ALTAGAS ANNOUNCES A SIX PERCENT DIVIDEND INCREASE, 2026 GUIDANCE AND UPDATED STRATEGIC PRIORITIES

Executive Summary

• AltaGas announced a 6 % increase to its annual common‑share dividend to $1.34 per share (first quarterly payout of $0.334 on March 31, 2026).
• Provided 2026 normalized EBITDA guidance of $1.925 bn–$2.025 bn and EPS guidance of $2.20–$2.45, indicating ~8 % YoY EBITDA growth and ~6 % YoY EPS growth.
• Outlined a $1.6 bn 2026 capital program (≈69 % Utilities, ≈27 % Midstream) with major projects such as the Keweenaw Connector Pipeline, REEF Phase I, Dimsdale Phase I, and continued investment in Pipestone II and MVP assets.

Key Details

• Dividend Increase
• Board approved a six‑percent increase to $1.34 per share for 2026 (quarterly rate $0.334).

• First quarterly dividend payable March 31, 2026 to shareholders of record March 16, 2026; eligible Canadian dividend.

• 2026 Financial Guidance (unaudited, CAD)

• Normalized EBITDA: $1.925 bn – $2.025 bn (≈8 % YoY growth).

• Normalized EPS: $2.20 – $2.45 (≈6 % YoY growth).

• Capital Program – Total ≈ $1.6 bn (ex‑ARO)

• Utilities: ~​$1.10 bn (≈69 % of total)
  • Asset modernization, Keweenaw Connector Pipeline (MI), customer growth, system betterment.
• Midstream: ~​$430 m (≈27 % of total)
  • REEF Phase I completion, REEF Opti 1, Dimsdale Phase I expansion, RIPET Methanol Removal, MVP Boost & Southgate capital calls.

• Corporate/Other: ~​$60 m – Blythe maintenance, technology upgrades.

• Balance‑Sheet Commitment

• Target Adjusted Net Debt / Normalized EBITDA leverage: ≈4.65× (range 4.5×–5.0×).

• Expect to remain in the upper half of this range in 2026, moving toward the lower end after REEF comes online.

• Credit Rating Outlook

• Fitch: Outlook revised to Stable, BBB rating affirmed.
• S&P: Outlook revised to Positive, BBB‑ rating affirmed.

• Both cite recent $460 m equity raise, improved FFO leverage, and retained MVP ownership.

• Strategic Priorities for 2026

• Optimize asset utilization & extend life cycles.
• Actively manage risk via long‑term contracts, hedging, regulatory engagement.
• Maintain strong BBB‑mid investment‑grade credit rating.

• Advance key growth projects (Utilities: Keweenaw Connector; Midstream: REEF, Dimsdale, MVP Boost/Southgate).

• Operational Highlights

• Pipestone II fully online, driving midstream cash flow.
• REEF Phase I on track for year‑end 2026 completion – adds 56,000 bbl/d LPG export capacity; 80 % of costs incurred/committed, 73 % under fixed‑price contracts.

• REEF Opti 1 expected to add 25,000 bbl/d propane capacity in H2 2027.

• Rate‑Case Updates (Utilities)

• D.C.: New rates effective Jan 1, 2026; ~US$21 m incremental revenue.
• Virginia: Interim rates early 2026; ~US$65 m incremental net of US$39 m surcharge.

• Maryland: Rate case filing imminent; expected effect H2 2026.

• Funding Strategy

• Capital spend to be funded primarily by internally generated cash flow enhanced by higher EBITDA and full‑year contribution from Pipestone II, supplemented by the recent equity raise.

Notable Quotes

“2026 will be another year of strong execution and growth for our energy infrastructure platform,” – Vern Yu, President & CEO.
“Our increased investment capacity allows us to advance more projects that will meet our customers' long‑term needs and drive sustainable growth.” – Vern Yu.