Altagas Ltd. · TSX:ALA
Altagas — Investor Presentation (April 2020)
17 slides from Altagas's investor presentation, April 2020
Slide 1: AltaGas Investor Presentation April 2020
AltaGas Investor Presentation April 2020
Slide 2: Forward-Looking Information
Forward-Looking Information FORWARD-LOOKING INFORMATION This document contains forward-looking information (forward-looking statements). Words such as "may", "can", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "aim", "seek", "propose", "contemplate", "estimate", "fo
Slide 3: COVID-19
COVID-19 “ We are committed In response to the COVID-19 pandemic to doing everything we’re taking action to help our customers and communities, by: we can to support the communities Committing $1 million in emergency assistance to support our community partner and those on the “ frontlines during th
Slide 4: Highlights
Highlights ($CAD unless otherwise noted) 2020e Normalized Diversified low-risk, high growth 39% EBITDA4 Utilities and Midstream businesses 60% Midstream deliver stable and reliable results Corporate/Other Utilities 1% $1.20 - $1.30 2020e Normalized EPS2 Strong Financial Position Fitch: DBRS: S&P: $1
Slide 5: Rate Regulated Utilities Provide Stability and Growth
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: ~307,000 customers 30% 3 Maryland: ~493,000 customers r ~70% of Util
Slide 6: Premier Midstream Business Connecting Canadian Producers to Global Markets
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 access Export Terminal (RIPET) ▪ Leverages existing assets ▪ Fernda
Slide 7: Energy Export Strategy Underpinned by Strong Fundamentals
Energy Export Strategy Underpinned by Strong Fundamentals Lack of egress will continue to support ALA’s strategic export advantage Propane demand growth in Asia supported Long-term supply/demand imbalance supports by appetite for cleaner burning energy the need for Canadian exports Montney region ha
Slide 8: Counterparty Credit
Counterparty Credit ~80% of 2020e normalized EBITDA from regulated Utilities and investment grade counterparties Credit Quality Counterparty Credit Risk Mitigants: 60% regulated Utilties with ~1.7 million customers 14% Diversified Midstream customer base Utility & A 66% BBB Letters of credit, parent
Slide 9: Strong Commercial Underpinning
Strong Commercial Underpinning ~85% of 2020e normalized EBITDA from rate regulated utilities Top 5 producers and take or pay contracts 2020e Contract Type ~70% of 2020e normalized EBITDA underpinned by low-risk regulated and contracted U.S. assets 5% 5% 5% Rate Regulated Utilties Merchant EBITDA lar
Slide 10: Investment Grade Credit Rating
Investment Grade Credit Rating Business risk assessment underpinned by 60% regulated Utilities business 10.1x Commitment to investment grade credit rating Regained financial flexibility and improving Debt/EBITDA metrics Improved ~5.7x Debt / EBITDA Stronger access to debt markets Outlook: 5.5x or le
Slide 11: Financial Flexibility
Financial Flexibility Significant excess liquidity minimizes capital market funding risk beyond 2020 Debt Maturity Profile Funding & Liquidity ($ millions) ($ millions) 1,200 6,000 1,000 5,000 800 4,000 ~$780 million ~$4,050 ~$3.6 billion Available Refinanced year-to-date 3,000 Excess Liquidity Liqu
Slide 12: Strong Dividend Coverage
Strong Dividend Coverage Prudent dividend payout largely underpinned by stable and predictable Utilities earnings 2020 Payout Ratio Comparison1 180% 158% 160% 143% 140% 127% 120% 111% 100% 100% 83% 87% 84% 84% 80% 73% 78% 60% 40% Midstream Peers: Group Average 120% Utility Peers: Group Average 82% 2
Slide 13: Appendix - 2020 Outlook
Appendix - 2020 Outlook 13
Slide 14: 2020: Outlook Unchanged
2020: Outlook Unchanged Strong growth in base business underpins 2020 outlook 2020 Normalized EBITDA Guidance2 2020 Normalized EPS Guidance2 ($ millions) (per share) 1600 $1.20 - $1.30 1200 800 400 0 2020e 2020e Utilities Midstream Power 1 Non-GAAP financial measure; see discussion in the advisories
Slide 15: 2020 Normalized EBITDA Drivers
2020 Normalized EBITDA Drivers Normalized 2020E EBITDA1 Growth Drivers 2020 Normalized ▲ Rate base growth through disciplined EBITDA Guidance1 investment in aging infrastructure ($ millions) ▲ Achieving higher returns on equity Utilities ▲ Cost-reduction initiatives and $1,275 - $1,325 decreasing le
Slide 16: 2020 Disciplined Capital Allocation
2020 Disciplined Capital Allocation Strong organic growth drives robust risk adjusted returns ~$9001 million in top-quality projects drive earnings growth Power Corporate Capital Allocation Criteria: 2% 2% Identified Projects: Identified Projects: ▪ MVP – Southgate ▪ System betterment Expansion acro
Slide 17: 2020: Self-Funded Model
2020: Self-Funded Model Growth in cash flow eliminates need for common equity and provides funding flexibility 2020 capital plan funded internally and focused on projects with near-term returns 2020e Sources and Uses1 ($ millions) $1,800 ~$1,600 ~$1,600 $1,600 Suspension of the DRIP program Leverage