Continued Execution of AltaGas' Strategic Plan Strongly
Positions the Company to Deliver on 2023 Guidance and Drive
Shareholder Value Creation
CALGARY,
AB, Nov. 3, 2023 /CNW/ - AltaGas Ltd.
("AltaGas" or the "Company") (TSX: ALA) today reported
third 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 $0.10 in the third quarter of 2023 compared to
$0.10 in the third quarter of 2022,
while GAAP EPS2 was a $0.18 loss in the third quarter of 2023 compared
a $0.17 loss in the third quarter of
2022. Normalized EPS was ahead of AltaGas' expectations and
strongly positions the Company to deliver on its 2023 guidance,
including current expectations of achieving results in the upper
half of the guidance range.
- Normalized EBITDA1 was $252
million in the third quarter of 2023 compared to
$233 million in the third quarter of
2022, while loss before income taxes was $51
million in the third quarter of 2023 compared to income
before income taxes of $48 million in
the same quarter of 2022. Third quarter results included robust
performance from the Midstream segment while the Utilities segment
was in line with AltaGas' expectations and reflective of the
typical seasonal low for natural gas usage during the shoulder
season.
- Normalized FFO per share1 was $0.50 in the third quarter of 2023 compared to
$0.60 in the third quarter of 2022,
while Cash from Operations per share3 was $0.01 in the third quarter of 2023 compared to
cash used by operations of $1.37 per
share in the third quarter of 2022. The decrease in normalized FFO
per share was principally driven by higher interest expense,
including hybrid debt which replaced preferred shares, and lower
current normalized income tax recovery in the quarter. The increase
in Cash from Operations per share was principally driven by changes
in working capital.
- The Midstream segment reported strong operating results with
normalized EBITDA of $185 million in
the third quarter of 2023 compared to $108
million in the third quarter of 2022, while income before
taxes in the segment was $61 million
in the third quarter of 2023 compared to income before taxes of
$71 million in the third quarter of
2022. The largest drivers of the strong year-over-year results were
meaningfully stronger performance from global exports business due
to solid operational execution, strong volumes and pricing, and
benefit of Allowance for Funds Used During Construction ("AFUDC")
on the Mountain Valley Pipeline ("MVP") as the project progresses
to final completion in early 2024.
- The Utilities segment reported normalized EBITDA of
$71 million in the third quarter of
2023 compared to $115 million in the
third quarter of 2022, while loss before taxes was $16 million in the third quarter of 2023 compared
to income before taxes of $54 million
in the same quarter of 2022. The largest driver of the
year-over-year decrease in financial contribution was the lack of
the larger-then-normal asset optimization that was present in last
year's results, and is shared with our customers, and the lost
contribution of the Alaskan Utilities, which were divested on
March 1, 2023, and had contributed
$13 million in normalized EBITDA in
the third quarter of 2022.
- On August 31, 2023, AltaGas
announced that it has entered into a definitive agreement to
acquire the Pipestone natural gas
processing and storage infrastructure assets located in the Alberta
Montney for total consideration of $650
million from Tidewater Midstream and Infrastructure Ltd.
("Tidewater"). Subsequent to the announcement, AltaGas has received
all material regulatory approvals, including Competition Act
approval, and is currently working on other condition precedents to
close the transaction, which continues to be anticipated prior to
2023 year-end.
- On October 20, 2023, AltaGas
entered a five-year transportation agreement with Canadian National
Railway Company ("CN"). The agreement provides AltaGas and its
customers with cost and service predictability to support AltaGas'
growing LPG exports to Asia, which
support ongoing resource development across Western Canada, and provides energy security
to the Company's downstream customers in Asia.
- Commissioning on two of AltaGas' new very large gas carriers
("VLGCs") progressed well over the third quarter of 2023 with the
Boreal Pioneer expected to have its maiden voyage in December of
2023 with the Boreal Voyager expected to follow in March of 2024.
These two seven-year time charters with optional extensions will
reduce total shipping costs to Asia by approximately 25 percent compared to a
standard VLGC. The vessels' deployment will also remove pricing
volatility and de-risk maritime shipping costs on a long-term basis
and is part of the Company's plan to commercially de-risk its
Midstream business. In total, AltaGas will have three Time Charters
operating in 2024 with a fourth under construction, which is set to
be commissioned in the first half of 2026.
- On October 20, 2023, Washington
Gas executed a definitive agreement with Opal Fuels Inc. ("Opal
Fuels") to support a renewable natural gas ("RNG") project at the
Prince William County Landfill in Virginia. As part of the agreement, Washington
Gas will become an offtake customer for RNG production and purchase
key interconnect infrastructure for approximately US$25 million. The interconnect infrastructure is
anticipated to become part of Washington Gas' rate base and will be
eligible to earn a 100-bps premium to its allowed ROE in the
jurisdiction as part of the Virginia Energy Innovation Act, subject
to regulatory approval.
- AltaGas is pleased with the construction progress on MVP. The
pipeline is expected to be placed into service during the first
quarter of 2024 and will provide critical energy security to
customers in the Eastern U.S. The updated aggregate capital cost of
the pipeline is US$7.2 billion with
AltaGas' cash contribution contractually capped at its original
US$352 million investment for a ten
percent equity interest in a non-dilutive ownership stake. As
previously disclosed, AltaGas does not consider its equity stake as
core and will consider a monetization as part of the Company's plan
to reach its 4.5x net debt to normalized EBITDA target.
- On August 29, 2023, the
Commonwealth of Virginia State Corporation Commission ("SCC of VA")
adopted the Hearing Examiner's report for the Virginia rate case, approving approximately
US$41 million of incremental base
rates plus approximately US$32
million of SAVE surcharges for a total rate increase of
approximately US$73 million.
- Effective September 1, 2023,
AltaGas appointed a new independent Director, Angela Lekatsas, to AltaGas' Board of Directors.
Ms. Lekatsas has over two decades of broad industry and corporate
finance experience and will also serve as a member of AltaGas'
Audit Committee.
- On October 19, 2023, Washington
Gas issued US$200 million in private
placement notes, which includes US$150
million at 6.06 percent maturing on October 14, 2033, and US$50 million at 6.43 percent maturing on
October 15, 2053. The proceeds will
be used for general corporate purposes.
- On December 5, 2023, AltaGas will
be hosting its 2023 Investor Day, where management will provide an
update on the Company's corporate strategy and outlook, share its
near- and- long-term corporate priorities, and provide 2024
financial guidance.
____________________________
|
(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 September 30, 2023, which is available on
www.sedarplus.ca. (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
"We are pleased with the third quarter operating and financial
results and where we sit on a year-to-date basis" said Vern Yu, President and Chief Executive Officer
of AltaGas. "This performance strongly positions the company to
deliver on our 2023 guidance, including our current expectation to
deliver results in the upper half of our guidance range, and
continue to drive value creation for our stakeholders.
"Performance in the Midstream segment was robust and reflected
record export volumes and the west coast advantage for Canadian
LPGs. The Company has been actively working on de-risking Midstream
while using strong risk management practices for residual commodity
exposure. The Canadian upstream industry will deliver robust
natural gas and NGL production growth in the coming years and we
believe that AltaGas is positioned to provide the best value for
LPG customers in North America and
Asia.
"The Utilities segment performed relatively in line with our
expectations and was reflective of the typical seasonal low for
natural gas usage during the shoulder season. Our Utilities have a
bright future with natural gas remaining the largest home energy
source across all our jurisdictions where, on average, electrical
substitution costs are more than three times the cost of
natural gas on a delivered basis1.
"In the years ahead, we will be acutely focused on balancing the
critical needs of energy affordability and reliability with
regional climate goals. Subsequent to quarter-end, we were pleased
to sign an agreement to support a major RNG project at the Prince
William County Landfill in Virginia. Through this agreement Washington
Gas will become an offtake customer and purchase key interconnect
infrastructure that will transport RNG through our network and
lower the carbon-intensity of our energy supply.
"AltaGas has made tremendous progress on restructuring the
platform over the past four years, including streamlining
operations, refocusing the business, and de-risking the balance
sheet. This includes significant leverage reduction, a shift in the
debt portfolio with approximately 90 percent of the Company's debt
being fixed under a properly staggered maturity ladder, and having
built in optionality for additional debt repayments. These moves
have strongly positioned AltaGas for the current operating
environment and protected the Company from the material increases
in interest rates over the past 18 months.
"We will continue this focus in the coming period as we look to
complete our portfolio optimization, drive improved return on
invested capital from our existing asset base, commercially and
financially de-risk operations, and close our deleveraging journey
to reach our 4.5x net debt to EBITDA target. AltaGas has a robust
investment proposition that is supported by strong macro
fundamentals and has a strong growth trajectory. We look forward to
closing out a strong year in the fourth quarter and discussing the
road ahead with our stakeholders at our Investor Day on
December 5, 2023."
RESULTS BY SEGMENT
Normalized EBITDA
(2)
|
Three Months
Ended
September 30
|
($
millions)
|
2023
|
2022
|
Utilities
|
$
71
|
$
115
|
Midstream
|
185
|
108
|
Corporate/Other
|
(4)
|
10
|
Normalized EBITDA
(2)
|
$
252
|
$
233
|
(1) Energy Analysis,
AGA
|
(2) Non‑GAAP financial
measure; see discussion in Non‑GAAP Financial Measures
section of this new release.
|
Income (Loss) Before
Income Taxes
|
Three Months
Ended
September 30
|
($
millions)
|
2023
|
2022
|
Utilities
|
$
(16)
|
$
54
|
Midstream
|
61
|
71
|
Corporate/Other
|
(96)
|
(77)
|
Income (Loss) Before
Income Taxes
|
$
(51)
|
$
48
|
BUSINESS PERFORMANCE
Midstream
The Midstream segment reported normalized EBITDA of $185 million in the third quarter of 2023
compared to $108 million in the third
quarter of 2022. Income before income taxes in the Midstream
segment was $61 million in the third
quarter of 2023, compared to $71
million in the same quarter of 2022. Third quarter 2023
results included strong operations across the platform, including a
significant improvement in the profitability of the global exports
business due to robust export volumes, strong logistical
performance, and high Asian-to-North American LPG margins. The
quarter also benefitted from AFUDC being booked on MVP due to the
resumption of construction activities in June of 2023, lower power
costs at AltaGas' extraction facilities, and higher crude and NGL
marketing margins.
AltaGas exported a record 118,213 Bbls/d of LPGs to Asia during the third quarter of 2023,
including eleven full and one partially loaded VLGC at RIPET, and
eight full and one partially loaded VLGC at Ferndale. The partially
loaded vessels are a function of revenue recognition taking place
at the point of ship loading and select loadings taking place over
quarter ends. Higher export volumes were driven by continued
improvement in AltaGas' operating and logistical capabilities,
strong ongoing customer demand in Asia, and higher available LPG supply. AltaGas
remains focused on partnering with North American producers,
aggregators, and Asian downstream customers to increase direct
market access through long-term LPG tolling arrangements. The
Company made continued progress on tolling initiatives during the
quarter and believes there is a path to push towards 60 percent or
higher tolling over a multi-year time horizon. AltaGas also
continued to actively hedge merchant export volumes to proactively
lock-in structural margins and de-risk cashflows.
Performance across the balance of the Midstream platform was
strong and in line with AltaGas' expectations. Although gas
processing volumes were down modestly year-over-year during the
third quarter of 2023 due to the turnaround at the Edmonton Ethane
Extraction Plant ("EEEP") and lower processing volumes at the
Harmattan Co-stream due to a pipeline tie-in, volumes have since
recovered and continue to reflect the improved industry activity
levels and strong macro fundamentals. Volumes across the balance of
the platform were strong and included nine percent year-over-year
growth in the Montney during the
third quarter with a strong resumption of development
activity. Fractionation volumes were up 12 percent
year-over-year during the third quarter of 2023, including strong
increases across Harmattan, Younger, and North Pine. AltaGas' realized frac spread
averaged $23.75/Bbl, after
transportation costs, as most of AltaGas' frac exposed volumes were
hedged at approximately US$27.33/Bbl
in the third quarter of 2023, prior to transportation costs.
AltaGas is well hedged for the remainder of 2023 with 87 percent
of AltaGas' fourth quarter 2023 expected global export volumes
tolled or financially hedged with merchant volumes hedged at an
average Far East Index (FEI) to North American financial hedge
price of approximately US$18.13/Bbl.
The Company has also have been actively hedging its 2024 exposure,
with 76 percent of AltaGas' first quarter 2024 expected global
export volumes tolled or financially hedged with merchant volumes
hedged at an average FEI to North American financial hedge price of
approximately US$17.17/Bbl. AltaGas
is also more than 50 percent tolled or financially hedged for
second and third quarter of 2024 expected global export volumes. In
addition, approximately 77 percent of the Company's fourth quarter
2023 expected frac exposed volumes are hedged at approximately
US$26.83/Bbl, prior to transportation
costs. AltaGas continues to actively manage risk across the
Midstream platform through commercial constructs and a systematic
hedging program that covers key revenue and operating costs.
On October 20, 2023, AltaGas
entered a five-year transportation agreement with CN. The agreement
provides AltaGas and its customers with cost and service
predictability to support AltaGas' growing LPG exports to
Asia, which support ongoing
resource development across Western
Canada, and provides energy security to the Company's
downstream customers in Asia.
Midstream Hedge Program
|
|
|
Q4
2023
|
Q1
2024
|
Global Exports volume
hedged (%)(1)
|
87
|
76
|
Average propane/butane
FEI to North America Average hedge
(US$/Bbl)(2)
|
18.13
|
17.17
|
Fractionation volume
hedged (%)(3)
|
77
|
76
|
Frac spread hedge rate
- (US$/Bbl)(3)
|
26.83
|
28.05
|
|
|
|
|
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.
|
Utilities
Normalized EBITDA in the Utilities segment was $71 million in the third quarter of 2023,
compared to $115 million in the same
quarter of 2022 with a loss before income taxes of $16 million in the third quarter of 2023 compared
to income before income taxes of $54
million in the same quarter of 2022. The largest driver of
the year-over-year decrease in Utilities financial performance was
the larger-than-normal third quarter 2022 asset optimization
contribution at Washington Gas, which is shared with customers, and
the lost contribution of the Alaskan Utilities, which were divested
in March of 2023, and had contributed $13
million of normalized EBITDA in the third quarter of 2022.
Other factors impacting third quarter results on a year-over-year
basis included higher operating and administrative expenses during
the third quarter of 2023 and modestly lower contribution from the
WGL Retail Energy business. These factors were partially offset by
contributions from ongoing asset investments across the network
through various Accelerated Replacement Programs ("ARPs") and a
favorable foreign exchange rate.
AltaGas continued to upgrade critical infrastructure and make
ongoing investments on behalf of its customers during the third
quarter of 2023 with the deployment of $204
million of invested capital, including $130 million deployed across the Company's
various ARP 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. The modernization investments
should also bring long-term operating cost benefits to our
customers. AltaGas will continue to make these critical 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 cost management across
the Utilities platform, managing capital investments, and driving
the best outcomes for its customers and stakeholders.
On August 29, 2023, the SCC of VA
adopted the Hearing Examiner's report for the Virginia rate case, approving approximately
US$41 million of incremental base
rates plus approximately US$32
million of SAVE surcharges for a total rate increase of
approximately US$73 million and ROE
of 9.65 percent.
On October 20, 2023, Washington
Gas executed a definitive agreement with Opal Fuels to support a
RNG project at the Prince William County Landfill in Virginia. As part of the agreement, Washington
Gas will become an offtake customer for RNG production volumes and
purchase key interconnect infrastructure for approximately
US$25 million, which is anticipated
to become part of the Washington Gas' rate base and will be
eligible to earn a 100-bps premium to its allowed ROE in the
jurisdiction as part of the Virginia Energy Innovation Act, subject
to regulatory approval.
On October 25, 2023, Washington
Gas received a proposed system modernization extension in
Maryland which will run through to
2028. The Public Law Judge has recommended that the commission
approve approximately US$330 million
of capital to modernize our system and improve safety and
reliability. This builds on our ARP program in Virginia that was recently extended to the end
of 2027.
Washington Gas' D.C. and Maryland rate cases remain ongoing, and the
Company expects a decision prior to 2023 year-end in Maryland and during the first quarter of 2024
in D.C.
Corporate/Other
The Corporate/Other segment realized a $4
million normalized EBITDA loss in for the third quarter of
2023, compared to income of $10
million in the same quarter of 2022. Loss before
income taxes in the Corporate/Other segment was $96 million in the third quarter of 2023,
compared to a loss of $77 million in
the same quarter of 2022. The decrease in normalized EBITDA was
mainly due to a lower contribution from Blythe, higher expenses
related to employee incentive plans due to the increase in AltaGas'
share price during the third quarter of 2023, as well as higher
operating and administrative expenses.
Pipestone Asset Acquisition
On August 31, 2023, AltaGas
announced that it has entered into a definitive agreement with
Tidewater to acquire: 1) the Pipestone Natural Gas Processing Plant
Phase I and Phase II expansion project; 2) the adjacent Dimsdale
Natural Gas Storage Facility; 3) the Pipestone condensate truck-in/truck-out
terminal; and 4) the associated gathering pipeline systems required
to operate these assets for total consideration of $650 million. This equated to approximately 7.2x
estimated run-rate normalized EBITDA, inclusive of synergies and
the incremental capital that AltaGas will deploy to complete the
Pipestone Phase II development project.
The Pipestone transaction
strengthens AltaGas' midstream value chain through an expanded
footprint in the Alberta Montney and provides meaningful long-term
LPG supply for our global exports' platform. The transaction is
expected to be five percent EPS accretive in 2025 forward while
being 0.1x net debt to normalized EBITDA credit accretive in 2025
forward. The acquisition is contingent on Tidewater and AltaGas
making a positive final investment decision on the Pipestone Phase
II project.
Subsequent to the announcement AltaGas has received all material
regulatory approvals, including Competition Act approval, and is
currently working on other condition precedents to close the
transaction, which continues to be anticipated prior to 2023
year-end.
AltaGas 2023 Investor Day
AltaGas will host a 2023 Investor Day, where the Company will
provide an update on its corporate strategy and outlook, share its
near- and- long-term priorities, and provide 2024 financial
guidance. To register select the link below or go to AltaGas'
Events and Presentations webpage.
Date:
Tuesday, December 5th, 2023
Time:
9:00 a.m. ET – 12:00pm ET
Registration:
Click Here to Register
CONSOLIDATED FINANCIAL RESULTS
|
Three Months
Ended
September 30
|
($
millions)
|
2023
|
2022
|
Normalized EBITDA
(1)
|
$
252
|
$
233
|
Add
(deduct):
|
|
|
Depreciation and
amortization
|
(109)
|
(106)
|
Interest
expense
|
(95)
|
(85)
|
Normalized income tax
expense
|
(12)
|
(6)
|
Preferred share
dividends
|
(7)
|
(10)
|
Other
(2)
|
(1)
|
1
|
Normalized net
income (1)
|
$
28
|
$
27
|
|
|
|
Net income (loss)
applicable to common shares
|
$
(50)
|
$
(48)
|
Normalized funds
from operations (1)
|
$
142
|
$
170
|
|
|
|
($ per share, except
shares outstanding)
|
|
|
Shares outstanding -
basic (millions)
|
|
|
During the period
(3)
|
282
|
281
|
End of
period
|
282
|
282
|
|
|
|
Normalized net income -
basic (1)
|
0.10
|
0.10
|
Normalized net income -
diluted (1)
|
0.10
|
0.10
|
|
|
|
Net income (loss) per
common share - basic
|
(0.18)
|
(0.17)
|
Net income (loss) per
common share - diluted
|
(0.18)
|
(0.17)
|
(1)
|
Non‑GAAP financial
measure; see discussion in Non-GAAP Financial Measures section at
the end of this news release.
|
(2)
|
"Other" includes
accretion expense, net income applicable to non-controlling
interests, foreign exchange gains, and NCI portion of non-GAAP
adjustments. 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.
|
(3)
|
Weighted
average
|
Normalized EBITDA for the third quarter of 2023 was $252 million, compared to $233 million for the same quarter in 2022. There
were several positive and negative contributors underpinning the
year-over-year variance. The largest factors leading to the
variance are described in the Business Performance sections
above.
For the third quarter of 2023, the average Canadian/U.S. dollar
exchange rate increased to 1.34 from an average of 1.31 in the same
period of 2022, resulting in an increase in normalized EBITDA of
approximately $4 million.
Loss before income taxes for the third quarter of 2023 was
$51 million, compared to income
before income taxes of $48 million
for the same quarter in 2022. Net loss applicable to common shares
for the third quarter of 2023 was $50
million ($0.18 per share),
compared to $48 million ($0.17 per share) for the same quarter in 2022.
Please refer to the "Three Months Ended September 30" section of the Q3 2023 MD&A
for further details on the variance in income before income taxes
and net income applicable to common shareholders.
Normalized net income was $28
million ($0.10 per share) for
the third quarter of 2023, compared to $27
million ($0.10 per share) for
the same quarter of 2022. The slight increase was mainly due to the
same factors impacting normalized EBITDA and lower preferred share
dividends, partially offset by higher interest expense, higher
normalized income tax expense, and higher depreciation expense.
Please refer to the "Non-GAAP Financial Measures" section of
the Q3 2023 MD&A for further details on normalization
adjustments.
Normalized funds from operations for the third quarter of 2023
was $142 million ($0.50 per share), compared to $170 million ($0.60
per share) for the same quarter in 2022. The decrease was mainly
due to lower net income after taxes after adjusting for non-cash
items, higher interest expense and lower normalized current income
tax recovery, partially offset by the same factors impacting
normalized EBITDA.
Interest expense for the third quarter of 2023 was $95 million, compared to $85 million for the same quarter in 2022. The
increase was driven by higher average interest rates, a higher
average Canadian/U.S. dollar exchange rate, $2 million of incremental hybrid interest costs
due to hybrid notes replacing preferred shares, which was partially
offset by lower average debt balances. For the three months ended
September 30, 2023, AltaGas recorded
total interest expense of $9 million
on the subordinated hybrid notes.
AltaGas recorded an income tax recovery of $12 million for the third quarter of 2023,
compared to income tax expense of $7
million for the same quarter of 2022. The decrease in income
tax expense was mainly due to lower income before income taxes.
Current tax recovery of $7 million
was recorded in the third quarter of 2023, compared to current tax
recovery of $13 million recorded in
the same quarter of 2022. The decrease in current tax recovery was
mainly due to the composition of loss 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 third quarter results, AltaGas expects to achieve
the upper half of guidance ranges that were previously disclosed in
December 2022, including:
- 2023 Normalized EPS guidance of $1.85 - $2.05,
compared to 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 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. 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 $1 billion
in 2023, excluding asset retirement obligations. The capital spend
includes 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-Dec-23
|
15-Dec-23
|
Series A
Preferred Shares
|
$0.19125
|
30-Sept-23
to
30-Dec-23
|
29-Dec-23
|
15-Dec-23
|
Series B
Preferred Shares
|
$0.49258
|
30-Sept-23
to
30-Dec-23
|
29-Dec-23
|
15-Dec-23
|
Series E
Preferred Shares
|
$0.337063
|
30-Sept-23
to
30-Dec-23
|
29-Dec-23
|
15-Dec-23
|
Series G
Preferred Shares
|
$0.265125
|
30-Sept-23
to
30-Dec-23
|
29-Dec-23
|
15-Dec-23
|
Series H
Preferred Shares
|
$0.51778
|
30-Sept-23
to
30-Dec-23
|
29-Dec-23
|
15-Dec-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, November 3, at 9:00 a.m.
MT (11:00 a.m. ET) to discuss
third quarter 2023 results and other corporate developments.
Date:
Friday, November 3, 2023
Time:
9:00 a.m. MT (11:00 a.m. ET)
Webcast:
https://events.q4inc.com/attendee/502093728
Dial-in (Audio only):
1-646-307-1591 or toll free at 1-800-599-5188
Shortly after the conclusion of the call a replay will be
available on the Company's website or by dialing 647-362-9199 or
toll free 1-800-770-2030, Conference ID 9053242#.
AltaGas' Consolidated Financial Statements and accompanying
notes for the third 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.sedarplus.ca.
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 September 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
September 30
|
Nine Months
Ended
September 30
|
($
millions)
|
2023
|
2022
|
2023
|
2022
|
Income (loss) before
income taxes (GAAP financial measure)
|
$
(51)
|
$
48
|
$
751
|
$
638
|
Add:
|
|
|
|
|
Depreciation and
amortization
|
109
|
106
|
331
|
327
|
Interest
expense
|
95
|
85
|
293
|
231
|
EBITDA
|
$
153
|
$
239
|
$
1,375
|
$
1,196
|
Add
(deduct):
|
|
|
|
|
Transaction costs
related to acquisitions and dispositions (1)
|
10
|
2
|
31
|
4
|
Unrealized losses
(gains) on risk management contracts (2)
|
91
|
(3)
|
(24)
|
(107)
|
Losses (gains) on sale
of assets (3)
|
—
|
3
|
(319)
|
(3)
|
CEO transition
(4)
|
1
|
—
|
6
|
—
|
Settlement of pension
plan (5)
|
—
|
—
|
2
|
—
|
Reversal of provisions
on investments accounted for by the equity method
(6)
|
—
|
(3)
|
—
|
(3)
|
Accretion
expenses
|
3
|
2
|
8
|
5
|
Foreign exchange
gains
|
(6)
|
(7)
|
(6)
|
(9)
|
Normalized
EBITDA
|
$
252
|
$
233
|
$
1,073
|
$
1,083
|
(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 (Loss).
Transaction costs include expenses, such as legal fees, which are
directly attributable to the acquisition or disposition. Please
refer to Note 3 of the unaudited condensed interim Consolidated
Financial Statements as at and for the three and nine months ended
September 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 (Loss). Please refer to Note 13 of the
unaudited condensed interim Consolidated Financial Statements as at
and for the three and nine months ended September 30, 2023 for
further details regarding AltaGas' risk management
activities.
|
(3)
|
Included in the "other
income" line item on the Consolidated Statements of Income (Loss).
Please refer to Note 3 of the unaudited condensed interim
Consolidated Financial Statements as at and for the three and nine
months ended September 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 (Loss).
|
(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 (Loss). Please refer to Note 18 of the unaudited
condensed interim Consolidated Financial Statements as at and for
the three and nine months ended September 30, 2023 for further
details regarding the wind-up of the pension plan.
|
(6)
|
Relates to the return
of certain costs associated with the Constitution pipeline project
as a result of its cancellation in February 2020. These costs are
included in the "income from equity investments" line item on the
Consolidated Statements of Income (Loss).
|
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 (Loss) using income (loss) 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
September 30
|
Nine Months
Ended
September 30
|
($
millions)
|
2023
|
2022
|
2023
|
2022
|
Net income (loss)
applicable to common shares (GAAP financial measure)
|
$
(50)
|
$
(48)
|
$
528
|
$
345
|
Add (deduct)
after-tax:
|
|
|
|
|
Transaction costs
related to acquisitions and dispositions (1)
|
7
|
1
|
22
|
2
|
Unrealized losses
(gains) on risk management contracts (2)
|
70
|
(1)
|
(19)
|
(78)
|
Non-controlling
interest portion of non-GAAP adjustments (3)
|
—
|
—
|
—
|
5
|
Losses (gains) on sale
of assets (4)
|
—
|
3
|
(217)
|
(4)
|
CEO transition
(5)
|
1
|
—
|
5
|
—
|
Loss on redemption of
preferred shares, including foreign exchange impact
(6)
|
—
|
74
|
—
|
84
|
Settlement of pension
plan (7)
|
—
|
—
|
2
|
—
|
Reversal of provisions
on investments accounted for by the equity method
(8)
|
—
|
(2)
|
—
|
(2)
|
Normalized net
income
|
$
28
|
$
27
|
$
321
|
$
352
|
(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
(Loss). Transaction costs include expenses, such as legal fees,
which are directly attributable to the acquisition or disposition.
Please refer to Note 3 of the unaudited condensed interim
Consolidated Financial Statements as at and for the three and nine
months ended September 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 (Loss). Please refer to Note 13
of the unaudited condensed interim Consolidated Financial
Statements as at and for the three and nine months ended September
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 (Loss).
|
(4)
|
The pre-tax amounts are
included in the "other income" line item on the Consolidated
Statements of Income (Loss). Please refer to Note 3 of the
unaudited condensed interim Consolidated Financial Statements as at
and for the three and nine months ended September 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 (Loss).
|
(6)
|
Comprised of the loss
on the redemption of Series K Preferred Shares on March 31, 2022
and the redemption of U.S. dollar denominated Series C Preferred
Shares on September 30, 2022, including an associated foreign
exchange loss of approximately $69 million. The loss on redemption
of preferred shares is recorded on the "loss of redemption of
preferred shares" line on the Consolidated Statements of Income
(Loss).
|
(7)
|
Relates to the
completion of the wind-up of the Canadian defined benefit pension
plan in the second quarter of 2023. The settlement charge is
included in the "other income" line on the Consolidated Statements
of Income (Loss). Please refer to Note 18 of the unaudited
condensed interim Consolidated Financial Statements as at and for
the three and nine months ended September 30, 2023 for further
details regarding the wind-up of the pension plan.
|
(8)
|
Relates to the return
of certain costs associated with the Constitution pipeline project
as a result of its cancellation in February 2020. These costs are
included in the "income from equity investments" line item on the
Consolidated Statements of Income (Loss).
|
Normalized net income and normalized net income per share are
used by Management to enhance the comparability of AltaGas'
earnings, as these metrics reflect the underlying performance of
AltaGas' business activities.
Normalized Funds From Operations
|
Three Months
Ended
September 30
|
Nine Months
Ended
September 30
|
($
millions)
|
2023
|
2022
|
2023
|
2022
|
Cash from (used by)
operations (GAAP financial measure)
|
$
3
|
$
(384)
|
$
967
|
$
827
|
Add
(deduct):
|
|
|
|
|
Net change in
operating assets and liabilities
|
124
|
550
|
(298)
|
(3)
|
Asset retirement
obligations settled
|
7
|
2
|
12
|
5
|
Funds from
operations
|
$
134
|
$
168
|
$
681
|
$
829
|
Add
(deduct):
|
|
|
|
|
Transaction costs
related to acquisitions and dispositions (1)
|
10
|
2
|
31
|
4
|
CEO transition
(2)
|
1
|
—
|
6
|
—
|
Current tax
expense (recovery) on asset sales (3)
|
(3)
|
—
|
34
|
(1)
|
Normalized funds from
operations
|
$
142
|
$
170
|
$
752
|
$
832
|
(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 (Loss).
Transaction costs include expenses, such as legal fees, which are
directly attributable to the acquisition or disposition. Please
refer to Note 3 of the unaudited condensed interim Consolidated
Financial Statements as at and for the three and nine months ended
September 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 (Loss).
(3) Included in the "current income tax
expense (recovery)" line item on the Consolidated Statements of
Income (Loss).
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
September 30
|
Nine Months
Ended
September 30
|
($
millions)
|
2023
|
2022
|
2023
|
2022
|
Cash used in (from)
investing activities (GAAP financial measure)
|
$
243
|
$
534
|
$
(395)
|
$
661
|
Add
(deduct):
|
|
|
|
|
Net change in non-cash
capital expenditures (1)
|
12
|
(2)
|
(23)
|
1
|
Net invested
capital
|
$
255
|
$
532
|
$
(418)
|
$
662
|
Asset
dispositions
|
1
|
—
|
1,073
|
245
|
Disposals of equity
investments (2)
|
1
|
—
|
1
|
—
|
Invested
capital
|
$
257
|
$
532
|
$
656
|
$
907
|
(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 nine months ended
September 30, 2023 for further details.
|
(2)
|
Relates to escrow
account proceeds received from AltaGas' previous investment in
Meade Pipeline Co. LLC (Meade). Upon close of the sale in 2019,
various escrow accounts were established to provide the purchaser a
form of recourse for the settlement of indemnification
obligations.
|
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
September 30
|
Nine Months
Ended
September 30
|
($ millions, except
effective income tax rates)
|
2023
|
2022
|
2023
|
2022
|
Revenue
|
3,030
|
3,056
|
9,709
|
10,190
|
Normalized EBITDA
(1)
|
252
|
233
|
1,073
|
1,083
|
Income (loss) before
income taxes
|
(51)
|
48
|
751
|
638
|
Net income (loss)
applicable to common shares
|
(50)
|
(48)
|
528
|
345
|
Normalized net income
(1)
|
28
|
27
|
321
|
352
|
Total assets
|
22,183
|
23,504
|
22,183
|
23,504
|
Total long-term
liabilities
|
11,073
|
11,991
|
11,073
|
11,991
|
Invested capital
(1)
|
257
|
532
|
656
|
907
|
Cash from (used in)
investing activities
|
(243)
|
(534)
|
395
|
(661)
|
Dividends declared
(2)
|
79
|
74
|
237
|
223
|
Cash from (used by)
operations
|
3
|
(384)
|
967
|
827
|
Normalized funds from
operations (1)
|
142
|
170
|
752
|
832
|
Normalized effective
income tax rate (%) (1)
|
23.5
|
12.5
|
20.6
|
19.7
|
Effective income tax
rate (%)
|
23.2
|
14.3
|
25.3
|
20.5
|
|
Three Months
Ended
September 30
|
Nine Months
Ended
September 30
|
($ per share, except
shares outstanding)
|
2023
|
2022
|
2023
|
2022
|
Net income (loss) per
common share - basic
|
(0.18)
|
(0.17)
|
1.87
|
1.23
|
Net income (loss) per
common share - diluted
|
(0.18)
|
(0.17)
|
1.86
|
1.22
|
Normalized net income -
basic (1)
|
0.10
|
0.10
|
1.14
|
1.25
|
Normalized net income -
diluted (1)
|
0.10
|
0.10
|
1.13
|
1.24
|
Dividends declared
(2)
|
0.28
|
0.27
|
0.84
|
0.80
|
Cash from (used by)
operations
|
0.01
|
(1.37)
|
3.43
|
2.94
|
Normalized funds from
operations (1)
|
0.50
|
0.60
|
2.67
|
2.96
|
Shares outstanding -
basic (millions)
|
|
|
|
|
During the period
(3)
|
282
|
281
|
282
|
281
|
End of
period
|
282
|
282
|
282
|
282
|
1) Non‑GAAP financial
measure or non-GAAP financial ratio; see discussion in Non-GAAP
Financial Measures section of the MD&A.
|
2) Dividend declared
per common share per quarter: $0.265 per share beginning March
2022, increased to $0.28 per share effective March 31,
2023.
|
3) 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: the Company's ability to deliver on its 2023
guidance and the expectation that its results will be in the upper
half of the guidance range; the expected project costs, progress
and completion of the MVP project and the timing thereof;
anticipated benefits of the MVP project for customers; the Company
considering a monetization of its equity stake in the MVP project
as part of its plan to reach its net debt to normalized EBITDA
target; the anticipated benefits of the transaction with Tidewater
and the expected closing date thereof; the expectation that AltaGas
will deploy incremental capital to complete the Pipestone Phase II
development project; the expectation that the Pipestone transaction will be EPS accretive,
net debt to normalized EBITDA credit accretive and the timing
thereof; the expectation that Tidewater and AltaGas will make a
positive final investment decision on the Pipestone Phase II
project; anticipated benefits of the five-year transportation
agreement with CN for AltaGas, its customers, resource development
in Western Canada and customers in
Asia; expected timing of the
maiden voyages for each of the Boreal Pioneer and the Boreal
Voyager; anticipated benefits of AltaGas' two new VLGCs including
reduction in shipping costs to Asia, removing pricing volatility and
de-risking maritime shipping costs on a long-term basis; the impact
of the Company's two new VLGCs on its plan to commercially de-risk
its Midstream business; the expectation that AltaGas will have
three Time Charters operating in 2024; anticipated construction of
a fourth time charter and the timing thereof; the expectation that
Washington Gas will become an offtake customer for RNG production,
that it will purchase key interconnect infrastructure and the
expected cost thereof in connection with the agreement entered into
with Opal Fuels; anticipated benefits of the agreement Washington
Gas entered into with Opal Fuels including the interconnect
infrastructure becoming part of its rate base, the expected premium
to Washington Gas' allowed ROE, subject to regulatory approvals,
and the expectation that transportation of RNG through the network
will lower the carbon-intensity of energy supply; the expected use
of proceeds from Washington Gas' US$200
million private placement; topics to be discussed at
AltaGas' 2023 Investor Day and the timing thereof; AltaGas'
continued commitment to driving value creation for its stakeholders
and de-risking the Midstream business; the belief that Canada's upstream industry will deliver robust
natural gas and NGL production growth and the expected impacts
therefrom; AltaGas' ability to provide the best value for LPG
customers in North America and
Asia; the Company's focus on
energy affordability and reliability with regional climate goals;
AltaGas' ability to execute its strategic priorities; the Company's
focus on portfolio optimization, improving return on invested
capital, commercially and financially de-risking operations and
deleveraging to reach AltaGas' net debt to EBITDA target; the
growth trajectory of AltaGas' investment proposition; AltaGas'
ability to increase direct market access through long-term LPG
tolling agreements, the progress of its tolling initiatives and the
belief that AltaGas can increase tolling; expectations for AltaGas'
active hedging program and expected outcomes therefrom; AltaGas'
continued commitment to upgrading critical infrastructure and
making ongoing investments through the Company's ARP modernization
programs and the anticipated benefits therefrom; the Company's
focus on cost management across the Utilities platform, managing
capital investments and best outcomes for its customers and
stakeholders; the expectation that the extension for Washington
Gas' proposed modernization extension in Maryland will run through to
2028; anticipated timing, results and impacts of
applications, hearings, and decisions of rate cases before
Utilities regulators; AltaGas' ability to execute its long-term
corporate strategy; AltaGas' focus on growing normalized EPS and
FFO while targeting lower leverage ratios; the expectation that
AltaGas' long-term strategy will support steady dividend growth
and ongoing capital appreciation for its long-term
shareholders; AltaGas' long-term objectives for managing capital;
and expected self-funded capital program of $930 million in 2023 including rollover of
$90 million capital investments from
2022, excluding asset retirement obligations.
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 and acquisition 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; cost of providing
retirement plan benefits; failure of service providers; risks
related to pandemics, epidemics or disease outbreaks; 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 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, Annual Information Form, and press releases are
available through AltaGas' website at www.altagas.ca or through
SEDAR+ at www.sedarplus.ca.
SOURCE AltaGas Ltd.