Atlas Strong Q4
ORIGINAL: AltaGas Announces Strong Q4 and 2020 Results
AltaGas Announces Strong Q4 and 2020 Results
2021-02-26 06:00 ET - News Release
AltaGas Announces Strong Q4 and 2020 Results
Canada NewsWire
CALGARY, AB, Feb. 26, 2021
AltaGas delivers strong 2020 results with normalized EPS eclipsing guidance range; continues to advance corporate strategy of building a diversified and enduring platform focused on sustainable stakeholder value.
CALGARY, AB, Feb. 26, 2021 /CNW/ - AltaGas Ltd. ("AltaGas" or the "Company") (TSX: ALA) today reported fourth quarter and full-year 2020 financial results. The Company also reaffirmed its 2021 guidance and provided an update on its operations and outlook.
HIGHLIGHTS
(all financial figures are unaudited and in Canadian dollars unless otherwise noted)
- Normalized EPS1 of $0.53 in the fourth quarter and $1.42 for the full year in 2020 continued to demonstrate strong execution and the Company's focus on delivering durable earnings growth. This included 2020 normalized EPS increasing 14% Y/Y and eclipsed AltaGas' $1.20 - $1.30 guidance range.
- Normalized EBITDA1 was $392 million for the fourth quarter and $1.310 billion for the full-year in 2020 and was in the higher-end of the guidance range of $1.275 billion - $1.325 billion, despite the challenges associated with the COVID-19 pandemic. Results reiterate the resiliency of the platform and relentless focus on execution.
- The Utilities segment showed marked progress in advancing the Company's operational excellence model, which is centered on better customer outcomes, with full-year 2020 realized ROE at WGL increasing by approximately 150 basis points Y/Y, driven by ongoing capital, regulatory and cost discipline.
- Despite supply chain headwinds realized late in Q3 and early Q4 of 2020, RIPET demonstrated strong execution and achieved the Company's 50,000 Bbls/d exit rate target. This included RIPET export volumes averaging 50,600 Bbls/d in December 2020 and January 2021. RIPET and Ferndale are both well-positioned to support sturdy corporate earnings growth in 2021.
- AltaGas' Northeastern B.C. (NEBC) footprint continued to deliver steady increases in throughput as customers continue to grow into contractual agreements at the recently expanded Townsend deep-cut and North Pine fractionation facilities. Excluding the one-time impact of maintenance work at Younger, NEBC throughput volumes were up by 16% Y/Y. Inclusive of the maintenance outage, volumes were up 5% Y/Y in Q4 2020.
- On November 30, 2020, AltaGas completed the issuance of $700 million of senior unsecured medium-term notes. The net proceeds were used to pay down existing indebtedness and fund the redemption of the Series I Preferred Shares and to continue to optimize, stagger, extend and de-risk AltaGas' capital structure.
- On December 10, 2020, AltaGas announced 2021 guidance and a 4% increase to the common share dividend. The 2021 outlook remains unchanged with expected normalized EBITDA in the range of $1.4 billion - $1.5 billion and normalized EPS of $1.45 - $1.55. This guidance is underpinned by expectations for steady growth in Utilities and Midstream, which is anticipated to drive declining leverage ratios and reduced payout ratios.
- On December 16, 2020, AltaGas closed the acquisition of an additional 37% equity interest in Petrogas and took operational responsibility for the business. Integration is going smoothly with employees being strong cultural fits and the platform is set to provide strong contribution in 2021.
- Subsequent to quarter-end, Moody's upgraded the Issuer Rating of SEMCO Energy Inc. (SEMCO) to A3 with stable outlook and assigned A1 senior secured rating to SEMCO's first mortgage bonds.
- On February 2, 2021, AltaGas announced the appointment of Jon-Al Duplantier to AltaGas' Board of Directors. Jon-Al brings more than 25 years of experience across the energy value chain and a range of disciplines.