AltaGas Reports Fourth Quarter and Full Year 2024 Results

Strong Operating Performance Delivers 2024 Results in Upper Half of Guidance Range

CALGARY, AB, March 7, 2025 – AltaGas Ltd. (“AltaGas” or the “Company”) (TSX: ALA) reported fourth quarter and full year 2024 results, reaffirmed 2025 guidance, and provided an update on other corporate developments.

HIGHLIGHTS

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

• Normalized EPS¹ was $0.76 in the fourth quarter and $2.18 for the full year of 2024 while GAAP EPS² was $0.68 in the fourth quarter and $1.95 for the full year of 2024. Full year normalized EPS was above the midpoint of AltaGas’ 2024 guidance range, driven by strong performance across the enterprise.
• Normalized EBITDA¹ was $520 million in the fourth quarter and $1,769 million for the full year of 2024 while income before income taxes was $231 million in the fourth quarter and $746 million for the full year of 2024. Full year normalized EBITDA was at the top-end of AltaGas’ 2024 guidance range, driven by strong business performance, including: the partial settlement of Washington Gas’ post-retirement benefit pension plan in the third quarter, record liquified petroleum gas (“LPG”) export volumes, the benefit of continued Utilities rate base investments, the addition of the Pipestone assets, and enhanced cost management at the Utilities.
• Utilities reported normalized EBITDA¹ of $336 million in the fourth quarter of 2024 compared to $311 million in the fourth quarter of 2023, while income before taxes was $186 million in the fourth quarter of 2024 compared to $207 million in the fourth quarter of 2023. The largest drivers of the eight percent year-over-year growth in Utilities normalized EBITDA were enhanced cost management, contribution from investments in rate base, and increased revenue from the 2023 District of Columbia (“D.C.”) rate case decision. These factors were partially offset by warm weather in D.C. and Michigan and lower contributions from the Retail business.
• Midstream reported normalized EBITDA¹ of $182 million in the fourth quarter of 2024 consistent with the fourth quarter of 2023, while income before taxes in the segment was $181 million in the fourth quarter of 2024 compared to $79 million in the fourth quarter of 2023. Positive contributions from increased export volumes and the addition of the Pipestone Assets were offset by lower extraction volumes due to ethane re-injection, a higher percentage of export volumes under tolling contracts in 2024 relative to 2023, and lower contribution from the Mountain Valley Pipeline (“MVP”) due to recording equity earnings instead of the allowance for funds used during construction (“AFUDC”) recorded in 2023.
• AltaGas continued to heavily invest in its Utilities business in 2024 to add new customers and enhance the safety and reliability of its system. The Company deployed $722 million of capital to the Utilities in 2024, with $360 million spent on asset modernization programs and the balance on system betterment and new meter growth. Asset modernization and system betterment will remain a key focus in 2025 and beyond, which will allow AltaGas to deliver the lowest cost and most reliable form of residential and commercial heating in its jurisdictions.
• AltaGas continues to work with numerous data center developers in Northern Virginia around building pipeline interconnects to provide natural gas for onsite power generation for new data centers. Business development and engineering work on these opportunities is expected to progress through 2025 with potential construction in 2026 and onwards. AltaGas is pursuing these opportunities on a de-risked basis through traditional rate regulated investments. These data center opportunities would further increase AltaGas’ strong Utilities growth outlook.
• Utilities system expansion opportunities progressed during the fourth quarter of 2024. SEMCO’s Keweenaw Connector Pipeline project continued with key regulatory and engineering work and now expects to seek regulatory approval in 2025. The project is focused on ensuring long-term reliable gas and system resiliency for our Michigan customers, offering diversity of supply and more reliable service to 14,000 customers in the Keweenaw Peninsula.
• AltaGas advanced a number of key Midstream growth projects in 2024:
  • The Company and Royal Vopak reached a positive final investment decision (“FID”) and commenced construction on the Ridley Island Energy Export Facility (“REEF”). REEF remains on budget and on-schedule to achieve its 2026 in-service date. With only ten shipping days to strong demand markets in Northeast Asia, REEF will efficiently deliver Canada’s vital energy products to the region and allow Canadian LPGs access to premium global markets.
  • AltaGas continued to progress construction of the Pipestone II deep cut facility in the Alberta Montney. The acid gas wells and gas gathering system have been completed, offsite fabrication has been executed in line with the project delivery schedule, and more than 40 percent of facility construction is complete. The project is on track to be in-service in 2025. Pipestone II is fully contracted under long-term take-or-pay agreements with principally all costs incurred or committed under fixed price contracts.
  • AltaGas continued to advance regulatory and engineering work across a number of gas processing, fractionation, storage and export projects, based on strong customer demand. These projects would further extend the growth outlook for AltaGas’ Midstream business.
• The Company advanced commercial contracting across the Midstream business which further de-risked cash flows:
  • Executed long-term LPG supply and tolling agreements across the global exports platform during the fourth quarter of 2024 and first quarter of 2025 achieving AltaGas’ base long-term tolling target for REEF. This includes Keyera entering a 15-year contract for 12,500 Bbls/d of LPGs at REEF.
  • Entered two agreements that have a high-single digit average contract length with a large investment grade international energy company in Northeastern B.C. (“NEBC”) for a total of 100 Mmcf/d of gas processing capacity at the Townsend facility, with associated liquids handling and fractionation.
  • Extended the contract term with a large investment grade producer at the Pipestone I facility in the Alberta Montney for five years, including gas processing, liquids handling and marketing services.
  • Entered an 18-year agreement for approximately 8,000 Bbls/d fractionation capacity at Keyera Fort Saskatchewan (“KFS”), which provides AltaGas with dedicated frac capacity Pipestone II liquids while securing take-in-kind rights for LPG volumes and provides access to Keyera’s extensive rail, storage, and logistics network in Alberta’s Industrial Heartland.
• Since entering service in June 2024, the Mountain Valley Pipeline (“MVP”) has been steadily operating under long-term 20-year contracts with investment grade counterparties. The 2.0 Bcf/d pipeline is expandable by 475 MMcf/d through additional compression and is extendable into North Carolina through the Southgate expansion project. The Southgate project filed an application with the U.S. Federal Energy Regulatory Commission (“FERC”) in February to approve its proposed shortened pipeline route. AltaGas has a ten percent non-operated equity stake in the MVP pipeline and a 5.1 percent interest in Southgate and is currently evaluating a sale of its interests with proceeds planned to accelerate AltaGas’ deleveraging plan.
• AltaGas had two financings in the fourth quarter of 2024, including Washington Gas’ execution of a note purchase agreement on October 1, 2024 to issue US$200 million of private placement notes. Of this, US$100 million was issued on October 1, 2024 at 5.40 percent with a maturity date of October 1, 2054 and the remaining US$100 million will be issued on April 1, 2025 at 4.84 percent with a maturity date of April 1, 2035. On November 18, 2024, AltaGas also executed a partial debt extinguishment of medium-term notes (“MTNs”), resulting in the derecognition of $806 million of previously issued MTNs for total consideration of $793 million.
• On December 3, 2024, AltaGas’ Board of Directors approved a six percent increase to its 2025 common share dividends to $1.26 per common share annually ($0.315 per common share quarterly). This change will be effective for the dividend that will be paid on March 31, 2025. Concurrent with the dividend increase announcement, the Company extended its five to seven percent compounded annual growth rate (“CAGR”) guidance on dividends to 2029.
• AltaGas has had a strong start to the year and is reiterating the Company’s 2025 full year guidance, including normalized EBITDA of $1,775 million to $1,875 million and normalized net income per share of $2.10 to $2.30.

CEO MESSAGE

“We are pleased with the financial results AltaGas delivered in 2024,” said Vern Yu, President and Chief Executive Officer of AltaGas. “This performance demonstrates the strength of our platform and the actions taken to enhance shareholder value. Normalized EBITDA increased by 12 percent year-over-year, reaching the high end of our guidance range. These results underscore the solid operational execution across our enterprise and robust long term energy fundamentals.

“Despite warm weather in D.C. and Michigan, the Utilities performance was strong for the year with normalized EBITDA increasing 14 percent year-over-year. These results were reflective of the active steps management took to create value through enhanced cost management, ongoing rate base investments, and new meter growth. Our Utilities are critical to balancing long-term energy reliability, affordability, and climate needs across our jurisdictions and have a bright future as the largest source of energy for households across our jurisdictions.

“Our Midstream business delivered another strong year with normalized EBITDA increasing 15 percent year-over-year, driven by record volumes in our global export business and the addition of the Pipestone assets. During the year, we actively de-risked cash flows through long-term contracting across the value chain, including reaching our base tolling target at REEF. The impact of U.S. tariffs on Canadian energy creates uncertainty and emphasizes the importance of market diversification and the long‑term advantage of AltaGas’ global exports platform. As we continue to meet the needs of our long-time U.S. partners, we believe it is critical to connect more of Canada’s vital energy products into the largest LPG demand center – Asia.

“AltaGas had a busy 2024 where we reached positive FID on REEF, executed on our growth initiatives at the Utilities, integrated the Pipestone assets, and commenced construction on two large Midstream growth projects. I am excited about the road ahead, where we will leverage the favourable long-term fundamentals for natural gas and natural gas liquids (“NGLs”), and build on 2024’s successes.”

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