CALGARY, AB, Dec. 5, 2023– AltaGas Ltd. (“AltaGas” or the “Company”) (TSX: ALA) announces its 2024 guidance and outlook; provides an update on its long-term strategic plan, and releases its 2023 Environment, Social and Governance (ESG) report, including progress toward achieving ESG goals.

HIGHLIGHTS

(all financial figures are unaudited and in Canadian dollars unless otherwise noted)

• 2024 normalized EPS¹ guidance of $2.05 – $2.25 represents approximately ten percent year-over-year growth using midpoint-to-midpoint guidance figures. Strong year-over-year growth is underpinned by strong business performance in each of the core segments.
• 2024 normalized EBITDA¹ guidance of $1,675 million – $1,775 million represents approximately eleven percent year-over-year growth using midpoint-to-midpoint guidance figures. Strong growth in AltaGas’ Midstream and Utilities businesses is expected to more than offset the lost contribution from the Alaska Utilities sale, which was divested in the first quarter of 2023.
• AltaGas is maintaining a disciplined and equity self-funded capital program of $1.2 Billion in 2024, excluding Asset Retirement Obligations (ARO). The 2024 capital program is more weighted towards low-risk organic growth in the Utilities; however, the program reflects a significant shift relative to prior years with Utilities 2024 capital accounting for approximately 58 percent of the annual capital budget and Midstream accounting for approximately 36 percent. Higher annual Midstream capital reflects the strong outlook for the Midstream business and strong growth opportunities, including the Pipestone II project.
• AltaGas is increasing returns of capital to shareholders through a six percent increase to its anticipated common share dividend of $1.19 per share for 2024. The Company remains committed to delivering regular, sustainable, and annual dividend increases while maintaining a prudent dividend payout target range of 50 – 60% of earnings, which balances the need to return capital to shareholders and fund the Company’s significant organic growth program within an equity self-funding model.
• The Midstream segment is positioned to deliver strong year-over-year organic growth in 2024 and beyond. This growth is underpinned by the Pipestone acquisition, continued facility optimization, and growth initiatives across the value chain.
• AltaGas and its joint-venture partner, Royal Vopak, have commenced site clearing work at the Ridley Island Energy Export Facility (“REEF”), representing another important step in the project’s development. Site clearing activities including logging, clearing, and drainage will help determine the project’s readiness prior to reaching a Final Investment Decision (“FID”).
• Earnings growth within the Utilities segment will be underpinned by operational excellence, stronger earned ROEs, contribution from recent rate cases, and ongoing rate base growth from the Company’s Accelerated Pipeline Replacement programs (“ARPs”).
• AltaGas remains committed to reducing financial leverage to move towards its 4.5x Net Debt¹ to normalized EBITDA¹. Monetization of the Mountain Valley Pipeline (“MVP”) is the most immediate path to moving towards this goal, which will be evaluated in 2024 as the pipeline moves toward completion. AltaGas also expects a stronger period of financial flexibility to evaluate the optionality associated with its strong investment capacity, which could be used for leverage reduction, post the Pipestone II and REEF projects coming online, assuming REEF reaches a positive FID in the first half of 2024.
• AltaGas released its 2023 ESG Report, which features 2022 performance data and highlights progress made towards its ESG goals in the core areas of emission reductions, safety, and diversity.

¹. Non-GAAP measure; see discussion in the advisories of this news release and reconciliation to US GAAP financial measures shown in AltaGas’ Management’s Discussion and Analysis (MD&A) as at and for the period ended September 30, 2023, which is available on www.sedar.com.

“We look forward to executing on our strategic plan and delivering strong value for AltaGas’ shareholders in 2024” said Vern Yu, AltaGas’ President and Chief Executive Officer. “We are exiting 2023 on a strong footing and expect to achieve financial results for 2023 in the upper half of our guidance ranges.

“AltaGas has a unique set of assets with strong competitive advantages that position the Company to deliver industry-leading earnings and dividend growth. We remain committed to operating with an equity self-funding model and see a clear path to moving towards our 4.5x Net Debt¹ to normalized EBITDA¹ target. We have a tremendous pipeline of growth projects, but we’ll be disciplined in our capital allocation process to funnel these opportunities to ensure we deliver the best risk-adjusted returns and balance our competing priorities, including long-term leverage reduction.

“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 basis. We have visible and low-risk growth opportunities through new customer additions, system expansion, and modernization opportunities. AltaGas will continue to act in our customers best interests during this period of higher inflation and interest rates, balancing the critical needs of energy affordability and reliability with rate increases and regional climate goals.

“After a decade of being structurally challenged by a lack of take-away capacity, Canada is set to deliver significant natural gas and NGL production growth in the years ahead, with our Midstream business realizing strong growth opportunities. As liquified natural gas (“LNG”) projects on the Canadian West Coast come online in the next couple of years, we expect numerous customer-backed opportunities to add infrastructure to support these developments. This includes opportunities to connect increasing Canadian liquefied petroleum gases (“LPGs”) and other vital energy products into premiere downstream markets in Asia.

“As transporters of energy, we serve a crucial role delivering energy affordably, reliably, and safely, while working towards a lower carbon future. Today, with the release of our 2023 ESG report we’re pleased to highlight the progress we’ve made against our commitments to safety and reliability, emissions reductions, and diversity and inclusion. While it’s clear that we need to reduce our GHG emissions, we need to take a balanced approach, where affordability, reliability, and energy security are part of the mix.”

AltaGas expects to achieve normalized EPS¹ of $2.05 – $2.25 and normalized EBITDA¹ of $1,675 million – $1,775 million in 2024. These guidance figures represent AltaGas’ expectations for continued growth in consolidated performance of the business.

Approximately 55 percent of 2024 normalized EBITDA¹ is expected to be generated by the Utilities segment. Utilities normalized EBITDA¹ growth is expected to be driven by positive contribution from the Maryland and District of Columbia rate cases, continued rate base growth through ongoing capital investments through various ARPs, new customer meter growth, normal 2024 weather, and ongoing cost management, which is being partially offset by the lost contribution of the Alaskan Utilities which divestiture closed in the first quarter of 2023 and higher operating costs associated with a higher inflationary and cost environment.

Washington Gas currently has active rate case applications in Maryland and the District of Columbia. Within Maryland the requested rates are designed to collect an incremental US$49 million in annual revenue, while the District of Columbia requested rates are designed to collect an incremental US$48 million in annual revenue with rates forecasted to take effect in December 2023 and the second quarter of 2024, respectively. AltaGas has ARPs in place across all three jurisdictions within Washington Gas as well as SEMCO in Michigan. New meter growth is expected to continue across AltaGas’ Utilities jurisdictions at approximately ~1% over a multi-year time horizon.

AltaGas can grow rate base by up to an eight percent CAGR through 2028 through population growth and new meter connects and ongoing modernization investments across the network, which are focused on long-term safety and reliability. The Utilities growth rate in the year ahead will be a function of relative opportunities and calls on capital across the platform as AltaGas focuses on driving the best-balanced outcomes for all stakeholders.

Approximately 45 percent of 2024 normalized EBITDA¹ is expected to be generated by the Midstream segment. Strong year-over-year growth in normalized EBITDA¹ is driven by the Pipestone and Dimsdale asset acquisition, strong global export volumes and higher margins, higher utilization at the Company’s existing Northeastern B.C. facilities, and the absence of wildfires impacts in Alberta. These positive factors are expected to be partially offset by a lower contribution from Allowance of Funds Used During Construction (“AFUDC”) on the MVP and lower co-generation revenue at Harmattan.

AltaGas operates a fully integrated Midstream platform that connects Western Canadian producers to global markets. From wellhead to tidewater, the Company is focused on providing its customers with safe and reliable service. This includes providing access to global markets for North American LPGs and providing North American producers and aggregators with the best netbacks for their propane and butane, while delivering diversity of supply and affordable lower carbon energy to markets in Asia.

Strong macro fundamentals, commodity prices, and improving natural gas egress out of Western Canada are providing a strong outlook for natural gas and natural gas liquids (“NGL”) production growth in the coming years. This includes LNG terminals coming online mid-decade on the Canadian West Coast, which will bring associated LPGs. AltaGas continues to see increasing demand for LPG exports through the Ridley Island Propane Export Terminal (“RIPET”) and Ferndale LPG export terminal driven by the Company’s structural shipping advantage to serve demand markets in Asia and access to low-cost supply. This structural advantage has magnified recently due to restricted vessel traffic through the Panama Canal, caused by lower water levels, and is driving strong demand for more Canadian LPGs in Asia.

AltaGas continues to focus on de-risking its business commercially through long-term tolling contracts while actively managing remaining commodity price exposure. In 2023, AltaGas made strong progress on this initiative with increased tolling within the Global Exports business and believes there is a clear path to push towards 60 percent or higher tolling over a multi-year time horizon. AltaGas will also continue to actively and systematically hedge remaining merchant export volumes to lock-in the structural margins and cashflows. The Company has hedged approximately 73 percent of AltaGas’ 2024 expected global export volumes through tolling arrangements or financial hedges with the latter including an average Far East Index (“FEI”) to North American financial hedge price of US$15.60/Bbl for non-tolled propane and butane volumes. The Company is also 78 percent hedged on ocean freight costs for expected 2024 export volumes through a combination of time-charters, tolling, and financial hedges.

AltaGas also continues to de-risk the Global Exports supply chain. In October 2023, AltaGas entered a five-year transportation agreement with Canadian National Railway Company, which provides AltaGas, and its customers, cost and service predictability. AltaGas also expects to take delivery of two new very large gas carriers (“VLGCs”) in December 2023 and March 2024. These two seven-year time charters will reduce total shipping costs to Asia by approximately 25 percent compared to normal pricing on a standard VLGC. The vessels’ deployment will also remove pricing volatility and de-risk maritime shipping costs on a long-term basis. Following the delivery of these two vessels AltaGas will have three Time Charters operating in 2024 and a fourth under construction, which is set to be commissioned in the first half of 2026.

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December 3, 2023

Alberta Innovates supports and highlights innovation across Alberta.
Here are ten of our favourite stories of science and technology innovation from the last few years.

NTWIST: machine learning in a processing facility

NTWIST has harnessed the predictive power of machine learning. Their software platform implements artificial intelligence algorithms in a user-friendly package that communicates with existing equipment in an industrial facility and existing control room software.

The platform uses existing sensor data to generate process recommendations and forecast production in real time, with less effort and better outcomes. It allows businesses to make critical decisions by utilizing their operational data, thereby reducing costs and increasing profitability.

NTWIST improves productivity with fewer resources, leading to the conservation of natural resources and reduced environmental footprints. “Achieving operational excellence in a processing facility is crucial as the world transitions to a high-production, low-waste environment,” says Chowdary Meenavilli, NTWIST co-founder.

Alberta Innovates provided $200,000 through its Digital Innovation in Clean Energy (DICE) program. Since the approval of the DICE funding, NTWIST has expanded its team by four full-time and six part-time employees.

Visit www.ntwist.com

Carbonix: an emerging Indigenous-owned cleantech company

Canada’s resource extraction and energy industries are continually looking for new ways to lessen their environmental footprint. As an Indigenous-owned clean-tech company, Carbonix uses blend of science and Indigenous customary practices to help forestry, mining, and oil and gas industries remediate land and water to its natural state. Over the past decade, they have worked alongside chemists at Trent University to develop several IPs around converting low-value, sustainably available feedstocks into high-value-add solutions. Project funding from Alberta Innovates and Ontario Centre of Excellence then helped Carbonix demonstrate proof of concept and cemented a business relationship with energy giant, Suncor. Having steadily scaled their process to full-pilot operations, they now plan to scale their efficacy testing to meet the unique needs of oil sands sector.

In March 2022, Carbonix received $900,000 from the Clean Resource Innovation Network to fund an Ontario/Alberta based project called “Tailings Management Through Nano Technology.”

Visit www.carbonix.ca

2SWater: water monitoring for cities and industry

2SWater is a cleantech company helping cities and industry monitor what’s in their water with sensors designed to easily plug into existing equipment. The sensor pulls in a small amount of water and turns it into superheated plasma before analyzing it. The result is a near-instant report of metals, chemicals, and other contaminants. 2SWater’s sensor updates every few minutes, which can keep equipment from being damaged due to poor water quality, as well as helping industries avoid fines and environmental damage. It can also be used to ensure clean drinking water. The process is highly automated and is built to require minimal maintenance. 2SWater’s sensors can be fitted to detect dozens of heavy metals and contaminants and are used in mining, forestry, municipal waste, and other sectors.

Recently, 2SWater was the winner of the fifth annual Mining Cleantech Challenge in Denver and CEO Anthea Sargeaunt, was selected as one of the Canada Clean50 for 2021.

Visit www.2swater.com

Nanalysis: high-performance benchtop NMR spectrometer manufacturer

Nuclear Magnetic Resonance spectrometers help researchers understand molecular compounds, but existing technology was unwieldy and required too many operators.

In 2009, Nanalysis began working on improving the laboratory instrumentation. Since then, the team was able to turn a bulky, difficult-to-use scientific apparatus into a device that can sit on a bench and be operated by a single technician.

The company began over a decade ago with three employees. In 2012, they were joined by Susanne Riegel, a previous recipient of the Alberta Innovates’ Graduate Student Scholarship and are now publicly listed and employ 70+ people.

Nanalysis accessed support from Alberta Innovates through the Alberta Innovation Voucher program, the Product Demonstration program, and the Commercialization Associate program.

“Without the early assistance from Alberta Innovates, our path to commercialization would have been significantly more difficult,” says Bruce Lix, Director of Business Development

Visit www.nanalysis.com

Alta ML: using artificial intelligence to solve real-world problems

Artificial intelligence (AI) is expected to add more than $15 trillion to the global economy by 2030, and AltaML is on the forefront of conceptualizing, developing, and commercializing AI and machine learning (AI/ML) solutions.

“AI/ML talent is a scarce resource concentrated in certain jurisdictions, including Edmonton, and this is the foundation of AltaML’s competitive advantage,” says Cory Janssen, founder and CEO. With the support of the University of Alberta, Alberta Innovates and others, AltaML has developed world-class expertise. The company offers a proven, collaborative approach to applied AI – validated in over 200 use cases with over 50 partners – developing data-driven solutions that enable better decision-making.

AltaML was recognized by AI Global (now known as the Responsible AI Institute) with the 2020 Start-up Leader Award for Responsible AI Design work in the financial, health, and social services sectors.

Visit www.altaml.com

AutonomIQ: autonomous testing that speeds up software releases

We live in a world where users want software to work perfectly the first time. AutonomIQ is a cloud-based platform that lets developers and IT teams autonomously test, release, and deploy software to meet this high expectation. The platform uses deep-learning and AI algorithms to detect changes, enable self-healing for test assets, and provide critical diagnostics. By transforming the traditionally manual, or partially manual, software testing process into a fully autonomous one, the platform ensures that software releases and deployments are of the highest quality in the shortest amount of time. In their case studies, AutonomIQ was shown to provide a greater than 50 per cent improvement in speed and quality compared to existing tools and techniques, saving companies significant time and money.

AutonomIQ won $10,000 as part of the 2020 Inventures Startup Pitch Event competition. In 2022, it was acquired by the American-based automated testing platform company, Sauce Labs.

Visit www.autonomiq.io

Alberta IoT: positioning Alberta as a world leader in IOT and emerging technology

Alberta IoT’s mission is to nurture and support the growth of Alberta’s Internet of Things (IoT) and emerging technology sectors. A member-driven, non-profit, they advocate for and actively recruit new businesses and IoT expertise, coordinate research and innovation, and provide access to resources that support business growth. Current initiatives include: the Fast Track Program, an accelerator for established businesses; Science Park, a virtual platform that bridges the gap between students, academia, and industry; and a New to Canada Start Up Visa Program that helps scale-up businesses relocate to Alberta and Alberta-based businesses to expand globally. Through its Centre of Excellence, Alberta IoT promotes the province as a top region of IoT excellence, communicating to the international market that emerging technologies can thrive in Alberta.

In May 2022, Alberta IoT received $1.57 million in funding from Prairies Economic Development Canada (PrairiesCan) and Alberta Innovates to help support its Fast Track Program and Science Park initiative.

Visit www.albertaiot.com

Genoptic LED: using nano-optoelectronics to create a more efficient power chip

In the quest to improve energy efficiencies, Genoptic LED Inc. is leading the way with its revolutionary super-mini smart-chip Integrated Circuit (IC) technology. Its proprietary NanoGen IC Power Chip helps electronic systems and technologies to operate more efficiently with minimal heat signatures, as well as drastic reduction in size and weight. The chip can reduce up to 70 per cent of power-related components versus traditional technologies with an energy efficiency exceeding 91 per cent. Genoptic initially gained commercial success with its LED Sign division, through which it secured some sizable purchase agreements with large national brands. With over 14 novel patent families, the applications powered by the NanoGen chip range from solar devices to power adaptors and supplies to computers, tablets, mobile devices, and more.

In March 2022, Genoptic LED Inc. received $5 million from Prairies Economic Development Canada to establish a manufacturing operation to mass produce advanced hybrid solar panel and battery storage technology.

Visit www.genoptic.com

Copysmith: endless ideas at the click of a button

Copysmith aims to make copywriting easier by employing machine learning to reduce the time needed to write engaging articles, social media posts and ads.

Their process takes advantage of a Generative Pre-trained Transformer language model, which allows it to generate writing that is difficult to distinguish from copy written by humans. The model learns and adapts based on what information the user gives it and what results they are happiest with. Over time, it takes those lessons to create content better tailored towards the user’s particular style.

Copysmith’s process builds its content one word at a time, rather than using pre-stocked phrases and sentiments, ensuring content is unique and avoids plagiarism. The company currently offers over 30 templates, ranging from product descriptions to press releases and is currently working on adding new languages options.

As a researcher in machine learning, Copysmith founder Jasmine Wang knew copywriting could be made easier with artificial intelligence.

Visit www.copysmith.ai

Amii: bridging world-leading research and industry

In the early 2000s, investments were being made that would turn Alberta into a beacon for some of the top minds in artificial intelligence and machine learning. In 2000, the Alberta government set aside a $500 million endowment to create the Alberta Ingenuity Fund (AIF), also known as the Alberta Heritage Foundation for Science and Engineering Research (AHFSER). One of the early AlF programs was a competition to establish research groups for promising scientific fields. One of the groups created would go on to become the Alberta Innovates Centre for Machine Learning, later the Alberta Machine Intelligence Institute (Amii).

The goal of the research group Amii is to attract and recruit the best and brightest AI researchers from across the globe to work in the province.

Amii has helped make the University of Alberta one of the world’s top-five machine learning and artificial intelligence organizations.

Visit: www.amii.ca

NT4

Calgary, Alberta – Tourmaline Oil Corp. (TSX – TOU) (“Tourmaline” or the “Company”) is pleased to announce that its Board of Directors has declared a quarterly cash dividend on its common shares of C$0.28 per common share. The dividend will be payable on December 29, 2023 to shareholders of record at the close of business on December 15, 2023. This quarterly cash dividend is designated as an “eligible dividend” for Canadian income tax purposes.

Management Update

As part of Tourmaline’s planned leadership succession process, Mr. Earl McKinnon has been appointed Chief Operating Officer of the Company. Mr. McKinnon has served as the Vice President, Operations of Tourmaline since 2015 and has been instrumental in the Company’s development of improved drilling and completions techniques, cost reduction initiatives, enhanced well design, and relentless focus on execution of all of Tourmaline’s operations. Mr. Al Bush, who joined Tourmaline in 2009 and served as Chief Operating Officer from 2013 to 2023, has been a key contributor to Tourmaline’s profitable growth and success to date. He will continue as a member of Tourmaline’s senior management team as Vice President, Corporate Affairs and will ensure an orderly transition of the COO responsibilities.

In addition, Ms. Sarah Tait, currently Controller at Tourmaline, has been appointed Vice President, Finance, Mr. Jamie Heard, currently Manager, Capital Markets, has been appointed Vice President, Capital Markets, and Ms. Katie Beck, currently Associate General Counsel and Corporate Secretary, has been appointed General Counsel and Corporate Secretary of the Company. With the exception of the foregoing promotions, Tourmaline’s senior management team remains unchanged.

Reader Advisories

CURRENCY

All amounts in this news release are stated in Canadian dollars unless otherwise specified.

For further information, please contact:

Tourmaline Oil Corp.

Michael Rose

Chairman, President and Chief Executive Officer

(403) 266-5992

OR

Tourmaline Oil Corp.

Brian Robinson

Chief Financial Officer

(403) 767-3587; brian.robinson@tourmalineoil.com

OR

Tourmaline Oil Corp.

Scott Kirker

Chief Legal Officer and External Affairs

(403) 767-3593; scott.kirker@tourmalineoil.com

OR

Tourmaline Oil Corp.

Jamie Heard

Vice President, Capital Markets

(403) 767-5942; jamie.heard@tourmalineoil.com

OR

Tourmaline Oil Corp.

Suite 2900, 250 – 6th Avenue S.W.

Calgary, Alberta T2P 3H7

Phone: (403) 266-5992; Facsimile: (403) 266-5952

E-mail: info@tourmalineoil.com

Website: www.tourmalineoil.com

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