Altagas Ltd. · TSX:ALA
Altagas — Merger or Acquisition (October 2020)
14 slides from Altagas's merger presentation, Oct 16, 2020
Slide 1: A Time to Grow, A Time to Optimize: Increasing Our Ownership Position In Petrogas
A Time to Grow, A Time to Optimize: Increasing Our Ownership Position In Petrogas October 16, 2020
Slide 2: Forward-Looking Information
Forward-Looking Information This presentation contains forward-looking information (forward-looking statements). Words such as: “will”, “plans”, “estimated”, “expected”, “later”, “anticipated”, “opportunity”, “growing, “positions”, “should”, “potential”, “approximately”, “increase”, “forward”, “futu
Slide 3: Transaction Summary
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 providing access to premium global LPG export markets & reducing carbon inten
Slide 4: Petrogas: A High-level Overview
Petrogas: A High-level Overview ▪ Petrogas is one of the largest privately held midstream and logistics companies in North America with operations dating back to 1986. The company operates a large scale fully integrated natural gas liquids (NGLs) and crude oil platform that provides sourcing, storag
Slide 5: Strategic Rationale
Strategic Rationale Consolidating and Integrating Ownership Position for Improved AltaGas and Industry Outcomes Supports AltaGas’ ▪ Consistent with our global export strategy and Midstream operations with multiple interconnects. Vision and Long-term ▪ Aligns with our corporate focus of building a di
Slide 6: Expands AltaGas Footprint; Focused On Optimization
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 across the energy ▪ Five rail and pipeline connected terminals,
Slide 7: The Ferndale Advantage
The Ferndale Advantage Connecting North American Producers to Premium LPG Prices in Asia The Ferndale Advantage results in significant increases in producers’ realized prices and tailwinds for the broader energy industry. Alberta1 AFEI1 Propane: US$14.20/Bbl Propane US$35.70/bbl Butane: US$14.00/Bbl
Slide 8: Petrogas: A Look at How the Assets Fit Into AltaGas' Value Chain
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 Extraction & Fractionation 4 Transportation, Storage & 5 RIPET Ex
Slide 9: Historical Background
Historical Background Increasing Ownership in Long-term Part of the AltaGas Platform AltaGas forms AltaGas acquires Petrogas increases Petrogas acquires strategic partnership 33.3% of Petrogas Ferndale throughput by IXL Propane, Inc. ▪ The transaction increases our with Idemitsu through AIJV 25% to
Slide 10: Financial Highlights
Financial Highlights Compelling Financial Accretion with Strong Long-term Free Cash Flow ▪ On a run-rate basis, we anticipate that this transaction will be ~10% accretive to earnings per share, ~15% accretive to cash flow per share, while improving AltaGas’ pro-forma run-rate leverage metrics, despi
Slide 11: Financial Highlights
Financial Highlights Compelling Financial Accretion with Strong Long-term Free Cash Flow ▪ Assuming reasonable LPG exports from Ferndale in 2021, the current forward curves and other logical assumptions, coupled with Petrogas’ fixed fee-based contracts, Petrogas is expected to earn an estimated $185
Slide 12: AltaGas Midstream: Who We Are Post the Transaction
AltaGas Midstream: Who We Are Post the Transaction Midstream Integrated Midstream Business – from wellhead to global markets NGL Extraction & Fractionation Gas Gathering & Processing 64,000 Bbl/d2 6 Facilities: North Pine, Harmattan, We’re a high-quality operator that 2.25Bcf/d1 Processing EEEP, JEE
Slide 13: The Road Ahead will be Paved with Integration and Optimization
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 company’s integrated platform, offering material value-added benefits for AltaGas’ producer supplie
Slide 14: AltaGas: Who We Are
AltaGas: Who We Are 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 that is focused on delivering resilient and durable Values Work Safely, Act with Make In