In third quarter, AltaGas Ltd. (AltaGas) (TSX:ALA) (TSX:ALA.PR.A)
(TSX:ALA.PR.U) achieved several milestones toward adding $1.8
billion in new and expanded assets in 2012. On August 30, 2012,
AltaGas closed the acquisition of SEMCO Holding Corporation
(SEMCO), the largest acquisition in its eighteen-year history. The
acquisition increased Utility customers from just over 100,000 to
over 540,000 along with more than a two-fold increase in rate base.
During the quarter, construction of the Busch Ranch wind project
(Busch Ranch) in southern Colorado was completed successfully ahead
of schedule and on budget. In addition, AltaGas commissioned the 50
Mmcf/d expansion of the Blair Creek facility and completed
construction of the Gordondale Gas Processing Facility
(Gordondale), both of which provide services to producers in the
Montney area. As well, the Corporation completed construction of
the Harmattan Co-stream project (Co-stream Project). The new and
expanded assets in 2012 are underpinned by regulated returns or
long-term contracts.
Normalized net income applicable to common shares for the three
months ended September 30, 2012 was $12.3 million ($0.13 per
share), compared to $14.1 million ($0.17 per share) for the same
period 2011. Net income applicable to common shares was $8.0
million ($0.08 per share) for the three months ended September 30,
2012, compared to $11.1 million ($0.13 per share) for the same
period 2011. Third quarter results reflect the increased
seasonality of earnings from the addition of new natural gas
distribution utilities in British Columbia and in the United
States. Earnings per share was also impacted by 13.9 million more
shares issued to fund the SEMCO acquisition.
Normalized net income for the nine months ended September 30,
2012 was $62.9 million, a six percent increase compared to $59.4
million for the same period 2011. Normalized earnings per share for
the nine months ended September 30, 2012 was $0.69, compared to
$0.71 for the same period 2011.
Results for the three months ended September 30, 2012 were
marked by strong cash flows. Normalized EBITDA was $65.3 million,
16 percent higher compared to $56.3 million for the same quarter
2011. Normalized funds from operations was $54.1 million, 24
percent higher compared to $43.5 million reported for the same
quarter 2011.
"This has been a milestone quarter for AltaGas as we added more
assets than any other quarter in our history," said David Cornhill,
Chairman and CEO of AltaGas. "We remain on track to add
approximately $1.8 billion in new assets in 2012 which is expected
to add stable earnings from long-term contracts and regulated
returns. We continue to be well positioned to deliver long-term
earnings, cash flow and sustainable dividend growth into the
future. In September we were pleased to announce a 4.3 percent
increase in our common share dividend."
The US$1.156 billion acquisition of SEMCO was successfully
closed on August 30, 2012. The addition of SEMCO represents a
significant step in the execution of AltaGas' strategy and
increases stable, regulated cash flows to further support both its
dividend and capital growth projects in Canada and the United
States.
Construction of the 195 MW Forrest Kerr run-of-river project
(Forrest Kerr Project) is progressing well and remains ahead of
schedule and on budget. The total project is approximately 70
percent complete. Construction of the intake structure is complete,
with powerhouse and in-river work well underway. Forrest Kerr
Project construction is expected to be completed by the end of
2013, with commissioning to follow based on the availability of the
Northwest Transmission Line. During the third quarter progress
continued as expected on the additional Northwest hydroelectric
projects, McLymont Creek and Volcano Creek. The two smaller
projects are expected to be in service in late 2015. AltaGas has
60-year Electricity Purchase Agreements (EPAs) with BC Hydro which
are fully indexed to the Consumer Price Index (CPI) as well as
Impact Benefit Agreements (IBAs) with the Tahltan First Nation.
Busch Ranch in southern Colorado was commissioned ahead of
schedule and on budget. AltaGas owns a 50 percent interest in the
29 MW wind project with the local utility Black Hills/Colorado
Electric Utility Company LP (Black Hills Energy). The power
generated is sold pursuant to a 25-year renewable energy purchase
agreement with Black Hills Energy. AltaGas added 65 MW of new power
assets in 2012, increasing total power generation capacity by 13
percent.
The Co-stream Project, which will use 250 Mmcf/d of existing
spare capacity at the Harmattan Complex, is in the final
commissioning stages and performance testing is in progress. The
project is underpinned by a 20-year cost-of-service contract with
NOVA Chemicals Corporation. Construction on AltaGas' 120 Mmcf/d
Gordondale deep-cut, natural gas processing facility is complete
and AltaGas successfully commenced processing gas on October 28,
2012. The plant is located in the Montney resource area, one of the
largest, low-cost, liquids-rich resource plays in the Western
Canadian Sedimentary Basin. This plant will allow AltaGas to
provide a midstream solution to a number of producers in the area
and is underpinned by a long-term natural gas supply contract with
Encana. The 50 Mmcf/d expansion at the Blair Creek facility was
successfully commissioned and producer gas is being processed. The
expansion is underpinned by long-term contracts with three
producers.
Monthly Common Share Dividend and Quarterly Preferred Share
Dividend
-- AltaGas announced that the November common share dividend will be paid
on December 17, 2012, to holders of record on November 26, 2012. The ex-
dividend date is November 22, 2012. The amount of the dividend will be
$0.12 for each common share. This dividend is an eligible dividend for
Canadian income tax purposes.
-- The Board approved a preferred share dividend of $0.3125 per share for
the period commencing October 1, 2012, and ending December 30, 2012, on
AltaGas' outstanding Series A Preferred Shares. The dividend will be
paid on December 31, 2012, to preferred shareholders of record on
December 13, 2012. The ex-dividend date is December 11, 2012.
-- The Board approved a preferred share dividend of US$0.275 per share for
the period commencing October 1, 2012, and ending December 30, 2012, on
AltaGas' outstanding Series C Preferred Shares. The dividend will be
paid on December 31, 2012, to preferred shareholders of record on
December 13, 2012. The ex-dividend date is December 11, 2012.
Financial Highlights (1)
Effective January 1, 2012, AltaGas follows United States
Generally Accepted Accounting Principles (US GAAP). All prior
comparative information has been restated to US GAAP.
-- Net income applicable to common shares for third quarter 2012 was $8.0
million, compared to $11.1 million for same quarter 2011.
-- Net income applicable to common shares for third quarter 2012 was
adjusted for $5.1 million of after-tax mark-to-market gains and $9.4
million of after-tax transaction costs and foreign exchange losses
related to the acquisition of SEMCO, resulting in normalized net income
of $12.3 million for third quarter 2012.
-- Normalized EBITDA was $65.3 million for third quarter 2012, compared to
$56.3 million for same quarter 2011.
-- Normalized Funds from operations was $54.1 million ($0.57 per share) for
third quarter 2012, compared to $43.5 million ($0.52 per share) for same
quarter 2011.
-- Net debt as at September 30, 2012 was $2,527.9 million, compared to
$1,063.0 million as at September 30, 2011 and $1,334.2 million as at
December 31, 2011. AltaGas' debt-to-total capitalization ratio as at
September 30, 2012 was 56.0 percent, versus 46.9 percent as at September
30, 2011 and 49.5 percent as at December 31, 2011.
-- On August 30, 2012 AltaGas issued 13,915,000 common shares for net
proceeds of $378.4 million.
-- On September 28, 2012 AltaGas issued $350 million of senior unsecured
medium term notes. The notes carry a coupon rate of 3.72 percent and
mature on September 28, 2021.
(1) Includes Non-GAAP financial measures. See public disclosures
available at www.altagas.ca or www.sedar.com for definitions.
CONSOLIDATED FINANCIAL RESULTS
Three Months Ended Nine Months Ended
September 30 September 30
(unaudited)($ millions) 2012 2011 2012 2011
(restated) (restated)
----------------------------------------------------------------------------
Revenue 311.3 339.2 959.5 1,046.5
Net revenue(1) 147.3 116.5 459.7 359.9
Normalized operating income(1) 38.5 35.0 138.3 127.9
Normalized EBITDA(1) 65.3 56.3 210.3 190.5
Net income applicable to common
shares 8.0 11.1 75.1 51.1
Normalized net income(1) 12.3 14.1 62.9 59.4
Total assets 5,696.8 2,975.8 5,696.8 2,975.8
Total long-term liabilities 3,239.8 1,323.3 3,239.8 1,323.3
Net additions to property, plant
and equipment 1,041.8 112.2 1,365.6 241.4
Dividends declared(2) 33.4 27.6 95.4 82.4
Cash flows Normalized funds from
operations(1) 54.1 43.5 171.2 151.7
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Three Months Ended Nine Months Ended
September 30 September 30
($ per share) 2012 2011 2012 2011
(restated) (restated)
----------------------------------------------------------------------------
Normalized EBITDA(1) 0.69 0.67 2.30 2.29
Net income - basic 0.08 0.13 0.82 0.61
Net income - diluted 0.08 0.13 0.81 0.61
Normalized net income(1) 0.13 0.17 0.69 0.71
Dividends declared(2) 0.35 0.33 1.04 0.99
Cash flows Normalized funds from
operations(1) 0.57 0.52 1.87 1.82
Shares outstanding - basic
(millions)
During the period(3) 95.3 83.6 91.6 83.2
End of period 104.7 83.8 104.7 83.8
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) Non-GAAP financial measure; see discussion in Non-GAAP Financial
Measures section of the third quarter 2012 MD&A.
(2) Dividends declared of $0.11 per common share per month from January 1
until October 27, 2011, $0.115 commencing October 27, 2011 and $0.12 per
common share per month commencing September 10, 2012.
(3) Weighted average.
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 third quarter 2012 financial and operating
results and other general issues and developments concerning
AltaGas.
Members of the media, investment communities and other
interested parties may dial (416) 340-8061 or call toll free at 1
866 225 0198. 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 8916823. The replay expires at midnight (Eastern) on November 8,
2012.
The complete third quarter 2012 report, including Management's
Discussion and Analysis and unaudited financial statements, is
available on www.altagas.ca in the Investors/Financial Reporting
section of its website.
AltaGas is an energy infrastructure business with a focus on
natural gas, power and regulated utilities. The Corporation creates
value by acquiring, growing and optimizing its energy
infrastructure, including a focus on renewable 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.
Contacts: AltaGas Ltd. Investment Community
1-877-691-7199investor.relations@altagas.ca AltaGas Ltd. Media
(403) 691-7194media.relations@altagas.ca
AltaGas (TSX:ALA.PR.U)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
AltaGas (TSX:ALA.PR.U)
Historical Stock Chart
Von Jul 2023 bis Jul 2024