AltaGas Reports Strong Fourth Quarter and Full Year 2025 Results

Press Release

CALGARY, AB, March 6, 2026 – AltaGas Ltd. (“AltaGas” or the “Company”) (TSX: ALA) reported fourth quarter and full year 2025 results, reaffirmed 2026 guidance, and provided an update on its operations, projects and other corporate developments.

Fourth Quarter and 2025 Highlights

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

Financial Results

• Normalized EBITDA¹ was $564 million in the fourth quarter and $1,863 million for the full year of 2025, while income before income taxes was $310 million in the fourth quarter and $1,029 million for the full year of 2025. 2025 normalized EBITDA increased five percent year-over-year and was at the upper-end of AltaGas’ guidance range. Midstream growth was driven by strong liquified petroleum gas (“LPG”) export volumes and margins. Stronger Utilities performance came from higher rate base, asset optimization and favorable weather.
• Normalized EPS¹ was $0.77 in the fourth quarter and $2.23 for the full year of 2025 while GAAP EPS² was $0.67 in the fourth quarter and $2.48 for the full year of 2025. Full year normalized EPS was above the mid-point of AltaGas’ guidance range, driven by strong performance across the enterprise, partially offset by higher depreciation and amortization and increased tax expense.

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(1) Non-GAAP measure; see discussion and reconciliation to US GAAP financial measures in the advisories of this news release or in AltaGas’ Management’s Discussion and Analysis (MD&A) as at and for the period ended December 31, 2025, which is available on www.sedarplus.ca. (2) GAAP EPS is equivalent to Net income applicable to common shares divided by shares outstanding.

Operational and Business Highlights

• AltaGas exported 124,593 Bbl/d of LPG to Asia in the fourth quarter, with 21 Very Large Gas Carriers (“VLGCs”) loaded across the Ridley Island Propane Export Terminal (“RIPET”) and the Ferndale Terminal (“Ferndale”). Full‑year exports were a record 126,572 Bbl/d, up four percent year‑over‑year, with 83 ships delivered to Asia.
• Midstream throughput increased in 2025, with fourth quarter fractionation and liquids handling volumes up seven percent year‑over‑year, led by the Montney. North Pine throughput reached record volumes and operated near its 25,000 Bbl/d capacity.
• Utilities delivered its best safety results on record, with total recordable injury frequency (“TRIF”) down meaningfully from historical levels. This improvement reflects strong operational discipline and places SEMCO in the top quartile for safety performance amongst the peer group.

Growth Project Updates

• Pipestone II was placed in service in December 2025 and is operating at over 90 percent utilization under long‑term take‑or‑pay contracts.
• The Ridley Island Energy Export Facility (“REEF”) remains on budget and on schedule for 2026 completion as over 85 percent of capital has been committed or incurred and more than 70 percent of equipment has been delivered and installed. REEF Optimization I construction is underway and will add an additional 30,000 Bbl/d of propane export capacity in the second half of 2027.
• Dimsdale Phase I and II expansions will add 6 Bcf of storage capacity by 2026 year-end and another 30 Bcf by mid-2027. The expansions are backed by long-term take-or-pay storage contracts. The facility will help balance LNG demand draws associated with Western Canada’s growing production and natural gas exports.
• AltaGas’ decision to retain its ownership interest in the Mountain Valley Pipeline (“MVP”) was further reinforced by strong operational performance and improving outlooks for the MVP Boost and MVP Southgate expansion projects. Recent milestones include unanimous approval of the revised route by the U.S. Federal Energy Regulatory Commission (“FERC”) and issuance of key North Carolina water permits for MVP Southgate.
• Construction of the 30-mile Keweenaw Connector Pipeline is advancing, with long lead‑time materials procured and all land rights secured. Construction is expected to begin in the second quarter of 2026, with an anticipated in‑service date of early 2027.
• AltaGas’ Utilities continue to advance data center development opportunities, with engineering and design studies completed in Virginia, Michigan, and Maryland. In late 2025, the Company executed an agreement for the first phase of a 24‑MW data center in Maryland, with Phase I expected to be completed by year‑end 2026.

Regulatory Highlights

• In November 2025, the Public Service Commission of the District of Columbia (“PSC of D.C.”) approved a US$33 million rate base increase, including a US$12 million roll‑in from the PROJECTpipes 2 Accelerated Replacement Program (“ARP”). Rates became effective January 2026 with an allowed return on equity (“ROE”) of 9.65 percent.
• Washington Gas filed a US$82 million rate case in Maryland, requesting an ROE of 10.85 percent. Excluding the US$15 million STRIDE modernization program transfer, the net rate increase requested totals US$67 million.
• The Virginia State Corporation Commission (“SCC of VA”) approved Washington Gas’ full US$700 million amendment to the Virginia Steps to Advance Virginia Energy (“SAVE”) ARP, extending the program through the end of 2028.
• Washington Gas received authorization from the PSC of D.C. to extend the PROJECTpipes 2 modernization program through June 30, 2026, with an additional US$25 million. On March 4, 2026, the PSC of D.C. approved the District Strategic Accelerated Facility Enhancement (“SAFE”) modernization program with US$150 million of authorized spending from July 1, 2026 to June 30, 2029.
• On February 26, 2026, SEMCO filed a US$61 million rate case in Michigan requesting a 10.75 percent ROE. Proposed rates include capital investments since January 2020 and the pre-approved capital associated with construction of the Keweenaw Connector Pipeline. SEMCO proposed approval of a weather normalization adjustment mechanism and anticipates new rates to be in place by early 2027.

Board Chair Appointment

• As part of a planned transition, Derek Evans has been appointed as the incoming Board Chair, effective May 1, 2026. Pentti Karkkainen will continue to serve as Chair until the transition date and will remain on the Board as an active Director thereafter to support continuity and ongoing Board leadership.

2026 Guidance and Financial Updates

• AltaGas has had a strong start to 2026 and is reiterating the Company’s 2026 full year guidance, including normalized EBITDA of $1.925 billion to $2.025 billion and normalized net income per share of $2.20 to $2.45.
• AltaGas’ adjusted net debt to normalized EBITDA¹ exited 2025 at 4.7x on a trailing twelve-month basis, including 50 percent debt treatment for its subordinated hybrid notes and preferred shares. This is in line with the Company’s targeted leverage range of 4.5 – 5.0x and compares to 5.1x at 2024 year-end.
• On December 1, 2025, AltaGas’ Board of Directors approved a six percent increase to its 2026 common share dividends to $1.34 per common share annually ($0.334 per common share quarterly). AltaGas also extended its five to seven percent dividend compounded annual growth rate (“CAGR”) guidance to 2030.

CEO Message

“2025 was a year of strong execution and disciplined delivery for AltaGas,” said Vern Yu, President and Chief Executive Officer of AltaGas. “We achieved the top end of our EBITDA guidance range and delivered earnings per share in the upper half of guidance, reflecting strong performance across our Utilities and Midstream businesses.

“We made meaningful progress against our strategic priorities, where we maximized returns from our existing asset base by achieving record global export volumes, increasing midstream asset utilization, advancing rate cases across multiple jurisdictions, and continuing to drive strong cost management across the organization.

“We further de‑risked the business by securing more than 100,000 barrels per day under long-term contracts for our export business and increasing take-or‑pay commitments at our Dimsdale storage facility. We strengthened our balance sheet and achieved our target credit metrics. The removal of negative outlooks by Fitch and S&P reflects the resilience and durability of our cash flows.

“We executed on our growth projects by bringing Pipestone II into service on-time and on-budget, and we significantly advanced REEF, while adding more than $400 million of new modernization capital in our Utilities business. We were pleased to reach key final investment decisions on our RIPET methanol removal project, REEF Optimization I, and Dimsdale Phase I and II. We also progressed critical infrastructure expansions, including accelerated pipeline replacement project approvals and extensions in Virginia, and the MVP expansion projects.

“Through 2025, we maintained disciplined capital allocation, as demonstrated by our fourth quarter equity issuance and MVP retention, a 6 percent dividend increase for 2026, and meaningful debt reduction, while positioning AltaGas to continue investing in a slate of strong, risk-adjusted returning organic growth opportunities in 2026. These actions underscore the strength of our strategy, the quality of our assets, and our continued focus on long‑term value creation for shareholders.”

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