The following is a summary of the AltaGas Ltd. (ATGFF) Q4 2023 Earnings Call Transcript:
Financial Performance:
AltaGas achieved normalized EBITDA of $1.575 billion for the year, a 2.5% increase year over year.
Normalized EPS was $1.90 per share, slightly below the guidance range due to higher short-term debt costs.
AltaGas reported Q4 normalized EBITDA of $502 million and full year normalized EBITDA of $1.575 billion.
The Q4 normalized EPS was $0.76, while the full year normalized EPS of $1.90 was slightly below the guidance range because of higher than expected interest rates.
Midstream operations delivered Q4 normalized EBITDA of $182 million and a full year normalized EBITDA of $684 million.
Utility segment posted Q4 normalized EBITDA of $311 million, representing a 6% YoY increase.
Business Progress:
AltaGas advanced various growth projects, closed the sale of its Alaskan utility, and strengthened its balance sheet with more than $1 billion in cash for debt reduction.
The company entered a five-year transportation agreement with CN to support its LPG exports and commissioned a new VLGC time charter to reduce total shipping costs by approximately 25%.
It acquired Pipestone assets to expand its footprint in Alberta Montney and provide additional liquids for global exports.
AltaGas invested $745 million in system modernization and new customer connections in its utilities business.
There's progression on climate initiatives such as the deal with Opal Fields to provide low-carbon fuel for customers.
The company plans to achieve a 4.5 times leverage target and operate under an equity self-funding model in 2024.
The company anticipates deploying a CapEx of $1.2 billion in 2024 to further growth initiatives across Midstream and Utilities platforms.
AltaGas is implementing strict cost discipline and aims to stay under the inflation run rate while prioritizing safety, reliability, and modernization of their systems.
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