Randy Crawford Focus on Execution Randy Crawford President and Chief Executive Officer 3
Our Strategy We leverage the strength of our assets and expertise along the energy value chain to connect customers with premier energy solutions from the wellsites of upstream producers to the doorsteps of homes and businesses, to…
Near-Term Financial Priorities Priorities Progress Actions Execute remaining Additional 1.5 - 2.0 billion asset sale program progressing as planned 1.5 2.0 billion of US 275.3 million Stonewall sale non-core asset sales De-lever the…
Near-Term Operational Priorities Priorities Progress Actions First cargo out of Construction complete and operational phase initiated RIPET early Q2 2019 Introducing feedstock to fill the LPG tank First Cargo in Q2 2019 Capitalize on…
Asset Sales Stonewall Agreement to sell 30% minority interest in Stonewall Gas Gathering System Total gross proceeds of approximately US 275.3 million Counterparty DTE Energy owns 55% and operates Stonewall Valuation achieved…
Midstream Segment 8
RIPET: Canadas First West Coast Propane Export Terminal Improving western Canadian producers netbacks by providing access to premium Asian markets Attracts additional volumes through AltaGas midstream value chain, maximizing…
RIPET Netback Advantage RIPET provides enhanced netbacks to producers At current propane prices1 RIPET advantage is estimated at US5.25/bbl Alberta3 RIPET Advantage (US/bbl) US 16.60/bbl 2019 FWD AFEI1 39.45 Transport &…
Initial Investment in Montney Midstream Assets Sets the Stage for Significant Organic EBITDA Growth Opportunities Montney Operating Capacity Canadian Midstream Normalized EBITDA1 800 24,000 ( millions) BASE GAS PROCESSING TOWNSEND GAS…
Utilities Segment 12
2019: Drive Operational Excellence at the Utilities Focus on accelerated replacement capital will support rate base growth and drive earnings growth 2019 Focus Prudently allocate capital based on infrastructure needs and returns…
Maryland Rate Case Focused on Timely Recovery of Capital Details Addresses rate relief necessary to recover costs of providing safe, reliable natural gas service; continue delivering improved service to customers and earn the…
Conclusion Q1 2019: Solid quarter reflects strength of the transformed business mix Q1 results provide a good foundation and we remain on track to achieve 2019 guidance Strengthening the balance sheet with 1.7 reduction in net…
Tim Watson Q1 2019 Results and Capital Funding Update Tim Watson Executive Vice President and Chief Financial Officer 16
Q1 Financial Results Summary 466M 376M 202M 0.73 1.7B Normalized Normalized Normalized Normalized Reduction in EBITDA1 FFO1 Net Income1 Net Income Per Net Debt1 Share1 1 Non-GAAP measure; see discussion in the advisories 17
Contributions from WGL Continue to Drive Results 2019 Q1 Actuals vs. 2018 Q1 Actuals Normalized EBITDA1 ( millions) +14 +2 +4 +35 0 -8 -58 Rate base and Central Penn Additional Higher utility Aitken Creek Stronger ACI IPO customer…
Q1 2019 Normalized EBITDA Variance ( millions) Q1 2019 Normalized EBITDA1 Q1 2019 Q1 2018 Variance Q1 2019 vs Q1 2018 Normalized EBITDA Drivers + WGL acquisition (+254MM) + FX stronger US dollar + Utility rates and rate base growth +…
2019 Balanced Funding Plan Priorities Regain financial strength and flexibility to efficiently fund growth Financial Optimize cost Maintain capital Recapture flexibility + of capital + discipline = share value Accelerate…
Capital Allocation Focused on Near-Term Returns 1.3 Billion Top-Quality Projects Identified Projects: System betterment across all Utilities 2% Accelerated pipe Mountain replacement Valley 9% programs in Pipeline Michigan,…
Funding Plan Progressing as Planned with Agreement to Sell Stonewall Interest 2019 Sources and Uses ( millions) 4,900 4,900 Hybrids & Preferreds1 Balanced funding plan eliminates the need 660 for near-term common equity and…
De-lever the Balance Sheet Net Debt1 ( billions) 3 billion in debt 2019 Plan Supports repayment Lower debt and stronger balance sheet 10.1 Improving Debt/EBITDA Retained cash flow net of dividends and DRIP metrics to 5.5x at…
Supportive Regulatory Environment for Utilities 2018 YE Allowed ROE Average Utility Rate Base and Equity Regulatory Update Customers (US) Thickness Distribution rates approved under cost of service model. Projected test year used…
Supportive Regulatory Environment for Utilities 2018 YE Average Allowed ROE and Utility Rate Base Regulatory Update Customers Equity Thickness (US) Distribution rates approved under cost of service model. Rate case filed in July 31,…
Accelerated Replacement Program Utility Location Program Mains Replacement Program expires in 2020. Renewal expected to be filed in 2019. Michigan Expect to incur approximately US10 million in 2019. Authorized to invest US500…
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