AltaGas Reports Strong Fourth Quarter and Full Year 2025 Results
Executive Summary
- AltaGas reported Q4 2025 normalized EBITDA of $564 M and full‑year 2025 normalized EBITDA of $1.863 B, both at the high end of guidance.
- Normalized EPS for FY 2025 was $2.23 (GAAP EPS $2.48); Q4 2025 EPS was $0.77 (GAAP $0.67).
- The company reaffirmed 2026 guidance (normalized EBITDA $1.925‑$2.025 B; normalized EPS $2.20‑$2.45) and announced a 6% increase to the 2026 common‑share dividend ($0.334 per share).
Key Details
- Financial Performance
- Q4 2025 normalized EBITDA: $564 M vs. $520 M YoY (+8%).
- FY 2025 normalized EBITDA: $1.863 B vs. $1.769 B YoY (+5%).
- Normalized EPS FY 2025: $2.23 (above mid‑point of guidance).
- GAAP EPS FY 2025: $2.48; Q4 2025 GAAP EPS: $0.67.
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Adjusted net debt/EBITDA ratio improved to 4.7× (down from 5.1× at year‑end 2024).
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Operational Highlights
- LPG export volumes reached a record 126,572 bbl/d for FY 2025 (+4% YoY); Q4 2025 exported 124,593 bbl/d via 21 VLGCs.
- Midstream throughput up 7% YoY; North Pine operated near its 25,000 bbl/d capacity.
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Utilities safety improved with record low TRIF; SEMCO ranked in top quartile among peers.
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Growth Projects
- Pipestone II placed in service Dec 2025 (≈90% utilization).
- REEF (Ridley Island Energy Export Facility) >85% capital committed, on‑budget for 2026 completion; REEF Optimization I to add 30,000 bbl/d propane capacity H2 2027.
- Dimsdale Phase I/II storage expansion: +6 Bcf by year‑end 2026, +30 Bcf by mid‑2027 under take‑or‑pay contracts.
- Keweenaw Connector Pipeline construction to start Q2 2026; in‑service early 2027 (≈US$135 M capex).
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Data‑center phase I (24 MW) in Maryland slated for completion FY 2026.
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Regulatory & Rate Cases
- DC PSC approved $33 M rate base increase (effective Jan 2026, ROE 9.65%).
- Washington Gas filed $82 M rate case in MD; Virginia SCC approved $700 M SAVE amendment through 2028.
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SEMCO filed $61 M Michigan rate case (ROE 10.75%); expected effective early 2027.
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Capital Allocation & Guidance
- 2026 capital program ≈ $1.6 B (≈69% Utilities, 27% Midstream).
- Funding via internal cash flow and increased debt capacity from higher EBITDA.
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Dividend: common‑share quarterly dividend $0.334 per share (effective Mar 2026); series G preferred dividend $0.376063 per share (Dec 2025–Mar 2026).
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CEO Comment
- “We achieved the top end of our EBITDA guidance…de‑risked the business by securing >100,000 bbl/d under long‑term contracts and strengthening our balance sheet.” – Vern Yu, President & CEO.
Notable Quotes
“Through 2025, we maintained disciplined capital allocation, as demonstrated by our fourth quarter equity issuance and MVP retention, a 6% dividend increase for 2026, and meaningful debt reduction…” – Vern Yu, President & CEO.