ALTAGAS ANNOUNCES CLOSING OF $460 MILLION EQUITY FINANCING WITH POSITIVE CREDIT RATING UPDATES

Executive Summary

• AltaGas completed a bought‑deal equity offering of 11,615,000 common shares (including 1,515,000 over‑allotment) at $39.65 per share, raising approximately $460 million in gross proceeds.
• Net proceeds will be used to reduce leverage and fund future growth projects, while the company elected to retain its ownership stake in the Mountain Valley Pipeline (MVP).
• Following the financing and third‑quarter 2025 results, S&P upgraded AltaGas’ rating outlook to “Positive” (BBB‑) and Fitch upgraded the outlook to “Stable” (BBB), citing improved leverage metrics and retained MVP assets.

Key Details

• Offering Structure: Bought‑deal public offering; underwriters: CIBC Capital Markets, TD Securities Inc., RBC Capital Markets, Scotiabank.
• Shares Issued: 11,615,000 common shares (including 1,515,000 over‑allotment).
• Price per Share: $39.65.
• Gross Proceeds: ~$460 million.
• Use of Proceeds: Primarily to reduce debt leverage and to fund organic growth projects, delivering near‑term de‑leveraging comparable to a full MVP monetization but preserving long‑term upside from MVP expansions.
• Strategic Rationale for Retaining MVP:
• Expected significant increase in MVP EBITDA by H2 2028 after expansion projects (MVP Boost, Southgate, Mainline).
• Anticipated incremental normalized EPS of $0.02 (2026), $0.03 (2027) and $0.05 (2028+) versus a divestiture scenario.
• Credit Rating Outlook Updates:
• S&P: Outlook changed to “Positive” from “Negative”; rating affirmed at BBB‑; outlook supported by improved FFO‑to‑Debt metrics over the next 24 months.
• Fitch: Outlook changed to “Stable” from “Negative”; rating affirmed at BBB; outlook supported by equity issuance, stable utility cash flows, strong LPG export demand, and retained MVP ownership.
• Related Disclosures: Prospectus supplement dated November 5 2025 (Base Shelf Prospectus dated March 12 2025) filed on SEDAR+.

Notable Quotes

“By raising equity to achieve the same near‑term leverage reduction as a monetization, AltaGas anticipates $0.02 higher normalized EPS in 2026, $0.03 higher in 2027, and $0.05 higher in 2028+, once expansions are online.” – Senior Vice President, Corporate Development & Investor Relations

Materiality Assessment: Material – Positive (significant equity financing, leverage reduction, and upgraded credit outlooks).