Financials Document(Q3 2026 Financial Report)

ALTAGAS REPORTS RECORD THIRD QUARTER RESULTS

Calgary, Alberta (October 29, 2026)

AltaGas Ltd. ("AltaGas" or the "Company") (TSX: ALA) reported third quarter 2026 financial results and provided an update on its operations, growth initiatives and corporate developments.

Third Quarter Highlights

(all financial figures are unaudited and in Canadian dollars unless otherwise noted)

Financial Highlights

• Normalized EBITDA1 was $389 million in the third quarter of 2026, compared to $268 million in the third quarter of 2025. Loss before income taxes was $30 million in the third quarter of 2026, compared to $20 million in the third quarter of 2025.

• Normalized EBITDA growth was principally driven by stronger global export volumes and margins, contributions from Pipestone II, and stronger fractionation and liquids handling performance.

• Normalized EPS1 was $0.29 in the third quarter of 2026, compared to $0.04 in the third quarter of 2025. GAAP EPS2 was a loss of $0.07 in the third quarter of 2026 compared to a loss of $0.08 in the third quarter of 2025.

• AltaGas is positioned to finish the year with momentum and expects to deliver financial results towards the high-end of its recently increased 2026 guidance range.

  Operational Highlights

• AltaGas exported a record 147,176 Bbl/d of liquid petroleum gases ("LPG") to Asia across 24 Very Large Gas Carriers ("VLGCs") in the third quarter of 2026, an 11 percent year-over-year increase.

• In October, the Company took delivery of its fourth contracted VLGC, with two additional time charters scheduled for 2027 and 2029, which will continue to support export growth and maritime risk management.

• The Company continued to invest in the modernization of its Utilities system with roughly $120 million of modernization spending during the quarter, bringing year-to-date pipeline replaced to over 40 miles.

  Business Development and Growth

• Construction of Phase I of the Ridley Island Energy Export Facility ("REEF") continues to progress in line with the revised project plan and remains on track for first quarter 2027 completion. With Phase I approximately 90 percent complete, focus is shifting toward commissioning activities.

• Construction on Phase I and Phase II of the Dimsdale gas storage expansion projects remain on time and budget. Phase I facility is over 80 percent complete and is on track to enter service by 2026 year-end.

• The RIPET Methanol Removal project is expected to achieve mechanical completion in the coming weeks, with start-up on track for its 2026 year-end in-service date.

• SEMCO executed an agreement to acquire Xcel Energy's Michigan natural gas operations that will add roughly US$20 million of rate base and 5,800 customers while expanding its Upper Peninsula service territory.

  Regulatory Updates

• In Virginia, Washington Gas received approval for a US$74 million revenue increase, including US$39 million of modernization rider roll-in, and a mid-point allowed ROE increase to 9.80 percent from 9.65 percent.

• In Michigan, SEMCO received approval for a US$33 million revenue increase effective January 1, 2027. Modernization programs were extended through 2031, supporting US$271 million of additional investment.

Balance Sheet

• Trailing adjusted net debt to normalized EBITDA1 exited the quarter at 4.3x, including 50 percent debt treatment on hybrids and preferred shares. This is below AltaGas' 4.5x - 5.0x target leverage range.

  (1) Non-GAAP measure; see discussion and reconciliation to US GAAP financial measures in the advisories of this news release or in AltaGas' Management's Discussion and Analysis (MD&A) as at and for the period ended September 30, 2026, which is available on https://www.sedarplus.ca. (2) GAAP EPS is equivalent to net income (loss) applicable to common shares divided by shares outstanding.

  CEO Message

  "AltaGas delivered another strong quarter, with normalized EBITDA increasing 45 percent year-over-year, driven by exceptional performance across our Midstream business," said Vern Yu, President and Chief Executive Officer of AltaGas. "We are carrying strong momentum into the fourth quarter and now expect to deliver full year financial results towards the high-end of our 2026 guidance ranges.

  "In our Utilities, recent regulatory outcomes in Virginia and Michigan support our continued investment in the safety, reliability and resilience of our natural gas systems, which provide customers with the lowest cost home heating option. The extension of SEMCO's asset modernization programs through 2031, together with our agreement to acquire Xcel Energy's Michigan natural gas operations, reinforces our long-term commitment to grow in Michigan.

  "The outlook for Canadian energy remains exceptionally strong. Growing natural gas and crude oil egress, including the recent FID on LNG Canada Phase 2, is expected to support continued production growth across Western Canada. This growth will drive incremental LPG supply, creating additional export demand that AltaGas is uniquely positioned to capture through its integrated Midstream platform, connecting Canadian LPGs to premium global markets. This quarter we exported over 147,000 barrels per day of LPGs to Asia, a quarterly record and an 11 percent increase over last year.

  "Our open access export platform ensures that our tolling customers receive the benefit of global connectivity while driving material trade diversification for Canada. With REEF now 90 percent complete, our focus has shifted to commissioning and operational readiness ahead of start-up in the first quarter of 2027.

  "With a strong balance sheet and clear strategic priorities, we remain focused on executing safely, delivering durable earnings growth and creating long-term value for shareholders."

  Forward Focus, Guidance and Funding

  Following a strong third quarter of 2026, AltaGas is expecting to deliver financial results towards the high-end of the recently increased guidance range, including:

  • 2026 Normalized EBITDA guidance of $2.0 billion-$2.1 billion, compared to actual normalized EBITDA of

    $1.86 billion and income before taxes of $1.03 billion in 2025; and

  • 2026 Normalized EPS guidance of $2.35-$2.60, compared to actual normalized EPS of $2.23 and GAAP EPS of $2.48 in 2025.

AltaGas is focused on delivering stable and growing normalized EPS and normalized FFO per share while operating with strong financial flexibility. This strategy is designed to support steady dividend growth and provide the opportunity for continued capital appreciation for long-term shareholders.

AltaGas is maintaining a disciplined, self-funded 2026 capital program of approximately $1.8 billion, excluding asset retirement obligations ("ARO"). The Company is allocating approximately 61 percent of its consolidated 2026 capital to its Utilities business, approximately 36 percent to the Midstream business, and the balance to the Corporate/Other segment.

(1) Non-GAAP financial measure; see discussion in Non-GAAP Financial Measures section of this news release.

The Midstream segment reported normalized EBITDA of $337 million in the third quarter of 2026 compared to

$204 million in the third quarter of 2025, while income before income taxes was $174 million in the third quarter of 2026 compared to $128 million in the third quarter of 2025. The 65 percent year-over-year increase in normalized Midstream EBITDA was driven by strong global export volumes and margins, contributions from Pipestone II and higher fractionation and liquids handling contributions.

AltaGas exported a record 147,176 Bbl/d of LPGs to Asia in the third quarter of 2026 across 24 VLGCs, reflecting strong global demand for Canadian LPGs. Consolidated export volumes included approximately 89,134 Bbl/d at RIPET and approximately 58,042 Bbl/d at Ferndale. AltaGas continues to see strong interest from a diverse range of counterparties across Asia, with ongoing discussions around long-term contracting opportunities to diversify the region's supply and enhance long-term energy security.

The Company's Montney infrastructure continued to deliver strong growth with third quarter gathering and processing ("G&P") volumes increasing 20 percent year-over-year, driven by the addition of Pipestone II late in 2025 and higher utilization at Townsend. AltaGas' larger Pipestone complex averaged 94 percent utilization in the third quarter reflecting continued growth from Alberta Montney volumes.

Since October 2, 2026, AltaGas has been managing through a labour strike at Trigon Pacific Terminals. There has been no material impact on RIPET operations to date. AltaGas expects there will be some impact in the coming weeks and is actively implementing mitigation measures. Inclusive of this impact, AltaGas continues to expect full year 2026 results towards the upper end of its recently increased guidance ranges.

Growth Projects

REEF Phase I

Phase I construction of REEF is advancing in line with the revised plan with commercial operations expected in the first quarter of 2027. Onshore execution continues to progress with major equipment installation complete and the railroad utility corridor entering its final phase.

Construction of the 1.2-kilometer jetty, which had previously experienced construction delays due to severe weather, is complete. The Company recently installed the main loading platform, marine loading arms, and fire monitor towers. Focus has shifted to execution of the suction anchor and mooring system installation.

REEF Optimizations

The Company's REEF Optimization I project remains on time and on budget for a second half of 2027 in-service date, and will add approximately 30,000 Bbl/d of propane export capacity.

AltaGas continues to advance REEF's Optimization II project, which will add 60,000 Bbl/d of incremental LPG capacity. Key regulatory permits are secured and final cost estimates are nearing completion. REEF's capital-efficient expansions will further strengthen AltaGas' ability to meet growing Asian demand for North American LPGs.

RIPET

The RIPET Methanol Removal project is expected to achieve mechanical completion and enter the commissioning phase in the coming weeks, with start up on track for its 2026 year-end in-service date. The approximately $55 million project remains on budget and will ensure RIPET propane export volumes have the product specifications to reach all Asian markets.

Dimsdale Storage Expansion

Construction of the Dimsdale Phase I and II storage expansions remain on time and on budget. Phase I, which is expected to add six Bcf of storage capacity by 2026 year-end, is nearing completion, with the pipeline flowing gas

and the remaining facility work over 80 percent complete. Phase II is expected to provide an additional 30 Bcf of gas storage by mid-2027. The Phase II facility is approximately 40 percent complete while the wells are approximately 50 percent complete.

NEBC Liquids Expansion

Construction of the NEBC Liquids Expansion project is planned to commence in early 2027 and has an expected in-service-date of mid-2028. Once complete, the project will provide an additional 6,000 Bbl/d of fractionation capacity in NEBC and improved liquids handling to serve production growth in the region.

Mountain Valley Pipeline Growth Projects

MVP Southgate construction continues to advance, with more than 70% of the pipeline complete and project completion expected by year-end 2026. AltaGas expects to incur approximately US$19 million of capital commitment for MVP Southgate in 2026.

MVP Boost also continues to advance, with efforts focused on resolving the remaining regulatory approvals, and remains on track for completion by mid-2028. AltaGas believes the long-term outlook for the MVP Mainline, Boost and Southgate remains compelling as the assets will compound long-term value for the Company's shareholders.

AltaGas continues to advance a substantial portfolio of high-return growth opportunities across its Midstream platform, including REEF Optimization II, Pipestone III, additional LPG export capacity, potential ethane exports, and related liquids infrastructure investments. The Company remains focused on advancing regulatory, engineering, commercial, and contracting activities to support future capital allocation decisions and long-term growth.

Risk Management

AltaGas' Midstream operations are well-hedged for the remainder of 2026 with approximately 91 percent of the remaining 2026 expected global export volumes tolled or financially hedged. Merchant volumes are hedged at an average Far East Index ("FEI") to North American financial hedge price of US$23.20/Bbl while tolling volumes remain in-line with previously disclosed levels of approximately 60 percent of export volumes.

Approximately 86 percent of the Company's remaining 2026 expected frac exposed volumes are hedged at US$23.50/Bbl, prior to transportation costs. AltaGas continues to actively manage risk across the Midstream platform through commercial contracting and a systematic hedging program to manage its commodity price exposure.

For the remainder of 2026, AltaGas has hedged materially all of its expected Baltic freight exposure through time charters, financial hedges, and tolled volumes.

1. Approximate expected volumes hedged based on AltaGas' internally assumed export volumes. Hedged amounts include contracted tolling volumes and financial hedges.

2. Does not include physical differential to FSK for C3 volumes. Butane is hedged as a percentage of WTI.

3. Approximate average for the period.

Utilities reported normalized EBITDA of $66 million in the third quarter of 2026 compared to $68 million in the third quarter of 2025, while loss before income taxes was $28 million in the third quarter of 2026 compared to $20 million in the third quarter of 2025. The decrease in normalized EBITDA was primarily driven by higher operating and administrative costs, partially offset by revenue growth from system modernization investments and favourable asset optimization activity.

Regulatory Updates

AltaGas received final orders on its two outstanding rate cases in Michigan and Virginia, which marks the completion of four rate cases in the last 12 months and continued advancement of our Utilities' strategic priority of making timely regulatory filings. Together, these outcomes reduce regulatory uncertainty and provide greater visibility into future earnings and cash flow growth. They also support further investment in our regulated asset

base and ensure the Company is positioned to continue to deliver safe, reliable and affordable natural gas to fuel everyday life.

In Virginia, the State Corporation Commission ("SCC of VA") provided Washington Gas approval for a total annual rate increase of US$74 million, including approximately US$35 million in incremental revenue and US$39 million in revenue previously recovered through pipeline modernization riders that will now be incorporated into base rates. It also authorized an allowed ROE range of 9.30 percent to 10.30 percent, with a midpoint of 9.80 percent, an increase from 9.65 percent previously. This outcome builds on Virginia's November 2025 approval of an extension to the three-year pipeline modernization program, which authorizes approximately US$700 million of investment over 2026-2028.

In Michigan, the Michigan Public Service Commission ("MPSC") provided SEMCO approval for a US$33 million annual revenue increase and an authorized ROE of 9.85 percent on a 50 percent equity / 50 percent debt capital structure. New rates take effect January 1, 2027, allowing for full first quarter of winter revenue contribution. The approval also secured extensions of SEMCO's Accelerated Mains Replacement Program ("MRP") and Infrastructure Reliability Improvement Program ("IRIP") through 2031, supporting total approved spending of US$271 million. The extension of these programs supports SEMCO's continued investment in the safety, reliability and resilience of the natural gas system, which delivers the lowest cost home heating to customers.

Michigan Acquisition

AltaGas executed an agreement to acquire approximately 5,800 customers in Michigan's Upper Peninsula from Xcel Energy that will add approximately US$20 million of rate base.

SEMCO looks forward to supporting these customers in their transition to a new service provider and continuing to invest in these assets to ensure long-term safe, reliable and affordable energy service following the anticipated close in the second half of 2027, pending regulatory approvals.

Growth Projects

Construction of the Keweenaw Connector Pipeline continued to progress during the quarter and is now approximately 85 percent complete. Major construction milestones include completion of mainline grading, pipe stringing, bending, welding, coating and ditching, with backfill activities nearing completion. The project remains on schedule for its planned year-end 2026 in-service date and is expected to enhance system reliability and support the long-term energy needs of customers throughout Michigan's Upper Peninsula.

AltaGas continues to make progress on its data center growth strategy, with two projects under agreement and advancing in Maryland and Virginia. The Company is leveraging its regulated utility platform to support growing power demand through investments in pipeline interconnections and related infrastructure, while maintaining a disciplined capital allocation approach.

AltaGas invested $372 million in Utilities capital during the quarter, including investing approximately $120 million towards the Company's various asset modernization programs and $30 million towards new customer growth. These investments improve the safety and reliability of the network while helping maintain affordability through lowering long-term operating costs.

The Corporate/Other segment reported a normalized EBITDA loss of $14 million for the third quarter of 2026, compared to a $4 million loss reported in the same quarter of 2025. Loss before income taxes in the Corporate/ Other segment was $176 million in the third quarter of 2026, compared to a loss of $128 million in the same quarter of 2025. The decrease in normalized EBITDA was mainly driven by higher expenses related to employee incentive plans and increased spend on digital projects.

1. Non-GAAP financial measure; see discussion in Non-GAAP Financial Measures section at the end of this news release.

2. "Other" includes accretion expense, net income applicable to non-controlling interests, foreign exchange gains (losses), and unrealized foreign exchange losses (gains) on intercompany accounts payable and accounts receivables balances.

3. Weighted average.

   Normalized EBITDA for the third quarter of 2026 was $389 million compared to $268 million for the same quarter in 2025. The largest factors contributing to the year-over-year increase are described in the Business Performance sections above.

   Loss before income taxes was $30 million for the third quarter of 2026 compared to $20 million for the same quarter in 2025. Performance for the third quarter of 2026 was mainly due to higher unrealized losses on risk management contracts, higher depreciation and amortization expense, and higher foreign exchange losses, partially offset by the same previously referenced factors impacting normalized EBITDA. Please refer to the "Three Months Ended September 30" section of the Q3 2026 Management's Discussion and Analysis ("MD&A") for further details on the variance in loss before income taxes.

   Normalized net income was $91 million or $0.29 per share for the third quarter of 2026, compared to $11 million or $0.04 per share reported for the same quarter of 2025. The increase was mainly due to the same previously referenced factors impacting normalized EBITDA, partially offset by higher depreciation and amortization expense, higher income tax expense net of normalization adjustments, and higher foreign exchange losses net of normalization adjustments.

   Net loss applicable to common shares for the third quarter of 2026 was $21 million ($0.07 per share), compared to

   $25 million ($0.08 per share) for the same quarter of 2025. The decreased loss was primarily due to higher income tax recovery and the absence of a loss on the redemption of preferred shares recognized in the third quarter of 2025, partially offset by the same previously referenced factors impacting loss before income taxes.

   Normalized FFO was $249 million or $0.80 per share for the third quarter of 2026, compared to $148 million or

   $0.49 per share for the same quarter in 2025. The increase was mainly due to the same previously referenced factors impacting normalized EBITDA (after adjusting for non-cash items), partially offset by higher current income tax expense net of normalization adjustments and higher foreign exchange losses.

   Cash from operations in the third quarter of 2026 was $122 million ($0.39 per share), compared to $34 million ($0.11 per share) for the same quarter of 2025. The increase was mainly due to higher earnings after adjusting for non-cash items, partially offset by unfavourable variances in the net change in operating assets and liabilities, primarily as a result of fluctuations in commodity prices and sales volumes.

   Interest expense for the third quarter of 2026 was $118 million, compared to $116 million for the same quarter in 2025. The increase was mainly due to higher average debt balances, the issuance of additional subordinated hybrid notes in the third quarter of 2025, and the impact of a higher average U.S./Canadian dollar exchange rate, partially offset by higher capitalized interest. Interest expense recorded on the subordinated hybrid notes in the third quarter of 2026 was $37 million, compared to $35 million for the same quarter of 2025.

   Income tax recovery was $14 million for the third quarter of 2026, compared to $6 million for the same quarter of 2025. The increase was mainly due to a higher loss before income taxes.

   Quarterly Common Share Dividend and Preferred Share Dividend

   The Board of Directors approved the following schedule of Dividends:

   Type (1)	Dividend (per share)	Period	Payment Date	Record
   Common Shares	$0.334	n.a.	31-Dec-26	16-Dec-26
   Series G Preferred Shares	$0.376063	29-Sep-26 to 30-Dec-26	31-Dec-26	16-Dec-26

   1. Dividends on common shares and preferred shares are eligible dividends for Canadian income tax purposes.

AltaGas will hold a conference call today, October 29, 2026, at 9:00 a.m. MT (11:00 a.m. ET) to discuss third quarter of 2026 results and other corporate developments.

Date: Thursday, October 29, 2026

Time: 9:00 a.m. MT (11:00 a.m. ET)

Webcast: Webcast Link

Dial-in (Audio only): +1 289 514 5100 or toll free at +1 800 717 1738

Shortly after the conclusion of the call a replay will be available on the Company's website or by dialing

+1 289 819 1325 or toll free +1 888 660 6264. Passcode 61557#.

AltaGas' Consolidated Financial Statements and accompanying notes for the third quarter of 2026, as well as its related MD&A, are now available online at https://www.altagas.ca. All documents will be filed with the Canadian securities regulatory authorities and will be posted under AltaGas' SEDAR+ profile at https://www.sedarplus.ca.

This news release contains references to certain financial measures that do not have a standardized meaning prescribed by U.S. GAAP and may not be comparable to similar measures presented by other entities. The non-GAAP measures and their reconciliation to U.S. GAAP financial measures are shown below and within AltaGas' Management's Discussion and Analysis (MD&A) as at and for the period ended September 30, 2026. These non-GAAP measures provide additional information that Management believes is meaningful regarding AltaGas' operational performance, liquidity and capacity to fund dividends, capital expenditures, and other investing activities. Readers are cautioned that these non-GAAP measures should not be construed as alternatives to other measures of financial performance calculated in accordance with U.S. GAAP.

1. Comprised of transaction costs related to acquisitions and dispositions of assets and/or equity investments in the period. These costs are included in the "operating and administrative" line item on the Consolidated Statements of Income (Loss). Transaction costs include expenses, such as legal fees, which are directly attributable to the acquisition or disposition.

2. Included in the "revenue", "cost of sales", and "foreign exchange losses" line items on the Consolidated Statements of Income (Loss). Please refer to Note 12 of the unaudited condensed interim Consolidated Financial Statements as at and for the three and nine months ended September 30, 2026 for further details regarding AltaGas' risk management activities.

3. Included in the "other income" line item on the Consolidated Statements of Income (Loss).

4. Comprised of transition and restructuring costs (including CFO transition). These costs are included in the "operating and administrative" line item on the Consolidated Statements of Income (Loss).

5. Excludes unrealized losses (gains) on foreign exchange contracts that are recorded within the "foreign exchange losses" line item on the Consolidated Statements of Income (Loss). These losses (gains) are included above in the line "unrealized losses (gains) on risk management contracts".

EBITDA is a measure of AltaGas' operating profitability prior to how business activities are financed, assets are amortized, or earnings are taxed. EBITDA is calculated from the Consolidated Statements of Income (Loss) using income (loss) before income taxes adjusted for pre-tax depreciation and amortization and interest expense.

AltaGas presents normalized EBITDA as a supplemental measure. Normalized EBITDA is used by Management to enhance the understanding of AltaGas' earnings over periods, as well as for budgeting and compensation related purposes. The metric is frequently used by analysts and investors in the evaluation of entities within the industry as it excludes items that can vary substantially between entities depending on the accounting policies chosen, the book value of assets, and the capital structure.

1. Comprised of transaction costs related to acquisitions and dispositions of assets and/or equity investments in the period. The pre-tax costs are included in the "operating and administrative" line item on the Consolidated Statements of Income (Loss). Transaction costs include expenses, such as legal fees, which are directly attributable to the acquisition or disposition.

2. The pre-tax amounts are included in the "revenue", "cost of sales", and "foreign exchange losses" line items on the Consolidated Statements of Income (Loss). Please refer to Note 12 of the unaudited condensed interim Consolidated Financial Statements as at and for the three and nine months ended September 30, 2026 for further details regarding AltaGas' risk management activities.

3. The pre-tax amounts are included in the "other income" line item on the Consolidated Statements of Income (Loss).

4. Comprised of transition and restructuring costs (including CFO transition). These pre-tax costs are included in the "operating and administrative" line item on the Consolidated Statements of Income (Loss). After-tax restructuring cost normalizations also include the normalization of tax expenses related to legal entity restructuring.

5. Relates to unrealized foreign exchange losses (gains) on intercompany accounts receivable and accounts payable balances between a U.S. subsidiary and a Canadian entity, where the impact to the U.S. subsidiary is recorded through accumulated other comprehensive income as a gain (loss) on foreign currency translation, and the impact to the Canadian entity is recorded through the "foreign exchange losses" line item on the Consolidated Statements of Income (Loss).

Normalized net income and normalized net income per share are used by Management to enhance the comparability of AltaGas' earnings, as these metrics reflect the underlying performance of AltaGas' business activities. Normalized EPS is calculated as normalized net income divided by the average number of shares outstanding during the period.

1. Comprised of transaction costs related to acquisitions and dispositions of assets and/or equity investments in the period. These costs exclude non-cash amounts and are included in the "operating and administrative" line item on the Consolidated Statements of Income (Loss). Transaction costs include expenses, such as legal fees, which are directly attributable to the acquisition or disposition.

2. Comprised of transition and restructuring costs (including CFO transition). These costs are included in the "operating and administrative" line item on the Consolidated Statements of Income (Loss).

Normalized funds from operations and funds from operations are used to assist Management and investors in analyzing the liquidity of the Corporation. Management uses these measures to understand the ability to generate funds for capital investments, debt repayment, dividend payments, and other investing activities.

Funds from operations and normalized funds from operations as presented should not be viewed as an alternative to cash from operations or other cash flow measures calculated in accordance with GAAP.

1. Net of debt issuance costs, unamortized premiums, and unamortized discounts of less than $1 million as at September 30, 2026 (December 31, 2025 - less than $1 million).

2. Net of debt issuance costs, unamortized premiums, and unamortized discounts of $31 million as at September 30, 2026 (December 31, 2025 - $29 million).

3. Net of debt issuance costs of $24 million as at September 30, 2026 (December 31, 2025 - $25 million).

4. Calculated as adjusted net debt at the balance sheet date, divided by normalized EBITDA for the preceding 12 month period.

Net debt, adjusted net debt, and adjusted net debt to normalized EBITDA are used by the Corporation to monitor its capital structure and assess its capital structure relative to earnings. They are also used as measures of the Corporation's overall financial strength and is presented to provide this perspective to analysts and investors. Net debt is defined as short-term debt, plus current and long-term portions of long-term debt, current and long-term portions of finance lease liabilities, and subordinated hybrid notes, less cash and cash equivalents. Adjusted net debt is defined as net debt less current and long-term portions of finance lease liabilities and 50 percent of subordinated hybrid notes, plus 50 percent of preferred shares. Adjusted net debt to normalized EBITDA is calculated by dividing adjusted net debt as defined above by normalized EBITDA for the preceding 12 month period.

1. Comprised of non-cash capital expenditures included in the "accounts payable and accrued liabilities" line item on the Consolidated Balance Sheets. Please refer to Note 18 of the unaudited condensed interim Consolidated Financial Statements as at and for the three and nine months ended September 30, 2026 for further details.

2. Excludes cash received from advance cash calls related to forecasted capital spend.

Invested capital is a measure of AltaGas' use of funds for capital expenditure activities. It includes expenditures relating to property, plant, and equipment and intangible assets, capital contributed to long term investments, and contributions from non-controlling interests. Net invested capital is invested capital presented net of cash paid for business acquisitions and proceeds from disposals of assets and equity investments in the period. Net invested capital is calculated based on the investing activities section in the Consolidated Statements of Cash Flows, adjusted for items such as non-cash capital expenditures, and contributions from non-controlling interests. Invested capital and net invested capital are used by Management, investors, and analysts to enhance the understanding of AltaGas' capital expenditures from period to period and provide additional detail on the Company's use of capital.

The below table provides a supplemental reconciliation of normalized EBITDA to normalized net income. Both of these non-GAAP measures have been previously reconciled to the relevant GAAP financial measures in the section above. This supplemental information is provided as additional information to assist analysts and investors in comparing normalized EBITDA to normalized net income and is not intended as a substitute for the reconciliations to the nearest comparable GAAP measures. Readers should not place undue reliance on this supplemental reconciliation.

1. Represents the income tax impact related to the normalizing items included in the calculation of normalized net income.

1. Non-GAAP financial measure or non-GAAP financial ratio; see discussion in Non-GAAP Financial Measures section of the MD&A.

2. Dividends declared per common share per quarter: $0.315 per share beginning March 2025, increased to $0.334 per share effective March 2026.

3. Due to relatively low loss before income taxes in the third quarter of 2026, the impact of permanent differences and the composition of earnings had a greater proportional effect on the effective income tax rate in the quarter.

4. Weighted average.

AltaGas is a leading North American infrastructure company that connects customers and markets to affordable and reliable sources of energy. The Company operates a diversified, lower-risk, high-growth Utilities and Midstream business that is focused on delivering resilient and durable value for its stakeholders.

For more information visit https://www.altagas.ca or reach out to one of the following:

Jon Morrison

Senior Vice President, Corporate Development and Investor Relations [email protected]

Aaron Swanson

Vice President, Investor Relations [email protected]

Investor Inquiries

1-877-691-7199

[email protected]

Media Inquiries

1-403-206-2841

[email protected]

This news release contains forward-looking information (forward-looking statements). Words such as "may", "can", "would", "could", "should", "likely", "will", "intend", "plan", "anticipate", "believe", "aim", "seek", "future", "commit", "propose", "contemplate", "estimate", "focus", "strive", "forecast", "expect", "project", "potential", "target", "guarantee", "objective", "continue", "outlook", "guidance", "growth", "long-term", "vision", "opportunity" and similar expressions suggesting future events or future performance, as they relate to the Company or any affiliate of the Company, are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, business objectives, expected growth, results of operations, performance, business projects and opportunities and financial results. Specifically, such forward-looking statements included in this document include, but are not limited to, statements with respect to the following: the addition of two time charters scheduled for 2027 and 2029, respectively, and the anticipated benefits thereof; progress on the construction of REEF and the expected cost and timing for in-service; Phase I and II expansions of the Dimsdale Gas Storage Facility, including the anticipated capital cost, in-service dates and benefits thereof; the RIPET Methanol Removal project and the anticipated timing thereof; AltaGas' target leverage range; AltaGas' long-term commitment to growth in Michigan; the strong outlook for Canadian energy, including factors supporting production growth in Western Canada and the benefits to AltaGas' Midstream platform; AltaGas' focus on executing safely, delivering durable earnings growth and creating long-term value for shareholders; AltaGas' 2026 guidance including normalized earnings per share of $2.35 to $2.60 and normalized EBITDA of $2.0 to $2.1 billion; the expectation that AltaGas will deliver financial results towards the high-end of its 2026 guidance range; AltaGas' focus on delivering stable and growing normalized EPS and normalized FFO per share while operating with strong financial flexibility and the anticipated benefits thereof; AltaGas' 2026 capital program of approximately $1.8 billion, excluding ARO; the allocation of consolidated 2026 capital to the Company's Utilities, Midstream and Corporate/Other segments; the Trigon Pacific Terminals labour strike and the potential impacts thereof; AltaGas' Midstream and Utilities Growth Projects, including the anticipated timing, benefits and capital costs thereof; additional midstream growth projects, including REEF Optimization II, Pipestone III, additional LPG export capacity, potential ethane exports, and related liquids infrastructure investments; the Company's hedging program and AltaGas' 2026 Midstream Hedge Program quarterly estimates; expected filing, procedure and decision dates for rate cases in the Utilities business; timing of material regulatory filings, proceedings and decisions in the Utilities business; SEMCO's acquisition of assets from Xcel Energy, including the anticipated closing date and benefits thereof; that SEMCO will continue to invest in these assets and the anticipated benefits thereof; and AltaGas' dividend policy.

These statements involve known and unknown risks, uncertainties and other factors that may cause actual results, events, and achievements to differ materially from those expressed or implied by such statements. Such statements reflect AltaGas' current expectations, estimates, and projections based on certain material factors and assumptions at the time the statement was made. Material assumptions include: effective tax rates; U.S./Canadian dollar exchange rates; inflation; interest rates, credit ratings, regulatory approvals and policies; expected commodity supply, demand and pricing; volumes and rates; propane and butane price differentials; degree day variance from normal; pension discount rate; financing initiatives; the performance of the businesses underlying each sector; impacts of the hedging program; weather; frac spread; access to capital; future operating and capital costs; timing and receipt of regulatory approvals; seasonality; planned and unplanned plant outages; timing of inservice dates of new projects and acquisition and divestiture activities; taxes; operational expenses; returns on investments; dividend levels; and transaction costs.

AltaGas' forward-looking statements are subject to certain risks and uncertainties which could cause results or events to differ from current expectations, including, without limitation: health and safety risks; operating risks; infrastructure; natural gas supply risks; volume throughput; service interruptions; transportation of petroleum products; market risk; inflation; general economic conditions; cybersecurity, information, and control systems; climate-related risks; environmental regulation risks; regulatory risks; litigation; changes in law; Indigenous and treaty rights; dependence on certain partners; political uncertainty and civil unrest; risks related to conflict, including the conflicts in Eastern Europe and the Middle East; decommissioning, abandonment and reclamation costs; reputation risk; weather data; capital market and liquidity risks; interest rates; internal credit risk; foreign exchange risk; debt financing, refinancing, and debt service risk; counterparty and supplier risk; technical systems and processes incidents; growth strategy risk; construction and development; underinsured and uninsured losses; impact of competition in AltaGas' businesses; counterparty credit risk; composition risk; collateral; rep agreements; market value of the common shares and other securities; variability of dividends; potential sales of additional shares; labor relations; key personnel; risk management costs and limitations; commitments associated with regulatory approvals for the acquisition of WGL; cost of providing retirement plan benefits; failure of service providers; risks related to pandemics, epidemics or disease outbreaks; and the other factors discussed under the heading "Risk Factors" in the Corporation's Annual Information Form for the year ended December 31, 2025 ("AIF") and set out in AltaGas' other continuous disclosure documents.

Many factors could cause AltaGas' or any particular business segment's actual results, performance or achievements to vary from those described in this press release, including, without limitation, those listed above and the assumptions upon which they are based proving incorrect. These factors should not be construed as exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this news release as intended, planned, anticipated, believed, sought, proposed, estimated, forecasted, expected, projected or targeted and such forward-looking statements included in this news release, should not be unduly relied upon. The impact of any one assumption, risk, uncertainty, or other factor on a particular forward-looking statement cannot be determined with certainty because they are interdependent and AltaGas' future decisions and actions will depend on management's assessment of all information at the relevant time. Such statements speak only as of the date of this news release. AltaGas does not intend, and does not assume any obligation, to update these forward-looking statements except as required by law. The forward-looking statements contained in this news release are expressly qualified by these cautionary statements.

Financial outlook information contained in this news release about prospective financial performance, financial position, or cash flows is based on assumptions about future events, including economic conditions and proposed courses of action, based on AltaGas management's assessment of the relevant information currently available. Readers are cautioned that such financial outlook information contained in this news release should not be used for purposes other than for which it is disclosed herein.

Additional information relating to AltaGas, including its quarterly and annual MD&A and Consolidated Financial Statements, AIF, and press releases are available through AltaGas' website at https://www.altagas.ca or through SEDAR+ at https://www.sedarplus.ca.

For the three and nine months ended September 30, 2026 Dated: October 28, 2026

AltaGas Ltd. ("AltaGas", the "Company", or the "Corporation") is a leading North American energy infrastructure company that connects customers and markets to affordable and reliable sources of energy. The Company operates a diversified, lower-risk, high-growth energy infrastructure business focused on delivering resilient and durable value for its stakeholders. AltaGas has three reporting segments - Utilities, Midstream, and Corporate/ Other.

AltaGas' Utilities segment owns and operates franchised, cost-of-service, rate-regulated natural gas distribution and storage utilities that are focused on providing safe, reliable, and affordable energy to its customers. In the third quarter of 2026, AltaGas' Utilities provided energy to 1.6 million residential and commercial customers with an average rate base of US$5.7 billion.

The Utilities segment includes two utilities that deliver essential energy across four major United States ("U.S.") jurisdictions:

• Washington Gas Light Company ("Washington Gas") is the Company's largest operating utility and serves

  1.2 million customers across Virginia, Maryland, and the District of Columbia ("D.C."); and

• SEMCO Energy, Inc. ("SEMCO Energy") serves 333,000 customers in Southern Michigan and Michigan's Upper Peninsula.

  The Utilities segment also includes other storage facilities and contracts for interstate natural gas transportation and storage services, as well as WGL Energy Services, Inc. ("WGL Energy Services"), an affiliated retail energy marketing business, which sells natural gas and electricity directly to residential, commercial, and industrial customers across Maryland, Virginia, Delaware, Pennsylvania, Ohio, New Jersey, and D.C.

  Midstream Segment

  AltaGas' Midstream segment is a leading North American platform that connects customers and markets to critical forms of energy. From wellhead to tidewater, the Company is focused on providing its customers with safe and reliable service and connectivity across the Midstream value chain that facilitates the best outcomes for their businesses. This includes global market access for North American Liquified Petroleum Gases ("LPGs"), which provides North American producers and aggregators with attractive netbacks for propane and butane while delivering diversity of supply and supporting stronger energy security in Asia to AltaGas' downstream customers.

  AltaGas' Midstream platform is heavily focused on the Montney and Deep Basin resource plays and centers around open access LPG exports, which is where the Company believes the market is headed for Canadian resource development over the long-term. AltaGas also operates a broader set of midstream infrastructure assets across the Western Canadian Sedimentary Basin ("WCSB") and select regions in the U.S., which are all focused on connecting customers and markets in the most efficient manner possible.

  There are three core pillars to AltaGas' Midstream platform that are integral to each other and facilitate the Company's wellhead to tidewater and beyond value chain. These include:

• Global Exports, which includes AltaGas' two operational LPG export terminals that provide open market access to approximately 70 counterparties, for nameplate export capacity of up to 155,000 Bbls/d of propane and butane to key demand markets in Asia, and a third terminal currently under construction;

• Natural Gas Gathering, Processing and Extraction, which includes 1.2 Bcf/d of extraction processing capacity and 1.3 Bcf/d of raw field gas processing capacity, which is heavily focused on the Montney and Deep Basin; and

• Fractionation and Liquids Handling, which includes 70 MBbls/d of fractionation capacity and a sizable liquids handling footprint.

  The Midstream segment also consists of natural gas and natural gas liquids ("NGLs") marketing businesses, domestic logistics, trucking and rail terminals, liquids storage with 3.2 million barrels of capacity through a network of underground salt caverns through the Company's Strathcona Storage JV with ATCO Energy Solutions Ltd., 15 Bcf of natural gas storage through the Dimsdale natural gas storage facility ("Dimsdale"), as well as AltaGas' 10 percent equity interest in the Mountain Valley Pipeline ("MVP"), which is a 2.0 Bcf/d transportation pipeline that transports natural gas from the Marcellus region across Virginia and West Virginia to key downstream demand markets with pipeline expansion and extension opportunities.

  Corporate/Other Segment

  AltaGas' Corporate/Other segment consists of the Company's corporate activities and a small portfolio of gas-fired power generation and distribution assets capable of generating 508 MW of power, primarily in California.

  Third Quarter Highlights

  Normalized EBITDA, normalized funds from operations, normalized net income, and adjusted net debt are non-GAAP financial measures. Normalized funds from operations per share, normalized net income per share, and adjusted net debt to normalized EBITDA are non-GAAP ratios. Please see Non-GAAP Financial Measures section of this Management's Discussion and Analysis ("MD&A").

  Financial Highlights

• Normalized EBITDA was $389 million in the third quarter of 2026, compared to $268 million recorded in the third quarter of 2025. Loss before income taxes was $30 million in the third quarter of 2026, compared to $20 million in the third quarter of 2025.

• Normalized EBITDA growth was principally driven by stronger global export volumes and margins, contributions from Pipestone II, and stronger fractionation and liquids handling performance.

• Normalized earnings per share ("EPS") was $0.29 in the third quarter of 2026, compared to $0.04 in the third quarter of 2025. GAAP EPS was a loss of $0.07 in the third quarter of 2026 compared to a loss of

  $0.08 in the third quarter of 2025.

• AltaGas is positioned to finish the year with momentum and expects to deliver financial results towards the high-end of its recently increased 2026 guidance range.

  Operational Highlights

• AltaGas exported a record 147,176 Bbls/d of LPGs to Asia across 24 Very Large Gas Carriers ("VLGCs") in the third quarter of 2026, an 11 percent year-over-year increase.

• In October, the Company took delivery of its fourth contracted VLGC, with two additional time charters scheduled for 2027 and 2029, which will continue to support export growth and maritime risk management.

• The Company continued to invest in the modernization of its Utilities system with roughly $120 million of modernization spending during the quarter, bringing year-to-date pipeline replaced to over 40 miles.

  Business Development and Growth

• Construction of Phase I of the Ridley Island Energy Export Facility ("REEF") continues to progress in line with the revised project plan and remains on track for first quarter 2027 completion. With Phase I approximately 90 percent complete, focus is shifting toward commissioning activities.

• Construction on Phase I and Phase II of the Dimsdale gas storage expansion projects remain on time and budget. Phase I facility is over 80 percent complete and is on track to enter service by 2026 year-end.

• The RIPET Methanol Removal project is expected to achieve mechanical completion in the coming weeks, with start-up on track for its 2026 year-end in-service date.

• SEMCO executed an agreement to acquire Xcel Energy's Michigan natural gas operations that will add roughly US$20 million of rate base and 5,800 customers while expanding its Upper Peninsula service territory.

  Regulatory Updates

• In Virginia, Washington Gas received approval for a US$74 million revenue increase, including US$39 million of modernization rider roll-in, and a mid-point allowed ROE increase to 9.80 percent from 9.65 percent.

• In Michigan, SEMCO received approval for a US$33 million revenue increase effective January 1, 2027. Modernization programs were extended through 2031, supporting US$271 million of additional investment.

  Balance Sheet

• Trailing adjusted net debt to normalized EBITDA exited the quarter at 4.3x, including 50 percent debt treatment on hybrids and preferred shares. This is below AltaGas' 4.5x - 5.0x target leverage range.

• On October 1, 2026, AltaGas Services (U.S.) Inc., a wholly-owned subsidiary of AltaGas, issued US$750 million of Senior Notes due 2031. Proceeds are being used for general corporate purposes, including repayment of existing credit facility indebtedness. Effective October 2, 2026, AltaGas Services (U.S.) Inc. was merged into AltaGas Services (U.S.) LLC.

1. Non-GAAP financial measure or non-GAAP financial ratio; see discussion in the Non-GAAP Financial Measures section of this MD&A.

2. Dividends declared per common share per quarter: $0.315 per share beginning March 2025, increased to $0.334 per share effective March 2026.

3. Due to relatively low loss before income taxes in the third quarter of 2026, the impact of permanent differences and the composition of earnings had a greater proportional effect on the effective income tax rate in the quarter.

4. Weighted average.

1. Non-GAAP financial measure; see discussion in the Non-GAAP Financial Measures section of this MD&A.

Normalized EBITDA for the third quarter of 2026 was $389 million, compared to $268 million for the same quarter of 2025, primarily driven by strong performance from the Midstream segment.

In the Midstream segment, the increase in normalized EBITDA was primarily driven by stronger contributions from the global exports business due to higher margins and volumes, as well as contributions from Pipestone II, which was placed into service in December 2025, and stronger contributions from the fractionation and liquids handling business supported by improved marketing margins. These factors were partially offset by higher operating and administrative expenses, lower earnings at the extraction facilities mainly due to lower realized frac spreads, and lower storage revenue. Please refer to the Midstream Segment section of this MD&A for more details on the factors impacting Midstream results.

In the Utilities segment, the decrease in normalized EBITDA was primarily attributable to higher operating and administrative expenses, partially offset by higher revenue associated with ARP investments. Please refer to the Utilities Segment section of this MD&A for more details on the factors impacting Utilities results.

In the Corporate/Other segment, the decrease in normalized EBITDA was mainly driven by higher expenses related to employee incentive plans and increased spend on digital projects. Please refer to the Corporate/Other Segment section of this MD&A for more details on the factors impacting Corporate/Other results.

Loss before income taxes for the third quarter of 2026 was $30 million, compared to $20 million for the same quarter of 2025. The increased loss was mainly due to higher unrealized losses on risk management contracts, higher depreciation and amortization expense, and higher foreign exchange losses, partially offset by the same previously referenced factors impacting normalized EBITDA. Net loss applicable to common shares for the third quarter of 2026 was $21 million ($0.07 per share), compared to $25 million ($0.08 per share) for the same quarter of 2025. The decreased loss was primarily due to higher income tax recovery and the absence of a loss on the

redemption of preferred shares recognized in the third quarter of 2025, partially offset by the same previously referenced factors impacting loss before income taxes.

Normalized funds from operations for the third quarter of 2026 was $249 million ($0.80 per share), compared to

$148 million ($0.49 per share) for the same quarter of 2025. The increase was mainly due to the same previously referenced factors impacting normalized EBITDA (after adjusting for non-cash items), partially offset by higher current income tax expense net of normalization adjustments and higher foreign exchange losses.

Cash from operations in the third quarter of 2026 was $122 million ($0.39 per share), compared to $34 million ($0.11 per share) for the same quarter of 2025. The increase was mainly due to higher earnings after adjusting for non-cash items, partially offset by unfavourable variances in the net change in operating assets and liabilities, primarily as a result of fluctuations in commodity prices and sales volumes. Please refer to the Liquidity section of this MD&A for further details on the variance in cash from operations.

Interest expense for the third quarter of 2026 was $118 million, compared to $116 million for the same quarter of 2025. The increase was mainly due to higher average debt balances, the issuance of additional subordinated hybrid notes in the third quarter of 2025, and the impact of a higher average U.S./Canadian dollar exchange rate, partially offset by higher capitalized interest. Interest expense recorded on the subordinated hybrid notes in the third quarter of 2026 was $37 million, compared to $35 million for the same quarter of 2025.

AltaGas recorded an income tax recovery of $14 million for the third quarter of 2026, compared to $6 million for the same quarter of 2025. The increase was mainly due to a higher loss before income taxes.

Normalized net income was $91 million ($0.29 per share) for the third quarter of 2026, compared to $11 million ($0.04 per share) for the same quarter of 2025. The increase was mainly due to the same previously referenced factors impacting normalized EBITDA, partially offset by higher depreciation and amortization expense, higher income tax expense net of normalization adjustments, and higher foreign exchange losses net of normalization adjustments. Please refer to the Non-GAAP Financial Measures section of this MD&A for further details on normalization adjustments.

Normalized EBITDA for the first nine months of 2026 was $1,598 million, compared to $1,299 million for the same period in 2025. The increase was largely driven by strong results from both the Midstream and Utilities segments.

In the Midstream segment, the increase in normalized EBITDA was mainly driven by stronger contributions from the global exports business due to higher margins and tolling volumes, contributions from Pipestone II, which was placed into service in December 2025, and higher contributions from the fractionation and liquids handling business supported by improved marketing margins and higher volumes from the NEBC processing facilities. These factors were partially offset by higher operating and administrative expenses as well as lower earnings at the extraction facilities due to lower realized frac spreads. Please refer to the Midstream Segment section of this MD&A for more details on the factors impacting Midstream results.

In the Utilities segment, the increase in normalized EBITDA was primarily due to the impacts of the 2024 D.C. and 2025 Virginia rate cases, the gain on partial settlement of Washington Gas' post-retirement benefit plan in the first quarter of 2026, higher revenue associated with ARP investments, and increased asset optimization activities at Washington Gas. These factors were partially offset by higher operating and administrative expenses and lower contributions from WGL's retail business. Please refer to the Utilities Segment section of this MD&A for more details on the factors impacting Utilities results.

In the Corporate/Other segment, the decrease in normalized EBITDA was mainly driven by higher employee incentive compensation expense, primarily as a result of AltaGas' rising share price in 2026, as well as increased spend on digital projects. Please refer to the Corporate/Other Segment section of this MD&A for more details on the factors impacting Corporate/Other results.

Income before income taxes for the first nine months of 2026 was $560 million, compared to $719 million for the same period in 2025. The decrease was mainly due to unrealized losses on risk management contracts compared to unrealized gains in the same period in 2025, higher depreciation and amortization expense, higher interest expense, and higher foreign exchange losses, partially offset by the same previously referenced factors impacting normalized EBITDA. Net income applicable to common shares for the first nine months of 2026 was $414 million ($1.33 per share), compared to $542 million ($1.81 per share) for the same period in 2025. The decrease was mainly due to the same previously referenced factors impacting income before income taxes, partially offset by lower income tax expense, lower preferred share dividends, and the absence of a loss on the redemption of preferred shares recognized in the third quarter of 2025.

Normalized funds from operations for the first nine months of 2026 was $1,183 million ($3.79 per share), compared to $927 million ($3.10 per share) for the same period in 2025. The increase was mainly due to the same

previously referenced factors impacting normalized EBITDA (after adjusting for non-cash items) and lower current income tax expense net of normalization adjustments, partially offset by higher interest expense, lower distributions from equity investments, and higher foreign exchange losses.

Cash from operations for the first nine months of 2026 was $1,186 million ($3.80 per share), compared to $1,026 million ($3.43 per share) for the same period in 2025. The increase was mainly due to higher earnings after adjusting for non-cash items, partially offset by unfavourable variances in the net change in operating assets and liabilities, primarily as a result of fluctuations in commodity prices and sales volumes, as well as lower distributions from equity investments. Please refer to the Liquidity section of this MD&A for further details on the variance in cash from operations.

Interest expense for the first nine months of 2026 was $354 million, compared to $345 million for the same period in 2025. The increase was mainly due to the issuance of additional subordinated hybrid notes in the third quarter of 2025, higher average interest rates, higher average debt balances, and lower capitalized interest, partially offset by the impact of a lower average U.S./Canadian dollar exchange rate. For the nine months ended September 30, 2026, AltaGas recorded total interest expense of $110 million on the subordinated hybrid notes compared to

$103 million for the same period in 2025.

AltaGas recorded income tax expense of $132 million for the first nine months of 2026, compared to $151 million for the same period in 2025. The decrease was mainly due to lower income before income taxes.

Normalized net income was $603 million ($1.93 per share) for the first nine months of 2026, compared to $434 million ($1.45 per share) for the same period in 2025. The increase was mainly due to the same previously referenced factors impacting normalized EBITDA and lower preferred share dividends, partially offset by higher income tax expense net of normalization adjustments, higher depreciation and amortization expense, higher foreign exchange losses net of normalization adjustments, and higher interest expense. Please refer to the Non-GAAP Financial Measures section of this MD&A for further details on normalization adjustments.

In 2026, AltaGas expects to achieve normalized EBITDA and normalized earnings per share towards the high end of its guidance ranges of $2.0 billion to $2.1 billion and $2.35 to $2.60, respectively. This compares to actual normalized EBITDA of $1.863 billion and normalized earnings per share of $2.23 in 2025, as well as GAAP net income per share of $2.48 in 2025. For the year ended December 31, 2025, income before income taxes was

$1,029 million while net income applicable to common shares was $747 million.

The Utilities segment is expected to contribute approximately 50 percent of normalized EBITDA in 2026, with year-over-year expected growth primarily driven by continued rate base growth through new rates in Virginia, D.C., and Maryland, ongoing capital investments in asset modernization programs on behalf of AltaGas' customers, increased asset optimization activities at Washington Gas, and positive contribution from new customer growth, partially offset by lower expected gains on partial settlements of Washington Gas' post-retirement benefit plan, lower expected performance from WGL's retail business, as well as higher operating and administrative expenses. The Midstream segment is expected to contribute approximately 50 percent of normalized EBITDA, with year-over-year expected growth driven primarily by stronger expected global export volumes and margins, a full year of contributions from the Pipestone II facility, and favourable marketing margins, partially offset by lower frac spreads and higher operating and administrative expenses. Since October 2, 2026, AltaGas has been managing through a labour strike at Trigon Pacific Terminals. There has been no material impact on RIPET operations to date. AltaGas expects there will be some impact in the coming weeks and is actively implementing mitigation measures. Inclusive of this impact, AltaGas continues to expect full year 2026 results towards the upper end of its recently increased guidance ranges. The Corporate/Other segment is expected to report a larger normalized EBITDA loss than in 2025, primarily due to higher incentive compensation expenses driven by AltaGas' rising share price and continued investment in digital projects.

The anticipated increase in normalized earnings per share from $2.23 in 2025 to a range of $2.35 to $2.60 in 2026 is expected to be driven primarily by the same factors supporting growth in normalized EBITDA, partially offset by higher income tax expense net of normalization adjustments, increased depreciation and amortization expense, and higher interest expense.

The outlook for normalized EBITDA and normalized earnings per share incorporates assumptions regarding the Canadian/U.S. dollar exchange rate and AltaGas' existing foreign exchange hedging program. Actual results may vary based on the performance of underlying businesses within each segment and changes to key assumptions. For additional information regarding risks and uncertainties that may impact results, please refer to the Risk Factors section of AltaGas' 2025 Annual Information Form, which is available on SEDAR+ at https://www.sedarplus.ca.

AltaGas continues to focus on de-risking its business and managing direct commodity price exposure to drive predictable and durable results. While the Company has exposure, it maintains an active hedging program that

proactively hedges commodity price and spread risk to mitigate the impact of fluctuations in margins and cash flows. For the remainder of 2026, AltaGas has hedged materially all of its expected Baltic freight exposure through time charters, financial hedges, and tolled volumes, in addition to the hedges in the following table:

1. Approximate expected volumes hedged based on AltaGas' internally assumed export volumes. Hedged amounts include contracted tolling volumes and financial hedges.

2. Does not include physical differential to Fort Saskatchewan for C3 volumes. Butane is hedged as a percentage of WTI.

3. Approximate average for the period.

   Sensitivity Analysis

   AltaGas' financial performance is affected by factors such as changes in commodity prices, foreign exchange rates, and weather. The following table illustrates the approximate effect of these key variables on AltaGas' expected normalized results for the remainder of 2026:

   Factor	Increase or decrease	Approximate impact on normalized results for the remainder of 2026 ($ millions)
   Degree day variance from normal - Utilities (1) (2)	5 percent	4
   Change in Canadian dollar per U.S. dollar exchange rate (3) (4)	0.05	2
   Propane and butane FEI to North America spreads (1) (5)	US$1/Bbl	2

   1. Represents expected impact on normalized EBITDA for the remainder of 2026.

   2. Relates to SEMCO and D.C. service areas. Degree days are a measure of coldness determined daily as the number of degrees the average temperature during the day in question is below 65 degrees Fahrenheit. Normal degree days for a particular period are the average of degree days during the prior 15 years for SEMCO and during the prior 30 years for Washington Gas.

   3. Represents expected impact on normalized net income for the remainder of 2026.

   4. The sensitivity is net of hedges on U.S. denominated earnings currently in place. Refer to the Risk Management section of this MD&A for more details.

   5. The sensitivity is calculated on merchant barrels net of hedges currently in place for the remainder of the year. The impact on normalized EBITDA due to changes in the spread will vary and is being managed through an active hedging program.

AltaGas is maintaining a disciplined capital program, and currently expects to deploy the following amount of invested capital in 2026:

In 2026, Utilities capital expenditures are expected to be focused primarily on safety and reliability initiatives, including asset modernization and pipeline replacement programs, system betterment projects, and new customer additions. The year-over-year increase in expected Utilities capital spending is primarily driven by construction of the Keweenaw Connector Pipeline in Michigan and ARP investments in Virginia under the approved SAVE Plan.

In the Midstream segment, capital expenditures are expected to be directed towards growth and optimization projects, including REEF, REEF Optimization I, the Dimsdale Phase I and Phase II expansions, and the RIPET Methanol Removal Project, as well as maintenance, administrative, and other optimization capital across the existing asset base.

AltaGas remains focused on capital-efficient organic growth, disciplined capital allocation, and enhancing balance

sheet strength and financial flexibility.

AltaGas' 2026 committed capital program is expected to be funded through internally generated cash flows, driven by higher annual investment capacity from growing normalized EBITDA, and enhanced financial flexibility as a result of AltaGas' stronger balance sheet.

Please refer to the Net Invested Capital and Non-GAAP Financial Measures sections of this MD&A for additional information on the components of AltaGas' invested capital.

The following table summarizes the status of AltaGas' significant growth projects:

1. These amounts are estimates and are subject to change based on various factors. Unless otherwise noted, the amounts reflect AltaGas' share of the various projects.

2. The utility accelerated replacement programs are long-term projects with multiple phases for which expenditures are approved by the regulators and managed in multi-year increments.

1. Bcf is one billion cubic feet.

2. Service sites reflect all of the service sites of the utilities, including transportation and non-regulated business lines.

3. A degree day is a measure of coldness determined daily as the number of degrees the average temperature during the day in question is below 65 degrees Fahrenheit. Degree days for a particular period are determined by adding the degree days incurred during each day of the period. Normal degree days for a particular period are the average of degree days during the prior 15 years for SEMCO and during the prior 30 years for Washington Gas. A positive number indicates that weather is colder than normal and a negative number indicates that weather is warmer than normal.

4. In certain of Washington Gas' jurisdictions (Virginia and Maryland) there are billing mechanisms in place which are designed to eliminate the effects of variance in customer usage caused by weather and other factors such as conservation. In D.C., there is no weather normalization billing mechanism nor does Washington Gas hedge to offset the effects of weather. As a result, colder or warmer weather will result in variances to financial results.

5. The -100 percent degree day variance for Washington Gas in the third quarter of 2025 is a result of there being 12 normal degree days in the third quarter of any given year, compared to nil actual degree days in the third quarter of 2025. Given that the normal degree days in the third quarter are so low compared to other quarters, any change causes a large variance when shown as a percentage.

Normalized EBITDA in the Utilities segment was $66 million in the third quarter of 2026, compared to $68 million in the same quarter of 2025. The decrease in normalized EBITDA was mainly due to higher operating and administrative expenses, partially offset by higher revenue associated with ARP investments and increased asset optimization activities at Washington Gas.

The Utilities segment loss before income taxes was $28 million in the third quarter of 2026, compared to $20 million in the same quarter of 2025. The increase in loss was mainly due to higher depreciation and amortization expense, partially offset by lower unrealized losses on risk management contracts.

The Utilities segment reported normalized EBITDA of $763 million in the first nine months of 2026, compared to

$703 million in the same period in 2025. The increase in normalized EBITDA was mainly due to the positive net impact of the 2024 D.C. and 2025 Virginia rate cases, the gain on partial settlement of Washington Gas' post-retirement benefit plan in the first quarter of 2026, higher revenue associated with ARP investments, increased asset optimization activities at Washington Gas, colder weather in D.C. where AltaGas does not have weather normalization, and customer growth. These factors were partially offset by higher operating and administrative expenses, lower contributions from WGL's retail business, and the impact of the lower average U.S./Canadian dollar exchange rate.

The Utilities segment income before income taxes was $463 million in the first nine months of 2026, compared to

$521 million in the same period in 2025. The decrease was mainly due to unrealized losses on risk management

contracts compared to unrealized gains in the same period in 2025 and higher depreciation and amortization expense, partially offset by the same previously referenced factors impacting normalized EBITDA and lower transition and restructuring costs.

In D.C., D.C. Law 24-177 requires the Mayor to issue final regulations by December 31, 2026 that require all new construction or substantial improvements of commercial buildings (buildings with more than three stories) to be constructed to a net-zero-energy standard, which is defined to prohibit on-site fuel combustion. On October 17, 2024, Washington Gas, joined by co-plaintiffs, filed suit in the U.S. District Court for the District of Columbia challenging the legality of this law. On March 26, 2026, the District Court issued an opinion concluding that the

D.C. law is not preempted by the federal Energy Policy and Conservation Act ("EPCA"). On April 14, 2026, plaintiffs filed a Notice of Appeal to the District of Columbia Circuit Court of Appeals. A hearing was held on September 8, 2026 and a decision is pending.

In Montgomery County, Maryland, Bill 13-22 will require regulations that establish all-electric building standards for all new construction (with limited exceptions) by December 31, 2026. On October 17, 2024, Washington Gas, joined by co-plaintiffs, filed suit in the U.S. District Court for the District of Maryland challenging the legality of this bill. On March 25, 2026, the District Court issued an opinion that the Montgomery County law is not preempted by the federal EPCA. On April 14, 2026, plaintiffs filed a Notice of Appeal to the Fourth Circuit Court of Appeals. A hearing is scheduled for the week of December 8, 2026.

In the State of Maryland, the Maryland Department of Environment promulgated final Building Energy Performance Standards ("BEPS") regulations that will impose carbon dioxide reduction requirements (that will eventually reach zero) for certain covered buildings, effective December 23, 2024. On January 17, 2025, Washington Gas and co-plaintiffs filed suit in the U.S. District Court for the District of Maryland challenging the legality of the regulations. On March 31, 2026, the District Court issued an opinion that the Maryland BEPS are not preempted by federal EPCA. On April 29, 2026, plaintiffs filed a Notice of Appeal to the Fourth Circuit Court of Appeals. A hearing is scheduled for the week of December 8, 2026.

On February 25, 2025, Montgomery County adopted BEPS that restrict and penalize gas appliances in new and existing buildings through a series of declining site energy use intensity limits for covered buildings. On March 27, 2025, Washington Gas and co-plaintiffs filed suit in the U.S. District Court for the District of Maryland challenging the legality of the regulations. The case is stayed pending the outcome of the Maryland BEPS case.

1. Average for the period.

2. NGL volumes refer to propane, butane, and condensate.

3. Fractionation volumes include NGL mix volumes processed.

4. Realized frac spread or NGL margin, expressed in dollars per barrel of NGL, is derived from sales recorded by the segment during the period for frac spread exposed volumes plus the settlement value of frac hedges settled in the period less extraction premiums, divided by the total frac exposed volumes produced during the period.

5. Average spot frac spread or NGL margin, expressed in dollars per barrel of NGL, is indicative of the average sales price that AltaGas receives for propane, butane, and condensate less extraction premiums, before accounting for hedges, divided by the respective frac spread exposed volumes for the period.

6. Average propane price spread between FEI and Mont Belvieu TET commercial index.

7. Average butane price spread between FEI and Mont Belvieu TET commercial index.

The Midstream segment reported normalized EBITDA of $337 million in the third quarter of 2026, compared to

$204 million in the same quarter of 2025. The increase in normalized EBITDA was primarily due to stronger performance from the global exports business, primarily due to higher export margins and higher tolling volumes. Normalized EBITDA in the Midstream segment also benefited from contributions from Pipestone II, which was placed into service in December 2025, and stronger contributions from the fractionation and liquids handling business supported by improved marketing margins. These factors were partially offset by higher operating and administrative expenses, including higher employee incentive compensation expense, lower earnings at the extraction facilities due to lower realized frac spreads, and lower storage revenue.

Income before income taxes in the Midstream segment was $174 million in the third quarter of 2026, compared to

$128 million in the same quarter of 2025. The increase was mainly due to the same previously referenced factors impacting normalized EBITDA and lower transaction costs related to acquisitions and dispositions, partially offset by higher unrealized losses on risk management contracts and higher depreciation and amortization expense.

The Midstream segment reported normalized EBITDA of $895 million in the first nine months of 2026, compared to $616 million in the same period in 2025. The increase in normalized EBITDA was primarily due to stronger performance from the global exports business as a result of higher export margins and increased tolling volumes. Normalized EBITDA in the Midstream segment also benefited from contributions from Pipestone II, which was placed into service in December 2025, and stronger contributions from the fractionation and liquids handling business supported by improved marketing margins and higher volumes from the NEBC processing facilities.

These factors were partially offset by higher operating and administrative expenses, including higher employee incentive compensation expense, primarily as a result of AltaGas' rising share price, as well as lower earnings at the extraction facilities due to lower realized frac spreads and lower fractionation revenue at Harmattan mainly due to a planned turnaround in the second quarter of 2026.

Income before income taxes in the Midstream segment was $572 million in the first nine months of 2026, compared to $595 million in the same period in 2025. The decrease was mainly due to unrealized losses on risk management contracts compared to unrealized gains in the same period in 2025, and higher depreciation and amortization expense, partially offset by the same previously referenced factors impacting normalized EBITDA and lower transaction costs related to acquisitions and dispositions.

1. Excludes basis differential.

In the Corporate/Other segment, normalized EBITDA for the third quarter of 2026 was a loss of $14 million, compared to a loss of $4 million in the same quarter of 2025. The decrease in normalized EBITDA was mainly due to higher employee incentive compensation expense and increased spend on digital projects.

Loss before income taxes in the Corporate/Other segment was $176 million in the third quarter of 2026, compared to $128 million in the same quarter of 2025. The increased loss was mainly due to higher unrealized losses on risk management contracts, the same previously referenced factors impacting normalized EBITDA, higher foreign exchange losses, and higher interest expense.

In the Corporate/Other segment, normalized EBITDA for the first nine months of 2026 was a loss of $60 million, compared to a loss of $20 million in the same period in 2025. The decrease in normalized EBITDA was mainly due to higher employee incentive compensation expense, primarily as a result of AltaGas' rising share price in 2026, as well as increased spend on digital projects.

Loss before income taxes in the Corporate/Other segment was $475 million in the first nine months of 2026, compared to $397 million in the same period in 2025. The higher loss was due to the same previously referenced factors impacting normalized EBITDA, higher unrealized losses on risk management contracts, higher interest expense, higher transition and restructuring costs, and higher foreign exchange losses, partially offset by lower depreciation and amortization expense.

Invested capital and net invested capital are non-GAAP financial measures. Please refer to the Non-GAAP Financial Measures section of this MD&A for further discussion.

During the third quarter of 2026, AltaGas' invested capital was $546 million, compared to $388 million in the same quarter of 2025. The increase in invested capital was primarily due to higher spend within the Utilities segment as a result of higher investment in system betterment programs at WGL and SEMCO, as well as increased ARP spend at WGL, partially offset by lower general plant expenditures at WGL. In the Midstream segment, lower capital spend was primarily related to a decrease in growth capital spend and maintenance capital spend. The decrease in capital expenditures was primarily due to lower spend at REEF, Pipestone I, and Pipestone II, which was placed into service in December 2025, and Ferndale, partially offset by increased spend related to the Dimsdale Phase I and Phase II expansions and REEF Optimization I. Additions to intangible assets increased across all segments, reflecting continued investment in digital projects.

Invested capital in the third quarter of 2026 included maintenance capital of $24 million (2025 - $29 million) in the Midstream segment and $2 million (2025 - $3 million) related to Blythe in the Corporate/Other segment. The decrease in Midstream maintenance capital in the third quarter of 2026 was primarily due to the absence of a planned turnaround at Pipestone I in the third quarter of 2025, partially offset by a planned turnaround at Younger and higher maintenance capital spend at Harmattan.

During the third quarter of 2026, AltaGas' cash used in investing activities was $519 million compared to $425 million in the same quarter of 2025. Please refer to the Non-GAAP Financial Measures and Liquidity sections of this MD&A for further information on AltaGas' cash flow from investing activities.

In the first nine months of 2026, AltaGas' invested capital was $1,241 million, compared to $970 million in the same period in 2025. The increase in invested capital was primarily driven by higher investment in Utilities system betterment programs at WGL and SEMCO, increased ARP spend at WGL, and higher IRIP and MRP investment at SEMCO, partially offset by lower general plant expenditures at SEMCO. In the Midstream segment, the increase in capital spend was primarily related to higher additions to long-term investments as a result of capital cash calls related to certain growth capital projects and higher maintenance capital spend, partially offset by a decrease in growth capital spend. The decrease in growth capital spend was primarily attributable to lower spend at REEF, Pipestone II, which was placed into service in December 2025, Ferndale, and several NEBC projects, partially offset by higher growth capital investment related to the Dimsdale Phase I and Phase II expansions, REEF Optimization I, the RIPET methanol removal project, as well as the NEBC liquids expansion project. In the Corporate/Other segment, the decrease in capital expenditures was primarily attributable to the completion of the Calgary office relocation in the second quarter of 2025. Across all segments, additions to intangible assets increased primarily due to continued investment in digital initiatives.

Invested capital in the first nine months of 2026 included maintenance capital of $66 million (2025 - $57 million) in the Midstream segment and $5 million (2025 - $4 million) related to Blythe in the Corporate/Other segment. The increase in Midstream maintenance capital in the first nine months of 2026 was primarily due to a planned turnaround at Harmattan in the second quarter of 2026, a planned turnaround at Younger in the third quarter of 2026, and higher maintenance capital spend at Harmattan, Ferndale, and Younger, partially offset by the absence of planned turnarounds that were present at Pipestone I, RIPET, Townsend, and several NEBC facilities in the first nine months of 2025, as well as lower maintenance capital spend at Pipestone I in 2026.

During the first nine months of 2026, AltaGas' cash used in investing activities was $1,408 million, compared to

$1,134 million in the first nine months of 2025. Please refer to the Non-GAAP Financial Measures and Liquidity sections of this MD&A for further information on AltaGas' cash flow from investing activities.

As a result of certain commitments made to the PSC of D.C., the PSC of MD, and the SCC of VA in respect of the acquisition of WGL Holdings, Inc. (the "WGL Acquisition"), Washington Gas is subject to certain restrictions when paying dividends to AltaGas. However, AltaGas does not expect that this will have an impact on AltaGas' ability to meet its obligations.

In addition, Wrangler SPE LLC and Washington Gas made certain ring fencing commitments to the PSC of D.C., the PSC of MD, and the SCC of VA with the intention of removing Washington Gas from the bankruptcy estate of AltaGas and its affiliates, other than Washington Gas and Wrangler SPE LLC (together, the "Ring Fenced Entities"). Because of these ring fencing measures, none of the assets of the Ring Fenced Entities would be available to satisfy the debt or contractual obligations of AltaGas or any non-Ring Fenced Entity Affiliate, including any indebtedness or other contractual obligations of AltaGas, and the Ring Fenced Entities do not bear any liability for indebtedness or other contractual obligations of any non-Ring Fenced Entity, and vice versa.

AltaGas expects to fund its obligations through internally generated cash flow and normal course borrowings on existing committed credit facilities.

Cash from operations increased by $160 million for the nine months ended September 30, 2026 compared to the same period in 2025, primarily due to higher net income after taxes (after adjusting for non-cash items), partially offset by unfavourable variances in the net change in operating assets and liabilities. The unfavourable variance in operating assets and liabilities was mainly driven by a smaller decrease in accounts receivable compared to the prior year, higher cash outflows related to net regulatory balances, and higher cash outflows related to risk management contracts and inventory. These impacts were partially offset by higher cash inflows from accounts payable and accrued liabilities, mainly due to commodity price fluctuations and increased export activity in the Midstream segment.

1. Calculated as current assets divided by current liabilities.

The increase in the working capital ratio was primarily due to decreases in short-term debt, regulatory liabilities, the current portion of long-term debt, and other current liabilities, as well as increases in cash and cash equivalents, inventory, risk management assets, and regulatory assets. This was partially offset by increases in accounts payable and accrued liabilities and risk management liabilities, as well as decreases in accounts receivable and prepaid expenses and other current assets. AltaGas' working capital will fluctuate in the normal course of business, and the Company expects to continue to meet its payment obligations as they become due.

Cash used in investing activities for the nine months ended September 30, 2026 was $1.4 billion, compared to $1.1 billion in the same period in 2025. Investing activities for the nine months ended September 30, 2026 included expenditures of $1.4 billion for property, plant and equipment and intangible assets, as well as $19 million of contributions to equity investments, partially offset by $2 million of proceeds from the disposition of equity investments. Investing activities for the nine months ended September 30, 2025 included expenditures of

$1.1 billion for property, plant and equipment and intangible assets, as well as $5 million of contributions to equity investments.

Cash from financing activities for the nine months ended September 30, 2026 was $341 million, compared to $139 million in the same period in 2025. Financing activities for the nine months ended September 30, 2026 included long-term debt issuances (net of debt issuance costs) of $1.0 billion, contributions from non-controlling interests of $200 million, and net proceeds from common shares issued on the exercise of options granted pursuant to AltaGas' share option plan ("Share Options") of $15 million, partially offset by repayments of long-term debt and finance lease liabilities of $417 million, dividends of $322 million, net repayments under credit facilities of $166 million, and distributions to non-controlling interests of $13 million. Financing activities for the nine months ended September 30, 2025 primarily consisted of net borrowings under credit facilities of $886 million, contributions from non-controlling interests of $280 million, the issuance of subordinated hybrid notes (net of debt issuance costs) of $198 million, long-term debt issuances (net of debt issuance costs) of $136 million, and net proceeds

from common shares issued on the exercise of Share Options of $30 million, partially offset by repayments of long-term debt and finance lease liabilities of $880 million, dividends of $298 million, the redemption of preferred shares of $200 million, and distributions to non-controlling interests of $13 million.

AltaGas' objective for managing capital is to maintain investment grade credit ratings, ensure adequate liquidity, optimize the profitability of its existing assets and grow its energy infrastructure to create long-term value and enhance returns for its investors. AltaGas' capital structure is comprised of shareholders' equity (including non-controlling interests), short-term and long-term debt (including the current portion), finance lease liabilities (including the current portion), and subordinated hybrid notes, less cash and cash equivalents.

The use of debt or equity funding is based on AltaGas' capital structure, which is determined by considering the norms and risks associated with operations and cash flow stability and sustainability.

As at September 30, 2026, AltaGas' total debt primarily consisted of outstanding medium term notes ("MTNs") of

$3.0 billion (December 31, 2025 - $3.4 billion), WGL and Washington Gas MTNs and private placement notes of

$3.7 billion (December 31, 2025 - $3.3 billion), reflecting fair value adjustments on acquisition, SEMCO First Mortgage Bonds of $685 million (December 31, 2025 - $406 million), $2.2 billion of subordinated hybrid notes (December 31, 2025 - $2.2 billion), $950 million drawn under the bank credit facilities (December 31, 2025 - $386 million), and commercial paper of $14 million outstanding for WGL and Washington Gas (December 31, 2025 -

$231 million). In addition, AltaGas had $214 million of letters of credit outstanding (December 31, 2025 - $185 million).

As at September 30, 2026, AltaGas' total market capitalization was approximately $16.3 billion based on approximately 312 million common shares outstanding and a closing trading price of $52.26 per common share.

AltaGas' earnings interest coverage for the rolling twelve months ended September 30, 2026 was 2.5 times (twelve months ended September 30, 2025 - 2.7 times).

1. Amount drawn at September 30, 2026 converted at the month-end rate of 1 U.S. dollar = 1.4188 Canadian dollar (December 31, 2025 - 1 U.S. dollar = 1.3706 Canadian dollar).

2. All US$ borrowing capacity was converted at the September 30, 2026 U.S./Canadian dollar month-end exchange rate.

3. Amounts drawn include commercial paper that is supported by the long term facilities. WGL and Washington Gas have the right to request additional borrowings of up to US$100 million and US$150 million respectively, with the bank's approval, for a total of US$400 million and US$600 million on their respective facilities.

In addition to the facilities listed above, AltaGas has demand letter of credit facilities of $607 million (December 31, 2025 - $441 million), which includes a $150 million facility entered into during the third quarter of 2026. As at September 30, 2026, there were letters of credit for $213 million (December 31, 2025 - $184 million) issued on these facilities and less than $1 million (December 31, 2025 - less than $1 million) issued on the Company's revolving credit facilities.

WGL and Washington Gas use short-term debt in the form of commercial paper or unsecured short-term bank loans to fund seasonal cash requirements. Revolving committed credit facilities are maintained in an amount equal to or greater than the expected maximum commercial paper position.

All of the borrowing facilities have covenants customary for these types of facilities, which must be met at each quarter end. AltaGas and its subsidiaries have been in compliance with all financial covenants each quarter since the establishment of the facilities. AltaGas and its subsidiaries are also in compliance with trust indenture requirements for its MTNs as at September 30, 2026 and December 31, 2025.

On October 1, 2026, AltaGas Services (U.S.) Inc., a wholly-owned subsidiary of AltaGas, issued US$750 million of Senior Notes due 2031. Proceeds are being used for general corporate purposes, including repayment of existing credit facility indebtedness. Effective October 2, 2026, AltaGas Services (U.S.) Inc. was merged into AltaGas Services (U.S.) LLC.

The following table summarizes the Corporation's primary financial covenants as defined by the credit facility agreements:

1. Calculated in accordance with the Corporation's $2.3 billion credit facility agreement, which is available on SEDAR+ at https://www.sedarplus.ca. The covenants are equivalent and applicable to all the Corporation's committed credit facilities.

2. Estimated, subject to final adjustments.

3. Bank EBITDA-to-interest expense (SEMCO Energy) and Bank debt-to-capitalization (SEMCO Energy) are calculated based on SEMCO Energy's consolidated financial statements and are calculated similarly to bank debt-to-capitalization and bank EBITDA-to-interest expense.

4. WGL's bank debt-to-capitalization ratio is calculated based on WGL's consolidated financial statements.

5. Washington Gas' bank debt-to-capitalization ratio is calculated based on Washington Gas' financial statements.

On March 12, 2025, a short form base shelf prospectus for the issuance of certain types of future public debt and/ or equity issuances was filed to replace the short form base shelf prospectus dated March 31, 2023. This enables AltaGas to access the Canadian capital markets on a timely basis during the 25-month period that the short form base shelf prospectus remains effective.

In the normal course of business, AltaGas transacts with its subsidiaries, affiliates, and joint ventures. There were no significant changes in the nature of the related party transactions described in Note 28 of the 2025 Annual Consolidated Financial Statements.

The businesses of AltaGas are operated by the Company and a number of its subsidiaries, which, as of September 30, 2026, included, without limitation, AltaGas Services (U.S.) Inc., AltaGas Utility Holdings (U.S.) Inc., WGL Holdings, Inc., Wrangler 1 LLC, Wrangler SPE LLC, WGL Energy Services, Inc., and SEMCO Holding Corporation; in regard to the Utilities business, Washington Gas Light Company, Hampshire Gas Company, and SEMCO Energy, Inc.; and in regard to the Midstream business, AltaGas Extraction and Transmission Limited Partnership, AltaGas Pipeline Partnership, AltaGas Northwest Processing Limited Partnership, Harmattan Gas Processing Limited Partnership, Ridley Island LPG Export Limited Partnership, Ridley Island Energy Export Facility Limited Partnership, AltaGas LPG Limited Partnership, Petrogas Energy Partnership, and Petrogas, Inc. In the Corporate/Other segment the main subsidiary is Blythe Energy Inc., following the merger of AltaGas Power Holdings (U.S.) Inc. into Blythe Energy Inc. SEMCO Energy, Inc. conducts its Michigan natural gas distribution business under the name SEMCO Energy Gas Company ("SEMCO"). Effective October 2, 2026, AltaGas Services (U.S.) Inc. was merged into AltaGas Services (U.S.) LLC.

AltaGas is subject to a variety of risks which could have a material impact on the financial results and operations of the Company. Shareholders and prospective investors should carefully evaluate risk factors noted by the Company before investing in the Company's securities, as each of these risks may negatively affect the trading price of the Company's securities, the amount of dividends paid to shareholders and the ability of the Company to fund its debt obligations, including debt obligations under its outstanding notes and any other debt securities that the Company may issue from time to time. For discussion of the risks and trends that could materially affect the Company's performance please refer to AltaGas' 2025 Annual Information Form, which is available on SEDAR+ at https://www.sedarplus.ca.

AltaGas is exposed to various market risks in the normal course of operations that could impact earnings and cash flows. AltaGas enters into physical and financial derivative contracts to manage exposure to fluctuations in commodity prices, foreign exchange rates, and interest rates, as well as to optimize certain owned and managed natural gas assets. These contracts do not eliminate AltaGas' exposure to risk associated with fluctuations in commodity prices, foreign exchange rates, or interest rates. The Board of Directors of AltaGas has established a risk management policy for the Corporation establishing AltaGas' risk management control framework. Derivative instruments are governed under, and subject to, this policy. As at September 30, 2026 and December 31, 2025, the fair values of the Corporation's derivatives were as follows:

AltaGas strives to continuously and systematically de-risk the business in order to drive predictable and durable returns and maximize long-term value for stakeholders. For Midstream, this includes striving to match financial hedges with physical volumes, and for Utilities, this includes purchasing physical gas throughout the year to help shield customers from major cost spikes during peak winter demand. AltaGas may also enter into foreign exchange derivatives and cross-currency swaps to manage the risk associated with variations in foreign exchange rates, as well as interest rate swaps to manage exposure to interest rate fluctuations.

The average indicative spot NGL frac spread for the nine months ended September 30, 2026 was approximately

$23/Bbl (2025 - $27/Bbl), inclusive of basis differentials. The average NGL frac spread realized by AltaGas (based on average spot price and realized hedge price inclusive of basis differentials) for the nine months ended September 30, 2026 was approximately $15/Bbl, inclusive of basis differentials (2025 - $25/Bbl).

AltaGas continues to focus on de-risking its business and managing direct commodity price exposure to drive predictable and durable results. While the Company has exposure, it maintains an active hedging program that proactively hedges commodity price and spread risk to mitigate the impact of fluctuations in margins and cash flows. For the remainder of 2026, AltaGas has hedged approximately:

• 91 percent of its remaining 2026 expected global export volumes through a combination of tolls and financial hedges, with the average FEI to North American financial hedge price of US$23/Bbl for non-tolled propane and butane volumes. Tolling volumes remain in-line with previously disclosed levels of approximately 60 percent of export volumes.

• 86 percent of its 2026 expected frac exposed volumes hedged at US$24/Bbl, prior to transportation costs.

• Materially all of AltaGas' expected Baltic freight exposure is protected through time charters, financial hedges, and tolled volumes in 2026.

The following foreign exchange related contracts were outstanding as at September 30, 2026:

The following foreign exchange related contracts were outstanding as at December 31, 2025:

The following is a summary of gains (losses) on foreign exchange contracts recognized in net income:

1. Recorded in the Consolidated Statements of Income (Loss) under the line item "foreign exchange losses".

2. Recorded in the Consolidated Statements of Income (Loss) under the line item "revenue".

For the three and nine months ended September 30, 2026, after-tax losses of $13 million and after-tax gains of $9 million, respectively (three and nine months ended September 30, 2025 - after-tax gains of $29 million and after-tax losses of $5 million, respectively) related to the cross-currency swaps were recorded in AOCI.

In September 2026, AltaGas entered into U.S. Treasury yield locks to hedge the benchmark U.S. Treasury yield component of interest payments on a forecasted issuance of U.S. dollar-denominated senior notes. The yield locks were designated as cash flow hedges. For the three and nine months ended September 30, 2026, an after-tax loss of $1 million was recorded in AOCI related to the yield locks.

For the three and nine months ended September 30, 2026, pre-tax gains of $3 million and $14 million, respectively (three and nine months ended September 30, 2025 - $nil) were recorded related to heating degree day ("HDD") and cooling degree day ("CDD") instruments.