AltaGas (ALA) Investor Presentation summary

Strategic focus and business model

• Operates a diversified energy infrastructure platform with two core businesses: Utilities and Midstream, providing stable, growing value through long-life assets and efficient market connections.

• Strategic priorities include optimizing assets, de-risking through commercial contracts and hedging, deleveraging the balance sheet, advancing key growth projects, and compounding long-term per share value.

• Since 2019, over $8B in non-core asset divestitures and $1.7B in acquisitions have repositioned the business, with $4B in organic growth capital deployed.

• Focus on increasing contracted cashflows, reducing commodity exposure, and delivering a low-risk business model, with contracted EBITDA rising from 70% in 2020 to a target of 90%.

• Execution has driven a 14% normalized EPS CAGR and 9% normalized EBITDA CAGR (2018–2025E), halving leverage and delivering >20% TSR CAGR since 2019.

Financial performance and guidance

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

• 2025 dividend set at $1.26/share, a 6% increase, with a 5–7% annual dividend CAGR expected through 2029 and a 50–60% payout ratio.

• 2025 capital budget of $1.4B, with 51% allocated to Utilities and 45% to Midstream, focusing on REEF, Pipestone II, and modernization programs.

• On track to reach long-term leverage targets of 4.65x (including hybrids/prefs) and 4.0x (excluding hybrids/prefs) adjusted net debt to normalized EBITDA in 2025.

• Active hedging program targets minimum 80% hedged commodity and freight exposure for Midstream cashflow stability.

Utilities segment

• Serves ~1.6 million customers, with population growth ~40% above the national average and a $5.4B regulated rate base growing at ~9% CAGR since 2019.

• Strategic focus on improving returns, investing in modernization, expanding system reliability, and advancing RNG projects.

• Modernization programs represent $1.3B in investment over four years, driving safety, reliability, and emissions benefits.

• New meter growth exceeds 1% per year, with over 12,000 new meters added in 2024 and strong 2025 momentum.

• Actively advocating for energy choice and customer rights, with high customer satisfaction rankings.