Second Quarter 2020 Results Presentation July 30, 2020
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…
COVID-19 We are committed to doing everything we can to support the communities In response to the COVID-19 pandemic were taking action to help our customers and communities, by: Committing 1 million in emergency assistance…
Financial Highlights (CAD unless otherwise noted) 2020e Normalized Diversified low-risk, high growth 39% EBITDA2,4 Utilities and Midstream businesses 60% Midstream deliver stable and reliable results Corporate/Other Utilities…
Q2 2020 Financial Results 6
Q2 2020 Financial Results Summary 206M 141M 17M 0.06 Normalized Normalized Normalized Normalized EBITDA1 FFO1 Net Income1 EPS1 1. Non-GAAP measure; see discussion in the advisories 7
2020 Q2 Actuals vs. 2019 Q2 Actuals Strong Growth in Core Businesses Normalized EBITDA1 13% Growth2 in Core Business Assets ( millions) 29M lost due 211 to 2019 asset sales 206 +6 +23 182 (5) Q2 2019 Actual Asset Sales Q2…
Rate Regulated Utilities Provide Stability and Growth 60% of 2020e normalized EBITDA from Utilities Segment1 2020e Utility Revenues 1 Alaska: 147,000 customers 1.7 million customers in stable and growing jurisdictions 2 Michigan:…
Premier Midstream Business Leveraging RIPETs Structural Advantage to Markets in Asia Leverage RIPET and access to premium global pricing to attract volumes 60% from investment grade customers 70% from take-or-pay contracts and…
Counterparty Credit 80% of 2020e normalized EBITDA1 from regulated Utilities and investment grade counterparties Credit Quality Counterparty Credit Risk Mitigants: 60% Utilities with 1.7 million customers Diversified Midstream…
Strong Commercial Underpinning 85% of 2020e normalized EBITDA1 from rate Top 5 producers regulated 2020e utilities and take or pay contracts Contract Type 70% of 2020e normalized EBITDA1 underpinned by 5% low-risk regulated and…
Investment Grade Credit Rating Business risk assessment underpinned by 60% Utilities business 10.1x Commitment to investment grade credit rating Regained financial flexibility and improving Debt/EBITDA metrics Improved 5.7x Debt…
COVID-19 Regulatory Update State Approach Washington, D.C. Commission issued an Order on April 15, 2020 to establish regulatory asset to track COVID-19 related costs incurred since March 11, 2020 Maryland Commission issued an Order on…
Utilities Strategy - Drive Operational Excellence Priorities Maintain safe and reliable infrastructure Enhance overall returns via complementary Utilities businesses and cost-reduction initiatives Distribution Attract and retain…
Our Utilities 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…
Utilities 2020 Growth Drivers Grow earnings through rate base investment Investment in aging infrastructure and attracting new customers is expected to drive strong rate base growth of 8 - 10% annually through 2024 Rate Base Growth…
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: Anticipated Return On Equity 1. Capital Discipline: &…
Utilities Segment Capital Spend Disciplined approach to capital focused on strategic projects and Accelerated Replacement Programs Designed to earn immediate returns and increase capital efficiency through approximately 25% growth in…
Summary of Recent Rate Case Filings Focused on timely recovery of capital Most Recent Equity Revenue ROE Rate Case Filed Thickness SEMCO (Michigan) Filed May 31, 2019 Received: US19.9 M Received: 9.87% Received: 54%1 WGL…
Midstream 25
Our Midstream Strategy is Straightforward Maximize utilization of existing assets and pursue capital efficient high-return expansions Invest Continue to build upon our export competency Midstream Diversify and grow our customer base…
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…
Energy Export Strategy Underpinned by Strong Fundamentals Lack of economic egress will continue to support ALAs strategic export advantage Propane demand growth in Asia supported Long-term supply/demand imbalance by appetite for…
RIPET 2020 Operational Overview Strong performance; positioned for growth Increased utilization - strong interest from producers supports volumes ramping up to exit 2020 at 50,000 bbl/d RIPET 2020e 33% of total 2020 volumes under…
Processing 2020 Operational Overview Increased utilization and expansions drive growth Operational Capacity Processing (Fractionation and NEBC Processing Facilities) 800 70,000 Projects brought online in 2020 add significant 700…
2020 Outlook 31
2020: Outlook Unchanged Strong growth in base business underpins 2020 outlook 2020 Normalized EBITDA1 Guidance2 2020 Normalized EPS1 Guidance2 ( millions) (per share) 1,600 1.20 - 1.30 1,200 800 400 0 2020e 2020e…
2020 Normalized EBITDA1 Drivers Normalized 2020E EBITDA1 Growth Drivers 2020 Normalized Rate base growth through disciplined EBITDA1 Guidance2 investment in aging infrastructure ( millions) Achieving higher returns on equity…
2020 Disciplined Capital Allocation Strong organic growth drives robust risk adjusted returns 9001 million in top-quality projects drive earnings growth Corporate/ Other Capital Allocation Criteria: 4% Identified Projects:…
2020: Self-Funded Model Growth in cash flow eliminates need for common equity and provides funding flexibility 2020 capital plan funded internally and focused on projects with near-term returns 2020e Sources and Uses1 ( millions)…
Appendix 36
Supportive Regulatory Environment for Utilities 2019 YE Average Allowed ROE Utility Rate Base Customers and Equity Regulatory Update (US) Thickness Distribution rates approved under cost of service model. Projected test year used for…
Supportive Regulatory Environment for Utilities 2019 YE Average Allowed ROE Utility Rate Base Customers and Equity Regulatory Update (US) Thickness Distribution rates approved under cost of service model. Rate case filed in July 31,…
Accelerated Replacement Program Utility Location Program Main Replacement Program (MRP) expires in 2020. 2019 rate case settlement provides for a renewed Michigan MRP for 2021-2025 with total spending of US60 million and the…
Loading...
