AltaGas Reports Strong First Quarter 2019 Results
On May 2, AltaGas Ltd. reported its first quarter 2019 financial results and provided an update on its business, including the expansion of its integrated western Canadian midstream service offering to include global energy export capabilities, through its Ridley Island Propane Export Terminal (RIPET).
AltaGas achieved normalized EBITDA of $466 million, a 109 percent increase over first quarter 2018 normalized EBITDA of $223 million. The year-over-year increase reflects strong contributions from WGL Holdings Inc. which were partially offset by asset sales. Normalized funds from operations (FFO) were $376 million, an increase of approximately 122 percent over the first quarter of 2018.
AltaGas also announced that its subsidiary, WGL Midstream, Inc., has reached an agreement for the sale of WGL Midstream’s entire interest in the Stonewall Gas Gathering System to a wholly-owned subsidiary of DTE Energy Company for total gross proceeds of approximately $370 million (US$275.3 million). The transaction is subject to the execution of a definitive agreement following the satisfaction of certain third-party notice and election periods.
Additional highlights from our first quarter include:
Net income applicable to common shares was $809 million ($2.93 per share) in the first quarter compared to $49 million ($0.28 per share) in the first quarter of 2018. Normalized net income was $202 million ($0.73 per share) in the first quarter compared to $70 million ($0.40 per share) in the first quarter of 2018.
Normalized utility adjusted FFO (UAFFO) was $301 million ($1.09 per share) in the first quarter compared to $140 million ($0.79 per share) in the first quarter of 2018.
AltaGas’ 2019 funding and deleveraging strategy is progressing as expected. In the first quarter AltaGas reduced net debt by approximately $1.7 billion.
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 April 22, 2019, Washington Gas filed an application with the Maryland Public Service Commission to increase base rates and charges.
Charting a New Course for Canadian Energy Exports
Delivered on-time and on budget, RIPET began introducing feedstock to fill the LPG tank, significantly expanding AltaGas’ western Canadian midstream service offering. RIPET is Canada’s first propane export facility, and is the cornerstone of the Company’s integrated strategy in western Canada, leveraging AltaGas’ existing gathering, processing and fractionation assets, while providing higher netbacks and market optionality to customers.
"This is an important and historic milestone for AltaGas, our project partners, western Canadian natural gas producers and our customers in Asia. RIPET has come online at a crucial time for the Canadian energy industry, providing domestic natural gas producers with much-needed access to tidewater and more attractive global pricing.”
- Randy Crawford, President and Chief Executive Officer
For more on our first quarter performance, read our full news release or join our conference call and webcast.
Conference Call and Webcast Details
May 2, 2019
8:00 a.m. MT (10:00 a.m. ET)
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Shortly after the conclusion of the call, a replay will be available commencing at 12:00 p.m. MT (2:00 p.m. ET) on May 2, 2019 by dialing 403-451-9481 or toll free1-855-859-2056. The passcode is 8744909. The replay will expire at 9:59 p.m. MT (11:59 p.m. ET) on May 9, 2019.
Webcast and Conference Call Presenters
Randy Crawford, our President and Chief Executive Officer, summarizes the strategic and operational progress we achieved in the first quarter of 2019.
President and Chief Executive Officer
Our Executive Vice President and Chief Financial Officer, Tim Watson, provides a detailed review of our first quarter financial performance.
Tim Watson (CFA, ICD.D)
Executive Vice President and Chief Financial Officer
Find answers to frequently asked investor questions.