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Scotia Energy Infrastructure Conference – Altagas Limited

Altagas Limited · Nov 20, 2019 · 35 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Scotia Energy Infrastructure Conference – Altagas Limited – slide 1
    Scotiabank Energy Infrastructure Conference November 20 - 21, 2019
  2. Scotia Energy Infrastructure Conference – Altagas Limited – slide 2
    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…
  3. Scotia Energy Infrastructure Conference – Altagas Limited – slide 3
    Highlights (CAD unless otherwise noted) 5.4B 1.2-1.3B 2.2B 21B Market Cap1 2019e Normalized Asset Sales Total Assets EBITDA2 2.3 Bcf/d 34,500 Bbl/d 70,000 Bbl/d Gas Processing3 Fractionation 4 Export5 US3.7B 5 1.6…
  4. Scotia Energy Infrastructure Conference – Altagas Limited – slide 4
    Our Business Strategies are Straightforward Low-Risk, High-Growth Utility and Midstream Company Low-Risk Regulated Utility Opportunity-Rich Integrated Midstream Utilities Global Distribution Export Leveraging our Core…
  5. Scotia Energy Infrastructure Conference – Altagas Limited – slide 5
    Near-Term Operational Priorities Priorities Actions First cargo out of Complete construction and initiate operational phase RIPET early Q2 2019 Introduce feedstock to fill the LPG tank First cargo in May 2019 Volumes delivered to RIPET…
  6. Scotia Energy Infrastructure Conference – Altagas Limited – slide 6
    Near-Term Financial Priorities Priorities Actions Execute 1.5 2.0 billion of Executed on 2.2 billion in asset sales as at September 30, 20191: non-core asset sales - US280 million Stonewall asset sale - US735 million Distributed…
  7. Scotia Energy Infrastructure Conference – Altagas Limited – slide 7
    Announced 2.2 Billion of Non-Core Asset Sales Announced or completed 2.2 billion in asset sales, exceeding the top end of 1.5 - 2.0 billion asset sales targeted for 2019 Central Penn Pipeline Distributed Generation Assets Stonewall…
  8. Scotia Energy Infrastructure Conference – Altagas Limited – slide 8
    Launching our Inaugural ESG Report To earn the right to grow, we must continue to integrate ESG considerations into the execution of our strategy The report outlines our ongoing efforts to improve our operational performance, manage…
  9. Scotia Energy Infrastructure Conference – Altagas Limited – slide 9
    Midstream Update 10
  10. Scotia Energy Infrastructure Conference – Altagas Limited – slide 10
    Our Midstream Strategy is Straightforward Maximize utilization of existing assets and pursue capital efficient high-return expansions Continue to build upon our export competency Midstream Invest Diversify and grow our customer base…
  11. Scotia Energy Infrastructure Conference – Altagas Limited – slide 11
    Premier Midstream Business Connecting Canadian Producers to Global Markets Leverage RIPET and our integrated value chain to attract volumes Montney Basin Key Assets: Strategic Benefits: Ridley Island Propane Global demand market…
  12. Scotia Energy Infrastructure Conference – Altagas Limited – slide 12
    Integrated Service Offering with Access to Global Markets Increasing returns along the integrated value chain Gas Processing & 9X 10X Gathering Field Fractionation, Liquids Handling Storage and Rail CUMULATIVE CAPEX PER Loading…
  13. Scotia Energy Infrastructure Conference – Altagas Limited – slide 13
    Abundant North American Natural Gas Supply Excess propane supports development of incremental export capacity Abundant supply of North American natural gas Propane supply growth continues to outpace demand U.S. natural gas production…
  14. Scotia Energy Infrastructure Conference – Altagas Limited – slide 14
    Supply/Demand Imbalance Supports Export Capacity Growth Opportunity to grow Canadas West Coast LPG export capacity Increasing demand in Asia Supply/demand imbalance supports strong spreads Natural gas & propane are low cost sources of…
  15. Scotia Energy Infrastructure Conference – Altagas Limited – slide 15
    RIPET Netback Advantage RIPET provides enhanced netbacks to producers at current propane prices1 the RIPET advantage is 80% increase in realized price Alberta3 RIPET Advantage (US/bbl) US9.29/bbl 2019 FWD AFEI1 35.39 Transport &…
  16. Scotia Energy Infrastructure Conference – Altagas Limited – slide 16
    RIPET Operational Overview Strong performance positioned for growth RIPET Highlights: 40,000 Bbl/d propane receipt volumes Q4 2019e Hedged Volumes 3 million barrels or 6 ships exported Third Quarter 37 million in EBITDA…
  17. Scotia Energy Infrastructure Conference – Altagas Limited – slide 17
    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…
  18. Scotia Energy Infrastructure Conference – Altagas Limited – slide 18
    Utilities Update 19
  19. Scotia Energy Infrastructure Conference – Altagas Limited – slide 19
    Utilities Strategy - Drive Operational Excellence Priorities Maintain safe and reliable infrastructure Enhance overall returns via complementary businesses and cost reduction initiatives Utilities Distribution Attract and retain…
  20. Scotia Energy Infrastructure Conference – Altagas Limited – slide 20
    Our Utility Business Operating Model Safe and reliable, high-growth competitive strategy Opportunities Improve business processes and drive down leak remediation costs, reinvesting savings into improving the customer experience…
  21. Scotia Energy Infrastructure Conference – Altagas Limited – slide 21
    WGL ROE Strategy Path to earning our allowed returns at WGL Strategy in place with a clear line of sight to allowed returns in 2021 Key initiatives to achieving allowed returns: Return On Equity & Expected Timeline 1. Capital…
  22. Scotia Energy Infrastructure Conference – Altagas Limited – slide 22
    Rate Case Update Focused on Timely Recovery of Capital ROE Requested & Equity Thickness Rate Case Revenue Requested Notes Approved Requested & Approved Rebuttal testimony filed October 18th Filed May 31, 2019, The hearing is…
  23. Scotia Energy Infrastructure Conference – Altagas Limited – slide 23
    Financial Update 24
  24. Scotia Energy Infrastructure Conference – Altagas Limited – slide 24
    Capital Allocation Focused on Near-Term Returns 1.3 - 1.36 Billion Top-Quality Projects Identified Projects: System betterment across all Utilities 2% Accelerated pipe Mountain replacement Valley 9% programs in Pipeline…
  25. Scotia Energy Infrastructure Conference – Altagas Limited – slide 25
    Robust Asset Sales Provide Flexibility in 2019 Funding Plan 2019 Sources and Uses1 Secured Capital Program ( billions) (Cmillions unless otherwise specified) 4.6 4.6 Expected Target Utility Capital Projects Capex2,3 In-Service1…
  26. Scotia Energy Infrastructure Conference – Altagas Limited – slide 26
    De-leveraging Program On Track 2.4 billion reduction in net debt1 year-to-date Net Debt1 ( billions) 3 billion in debt 2019 Plan Supports repayment 2.4 billion reduction to net debt1 to-date 10.1 Lower debt and stronger…
  27. Scotia Energy Infrastructure Conference – Altagas Limited – slide 27
    2019 Outlook Unchanged Significant Opportunity for Rebased Business in 2020 2019 Normalized EBITDA1 2019 Outlook 2020 Drivers Guidance ( millions) ( millions) 1600 2019E Rate base and customer growth 1,200 - 1,300 Normalized…
  28. Scotia Energy Infrastructure Conference – Altagas Limited – slide 28
    2020 Outlook Drivers Significant Opportunity for Rebased Business in 2020 2020: Unlocking the growth potential of our assets Achievement of critical near-term priorities allows management to return its focus to growing the core…
  29. Scotia Energy Infrastructure Conference – Altagas Limited – slide 29
    Appendix 30
  30. Scotia Energy Infrastructure Conference – Altagas Limited – slide 30
    Q3 Financial Results Summary Strong Performance from Core Businesses Q3 2019 Normalized EBITDA1 of 178M Q3 2019 Normalized Net Loss1 of 58M Exceeded target with 2.2B in Asset Sales announced or completed in 2019 YTD Reduced…
  31. Scotia Energy Infrastructure Conference – Altagas Limited – slide 31
    Q3 Normalized EBITDA1 Walk Down 2019 Q3 Actuals vs. 2018 Q3 Actuals Normalized EBITDA1 ( millions) (12) (30) (93) +1 +16 +70 226 178 Q3 2018 Q3 2019 Midstream Power Utilities Corporate VA Rate Case Asset Sales Actual Actual…
  32. Scotia Energy Infrastructure Conference – Altagas Limited – slide 32
    Q3 2019 Normalized EBITDA1 Variance Strong Performance in Midstream Offset by One-Time Adjustment at WGL ( millions) Q3 2019 Normalized EBITDA1 Q3 2019 Q3 2018 Variance Q3 2019 vs. Q3 2018 Normalized EBITDA1 Drivers + WGL acquisition…
  33. Scotia Energy Infrastructure Conference – Altagas Limited – slide 33
    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…
  34. Scotia Energy Infrastructure Conference – Altagas Limited – slide 34
    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,…
  35. Scotia Energy Infrastructure Conference – Altagas Limited – slide 35
    Accelerated Replacement Program Utility Location Program Main Replacement Program (MRP) expires in 2020. Rate case filed in May seeks approval for MRP extension for 2021-2025 with total spending to be US60M, and introduction of a new…

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