capital Maintain capital Recapture de-levering Eliminate near-term…
Dividend Reset Designed to maximize long-term value and strengthen the cost of capital January dividend reset to 0.08 (equating to 0.96 annually) 56% reduction 1 Retained cash flow provides efficient source of funding for…
Dividend Reset Significant impact on financial flexibility and credit profile through 2023 1.3 billion of cash dividends retained Cash Dividends Retained ( millions) through 2023 provides efficient source 300 of financing to…
Asset Sales Efficient source of capital to strengthen balance sheet and fund growth Asset Sales ( billions) Strong Execution 3.8 billion completed or agreed to Sale Proceeds1 1.5 - 2.0 Phase 3 2019 Asset Sales (millions) Targeted…
Strengthening the Balance Sheet Accelerated de-leveraging and repaying the bridge facility (US billions) 1.39 billion of proceeds from sale of US2.3 remaining 55% interest in Northwest Hydro will be received in early 2019 and will…
Disciplined Capital Allocation 1.3 Billion Top-Quality Projects ( millions) Identified Projects: Approved system 33 betterment across Mountain all utilities Valley Accelerated pipe 112 replacement Pipeline programs in…
2019 Balanced Funding Plan 2019 Sources and Uses ( millions) 4,940 4,940 Balanced funding plan eliminates the need 660 Hybrids & Preferreds for near-term common equity and provides funding flexibility Debt Repayment 2,120 -…
2019 Financial Outlook 20
Secured Capital In-Service Drives 2019 EBITDA Growth Capital Into Service (Cmillions) 2500 Secured Capital Program (Cmillions unless otherwise specified) 2000 Power Expected Target Capital/EBITDA Utility 2019 Annual Capital Capex1,2…
2019 Outlook Segmented EBITDA 2019 EBITDA1 Guidance Normalized 2019 % of Segmented ( millions) EBITDA 2019e EBITDA Growth Drivers + Full year of WGL 1600 Utilities 650 - 700 51% + Utility capital and rate base growth 1,200 - 1,300 +…
2019 Financial Outlook UAFFO 2019 Guidance ( millions) FFO 2019e Maintenance Capital 2019e Normalized EBITDA1 1,200 - 1,300 Midstream Maintenance Capital 14MM Cash Interest (330) - (340) Other2 15 - 25 Power Maintenance Capital…
Randy Crawford Closing Remarks Playing Where We Can Win and Maximizing Returns Randy Crawford President and Chief Executive Officer 24
Executing on our Strategy STRATEGY Leverage and enhance the strength of our asset footprint to provide customers with integrated solutions including global market access Grow footprint in Western Canadian Drive incremental returns…
Building a Premier Midstream Business Grow our footprint by developing assets that enhance our integrated midstream offering and connect producers to market Montney Basin Marcellus/Utica Basin Key Assets: Key Assets: Ridley…
Building a Premier Midstream Business Grow our footprint by developing assets that enhance our integrated midstream offering and connect producers to market Montney Basin Key Assets: Strategic Benefits: Ridley Island Propane…
Building a Premier Midstream Business Grow our footprint by developing assets that enhance our integrated midstream offering and connect producers to market Marcellus/Utica Basin Key Assets: Strategic Benefits: Central Penn…
Executing on our Strategy STRATEGY Leverage and enhance the strength of our asset footprint to provide customers with integrated solutions including global market access Grow footprint in Western Canadian Drive incremental returns…
Key Priorities Immediate Priorities 1 De-lever the balance sheet 3 Improve credit metrics 2 Create financial flexibility 4 Achieve a self-funded capital plan Long-Term Priorities 1 Drive operational excellence 2 Achieve superior…
2019 Outlook and Strategic Financial Review December 13, 2018
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