AltaGas Announces Second Quarter 2019 Results
ON AUGUST 1, ALTAGAS LTD. REPORTED ITS SECOND QUARTER 2019 FINANCIAL RESULTS, REAFFIRMED ITS OUTLOOK FOR THE REMAINDER OF 2019, AND PROVIDED AN UPDATE ON ITS BUSINESS AND ITS NEAR-TERM PRIORITIES, WHICH REMAIN ON TRACK.
AltaGas achieved normalized EBITDA(1) of $203 million, a 22 percent increase over second quarter 2018 normalized EBITDA of $166 million. This increase was driven by contributions from WGL Holdings, Inc. (WGL) and the recently commissioned Ridley Island Propane Export Terminal (RIPET).
AltaGas also announced $1.3 billion in asset sales to-date in 2019, positioning the company to achieve its $1.5 - $2 billion 2019 asset monetization program designed to de-lever the balance sheet and fund organic growth.
Additional highlights from the second quarter include:
Net income applicable to common shares was $41 million ($0.15 per share) in the second quarter compared to $1 million ($0.01 per share) in the second quarter of 2018. Normalized net loss(1) was $5 million ($0.02 per share) in the second quarter compared to normalized net income of $23 million ($0.13 per share) in the second quarter of 2018.
Normalized funds from operations (FFO)(1) were $120 million, compared to $121 million in the second quarter of 2018.
AltaGas’ 2019 de-leveraging strategy remains on plan, with net debt reduced by approximately $2 billion year-to-date, before including the impact of the recently announced asset sale.
AltaGas’ business outlook remains unchanged, with expected normalized EBITDA in the range of $1.2 - $1.3 billion and normalized FFO of $850 - $950 million.
On May 31, 2019, SEMCO Gas filed a request with the Michigan Public Service Commission seeking authority to increase base rates by approximately US$38 million annually.
AltaGas’ RIPET, Canada’s first marine propane export facility, was completed and placed into service. The facility’s first ship departed the terminal for Asia in late May, with two additional shipments in June.
Creating Value for Western Canadian Natural Gas Producers
In the second quarter of 2019, RIPET was successfully commissioned with volumes steadily increasing to its current 40,000 bbl/d capacity. The facility’s first shipment to Asia departed the terminal in late May, with two additional shipments in June. AltaGas’ volume capacity translates into approximately two ships per month with the possibility of a periodic additional ship.
“RIPET is performing as expected, and we are seeing meaningful contributions from this asset. Our ability to handle the molecule through the entire value chain uniquely positions us to offer our customers a complete solution and, ultimately, higher netbacks for their product. This provides a competitive advantage that we expect will attract additional volumes to our system and further growth across our integrated platform in the future.”
- Randy Crawford, President and Chief Executive Officer
For more on our second quarter performance, read our full news release or join our conference call and webcast.
Conference Call and Webcast Details
August 1, 2019
8:00 a.m. MT (10:00 a.m. ET)
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(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 June 30, 2019, which is available on www.sedar.com.
Webcast and Conference Call Presenters
Randy Crawford, our President and Chief Executive Officer, summarizes the strategic and operational progress we achieved in the second quarter of 2019.
President and Chief Executive Officer
Our Executive Vice President and Chief Financial Officer, James Harbilas, provides a detailed review of our second quarter financial performance.
D. James Harbilas
Executive Vice President and Chief Financial Officer
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