ALA AltaGas Ltd

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

CALGARY, AB, March 7, 2025 /CNW/ - 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."

RESULTS BY SEGMENT

BUSINESS PERFORMANCE

Utilities

The Utilities segment reported normalized EBITDA of $336 million in the fourth quarter of 2024 compared to $311 million in the fourth quarter of 2023, while income before income taxes was $186 million in the fourth quarter of 2024 compared to $207 million in the fourth quarter in 2023. Year-over-year growth in normalized EBITDA was principally driven by lower operating and maintenance ("O&M") expenses, which more than offset the warmer-than-normal weather in D.C. and Michigan, where the Company has weather exposure. The quarter also saw positive impacts from the D.C. rate case decision in 2023, contributions from continued rate base investments, customer growth, and the higher USD/CAD exchange rate, inclusive of currency hedges. These positive factors were partially offset by lower contributions from the Retail business due to the outsized performance in the fourth quarter of 2023.

Washington Gas has an active rate case application with the Public Service Commission of the District of Columbia ("PSC of D.C.") with requested rates designed to collect an incremental US$34 million in annual revenue, net of US$12 million in Accelerated Replacement Program ("ARP") surcharge. New rates are not expected to impact the Company's 2025 financial performance. Washington Gas also has a US$215 million asset modernization extension application under review in D.C. through its District SAFE plan. In February 2025 the PSC of D.C. ordered an additional extension of PROJECTpipes 2 from May 1, 2025 through December 31, 2025 with an additional US$34 million of modernization capital being added for this period to ensure uninterrupted pipeline modernization work continues while District SAFE is being reviewed.

AltaGas continued to actively invest across its Utilities assets during the fourth quarter of 2024 with $178 million of capital deployed, including investing $85 million in the quarter through the Company's various asset modernization programs and an additional $75 million on system betterment. These investments continue to be directed towards improving the safety and reliability of the system and connecting customers to the critical energy they require to carry out everyday life. AltaGas remains committed to making these investments, while balancing the need for ongoing customer affordability.

During the fourth quarter of 2024, AltaGas continued efforts to ensure long-term operating costs are aligned with existing rate structures and allowed costs in each jurisdiction. These cost efficiencies will provide additional room for AltaGas to continue to make ongoing rate base investments to expand and modernize the network while minimizing the increase to customer bills. The Company will continue to prioritize cost management for the long-term benefit of our customers while maintaining regulatory and capital discipline.

Midstream

The Midstream segment reported normalized EBITDA of $182 million in the fourth quarter of 2024, consistent with the fourth quarter of 2023, while income before taxes was $181 million in the fourth quarter of 2024 compared to $79 million in the fourth quarter of 2023. These results were in line with expectations, as we successfully delivered on our strategic priorities to grow export volumes while de-risking the business through increasing the percent of tolling contracts in our business. The quarter included record fourth quarter export volumes and strong performance across the balance of the Midstream value chain. These positive factors were partially offset by higher ethane re-injection rates at our extraction plants, lower realized frac spreads, and lower contributions from MVP equity earnings relative to the AFUDC recorded in the fourth quarter of 2023.

AltaGas exported 122,233 Bbls/d of LPGs to Asia in the fourth quarter of 2024, which was spread across 20 Very Large Gas Carriers ("VLGCs"), including 13 VLGCs at RIPET and seven VLGCs at Ferndale. Global LPG export volumes for the full year of 2024 averaged 122,247 Bbls/d across 80 ships, representing a 15 percent year-over-year increase.

The importance of market diversification and the long‑term advantage of AltaGas' global exports platform continues to be reinforced by recent uncertainty relating to U.S. tariffs on Canadian energy. As we continue to meet the needs of our long-time U.S. partners, we believe it is critical for the Canadian energy industry to connect more of Canada's vital energy products into premium global markets. We continue to see growing Asian demand for North American west coast LPGs, which have a 60 percent minimum travel time savings relative to the U.S. Gulf Coast.

Performance across the balance of the Midstream platform was in line with the Company's expectations for the fourth quarter of 2024. Highlights include double digit year-over-year growth in gas processing, fractionation and liquids handling, and extraction volumes. AltaGas' Montney footprint was at the center of growth, which continues to benefit from increased producer activity ahead of LNG Canada's start-up. AltaGas' fourth quarter Montney processing and fractionation volumes were up 30 percent and 8 percent, on a year-over-year basis respectively, including the addition of the Pipestone assets.

AltaGas' realized frac spread averaged $20.99/Bbl, after transportation costs, as most of AltaGas' frac exposed volumes were hedged at approximately $31.15/Bbl in the fourth quarter of 2024, prior to transportation costs. AltaGas is well hedged for the first half of 2025 frac exposures with approximately 76 percent of its first half of 2025 expected frac exposed volumes hedged at approximately US$27.10/Bbl, prior to transportation costs.

In addition, approximately 87 percent of AltaGas' first half of 2025 expected global export volumes are either tolled or financially hedged with an average Far East Index ("FEI") to North American financial hedge price of approximately US$18.61/Bbl for non-tolled propane and butane volumes. AltaGas is actively contracting and hedging the balance of 2025 global export volumes, recognizing the NGL re-contracting season is more dynamic this year given the impact of tariffs on Canadian LPGs entering the U.S. AltaGas will provide a more comprehensive update on the NGL re-contracting season and hedging activities during first quarter of 2025 reporting.

2025 Midstream Hedge Program

Corporate/Other

The Corporate/Other segment reported normalized EBITDA for the fourth quarter of 2024 of $2 million, compared to $9 million in the same quarter of 2023. The decrease was mainly due to lower contributions from Blythe where CAISO transmission outages reduced merchant energy generation. Loss before income taxes in the Corporate/Other segment was $136 million in the fourth quarter of 2024, compared to $125 million in the same quarter of 2023.

CONSOLIDATED FINANCIAL RESULTS

Normalized EBITDA for the fourth quarter of 2024 was $520 million, compared to $502 million for the same quarter of 2023. The largest factors contributing to the year-over-year increase are described in the Business Performance sections above.

Normalized net income was $227 million or $0.76 per share for the fourth quarter of 2024, compared to $214 million or $0.76 per share reported for the same quarter of 2023. The increase was mainly due to lower normalized income tax expense and the same previously referenced factors impacting normalized EBITDA, partially offset by higher interest expense and higher depreciation and amortization expense. Please refer to the Non-GAAP Financial Measures section of the Press Release and MD&A for further details on normalization adjustments.

Income before income taxes was $231 million for the fourth quarter of 2024 compared to $161 million for the same quarter of 2023. The increase was mainly due to lower unrealized losses on risk management contracts, the same previously referenced factors impacting normalized EBITDA, foreign exchange gains compared to foreign exchange losses in the same quarter of 2023, and lower transaction costs related to acquisitions and dispositions. This was partially offset by higher interest expense, provisions on assets in the fourth quarter of 2024 related to EEEP and certain non-operational equipment in the Corporate/Other segment, higher depreciation and amortization expense, and higher transition and restructuring costs.

Net income applicable to common shares was $203 million or $0.68 per share for the fourth quarter of 2024, compared to $113 million or $0.40 per share for the same quarter of 2023.

Normalized FFO was $397 million or $1.33 per share for the fourth quarter of 2024, compared to $376 million or $1.33 per share for the same quarter of 2023. The increase was mainly due to the same previously referenced factors impacting normalized EBITDA, higher foreign exchange gains, higher distributions from equity investments, and lower normalized current income tax expense, partially offset by higher interest expense and the impact of non-cash items included in normalized EBITDA.

Cash from operations for the fourth quarter of 2024 was $508 million or $1.70 per share, compared to $154 million or $0.54 per share for the same quarter of 2023. Please refer to the Three months ended December 31 section of the MD&A for further details on the variance in cash from operations.

Depreciation and amortization expense for the fourth quarter of 2024 was $123 million, compared to $110 million for the same quarter of 2023.

Interest expense for the fourth quarter of 2024 was $128 million, compared to $101 million for the same quarter of 2023. The increase was driven by the issuance of additional subordinated hybrid notes in the third quarter of 2024 as well as the fourth quarter of 2023, higher average interest rates, and a higher average Canadian/U.S. dollar exchange rate. This was partially offset by higher capitalized interest and a decrease in average debt balances. Interest expense recorded on subordinated hybrid notes for the fourth quarter of 2024 was $34 million, compared to $11 million for the same quarter of 2023.

Income tax expense for the fourth quarter of 2024 was $22 million, compared to $33 million in the same quarter in 2023.

FORWARD FOCUS, GUIDANCE AND FUNDING

AltaGas continues to focus on executing its corporate strategy of building a diversified platform that operates long-life energy infrastructure assets that connect customers and markets and are positioned to provide resilient and growing value for the Company's stakeholders.

AltaGas expects to achieve guidance ranges that were previously disclosed in December 2024, including:

• 2025 Normalized EPS guidance of $2.10 - $2.30 per share, compared to actual normalized EPS of $2.18 and GAAP EPS of $1.95 in 2024; and
• 2025 Normalized EBITDA guidance of $1,775 million - $1,875 million, compared to actual normalized EBITDA of $1.77 billion and income before taxes of $746 million in 2024.

AltaGas is focused on delivering resilient and growing normalized EBITDA and normalized EPS while achieving its target leverage ratios. This strategy is designed to support steady dividend growth and provide the opportunity for ongoing capital appreciation for long-term shareholders.

AltaGas is maintaining a disciplined 2025 capital program of approximately $1.4 billion, excluding asset retirement obligations ("ARO"). The Company is allocating approximately 51 percent of AltaGas' consolidated 2025 capital to its Utilities business, approximately 45 percent to the Midstream business and the balance to the Corporate/Other segment.

The Company will fund 2025 capital requirements through a combination of internally generated cash flows, the investment capacity associated with stronger normalized EBITDA across the enterprise, and ongoing capital recycling with the planned divestiture of the Company's interest in MVP. Additional asset sales will be considered on an opportunistic basis, with any potential proceeds to be used to strengthen the balance sheet and increase financial flexibility. 

QUARTERLY COMMON SHARE DIVIDEND AND PREFERRED SHARE DIVIDENDS

The Board of Directors approved the following schedule of Dividends:

CONFERENCE CALL AND WEBCAST DETAILS 

AltaGas will hold a conference call today, March 7, at 9:00 a.m. MT (11:00 a.m. ET) to discuss Fourth quarter and full year 2024 results and other corporate developments.

Date/Time: March 7, 2025 at 9:00 a.m. MT (11:00 a.m. ET)

Dial-in: +1 437 900 0527 or toll free at +1 888 510 2154 

Webcast: https://app.webinar.net/L5da3EBqGmN

Shortly after the conclusion of the call a replay will be made available on the Company's website or by dialing +1 289 819 1450 or toll free +1 888 660 6345. The passcode is 43576#. The replay will expire at 9:59 p.m. MT (11:59 p.m. ET) on March 14, 2025.

AltaGas' Consolidated Financial Statements and accompanying notes for the fourth quarter and full year ended December 31, 2024, as well as its related Management's Discussion and Analysis, are now available online at www.altagas.ca. All documents will be filed with the Canadian securities regulatory authorities and will be posted under AltaGas' SEDAR+ profile at www.sedarplus.ca.

NON-GAAP MEASURES

This news release contains references to certain financial measures that do not have a standardized meaning prescribed by US GAAP and may not be comparable to similar measures presented by other entities. The non-GAAP measures and their reconciliation to US GAAP financial measures are shown below and within AltaGas' Management's Discussion and Analysis (MD&A) as at and for the period ended December 31, 2024. These non-GAAP measures provide additional information that management believes is meaningful regarding AltaGas' operational performance, liquidity and capacity to fund dividends, capital expenditures, and other investing activities. Readers are cautioned that these non-GAAP measures should not be construed as alternatives to other measures of financial performance calculated in accordance with US GAAP.

Normalized EBITDA

EBITDA is a measure of AltaGas' operating profitability prior to how business activities are financed, assets are amortized, or earnings are taxed. EBITDA is calculated from the Consolidated Statements of Income using income before income taxes adjusted for pre‑tax depreciation and amortization, and interest expense.

AltaGas presents normalized EBITDA as a supplemental measure. Normalized EBITDA is used by Management to enhance the understanding of AltaGas' earnings over periods, as well as for budgeting and compensation related purposes. The metric is frequently used by analysts and investors in the evaluation of entities within the industry as it excludes items that can vary substantially between entities depending on the accounting policies chosen, the book value of assets, and the capital structure.

Normalized Net Income 

Normalized net income and normalized net income per share are used by Management to enhance the comparability of AltaGas' earnings, as it reflects the underlying performance of AltaGas' business activities. Normalized EPS is calculated as normalized net income divided by the average number of shares outstanding during the period.

Normalized Funds From Operations 

Normalized funds from operations and funds from operations are used to assist Management and investors in analyzing the liquidity of the Corporation. Management uses these measures to understand the ability to generate funds for capital investments, debt repayment, dividend payments, and other investing activities.

Funds from operations and normalized funds from operations as presented should not be viewed as an alternative to cash from operations or other cash flow measures calculated in accordance with GAAP.

Invested Capital and Net Invested Capital

Invested capital is a measure of AltaGas' use of funds for capital expenditure activities. It includes expenditures relating to property, plant, and equipment and intangible assets, capital contributed to long term investments, and contributions from non-controlling interests. Net invested capital is invested capital presented net of cash paid for business acquisitions and proceeds from disposals of assets and equity investments in the period. Net invested capital is calculated based on the investing activities section in the Consolidated Statements of Cash Flows, adjusted for items such as non-cash capital expenditures, AFUDC, and contributions from non-controlling interests. Invested capital and net invested capital are used by Management, investors, and analysts to enhance the understanding of AltaGas' capital expenditures from period to period and provide additional detail on the Company's use of capital.

CONSOLIDATED FINANCIAL REVIEW 

ABOUT ALTAGAS

AltaGas is a leading North American infrastructure company that connects customers and markets to affordable and reliable sources of energy. The Company operates a diversified, lower-risk, high-growth Utilities and Midstream business that is focused on delivering resilient and durable value for its stakeholders.

For more information visit www.altagas.ca or reach out to one of the following:

Jon Morrison
Senior Vice President, Corporate Development and Investor Relations
Jon.Morrison@altagas.ca

Aaron Swanson
Vice President, Investor Relations
Aaron.Swanson@altagas.ca

Investor Inquiries
1-877-691-7199
investor.relations@altagas.ca

Media Inquiries
1-403-206-2841
media.relations@altagas.ca

FORWARD-LOOKING INFORMATION

This news release contains forward-looking information (forward-looking statements). Words such as "may", "can", "would", "could", "should", "likely", "will", "intend", "plan", "anticipate", "believe", "aim", "seek", "future", "commit", "propose", "contemplate", "estimate", "focus", "strive", "forecast", "expect", "project", "potential", "target", "guarantee", "potential", "objective", "continue", "outlook", "guidance", "growth", "long-term", "vision", "opportunity" and similar expressions suggesting future events or future performance, as they relate to the Company or any affiliate of the Company, are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, business objectives, expected growth, results of operations, performance, business projects and opportunities and financial results. Specifically, such forward-looking statements included in this document include, but are not limited to, statements with respect to the following: the Company's 2025 guidance including normalized earnings per share of $2.10 to $2.30 and normalized EBITDA of $1,775 to $1,875 million; the Company's expectation that it will achieve its 2025 guidance ranges; AltaGas' key focus areas for 2025 and beyond including asset modernization, safety, reliability and system betterment in the Utilities segment and the anticipated benefits therefrom; opportunities around data center developments, timing of potential construction associated with these opportunities and the anticipated benefits therefrom; the expectation that regulatory approval will be sought for SEMCO's Keweenaw Connector Pipeline in 2025 and the anticipated benefits of the project; the expectation that REEF will remain on-budget and on-time achieving its 2026 in-service date; anticipated benefits of REEF once it is in-service; the expectation that Pipestone II will remain on-budget and on-time achieving its 2025 in-service date; AltaGas' commitment to advancing regulatory and engineering work across a number of Midstream projects and the anticipated benefits therefrom including extending the growth outlook for AltaGas' Midstream business; AltaGas' intention to divest its 10 percent interest MVP and its 5.1 percent interest in Southgate, the intended use of proceeds therefrom and the anticipated benefits therefrom including accelerating AltaGas' deleveraging plan; the anticipated issuance by Washington Gas of US$100 million 4.85 percent private placement notes on April 1 2025 and the anticipated use of proceeds therefrom; the Company's five to seven percent CAGR guidance on dividends through 2029; the belief that the Utilities can be the largest source of energy for households across the jurisdictions where AltaGas operates; the importance of connecting Canada's energy products to Asia; the Company actively advancing its regulatory priorities in the Utilities business; timing of material regulatory filings, proceedings and decisions in the Utilities business; the Company's commitment to prioritizing cost management for the benefit of its customers while maintaining regulatory and capital discipline; AltaGas' efforts to ensure long-term operating costs are aligned with existing rate structures and allowed costs in the Utilities business and the anticipated benefits therefrom; the belief in the importance of market diversification and the long-term advantage of AltaGas' global exports platform; the Company's hedging program and AltaGas' 2025 Midstream Hedge Program estimates; AltaGas' ability to execute on its corporate strategy and the anticipated benefits therefrom; the Company's focus on delivering resilient and growing normalized EBITDA and normalized EPS while achieving target leverage ratios; AltaGas' commitment to maintaining a disciplined, self-funded 2025 capital program of approximately $1.4 billion, excluding ARO; the allocation of consolidated 2025 capital to the Company's Utilities, Midstream and Corporate/Other segments; AltaGas' plan for funding 2025 capital requirements; consideration of opportunistic asset sales and the anticipated use of proceeds therefrom; and AltaGas' dividend policy including timing for payment of such dividends.

These statements involve known and unknown risks, uncertainties and other factors that may cause actual results, events, and achievements to differ materially from those expressed or implied by such statements. Such statements reflect AltaGas' current expectations, estimates, and projections based on certain material factors and assumptions at the time the statement was made. Material assumptions include: AltaGas' effective tax rate, U.S./Canadian dollar exchange rates; inflation; interest rates, credit ratings, regulatory approvals and policies; expected commodity supply, demand and pricing; volumes and rates; propane price differentials; degree day variance from normal; pension discount rate; financing initiatives; the performance of the businesses underlying each sector; impacts of the hedging program; weather; frac spread; access to capital; future operating and capital costs; timing and receipt of regulatory approvals; seasonality; planned and unplanned plant outages; timing of in-service dates of new projects and acquisition and divestiture activities; taxes; operational expenses; returns on investments; dividend levels; and transaction costs.

AltaGas' forward-looking statements are subject to certain risks and uncertainties which could cause results or events to differ from current expectations, including, without limitation: health and safety risks; operating risks; infrastructure; natural gas supply risks; volume throughput; service interruptions; transportation of petroleum products; market risk; inflation; general economic conditions including tariffs; internal credit risk; capital market and liquidity risks; interest rates; foreign exchange risk; debt financing, refinancing, and debt service risk; counterparty and supplier risk; construction and development; cybersecurity, information, and control systems; regulatory risks; changes in law; climate-related risks; environmental regulation risks; Indigenous and treaty rights; litigation; dependence on certain partners; political uncertainty, activism, civil unrest, terrorist attacks and threats, escalation of military activity and acts of war; risks related to conflict, including the conflicts in Eastern Europe and the Middle East; decommissioning, abandonment and reclamation costs; reputation risk; weather data; technical systems and processes incidents; growth strategy risk; failure to realize anticipated benefits of acquisitions and dispositions; underinsured and uninsured losses; impact of competition in AltaGas' businesses; counterparty credit risk; composition risk; collateral; rep agreements; market value of the Common Shares and other securities; variability of dividends; potential sales of additional shares; labor relations; key personnel; risk management costs and limitations; commitments associated with regulatory approvals for the acquisition of WGL; cost of providing retirement plan benefits; failure of service providers; risks related to pandemics, epidemics or disease outbreaks; and the other factors discussed under the heading "Risk Factors" in the Company's Annual Information Form for the year ended December 31, 2024 ("AIF") and set out in AltaGas' other continuous disclosure documents.

Many factors could cause AltaGas' or any particular business segment's actual results, performance or achievements to vary from those described in this press release, including, without limitation, those listed above and the assumptions upon which they are based proving incorrect. These factors should not be construed as exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this news release as intended, planned, anticipated, believed, sought, proposed, estimated, forecasted, expected, projected or targeted and such forward-looking statements included in this news release, should not be unduly relied upon. The impact of any one assumption, risk, uncertainty, or other factor on a particular forward-looking statement cannot be determined with certainty because they are interdependent and AltaGas' future decisions and actions will depend on management's assessment of all information at the relevant time. Such statements speak only as of the date of this news release. AltaGas does not intend, and does not assume any obligation, to update these forward-looking statements except as required by law. The forward-looking statements contained in this news release are expressly qualified by these cautionary statements.

Financial outlook information contained in this news release about prospective financial performance, financial position, or cash flows is based on assumptions about future events, including economic conditions and proposed courses of action, based on AltaGas management's assessment of the relevant information currently available. Readers are cautioned that such financial outlook information contained in this news release should not be used for purposes other than for which it is disclosed herein.

Additional information relating to AltaGas, including its quarterly and annual MD&A and Consolidated Financial Statements, AIF, and press releases are available through AltaGas' website at www.altagas.ca or through SEDAR+ at www.sedarplus.ca.

SOURCE AltaGas Ltd.