AltaGas (ALA) Q4 2024 earnings summary

Executive summary

• Achieved strong Q4 and full-year 2024 results, with normalized EBITDA of $1,769M (up 12% year-over-year) and normalized EPS of $2.18 (up 15% year-over-year), both at the upper end of guidance.

• Record global export volumes exceeded 122,000 bbls/d, with robust growth in Utilities and Midstream segments.

• Advanced major midstream growth projects (REEF and Pipestone II), both on time and on budget, with key milestones achieved.

• Adjusted net debt reduced by ~$0.5B year-over-year; leverage ratio improved, on track for long-term targets.

• Announced a 6% increase in 2025 annual dividend to $1.26/share and extended 5–7% CAGR dividend growth guidance to 2029.

Financial highlights

• Q4 2024 normalized EBITDA: $520M (up 4% year-over-year); full-year: $1,769M (up 12% year-over-year).

• Q4 normalized EPS: $0.76 (flat year-over-year); full-year: $2.18 (up 15% year-over-year).

• Utilities Q4 normalized EBITDA: $336M (up 8% year-over-year); full-year: $1,012M (up 14%).

• Midstream Q4 normalized EBITDA: $182M (flat year-over-year); full-year: $785M (up 15%).

• Global Exports shipped over 122,000 barrels/day of LPGs to Asia in Q4, up 34% year-over-year.

Outlook and guidance

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

• 2025 capital budget: $1.4B, with largest allocations to Utilities modernization, REEF, and Pipestone II.

• Plans to fund 2025 capital through internal cash flow, asset recycling, and potential asset sales, including MVP divestiture.

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

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