2021 Strategic Plan and Financial Guidance December 10, 2020
2021 Financial Guidance Highlights (CAD unless otherwise noted) Our corporate priorities are on delivering, de-levering, de-risking, investing and executing across all business segments. 4% 4% 1.45 - 1.55 1.45-1.55 1.4 -1.5B…
2020 Key Accomplishments Strong execution and focus positions AltaGas for durable long-term value creation Operational Priorities Financial Priorities Utilities Expect to deliver 900 million self-funded capital program Expected to…
Building a Track Record of Delivering on our Commitments 2019: A Transformational Year 2020: Strong Execution and Focus 2021+ Long-term Vision and Strategy Refocused AltaGas on core Utilities and Resilient and durable results expected…
Strategic Plan and 2021 Outlook 6
Executive Summary of Strategic Plan Despite market turmoil, we continue to believe that we have a clear plan for an opaque world. High-level While we recalibrated some of our near-term assumptions to reflect shifts in the macro…
Strong Growth in Base Business Underpins 2021 Outlook 12% expected growth in normalized EBITDA and 20% expected increase in normalized EPS using mid- point numbers is driven by continued growth in core Utilities and Midstream…
2021 Guidance Management Assumptions Utilities Dividends increase by 4% to 1.00/share Normalized consolidated effective tax rate 23% Corporate Corporate CAD/USD exchange rate 1.32x Non-core asset sales considered on an…
2021 Operational Review Growth in core business more than offsets lost EBITDA from asset Midstream: Leveraging our core export strategy sales, lower frac spreads and other one-time tailwinds that were Optimize and increase utilization…
2021 Normalized EBITDA1 Drivers 2021 Normalized EBITDA1 Growth Drivers 2021 Normalized EBITDA1 Guidance Rate base growth through disciplined capital allocation 1.4-1.5 billion Achieving higher returns on equity through operational…
2021 Disciplined Capital Allocation Strong organic growth drives robust risk-adjusted returns 910 million in top-quality projects anticipated to drive earnings growth Includes: Corp/Other Capital Allocation Criteria: Identified…
WGL ROE Strategy Path to earning our allowed returns at WGL Strategy in place with a clear line of sight to reach allowed returns during 2021 Key initiatives to achieving allowed returns: 1. Capital Discipline: Anticipated Return On…
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 20% growth in…
Illustrative EBITDA Seasonality Utilities seasonality driving quarterly EBITDA profile Consolidated Normalized Midstream Normalized Utilities Normalized EBITDA1 By Quarter EBITDA1 By Quarter EBITDA1 By Quarter 47% 39% 29% 26%…
Appendix A: Additional Corporate Information 16
AltaGas: Who We Are Our A Leading North American infrastructure company that connects NGLs and natural gas to domestic Vision and global markets. Our To improve quality of life by safely and reliably connecting customers to…
AltaGas: Who We Are, Including Petrogas What We Do: We operate a diversified, low-risk, Who We Are: A leading North American energy high-growth Utilities and Midstream business Our Core infrastructure company that connects NGLs and…
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 Leveraging RIPETs Structural Advantage to Markets in Asia Leverage RIPET and access to premium global pricing to attract volumes 70% from investment grade customers 65% from take-or-pay contracts and…
Counterparty Credit 87% of 2021e normalized EBITDA1 from Utilities and investment grade counterparties Credit Quality Counterparty Credit Risk Mitigants: 57% Utilities with 1.7 million customers Utility & A Diversified Midstream…
Contractedness 79% of 2021e normalized EBITDA1 from rate Top 5 producers regulated 2020e utilities and take or pay contracts Contract Type 86% of 2021e normalized EBITDA1 underpinned by 6% Utilities low-risk regulated and…
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…
Rate Regulated Utilities Provide Stability and Growth 57% of 2021e normalized EBITDA1 from Utilities Segment 2021e Utility Revenues 1 Alaska: 147,000 customers 1.7 million customers in stable and growing jurisdictions 2 Michigan:…
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: US19.9MM Received: 9.87% Received: 54%1 WGL…
Supportive Regulatory Environment for Utilities 2019 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 2019 YE Allowed ROE Average Utility Rate Base and Equity Regulatory Update Customers (US) Thickness Distribution rates approved under cost of service model. Rate case filed in July 31,…
Accelerated Replacement Program Utility Location Program 2019 rate case settlement provides for a renewed Mains Replacement Program for 2021-2025 with total Michigan spending 60 million and the introduction of a new Infrastructure…
Appendix B: Petrogas Acquisition Information 29
Petrogas Transaction Summary AltaGas advances global export strategy through increased ownership in Petrogas; agreement concludes AIJV Petrogas put process announced January 2, 2020. Transaction re-iterates AltaGas commitment to…
Strategic Rationale Consolidating and integrating ownership position for improved AltaGas and industry outcomes Consistent with our global export strategy and Midstream operations with multiple interconnects. Supports AltaGas Vision and…
Expands AltaGas Footprint; Focused On Optimization Multiple interconnects with AltaGas Terminals Positions AltaGas to leverage its existing footprint; Positions AltaGas with industry-leading footprint in NEBC increased touch points…
The RIPET and Ferndale Advantages Connecting North American producers to premium LPG prices in Asia The RIPET and Ferndale Advantages results in significant increases in producers realized prices and tailwinds for the broader energy…
Petrogas: A Look at How the Assets Fit Into AltaGas Value Chain Integrated Midstream Business Unparalleled access from wellhead to global markets; including Asia, North America and WCSB 1 Wellhead 2 Gas Gathering & Processing 3 NGL…
Midstream: Who We Are Post Petrogas Transaction Integrated Midstream Business from wellhead to global markets NGL Extraction & Fractionation Gas Gathering & Processing 64,000 Bbls/d2 6 Facilities: North Pine, Harmattan, Were a…
The Road Ahead will be Paved with Integration and Optimization Enhancing AltaGas value chain with Petrogas midstream infrastructure, logistics and services offerings will extend and strengthen the companys integrated platform, offering…
Loading...
