Altagas Ltd. · TSX:ALA
Altagas — Q1 2021 Earnings Presentation
15 slides from Altagas's earnings presentation, Apr 29, 2021
Slide 1: Q1/21 Earnings Summary
Q1/21 Earnings Summary April 29, 2021
Slide 2: Forward-Looking Information
Forward-Looking Information FORWARD-LOOKING INFORMATION This presentation 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",
Slide 3: Key Highlights: Strong Execution of Strategic Plan Delivers Robust First Quarter Results
Key Highlights: Strong Execution of Strategic Plan Delivers Robust First Quarter Results § Normalized EPS1 of $1.29 in Q1 2021 compared to $0.79 in Q1 2020, representing a 63% year-over- Q1 2021 Normalized EBITDA Growth year increase. ($ millions)2 § Normalized FFO1 per share of $2.08 in Q1 2021 com
Slide 4: Q1/21 Financial Results Summary
Q1 2021 Financial Results Summary Q1/21 Financial Results Summary $674MM $583MM $361MM $1.29 Normalized Normalized Normalized Normalized EBITDA1 FFO1 Net Income1 EPS1 1. Non-GAAP measure; see discussion in the advisories 4
Slide 5: Key Variances
AltaGas Key Variances
Slide 6: Consolidated: Q1/21 vs. Q1/20
Consolidated: Q1/21 vs. Q1/20 Core Businesses Demonstrate Strong Performance and Durability Normalized EBITDA1 ($ millions) ~23% Growth in Run-rate EBITDA2 80 -9 18 674 -8 104 594 -10 499 481 Stronger-than-Expected Q1 2020 Asset Utilities Corp/ Q1 2021 Profits in U.S. Q1 2021 One-Time Adjustments Q1
Slide 7: Disaggregating the Larger-than-expected U.S. Transportation and Storage Profits
Disaggregating the Larger-than-expected U.S. Transportation and Storage Profits Q1 Normalized EBITDA1 Growth ($ millions) Q1 Normalized EPS1 Growth ($/share) 63% 35% 35% 19% Q1/20 Q1/21 Q1/21 Q1/20 Q1/21 Q1/212 Outsized U.S. Estimated normalized Outsized U.S. Estimated normalized EPS, Normalized Nor
Slide 8: Utilities: Q1/21 vs. Q1/20
Utilities: Q1/21 vs. Q1/20 Strong Performance Underpinned by ARP Spending and Regulatory and Cost Discipline Normalized EBITDA1 ~11% Growth in Run-rate2 Utilities Assets, Ex-foreign Exchange ($ millions) 392 17 -21 1 -8 21 -8 369 371 353 Q1 2020 One-Time Asset Q1 2020 WGL SEMCO / Retail Q1 2021 FX Q
Slide 9: Midstream: Q1/21 vs. Q1/20
Midstream: Q1/21 vs. Q1/20 Midstream Demonstrates Strong Performance and Contributions from Petrogas Consolidation Normalized ~87% Increase, net of larger-than-expected U.S. EBITDA1 Transportation and Storage performance ($ millions) 80 -8 78 304 34 224 120 Other Midstream, Ex- Q1 2021, excluding St
Slide 10: Corporate/Other: Q1/21 vs. Q1/20
Corporate/Other: Q1/21 vs. Q1/20 Normalized EBITDA1 ($ millions) -2 10 8 -9 -1 Q1 2020 Q1 2021 Actual Asset Sales Q1 2020 Run-Rate2 Corporate Actual ▼ Power storage ▼ Higher G&A due to higher share price impacting LTI and DSU. 1. Non-GAAP financial measure; see discussion in the advisories; numbers
Slide 11: Q1/21 Normalized EBITDA Variance
Q1/21 Normalized EBITDA1 Variance ($ millions) Q1 2021 Normalized EBITDA1 Q1 2021 Q1 2020 Variance Q1 2021 vs Q1 2020 Normalized EBITDA1 Drivers + US Retail higher gas and electric margins + Higher returns on pension assets + ARP Spending and optimization + Colder weather Utilities 371 369 2 + Custo
Slide 12: 2021 Outlook
2021 Outlook 12
Slide 13: 2021 Outlook
2021 Outlook Strong Growth in Base Business Underpins 2021 Outlook The Company Continues to Execute on its Strategic Plan, Delivers Robust First Quarter and Increases 2021 Financial Guidance Ranges. 2021 Normalized EBITDA1 Guidance 2021 Normalized EPS1 Guidance ($ millions) (per share) $1,475 - $1,5
Slide 14: 2021 Disciplined Capital Allocation
2021 Disciplined Capital Allocation Strong Organic Growth Drives Robust Risk-adjusted Returns ~$910 million in top-quality projects anticipated to drive earnings growth Corporate/ Capital Allocation Criteria: Other 2% • Risk-adjusted returns exceed hurdle rates, which Identified Projects: Identified
Slide 15: Understanding Our Business
Understanding Our Business Who We Are: A leading North American energy What We Do: Operate a diversified, lower-risk, high-growth Our Core infrastructure company that connects NGLs and Utilities and Midstream business that is focused on delivering natural gas to domestic and global markets. resilien