Altagas Ltd. · TSX:ALA
Altagas — Q3 2023 Earnings Presentation
18 slides from Altagas's earnings presentation, Nov 3, 2023
Slide 1: Q3 2023 Financial Results and Corporate Update
Q3 2023 Financial Results and Corporate Update November 3, 2023
Slide 2: Forward-Looking Information
Forward-Looking Information This presentation contains forward-looking information (forward-looking statements). Words such as "may", "can", "would", "could", "should", "likely", "will", "intend", "contemplate", "plan", "anticipate", "believe", "aim", "seek", "future", "commit", "propose", "contempl
Slide 3: Agenda
Agenda • Q3 2023 Results • Operational Updates • Commercial De-risking • Capital Allocation • Investment Proposition • 2023 Guidance and Investor Day 3
Slide 4: Q3 2023 Operational and Financial Highlights
Q3 2023 Operational and Financial Highlights Strong Q3 Financial Results Capital Allocation ▪ Normalized EPS1,3 of $0.10, normalized EBITDA1,2 of ▪ Operate with equity self-funding model for $252MM and normalized FFO1,4 per Share of $0.50 organic growth. in Q3 2023. ▪ Complete de-leveraging journey
Slide 5: Midstream Update
Midstream Update Strong Q3/23 Midstream results supported by record global exports. Global LPG Demand, By Region (1990-2050) Q3 Operating Performance Global Exports of New Record of Frac & Liquids Handling G&P 18.00 North America Latin America +7% 118,213 Bbls/d +12% -4% 16.00 Europe FSU Y/Y in Q3 Y
Slide 6: Utilities Update
Utilities Update Q3/23 Utilities results in line with expectations with strong long-term fundamentals for gas utilities. Percent of Household Energy Demand1 Key Regulatory Updates Virginia ▪ August 29, 2023, Virginia rate case approved ~US$41MM of incremental base 100% rates + ~US$32MM of SAVE surch
Slide 7: Commercial De-risking
Commercial De-risking ▪ Medium-term Global Exports tolling target of 60%+ ▪ Active and systematic hedging for residual commodity exposure ▪ Focus on take-or-pay and fee-for-service contracting ▪ Customer and resource play diversification ▪ Long-term cost contracting (5-year CN agreement, VLGC time c
Slide 8: Capital Allocation
Capital Allocation Prudent Capital Allocation with Investment Capacity Growing in Years Ahead Balance ▪ Net Debt/normalized EBITDA target Annual Investment Capacity of 4.5x Sheet Optional ▪ Sale of MVP moves us closer to Capacity long-term target of 4.5x. Capital ▪ Annual normalized EBITDA growth in
Slide 9: AltaGas Value Proposition
AltaGas Value Proposition Diversified, Low-Risk Business Model with Visible Growth and Disciplined Capital Allocation Diversified Energy Infrastructure Visible, Industry-Leading Disciplined Capital 1 Platform Providing Stable and 2 Growth 3 Allocation Growing Earnings / Cash Flows Robust Demand fund
Slide 10: 2023 Guidance
2023 Guidance Well positioned to achieve our 2023 guidance figures of Normalized EPS of $1.85 - $2.05 and Normalized EBITDA1,2 Guidance Normalized EBITDA of $1.5 billion to $1.6 billion, ($ millions) and currently expect to be in upper half of range. $1,537 $1,500 - $1,600 Utilities: Utilities: ~61%
Slide 11: 2023 Investor Day
AltaGas 2023 Investor Day /Z=:| Tuesday, December 5, 2023 ary Hosted in-person from Toronto, Canada 7:00 am - 10:00 am MT (Calgary) LOCATION 9:00 am — 12:00 pm ET (Toronto/Montreal/New York) 14:00 — 17:00 GMT (London) Virtual option will be included for those unable to attend in person. The] Managem
Slide 12: Appendix: Q3 2023 Financial Results
Appendix: Q3 2023 Financial Results
Slide 13: Consolidated: Q2/23 Q3/23 vs. Q2/22 Q3/22
Consolidated: Q2/23 Q3/23 vs. Q2/22 Q3/22 Normalized EBITDA1,2 77 -11 -14 ($ millions) 252 233 -33 200 Q3 2022 Asset Sales & Corp/ Q3 2023 Actual One-Time Items Midstream Utilities Other Actual ▼ Sale of Alaska Utilities ▲ Higher Global Exports ▼ Higher O&M ▼ Higher incentive ▼ Larger-than-normal As
Slide 14: Consolidated: Q3/23 vs. Q3/22
Consolidated: Q3/23 vs. Q3/22 Income (Loss) Before Income Taxes1 ($ millions) -10 48 -70 -51 -19 Q3 2022 Corp/ Q3 2023 Actual Midstream Utilities Other Actual ▼ Higher unrealized losses on hedging ▼ Primarily same factors impacting ▼ Primarily same factors impacting ▲ Primarily same factors impactin
Slide 15: Utilities: Q3/23 vs. Q3/22
Utilities: Q3/23 vs. Q3/22 Normalized EBITDA1,2 ($ millions) 115 -33 -11 82 -9 - Unchanged -2 71 Q3 2022 Asset Sales & WGL SEMCO Retail Q3 2023 Actual One-Time Items Actual ▼ Sale of Alaska Utilities ▼ Higher O&M ▼ Warmer weather ▼ Large Asset Optimization ▲ ARP spending ▼ Higher G&A in Q3/22 ▲ Late
Slide 16: Midstream: Q3/23 vs. Q3/22
Midstream: Q3/23 vs. Q3/22 Normalized EBITDA1,2 ($ millions) 77 185 -18 -11 108 Q3 2023 Q3 2022Actual Midstream Actual ▲ Higher Global Exports volumes and margins ▲ MVP AFUDC ▲ Higher NGL and crude marketing ▼ One-time contract tailwinds in Q3/22 ▼ Lower Frac Spreads Notes: 1) Non-GAAP financial mea
Slide 17: Corporate/Other: Q3/23 vs. Q3/22
Corporate/Other: Q3/23 vs. Q3/22 Normalized EBITDA1,2 ($ millions) 10 -14 -4 Q3 2022 Q3 2023 Corporate Actual Actual ▼ Higher incentive compensation expense ▼ Lower Blythe power generation, outage ▼ Higher salaries, wages, IT expenses Notes: 1) Non-GAAP financial measure; see discussion in the advis
Slide 18: Contact Information
Contact Information For more information visit www.altagas.ca or reach out to one of the following: Jon Morrison Adam McKnight Daine Biluk Senior Vice President, Corporate Director, Investor Relations Director, Corporate Development Development and Investor Relations [email protected] and Inv