ALTAGAS ANNOUNCES THIRD QUARTER 2022 RESULTS

ALTAGAS ANNOUNCES THIRD QUARTER 2022 RESULTS

HIGHLIGHTS
(all financial figures are unaudited and in Canadian dollars unless otherwise noted)

• Normalized EPS¹ of $0.10 and GAAP EPS² of $(0.17) in the third quarter of 2022 compared to $0.01 and $0.09 in the third quarter of 2021, respectively.
• Normalized FFO per share¹ of $0.60 and GAAP FFO per share³ of $(1.37) in the third quarter of 2022 compared to $0.59 and $0.75 in the third quarter of 2021, respectively.
• Normalized EBITDA¹ of $233 million and income before income taxes of $48 million in the third quarter of 2022 compared to $239 million⁴ and $89 million in the third quarter of 2021, respectively. Strong Utilities results were offset by a lower contribution from the Midstream segment.
• The Utilities segment reported normalized EBITDA of $115 million and income before income taxes⁵ of $54 million in the third quarter of 2022 compared to $62 million and income before income taxes of $102 million in the third quarter of 2021, respectively. Strong Utilities growth was driven by strong asset optimization activities, strong margins within the Retail Marketing Business and continued capital investments across the network.
• The Midstream segment reported normalized EBITDA of $108 million and income before income taxes of $71 million in the third quarter of 2022 compared to $181 million and $100 million in the third quarter of 2021, respectively. Strong Global Export volumes of approximately 110,000 Bbls/d of liquified petroleum gases (LPGs) were more than offset by a combination of mainly short-term factors, including lower realized Asian-to-Canadian butane spreads, high commodity price volatility, and higher rail and ocean freight costs.
• On May 26, 2022, AltaGas announced an agreement to sell its Alaskan Utilities to TriSummit Utilities Inc. (“TriSummit”) for US$800 million (approximately CAD$1.1 billion). Cash proceeds will be used to fund long-term growth opportunities and continue to strengthen the Company’s balance sheet, while concentrating AltaGas’ Utilities platform in the high growth Eastern U.S. region. AltaGas continues to progress the work required to gain all State and Federal approvals to close the divestiture and expects the transaction to close during the first quarter of 2023.
• On July 5, 2022, AltaGas purchased the remaining 25.97 percent of Petrogas Energy Corp. (“Petrogas”) from Idemitsu Canada Corporation (“Idemitsu”), for total cash consideration of $285 million. The acquisition provides AltaGas the ability to further integrate and optimize the west coast LPG export platform and solidifies the Company’s position as the leading provider of North American LPGs from the west coast.
• Subsequent to the quarter-end, AltaGas, along with its partner Whitecap Resources Ltd. (“Whitecap”), were selected by the Government of Alberta to enter into an agreement for continued evaluation work on the Rolling Hills Carbon Sequestration Hub (“Rolling Hills”), northwest of Calgary, AB.
• On August 17, 2022, AltaGas closed its offering of $250 million of 7.35 percent Fixed-to-Fixed Rate Subordinated Notes, Series 2, due August 17, 2082. AltaGas used the net proceeds of the offering to redeem the cumulative redeemable five-year rate reset preferred shares, series C.

https://www.newswire.ca/news-releases/altagas-announces-third-quarter-2022-results-867209341.html