Investing in AltaGas
Founded in 1994, AltaGas is headquartered in Calgary, Alberta. Today, our business comprises assets that exceed $21 billion and span North America, including clean energy infrastructure assets, and highly contracted assets that provide long-term stable cash flow.
AltaGas shares are traded under the symbol ALA on the Toronto Stock Exchange.
Our long-term strategy is to drive operational excellence and achieve superior returns on invested capital in our Midstream business and maximize the return across our Utilities.
On July 6, 2018 we acquired WGL Holdings Inc. (“WGL”), a diversified energy infrastructure company and sole owner of Washington Gas Light Company, a regulated natural gas utility headquartered in Washington D.C. serving approximately 1.2 million customers in Maryland, Virginia and Washington, D.C. WGL also has a growing natural gas midstream business and contracted clean power assets.
On October 25, 2018 AltaGas Canada Inc. (ACI) successfully completed an initial public offering (IPO). Following the IPO, AltaGas maintains a significant minority interest in ACI common shares. AltaGas Canada Inc. holds rate-regulated utility assets including; AltaGas Utilities Inc., Heritage Gas and Pacific Northern Gas, and a minority interest in entities providing natural gas to the Town of Inuvik in the Northwest Territories. ACI also holds a renewable asset portfolio that includes the 102 MW Bear Mountain Wind Park and an indirect 10 percent ownership in the fully contracted Northwest Hydro Facilities.
AltaGas has three business segments
We transact more than 3 Bcf/d of natural gas, including natural gas gathering and processing, natural gas liquids (NGL) extraction and fractionation, transmission, storage, natural gas and NGL marketing. We provide producers with an opportunity to move natural gas and natural gas liquids to premium markets in Asia through the Ridley Island Propane Export Terminal currently under construction, and through our ownership interest in Petrogas and the Ferndale Terminal. Through the WGL acquisition we acquired interests in four regulated pipelines in the Marcellus/Utica gas formation in the northeastern United States, as well as a gas supply agreement associated with the Cove Point LNG Terminal which began exporting LNG this year.
We deliver clean and affordable natural gas to approximately 1.6 million customers’ homes and businesses’ through regulated natural gas distribution utilities across five jurisdictions in the United States, and a regulated natural gas storage utility in the United States.
Our power segment includes 1,931 MW of gross capacity from natural gas-fired, hydro, wind, biomass, solar other distributed generation and energy storage assets located in two provinces in Canada and 20 states and the District of Columbia in the United States. The Power business also includes energy efficiency contracting and WGL’s retail power marketing business.
A Clear Vision and Strategy: A leading North American diversified energy infrastructure company
Our long-term strategy is to drive operational excellence and achieve superior returns on invested capital in our midstream business and maximize the return across our utilities. To accomplish this, we will leverage and enhance the strength of our asset footprint and provide our customers with premier, integrated solutions including global market access.
Stability, Sustainability, Growth
Our focus is on high quality, low-risk energy infrastructure and utility assets with strong organic growth potential, superior and immediate returns and long-term commercial agreements. Our near term priority is to de-lever our balance sheet, create financial flexibility and improve our credit metrics which will position us well for long-term shareholder value creation and growth.
Financial strength and capital discipline are fundamental cornerstones of our long-term goal to create value for shareholders by minimizing our cost of capital and maximizing our return on capital invested.
We own and operate high-quality, long-lived energy infrastructure and utility assets underpinned by strong fundamentals and long-term commercial contracts that provide stable cash flow and earnings to our shareholders. Approximately 75 percent of our normalized EBITDA is backed by medium to long-term contracts.
Geographic and sector diversification across Midstream, Utilities and Power further improves the stability and predictability of our earnings and cash flow, and we continually manage our counterparty credit risk which remains an ongoing priority.
We operate in a safe, reliable manner, working closely with governments, regulatory agencies and stakeholders to maintain positive relationships. We balance economic priorities with social and environmental values, and believe we can help meet the growing global demand for clean energy while delivering sustainable benefits to our shareholders. We integrate sustainability fundamentals into every aspect of the business. We have the internal capabilities and resources to safely deliver capital projects in close partnership with Indigenous peoples and community stakeholders.
We are continually assessing the macro and micro-economic trends impacting our business and seeking opportunities to generate value for shareholders. Growing North American gas supply and demand fundamentals provide significant opportunity for sustainable capital investment. With strong assets in strategically located markets throughout North America, we also have significant growth opportunities ahead of us – particularly within our Midstream and U.S. Utilities segments. Our focus is on those projects that deliver organic growth, with strong risk-adjusted returns and near-term contributions to normalized per share FFO and EPS, and normalized EBITDA.