AltaGas Reports 31 Percent Increase in Earnings Per Share and Record Cash Flow for 2013

AltaGas Reports 31 Percent Increase in Earnings Per Share and Record Cash Flow 
for 2013 
NEWS RELEASE TRANSMITTED BY Marketwired 
FOR: AltaGas Ltd. 
TSX SYMBOL:  ALA
TSX SYMBOL:  ALA.PR.A
TSX SYMBOL:  ALA.PR.U
TSX SYMBOL:  ALA.PR.E 
FEBRUARY 27, 2014 
AltaGas Reports 31 Percent Increase in Earnings Per Share and Record Cash Flow
for 2013 
CALGARY, ALBERTA--(Marketwired - Feb. 27, 2014) -  
Fourth Quarter and 2013 Highlights 
/T/ 
--  31 percent increase in normalized earnings per share in 2013, compared 
to 2012; 
--  A record $508.9 million in normalized EBITDA in 2013, a 51 percent 
increase compared to 2012;
--  Normalized earnings per share increased by 11 percent and normalized 
EBITDA increased by 18 percent in fourth quarter 2013, compared to 
fourth quarter 2012; 
--  A record $402.7 million, a 43 percent increase, in normalized funds from 
operations in 2013; $117.1 million in fourth quarter 2013; 
--  Increased dividend by 6.25 percent; payout ratio of 43 percent of 
normalized funds from operations;  
--  The 195 MW Forrest Kerr hydro project is in commissioning and on track 
to be in service in mid-2014; 16 MW Volcano hydro project advanced to 
2014 - two years ahead of schedule; and 
--  Strategic relationships in place to execute on LPG and LNG export 
initiatives. 
/T/ 
AltaGas Ltd. (AltaGas) (TSX:ALA)(TSX:ALA.PR.A)(TSX:ALA.PR.U)(TSX:ALA.PR.E)
today reported significant earnings and cash flow growth for 2013. Normalized
net income increased to $175.8 million ($1.51 per share), compared to $109.5
million ($1.15 per share) in 2012. Net income applicable to common shares was
$181.5 million ($1.56 per share) for 2013, compared to $101.8 million ($1.07
per share) in 2012.  
Normalized EBITDA for 2013 increased 51 percent to $508.9 million, compared to
$336.9 million for 2012. Normalized funds from operations was $402.7 million
($3.47 per share) for 2013, compared to $281.0 million ($2.96 per share) in
2012.  
"AltaGas achieved outstanding results in 2013, delivering growth of over
30 percent in earnings per share and 17 percent in FFO per share. On the growth
front, we successfully positioned ourselves for energy exports with the
expansion of our gas business and we established a significant footprint in the
US power market," said David Cornhill, Chairman and CEO of AltaGas.
"We also achieved EBITDA of over half a billion for the first time - a
great achievement in the company's twenty-year history. 2014 will be
another exciting year for AltaGas as we commission our Forrest Kerr and Volcano
projects. These projects are marquee projects that will bring another step
change to our already strong portfolio of energy infrastructure assets."  
The increase in earnings and cash flow were the result of the strength of
AltaGas' operations and the positive growth across all business segments
in the year. Full year results from SEMCO, Gordondale and Harmattan Co-stream
as well as the expansion of Blair Creek and other smaller assets contributed
significant incremental earnings in 2013 compared to 2012. In 2013, AltaGas
continued to execute its strategy of adding clean energy to its portfolio and
moving its energy export initiatives forward. The acquisition of Blythe and the
25 percent interest in Petrogas Energy Corp. (Petrogas) also contributed to the
strong growth in earnings and cash flow. AltaGas also benefited from higher
realized power prices in Alberta, colder weather in Michigan, Alberta and Nova
Scotia and lower income taxes. Earnings in the year were partially offset by
lower realized frac prices, higher general and administrative costs, and higher
interest expense as a result of AltaGas' growth. 
Fourth quarter normalized net income was $59.9 million ($0.49 per share),
compared to $46.6 million ($0.44 per share) in fourth quarter 2012. Net income
applicable to common shares was $53.2 million ($0.44 per share) in fourth
quarter 2013, compared to $26.7 million ($0.25 per share) for same period 2012. 
Normalized EBITDA was $153.3 million in fourth quarter 2013, compared to $129.4
million in fourth quarter 2012. Normalized funds from operations was $117.1
million ($0.96 per share) in fourth quarter 2013, compared to $112.0 million
($1.07 per share) in fourth quarter 2012. The lower normalized funds from
operations on a per share basis was due to the timing of cash distributions
from equity-owned investments.  
The solid earnings delivered in fourth quarter 2013 were due to the
contributions from Blythe and a 25 percent interest in Petrogas which were
acquired in 2013, higher volumes of natural gas processed, stronger earnings
from NGL sales, higher production at Bear Mountain, higher volumes delivered
and higher rate base at the utilities, and lower taxes. Earnings in the quarter
were negatively impacted by weaker power prices in Alberta, higher interest
expense and higher general and administrative costs compared to the same
quarter last year.  
Project Updates 
Northwest Run-of-river Projects 
AltaGas continues to make solid progress on its three Northwest run-of-river
hydro projects. The 195 MW Forrest Kerr project is mechanically complete and
commissioning is ongoing. The nine turbine generator units have been assembled,
aligned and grouted into position. Based on progress made over the past six
months, AltaGas expects the Northwest Transmission Line to be available in time
to enable Forrest Kerr to be in service by mid-2014. 
At the 16 MW Volcano Creek project, intake construction, weir installation,
powerhouse building, turbine foundations, and powerhouse crane installation
have been completed. The penstock excavation is also complete with the penstock
installation to commence in the spring of 2014. The project is expected to be
in service in late 2014.  
At the 66 MW McLymont Creek project, construction of the 7-kilometre intake
access road is complete. Excavation of the McLymont power portal has been
completed and approximately 50 percent of the 2,800 metre power tunnel has been
excavated. Excavation of the powerhouse foundation is complete and installation
of the powerhouse foundation has commenced. The project is expected to be in
service in mid-2015.  
Energy Exports 
AltaGas has significantly advanced its liquefied petroleum gas (LPG) export
project. On October 1, 2013 AltaGas closed the acquisition of a 25 percent
interest in Petrogas, a privately held leading North American integrated
midstream company. Petrogas provides key infrastructure as well as supply
logistics and marketing expertise required to pursue LPG exports.  
On October 24, 2013, AltaGas announced it will increase its effective ownership
of Petrogas to one-third and will transfer its current 25 percent ownership to
AltaGas Idemitsu Joint Venture Limited Partnership (AIJVLP). AIJVLP will
acquire an additional 41 2/3 percent interest in Petrogas. As a result of the
transaction, Petrogas will be effectively owned one third by each of AltaGas,
Idemitsu Kosan Co., Ltd., and Petrogas' current majority shareholder. The
acquisition is expected to be accretive to AltaGas' earnings per share by
approximately $0.10 in 2015. All regulatory approvals have been obtained and
the transaction is expected to close on March 1, 2014.  
AIJVLP is also preparing preliminary engineering designs for the construction
of the refrigeration facilities and is in negotiations for potential site
locations. The proposed LPG export business is subject to consultations with
First Nations, and the completion of the feasibility study, permitting,
regulatory approvals and facility construction. Based on progress to date,
AltaGas expects LPG exports to begin as early as 2016. 
AltaGas continues to advance its liquefied natural gas export (LNG) initiative.
On October 29, 2013 Triton LNG Limited Partnership (Triton LNG), a subsidiary
of AIJVLP, filed an application with the National Energy Board for approval to
export up to 2.3 million tonnes of LNG per year. The application is an
important step required in the project's progress. Triton LNG is also
preparing preliminary engineering designs for the construction of the
liquefaction facilities and is pursuing potential site locations. The proposed
LNG business is subject to consultations with First Nations, and the completion
of the feasibility study, permitting, regulatory approvals and facility
construction.  
Monthly Common Share Dividend and Quarterly Preferred Share Dividend  
/T/ 
--  The Board of Directors approved the March 2014 dividend of $0.1275 per 
common share. The dividend will be paid on April 15, 2014, to common 
shareholders of record on March 25, 2014. The ex-dividend date is March 
21, 2014. This dividend is an eligible dividend for Canadian income tax 
purposes; 
--  The Board of Directors approved a dividend of $0.3125 per share for the 
period commencing January 1, 2014 and ending March 31, 2014, on AltaGas' 
outstanding Series A Preferred Shares. The dividend will be paid on 
March 31, 2014 to shareholders of record on March 18, 2014. The ex-    dividend date is March 14, 2014;  
--  The Board of Directors approved a dividend of US$0.275 per share for the 
period commencing January 1, 2014 and ending March 31, 2014, on AltaGas' 
outstanding Series C Preferred Shares. The dividend will be paid on 
March 31, 2014 to shareholders of record on March 18, 2014. The ex-    dividend date is March 14, 2014; and 
--  The Board of Directors also approved a dividend of $0.3699 per share for 
the period commencing December 13, 2013, and ending March 31, 2014, on 
AltaGas' outstanding Series E Preferred Shares. The dividend will be 
paid on March 31, 2014 to shareholders of record on March 18, 2014. The 
ex-dividend date is March 14, 2014.  
/T/ 
CONSOLIDATED FINANCIAL REVIEW 
/T/ 
Three months ended    Year ended    
(unaudited)                                 December 31       December 31   
($ millions)                                 2013     2012     2013     2012
---------------------------------------------------------------------------- 
Revenue                                     581.2    525.8  2,042.9  1,449.7
Net revenue(1)                              264.6    207.6    960.2    664.4
Normalized operating income(1)              111.9     96.4    352.7    234.6
Normalized EBITDA(1)                        153.3    129.4    508.9    336.9
Net income applicable to common shares       53.2     26.7    181.5    101.8
Normalized net income(1)                     59.9     46.6    175.8    109.5
Total assets                              7,281.3  5,932.4  7,281.3  5,932.4
Total long-term liabilities               3,727.4  3,357.4  3,727.4  3,357.4
Net additions to property, plant and                                        
 equipment                                  223.4    166.5  1,144.6  1,532.1
Dividends declared(2)                        46.7     37.4    173.6    132.8
Cash flows                                                                  
 Normalized funds from operations(1)        117.1    112.0    402.7    281.0
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
Three months ended    Year ended     
December 31       December 31   
($ per share, except shares outstanding)     2013     2012     2013     2012
----------------------------------------------------------------------------
Normalized EBITDA(1)                         1.26     1.23     4.38     3.55
Net income - basic                           0.44     0.25     1.56     1.07
Net income - diluted                         0.43     0.25     1.52     1.06
Normalized net income(1)                     0.49     0.44     1.51     1.15
Dividends declared(2)                        0.38     0.36     1.50     1.40
Cash flows                                                                  
 Normalized funds from operations(1)         0.96     1.07     3.47     2.96
Shares outstanding - basic (millions)                                       
 During the period(3)                       122.0    105.0    116.1     95.0
 End of period                              122.3    105.3    122.3    105.3
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) Non-GAAP financial measure; see discussion in Non-GAAP Financial        
 Measures section of the 2013 annual MD&A.                                  
 (2)  Dividends declared per common share per month of $0.115 beginning     
 October 27, 2011, $0.12 beginning September 10, 2012, $0.125 beginning     
 April 24, 2013 and $0.1275 beginning July 31, 2013.                        
(3)  Weighted average.                                                       
/T/ 
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 2013 financial results, progress on construction
projects and other corporate developments.  
Members of the media, investment communities and other interested parties may
dial (416) 340-2219 or call toll free at 1-866-226-1798. 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 5334017. The replay expires
at midnight (Eastern) on March 6, 2014.  
AltaGas is an energy infrastructure business with a focus on natural gas, power
and regulated utilities. AltaGas creates value by acquiring, growing and
optimizing its energy infrastructure, including a focus on clean energy
sources. For more information visit: 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. 
-30-
FOR FURTHER INFORMATION PLEASE CONTACT: 
AltaGas Ltd.
Investment Community
1-877-691-7199
investor.relations@altagas.ca
or
AltaGas Ltd.
Media
(403) 269-5701
media.relations@altagas.ca
www.altagas.ca 
INDUSTRY:  Energy and Utilities - Oil and Gas , Energy and Utilities -
Utilities 
SUBJECT:  ERN 
-0-
-0- Feb/27/2014 12:45 GMT
 
 
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