AltaGas (ALA) Q1 2025 earnings summary

Executive summary

• Delivered strong Q1 2025 results with normalized EBITDA of $689 million, up 4% year-over-year, and normalized EPS of $1.15, slightly above last year, driven by Utilities and Midstream performance, favorable weather, and cost management.

• Utilities segment drove growth with 15% higher normalized EBITDA, offsetting lower Midstream contribution, aided by modernization investments, customer growth, and O&M reductions.

• Achieved record Q1 LPG export volumes to Asia at over 119,000 barrels per day, up 13% year-over-year, exceeding 2027 tolling targets with new long-term contracts.

• Advanced major midstream growth projects (REEF and Pipestone II) on schedule and budget, with significant construction milestones achieved.

• Maintained focus on de-risking, with 85% of normalized EBITDA from cost-of-service, take-or-pay, and fee-for-service contracts, targeting 90% by 2027.

Financial highlights

• Revenue rose to $3,969 million in Q1 2025 from $3,655 million in Q1 2024.

• Utilities segment delivered normalized EBITDA of $501 million, up 15% year-over-year, driven by colder weather, cost management, and modernization investments.

• Midstream segment normalized EBITDA was $197 million, down from $247 million last year due to lower export margins, higher tolled volumes, and absence of prior one-time items.

• Normalized net income was $342 million ($1.15 per share), up from $338 million ($1.14 per share).

• Cash from operations was $627 million, up from $557 million.

Outlook and guidance

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

• 2025 capital deployment of ~$1.4 billion, with 51% to Utilities and 45% to Midstream.

• Dividend growth guidance of 5–7% CAGR through 2029 maintained.

• Utilities expected to contribute ~55% and Midstream ~45% of 2025 normalized EBITDA.

• Active hedging program in place, with 89% of 2025 expected global export volumes hedged or tolled.