AltaGas Ltd. Market Research Report

Background

Company Overview

AltaGas Ltd. is a North American energy infrastructure company headquartered in Calgary, Alberta, Canada. Established on April 1, 1994, the company specializes in connecting customers and markets to affordable and reliable sources of energy. With a workforce of approximately 2,801 employees, AltaGas operates across Canada and the United States, serving around 1.6 million customers.

Mission and Vision

AltaGas's mission is to deliver safe, reliable, and affordable energy solutions to its customers. The company's vision is to be a leading North American energy infrastructure company, focusing on owning and operating assets that connect natural gas and natural gas liquids (NGLs) to domestic and global markets.

Primary Area of Focus

The company operates in three main segments:

• Utilities: Regulated natural gas distribution and storage utilities serving residential, commercial, and industrial customers.

• Midstream: Natural gas gathering, processing, and NGL extraction, along with transportation, storage, and marketing services.

• Power: Power generation assets, including both conventional and renewable energy sources.

Industry Significance

AltaGas plays a crucial role in the North American energy sector by providing integrated energy solutions that span the entire value chain—from upstream natural gas production to downstream distribution and export. Its diversified operations contribute to the stability and reliability of energy supply across its service areas.

Key Strategic Focus

Core Objectives

• Diversification: Maintaining a balanced portfolio across utilities, midstream, and power segments to mitigate risks and capitalize on growth opportunities.

• Expansion: Growing its presence in both Canadian and U.S. markets through strategic acquisitions and organic growth.

• Sustainability: Integrating environmental, social, and governance (ESG) principles into operations to ensure long-term viability and community support.

Specific Areas of Specialization

• Utilities: Operating regulated natural gas distribution and storage utilities in key U.S. jurisdictions, including the District of Columbia, Maryland, Virginia, and Michigan.

• Midstream: Providing comprehensive services such as natural gas gathering, processing, NGL extraction, transportation, storage, and marketing, with a focus on connecting North American producers to global markets.

• Power: Managing a portfolio of power generation assets, including both conventional and renewable energy sources, to meet diverse energy needs.

Key Technologies Utilized

• Advanced Processing Facilities: Utilizing state-of-the-art natural gas processing and NGL extraction technologies to enhance efficiency and product quality.

• Renewable Energy Integration: Incorporating renewable energy sources into the power generation mix to support sustainable energy solutions.

• Digital Infrastructure: Implementing digital tools and platforms for operational optimization, customer engagement, and regulatory compliance.

Primary Markets or Conditions Targeted

• Residential and Commercial Customers: Providing reliable natural gas distribution and storage services to homes and businesses.

• Industrial Clients: Supplying natural gas and NGLs for industrial applications, including petrochemical production and power generation.

• Global Export Markets: Connecting North American natural gas and NGL producers to international markets, particularly in Asia, through export terminals like the Ridley Island Propane Export Terminal (RIPET).

Financials and Funding

Funding History

AltaGas has a history of strategic acquisitions and investments to expand its operations. Notably, in 2017, the company acquired WGL Holdings for $6.4 billion, significantly enhancing its presence in the U.S. market.

Total Funds Raised

The company has raised substantial capital through equity offerings and debt financing to support its growth initiatives and acquisitions. Specific figures are detailed in AltaGas's annual financial reports.

Notable Investors

Ownership of AltaGas is widely held by Canadian and U.S. institutions, with no single controlling shareholder. Major pension funds and asset managers are common large holders.

Intended Utilization of Capital

Capital raised has been utilized for:

• Acquisitions: Expanding the company's footprint in key markets.

• Infrastructure Development: Investing in new facilities and upgrading existing assets.

• Debt Reduction: Strengthening the balance sheet to maintain financial flexibility.

Pipeline Development

Key Pipeline Candidates

• Pipestone II Deep-Cut Natural Gas Processing Facility: A facility in the Alberta Montney region, adding 100 million cubic feet per day of sour deep-cut natural gas capacity and 20,000 barrels per day of liquids handling capacity.

Stages of Clinical Trials or Product Development

As an energy infrastructure company, AltaGas does not engage in clinical trials or product development in the pharmaceutical sense. However, it continually develops and upgrades its energy infrastructure projects.

Target Conditions

The Pipestone II facility aims to enhance natural gas processing capacity and liquids handling in the Montney basin, supporting increased production and market access.

Relevant Timelines for Anticipated Milestones

The Pipestone II facility was brought into service in late 2025, contributing to the company's growth and operational capabilities.

Technological Platform and Innovation

Proprietary Technologies

• Natural Gas Processing: Advanced facilities for efficient gas processing and NGL extraction.

• Export Terminals: Proprietary export terminals like RIPET and Ferndale Terminal for global distribution of NGLs.

Significant Scientific Methods

• Integrated Value Chain Management: Utilizing comprehensive management strategies to oversee the entire energy value chain, from production to distribution.

• Digitalization: Implementing digital tools for operational optimization, customer engagement, and regulatory compliance.

AI-Driven Capabilities

While specific AI-driven capabilities are not detailed, AltaGas likely employs advanced data analytics and digital tools to enhance operational efficiency and decision-making processes.

Leadership Team

Key Executive Profiles

• Vern Yu: Chief Executive Officer (CEO)

• Professional Background: Vern Yu has extensive experience in the energy sector, having held various leadership positions prior to joining AltaGas.

• Key Contributions: Under his leadership, AltaGas has focused on strategic growth, operational excellence, and financial discipline.

• James Harbilas: Executive Vice President and Chief Financial Officer (EVP & CFO)

• Professional Background: James Harbilas has a strong background in financial management within the energy industry.

• Key Contributions: He oversees financial strategy, capital allocation, and investor relations, contributing to the company's financial stability and growth.

• John O'Brien: President, AltaGas Services U.S.

• Professional Background: John O'Brien has significant experience in utility operations and management.

• Key Contributions: He leads AltaGas's U.S. operations, focusing on expanding the company's presence and service offerings in the U.S. market.

Leadership Changes

As of October 1, 2025, AltaGas appointed Bill Bullock to its Board of Directors, bringing additional expertise and strategic insight to the company's governance.

Competitor Profile

Market Insights and Dynamics

The North American energy infrastructure market is characterized by a mix of large integrated companies and specialized operators. Key competitors to AltaGas include:

• Enbridge Inc.: A dominant player in North American energy infrastructure with extensive pipeline networks and utilities.

• TC Energy Corporation: Specializes in large-scale pipeline and storage assets, including natural gas infrastructure.

• Pembina Pipeline Corporation: Operates extensive pipeline and processing assets, focusing on midstream services.

Competitor Analysis

• Enbridge Inc.: Enbridge's scale provides cost advantages but makes it less nimble in regional gas markets. Both companies share similar regulated utility characteristics but Enbridge has greater international exposure.

• TC Energy Corporation: TC Energy competes directly in North American natural gas infrastructure with major pipeline assets. While AltaGas has stronger local distribution capabilities, TC Energy operates continent-scale transmission systems.