Core Utility Assets Continue to Perform WellAltaGas' Q2 EBITDA of $206m was below our estimate of $212m and consensus of $208m (range $200m-$212m). Cash flow was ahead of our expectation, with FFOPS of $0.50 versus our estimate of $0.47. EPS of $0.06 was ahead of our $0.00 estimate largely due to a lower-than-expected depreciation expense, of which $0.04 we view as one-time in nature. Utilities EBITDA for Q2 (seasonally a weak quarter) of $80m was ahead of our $71m estimate. The segment benefited from new rates at Maryland, Virginia, and SEMCO. Partially offsetting this were higher COVID-19 costs and lower retail energy margins. We note that AltaGas' regulatory jurisdictions have initiated proceedings or issued orders relating to the costs associated with COVID-19. With a rate base growth outlook of 8%-10% per year out to 2024, as well as improving ROEs, we see significant earnings growth potential at its utilities. For context, we estimate that WGL earned a 7.0%-7.5% ROE in 2019, which we see improving to ~9% in 2021. This would still be below management's targeted ROE of 9.4% (Exhibit 2), which implies some upside to our estimates. Gas (Midstream) EBITDA of $111m was up 15% y/y but missed our $125m estimate due to lower-than-expected RIPET, Petrogas, and NGL marketing contributions. The Ridley Island Propane Export Terminal (RIPET) loaded seven ships during the quarter (~41 kbpd) and generated $30m of EBITDA (Exhibit 3). This was below our $38m estimate, as average margin of $7.88/bbl was below our $8.50/bbl estimate. We had expected a stronger margin in Q2 due to the reversal of hedging losses in Q1.