AltaGas (ALA) investor relations material

Executive summary

• Achieved record Q2 2026 results with normalized EBITDA of $391 million (up 14% year-over-year) and normalized EPS of $0.31 (up 15% year-over-year), driven by strong Midstream and Utilities performance and record LPG exports.

• Raised 2026 normalized EBITDA guidance by 4% to $2.0–$2.1 billion and normalized EPS by 6% to $2.35–$2.60 per share.

• Advanced major growth projects, including REEF (85% complete) and NEBC Liquids Expansion, with new FIDs supporting future export capacity.

• Maintained a strong balance sheet with leverage at 4.4x, below the target range, and continued disciplined capital allocation.

• Focused on long-term partnerships, infrastructure modernization, and risk management through hedging and market diversification.

Financial highlights

• Q2 2026 normalized EBITDA reached $391 million, up 14% year-over-year; normalized EPS was $0.31, up 15%; net income before taxes was $383 million, up from $226 million.

• Utility segment Q2 normalized EBITDA was $142 million, up 6% year-over-year, driven by modernization investments and new rates.

• Midstream segment Q2 normalized EBITDA was $285 million, up 33% year-over-year, led by record LPG exports and strong merchant margins.

• Normalized net income reached $97 million, up from $81 million in Q2 2025; cash from operations was $490 million, up from $365 million.

• Five-year EPS CAGR increased to 8% and EBITDA CAGR to 7%.

Outlook and guidance

• 2026 normalized EBITDA guidance raised to $2.0–$2.1 billion (4% increase); normalized EPS guidance raised to $2.35–$2.60 (6% increase).

• 2026 capital budget increased to $1.8 billion, with 61% allocated to Utilities and 36% to Midstream.

• Long-term rate base growth in Utilities expected at 8% through 2030; 10% rate base growth in 2026.

• Targeting 5–7% average annual normalized EBITDA and EPS CAGR between 2024–2030; dividend payout ratio targeted at 50–60% of EPS.

• Capital allocation priorities remain focused on maintenance, modernization, and advancing key growth projects.