Compounding Long-term Dividends at 5-7% CAGR
Strong Investment Capacity
Cashflow Growth Drives Expanding Investment Capacity
Prudent Capital Allocation with Investment Capacity Growing in Years Ahead
Balance
Sheet
Capacity
Net Debt/normalized EBITDA¹ target
of 4.5x
Monetization of non-core assets
Larger capacity once Pipestone II and REEF
are fully operational
Shareholder
Returns
Target mid-single digit average annual
EPS1 CAGR between 2024-2028
Target payout ratio of ~50-60% EPS
Dividends can grow up to EPS growth
Annual Investment Capacity
~$0.3B
2024E
~$1.3-1.5B
2024E-2028E
Optional Capital
~$0.4B
Organic growth
Tuck-in M&A
Debt Reduction
Share buybacks, once
leverage targets reached
ARP
~$0.4B
Organic
Growth
Prioritize Midstream maintenance and
Utilities system betterment/customer
growth (modest rate base growth)
Utilities modernization programs and core
Midstream growth projects
Other optional capital can be deployed,
post those priorities
Approximately one third of
growth capex is related to
Utility ARP investments
CFO
Dividends
Paid
Incremental
Debt Capacity²
Maintenance
~$0.4B
(Utilities Depreciation +
Midstream Sustaining)
Investment
Capacity
1 Capital allocation utilizes risk-adjusted project hurdles and ranks against
I the various alternatives, including competing projects, repayment of debt,
M&A, and share buybacks (post reaching leverage targets).
I
Notes: 1) Non-GAAP measure; see discussion in the advisories; 2) Incremental debt capacity is additional debt that can be taken on while holding leverage ratios flat; *See "Forward-looking Information"
AltaGas
Meaningful Enterprise Investment Capacity; Reinvestment Grows Investment Capacity
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