AltaGas Strong in 2017
Canadian midstreamer AltaGas on March 1 reported strong fourth quarter and full year results for 2017, with Ebitda up 14% and funds from operations (FFO) up 11% year-over-year.
Normalized Ebitda for the year increased to $797mn from $701mn, while normalised FFO rose to $615mn from $554mn. Net income (a GAAP measure) fell to $30mn from $155mn, while normalised net income (a non-GAAP measure) increased to $204mn from $153mn.
“Our base business performed exceptionally well and delivered consistently strong results to end the year with record normalized Ebitda and FFO,” AltaGas CEO David Harris said. “We also significantly advanced our northeast BC and energy export strategies with the completion of the Townsend 2A and North Pine Facilities, as well as considerably (advanced) the construction of RIPET, Canada's first ever propane export terminal off of the west coast.”
Townsend 2A is a 99mn ft3/day shallow-cut processing facility in northeastern BC, while RIPET – the Ridley Island Propane Export Terminal – is currently under construction, targeting an in-service date in mid-2019.
In the US, AltaGas is moving forward with its 2017-announced acquisition of WGL, a holding company whose main utility asset is regulated Washington Gas Light Company. WGL also holds infrastructure assets – including the Mountain Valley Pipeline in Virginia and West Virginia – serving the Appalachian Basin and a gas supply agreement associated with Dominion Energy’s Cove Point LNG terminal in Maryland, which is expected to begin exports later this year. The acquisition is expected to close in mid-2018.