1 Forward-looking information This presentation contains forward-looking statements. When used in this presentation the words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “seek”, “propose”, “estimate”, “expect”, and similar expressions, as they relate to AltaGas or any affiliate of AltaGas, are intended to identify forward-looking statements. In particular, this presentation contains forward-looking statements with respect to, among others things, business objectives, expected growth, results of operations, performance, business projects, 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, changes in tax legislation, general economic conditions and other factors set out in AltaGas’ public disclosure documents. Many factors could cause AltaGas’ or any of its business segments’ actual results, performance or achievements to vary from those described in this presentation, including without limitation those listed above as well as the assumptions upon which they are based proving incorrect. These factors should not be construed as exhaustive. Factors which could cause results or events to differ from current expectations are: capital resources and liquidity risk, market risk, commodity price risk, operational risk, volume declines, weather, construction, counterparty risk, environmental risk, regulatory risk and labour relations. 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 presentation as intended, planned, anticipated, believed, sought, proposed, estimated or expected, and such forward-looking statements included in this presentation herein should not be unduly relied upon. These statements speak only as of the date of this presentation. AltaGas does not intend, and does not assume any obligation, to update these forward-looking statements except as required by law. The forward-looking statements contained in this presentation are expressly qualified as cautionary statements. Financial outlook information contained in this presentation about prospective results of operations, financial position or cash flows is based on assumptions about future events, including economic conditions and proposed courses of action, based on management’s assessment of the relevant information currently available. Readers are cautioned that such financial outlook information contained in this presentation should not be used for the purposes other than for which it is disclosed herein. Additional information relating to AltaGas can be found on its website at The continuous disclosure materials of AltaGas, including its annual MD&A and Consolidated Financial Statements, Annual Information Form, Information Circular, and Proxy Statement, material change reports and press releases, are also available through AltaGas’ website or directly through the SEDAR system atSee "Forward-Looking Statements & Information"
2 We’re a leading energy infrastructure company Listed on TSX (ALA)Enterprise value ~$7.4 billion5 Utilities serving over 540,000 customers in the U.S. and Canada1,372 MW of Power Generation in five fuel typesGas processing – touching over 2 Bcf/dOur vision has not changed. It is to be a leading North American energy infrastructure company. Over 1,300 MW power generation:Alberta353 MW coal72 MW gasBritish Columbia379 MW renewableUnited States50 MW renewable507 MW gasThrough our Gas, Power and Utility business segments, we have built a $7 billion dollar company of diversified energy infrastructure. Our portfolio is geographically diverse and allows us to use our competitive advantages to build strategic asset clusters.In 2009 we set out a target of achieving $2 billion in growth projects between 2010 and As of the first quarter 2013 we had spent over ($4) billion on growth. We now have approximately $6 billion dollars worth of operating assets across the energy value chain.Market Cap = $36.00 x 116,214,037 shares outstanding = $4,183,705,332Market Cap $ 4,184 millionDebt $ 2,737 millionTotal Preferred Shares $ 395 millionEnterprise Value $ 7,316 million * Rounded to $7.0 billion to be conservativeBased on a share price of $36.00Total assets from Q MD&A: $5,972.4 million rounded to $6.0 billion for slideProcess and transport over 2.0 Bcf/d : See attached detailed scheduleDiversified markets and business segments
3 Northwest Projects Three run-of-river projects totalling 277 MW Forrest Kerr 195 MWMcLymont Creek 66 MWVolcano Creek 16 MWTotal investment ~$1.0 billionLong-term Energy Purchase Agreements with BC HydroImpact Benefit Agreements in place with Tahltan First NationConstruction started in will take 5 years to complete all three projectsNewBC Hydro 344 km 287 kV Transmission LineInformation Sources:Q Report2011 MD&ASee "Forward-Looking Statements & Information
4 Northwest Projects – Forrest Kerr history 1970s – 1980sBC Hydro investigates site for potential development of large 800 MW damMid 1990sSite is investigated as a potential power source of 30 MW for a mine development2000 – 2001Coast Mountain Hydro initiates investigations for the site as independent power development2003 – 2004Environmental Assessment Certificate issued for 112 MW m3/s diversion flow2006NovaGold acquires Coast Mountain to support its Galore Creek mine development2008NovaGold sells Coast Mountain assets to AltaGas Ltd.2008 – 2010195 MW Project with 252m3/s diversion flow fully permitted by AltaGas, an EPA in place with BC Hydro and Participation Agreement is signed with Tahltan First Nation2010In mid-2010 AltaGas began construction of the Forrest Kerr Project
6 Completing Forrest Kerr Key Parameters/ Components100m gross head 252m3/s design flowL x 7m H Obermeyer WeirIntake and de-sanding basinOver 5 km of tunnels - largest is power tunnel 10m dia. 3km LUnderground powerhouse m L X 17m W X 27m H4m dia. ~130m L vertical bus shaft22 MW Andritz Horizontal Francis Turbines40km 287 kV Transmission line300+ man camp and related facilitiesCOD Mid-2014Capital cost estimate: $725 millionWeirPower TunnelTop photo: Forrest Kerr Power Tunnel (from Comms library, April 5, 2013)Bottom photo: Weir construction (from Comms library April 15, 2013)We made substantial progress on our Northwest run of river hydro projects. At the end of 2012, Forest Kerr was 75 percent complete. In the first four months of 2013, it has advanced another [x] percent. The tunneling is complete, the in-river work is complete, and completion of the powerhouse is ahead of schedule. There are no major components that are on critical path anymore and we expect the plant to be mechanically complete by the end of the year. We expect to commission the plant by mid-2014 once the Northwest Transmission Line is up and running. The project overall remains on budget and ahead of schedule.The 195 MW Forrest Kerr can power approximately 70,000 homes
8 Forrest Kerr Weir January 2013 May 2013 The weir is the structure that will control the flow of water into the power tunnel, and ensure that the majority of water continues to flow in the Iskut River at all times.In these two pictures you can see that the weir went from a foundation to being in operation in a short amount of time, thanks to everyone’s hard work on-site.During planning both THREAT and government requested Altagas to minimize the interruption of sediment transport in the Iskut by filling in behind the weir. The natural River sediment load is 60 million tonnes per year and would fill up behind the weir in one year. Sediment transport is a key component of the natural Iskut ecosystem and will be a long term monitoring requirement of Altagas to ensure the project functions as designed.
9 Sediment Chamber 12 April 2017 Standing from the downstream end looking upstream towards the intake forebay. The stoplogs will be replaced with trash racks.Sediment Chamber
10 Intake Sluice Channel 12 April 2017 Forebay consists of a sluice channel including box culvert 1.5m H x 6m WIntake Sluice Channel
11 Forrest Kerr Underground Powerhouse 12 April 2017Fall 2012Fall 2013
14 Forrest Kerr (on schedule and budget) ChallengesGeotechnicalEnvironmentalPermitting / approvalsFirst Nations / community supportCost control and mgt.Remote location / weatherSecuring and retaining labour in a remote siteKeys to SuccessEarly and on-going community and First Nations engagementUnique configurationSelf performing project execution with a strong site mgt. team that has decision making authority and supportFull service camp, individual rooms, strict camp policiesSecuring workers from across the countryBalance sheet financing
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