ALTAGAS REPORTS FOURTH QUARTER AND FULL YEAR 2023 RESULTS
HIGHLIGHTS
(all financial figures are unaudited and in Canadian dollars unless otherwise noted)
- Normalized EBITDA1 was
$502 million in the fourth quarter and$1,575 million for the full year of 2023, while income before income taxes was$161 million in the fourth quarter and$912 million for the full year of 2023. Full-year normalized EBITDA was in the upper-half of the Company's 2023 guidance range of$1.5 billion -$1.6 billion and included strong performance across the Midstream platform and ongoing enterprise growth. - Normalized EPS1 was
$0.76 in the fourth quarter and$1.90 for the full year of 2023, while GAAP EPS2 was$0.40 in the fourth quarter and$2.27 for the full year of 2023. Full year normalized EPS was slightly below the mid-point of the Company's 2023 EPS guidance range of$1.85 -$2.05 , principally due to higher interest costs weighing on strong operating performance across the business. - Normalized FFO per share1 was
$1.33 in the fourth quarter and$4.00 for the full year of 2023, while cash from operations per share3 was$0.54 in the fourth quarter and$3.98 for the full year of 2023. Normalized FFO per share for the quarter increased slightly year-over-year due to higher normalized EBITDA, partially offset by non-cash items included in normalized EBITDA, higher normalized current income tax expense, and higher interest expense. - The Utilities segment reported normalized EBITDA1 of
$311 million in the fourth quarter of 2023 compared to$294 million in the fourth quarter of 2022, while income before taxes was$207 million in the fourth quarter of 2023 compared to$80 million in the fourth quarter of 2022. The largest drivers of the fourth quarter year-over-year increase were strong contributions from WGL's retail business, lower operating and administrative expenses, continued rate base growth, and theVirginia rate case. These positive factors were partially offset by theCompany's Alaska Utilities divestiture, lower asset optimization, and warmer weather inMichigan and theDistrict of Columbia ("DC"). - The Midstream segment reported normalized EBITDA1 of
$182 million in the fourth quarter of 2023 compared to$163 million in the fourth quarter of 2022, while income before taxes in the segment was$79 million in the fourth quarter of 2023 compared to$113 million in the fourth quarter of 2022. The largest drivers of the fourth quarter year-over-year increase in normalized EBITDA1 included strong performance from the global exports business, allowance for funds used during construction ("AFUDC") on the Mountain Valley Pipeline project ("MVP"), and the absence of inventory write downs. - The global exports business shipped 90,996 Bbl/d of liquified petroleum gases ("LPGs) in the fourth quarter of 2023 and an average of 106,071 Bbls/d during 2023 from the
Ridley Island Propane Export Terminal ("RIPET") and theFerndale terminal ("Ferndale"). Although the fourth quarter is a seasonally low quarter for exports, volumes were below internal expectations this quarter due to delayed ship arrivals at both terminals duringDecember 2023 , which were loaded in the first quarter of 2024. Despite these timing impacts in the fourth quarter,AltaGas continued to demonstrate the multi-year growth trajectory that has been demonstrated since 2019 while connecting the Canadian upstream and Asian downstream markets and driving stronger Canadian industry netbacks. - On
December 22, 2023 ,AltaGas closed the acquisition of natural gas processing and storage infrastructure assets in thePipestone area of the Alberta Montney (the "Pipestone Acquisition"), includingPipestone natural gas processing plant phase I ("Pipestone Phase I"), the Pipestone Phase I expansion project ("Pipestone Phase II"), the Dimsdale natural gas storage facility, and ancillary assets from Tidewater Midstream and Infrastructure Ltd. ("Tidewater").AltaGas also declared a positive final investment decision ("FID") on Pipestone Phase II with 100 percent of the capacity contracted under long-term take-or-pay agreements. -
AltaGas continued to advance key activities on the Ridley Island Energy Export Facility ("REEF") during and subsequent to the fourth quarter of 2023. This included commencing site clearing work, including logging, clearing, and drainage work that will further solidify the project's readiness to reaching FID, which is expected during the second quarter of 2024. - In
December 2023 ,AltaGas commissioned the first of two new very large gas carriers ("VLGCs"), the Boreal Pioneer, which made its maiden voyage fromFerndale toAsia in earlyJanuary 2024 . The second VLGC, the Boreal Voyager, was commissioned inFebruary 2024 . These two seven-year time charters with optional extensions will reduce and de-risk shipping costs with materially all ofAltaGas' expectedBaltic freight exposure protected through time charters, financial hedges, and tolled volumes in 2024. - On
October 20, 2023 ,Washington Gas executed a definitive agreement with Opal Fuels Inc. ("Opal Fuels ") to support a renewable natural gas ("RNG") project at thePrince William County Landfill inVirginia . As part of the agreement,Washington Gas will become an offtake customer for RNG production and purchase key interconnect infrastructure for approximatelyUS$25 million and continue to advance long-term climate goals. - On
December 14, 2023 , thePublic Service Commission of Maryland ("PSC of MD") approved aUS$10 million rate increase with a 9.5 percent return on equity and 52 percent equity thickness. The new rates became effective immediately. - On
December 22, 2023 , thePublic Service Commission of theDistrict of Columbia ("PSC of DC") approved an increase of approximatelyUS$20 million in revenues, net of approximatelyUS$5 million of costs collected through the PROJECTpipes surcharge. This included a 9.65 percent return on equity and 52 percent equity thickness. The new rates went into effectJanuary 19, 2024 . - On
March 1, 2023 ,AltaGas closed the divestiture of itsAlaskan Utilities forUS$800 million (approximatelyCAD$1.1 billion ), prior to closing adjustments. Sale proceeds were used to reduce debt while providingAltaGas with the financial flexibility to advance its strong growth opportunities across the Midstream and Utilities platforms over the coming years. - On
December 5, 2023 ,AltaGas' Board of Directors approved a 6 percent increase to its annual common share dividends to$1.19 per common share annually ($0.2975 per common share quarterly). This change will be effective for the dividend that will be paid onMarch 29, 2024 , with long-term dividends expected to continue to compound by five to seven percent per annum in the years ahead, subject to annual Board approval. - On
December 5, 2023 ,AltaGas released its 2023 ESG Report, highlighting 2022 data for key topics and outlining progress towards the Company's sustainability goals within the areas of climate, diversity and inclusion and safety. -
AltaGas is pleased with the construction progress on MVP. The pipeline is now 99 percent complete and expected to be placed into service in the second quarter of 2024 and will provide critical energy security to customers in theEastern U.S. As previously disclosed,AltaGas does not consider its equity stake in MVP as core and will consider value maximizing opportunities as part of the Company's plan to reach its 4.5x net debt to normalized EBITDA target once the pipeline is fully operational. -
AltaGas had a series of financing during and subsequent to the fourth quarter, including:- On
October 19, 2023 ,Washington Gas issuedUS$200 million in private placement notes, which includesUS$150 million of notes with a 6.06 percent interest rate, maturing onOctober 14, 2033 , andUS$50 million of notes at a 6.43 percent interest rate, maturing onOctober 15, 2053 . - On
November 10, 2023 ,AltaGas issued$200 million of Hybrid 8.90 percent Fixed-to-Fixed Rate Subordinated Notes, Series 3, dueNovember 10, 2083 . OnDecember 31, 2023 ,AltaGas used the proceeds of the hybrid issuance to redeem all of its issued and outstanding Series E Preferred Shares for$25 per Series E Share, together with all accrued and unpaid dividends. - On
January 8, 2024 ,AltaGas issued$400 million of senior unsecured medium-term notes with a 4.67 percent coupon. The net proceeds were used to pay down existing indebtedness underAltaGas' credit facilities (part of which was incurred to fund the debt portion of the Pipestone Acquisition), to fund working capital, and for general corporate purposes.
- On
-
AltaGas is reiterating the Company's 2024 full year guidance, including normalized EBITDA1 of$1,675 million to$1,775 million , and normalized EPS1 of$2.05 -$2.25 .
________________________ |
(1) Non-GAAP measure; see discussion and reconciliation to US GAAP financial measures in the advisories of this news release or in |
"We are pleased with the results delivered during 2023," said
"Fourth quarter Midstream performance was strong with normalized EBITDA up 12 percent year-over-year, despite delays on two LPG export vessels that had loadings pushed into the first quarter of 2024. Canadian upstream development remains strong as the industry prepares for improved egress and the arrival of LNG Canada. This was reflected in
"The recent issues in the
"Despite warmer weather in
"The past year was an active period for
Normalized EBITDA(1) |
Three Months Ended
|
Year Ended
|
||
($ millions) |
2023 |
2022 |
2023 |
2022 |
Utilities |
$ 311 |
$ 294 |
$ 886 |
$ 933 |
Midstream |
182 |
163 |
684 |
607 |
Corporate/Other |
9 |
(3) |
5 |
(3) |
Normalized EBITDA (1) |
$ 502 |
$ 454 |
$ 1,575 |
$ 1,537 |
(1) Non-GAAP financial measure; see discussion in the Non-GAAP Financial Measures advisories of this news release. |
Income (Loss) Before Income Taxes |
Three Months Ended
|
Year Ended
|
||
($ millions) |
2023 |
2022 |
2023 |
2022 |
Utilities |
$ 207 |
$ 80 |
$ 886 |
$ 548 |
Midstream |
79 |
113 |
460 |
526 |
Corporate/Other |
(125) |
(115) |
(434) |
(358) |
Income (Loss) Before Income Taxes |
$ 161 |
$ 78 |
$ 912 |
$ 716 |
Midstream
The Midstream segment reported normalized EBITDA of
Fourth quarter 2023 results included a year-over-year improvement in the profitability of the global exports business due to stronger Asian-to-North American LPG prices during the quarter. This was partially offset by lower merchant volumes as
Over the longer-term,
Performance across the balance of the Midstream platform was strong and in line with the Company's expectations during the fourth quarter. This included strong year-over-year volume increases at
In
Midstream Hedge Program
|
Q1 2024 |
Q2 2024 |
Q3 2024 |
Q4 2024 |
FY 2024 |
Global Exports volumes hedged (%) (1) |
99 |
88 |
90 |
84 |
90 |
Average propane/butane FEI to |
18.47 |
17.37 |
16.54 |
19.24 |
17.88 |
Fractionation volume hedged (%) (3) |
75 |
91 |
91 |
66 |
80 |
Frac spread hedge rate (US$/Bbl) (3) |
28.13 |
27.51 |
27.51 |
25.06 |
27.04 |
1) |
Approximate expected volumes hedged. Includes contracted tolling volumes and financial hedges. Based on |
2) |
Approximate average for the period. Does not include physical differential to FSK for C3 volumes. Butane is hedged as a percentage of WTI. |
3) |
Approximate average for the period. |
Utilities
Normalized EBITDA in the Utilities segment was
During the quarter,
Corporate/Other
Normalized EBITDA in the Corporate/Other segment was
Pipestone Asset Acquisition
On
The Pipestone Phase II expansion project was 100 percent contracted under long-term take-or-pay agreements during the fourth quarter of 2023 with a combination of marquee independents and investment grade producers. All Pipestone Phase II customers who were existing Pipestone Phase I customers also agreed to multi-year contract extensions, further improving the long-term commercial profile of the Pipestone Assets.
With inclusion of these new agreements, the Pipestone Acquisition is constructive to our risk profile with the Company's take-or-pay and fee-for-service Midstream EBITDA mix set to increase by an estimated six percent with a commensurate decrease in commodity exposed EBITDA, once Pipestone Phase II comes online. In aggregate, more than 90 percent of the Pipestone Assets' normalized EBITDA1 is expected to come from take-or-pay or fee-for-service based contracts.
The Pipestone Assets have been integrated and
|
|
|
|
|
|
Three Months Ended
|
Year Ended
|
||
($ millions) |
2023 |
2022 |
2023 |
2022 |
Normalized EBITDA (1) |
$ 502 |
$ 454 |
$ 1,575 |
$ 1,537 |
Add (deduct): |
|
|
|
|
Depreciation and amortization |
(110) |
(112) |
(441) |
(439) |
Interest expense |
(101) |
(99) |
(394) |
(330) |
Normalized income tax expense (1) |
(60) |
(55) |
(153) |
(161) |
Preferred share dividends |
(7) |
(7) |
(27) |
(40) |
Other (2) |
(10) |
8 |
(24) |
(23) |
Normalized net income (1) (3) |
$ 214 |
$ 189 |
$ 536 |
$ 544 |
|
|
|
|
|
Net income applicable to common shares |
$ 113 |
$ 54 |
$ 641 |
$ 399 |
Normalized funds from operations (1) |
$ 376 |
$ 371 |
$ 1,128 |
$ 1,204 |
|
|
|
|
|
($ per share except shares outstanding) |
|
|
|
|
Shares outstanding - basic (millions) |
|
|
|
|
During the period (4) |
283 |
282 |
282 |
281 |
End of period |
295 |
282 |
295 |
282 |
|
|
|
|
|
Normalized net income - basic (1) (3) |
0.76 |
0.67 |
1.90 |
1.94 |
Normalized net income - diluted (1) (3) |
0.75 |
0.67 |
1.89 |
1.92 |
|
|
|
|
|
Net income per common share - basic |
0.40 |
0.19 |
2.27 |
1.42 |
Net income per common share - diluted |
0.40 |
0.19 |
2.26 |
1.41 |
1) |
Non–GAAP financial measure; see discussion in the Non-GAAP Financial Measures section of this new release. |
2) |
"Other" includes accretion expense, net income applicable to non-controlling interests, foreign exchange gains (loses), unrealized foreign exchange losses on intercompany balances, and NCI portion of non-GAAP adjustments. The portion of non-GAAP adjustments applicable to non-controlling interests are excluded in the computation of normalized net income to ensure consistency of normalizations applied to controlling and non-controlling interests. These amounts are included in the "net income applicable to non-controlling interests" line item on the Consolidated Statements of Income. |
3) |
In the fourth quarter of 2023, |
4) |
Weighted average. |
Normalized EBITDA for the fourth quarter of 2023 was
For the fourth quarter of 2023, the average Canadian/
Income before income taxes for the fourth quarter of 2023 was
Normalized net income was
Normalized funds from operations for the fourth quarter of 2023 was
Depreciation and amortization expense for the fourth quarter of 2023 was
Interest expense for the fourth quarter of 2023 was
- 2024 normalized EPS guidance of
$2.05 -$2.25 , compared to normalized EPS of$1.90 and GAAP EPS of$2.27 in 2023; and - 2024 normalized EBITDA guidance of
$1,675 million -$1,775 million , compared to normalized EBITDA of$1,575 million and income before taxes of$912 million in 2023.
The Company expects to maintain an equity self-funding model in 2024, for the fifth consecutive year, and will fund capital requirements through a combination of internally generated cash flows and investment capacity associated with rising EBITDA levels, with no expectation to issue equity. Asset sales will be considered on an opportunistic basis, with any potential proceeds to be used to de-lever and strengthen the balance sheet and continue to increase financial flexibility of
The Board of Directors approved the following schedule of Dividends:
Type |
Dividend (per share) |
Period |
Payment Date |
Record |
Common Shares1 |
|
n.a |
|
|
Series A Preferred Shares |
|
|
|
|
Series B Preferred Shares |
|
|
|
|
Series G Preferred Shares |
|
|
|
|
Series H Preferred Shares |
|
|
|
|
1. Dividends on common shares and preferred shares are eligible dividends for Canadian income tax purposes. |
Date: |
|
Time: |
|
Webcast: |
|
Dial-in (Audio only): |
1-416-764-8659 or toll free at 1-888-664-6392 |
Shortly after the conclusion of the call a replay will be available on the Company's website or by dialing 416-764-8677 or toll free 1-888-390-0541. Passcode 184752#.
This news release contains references to certain financial measures that do not have a standardized meaning prescribed by US GAAP and may not be comparable to similar measures presented by other entities. The non-GAAP measures and their reconciliation to US GAAP financial measures are shown below and within
Change in Composition of Non-GAAP Measures
In the fourth quarter of 2023, Management has changed the composition of certain of
Increase (decrease) as result of change |
Three Months Ended
|
Year Ended
|
||
($ millions, except where noted) |
2023 |
2022 |
2023 |
2022 |
Normalized net income (1) |
$ 6 |
$ 11 |
$ 7 |
$ 14 |
Normalized income tax expense |
$ 2 |
$ 3 |
$ 2 |
$ 5 |
Normalized effective tax rate (%) |
0.1 % |
— % |
— % |
0.2 % |
1) Corresponding per share amounts have also been adjusted. |
Normalized EBITDA
|
Three Months Ended
|
Year Ended
|
||
($ millions) |
2023 |
2022 |
2023 |
2022 |
Income before income taxes (GAAP financial measure) |
$ 161 |
$ 78 |
$ 912 |
$ 716 |
Add: |
|
|
|
|
Depreciation and amortization |
110 |
112 |
441 |
439 |
Interest expense |
101 |
99 |
394 |
330 |
EBITDA |
$ 372 |
$ 289 |
$ 1,747 |
$ 1,485 |
Add (deduct): |
|
|
|
|
Transaction costs related to acquisitions and dispositions (1) |
6 |
2 |
36 |
6 |
Unrealized losses on risk management contracts (2) |
94 |
156 |
70 |
49 |
Gains on sale of assets (3) |
— |
— |
(319) |
(3) |
CEO transition and other restructuring costs (4) |
15 |
— |
22 |
— |
Wind-up of pension plan (5) |
— |
— |
2 |
— |
Provisions on assets |
— |
6 |
— |
6 |
Reversal of provisions on investments accounted for by the equity method(6) |
— |
— |
— |
(3) |
Accretion expenses |
3 |
2 |
11 |
7 |
Foreign exchange losses (gains) |
12 |
(1) |
6 |
(10) |
Normalized EBITDA |
$ 502 |
$ 454 |
$ 1,575 |
$ 1,537 |
(1) |
Comprised of transaction costs related to acquisitions and dispositions of assets and/or equity investments in the period. These costs are included in the "cost of sales" and "operating and administrative" line items on the Consolidated Statements of Income. Transaction costs include expenses, such as legal fees, which are directly attributable to the acquisition or disposition. Please refer to Notes 3 and 4 of the 2023 Annual Consolidated Financial Statements for further details regarding |
(2) |
Included in the "revenue" and "cost of sales" line items on the Consolidated Statements of Income. Please refer to Note 23 of the 2023 Annual Consolidated Financial Statements for further details regarding |
(3) |
Included in the "other income" line item on the Consolidated Statements of Income. Please refer to Note 4 of the 2023 Annual Consolidated Financial Statements for further details regarding |
(4) |
Comprised of costs related to the transition of |
(5) |
Relates to the completion of the wind-up of the Canadian defined benefit pension plan in the second quarter of 2023. The settlement charge is included in the "other income" line on the Consolidated Statements of Income. Please refer to Note 28 of the 2023 Annual Consolidated Financial Statements for further details regarding the wind-up of the pension plan. |
(6) |
Relates to the return of certain costs associated with the |
EBITDA is a measure of
Normalized Net Income
|
Three Months Ended
|
Year Ended
|
||
($ millions) |
2023 |
2022 |
2023 |
2022 |
Net income applicable to common shares (GAAP financial measure) |
$ 113 |
$ 54 |
$ 641 |
$ 399 |
Add (deduct) after-tax: |
|
|
|
|
Transaction costs related to acquisitions and dispositions (1) |
5 |
1 |
27 |
4 |
Unrealized losses on risk management contracts (2) |
74 |
118 |
54 |
39 |
Gains on sale of assets (3) |
— |
— |
(217) |
(4) |
Non-controlling interest portion of non-GAAP adjustments (4) |
— |
— |
— |
5 |
CEO transition and other restructuring costs (5) |
11 |
— |
17 |
— |
Loss on redemption of preferred shares, including foreign exchange impact |
5 |
— |
5 |
84 |
Wind-up of pension plan (7) |
— |
— |
2 |
— |
Provisions on assets |
— |
5 |
— |
5 |
Reversal of provisions on investments accounted for by the equity method |
— |
— |
— |
(2) |
Unrealized foreign exchange losses on intercompany balances (9) |
6 |
11 |
7 |
14 |
Normalized net income |
$ 214 |
$ 189 |
$ 536 |
$ 544 |
(1) |
Comprised of transaction costs related to acquisitions and dispositions of assets and/or equity investments in the period. The pre-tax costs are included in the "cost of sales" and "operating and administrative" line items on the Consolidated Statements of Income. Transaction costs include expenses, such as legal fees, which are directly attributable to the acquisition or disposition. Please refer to Notes 3 and 4 of the 2023 Annual Consolidated Financial Statements for further details regarding |
(2) |
The pre-tax amounts are included in the "revenue" and "cost of sales" line items on the Consolidated Statements of Income. Please refer to Note 23 of the 2023 Annual Consolidated Financial Statements for further details regarding |
(3) |
The pre-tax amounts are included in the "other income" line item on the Consolidated Statements of Income. Please refer to Note 4 of the 2023 Annual Consolidated Financial Statements for further details regarding |
(4) |
The portion of non-GAAP adjustments applicable to non-controlling interests are excluded in the computation of normalized net income to ensure consistency of normalizations applied to controlling and non-controlling interests. These amounts are included in the "net income applicable to non-controlling interests" line item on the Consolidated Statements of Income. |
(5) |
Comprised of costs related to the transition of |
(6) |
Comprised of losses on the redemption of Series K Preferred Shares on |
(7) |
Relates to the completion of the wind-up of the Canadian defined benefit pension plan in the second quarter of 2023. The settlement charge is included in the "other income" line on the Consolidated Statements of Income. Please refer to Note 28 of the 2023 Annual Consolidated Financial Statements for further details regarding the wind-up of the pension plan. |
(8) |
Relates to the return of certain costs associated with the |
(9) |
Relates to unrealized foreign exchange losses (gains) on intercompany accounts receivable and accounts payable balances between a |
Normalized net income and normalized net income per share are used by Management to enhance the comparability of
Normalized Funds From Operations
|
Three Months Ended
|
Year Ended
|
||
($ millions) |
2023 |
2022 |
2023 |
2022 |
Cash from (used by) operations (GAAP financial measure) |
$ 154 |
$ (289) |
$ 1,121 |
$ 539 |
Add (deduct): |
|
|
|
|
Net change in operating assets and liabilities |
198 |
653 |
(100) |
650 |
Asset retirement obligations settled |
3 |
5 |
15 |
10 |
Funds from operations |
$ 355 |
$ 369 |
$ 1,036 |
$ 1,199 |
Add (deduct): |
|
|
|
|
Transaction costs related to acquisitions and dispositions (1) |
6 |
2 |
36 |
6 |
Current tax expense (recovery) on asset sales (2) |
— |
— |
34 |
(1) |
CEO transition and other restructuring costs (3) |
15 |
— |
22 |
— |
Normalized funds from operations |
$ 376 |
$ 371 |
$ 1,128 |
$ 1,204 |
(1) |
Comprised of transaction costs related to acquisitions and dispositions of assets and/or equity investments in the period. These costs exclude non-cash amounts and are included in the "cost of sales" and "operating and administrative" line items on the Consolidated Statements of Income. Transaction costs include expenses, such as legal fees, which are directly attributable to the acquisition or disposition. Please refer to Notes 3 and 4 of the 2023 Annual Consolidated Financial Statements for further details regarding |
(2) |
Included in the "current income tax expense" line item on the Consolidated Statements of Income. |
(3) |
Comprised of costs related to the transition of |
Normalized funds from operations and funds from operations are used to assist Management and investors in analyzing the liquidity of the Company. Management uses these measures to understand the ability to generate funds for capital investments, debt repayment, dividend payments, and other investing activities.
Funds from operations and normalized funds from operations as presented should not be viewed as an alternative to cash from operations or other cash flow measures calculated in accordance with GAAP.
|
Three Months Ended
|
Year Ended
|
||
($ millions) |
2023 |
2022 |
2023 |
2022 |
Cash used in investing activities (GAAP financial measure) |
$ 594 |
$ 336 |
$ 199 |
$ 997 |
Add (deduct): |
|
|
|
|
Net change in non-cash capital expenditures (1) |
26 |
(7) |
3 |
(6) |
AFUDC(2) |
(3) |
(3) |
(3) |
(3) |
Net invested capital |
$ 617 |
$ 326 |
$ 199 |
$ 988 |
Business acquisition (3) |
(327) |
— |
(327) |
— |
Purchase of remaining non-controlling interest in a subsidiary |
— |
— |
— |
(285) |
Asset dispositions |
— |
— |
1,073 |
245 |
Disposals of equity investments (4) |
— |
— |
1 |
— |
Invested capital (5) |
$ 290 |
$ 326 |
$ 946 |
$ 948 |
(1) |
Comprised of non-cash capital expenditures included in the "accounts payable and accrued liabilities" line item on the Consolidated Balance Sheets. Please refer to Note 31 of the 2023 Annual Consolidated Financial Statements for further details. |
(2) |
AFUDC is the amount that a rate-regulated enterprise is allowed to recover for its cost of financing assets under construction and is included in the "property, plant and equipment" line item on the Consolidated Balance Sheets. |
(3) |
Includes only the cash portion of the total consideration paid for the Pipestone Acquisition, net of cash acquired. |
(4) |
Relates to escrow account proceeds received from |
(5) |
In the fourth quarter of 2023, |
Invested capital is a measure of
CONSOLIDATED FINANCIAL REVIEW
|
Three Months Ended
|
Year Ended
|
||
($ millions, except where noted) |
2023 |
2022 |
2023 |
2022 |
Revenue |
3,288 |
3,898 |
12,997 |
14,087 |
Normalized EBITDA (1) |
502 |
454 |
1,575 |
1,537 |
Income before income taxes |
161 |
78 |
912 |
716 |
Net income applicable to common shares |
113 |
54 |
641 |
399 |
Normalized net income (1)(2) |
214 |
189 |
536 |
544 |
Total assets |
23,471 |
23,965 |
23,471 |
23,965 |
Total long-term liabilities |
12,195 |
12,940 |
12,195 |
12,940 |
Invested capital (1)(3) |
290 |
326 |
946 |
948 |
Cash flows used in investing activities |
(594) |
(336) |
(199) |
(997) |
Dividends declared (4) |
79 |
75 |
316 |
298 |
Cash from (used by) operations |
154 |
(289) |
1,121 |
539 |
Normalized funds from operations (1) |
376 |
371 |
1,128 |
1,204 |
Normalized effective income tax rate (%) (1)(2) |
21.1 |
21.5 |
20.9 |
20.4 |
Effective income tax rate (%) |
20.5 |
15.4 |
24.5 |
20.0 |
|
Three Months Ended
|
Year Ended
|
||
($ per share, except shares outstanding) |
2023 |
2022 |
2023 |
2022 |
Net income per common share - basic |
0.40 |
0.19 |
2.27 |
1.42 |
Net income per common share - diluted |
0.40 |
0.19 |
2.26 |
1.41 |
Normalized net income - basic (1)(2) |
0.76 |
0.67 |
1.90 |
1.94 |
Normalized net income - diluted (1)(2) |
0.75 |
0.67 |
1.89 |
1.92 |
Dividends declared (3) |
0.28 |
0.27 |
1.12 |
1.06 |
Cash from (used by) operations |
0.54 |
(1.02) |
3.98 |
1.92 |
Normalized funds from operations (1) |
1.33 |
1.32 |
4.00 |
4.28 |
Shares outstanding - basic (millions) |
|
|
|
|
During the period (5) |
283 |
282 |
282 |
281 |
End of period |
295 |
282 |
295 |
282 |
(1) |
Non–GAAP financial measure; see discussion in the Non-GAAP Financial Measures section of this News Release. |
(2) |
In the fourth quarter of 2023, |
(3) |
In the fourth quarter of 2023, |
(4) |
Dividends declared per common share per quarter: |
(5) |
Weighted average. |
For more information visit www.altagas.ca or reach out to one of the following:
Senior Vice President, Corporate Development and Investor Relations
Jon.Morrison@altagas.ca
Director, Investor Relations
Adam.McKnight@altagas.ca
Investor Inquiries
1-877-691-7199
investor.relations@altagas.ca
Media Inquiries
1-403-206-2841
media.relations@altagas.ca
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