ALTAGAS REPORTS RECORD FIRST QUARTER RESULTS

• Event: AltaGas reported Q1 2026 financial results on April 30, 2026.
• Financials: Normalized EBITDA reached $818 million (vs $689 million YoY), a record for the quarter. Normalized EPS was $1.33 (vs $1.15 YoY). GAAP EPS was $0.47 due to unrealized hedging impacts.
• Guidance: Company is on track to deliver 2026 results at the top end of guidance ($1.925B-$2.025B EBITDA, $2.20-$2.45 EPS). Capital program increased to ~$1.7 billion (from $1.6 billion previously announced in Dec 2025).
• Operations: LPG exports up 5% YoY to 124,917 Bbl/d. REEF facility is 75% complete on time and budget. Dimsdale Phase I & II >40% complete. Utilities EBITDA grew to $555 million (vs $501 million).
• Balance Sheet: Adjusted Net Debt to Normalized EBITDA at 4.4x, within the targeted 4.5x - 5.0x range. 82% of remaining 2026 export volumes hedged or tolled.

• Positive Surprise: Q1 Normalized EBITDA of $818 million annualizes to over $3.2 billion, significantly exceeding the midpoint of full-year guidance ($2.0 billion). This suggests potential upside to 2026 earnings if run rates hold.
• Execution Validation: The results confirm the strong execution trajectory established in FY 2025 (which hit top-end guidance) and validate the strategic pivot to retain MVP assets while raising equity for de-leveraging (Nov 2025).
• Capital Allocation: The increase in capital program ($1.6B -> $1.7B) is modest relative to cash flow generation, indicating confidence in funding growth without further dilution or excessive leverage.
• Risk Mitigation: High hedging coverage (82%) and improved credit metrics (4.4x leverage vs 5.0x target upper bound) reduce downside risk compared to peers with higher merchant exposure.
• Critical View: While positive, the "Record" headline relies on strong commodity spreads (LPG). Geopolitical volatility remains a hidden risk for unhedged volumes. The increase in capex requires monitoring to ensure it does not strain cash flow if project timelines slip.

• Overview: AltaGas operates an integrated energy infrastructure platform comprising Midstream (LPG exports, gas processing) and Utilities (regulated natural gas distribution in US/Canada).
• Flagship Project: Ridley Island Energy Export Facility (REEF). Currently 75% complete. Upon completion (H2 2026), it will add significant propane export capacity to Asia, leveraging the company's existing VLGC fleet.
• Secondary Flagship: Mountain Valley Pipeline (MVP). AltaGas retained ownership in Nov 2025 financing. Key expansions (Boost, Southgate) are advancing with FERC approvals secured or pending.