AltaGas Announces Fourth Quarter and Full-year 2019 Results

ON FEBRUARY 28, ALTAGAS LTD. REPORTED ITS FOURTH QUARTER 2019 FINANCIAL RESULTS, REAFFIRMED ITS OUTLOOK FOR 2020, AND PROVIDED AN UPDATE ON ITS BUSINESS, AND ITS NEAR-TERM PRIORITIES

AltaGas achieved normalized EBITDA of $425 million and $1.3 billion for the full-year, a 26 percent year-over-year increase and at the top of the 2019 guidance range of $1.2 to $1.3 billion. This financial performance was underpinned by strong growth in the Midstream segment including significant contributions from the Ridley Island Propane Export Terminal (RIPET) and strong contributions from the Utilities segment.

AltaGas also announced it executed $2.2 billion in asset sales in 2019, exceeding its asset monetization target of $1.5 - $2.0 billion.

Additional highlights from our fourth quarter include:

  • Normalized EBITDA1 was $425 million, compared to $394 million in the prior year, with strong contributions from the Ridley Island Propane Export Terminal (RIPET), Petrogas and Washington Gas' utilities.

  • Normalized net income was $186 million ($0.67 per share) in the fourth quarter and $324 million ($1.17 per share) for the full-year, a 66 percent year-over-year increase.
  • Normalized funds from operations (FFO)1 was $332 million for the fourth quarter and $895 million for the full-year.

  • Reduced net debt by approximately $3 billion in 2019, significantly decreasing interest expense in the fourth quarter. 

  • 2020 outlook remains unchanged with expected normalized EBITDA in the range of $1.275 - $1.325 billion and normalized EPS of $1.20 - $1.30 per share, assuming an effective tax rate of 22 percent.

  • Progressed the integrated energy export strategy, commissioning RIPET - Canada's first marine propane export facility - in the second quarter. Volumes exported through RIPET averaged approximately 36,000 bbl/d in the fourth quarter and included two ships to Asian markets per month on average.

  • Completed the Marquette Connector Pipeline (MCP) in the fourth quarter, providing system optionality and increasing reliability and diversity of supply to SEMCO Gas’ customers.

  • Subsequent to quarter end, AltaGas’ subsidiary, Washington Gas, filed a rate case in the District of Columbia requesting US$35 million increase in base rates with a return on equity of 10.4 percent. 

Executing Our Strategy

2019 was a transformational year at AltaGas. We successfully executed our business strategy and delivered strong financial and operating results at the top end of our guidance range. We completed $2.2 billion in non-core asset sales, exceeding our $1.5 to $2.0 billion target, and refocused on our Utilities and Midstream businesses. We also executed a $1.39 billion capital program, the largest in our company’s history, bringing RIPET and the Marquette Connector into service on-time and on-budget. We reduced net debt by approximately $3 billion, strengthened our balance sheet, solidified our investment grade credit rating and are now positioned to invest in organic growth opportunities.

 

Looking to the future we are now well positioned as a diversified, low-risk, high-growth energy infrastructure company with ample investment opportunities in our Utilities and Midstream businesses. We enter 2020 with a clear line of sight on a significant portfolio of organic growth opportunities with a strengthened balance sheet and the financial flexibility to execute.
Randy Crawford, President and Chief Executive Officer

 


Read more about our progress in 2019 and the outlook for 2020 in our Message to Shareholders, from President & Chief Executive Officer Randy Crawford.


Conference Call and Webcast Details

For more on our fourth quarter and 2019 performance, read our full news release or join our conference call and webcast.

Date: February 28, 2020
Time: 9:00 a.m. MT (11:00 a.m. ET)
Dial-in: 1-647-427-7450 or toll-free at 1-888-231-8191
Webcast: Join the webcast
News Release: Read more
Presentation: View

(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 December 31, 2019, which is available on www.sedar.com.

Webcast and Conference Call Presenters


Photo of Randy

Randy Crawford, our President and Chief Executive Officer, summarizes the strategic and operational progress we achieved in the fourth quarter of 2019.

Randy Crawford
President and Chief Executive Officer

 

 

 

 

Photo of Tim

Our Executive Vice President and Chief Financial Officer, James Harbilas, provides a detailed review of our fourth quarter and 2019 financial performance.

D. James Harbilas
Executive Vice President and Chief Financial Officer

 

 

 


Presentation

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