AltaGas Reports Strong Third Quarter 2025 Results

Press Release

CALGARY, AB, Oct. 30, 2025 – AltaGas Ltd. (“AltaGas” or the “Company”) (TSX: ALA) reported third quarter 2025 financial results and provided an update on its operations, projects and other corporate developments.

THIRD QUARTER HIGHLIGHTS

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

FINANCIAL RESULTS

• Normalized EPS¹ was $0.04 in the third quarter of 2025 compared to $0.14 in the third quarter of 2024, while GAAP EPS² was a $0.08 loss in the third quarter of 2025 compared to income of $0.03 in the third quarter of 2024.
• Normalized EBITDA¹ was $268 million in the third quarter of 2025 compared to $294 million in the third quarter of 2024, while loss before income taxes was $20 million in the third quarter of 2025 compared to income before income taxes of $20 million in the third quarter of 2024. The year-over-year reduction in normalized EBITDA was primarily driven by the absence of the partial settlement of Washington Gas’ post-retirement benefit pension plan that was present in the third quarter of 2024.
• The Midstream segment reported normalized EBITDA of $204 million in the third quarter of 2025 compared to $181 million in the third quarter of 2024, while income before income taxes was $128 million in the third quarter of 2025 compared to $123 million in the third quarter of 2024. The 13 percent year-over-year increase in Midstream normalized EBITDA was driven by stronger global export volumes and merchant margins, stronger performance at AltaGas’ Dimsdale natural gas storage asset, and higher throughput volumes across AltaGas’ Northeastern B.C. (“NEBC”) facilities, partially offset by lower realized power prices at Harmattan.
• The Utilities segment reported normalized EBITDA of $68 million in the third quarter of 2025 compared to $117 million in the third quarter of 2024, while loss before income taxes was $20 million in the third quarter of 2025 compared to income before income taxes of $24 million in the third quarter of 2024. The year-over-year reduction in normalized Utilities EBITDA was principally driven by the absence of the partial settlement of Washington Gas’ post-retirement benefit pension plan that was recognized in the third quarter of 2024. Excluding this impact, AltaGas’ Utilities performance was strong, driven by ongoing system modernization investments and cost management.

 (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 September 30, 2025, which is available on www.sedarplus.ca. (2) GAAP EPS is equivalent to Net income applicable to common shares divided by shares outstanding.

NEW GROWTH PROJECTS

• AltaGas and Royal Vopak (“Vopak”) have reached a positive final investment decision (“FID”) on the Ridley Island Energy Export Facility (“REEF”) Optimization One project. With a gross capital cost of approximately $110 million, the project will increase REEF’s Phase I throughput capacity by upwards of 25,000 Bbl/d and is expected to go into service the second half of 2027. The partnership also continues to advance engineering, permitting and stakeholder work for the REEF Optimization Two project that could accommodate up to another 60,000 Bbl/d of incremental throughput.
• AltaGas continues to advance growth projects across its Utilities, including reaching a positive FID on the Keweenaw Connector Pipeline in Michigan. The 30-mile pipeline will enhance gas delivery to 14,000 customers in Michigan’s Upper Peninsula. The project is expected to have an approximate US$135 million capital cost with an early 2027 in-service date. SEMCO also completed the pipeline construction for a natural gas interconnect at DTE Energy’s Belle River coal-to-natural gas power plant conversion project that was announced in the second quarter and is now contributing financially.
• AltaGas reached a positive FID on the Phase One expansion of the Dimsdale natural gas storage facility. Capital cost for the project is estimated at approximately $65 million with a 2026 year-end targeted in-service date. The 6 Bcf expansion is backed by two ten-year firm storage service contracts with Tourmaline Oil Corp. and Gunvor Group. The project will focus on facility debottlenecking with a new meter station, pipeline interconnect, and dehydration equipment that will expand capacity, increase reliability, and significantly reduce operating costs. The Company also continues to advance the next, larger Dimsdale expansion project, which is expected to more than double storage capacity, while leveraging common infrastructure from the first phase of expansion.
• AltaGas continues to advance multiple other organic projects that will increase its secured growth backlog. This includes progressing regulatory, engineering, and commercial work on REEF Optimization Two, Phase Two of the Dimsdale expansion, the North Pine expansion, Pipestone III and other projects.

MVP UPDATE

• The Mountain Valley Pipeline (“MVP”) delivered another strong quarter, which reflected the pipeline’s long-term contracts and robust demand to move Appalachian gas into key downstream markets. The 2.0 Bcf/d pipeline is operating near current capacity under 20-year contracts with strong customer demand for additional capacity.
• Following a highly oversubscribed open season, the partners have increased the size of the proposed MVP Boost expansion project by 20 percent. Boost is expected to increase MVP capacity by 600 MMcf/d with a mid-2028 in-service date. This is a year earlier than previously expected with the entire 600 MMcf/d of incremental capacity fully contracted by investment grade utilities under 20-year take-or-pay agreements. The US$450 million project is targeting an approximate three times capex-to-EBITDA build multiple. The proposed MVP Southgate project is also progressing under the more efficient project plan, as the Federal Energy Regulatory Commission (“FERC”) published its Environmental Assessment in October concluding that Southgate would not cause significant negative impacts from its development if the project adheres to certain mitigation measures and environmental safeguards.
• AltaGas continues to move through its sale process for its interest in MVP, inclusive of recent positive developments on the pipeline, and expects to provide an update in the coming weeks.

GROWTH PROJECT EXECUTION

• Construction of REEF continues to progress on time and on budget, with 77 percent of total project capital costs incurred or committed to date and 70 percent of costs under fixed-price engineering, procurement and construction (“EPC”) contracts. The first of three LPG accumulators and the propane and butane bullets are expected to arrive on site in the coming weeks. Rail installation work is ongoing with the first of the two phases near completion. Jetty progress continues to accelerate with seven rigs on site with all permanent trestle piles now placed and trestles are actively being installed.
• Construction of the Pipestone II deep-cut natural gas processing facility is mechanically complete with commissioning taking place over the coming months. Construction of the facility occurred without incident or mechanical issues and remains on track for a year-end in-service date. Pipestone II is fully contracted under long term take-or-pay agreements and will provide critical gas processing and liquids handling capacity in one of the most active liquids-rich natural gas producing regions in Western Canada.
• AltaGas continues to advance a number of data center development opportunities within its Utilities, with front-end engineering and design (“FEED”) studies in process across Virginia, Michigan and Maryland. The Company remains focused on pursuing these ventures on a de-risked basis by constructing pipeline interconnects to onsite power generation through rate regulated investments.

OPERATIONAL AND BUSINESS HIGHLIGHTS

• AltaGas exported a record 133,147 Bbl/d of liquid petroleum gases (“LPG”) to Asia in the third quarter, an increase of four percent year-over-year, bringing the 2025 year-to-date average to 126,798 Bbl/d. Third quarter export volumes included 13 Very Large Gas Carriers (“VLGCs”) being shipped from the Ridley Island Propane Export Terminal (“RIPET”) and 10 from the Ferndale Terminal (“Ferndale”).
• Midstream throughput continued to grow in the third quarter of 2025 with gas processing volumes up five percent year-over-year, led by AltaGas’ Montney footprint, despite a planned turnaround at Pipestone I. Strong demand for gas storage benefitted AltaGas’ Dimsdale storage facility in the quarter, where utilization levels were near capacity. Despite recent natural gas price volatility, the long-term outlook for continued production growth across Western Canada and AltaGas’ footprint remains robust.
• The Pipestone I turnaround was completed in the third quarter with no major safety incidents over the nearly 80,000 hours of work. This follows similar operational excellence that was demonstrated during the RIPET and NEBC facility turnarounds in the second quarter of 2025 that were executed as planned and with no major safety incidents.
• AltaGas continues to focus on operational excellence and cost management at the Utilities, which continued to benefit results at Washington Gas in the third quarter. Operating and maintenance (“O&M”) costs were down five percent year-over-year as the Company focuses on disciplined efficiency. The continued focus on cost structure ensures we are providing the lowest cost for our customers and provides headroom to continue making investments to modernize the network while minimizing the impact on customer bills.
• On August 4, 2025, Washington Gas filed an amendment to its Steps to Advance Virginia Energy (“SAVE”) Accelerated Replacement Program (“ARP”) seeking to extend the currently approved program by one year and move forward with a revised three-year plan. This includes a pre-approval request to invest US$700 million in modernization capital between 2026 and 2028. Washington Gas expects the Virginia State Corporation Commission (“SCC of VA”) to provide an order on the filing by 2025 year-end.
• In order to ensure pipeline modernization work continues while the Public Service Commission of the District of Columbia (“PSC of D.C.”) reviews Washington Gas’ District Strategic Accelerated Facility Enhancement (“SAFE”) proposed modernization program, Washington Gas filed an application with the PSC of D.C. to extend PROJECTpipes 2 through June 30, 2026, with an additional spending limit of US$33 million.

2025 GUIDANCE AND OTHER HIGHLIGHTS

• Following AltaGas’ strong third quarter results, the Company is reiterating its 2025 full-year guidance, including normalized EBITDA of $1,775 million to $1,875 million and normalized EPS of $2.10 to $2.30.
• On September 5, 2025, AltaGas issued $200 million of 5.375 percent Fixed-to-Fixed Rate Junior Subordinated Hybrid Notes, Series 4, due on December 5, 2055. AltaGas used the proceeds of the hybrid issuance to redeem its Series A and Series B Preferred Shares. AltaGas expects aggregate cash savings of approximately $30 million over the initial five-year term from the issuance due to lower taxes and financing charges relative to the potential reset rate on the Series A and Series B Preferred Share dividends.

CEO MESSAGE

“We’re pleased with our strong third quarter performance, which reflects continued execution of our strategic priorities and positions us to deliver on our 2025 guidance,” said Vern Yu, President and CEO of AltaGas. “Our focus remains on optimizing our existing assets to drive the best outcomes for stakeholders, while advancing current growth projects and developing new opportunities to expand our secured growth backlog.

“This quarter, we formally sanctioned three new growth projects: REEF Optimization One, Phase One of the Dimsdale gas storage expansion, and the Keweenaw Connector Pipeline. Each project aligns with our long-term strategy, supports our growth outlook, and reinforces our commitment to disciplined capital allocation that drives long-term value.

“The long-term fundamentals for natural gas and natural gas liquids (“NGLs”) remain constructive, supporting the positive FIDs we’ve made within our midstream business. Development activity continues to be strongest in the Montney, where AltaGas has a leading footprint. As LNG demand pull grows, we expect increased supply of gas and associated liquids, creating further growth opportunities for our integrated infrastructure.

“Global energy demand and the outlook for natural gas use continue to rise. This is increasingly evident across our Utilities’ operating jurisdictions, where electric demand in PJM has grown more than three percent year-to-date, driven by commercial and industrial load growth — particularly from data centers. This reinforces the critical role of natural gas in delivering reliable and cost-effective energy over the long term.

“Industrial expansion and the need to replace aging infrastructure are driving a rapidly growing backlog of gas-fired generation projects across the U.S. This is being met with significant increases in electric utilities capital spending through the end of the decade, which will be inflationary for delivered electricity costs. Natural gas, with an affordability advantage of nearly 70 percent below the cost of electricity, underpins our commitment to making significant investments and ensuring we are positioned to deliver the long-term energy required to keep society moving forward.

“We’re excited about AltaGas’ future and the value we can unlock through disciplined execution of our strategy, while continuing to meet the growing demand for reliable and affordable natural gas and NGLs across our customer base.”

RESULTS BY SEGMENT

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