AltaGas Reports Strong Fourth Quarter and Full Year Results for 2012, New Gas Assets Online in Quarter

AltaGas Reports Strong Fourth Quarter and Full Year Results for 2012, New Gas 
Assets Online in Quarter 
CALGARY, ALBERTA -- (Marketwire) -- 02/28/13 -- AltaGas Ltd.
(AltaGas) (TSX:ALA) (TSX:ALA.PR.A) (TSX:ALA.PR.U) today reported a 51
percent increase in normalized net income for fourth quarter 2012
compared to fourth quarter 2011, and a 21 percent increase for full
year 2012 compared to full year 2011. Normalized net income for full
year 2012 was $109.5 million ($1.15 per share) compared to $90.2
million ($1.07 per share) for full year 2011. Normalized net income
for fourth quarter 2012 was $46.6 million ($0.44 per share) compared
to $30.8 million ($0.36 per share) for fourth quarter 2011. 
"We have positioned AltaGas to deliver growth in earnings and cash
flow for the next several years," said David Cornhill, Chairman and
CEO of AltaGas. "We completed the largest corporate acquisition and
commissioned two of the largest natural gas processing projects in
our history. We also made considerable progress on our three
Northwest run-of-river hydro projects, which are expected to be in
service starting in 2014." 
Normalized EBITDA increased by 66 percent to $129.4 million for
fourth quarter 2012 compared to $78.1 million in fourth quarter 2011.
Normalized funds from operations increased by 78 percent to $112.0
million ($1.07 per share) for fourth quarter 2012 compared to $63.0
million ($0.73 per share) in 2011. 
Results in the fourth quarter were primarily driven by the August 30,
2012 acquisition of Semco Holding Corporation (SEMCO), natural gas
utilities in Alaska and Michigan, which performed as expected. Fourth
quarter results reflect the seasonality of the natural gas
distribution business. In the fourth quarter, AltaGas recorded a
one-time charge due to the force majeure arbitration decision related
to the Sundance B Power Purchase Arrangement. 
Normalized EBITDA increased by 27 percent to $336.9 million for 2012
compared to $265.8 million in 2011. Normalized funds from operations
increased by 28 percent to $281.0 million ($2.96 per share) for 2012
compared to $219.0 million ($2.61 per share) in 2011. 
Reported net income applicable to common shares for fourth quarter
2012 was $26.7 million ($0.25 per share) compared to $31.6 million
($0.36 per share) for fourth quarter 2011. Reported net income
applicable to common shares for full year 2012 was $101.8 million
($1.07 per share) compared to $82.7 million ($0.98 per share) for
full year 2011. 
On January 28, 2013, AltaGas and Idemitsu Kosan Co., Ltd. (Idemitsu)
signed an agreement to form the AltaGas Idemitsu Joint Venture
Limited Partnership (AltaGas Idemitsu LP). AltaGas Idemitsu LP plans
to pursue opportunities to develop long-term natural gas supply and
sales arrangements to meet the growing demand for natural gas in
Asia. AltaGas Idemitsu LP will undertake feasibility studies for the
development and construction of liquefaction facilities as part of
the proposed project to export liquefied natural gas (LNG) to markets
in Asia. AltaGas Idemitsu LP also plans to pursue opportunities to
develop a liquefied petroleum gas (LPG or propane) export business
including logistics, plant refrigeration and storage facilities.  
"The renaissance of natural gas is providing AltaGas with many
opportunities across all of our businesses. We are pleased to
announce our partnership with Idemitsu to pursue opportunities to
export energy from Canada to Asian markets. With the only natural gas
pipeline from eastern B.C. to Canada's west coast, AltaGas is well
positioned to deliver natural gas for export from Canada ahead of any
other project." 
Progress on the Northwest run-of-river projects (Northwest Projects),
which consist of the Forrest Kerr run-of-river project (Forrest Kerr
Project), McLymont Creek run-of-river project (McLymont Creek
Project), and Volcano Creek run-of-river project (Volcano Creek
Project) remains ahead of schedule and on budget. In 2012, the 195 MW
Forrest Kerr Project advanced from 10 percent completion to
approximately 75 percent completion. The intake structure and the
powerhouse are complete in the Forrest Kerr Project, as is 90 percent
of the tunneling. The in-river construction commenced in mid-November
and the sluiceway diverting the river is now in operation. The
Forrest Kerr Project is expected to be in service in mid-2014,
contingent on the availability of the Northwest Transmission Line
(NTL). AltaGas has received all material permits and licences for the
McLymont Creek Project and the Volcano Creek Project and construction
is well underway for service in late 2015.  
Monthly Common Share Dividend and Quarterly Preferred Share Dividend  


 
--  AltaGas announced today that the March 2013 dividend will be paid on
    April 15, 2013, to holders of record on March 25, 2013, of common
    shares. The ex-dividend date is March 21, 2013. The amount of the
    dividend will be $0.12 for each common share. This dividend is an
    eligible dividend for Canadian income tax purposes; 
--  The Board approved a dividend of $0.3125 per share for the period
    commencing January 1, 2013, and ending March 31, 2013, on AltaGas'
    outstanding Series A Preferred Shares. The dividend will be paid on
    April 1, 2013 to shareholders of record on March 15, 2013. The ex-
    dividend date is March 13, 2013; and 
--  The Board also approved a dividend of US$0.275 per share for the period
    commencing January 1, 2013, and ending March 31, 2013, on AltaGas'
    outstanding Series C Preferred Shares. The dividend will be paid on
    April 1, 2013, to shareholders of record on March 15, 2013. The ex-
    dividend date is March 13, 2013.

 
Financial Highlights (1) 
Effective January 1, 2012, AltaGas follows United States Generally
Accepted Accounting Principles (US GAAP). All prior comparative
information has been restated to US GAAP. 


 
--  Net income applicable to common shares for fourth quarter 2012 was $26.7
    million compared to $31.6 million for fourth quarter 2011. Net income
    applicable to common shares for 2012 was $101.8 million compared to
    $82.7 million for 2011; 
--  Results for fourth quarter 2012 were normalized for $7.4 million of
    after-tax mark-to-market losses, $1.2 million of after-tax transaction
    costs and foreign exchange losses related to the acquisition of SEMCO,
    write-down of assets of $2.1 million, a one-time statutory tax rate
    adjustment of $1.1 million and the $8.2 million charge due to the
    Sundance force majeure arbitration decision; 
--  Normalized net income was $46.6 million ($0.44 per share) for fourth
    quarter 2012 compared to $30.8 million ($0.36 per share) for fourth
    quarter 2011. Normalized net income for 2012 was $109.5 million ($1.15
    per share) compared to $90.2 million ($1.07 per share) for 2011; 
--  Normalized EBITDA was $129.4 million for fourth quarter 2012 compared to
    $78.1 million for fourth quarter 2011; Normalized EBITDA for 2012 was
    $336.9 million compared to $265.8 million in 2011; 
--  Normalized funds from operations was $112.0 million ($1.07 per share)
    for fourth quarter 2012 compared to $63.0 million ($0.73 per share) for
    fourth quarter 2011. Normalized funds from operations was $281.0 million
    ($2.96 per share) for 2012 compared to $219.0 million ($2.61 per share)
    in 2011; 
--  Reported net debt was $2,690.5 million as at December 31, 2012 compared
    to $1,334.2 million as at December 31, 2011; and 
--  Reported debt-to-total capitalization ratio was 57.4 percent as at
    December 31, 2012 compared to 49.5 percent as at December 31, 2011.

 
(1) Includes Non-GAAP financial measures. See public disclosures
available at www.altagas.ca or www.sedar.com for definitions. 
IN THE FOURTH QUARTER, ALTAGAS:  


 
--  Commissioned the Gordondale deep-cut gas plant (Gordondale) and began
    commercial operations ahead of schedule; 
--  Completed commissioning of the Co-stream facility (Co-stream) at the
    Harmattan complex (Harmattan); 
--  Began in-river work at the 195 MW Forrest Kerr Project; and 
--  Received all material permits and licences for both the McLymont Creek
    Project and Volcano Creek Project.

 
CONSOLIDATED FINANCIAL RESULTS 
Effective January 1, 2012, the Corporation follows US GAAP.
Information derived from the Consolidated Statements of Income and
Consolidated Balance Sheets for the year ended and as at December 31,
2011, along with other selected financial information for 2011, has
been restated to comply with US GAAP. All prior comparative
information that has been restated to US GAAP is labeled "restated". 


 
                                  Three Months Ended     Twelve Months Ended
                                         December 31             December 31
(unaudited)                                     2011                    2011
($ millions)                        2012  (restated)        2012  (restated)
----------------------------------------------------------------------------
                                                                            
Revenue                            525.2       333.5     1,450.3     1,270.6
Net revenue(1)                     207.6       156.0       664.6       513.1
Normalized operating                                                        
 income(1)                          96.4        56.4       234.6       184.3
Normalized EBITDA(1)               129.4        78.1       336.9       265.8
Net income applicable to                                                    
 common shares                      26.7        31.6       101.8        82.7
Normalized net income(1)            46.6        30.8       109.5        90.2
Total assets                     5,911.9     3,556.2     5,911.9     3,556.2
Total long-term liabilities      3,349.5     1,637.6     3,349.5     1,637.6
Net additions to property,                                                  
 plant and equipment               166.5       401.1     1,532.1       642.6
Dividends declared(2)               37.4        29.8       132.8       112.2
Cash flows Normalized funds                                                 
 from operations(1)                112.0        63.0       281.0       219.0
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                  Three Months Ended     Twelve Months Ended
                                         December 31             December 31
($ per share, except shares                     2011                    2011
outstanding)                        2012  (restated)        2012  (restated)
----------------------------------------------------------------------------
Normalized EBITDA(1)                1.23        0.90        3.55        3.16
Net income - basic                  0.25        0.36        1.07        0.98
Net income - diluted                0.25        0.36        1.06        0.97
Normalized net income(1)            0.44        0.36        1.15        1.07
Dividends declared(2)               0.36        0.34        1.40        1.34
Cash flows                                                                  
  Normalized funds from                                                     
   operations(1)                    1.07        0.73        2.96        2.61
Shares outstanding - basic                                                  
 (millions)                                                                 
  During the period(3)             105.0        86.6        95.0        84.0
  End of period                    105.3        89.2       105.3        89.2
----------------------------------------------------------------------------
----------------------------------------------------------------------------

 
(1) Non-GAAP financial measure; see discussion in Non-GAAP Financial
Measures section of the 2012 annual MD&A. 
(2) Dividends declared of $0.11 per common share per month from
January 1 until October 27, 2011, $0.115 commencing October 27, 2011
and $0.12 per common share per month commencing September 10, 2012. 
(3)  Weighted average. 
CONFERENCE CALL AND WEBCAST DETAILS: 
AltaGas will hold a conference call today at 9:00 a.m. MT (11:00 a.m.
ET) to discuss fourth quarter and year-end financial results,
progress on construction projects and other corporate developments.  
Members of the media, investment communities and other interested
parties may dial (416) 340-8527 or call toll free at 1-877-240-9772.
There is no passcode. Please note that the conference call will also
be webcast. To listen, please go to
http://www.altagas.ca/investors/presentations_and_events. The webcast
will be archived for one year. 
Shortly after the conclusion of the call, a replay will be available
by dialing (905) 694-9451 or 1-800-408-3053. The passcode is 4440593.
The replay expires at midnight (Eastern) on March 7, 2013.  
The complete fourth quarter 2012 news release is available on
www.altagas.ca in the Investors/Financial Reporting section of its
website.  
The audited consolidated annual financial statements and annual
Management's Discussion and Analysis (MD&A), which contain additional
notes and disclosures, are expected to be filed with SEDAR on or
about March 5, 2013, at which time a press release to that effect
will be issued. The material will also be available on the AltaGas
website on that same day (www.altagas.ca). 
This news release contains forward-looking statements. When used in
this news release, the words "may", "would", "could", "will",
"intend", "plan", "anticipate", "believe", "seek", "propose",
"estimate", "expect", and similar expressions, as they relate to
AltaGas or an affiliate of AltaGas, 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. These statements involve known and unknown risks,
uncertainties and other factors that may cause actual results or
events to differ materially from those anticipated in such
forward-looking statements. Such statements reflect AltaGas' current
views with respect to future events based on certain material factors
and assumptions and are subject to certain risks and uncertainties,
including without limitation, changes in market, competition,
governmental or regulatory developments, general economic conditions
and other factors set out in AltaGas' public disclosure documents.
Many factors could cause AltaGas' actual results, performance or
achievements to vary from those described in this news release,
including without limitation those listed above. 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 or
expected, and such forward-looking statements included in, or
incorporated by reference in this news release, should not be unduly
relied upon. 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. The forward-looking
statements contained in this news release are expressly qualified by
this cautionary statement.
Contacts:
AltaGas Ltd.
Investment Community
1-877-691-7199
investor.relations@altagas.ca 
AltaGas Ltd.
Media
(403) 691-7182
media.relations@altagas.ca