AltaGas Ltd. ($ALA)

Good afternoon. I'm Pentti Karkkainen, Chair of the Board at AltaGas. On behalf of the Board, it's my pleasure to welcome you to AltaGas' 2026 Annual Meeting of Shareholders. Thank you for joining us. Before we get started, I want to introduce today's speakers and provide an overview of the meeting format. We'll start with Loren Kimi, Director of HR Operations and Strategy, who will provide a land acknowledgment. Then I'll be joined by Jimmi Duce, Vice President and Corporate Secretary, who will assist me in providing an overview of the conduct of the meeting. We'll then have the formal portion of the meeting. Once the formal meeting is complete, I will provide some concluding remarks and then turn the meeting over to Vern Yu, President and Chief Executive Officer, to provide a short corporate update. Following the update, we'll have Sean Brown, Executive Vice President and Chief Financial Officer, join us on the stage for a Q&A session to close the event. Other members of our Board and management team are joining us virtually. And with that, I will turn it over to Lauren.

Thanks, Pentti. We are speaking to you today from Downtown Calgary, -- while we meet on a virtual platform, this land is deeply rooted in the histories and cultures of many diverse indigenous peoples and communities. Today, we recognize that we are on the traditional territories of Treaty 7 signatories including the Saga nation, the Pagani nation, Tigana Nation, the ES Custoniaacoda nation comprising the Chiniki, Barspa and Goodstony and the people of Stina Nation. Calgary is also home to the OTPemsakMeiti government of the Mansion within a strict 6. . AltaGas acknowledges indigenous peoples as the traditional stewards of the lands on which we operate. We affirm our commitment to the journey of reconciliation through shared understanding, respectful engagement collaboration. We are grateful for the land and for the enduring contributions of indigenous peoples and we remain committed to building and maintaining relationships that support strong communities, shared prosperity and long-term well-being. As a member of the AltaGas community, I come with deep respect for this land that I am on today, and for the people who have and do reside here. I pledge to respect and honor this land and its first inhabitants, acknowledging their enduring presence and contributions to our collective future. It is my honor to continue to learn and deepen my understanding of local indigenous peoples and their cultures.

Thank you, Lauren, and thank you to our indigenous partners in the local communities where we work and call home. Before we start the formal meeting, I will ask our Corporate Secretary to address a few housekeeping matters related to the formal proceeds. Jimmy, over to you.

Thank you, Pete. Good afternoon, everyone. As is the case with our in-person shareholder meetings, only shareholders of record at the close of business on the record date of March 5, 2026, and their duly appointed proxy holders may ask questions and vote on meeting matters. If you wish to ask a question, simply click on the messaging icon and type your question in the chat box at the bottom of the messaging screen then the aero icon to submit. Your questions will be put in the queue and addressed at the appropriate moment during the meeting. Questions about meeting business will be answered during the formal portion of the meeting. Other questions not focused on the formal meeting will be brought forward during the Q&A session. We encourage you to submit your questions early. And if your question relates to an item of business to specify the item to which it relates at the start of your question. When reading a question, I will first note the name of the registered shareholder or proxy holder submitting the question. To ensure all questions are addressed. Questions of a similar nature may be answered only once. Any questions we are unable to address during the meeting will be referred to our Investor Relations team for follow-up. To assist us in doing so, please include your e-mail address or phone number with your question. All items for shareholder approval today will be conducted by poll online through the Lumi platform and must be approved by a majority of the votes cast. All items being pulled will appear on your screen at once. As in prior years, significant voting occurred by proxy before the meeting and the response was positive. Thank you to our shareholders who have voted in advance. We have received your votes and your votes have been included in the final count. You do not need to vote again today. any vote you cast at this meeting will revoke your prior vote. If you plan to vote today, you may choose to vote on the resolutions immediately when they appear on your screen or wait to cast your vote until the conclusion of discussion. To vote, simply click on your choice, or withhold or against as applicable. A confirmation message will appear to show that your vote has been received. To change your vote, simply change your selection. If you wish to cancel your vote, press cancel. If you do not submit a vote, the vote will be shown as abstained. The votes you submitted on each polling item when the poll closes will be recorded. Totals in favor or against or withheld for each resolution item will be tallied by the scrutineer once the polls close and the terrible report on the outcome of all motions at the end of the formal meeting. For meeting efficiency, the chair will make the motions, and I will second. We are both shareholders of AltaGas. As noted in the information circular, the Board amends voting in favor of each of the resolutions being tabled. With the housekeeping matters taken care of, I will turn the meeting back to the Chair.

Thank you, Jimmi. In accordance with our bylaws, I will chair today's meeting, and Jimmy will serve as Secretary. I also appoint Christopher Parsons, who joins us today as a representative of our registrar and transfer agent, Computershare Trust Company of Canada to act as scrutineer for the meeting. I now call the meeting to order. I have been advised by Computershare that the notice of meeting and meeting materials were due to deliver to shareholders and that a quorum is present. Accordingly, I declare that the meeting has been duly called and is properly constituted for the transaction of business. Computershare statutory declaration of mailing and the scrutineer's report on attendance will be filed by the Secretary with the minutes of this meeting. I now declare the polls open on all resolutions. Each person entitled to vote shall see voting choices displayed on their screen. As a reminder, you may vote on the resolutions immediately or wait to cast your vote following discussions on the matter. We will now commence with the business of the meeting. The agenda is as set forth in the notice of meeting being the presentation of financial statements, the appointment of the auditor, the election of directors, the advisory vote on executive compensation. Let's begin with the first item of business. The consolidated financial statements of AltaGas for the year ended December 31, 2025, Management's Discussion and Analysis and the auditor's report thereon have been provided to shareholders. They are available on AltaGas' profile on SEDAR plus and on AltaGas' website in accordance notice and access provisions. No action is required by shareholders on this idle. The next item of business is to vote on the appointment of Ernst & Young LLP as the auditor of AltaGas to hold office until the next annual meeting. I move that Ernst & Young LLP be appointed as the Auto of AltaGas until the next Annual Meeting of Shareholders or until the successor is appointed and that their remuneration be fixed by the directors of AltaGas.

Mr. Chair, I second the motion. Thank you. You've heard the motion and is now open for discussion.

Jimmy, have we received any questions on this motion from shareholders?

Mr. Chair, we have received no questions on this motion.

Thank you, Jimmy. We will proceed with the next item on the agenda. The next item of business is the election of directors. The Board of Directors of AltaGas has fixed the number of directors to be elected at the meeting at 11. As noted in the information circular, our bylaws contain advanced notice provisions, which provide a procedure to be followed for the nomination of directors at meetings of shareholders. No other nominations were received. Therefore, the only individuals entitled to be nominated as directors at this meeting are the individuals named as nominees in AltaGas' information circular. In accordance with our majority voting policy, you are being asked to vote for each director separately. Jimmy, can you please read the names of the 11 directors nominees set out in AltaGas' information circular who are standing for election.

Mr. Chair, the Director nominees are as follows: William Bullet Jr., Victoria Calvert, David Cornhill, Jonel Duplantier, Derek Evans, Cynthia Johnston, Angela Lacaze, Peticarkanan, Philip Nowell, Nancy Tower and Vern U. Each of the nominees has consented to act as a director of AltaGas until the next annual meeting or until their successor is duly elected or appointed.

Thank you, Jimmi. The nominees bring a diverse mix of experience, skills and perspectives to the board. The skills and attributes of the nominees are set out in the information circular. All the nominees currently sit on our board, though William Bullet Jr. will be standing for election for the first time today. Bill Bullock was appointed to the Board in October. Bill is an industry veteran and distinguished leader in the sector with nearly 4 decades of experience working across complex global operations throughout different regulatory jurisdictions and across the upstream, midstream, and downstream energy markets. Mr. Bullock brings a wealth of knowledge and experience to our board. We believe his strategic mindset and cousin value creation will benefit our organization and shareholders over the long term. I and the balance of the Board and executive look forward to working with Bill. Welcome, Bill. With, I now move that the individuals nominated as directors as listed by the secretary be elected as directors of AltaGas to hold office until the next Annual Meeting of Shareholders or until they cease to be directed by operation of law or until their resignation becomes effective.

Mr. Chair, I second the motion. .

Thank you. You've heard the motion and is now open for discussion. Jimmy, have we received any questions on this motion from shareholders?

Mr. Chair, we have received no questions on this motion. .

Thank you, Jimmy. We will proceed with the next item on the agenda. The final item of business is the consideration of AltaGas' approach to executive compensation. This is an advisory vote, so the results will not be binding, but the Board will take the results into consideration in its ongoing review of executive compensation. I move to accept on an advisory basis and not to diminish the roles and responsibilities of the Board of Directors, all together approach to executive compensation, as disclosed in AltaGas' management information circular dated March 5, 2026.

Mr. Chair, I second the motion. .

You have heard the motion, and it is now open for discussion. Jimmy, have we received any questions on this motion from shareholders?

Mr. Chair, we have received no questions on this motion. .

Thank you, Jimmi. That was the final agenda item. For those of you who have not yet cast your votes, please do so now, and I will pause briefly before closing the polls. Thank you. The polls are now closed. We will take another moment to let the scrutineer finish tabulating.

Mr. Chair, we have now received the preliminary results from the scrutineer, and I can advise that each of the motions has passed by a majority of the votes cast.

Thank you, Jimmi, and thank you to the scrutineer. On that basis, I declare that all motions have been carried. Final voting results will be published on SEDAR plus tomorrow morning. As there is no further business, I now declare the meeting terminated. Thank you all our shareholders for participating in the annual meeting, either by voting in advance or attending virtually and voting live today, and thank you for your ongoing support of AltaGas. Prior to turning the meeting over to Vern Yu, I'd like to draw your attention to our advisory statement and share a few concluding remarks. Please take a moment to review the posted advisory statement regarding forward-looking information and non-GAAP measures. Within our corporate update, we may make forward-looking statements, which involve certain assumptions, and we have inherent risks and uncertainties. Actual results could differ from these statements. We may also make reference to certain financial measures that do not have a standardized in prescribed by U.S. GAAP. As I reflect on the past year, I am proud of the progress AltaGas has made in advancing our strategic priorities, strengthening our asset base and continuing to deliver affordable and viable energy to the communities we serve. On behalf of the Board, I would like to thank the AltaGas leadership team and employees for their continued focus disciplined execution and commitment to safety and operational excellence. I would also like to acknowledge rights holders, indigenous and local communities and our stakeholders and partners for their ongoing engagement and trust. As I conclude my final Annual Shareholders Meeting as Board Chair, I'd like to thank my fellow directors for their stewardship down counsel and support over the past 7 years and their continued commitment to AltaGas. Serving as a Board chair has been a privilege and I'm grateful for the opportunity to have worked alongside such a dedicated group. I am also looking forward to continuing to serve as a Board member as I'm extremely excited in the company's future and very pleased to support our incoming Board Chair, Derek Evans, Derek is a highly respected energy industry leader, and the Board looks forward to his leadership as AltaGas continues to execute its long-term strategy. With that, I'll turn it over to over.

Good afternoon, and thank you for joining us today. On behalf of the Board and the management team, thank you for your continued support and confidence in AltaGas. I'd also like to recognize our employees across North America. We deliver energy to improve lives and create opportunity. We focus on safety, operational excellence and disciplined execution. And this is the foundation of our strong 2025 results. To recognize that commitment and the values that unite us, we'd like to share a brief video that highlights what makes AltaGas such a remarkable organization. [Presentation]

And competitively priced energy, connecting our customers to markets across North America and globally through our midstream and utes businesses with Pipestone 2 entering service in 2025 and DMS reaching a positive final investment decision, we advanced critical midstream energy in structure that stores, processes and transport liquid petroleum gas for over 70 Canadian LPG producers and aggregators providing the energy the world needs safely and affordable through our West Coast open access export we supplied Canadian PG to key markets in Asia unique business model combines our midstream advantages with the steady returns from our utilities, the rate regulated natural gas distribution and storage infrastructure. Our utilities business 1.6 million residential, commercial and industrial customers powering their homes and businesses with our strongest safety performance record, we continue to execute on our pipeline modernization program. We also take great pride in our partnerships. We're working with our indigenous partners, communities and other key stakeholders to create shared long-term value that is anchored in local priorities and built on trust. Our story is strong. We're focused on delivering exceptional results for each other, our communities, customers and shareholders today and into the future.

2025 was a strong year at AltaGas. We continue to drive value for our shareholders and demonstrated strong execution of our strategic priorities which strengthened our foundation for long-term growth. Safety has always been our most important core value. And thanks to the great work of our employees and contractors we significantly improved our safety performance in 2025. In fact, we reduced total recordable injury frequency across the enterprise, and I'm proud to share that SEMCO achieved top quartile performance in its peer group. Moving on to our financial results. Last year, we delivered normalized EBITDA of approximately $1.86 billion, which was in the top end of our guidance range and supports our 6% 5-year compound annual growth rate. Our normalized earnings per share came in at $2.23 and also landing in the upper half of our guidance range. We enhanced our earnings quality by prioritizing stable long-term cash flows. We did this by derisking our global export platform through long-term tolling agreements. We also advanced utilities asset modernization regulatory approvals, all of which strengthened our risk profile. Happy to share that we advanced key growth projects, including the commissioning of Pipestone 2. We also made significant construction progress at Reef and continue to make significant investments in the modernization programs at our utilities. We reached positive FID on reef Optimization 1, the RIPET methanol removal project, Dimsdale expansions Phases 1 and 2 and the KenaConnector pipeline in Michigan. In 2025, we optimized our asset base by delivering record annual global export volumes of over 126,000 barrels a day of propane and butane to Asia and we saw record throughput volumes at North Pine and Pipestone. We ended 2025 on strong financial footing with adjusted net debt to normalized EBITDA of 4.7x, achieving our leverage target and we received positive revisions to our credit outlook -- these results translated into a 29% total shareholder return in 2025. And and a total shareholder return CAGR of 22% over the last 5 years. This significantly outperforms our peers and reflects strong investor confidence in AltaGas. Turning to Reef. Our new LPG export facility in Prince Rupert, I'm happy to share that Reef Phase 1 is approximately 75% complete with all modules on site. -- placement of the remaining 2 jetty spans is about to be completed, and construction of the final phase of the railroad utility quarter is about to start construction. The project currently sits with roughly 90% of its total capital cost incurred or committed and 80% of these costs are under fixed-price EPC contracts. I'd like to pause here to recognize that over 1.4 million hours have been worked on reef without serious injury. Kudos to the team in achieving these great results. Reef Optimization 1 is in its early days of construction and will add another 30,000 barrels a day of propane export capacity, which is also under long-term tolling contracts. We continue to advance in our midstream business. Currently, our sanctioned projects include our Dimsdale expansion, which will add 36 Bcf of gas storage. This project is backed by long-term take-or-pay contracts. At RIPET, our methanol removal project improves propane specs and helps us expand into new markets like China. At Reef, we're also assessing further LPG exports, including the potential for exporting ethane. We are advancing engineering and cost estimates for reef optimization; two, which is anticipated to add another 60,000 barrels a day of LPG export capacity. And I'm happy to share that we now have received permits required to start construction. Looking ahead, we also expect to see our existing facilities in the BC and Alberta Montney to undergoing expansion. Our growth opportunities in our utilities business are also strong. Construction of the Q1 connector begins this spring. The construction materials are arriving on site, and we've fully secured the right of way. Our regulators have approved USD 1.5 billion organization spending across our 4 jurisdictions, which enhances the safety and reliability of our systems. In terms of data centers, we've now completed multiple FEED studies and started gas connection construction for Phase 1 of a 24-megawatt Maryland facility, which project completion is anticipated by year-end 2026. The -- we also recently announced a second data center project in Virginia. Modernization programs and customer additions will support rate base growth of around 8% per year over the next 5 years. Data center capital has the potential to add another 1% per year to that healthy 8% rate base CAGR. And -- looking at our 2026 strategic priorities, we're focused on delivering long-term value for our shareholders with today's geopolitical tensions, economic uncertainty and market volatility and energy security and access to global markets has never been more important. AltaGas is well positioned with a diversified portfolio of regulated utilities and midstream assets. that will continue to provide stability and flexibility for our customers and stakeholders in the long term. We believe that delivering on our strategic priorities in 2026 will only enhance our long-term competitive position. Our value proposition is clear. we have a low-risk, high-quality infrastructure platform with stable, growing cash flows. Global demand for reliable and affordable energy supports our growth outlook. -- and we anticipate our organic growth backlog to drive 5% to 7% per year of growth through 2030. Finally, we're blessed to have ample investment capacity to fund all of this organic growth. noting that we will be disciplined allocators of capital, and we will continue to live within our balance sheet guardrails. Thank you for your ongoing trust and support. We're looking forward to 2026 and beyond.

Thank you, Vern. We are pleased to have Sean Brown, AltaGas CFO, join us on stage and open the floor for questions. Jimmy, are there any questions from shareholders?

We have received no questions.

Thank you, Jimmy. With that, we've reached the end of today's question-and-answer session. Should you have any additional questions throughout the year. We encourage you to contact our Investor Relations team or for more governance-related matters, the Board in accordance with AltaGas' shareholder engagement policy. Before I conclude, I'd like to thank team across North America for their continued focus on executing our strategic priorities safely, responsibly and with discipline. Your work is essential to our success. I'm very grateful for your commitment to the communities we serve, including rights holders and digital communities and our broader group of stakeholders -- thank you for your collaboration and trust as we work together to help meet energy needs today and into the future. To our shareholders, thank you again for joining us today and your continued confidence and investment in AltaGas. We value support and remain focused on delivering long-term value. Finally, I'd like to thank [indiscernible] for his outstanding leadership and stewardship as Board Chair. I'm glad to have your continued support on the Board and look forward to working closely with Derek Evans in his new role as Board Chair. Thank you for your participation today. This concludes AltaGas' 2026 and Annual Meeting of Shareholders.