AltaGas (ALA) investor relations material

Executive summary

• Achieved record Q1 normalized EBITDA of CAD 818 million (up 19% year-over-year) and normalized EPS of CAD 1.33, driven by higher global export volumes, improved margins, new Utilities rates, and asset optimization.

• Both midstream and utilities segments delivered strong performance, benefiting from constructive energy fundamentals, colder-than-normal weather, and asset optimization.

• Exported nearly 125,000 barrels/day of LPGs to Asia, a 5% increase year-over-year, with 20 VLGCs delivered.

• Strategic growth projects advanced, including REEF Phase I (75% complete), Dimsdale expansions, Keweenaw Connector Pipeline, and new data center connection agreements.

• Anticipates 2026 results at the top end of guidance, with potential to exceed if LPG export market strength continues.

Financial highlights

• Q1 normalized EBITDA of CAD 818 million, up 19% year-over-year, setting a new quarterly record.

• Utilities segment delivered normalized EBITDA of CAD 555 million, up 11% year-over-year, driven by positive rate cases, modernization investments, and pension plan settlement.

• Midstream segment delivered normalized EBITDA of CAD 273 million, up 39% year-over-year, led by export platform growth, strong merchant margins, and Pipestone II.

• Revenue was CAD 3,970 million, flat year-over-year; normalized net income was CAD 415 million, up from CAD 342 million.

• Leverage ratio improved to 4.4x, down from 4.7x at year-end, below the 4.5-5x target range.

Outlook and guidance

• 2026 normalized EBITDA guidance: CAD 1.925–2.025 billion; normalized EPS guidance: CAD 2.20–2.45.

• 2026 results expected at the top end of guidance, with upside if LPG export spreads remain elevated.

• Increased 2026 capital budget to CAD 1.7 billion, primarily due to Dimsdale Phase II and vendor milestone payments, with 65% allocated to Utilities and 31% to Midstream.

• Long-term earnings and dividend growth outlook of 5%-7% per year, supported by low-risk, cost-of-service and take-or-pay cash flows.

• Expect leverage to return to 4.5-5x range by year-end 2026 due to increased capital spending and seasonality.