AltaGas announces a six percent dividend increase, 2026 guidance and updated strategic priorities

CALGARY, AB, Dec. 2, 2025 /CNW/ – 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.

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

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

FORWARD-LOOKING INFORMATION

This news release contains forward-looking information (forward-looking statements). Words such as “guidance”, “may”, “can”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “believe”, “aim”, “seek”, “propose”, “contemplate”, “estimate”, “focus”, “strive”, “forecast”, “expect”, “project”, “target”, “potential”, “objective”, “continue”, “outlook”, “vision”, “opportunity” and similar expressions suggesting future events or future performance, as they relate to the Company or any affiliate of the Company, are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, business objectives, expected growth, results of operations, performance, business projects and opportunities and financial results. Specifically, such forward-looking statements included in this document include, but are not limited to, statements with respect to the following: 2026 guidance including normalized EBITDA guidance of $1,925 million to $2,025 million and normalized EPS guidance of $2.20 to $2.45; the factors contributing to earnings and cash flow growth in Utilities and Midstream; the future dividend strategy including a six percent increase to AltaGas’ anticipated 2026 common share dividend; the Company’s commitment to delivering regular, sustainable and annual dividend growth; the Company’s CAGR guidance on dividends to 2030; the Company’s 2026 capital program of $1.6 billion, excluding ARO; allocation of capital among Utilities, Midstream and systems and technology improvement; specific projects and initiatives which are expected to comprise the 2026 capital program; driving factors behind the Utilities’ long-term growth outlook; the expectation that investment opportunities in the Utilities will improve the long-term safety and reliability of the network and the anticipated benefits therefrom; AltaGas’ commitment to maintaining a strong balance sheet and targeted BBB-mid credit rating; AltaGas’ Adjusted Net Debt to Normalized EBITDA leverage target and anticipated fluctuations; the Company’s increased investment capacity, including impacts on project advancement and the anticipated benefits thereof; increased capital allocation to the Utilities business including specific capital projects and the Company’s focus on operating efficiency, managing its cost structure and remaining active on regulatory engagement; the impacts that advancement of LNG projects are expected to have on the long-term growth outlook for Canadian natural gas and natural gas liquids; that the 2026 capital plan leverages these market conditions to advance key projects that will fuel Midstream growth over the coming decades; that construction of the REEF project will be completed in 2026; the Company’s commitment to consistently increase returns of capital to shareholders; the expectation that the Utilities segment will generate approximately 54 to 58 percent of 2026 normalized EBITDA; growth drivers and offsets for the Utilities segment; the status of current rate cases in D.C., Virginia and Maryland, including anticipated results, benefits and timing thereof; anticipated annual average rate base growth of eight percent over the next five years with the expectation that AltaGas will deliver rate base growth of ten percent in 2026; AltaGas’ advancement of data center opportunities and other large load customer growth on a de-risked basis, which has the potential to add modest incremental rate base growth; the expectation that the Midstream segment will generate approximately 42 to 46 percent of 2026 normalized EBITDA; growth drivers and offsets for the Midstream segment; the expectation that operational enhancements and strong demand at Ferndale and RIPET will support higher export volumes, providing additional long-term growth and enhanced asset optimization opportunities; REEF and REEF Optimization 1, including the status, expected timing and anticipated benefits thereof; the expectation that the Corporate segment will show stronger year-over-year financial performance in 2026, due to higher contribution from Blythe and lower Corporate G&A costs; AltaGas’ strategic priorities, including optimizing assets for maximum returns, actively managing risk, maintaining a strong balance sheet, advancing key growth projects and ensuring rigorous capital allocation; anticipated approval of the 2026 first quarter dividend on common shares and the effective date and timing for payment to shareholders of such dividend; the expectation that the Utilities business will drive strong long-term rate base growth and risk-adjusted returns; the expectation that the Company will fund 2026 capital requirements 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.

Such statements reflect AltaGas’ current expectations, estimates, and projections based on certain material factors and assumptions at the time the statement was made. Material assumptions include: effective tax rate; anticipated timing of asset sale and acquisition closings; the U.S/Canadian dollar exchange rate; inflation; interest rates; credit ratings; regulatory approvals and policies; expected commodity supply, demand and pricing; volumes and rates; propane price differentials; degree day variance from normal; pension discount rate; financing initiatives, the performance of the businesses underlying each sector; impacts of the hedging program; weather; frac spread; access to capital; future operating and capital costs; timing and receipt of regulatory approvals; seasonality; planned and unplanned plant outages; access to skilled labour and personnel, including timely resolution of the labour disruption at RIPET; timing of in-service dates of new projects and acquisition and divestiture activities; taxes; operational expenses; returns on investments; dividend levels; and transaction costs.

AltaGas’ forward-looking statements are subject to certain risks and uncertainties which could cause results or events to differ from current expectations, including, without limitation: health and safety risks; operating risks; natural gas supply risk; volume throughput; service interruptions; transportation of petroleum products; market risk; inflation; general economic conditions; cybersecurity, information, and control systems; climate-related risks; environmental regulation risks; regulatory risks; litigation; changes in law; Indigenous and treaty rights; dependence on certain partners; political uncertainty and civil unrest; risks related to conflict, including the conflicts in Eastern Europe and the Middle East; shortage of skilled labour or personnel, including the inability to resolve the RIPET labour disruption in a timely manner or successfully mitigate the impacts thereof; decommissioning, abandonment and reclamation costs; reputation risk; weather data; capital market and liquidity risks; interest rates; internal credit risk; foreign exchange risk; debt financing, refinancing, and debt service risk; counterparty and supplier risk; technical systems and processes incidents; growth strategy risk; construction and development; underinsured and uninsured losses; impact of competition in AltaGas’ businesses; counterparty credit risk; composition risk; collateral; rep agreements; market value of the Common Shares and other securities; variability of dividends; potential sales of additional shares; labor relations; key personnel; risk management costs and limitations; commitments associated with regulatory approvals for the acquisition of WGL; cost of providing retirement plan benefits; failure of service providers; risks related to pandemics, epidemics or disease outbreaks and the other factors discussed under the heading “Risk Factors” in the Corporation’s Annual Information Form (AIF) for the year ended December 31, 2024 and set out in AltaGas’ other continuous disclosure documents.

Many factors could cause AltaGas’ or any particular business segment’s actual results, performance or achievements to vary from those described in this press release, including, without limitation, those listed above and the assumptions upon which they are based proving incorrect. These factors should not be construed as exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this news release as intended, planned, anticipated, believed, sought, proposed, estimated, forecasted, expected, projected or targeted and such forward-looking statements included in this news release, should not be unduly relied upon. The impact of any one assumption, risk, uncertainty, or other factor on a particular forward-looking statement cannot be determined with certainty because they are interdependent and AltaGas’ future decisions and actions will depend on management’s assessment of all information at the relevant time. Such statements speak only as of the date of this news release. AltaGas does not intend, and does not assume any obligation, to update these forward-looking statements except as required by law. The forward-looking statements contained in this news release are expressly qualified by these cautionary statements.

Financial outlook information contained in this news release about prospective financial performance, financial position, or cash flows is based on assumptions about future events, including economic conditions and proposed courses of action, based on AltaGas management’s (Management) assessment of the relevant information currently available. Readers are cautioned that such financial outlook information contained in this news release should not be used for purposes other than for which it is disclosed herein.

Additional information relating to AltaGas, including its quarterly and annual Management’s Discussion and Analysis (MD&A) and Consolidated Financial Statements, AIF, and press releases are available through AltaGas’ website at www.altagas.ca or through SEDAR+ at www.sedarplus.ca.

Non-GAAP Measures

This news release contains references to certain financial measures that do not have a standardized meaning prescribed by US GAAP and may not be comparable to similar measures presented by other entities. The non-GAAP measures and their reconciliation to US GAAP financial measures are shown in AltaGas’ MD&A as at and for the period ended September 30, 2025. These non-GAAP measures provide additional information that management believes is meaningful regarding AltaGas’ operational performance, liquidity and capacity to fund dividends, capital expenditures, and other investing activities. Readers are cautioned that these non-GAAP measures should not be construed as alternatives to other measures of financial performance calculated in accordance with US GAAP. 

EBITDA is a measure of AltaGas’ operating profitability prior to how business activities are financed, assets are amortized, or earnings are taxed. EBITDA is calculated from the Consolidated Statements of Income (Loss) using income (loss) before income taxes adjusted for pre‑tax depreciation and amortization, and interest expense. Normalized EBITDA includes additional adjustments for transaction costs related to acquisitions and dispositions, unrealized losses (gains) on risk management contracts, gains on investments, gains on sale of assets, restructuring costs, dilution loss on equity investment, provisions (reversal of provisions) on assets, provisions on investments accounted for by the equity method, foreign exchange gains, and accretion expenses related to asset retirement obligations. AltaGas presents normalized EBITDA as a supplemental measure. Normalized EBITDA is used by Management to enhance the understanding of AltaGas’ earnings over periods. The metric is frequently used by analysts and investors in the evaluation of entities within the industry as it excludes items that can vary substantially between entities depending on the accounting policies chosen, the book value of assets, and the capital structure.

Normalized EPS is calculated as normalized net income divided by the average number of shares outstanding during the period. Normalized net income is calculated from the Consolidated Statements of Income (Loss) using net income (loss) applicable to common shares adjusted for transaction costs related to acquisitions and dispositions, unrealized losses (gains) on risk management contracts, non-controlling interest portion of non-GAAP adjustments, gains on investments, gains on sale of assets, provisions on assets, restructuring costs, dilution loss on equity investment, and provisions on investments accounted for by the equity method. Normalized net income per share is used by Management to enhance the comparability of AltaGas’ earnings, as these metrics reflect the underlying performance of AltaGas’ business activities.

Net debt, adjusted net debt and adjusted net debt to normalized EBITDA are used by the Corporation to monitor its capital structure and assess its capital structure relative to earnings. It is also used as a measure of the Corporation’s overall financial strength and is presented to provide this perspective to analysts and investors. Net debt is defined as short-term debt, plus current and long-term portions of long-term debt, current and long-term portions of finance lease liabilities, and subordinated hybrid notes, less cash and cash equivalents. Adjusted net debt is defined as net debt adjusted for current and long-term portions of finance lease liabilities, 50 percent of subordinated hybrid notes, and 50 percent of preferred shares. Adjusted net debt to normalized EBITDA is calculated by dividing adjusted net debt, as defined above, by normalized EBITDA for the preceding twelve-month period

SOURCE AltaGas Ltd.

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