AltaGas (ALA) Investor Presentation summary

Strategic priorities and business model

• Focus on growing, de-risking, and strengthening the enterprise through asset optimization, commercial contracting, and balance sheet deleveraging.

• Significant progress in reducing commodity exposure, with 90% of 2025E normalized EBITDA expected from contracted or regulated sources.

• Disciplined capital allocation and sustainable dividend growth, targeting a 5-7% annual dividend CAGR through 2029.

• Continued investment in modernization, customer growth, and major projects like REEF and Pipestone II.

• Active advocacy for energy choice and regulatory engagement to support long-term value creation.

Financial performance and guidance

• Normalized EPS grew at a 14% CAGR and normalized EBITDA at a 9% CAGR from 2018 to 2025E.

• 2025 financial guidance: normalized EBITDA of $1,775–$1,875 million and normalized EPS of $2.10–$2.30.

• 2025 capital budget set at $1.4 billion, with major allocations to REEF, Pipestone II, and utilities modernization.

• Dividend per share to increase 6% in 2025, maintaining a 50-60% payout ratio.

• On track to reach long-term leverage targets of 4.65x and 4.0x adjusted net debt to normalized EBITDA in 2025.

Utilities platform and growth

• Utilities serve ~1.6 million customers, with service territories growing 40% faster than the national average.

• Modernization programs and new meter growth drive visible, low-risk expansion.

• Large pipeline replacement backlog and $1.3 billion in system modernization planned over four years.

• Focus on improving returns at WGL, closing the ROE gap, and advancing RNG projects.

• Data center growth in Northern Virginia presents new demand and system expansion opportunities.