AltaGas Value Proposition

POWERED BY LPC 1000 PER EX BY MINDORO 130300 10 AltaGas LDPERC Forward-Looking Information This presentation contains forward-looking information (forward-looking statements). Words such as "may", "can", "would", "could", "should", "likely", "will", "intend", "contemplate", "plan", "anticipate", "believe", "aim", "seek", "future", "commit", "propose", "contemplate", "estimate", "focus", "strive", "forecast", "expect", "project", "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 AltaGas Ltd. (AltaGas or the Corporation) or any affiliate of the Corporation, are intended to identify forward-looking statements. In particular, this presentation contains forward-looking statements with respect to, among other things, business objectives, strategy, 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: AltaGas' expectations and beliefs surrounding the energy evolution, including that natural gas will be critical in the energy transition globally; expectations regarding global population growth and increasing demand for energy; future demand for natural gas and LPG; expectations surrounding Asian propane and butane import needs; the expectation that Canadian propane and butane supply will increase materially; the expectation that global energy demand growth will rise 15% by 2050; the belief that balancing energy affordability, reliability and climate change is critical for long-term success; AltaGas' Midstream and Utilities ESG priorities; enterprise ESG goals for emissions, safety and diversity and inclusion; AltaGas' focus areas including equity self-funding model, commercial de-risking, continued de-leveraging, optimizing returns and capital allocation; AltaGas' intention to deliver on its core objectives; expectations regarding export volume growth post-REEF and delivering customers the best LPG netbacks under long-term tolling arrangements; expectations surrounding the integration of the Pipestone assets and expected benefits of the Pipestone acquisition; commercial de-risking; AltaGas' ability to strengthen the Midstream value chain; the expectation that Canadian LNG developments will create adjacent opportunities; projected WCSB LPG available for exports; projected RIPET tolling for forward indicative year, the expectation that AltaGas' structural shipping advantage will continue; the belief that AltaGas has robust growth opportunities in the global LPG market; projected global exports tolling agreements; the expectation that AltaGas will become the preeminent Midstream platform in Western Canada; expectations and near-term priorities for Rolling Hills and Pacific Northwest Hydrogen Hub; the expectation of full FEED for REEF with FID expected in H1/24; anticipated improved earnings, strong customer growth, continued network modernization, system extension opportunities and climate and energy efficiency initiatives driving better outcomes for all stakeholders in Utilities; the belief that electrification would increase emissions and cripple economic activity; AltaGas' commitment to building alliances with advocacy groups and working with governments to ensure stakeholders understand affordability, reliability, energy security and climate benefits of natural gas; expected benefits of improving returns at WGL and closing the ROE gap; accelerated replacement program spending through 2028; expectations surrounding the Prince William County landfill RNG interconnection; WGL and SEMCO's RNG advancements; anticipated material long-term opportunities for gas utilities resulting from climate focus; AltaGas' focus on multi-year growth trajectory across Utilities and Midstream, continued expansion, continued deleveraging with the goal of reaching 4.5x net debt/normalized EIBTDA, dividend growth and compounding shareholder value; AltaGas' financial roadmap; expectations regarding AltaĠas' investment capacity; AltaGas' capital allocation framework; the belief that selling MVP is the quickest path to accelerating deleveraging; AltaGas' path to achieving its leverage target; the belief that AltaGas will have additional financial flexibility once Pipestone II and REEF are online with further flexibility from asset optimization, organic growth, cost management and disciplined capital allocation; AltaGas' focus on de-risking through commercial frameworks; AltaGas' dividend policy and anticipated dividend growth; anticipated dividend payout through 2028; expected annual dividend CAGR through 2028; anticipated normalized EPS, normalized EBITDA and planned capital program; key 2024 budget assumptions; the expectation that AltaGas will achieve results in the upper half of the 2023 normalized EBITDA guidance range; anticipated 2024 normalized EBITDA and normalized EPS; the 2024 capital budget and expected allocations among Utilities, Midstream and Corporate/Power; quarterly normalized EBITDA by segment and on a consolidated basis; 2024 hedging philosophy; and expectations regarding normalized earnings, normalized EBITDA and net debt/normalized EBITDA through 2024. 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: anticipated timing of asset sale and acquisition closings; effective tax rates, 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; key 2024 budget assumptions 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: risks related to conflict in Eastern Europe; 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; cyber security, information, and control systems; climate-related risks; environmental regulation risks; regulatory risks; litigation; changes in law; Indigenous and treaty rights; political uncertainty and civil unrest; decommissioning, abandonment and reclamation costs; reputation risk; weather data; capital market and liquidity risks; interest rates; internal credit risk; foreign exchange risk; debt financing, refinancing, and debt service risk; counterparty and supplier risk; technical systems and processes incidents; dependence on certain partners; growth strategy risk; construction and development; underinsured and uninsured losses; impact of competition in AltaGas' businesses; counterparty credit risk; composition risk; collateral; rep agreements; market value of 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 Corporation's Annual Information Form for the year ended December 31, 2022 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 presentation, 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 presentation as intended, planned, anticipated, believed, sought, proposed, estimated, forecasted, expected, projected or targeted and such forward-looking statements included in this presentation, 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 presentation. 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 presentation are expressly qualified by these cautionary statements. Financial outlook information contained in this presentation 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 presentation 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. NON-GAAP MEASURES This presentation 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 in AltaGas' Management's Discussion and Analysis (MD&A) as at and for the period ended September 30, 2023. 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. 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 (Loss) using net income (loss) adjusted for pre tax depreciation and amortization, interest expense, and income tax expense (recovery). Normalized EBITDA includes additional adjustments for transaction costs related to acquisitions and dispositions, unrealized losses (gains) on risk management contracts, gains on investments, gains on sale of assets, restructuring costs, dilution loss on equity investment, provisions (reversal of provisions) on assets, provisions on investments accounted for by the equity method, foreign exchange gains, and accretion expenses related to asset retirement obligations. AltaGas presents normalized EBITDA as a supplemental measure. Normalized EBITDA is used by Management to enhance the understanding of AltaGas' earnings over periods. 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 earnings per share (EPS) is calculated with reference to normalized net income divided by the average number of shares outstanding during the period. Normalized net income is calculated from the Consolidated Statements of Income (Loss) using net income (loss) applicable to common shares adjusted for transaction costs related to acquisitions and dispositions, unrealized losses (gains) on risk management contracts, non-controlling interest portion of non-GAAP adjustments, gains on investments, gains on sale of assets, provisions on assets, restructuring costs, dilution loss on equity investment and provisions on investments accounted for by the equity method. Normalized net income per share is used by Management to enhance the comparability of AltaGas' earnings, as these metrics reflect the underlying performance of AltaGas' business activities. Funds from operations is calculated from the Consolidated Statements of Cash Flows and is defined as cash from operations before net changes in operating assets and liabilities and expenditures incurred to settle asset retirement obligations. Net debt is used by the Corporation to monitor its capital structure and financing requirements. It is also used as a measure of the Corporation's overall financial strength and is presented to provide this perspective to analysts and investors. Net debt is defined as short-term debt (excluding third-party project financing obtained for the construction of certain energy management services projects), plus current and long-term portions of long-term debt, less cash and cash equivalents, and statutory tax rate change. Normalized net income (loss) is used by Management to enhance the comparability of AltaGas' earnings, as it reflects the underlying performance of AltaGas' business activities. 2