First Half of 2023 Results in Line with Expectations; Second
Quarter Negatively Impacted by Wildfires and Hedge and Ship Timing
Impacts; Reiterating 2023 Full-year Guidance
CALGARY,
AB, July 28, 2023 /CNW/ - AltaGas Ltd.
("AltaGas" or the "Company") (TSX: ALA) today reported second
quarter 2023 financial results and provided an update on the
Company's operations and other corporate developments.
HIGHLIGHTS
(all financial figures are unaudited and in Canadian dollars
unless otherwise noted)
- Normalized EPS1 was $0.06 in the second quarter of 2023 compared to
$0.14 in the second quarter of 2022,
while GAAP EPS2 was $0.47
in the second quarter of 2023 compared $0.12 in the second quarter of 2022. Results were
inclusive of approximately $7 million
of wildfire impacts and approximately $12
million of negative hedge and ship timing impacts. These
combined factors reduced normalized EPS by an approximately
$0.05 in the second quarter of 2023,
with the hedge and ship timing normalized EPS impact of
approximately $0.03 expected to
reverse in the coming quarters.
- Normalized EBITDA1 was $239
million in the second quarter of 2023 compared to
$276 million in the second quarter of
2022, while income before income taxes was $182 million in the second quarter of 2023
compared to $85 million in the second
quarter of 2022. Results were inclusive of the wildfire, hedge, and
ship timing impacts previously mentioned, with the approximate
$12 million hedge and ship timing
impacts expected to reverse in the coming quarters.
- Normalized FFO per share1 was $0.53 in the second quarter of 2023 compared to
$0.71 in the second quarter of 2022,
while Cash from Operations per share3 was $1.32 in the second quarter of 2023 compared to
$1.88 in the second quarter of 2022.
The decrease in normalized FFO per share was mainly due to lower
normalized EBITDA and higher interest expense, including hybrid
debt which replaced previous preferred shares. Results were
inclusive of the wildfire, hedge, and ship timing impacts with the
combined factors having a $0.07
negative normalized FFO per share impact in the second quarter of
2023, with the hedge and ship timing impacts of approximate
$0.04 normalized FFO per share
expected to reverse in the coming quarters.
- The Utilities segment reported normalized EBITDA of
$102 million in the second quarter of
2023 compared to $116 million in the
second quarter of 2022, while income before taxes was $105 million in the second quarter of 2023
compared to a loss before income taxes of $9
million in the same quarter of 2022. The largest driver of
the year-over-year variances was the lack of contribution from the
Alaskan Utilities during the second of quarter of 2023, which had
contributed $15 million in the second
quarter of 2022 and was subsequently divested during the first
quarter of 2023. Warmer weather also had a $4 million negative impact in the second quarter
of 2023 relative to the second quarter of 2022.
- The Midstream segment reported normalized EBITDA of
$134 million in the second quarter of
2023 compared to $163 million in the
second quarter of 2022, while income before taxes in the segment
was $181 million in the second
quarter of 2023 consistent with income before taxes of $181 million in the second quarter of 2022.
Drivers of the year-over-year variances included the previously
mentioned wildfires, hedge and ship timing impacts, with the hedge
and ship timing impacts expected to reverse in the coming quarters,
as well as the lost contribution from the Aitken Creek gas
processing facility that was sold in the second quarter 2022, which
had an $11 million negative
year-over-year variance in the quarter.
- Effective July 1, 2023,
Vern Yu joined as AltaGas' President
and Chief Executive Officer and was appointed to the Board of
Directors. Mr. Yu has over three decades of experience in energy
infrastructure, including the Utilities and Midstream sectors,
across North America.
- AltaGas exited the second quarter of 2023 with net debt of
$7.7 billion, excluding hybrid notes
and preferred shares, compared to net debt of $9.3 billion at 2022 year-end, excluding hybrid
notes and preferred shares. On a trailing basis AltaGas' Net
Debt1 to normalized EBITDA was approximately 5.1x at the
end of the second quarter of 2023, excluding hybrid notes and
preferred shares. AltaGas remains committed to further reducing its
financial leverage and achieving its medium-term Net Debt to
normalized EBITDA target of below 5.0x and long-term target of
approximately 4.5x, excluding hybrid notes and preferred
shares.
- During the second quarter of 2023, Fitch affirmed AltaGas'
credit rating at 'BBB'/'F3' with a Stable Outlook and S&P
affirmed AltaGas' credit rating at 'BBB-' with a Stable
Outlook.
- AltaGas is pleased with the progress shown on removing the
remaining milestones to complete the Mountain Valley Pipeline over
the past few months, including receipt of all remaining permits to
both finish construction and operate the pipeline. The pathway to
completion was reinforced by the July 27,
2023 U.S. Supreme Court's ruling to vacate the stays that
were placed on the pipeline by the Fourth Circuit.
- On April 4, 2023, AltaGas and
Royal Vopak (Vopak) entered a 50/50 joint venture to develop the
Ridley Island Energy Export Facility (REEF), a large-scale LPG and
bulk liquids terminal and marine infrastructure on Ridley Island. REEF further bolsters AltaGas'
industry-leading liquified petroleum gases (LPG) export business,
adding additional egress for domestic customers to premium global
downstream markets.
- In April 2023, AltaGas entered
into a seven-year time charter agreement with two one-year optional
extensions for a new 86,700 cubic meter dual-fuel Very Large Gas
Carrier (VLGC) with delivery expected in the first half of 2026.
The agreement further reduces AltaGas' maritime shipping costs by
approximately 25 percent relative to normal Baltic freight forward pricing while lowering
pricing volatility.
- On May 15, 2023, AltaGas closed
its offering of $400 million senior
unsecured medium-term notes with a coupon rate of 4.638 percent,
due on May 15, 2026. The net proceeds
were used to pay down existing indebtedness under AltaGas' credit
facility and to refinance the senior unsecured medium-term note
that matured in June 2023.
- On May 18, 2023, Washington Gas
filed an application for authority to increase rates in
Maryland. The requested rates are
designated to collect an incremental US$28
million in revenues, net of approximately US$21 million of costs currently collected
through its Accelerated Replacement Programs (ARP) modernization
program, the Strategic Infrastructure Development Enhancement Plan
(STRIDE) surcharge. The Maryland Public Service Commission (PSC of
MD) has 210 days to consider the application and a decision is
expected around mid-December
2023.
- On June 16, 2023, Washington Gas
filed an application with the PSC of MD for the third phase of its
ARP modernization program, seeking approval for approximately
US$495 million of modernization
investments on behalf of our customers over the five-year period
from January 1, 2024 to December 31, 2028.
- On April 23, 2023, Washington
Gas, State Corporation Commission (SCC) of Virginia Staff and the Office of the Attorney
General filed a proposed stipulation for a settlement that includes
a revenue increase of US$73 million
and return on equity of 9.65 percent. On July 17, 2023, the Hearing Examiner report was
issued recommending the SCC of Virginia approve the proposed
stipulation with certain recommendations. Remaining process steps
on the rate case are expected to be concluded in the coming
months.
_____________________________________
|
1
Non-GAAP measure; see discussion and reconciliation to US GAAP
financial measures in the advisories of this news release or in
AltaGas' Management's Discussion and Analysis (MD&A) as at and
for the period ended June 30, 2023, which is available on
www.sedar.com. (2) GAAP EPS is equivalent to Net income applicable
to common shares divided by shares outstanding. (3) Cash from
Operations per share is equivalent to cash from operations divided
by shares outstanding.
|
CEO MESSAGE
"I'm excited to have joined AltaGas. I've already had the
opportunity to immerse myself into the business, visit offices and
operations, and connect with employees, customers, partners, and
shareholders. My enthusiasm towards the opportunity has only grown
since starting, and I'm excited to leverage the Company's
exceptional assets in the months and years ahead.
"I came to AltaGas because I saw an opportunity to create a
resilient and growing infrastructure platform with a robust
investment proposition. The Company is positioned to deliver
industry-leading dividend growth through stable and increasing
cashflows, improving our risk-profile through low-risk commercial
frameworks, and ongoing balance sheet de-leveraging. AltaGas has a
visible multi-year growth profile through large modernization
programs and ongoing customer additions at the Utilities as well as
continued global export volume growth and value chain investment
opportunities across the Midstream platform.
"The long-term fundamentals for AltaGas' business are robust.
The Canadian upstream industry will deliver robust growth in
natural gas and associated natural gas liquids (NGLs) production in
the coming years, as feedstock for LNG Canada is brought online.
These growing NGL volumes are best suited to be delivered to key
Asian demand markets, with AltaGas and our customers positioned to
benefit from the structural west coast pricing advantage relative
to other LPG supply sources in the U.S. Gulf Coast or Arabian Gulf.
Our Utilities have a bright future with natural gas remaining the
largest home energy source across our jurisdictions and electrical
substitution costs being more than three times the cost of natural
gas on a delivered basis. In the years ahead, we will be acutely
focused on balancing the critical needs of energy affordability and
reliability with regional and national climate goals.
"You can expect AltaGas to continue its commitment towards
strong community partnerships and engagement with Indigenous right
holders and stakeholders in the coming years. These values align
with my own principles, and I believe are the foundation for
long-term sustainability. As we complete a quarter that included
impacts to our Canadian Midstream operations due to the devastating
wildfires across Alberta and B.C.,
our thoughts are with the people and communities affected by these
ongoing tragic events. I want to thank our dedicated employees who
were involved in the wildfire relief and helped the recovery
efforts across the communities where we live and serve. Their
actions are a direct reflection of the organization's culture and
resolve to come together in times like these.
"Despite the negative wildfire and hedge timing impacts present
in the second quarter of 2023, our first half of 2023 results are
in line with our expectations, and we are reiterating our 2023
full-year guidance, including normalized EPS of $1.85 - $2.05 and
normalized EBITDA of $1.5 billion -
$1.6 billion."
RESULTS BY SEGMENT
Normalized EBITDA
(1) (2)
|
Three Months
Ended
June 30
|
($
millions)
|
2023
|
2022
|
Utilities
|
102
|
116
|
Midstream
|
134
|
163
|
Sub-total: Operating
Segments
|
236
|
279
|
Corporate/Other
|
3
|
(3)
|
|
$
239
|
$
276
|
(1)
|
Non‑GAAP financial
measure; see discussion in Non‑GAAP Financial
Measures section of this new release.
|
(2)
|
In the third quarter of
2022, Management changed AltaGas' non-GAAP policy to remove
normalization adjustments relating to acquired contingencies. Prior
periods have been restated to reflect this change. Please refer to
the Non-GAAP Financial Measures section of this news release
for additional details.
|
Income (Loss) Before
Income Taxes
|
|
Three Months
Ended
June 30
|
($
millions)
|
2023
|
2022
|
Utilities
|
105
|
(9)
|
Midstream
|
181
|
181
|
Sub-total: Operating
Segments
|
286
|
172
|
Corporate/Other
|
(104)
|
(87)
|
|
$
182
|
$
85
|
BUSINESS PERFORMANCE
Utilities
The Utilities segment reported normalized EBITDA of $102 million in the second quarter of 2023,
compared to $116 million in the same
quarter of 2022. Income before income taxes was $105 million in the second quarter of 2023,
compared to a loss before income taxes of $9
million in the same quarter of 2022. The largest
driver of the year-over-year variances in normalized EBITDA was the
lack of contribution from the Alaskan Utilities during the second
quarter of 2023, which had contributed $15
million in the second quarter of 2022 and was subsequently
divested during the first quarter of 2023.
Positive factors impacting second quarter results on a
year-over-year basis in 2023 included contribution from ongoing
asset investments on behalf of our customers across the network
through various ARP modernization programs, interim rates being in
place in Virginia as part of the
rate case, and favorable foreign exchange rates. These positive
factors were offset by higher operating and administrative
expenses, warmer weather in Michigan and the District of Columbia, which had a $4 million negative year-over-year variance in
the quarter, and modestly lower contribution from the Retail energy
business.
AltaGas continued to upgrade critical infrastructure and make
ongoing investments on behalf of its customers during the second
quarter of 2023 with the deployment of $198
million of invested capital1, including
$125 million deployed on the
Company's various modernization programs. These investments
continue to be directed towards improving the safety and
reliability of the system and connecting new customers to the
critical energy they require to carry out everyday life. These
investments should also bring long-term operating cost benefits to
our customers. AltaGas will continue to make these critical
modernization investments on behalf of our customers in the years
ahead, while balancing the need for ongoing customer affordability.
This latter focus is particularly important during the current
economic environment of higher interest rates and inflation across
the broader economy. AltaGas continues to be acutely focused on
judicious cost management across the Utilities platform and driving
the best outcomes for its customers and stakeholders.
On April 23, 2023, Washington Gas,
SCC of Virginia (VA) Staff and the Office of the Attorney General
filed a proposed stipulation for a settlement that includes a
revenue increase of US$73 million and
return on equity of 9.65 percent. The proposed stipulation is
pending the Commission review. The evidentiary hearing was held on
May 2, 2023, and letters in lieu of
briefs were filed on June 9, 2023. On
July 17, 2023, the Hearing Examiner
report was issued and recommended the SCC of Virginia approve the
proposed stipulation with certain recommendations. Remaining
process steps on the rate case are expected to be concluded in the
coming months.
On May 18, 2023, Washington Gas
filed an application for authority to increase rates in
Maryland. The requested rates are
designated to collect an incremental US$28
million in revenues, net of approximately US$21 million of costs currently collected
through the STRIDE modernization surcharge. The PSC of MD has 210
days to consider the application and a decision is expected around
mid-December 2023. On June 16, 2023, Washington Gas also filed an
application with the PSC of MD for the third phase of its STRIDE
modernization program, seeking approval for approximately
US$495 million of modernization
investments over the five-year period on behalf of our customers
from January 1, 2024, to December 31, 2028. These applications are focused
on providing Washington with the
capacity to make ongoing modernization investments across
Maryland, with timely rate
recovery mechanisms, and continue to provide the vital energy
required to carry out everyday life in the jurisdiction.
Midstream
The Midstream segment reported normalized EBITDA of $134 million in the second quarter of 2023
compared to $163 million in the same
quarter of 2022. Income before income taxes was $181 million in the second quarter of 2023,
consistent with the $181 million in
the same quarter of 2022. One-time items impacting year-over-year
results included the Canadian wildfires with the North Pine fractionation facility declaring
force majeure for 12.5 days plus other one-time costs associated
with the wildfires that aggregated to an approximate $7 million impact across the platform, and the
lost contribution from the Aitken Creek gas processing facility,
which had an $11 million negative
year-over-year variance in the second quarter of 2023.
Second quarter 2023 results included strong operations and
year-over-year volume growth across the Midstream segment that was
more than offset by the impact of wildfires, lower marketing
profits, a lower contribution from a favourable resolution of
certain contingencies that was present in the second quarter of
2022, lower realized butane margins in the global export business
and the continued impact from previous decisions around not hedging
butane inventories as have been discussed during the past three
quarters, the lost contribution from the Aitken Creek gas
processing facility that was sold in the second quarter of 2022,
and lower realized pricing on fractionation volumes. Other positive
factors impacting normalized EBITDA included the benefit of the
Allowance for Funds Used During Construction (AFUDC) at MVP as a
result of the resumption of construction activities in June 2023, higher power revenue at Harmattan
primarily due to stronger power prices and the facility selling
excess power not needed for operations to the Alberta grid, and the sale of greenhouse gas
credits at the processing facilities due to AltaGas' net credit
position.
AltaGas remains focused on partnering with Western Canadian
producers and aggregators to increase direct global market access
through long-term tolling arrangements that can drive the best
collective outcomes for all parties, while also having an active
hedging program to proactively lock in structural margins and
de-risk cashflows for merchant exports. AltaGas exported 115,589
Bbls/d of LPGs to Asia during the
second quarter of 2023, including 11 full and one partially loaded
VLGC at RIPET, and eight VLGCs loaded at Ferndale. Higher export volumes were driven by
continued improvement in AltaGas and its partner's operating and
logistical capabilities, strong ongoing customer demand in
Asia, and higher available LPG
supply.
Gas processing volumes in the second quarter of 2023 increased
12 percent year-over-year and were in line with the Company's
expectations. The increase was primarily due to higher producer
volumes at the Townsend facility,
higher volumes at the Harmattan raw gas and co-stream facilities,
and strong contribution from the Younger facility due to higher
seasonal demand, partially offset by the impact of the Aitken Creek
sale in the second quarter of 2022.
Fractionation volumes for the second quarter of 2023 increased
by 9,420 Bbls/d (33%) compared to the same quarter of 2022. Higher
fractionation volumes were a result of higher North Pine volumes and utilization, higher
Harmattan trucked-in NGL mix and raw gas volumes, and higher
volumes and utilization at the Younger facility.
AltaGas' realized frac spread averaged $23.87/Bbl, after transportation costs, as most
of AltaGas' frac exposed volumes were hedged at approximately
$26.83/Bbl in the second quarter of
2023, prior to transportation costs. AltaGas is well hedged for
2023 with approximately 85 percent of its remaining 2023 expected
frac exposed volumes hedged at approximately US$27/Bbl, prior to transportation costs. In
addition, approximately 77 percent of AltaGas' remaining 2023
expected global export volumes are either tolled or financially
hedged with an average Far East Index (FEI) to North American
financial hedge price of approximately US$15.32/Bbl for non-tolled propane and butane
volumes.
2023 Midstream Hedge Program
|
|
|
|
|
Q3
2023
|
Q4
2023
|
Remainder
2023
|
Global Exports volumes
hedged (%) (1)
|
93
|
59
|
77
|
Average propane/butane
FEI to North America average hedge (US$/Bbl)
(2)
|
13.80
|
16.84
|
15.32
|
Fractionation volumes
hedged (%) (3)
|
92
|
76
|
85
|
Frac spread hedge rate
(US$/Bbl) (3)
|
27.33
|
26.83
|
27.08
|
1)
|
Approximate expected
volumes hedged. Includes contracted tolling volumes and financial
hedges. Based on AltaGas' internally assumed export volumes.
AltaGas is hedged at a higher percentage for firmly committed
volumes.
|
2)
|
Approximate average for
the period. Does not include physical differential to FSK for C3
volumes. Butane is hedged as a percentage of WTI.
|
3)
|
Approximate average for
the period.
|
Corporate/Other
The Corporate/Other segment reported normalized EBITDA for the
second quarter of 2023 was $3
million, compared to a loss of $3
million in the same quarter of 2022. Loss before income
taxes in the Corporate/Other segment was $104 million in the second quarter of 2023,
compared to a loss of $87 million in
the same quarter of 2022. The year-over-year increase in normalized
EBITDA was mainly due to lower expenses related to employee
incentive plans.
Mountain Valley Pipeline Approval
On June 3, 2023, the U.S. Fiscal
Responsibility Act (FRA) was signed into law, which included
legislation that approved and authorized all permits necessary to
complete construction of MVP and commence and continue operations
post completion. The legislation also changed the court of
jurisdiction to review agency actions on approvals necessary for
MVP construction and ongoing operations. On June 8, 2023, the West Virginia Department of
Environmental Protection re-issued a Section 401 water quality
certification that was previously vacated by the U.S. Fourth
Circuit Court of Appeals. On June 23,
2023, the U.S. Army Corps of Engineers issued a 404
individual water permit, authorizing all remaining open-cut water
body crossings. On June 28, 2023,
FERC approved MVP's request to move forward with all remaining
construction activities.
On July 10, 2023, and July 11, 2023, the U.S. Fourth Circuit Court of
Appeals issued two stays halting the construction of the pipeline
while it considers the arguments of petitions, which are scheduled
for July 27, 2023.
Given the passing of FRA legislation, MVP does not view the U.S.
Fourth Circuit Court of Appeals as having jurisdiction to issue
these orders. On July 14, 2023 MVP
filed a petition for emergency relief to the Supreme Court of
the United States ("SCOTUS"). On
July 27, 2023 SCOTUS vacated the
stays that were issued by the U.S. Court of Appeals for the 4th
Circuit clearing the way to complete construction.
AltaGas has always believed in the fundamentals of MVP and the
benefit of transporting Marcellus/Utica gas by pipeline to the U.S. east coast
utilities and consumers. The pipeline's initial 2.0 Bcf/d capacity
is fully subscribed, and it is further expandable by up to an
additional 500MMcf/d, including firm and interruptible service. As
of June 30, 2023, approximately 94
percent of the project is complete, which includes construction of
all original interconnects and compressor stations. AltaGas'
exposure is contractually capped to the original estimated
contributions of approximately US$352
million. The total project costs are expected to be
US$6.6 billion, however, AltaGas 10%
interest has a capital cost cap, which was met in 2019.
CONSOLIDATED FINANCIAL RESULTS
|
|
Three Months
Ended
June 30
|
($
millions)
|
|
2023
|
|
2022
|
Normalized EBITDA
(1)(2)
|
$
|
239
|
$
|
276
|
Add
(deduct):
|
|
|
|
|
Depreciation and
amortization
|
|
(112)
|
|
(108)
|
Interest
expense
|
|
(93)
|
|
(76)
|
Income tax
expense
|
|
(38)
|
|
(17)
|
Normalizing items
impacting income taxes (1)(2)
|
|
33
|
|
(4)
|
Accretion
expenses
|
|
(2)
|
|
(2)
|
Foreign exchange
gains
|
|
—
|
|
3
|
Non-controlling
interest portion of non-GAAP adjustments (2)
|
|
—
|
|
1
|
Net income applicable
to non-controlling interests
|
|
(4)
|
|
(23)
|
Preferred share
dividends
|
|
(7)
|
|
(10)
|
Normalized net income
(1)(2)
|
$
|
16
|
$
|
$
40
|
Net income
applicable to common shares
|
$
|
133
|
$
|
$
35
|
Normalized funds
from operations (1)(2)
|
$
|
150
|
$
|
$
200
|
|
|
|
|
|
($ per share, except
shares outstanding)
|
|
|
|
|
Shares outstanding -
basic (millions)
|
|
|
|
|
During the period
(4)
|
|
282
|
|
281
|
End of
period
|
|
282
|
|
281
|
|
|
|
|
|
Normalized net income -
basic (1) (2)
|
|
0.06
|
|
0.14
|
Normalized net income -
diluted (1) (2)
|
|
0.06
|
|
0.14
|
|
|
|
|
|
Net income per common
share - basic
|
|
0.47
|
|
0.12
|
Net income per common
share - diluted
|
|
0.47
|
|
0.12
|
(1)
|
Non‑GAAP financial
measure; see discussion in Non‑GAAP Financial
Measures section of this new release.
|
(2)
|
In the third quarter of
2022 AltaGas changed its non-GAAP policy to remove the
normalization of acquisition related contingencies. The amounts
presented in this table reflect the restated figures to align with
the revised policy.
|
(3)
|
Represents the income
tax impact related to the normalizing items included in the
calculation of Normalized EBITDA.
|
(4)
|
Weighted
average
|
Normalized EBITDA for the second quarter of 2023 was
$239 million compared to $276 million for the same quarter in 2022. The
largest factors leading to the variance are described in the
Business Performance sections above.
For the second quarter of 2023, the average Canadian/U.S. dollar
exchange rate increased to 1.34 from an average of 1.28 in the same
period of 2022.
Income before income taxes for the second quarter of 2023 was
$182 million, compared to
$85 million for the same quarter in
2022. Net income applicable to common shares for the second quarter
of 2023 was $133 million
($0.47 per share), compared to
$35 million ($0.12 per share) for the same quarter in 2022.
Please refer to the Three Months Ended June
30 Section of the MD&A for further details on the
variance in income before income taxes and net income applicable to
common shareholders.
Normalized net income was $16
million ($0.06 per share) for
the second quarter of 2023, compared to $40
million ($0.14 per share) for
the same quarter of 2022. The decrease was mainly due to the same
previously referenced factors impacting normalized EBITDA, higher
interest expense, higher depreciation expense, and lower foreign
exchange gains, partially offset by lower net income applicable to
non-controlling interests, lower normalized income tax expense, and
lower preferred share dividends. Please refer to the Non-GAAP
Financial Measures section of the Q2 2023 MD&A for further
details on normalization adjustments.
Normalized funds from operations for the second quarter of 2023
was $150 million ($0.53 per share), compared to $200 million ($0.71
per share) for the same quarter in 2022. The decrease was mainly
due to the same factors impacting normalized EBITDA and higher
interest expense.
Depreciation and amortization expense for the second quarter of
2023 was $112 million, compared to
$108 million for the same quarter in
2022. The slight increase was mainly due to new assets placed
in-service, partially offset by the impact of the Alaska Utilities
Disposition.
Interest expense for the second quarter of 2023 was $93 million, compared to $76 million for the same quarter in 2022. The
increase was mainly due to $4 million
of interest relating to the subordinated hybrid notes issued in
August 2022, higher average interest
rates, higher average debt balances, and a higher average
Canadian/U.S. dollar exchange rate.
Income tax expense was $38 million
for the second quarter of 2023, compared to income tax expense of
$17 million for the same quarter of
2022. The increase was mainly due to higher income before
income taxes. Current tax recovery of $14
million was recorded in the second quarter of 2023, compared
to current tax recovery of $2 million
recorded in the same quarter of 2022. The increase in current tax
recovery was mainly due to the composition of income before income
taxes.
FORWARD FOCUS, GUIDANCE AND FUNDING
AltaGas continues to focus on executing on its long-term
corporate strategy of building a diversified platform that operates
long-life energy infrastructure assets that connect customers and
markets and are positioned to provide resilient and growing value
for the Company's stakeholders.
Following the second quarter results, AltaGas expects to achieve
guidance ranges that were previously disclosed in December 2022, including:
- 2023 Normalized EPS guidance of $1.85 - $2.05 per
share, compared to actual normalized EPS of $1.89 and GAAP EPS of $1.42 in 2022; and
- 2023 Normalized EBITDA guidance of $1.5
billion - $1.6 billion,
compared to actual normalized EBITDA of $1.54 billion and income before taxes of
$716 million in 2022.
AltaGas continues to focus on delivering resilient and growing
normalized EPS and FFO per share while targeting lowering leverage
ratios. This strategy should support steady dividend growth and
provide the opportunity for ongoing capital appreciation for its
long-term shareholders. This includes AltaGas having announced
plans to deliver regular, sustainable, and annual dividend
increases that compound in the years ahead with an anticipated five
to seven percent compounded annual growth rate through 2026. Annual
dividend increases will be a function of financial performance and
determined by the Board on an annual basis.
AltaGas is maintaining a disciplined, self-funded capital
program of approximately $930 million
in 2023, excluding asset retirement obligations. The Company also
expects approximately $90 million of
capital investments that were approved in 2022 to rollover and be
deployed in 2023. The 2023 capital program includes continued
strong investments in the Utilities and Midstream businesses that
are focused on ensuring long-term safety and reliability of the
asset base and position AltaGas to meet its customers long-term
needs and drive the best collective outcomes for all
stakeholders.
QUARTERLY COMMON SHARE DIVIDEND AND PREFERRED SHARE
DIVIDENDS
The Board of Directors approved the following schedule of
Dividends:
Type
|
Dividend
(per
share)
|
Period
|
Payment
Date
|
Record
|
Common
Shares1
|
$0.28
|
n.a.
|
29-Sept-23
|
15-Sept-23
|
Series A
Preferred Shares
|
$0.19125
|
30-June-23
to
29-Sept-23
|
29-Sept-23
|
15-Sept-23
|
Series B
Preferred Shares
|
$0.45515
|
30-June-23
to
29-Sept-23
|
29-Sept-23
|
15-Sept-23
|
Series E
Preferred Shares
|
$0.337063
|
30-June-23
to
29-Sept-23
|
29-Sept-23
|
15-Sept-23
|
Series G
Preferred Shares
|
$0.265125
|
30-June-23
to
29-Sept-23
|
29-Sept-23
|
15-Sept-23
|
Series H
Preferred Shares
|
$0.48035
|
30-June-23
to
29-Sept-23
|
29-Sept-23
|
15-Sept-23
|
1.
|
Dividends on common
shares and preferred shares are eligible dividends for Canadian
income tax purposes.
|
CONFERENCE CALL AND WEBCAST DETAILS
AltaGas will hold a conference call today, July 28, at 9:00 a.m.
MT (11:00 a.m. ET) to discuss
second quarter 2023 results and other corporate developments.
Date:
Friday, July 28, 2023
Time:
9:00 a.m. MT (11:00 a.m.
ET)
Dial-in (Audio only): 1-416-764-8659 or
toll free at 1-888-664-6392 or Click to Join
Webcast:
https://www.altagas.ca/invest/events-and-presentations
Shortly after the conclusion of the call a replay will be
available on the Company's website or by dialing 416-764-8677 or
toll free 1-888-390-0541, passcode 454646#.
AltaGas' Consolidated Financial Statements and accompanying
notes for the second quarter 2023, as well as its related
Management's Discussion and Analysis, are now available online at
www.altagas.ca. All documents will be filed with the Canadian
securities regulatory authorities and will be posted under AltaGas'
SEDAR profile at www.sedar.com.
NON-GAAP MEASURES
This news release contains references to certain financial
measures that do not have a standardized meaning prescribed by US
GAAP and may not be comparable to similar measures presented by
other entities. The non-GAAP measures and their reconciliation to
US GAAP financial measures are shown below and within AltaGas'
Management's Discussion and Analysis (MD&A) as at and for the
period ended June 30, 2023. These
non-GAAP measures provide additional information that management
believes is meaningful regarding AltaGas' operational performance,
liquidity and capacity to fund dividends, capital expenditures, and
other investing activities. Readers are cautioned that these
non-GAAP measures should not be construed as alternatives to other
measures of financial performance calculated in accordance with US
GAAP.
Normalized EBITDA
|
Three Months
Ended
June 30
|
Six Months
Ended
June 30
|
($
millions)
|
2023
|
2022
|
2023
|
2022
|
Income before income
taxes (GAAP financial measure)
|
$
182
|
$
85
|
$
802
|
$
590
|
Add:
|
|
|
|
|
Depreciation and
amortization
|
112
|
108
|
223
|
221
|
Interest
expense
|
93
|
76
|
198
|
146
|
EBITDA
|
$
387
|
$
269
|
$
1,223
|
$
957
|
Add
(deduct):
|
|
|
|
|
Transaction costs
related to acquisitions and dispositions (1)
|
4
|
2
|
20
|
2
|
Unrealized losses
(gains) on risk management contracts (2)
|
(150)
|
5
|
(115)
|
(104)
|
Losses (gains) on sale
of assets (3)
|
(11)
|
1
|
(319)
|
(6)
|
CEO Transition
(4)
|
5
|
—
|
5
|
—
|
Settlement of pension
plan (5)
|
2
|
—
|
2
|
—
|
Accretion
expenses
|
2
|
2
|
5
|
3
|
Foreign exchange
gains
|
—
|
(3)
|
—
|
(2)
|
Normalized
EBITDA
|
$
239
|
$
276
|
$
821
|
$
850
|
(1)
|
Comprised of
transaction costs related to acquisitions and dispositions of
assets and/or equity investments in the period. These costs are
included in the "cost of sales" and "operating and administrative"
line items on the Consolidated Statements of Income. Transaction
costs include expenses, such as legal fees, which are directly
attributable to the acquisition or disposition. As noted in the
second quarter 2023 MD&A, in the third quarter of 2022 AltaGas
changed its non-GAAP policy to remove the normalization of
acquisition related contingencies. The amounts presented in this
table reflect the restated figures to align with the revised
policy. Please refer to Note 3 of the unaudited condensed interim
Consolidated Financial Statements as at and for the three and six
months ended June 30, 2023 for further details regarding AltaGas'
disposition of assets in the period.
|
(2)
|
Included in the
"revenue" and "cost of sales" line items on the Consolidated
Statements of Income. Please refer to Note 13 of the unaudited
condensed interim Consolidated Financial Statements as at and for
the three and six months ended June 30, 2023 for further details
regarding AltaGas' risk management activities.
|
(3)
|
Included in the "other
income" line item on the Consolidated Statements of Income. Please
refer to Note 3 of the unaudited condensed interim Consolidated
Financial Statements as at and for the three and six months ended
June 30, 2023 for further details regarding AltaGas' disposition of
assets in the period.
|
(4)
|
Comprised of costs
related to the transition of AltaGas' CEO. These costs are included
in the "operating and administrative" line items on the
Consolidated Statements of Income.
|
(5)
|
Relates to the
completion of the wind-up of the Canadian defined benefit pension
plan in the second quarter of 2023. The settlement charge is
included in the "other income" line on the Consolidated Statements
of Income. Please refer to Note 18 of the unaudited condensed
interim Consolidated Financial Statements as at and for the three
and six months ended June 30, 2023 for further details regarding
the wind-up of the pension plan.
|
EBITDA is a measure of AltaGas' operating profitability
prior to how business activities are financed, assets are
amortized, or earnings are taxed. EBITDA is calculated from the
Consolidated Statements of Income using income before income taxes
adjusted for pre‑tax depreciation and amortization, interest
expense.
AltaGas presents normalized EBITDA as a supplemental measure.
Normalized EBITDA is used by Management to enhance the
understanding of AltaGas' earnings over periods, as well as for
budgeting and compensation related purposes. The metric is
frequently used by analysts and investors in the evaluation of
entities within the industry as it excludes items that can vary
substantially between entities depending on the accounting policies
chosen, the book value of assets, and the capital structure.
Normalized Net Income
|
Three Months
Ended
June 30
|
Six Months
Ended
June 30
|
($
millions)
|
2023
|
2022
|
2023
|
2022
|
Net income applicable
to common shares (GAAP financial measure)
|
$
133
|
$
35
|
$
578
|
$
393
|
Add (deduct)
after-tax:
|
|
|
|
|
Transaction costs
related to acquisitions and dispositions (1)
|
2
|
1
|
15
|
1
|
Unrealized losses
(gains) on risk management contracts (2)
|
(116)
|
5
|
(89)
|
(76)
|
Non-controlling
interest portion of non-GAAP adjustments (3)
|
—
|
1
|
—
|
4
|
Gains on sale of
assets (4)
|
(9)
|
(2)
|
(217)
|
(7)
|
Restructuring costs
(5)
|
4
|
—
|
4
|
—
|
Loss on redemption of
preferred shares (6)
|
—
|
—
|
—
|
10
|
Settlement of pension
plan (7)
|
2
|
—
|
2
|
—
|
Normalized net
income
|
$
16
|
$
40
|
$
293
|
$
325
|
(1)
|
Comprised of
transaction costs related to acquisitions and dispositions of
assets and/or equity investments in the period. The pre-tax costs
are included in the "cost of sales" and "operating and
administrative" line items on the Consolidated Statements of
Income. Transaction costs include expenses, such as legal fees,
which are directly attributable to the acquisition or disposition.
As noted in the second quarter 2023 MD&A, in the third quarter
of 2022 AltaGas changed its non-GAAP policy to remove the
normalization of acquisition related contingencies. The amounts
presented in this table reflect the restated figures to align with
the revised policy. Please refer to Note 3 of the unaudited
condensed interim Consolidated Financial Statements as at and for
the three and six months ended June 30, 2023 for further details
regarding AltaGas' disposition of assets in the period.
|
(2)
|
The pre-tax amounts are
included in the "revenue" and "cost of sales" line items on the
Consolidated Statements of Income. Please refer to Note 13 of the
unaudited condensed interim Consolidated Financial Statements as at
and for the three and six months ended June 30, 2023 for further
details regarding AltaGas' risk management activities.
|
(3)
|
The portion of non-GAAP
adjustments applicable to non-controlling interests are excluded in
the computation of normalized net income to ensure consistency of
normalizations applied to controlling and non-controlling
interests. These amounts are included in the "net income applicable
to non-controlling interests" line item on the Consolidated
Statements of Income. As noted on page 16 of this MD&A, in the
third quarter of 2022 AltaGas changed its non-GAAP policy to remove
the normalization of acquisition related contingencies. This
includes the associated impact to the portion applicable to
non-controlling interests. The amounts presented in this table
reflect the restated figures to align with the revised
policy.
|
(4)
|
The pre-tax amounts are
included in the "other income" line item on the Consolidated
Statements of Income. Please refer to Note 3 of the unaudited
condensed interim Consolidated Financial Statements as at and for
the three and six months ended June 30, 2023 for further details
regarding AltaGas' disposition of assets in the period.
|
(5)
|
Comprised of costs
related to the transition of AltaGas' CEO. The pre-tax costs are
included in the "operating and administrative" line items on the
Consolidated Statements of Income.
|
(6)
|
Comprised of the loss
on the redemption of Series K Preferred Shares on March 31, 2022.
The loss on redemption of preferred shares is recorded on the "loss
of redemption of preferred shares" line on the Consolidated
Statements of Income.
|
(7)
|
Relates to the
completion of the wind-up of the Canadian defined benefit pension
plan in the second quarter of 2023. The settlement charge is
included in the "other income" line on the Consolidated Statements
of Income. Please refer to Note 18 of the unaudited condensed
interim Consolidated Financial Statements as at and for the three
and six months ended June 30, 2023 for further details regarding
the wind-up of the pension plan.
|
Normalized net income and normalized net income per share are
used by Management to enhance the comparability of AltaGas'
earnings, as these metrics reflect the underlying performance of
AltaGas' business activities.
Normalized Funds From Operations
|
Three Months
Ended
June 30
|
Six Months
Ended
June 30
|
($
millions)
|
2023
|
2022
|
2023
|
2022
|
Cash from operations
(GAAP financial measure)
|
$
373
|
$
527
|
$
964
|
$
1,211
|
Add
(deduct):
|
|
|
|
|
Net change in
operating assets and liabilities
|
(231)
|
(328)
|
(422)
|
(553)
|
Asset retirement
obligations settled
|
3
|
1
|
5
|
3
|
Funds from
operations
|
$
145
|
$
200
|
$
547
|
$
661
|
Add
(deduct):
|
|
|
|
|
Transaction costs
related to acquisitions and dispositions (1)
|
4
|
2
|
20
|
2
|
Restructuring costs
(2)
|
5
|
—
|
5
|
—
|
Current tax
expense (recovery) on asset sales (3)
|
(4)
|
(2)
|
38
|
(1)
|
Normalized funds from
operations
|
$
150
|
$
200
|
$
610
|
$
662
|
(1)
|
Comprised of costs
related to acquisitions and dispositions of assets and/or equity
investments in the period. These costs exclude any non-cash amounts
and are included in the "cost of sales" and "operating and
administrative" line items on the Consolidated Statements of
Income. Transaction costs include expenses, such as legal
fees, which are directly attributable to the acquisition or
disposition. As noted in the second quarter 2023 MD&A, in the
third quarter of 2022 AltaGas changed its non-GAAP policy to remove
the normalization of acquisition related contingencies. The amounts
presented in this table reflect the restated figures to align with
the revised policy. Please refer to Note 3 of the unaudited
condensed interim Consolidated Financial Statements as at and for
the three and six months ended June 30, 2023 for further details
regarding AltaGas' disposition of assets in the period.
|
(2)
|
Comprised of costs
related to the transition of AltaGas' CEO. These costs are included
in the "operating and administrative" line items on the
Consolidated Statements of Income.
|
(3)
|
Included in the
"current income tax expense" line item on the Consolidated
Statements of Income.
|
Normalized funds from operations and funds from operations are
used to assist Management and investors in analyzing the liquidity
of the Corporation. Management uses these measures to understand
the ability to generate funds for capital investments, debt
repayment, dividend payments, and other investing activities.
Funds from operations and normalized funds from operations as
presented should not be viewed as an alternative to cash from
operations or other cash flow measures calculated in accordance
with GAAP.
Invested Capital and Net Invested Capital
|
Three Months
Ended
June 30
|
Six Months
Ended
June 30
|
($
millions)
|
2023
|
2022
|
2023
|
2022
|
Cash used in (from)
investing activities (GAAP financial measure)
|
$
231
|
$
(31)
|
$
(638)
|
$
128
|
Add
(deduct):
|
|
|
|
|
Net change in non-cash
capital expenditures (1)
|
(7)
|
40
|
(35)
|
3
|
Net invested
capital
|
$
224
|
$
9
|
$
(673)
|
$
131
|
Asset
dispositions
|
—
|
225
|
1,072
|
245
|
Invested
capital
|
$
224
|
$
234
|
$
399
|
$
376
|
(1)
|
Comprised of non-cash
capital expenditures included in the "accounts payable and accrued
liabilities" line item on the Consolidated Balance Sheets. Please
refer to Note 19 of the unaudited condensed interim Consolidated
Financial Statements as at and for the three and six months ended
June 30, 2023 for further details.
|
Invested capital is a measure of AltaGas' use of funds for
capital expenditure activities. It includes expenditures relating
to property, plant, and equipment and intangible assets, capital
contributed to long term investments, and contributions from
non-controlling interests. Invested capital is used by Management,
investors, and analysts to enhance the understanding of AltaGas'
capital expenditures from period to period and provide additional
detail on the Company's use of capital.
CONSOLIDATED FINANCIAL REVIEW
|
Three Months
Ended
June 30
|
Six Months
Ended
June 30
|
($ millions, except
effective income tax rates)
|
2023
|
2022
|
2023
|
2022
|
Revenue
|
2,631
|
3,241
|
6,679
|
7,133
|
Normalized EBITDA
(1) (2)
|
239
|
276
|
821
|
850
|
Income before income
taxes
|
182
|
85
|
802
|
590
|
Net income applicable
to common shares
|
133
|
35
|
578
|
393
|
Normalized net income
(1) (2)
|
16
|
40
|
293
|
325
|
Total assets
|
21,336
|
22,206
|
21,336
|
22,206
|
Total long-term
liabilities
|
11,196
|
10,753
|
11,196
|
10,753
|
Invested capital
(1)
|
224
|
234
|
399
|
376
|
Cash from (used in)
investing activities
|
(231)
|
31
|
638
|
(128)
|
Dividends declared
(3)
|
79
|
74
|
158
|
149
|
Cash from
operations
|
373
|
527
|
964
|
1,211
|
Normalized funds from
operations (1) (2)
|
150
|
200
|
610
|
662
|
Normalized effective
income tax rate (%) (1) (2)
|
15.6
|
22.6
|
20.3
|
20.3
|
Effective income tax
rate (%)
|
21.2
|
20.5
|
25.2
|
21.0
|
|
Three Months
Ended
June 30
|
Six Months
Ended
June 30
|
($ per share, except
shares outstanding)
|
2023
|
2022
|
2023
|
2022
|
Net income per common
share - basic
|
0.47
|
0.12
|
2.05
|
1.40
|
Net income per common
share - diluted
|
0.47
|
0.12
|
2.04
|
1.39
|
Normalized net income -
basic (1) (2)
|
0.06
|
0.14
|
1.04
|
1.16
|
Normalized net income -
diluted (1) (2)
|
0.06
|
0.14
|
1.04
|
1.15
|
Dividends declared
(3)
|
0.28
|
0.27
|
0.56
|
0.53
|
Cash from
operations
|
1.32
|
1.88
|
3.42
|
4.31
|
Normalized funds from
operations (1) (2)
|
0.53
|
0.71
|
2.16
|
2.36
|
Shares outstanding -
basic (millions)
|
|
|
|
|
During the period
(4)
|
282
|
281
|
282
|
281
|
End of
period
|
282
|
281
|
282
|
281
|
1)
|
Non‑GAAP financial
measure or non-GAAP financial ratio; see discussion in Non-GAAP
Financial Measures section of this MD&A.
|
2)
|
In the third quarter of
2022, Management changed AltaGas' non-GAAP policy to remove
normalization adjustments relating to acquired contingencies. Prior
periods have been restated to reflect this change. Please refer to
the Non-GAAP Financial Measures section of this MD&A for
additional details.
|
3)
|
Dividend declared per
common share per quarter: $0.265 per share beginning March 2022,
increased to $0.28 per share effective March 31, 2023.
|
4)
|
Weighted
average.
|
ABOUT ALTAGAS
AltaGas is a leading North American infrastructure company that
connects customers and markets to affordable and reliable sources
of energy. The Company operates a diversified, lower-risk,
high-growth Utilities and Midstream business that is focused on
delivering resilient and durable value for its stakeholders.
For more information visit www.altagas.ca or reach out to one of
the following:
Jon Morrison
Senior
Vice President, Corporate Development and Investor Relations
Jon.Morrison@altagas.ca
Adam McKnight
Director,
Investor Relations
Adam.McKnight@altagas.ca
Investor Inquiries
1-877-691-7199
investor.relations@altagas.ca
Media Inquiries
1-403-206-2841
media.relations@altagas.ca
FORWARD-LOOKING INFORMATION
This news release contains forward-looking information
(forward-looking statements). Words such as "may", "can", "would",
"could", "should", "likely", "will", "intend", "plan",
"anticipate", "believe", "aim", "seek", "future", "commit",
"propose", "contemplate", "estimate", "focus", "strive",
"forecast", "expect", "project", "potential", "target",
"guarantee", "potential", "objective", "continue", "outlook",
"guidance", "growth", "long-term", "vision", "opportunity" and
similar expressions suggesting future events or future performance,
as they relate to the Corporation or any affiliate of the
Corporation, are intended to identify forward-looking statements.
In particular, this news release contains forward-looking
statements with respect to, among other things, business
objectives, expected growth, results of operations, performance,
business projects and opportunities and financial results.
Specifically, such forward-looking statements included in this
document include, but are not limited to, statements with respect
to the following: expected reductions in negative hedge and ship
timing and the corresponding effect on AltaGas' financial results,
including between different quarters; AltaGas' ability to de-risk
its global export business and operate in strong partnership with
its customers; anticipated construction, impacts on maritime
shipping costs and in-service date of a new VLGC; expected 2023
normalized EBITDA guidance of $1.5 to
$1.6 billion; expected 2023
normalized EPS guidance of $1.85 to
$2.05; AltaGas' focus on growing
normalized EPS and FFO while targeting lowering leverage debt
ratios; expectation for ongoing dividend, capital appreciation and
cash flow growth, including 5 to 7 percent compounded annual growth
rate through 2026; AltaGas' ability to execute its strategic
priorities and achieve its 2023 and longer-term growth plans;
AltaGas' Utilities' ability to execute its regulatory strategy and
achieve favourable rates commensurate with cost of capital;
AltaGas' ability to reduce its financial leverage and achieve its
medium-term 5x net debt-to-normalized EBITDA target and long-term
target of 4.5x; the impact of AltaGas' network upgrades on
long-term operating costs, the environment, and customer
affordability; AltaGas' ability to increase long-term tolling
arrangements and maintaining an active hedging program and the
expected results therefrom; AltaGas' belief in the long-term demand
and growth opportunities in the Canadian upstream industry the
expected impacts therefrom; AltaGas' ability to collaborate with
First Nations and stakeholders on sustainable resource development
and its belief and role in the growing global demand for
responsibly developed energy sources; expectation for an active
hedging program in 2023 and the expected outcomes therefrom; the
percentage of AltaGas' expected 2023 frac exposed volumes that are
hedged; the percentage of AltaGas' expected 2023 export volumes
that are tolled or financially hedged; anticipation of successful
collaboration with First Nations and other key stakeholders;
AltaGas' belief in the benefit of transporting gas on the MVP
pipeline to the U.S. east coast utilities and consumers; the
expected project costs of the MVP pipeline, its progress and the
remaining milestones; the potential development of REEF and
expected project activities, deliverables and timing thereof;
anticipated timing, results and impacts of applications, hearings,
and decisions of rate cases before Utilities regulators; AltaGas'
long-term objectives for managing capital; expected self-funded
capital program of $930 million in
2023 including rollover of $90
million capital investments from 2022, excluding asset
retirement obligations; and the utility of certain non-GAAP
measures; the ability of investors to compare certain financial
measures used by AltaGas to similar measures presented by other
entities.
These statements involve known and unknown risks,
uncertainties and other factors that may cause actual results,
events, and achievements to differ materially from those expressed
or implied by such statements. Such statements
reflect AltaGas' current expectations, estimates, and
projections based on certain material factors and assumptions at
the time the statement was made. Material assumptions include:
anticipated timing of asset sale closings, effective tax rates,
financing initiatives, degree day variance from normal, pension
discount rate, the performance of the businesses underlying each
sector, impacts of the hedging program, expected commodity supply,
demand and pricing, volumes and rates, exchange rates, inflation,
interest rates, credit ratings, regulatory approvals and policies,
future operating and capital costs, capacity expectations, weather,
frac spread, access to capital, planned and unplanned plant
outages, timing of in-service dates of new projects and acquisition
and divestiture activities, returns on investments, and dividend
levels.
AltaGas' forward-looking statements are subject to
certain risks and uncertainties which could cause results or events
to differ from current expectations, including, without limitation:
risks related to conflict in Eastern
Europe; health and safety risks; operating risks;
infrastructure; natural gas supply risks; volume throughput;
service interruptions; transportation of petroleum products; market
risk; inflation; general economic conditions; cyber security,
information, and control systems; climate-related risks;
environmental regulation risks; regulatory risks; litigation;
changes in law; Indigenous and treaty rights; dependence on certain
partners; political uncertainty and civil unrest; decommissioning,
abandonment and reclamation costs; reputation risk; weather data;
capital market and liquidity risks; interest rates; internal credit
risk; foreign exchange risk; debt financing, refinancing, and debt
service risk; counterparty and supplier risk; technical systems and
processes incidents; growth strategy risk; construction and
development; underinsured and uninsured losses; impact of
competition in AltaGas' businesses; counterparty credit risk;
composition risk; collateral; rep agreements; market value of
common shares and other securities; variability of dividends;
potential sales of additional shares; labor relations; key
personnel; risk management costs and limitations; commitments
associated with regulatory approvals for the acquisition of WGL;
cost of providing retirement plan benefits; failure of service
providers; risks related to pandemics, epidemics or disease
outbreaks, including COVID-19; and the other factors discussed
under the heading "Risk Factors" in the Corporation's Annual
Information Form for the year ended December
31, 2022 and set out in AltaGas' other continuous disclosure
documents.
Many factors could cause AltaGas' or any particular business
segment's actual results, performance or achievements to vary from
those described in this press release, including, without
limitation, those listed above and the assumptions upon which they
are based proving incorrect. These factors should not be construed
as exhaustive. Should one or more of these risks or uncertainties
materialize, or should assumptions underlying forward-looking
statements prove incorrect, actual results may vary materially from
those described in this news release as intended, planned,
anticipated, believed, sought, proposed, estimated, forecasted,
expected, projected or targeted and such forward-looking statements
included in this news release, should not be unduly relied upon.
The impact of any one assumption, risk, uncertainty, or other
factor on a particular forward-looking statement cannot be
determined with certainty because they are interdependent and
AltaGas' future decisions and actions will depend on management's
assessment of all information at the relevant time. Such statements
speak only as of the date of this news release. AltaGas does not
intend, and does not assume any obligation, to update these
forward-looking statements except as required by law. The
forward-looking statements contained in this news release are
expressly qualified by these cautionary statements.
Financial outlook information contained in this news release
about prospective financial performance, financial position, or
cash flows is based on assumptions about future events, including
economic conditions and proposed courses of action, based on
AltaGas management's (Management) assessment of the relevant
information currently available. Readers are cautioned that such
financial outlook information contained in this news release should
not be used for purposes other than for which it is disclosed
herein.
Additional information relating to AltaGas, including its
quarterly and annual MD&A and Consolidated Financial
Statements, AIF, and press releases are available through AltaGas'
website at www.altagas.ca or through SEDAR at www.sedar.com
SOURCE AltaGas Ltd.