AltaGas announces a Six Percent Dividend Increase, 2026 Guidance and Updated Strategic Priorities

Press Release

CALGARY, AB, Dec. 2, 2025  – AltaGas Ltd. (“AltaGas” or the “Company”) (TSX: ALA) is pleased to announce a six percent increase to its common share dividend, 2026 guidance, and continued execution of the Company’s strategic priorities.

2026 GUIDANCE

(all financial figures are unaudited and in Canadian dollars unless otherwise noted)

• 2026 normalized EBITDA¹ guidance: $1.925 billion–$2.025 billion, representing approximately 8 percent year-over-year growth based on midpoint guidance.
• 2026 normalized EPS¹ guidance: $2.20–$2.45, representing approximately 6 percent year-over-year growth based on midpoint guidance.
• As growth projects come into service, the Company expects earnings and cash flow growth in both Utilities and Midstream. Within Utilities, this includes the benefit of the Virginia and District of Columbia (“D.C.”) rate cases, and partial contribution from a Maryland rate case planned to be filed in the coming weeks, as well as contributions from asset modernization investments and new customer growth. Midstream growth will be driven by Pipestone II coming online, continued global exports growth, and stronger performance across the Midstream value chain.
• AltaGas is increasing its annual common share dividend by six percent to $1.34 per share. This marks the sixth consecutive annual dividend increase, reinforcing the Company’s commitment to delivering regular and sustainable annual dividend growth. AltaGas is extending its five to seven percent compounded annual growth rate (“CAGR”) guidance on dividends through 2030.

2026 CAPITAL PROGRAM

• AltaGas’ 2026 capital program is set at approximately $1.6 billion, excluding asset retirement obligations (“ARO”). Approximately 69 percent will be allocated to Utilities, 27 percent to Midstream, and the balance to upgrade systems and technology to improve long-term operating efficiency. The program is driven by strong organic growth opportunities across the enterprise and higher annual investment capacity from growing normalized EBITDA and enhanced financial flexibility.
• Utilities: Approximately $1.1 billion is planned to be deployed across the Utilities, including funding asset modernization programs, construction of the Keweenaw Connector Pipeline in Michigan, continued customer growth, and system betterment initiatives. These investments will enhance the long-term safety and reliability of the Utilities network while expanding its footprint to provide customers with low-cost natural gas across its jurisdictions.
• Midstream: Approximately $430 million is planned to be deployed in Midstream to complete the Ridley Island Energy Export Facility (“REEF”) Phase 1, advance REEF Optimization 1 (“REEF Opti 1”), and complete the Dimsdale Phase I expansion and the Ridley Island Propane Export Terminal (“RIPET”) Methanol Removal project. The Company will also fund any capital calls from the highly attractive Mountain Valley Pipeline (“MVP”) Boost and Southgate projects, pending final investment decisions (“FIDs”) and ongoing maintenance expenditures across the Midstream platform.

Notes: 1) Non-GAAP measure; see discussion in the advisories of this news release and reconciliation to US GAAP financial measures shown in AltaGas’ Management’s Discussion and Analysis (MD&A) as at and for the period ended September 30, 2025, which is available on www.sedarplus.com; and 2) excluding Asset Retirement Obligations (“ARO”).

STRONG COMMITMENT TO INVESTMENT GRADE BALANCE SHEET

• AltaGas remains committed to maintaining a strong balance sheet with a targeted BBB-mid investment-grade credit rating. The Company expects to maintain an Adjusted Net Debt¹-to-normalized EBITDA¹ leverage ratio around its previously stated target of 4.65x with fluctuations between 4.5x to 5.0x to account for working capital, foreign exchange rates, annual capital deployment levels, and other seasonality factors. In 2026, the Company expects to be in the upper-half of the range and is expected to trend toward the lower-end of the range once REEF comes online.
• Following the Company’s decision to retain its equity ownership in MVP and the $460 million equity raise to fund this asset retention, both S&P Global Ratings (“S&P”) and Fitch Ratings (“Fitch”) revised their credit outlooks on AltaGas positively:
  • Fitch: Revised AltaGas’ outlook to Stable and affirmed its BBB rating, citing improving FFO leverage, supported by the recent equity issuance, stable utility cash flows, strong LPG export demand, and AltaGas’ retained 10% MVP ownership.
  • S&P: Revised AltaGas’ outlook to Positive and affirmed its BBB- rating. This reflects an improvement in S&P’s FFO-to-debt outlook over the next 24 months as growth projects come online, and business risk continues to decline.

CEO MESSAGE

“2026 will be another year of strong execution and growth for our energy infrastructure platform” said Vern Yu, AltaGas’ President and Chief Executive Officer. “Our increased investment capacity allows us to advance more projects that will meet our customers’ long-term needs and drive long-term sustainable growth across the enterprise.

“With Pipestone II now complete, we are increasing capital allocation to Utilities, which allows for more investment in asset modernization, customer additions, and system expansion. We’re excited to begin construction on the Keweenaw Connector Pipeline in Michigan and increase our modernization investments in Virginia. We continue to focus on operating efficiency, managing our cost structure and remaining active on regulatory engagement.

“The start-up of LNG Canada and progress on other LNG projects reinforces the long-term growth outlook for Canadian natural gas and natural gas liquids. Our 2026 capital plan leverages these market conditions to advance key projects that will fuel Midstream growth over the coming decades. In 2026, we will complete construction of the REEF project while concurrently commencing work on REEF Optimization 1, construct the Dimsdale Phase I expansion, and fund other high-return Midstream projects, like MVP Boost and Southgate.

“This is our sixth consecutive annual dividend increase, which reflects the strength of our business model and demonstrates our commitment to consistently increase returns of capital to our shareholders. Following another year of delivering on strategic priorities and generating industry-leading total shareholder returns in 2025, we are excited to deliver another year of disciplined execution and growth.”

2026 GUIDANCE

AltaGas expects to achieve normalized EPS¹ of $2.20 – $2.45 and normalized EBITDA¹ of $1.925 billion – $2.025 billion in 2026, with year-over-year growth anticipated across the Utilities, Midstream and Corporate/Other segments:

Utilities

Expected to represent 54 percent – 58 percent of 2026 normalized EBITDA¹.

•  Growth Drivers:
  • New rates in Virginia, D.C. and Maryland.
  • Continued growth from asset modernization programs.
  • Continued customer additions and normal weather conditions.
•  Offsets:
  • Lower Retail performance.
• Rate Cases and Anticipated Filings:
  • D.C.: New rates in place for January 1, 2026, with rate case order received in late November, which included approximately US$21 million in new rates after taking into account a US$12.5 million ProjectPIPES surcharge.
  • Virginia: Interim rates expected to be in place in early 2026 as part of an active rate case. This request includes incremental rates of US$65 million, net of a US$39 million Steps to Advance Virginia Energy (“SAVE”) surcharge.
  • Maryland: The Company plans to file a new rate case with the Maryland Public Service Commission (“Maryland PSC”) in the coming weeks, with new rates expected to take effect in the second half of 2026.

Through ongoing asset modernization investments, customer additions, and system expansions, AltaGas expects an annual average rate base growth of eight percent over the next five years. In 2026, AltaGas expects this growth to be higher at approximately ten percent. The Company continues to advance data center opportunities and other large load customer growth on a de-risked basis with projects being pursued in Northern Virginia, Michigan and Maryland, which has the potential to add modest incremental rate base growth.

Midstream

Expected to represent 42 percent – 46 percent of 2026 normalized EBITDA¹.

•  Growth Drivers:
  •  Pipestone II deep-cut gas processing facility online for full year.
  •  Partial-year contribution from Dimsdale Phase 1 expansion project.
  •  Strong global export performance.
• Offsets:
  • Lower merchant export performance.
  • Lower frac spreads.

AltaGas continues to focus on optimizing its assets to drive strong returns across its value chain. Operational enhancements and strong demand at Ferndale and RIPET are expected to support higher export volumes, allowing three additional ships at RIPET and two at Ferndale in 2026. Increased export volumes provide additional long-term growth and enhanced asset optimization opportunities.

The Company remains on track to complete construction of REEF Phase 1 by 2026 year-end, which will add an incremental 56,000 Bbls/d of LPG export capacity. The project has 80 percent of total costs either incurred or committed while 73 percent of total costs are now under fixed price contracts. The arrival of major equipment marks a further milestone, as the butane and propane bullets and the first accumulator have arrived onsite and have been placed. AltaGas continues to advance the REEF Optimization I project through procurement, construction contracting and finalizing workstreams. Optimization I is expected to add 25,000 Bbls/d of propane export capacity to REEF Phase I and come online during the second half of 2027.

AltaGas remains focused on its commitment to de-risking the global exports business as a strategic priority. AltaGas has delivered significant progress on its long-term commercial contracting strategy and surpassed its long-term tolling target of 100,000 Bbl/d. These achievements enhance cash flow predictability and reduce volatility, while continued financial hedging further mitigates residual commodity exposure.

Corporate/Other

The Corporate segment is also expected to show stronger year-over-year financial performance in 2026, due to higher contribution from Blythe and lower Corporate general and administrative (“G&A”) costs.

2026 STRATEGIC PRIORITIES

AltaGas has shown strong progress across its strategic priorities in 2025 and remains focused on creating long-term per share value by advancing these priorities in 2026. AltaGas’ priorities include:

1. Optimize assets for maximum returns by increasing asset utilization, extending asset life, and controlling operating costs to maximize returns on capital; and by consistently filing rate cases to minimize regulatory lag.
2. Actively manage risk through continued long-term commercial contracting in Midstream, systematic hedging of residual risks, and active regulatory initiatives that provide increased certainty for customers and shareholders.
3. Maintain a strong balance sheet with a targeted BBB-mid investment-grade credit rating. The Company expects to maintain an Adjusted Net Debt¹-to-normalized EBITDA¹ leverage ratio of approximately 4.65x, with a targeted range of 4.5x – 5.0x.
4. Advance key growth projects with Utilities investments that will include our asset modernization programs and the construction of the Keweenaw Connector Pipeline. In Midstream, we will complete REEF Phase I construction and advance REEF Optimization 1, the Dimsdale Phase I expansion project, MVP Boost and MVP Southgate, and other Midstream business development initiatives.
5. Rigorous capital allocation that drives a stable and growing enterprise.

2026 DIVIDEND INCREASE

AltaGas’ Board of Directors approved a six percent increase to the annual common share dividend to $1.34 per share for the 2026 calendar year, which equates to a rate of $0.334 per common share on a quarterly basis. Subject to approval of the Board of Directors, the first quarterly dividend of $0.334 per common share is expected to be effective for the March 2026 dividend and will be paid on March 31, 2026, to common shareholders of record on March 16, 2026. These dividends are eligible dividends for Canadian income tax purposes.

2026 CAPITAL

AltaGas’ 2026 capital plan of approximately $1.6 billion, excluding ARO, is weighted towards the Utilities business, which is anticipated to drive strong long-term rate base growth and risk-adjusted returns. The Company is allocating approximately 69 percent of consolidated 2026 capital to the Utilities business and approximately 27 percent to the Midstream business. This represents a higher allocation to Utilities compared to 2025 with near-term Midstream investments reduced due to completion of the Pipestone II project and lower capital spend at REEF, as the project completed a number of capital-intensive workstreams in 2025. Robust spending within Utilities will be directed toward modernization programs, system betterment and system expansions. This includes the Keweenaw Connector Pipeline in Michigan and higher modernization spending in Virginia. The latter of which is supported by the recent approval of Washington Gas’ SAVE Accelerated Replacement Program (“ARP”) from the Virginia State Corporation Commission (“Virginia SCC”) that approved US$700 million of investment through 2028 year-end. Washington Gas will also continue to make steady investments into D.C. given the constructive outcome of its 2024 rate case and the additional extension of the PROJECTpipes 2 ARP program for US$25 million, which extends visibility through June 2026 while the multi-year District Strategic Accelerated Facility Enhancement (“District SAFE”) ARP continues to be reviewed.

The Company will fund 2026 capital spending through a combination of internally generated cash flows and the higher investment capacity associated with stronger normalized EBITDA across the enterprise, including a full year contribution from Pipestone II and other projects coming into service through 2026, and AltaGas’ stronger balance sheet.

Table 1: Capital Allocation Breakdown

Segment	Total Capital	Allocation within Segment and Focus Areas
Utilities	~$1.10 billion	42%	Asset modernization programs across jurisdictions
		29%	Maintenance, safety and reliability investments, including system betterment
		15%	Customer growth and new meters
		14%	System expansion, including the Keweenaw Connector Pipeline
Midstream	~$430 million	51%	REEF Phase 1 and REEF Opti 1
		22%	Maintenance, safety and reliability investments
		18%	Additional Growth: MVP Boost and Southgate; RIPET Methanol Removal
		9%	Dimsdale Phase I Expansion
Corporate/Other	~$60 million		Blythe maintenance; systems and technology investments driving efficiency across the enterprise

ABOUT ALTAGAS

AltaGas is a leading North American infrastructure company that connects customers and markets to affordable and reliable sources of energy. The Company operates a diversified, lower-risk, high-growth energy infrastructure business that is focused on delivering stable and growing value for its stakeholders.

For more information visit www.altagas.ca or reach out to one of the following:

Jon Morrison
Senior Vice President, Corporate Development and Investor Relations
Jon.Morrison@altagas.ca

Aaron Swanson
Vice President, Investor Relations
Aaron.Swanson@altagas.ca

Investor Inquiries
1-877-691-7199

Media Inquiries
1-403-206-2841
media.relations@altagas.ca

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