AltaGas Ltd. (ALA) April 30, 2026 Annual General Meeting Transcript

Good afternoon. I'm Penty Karkainen, Chair of the Board at AltaGas. On behalf of the Board, it's my pleasure to welcome you to AltaGas' 2026 Annual Meeting of Shareholders. Thank you for joining us. Before we get started, I want to introduce today's speakers and provide an overview of the meeting format. We'll start with Lauren Kimmich, Director of HR Operations and Strategy, who will provide a land acknowledgement. Then I'll be joined by Jimmy Deuce, Vice President and Corporate Secretary, who will assist me in providing an overview of the conduct of the meeting. We'll then have the formal portion of the meeting. Once the formal meeting is complete, I will provide some concluding remarks and then turn the meeting over to Vern Yu, President and Chief Executive Officer, to provide a short corporate update. Following the update, we'll have Sean Brown, Executive Vice President and Chief Financial Officer, join us on the stage for a Q&A session to close the event. Other members of our board and management team are joining us virtually. And with that, I will turn it over to Lauren.

Thanks, Penti. We are speaking to you today from downtown Calgary. While we meet on a virtual platform, this land is deeply rooted in the histories and cultures of many diverse Indigenous peoples and communities. Today, we recognize that we are on the traditional territories of Treaty 7 signatories, including the Siksika Nation, the Bagani Nation, the Gana Nation, the Ithka-Stoni-Nakota Nation comprising the Chiniki, Bearspaw, and Good Stoney, and the people of Sutina Nation. Calgary is also home to the Otepemsawak Métis government of the Métis Nation within Alberta District 6. Altagast acknowledges Indigenous peoples as the traditional stewards of the lands on which we operate. We affirm our commitment to the journey of reconciliation through shared understanding, respectful engagement, and collaboration. We are grateful for the land and for the enduring contributions of Indigenous peoples, and we remain committed to building and maintaining relationships that support strong communities, shared prosperity, and long-term well-being. As a member of the Altagas community, I come with deep respect for this land that I am on today and for the people who have and do reside here. I pledge to respect and honour this land and its first inhabitants, acknowledging their enduring presence and contributions to our collective future. It is my honour to continue to learn and deepen my understanding of local Indigenous peoples and their cultures.

Thank you, Lauren. and thank you to our Indigenous partners and the local communities where we work and call home. Before we start the formal meeting, I will ask our Corporate Secretary to address a few housekeeping matters related to the formal proceedings. Jimmy, over to you.

Thank you, Penty. Good afternoon, everyone. As is the case with our in-person shareholder meetings, only shareholders of record at the close of business on the record date of March 5, 2026 and their duly appointed proxy holders may ask questions and vote on meeting matters. If you wish to ask a question, simply click on the messaging icon and type your question in the chat box at the bottom of the messaging screen, then click the arrow icon to submit. Your questions will be put in the queue and addressed at the appropriate moment during the meeting. Questions about meeting business will be answered during the formal portion of the meeting. Other questions not focused on the formal meeting will be brought forward during the Q&A session. We encourage you to submit your questions early and, if your question relates to an item of business, to specify the item to which it relates at the start of your question. When reading a question, I will first note the name of the registered shareholder or proxy holder submitting the question. To ensure all questions are addressed, questions of a similar nature may be answered only once. Any questions we are unable to address during the meeting will be referred to our Investor Relations team for follow-up. To assist us in doing so, please include your email address or phone number with your question. All items for shareholder approval today will be conducted by poll online through the Lumi platform and must be approved by a majority of the votes cast. All items being polled will appear on your screen at once. As in prior years, significant voting occurred by proxy before the meeting and the response was positive. Thank you to our shareholders who have voted in advance. We have received your votes and your votes have been included in the final count. You do not need to vote again today. Any vote you cast at this meeting will revoke your prior vote. If you plan to vote today, you may choose to vote on the resolutions immediately when they appear on your screen or wait to cast your vote until the conclusion of discussion. To vote, simply click on your choice—for, withhold, or against, as applicable. A confirmation message will appear to show that your vote has been received. To change your vote, simply change your selection. If you wish to cancel your vote, press Cancel. If you do not submit a vote, the vote will be shown as Abstained. The votes you submitted on each polling item when the poll closes will be recorded. Totals in favour or against or withheld for each resolution item will be tallied by the Scrutineer once the polls close, and the Chair will report on the outcome of all motions at the end of the formal meeting. For meeting efficiency, the Chair will make the motions and I will second. We are both shareholders of Altagas. As noted in the information circular, the Board recommends voting in favour of each of the resolutions being tabled. With the housekeeping matters taken care of, I will turn the meeting back to the Chair.

Thank you, Jimmy. In accordance with our bylaws, I will chair today's meeting and Jimmy will serve as Secretary. I also appoint Christopher Parsons, who joins us today as a representative of our Registrar and Transfer Agent, Computer Share Trust Company of Canada, to act as scrutineer for the meeting. I now call the meeting to order I have been advised by computer share that the notice of meeting and meeting materials were duly delivered to shareholders and that a quorum is present accordingly I declare that the meeting has been duly called and is properly constituted for the transaction of business computer shares statutory declaration of mailing and the scrutineers report on attendance will be filed by the secretary with the minutes of this meeting I now declare the polls open on all resolutions each person entitled to vote shall see voting choices displayed on their screen. As a reminder, you may vote on the resolutions immediately or wait to cast your vote following discussions on the matter. We will now commence with the business of the meeting. The agenda is as set forth in the notice of meeting being the presentation of financial statements, the appointment of the auditor, the election of directors, the advisory vote on executive compensation. Let's begin with the first item of business. The consolidated financial statements of AltaGas for the year ended December 31, 2025. Management's discussion and analysis and the auditor's report thereon have been provided to shareholders. They are available on AltaGas' profile on Cedar Plus and on AltaGas' website in accordance with notice and access provisions. No action is required by shareholders on this item. The next item of business is to vote on the appointment of Ernst & Young LLP as the Auditor of AltaGas to hold office until the next annual meeting. I move that Ernst & Young LLP be appointed as the Auditor of AltaGas until the next annual meeting of shareholders or until a successor is appointed, and that their remuneration be fixed by the directors of AltaGas.

Mr. Chair, I second the motion.

Thank you. You have heard the motion and is now open for discussion. Jimmy, have we received any questions on this motion from shareholders?

Mr. Chair, we have received no questions on this motion.

Thank you, Jimmy. We will proceed with the next item on the agenda. The next item of business is the election of directors. The Board of Directors of AltaGas has fixed the number of directors to be elected at the meeting at 11. As noted in the information circular, our bylaws contain advanced notice provisions, which provide a procedure to be followed for the nomination of directors at meetings of shareholders. directors. No other nominations were received. Therefore, the only individuals entitled to be nominated as directors at this meeting are the individuals named as nominees in AltaGas' Information Circular. In accordance with our majority voting policy, you are being asked to vote for each director separately. Jimmy, can you please read the names of the 11 directors, nominees, set out in AltaGas' Information Circular who are standing for Mr. Chair, the Director nominees are as follows.

William Bullock, Jr., Victoria Calvert, David Cornhill, John L. Duplantier, Derek Evans, Cynthia Johnston, Angela Lekatsis, Pente Carcanin, Philip Knoll, Nancy Tower, and Vern Yu. Each of the nominees has consented to act as the Director of Altegas until the next annual meeting or until their successor is duly elected or appointed.

Thank you, Jimmy. The nominees bring a diverse mix of experience, skills, and perspectives to the Board. The skills and attributes of the nominees are set out in the information circular. All the nominees currently sit on our Board, though William Bullock, Jr., will be standing for election for the first time today. Bill Bullock was appointed to the Board in October. Bill is an industry veteran and distinguished leader in the energy sector, with nearly four decades of experience working across complex global operations throughout different regulatory jurisdictions and across the upstream, midstream, and downstream energy markets mr bullock brings a wealth of knowledge and experience to our board we believe his strategic mindset and focus on value creation will benefit our organization and shareholders over the long term i and the balance of the board and executive look forward to working with bill welcome bill with that i now move that the individuals nominated as directors as listed by the secretary be elected as directors of alta gas to hold office until the next annual meeting of shareholders, or until they cease to be directed by operation of law, or until their resignation becomes effective.

Mr. Chair, I second the motion.

Thank you. You have heard the motion and is now open for discussion. Jimmy, have we received any questions on this motion from shareholders?

Mr. Chair, we have received no questions on this motion.

Thank you, Jimmy. We will proceed with the next item on the agenda. The final item of business is the consideration of Altagas' approach to executive compensation. This is an advisory vote so the results will not be binding, but the Board will take the results into consideration in its ongoing review of executive compensation. I move to accept, on an advisory basis and not to diminish the roles and responsibilities of the Board of Directors, Altagas' approach to executive compensation, as disclosed in Alta Gases Management Information Circular, dated March 5, 2026.

Mr. Chair, I second the motion.

You have heard the motion and it is now open for discussion. Jimmy, have we received any questions on this motion from shareholders?

Mr. Chair, we have received no questions on this motion.

Thank you, Jimmy. That was the final agenda item. For those of you who have not yet cast your votes, please do so now, and I will pause briefly before closing the polls. Thank you. The polls are now closed. We will take another moment to let the scrutineer finish tabulating.

Mr. Chair, we have now received the preliminary results from the scrutineer and I can advise that each of the motions has passed by a majority of the votes cast.

Thank you Jimmy and thank you to the scrutineer. On that basis I declare that all motions have been carried. Final voting results will be published on CDER plus tomorrow morning. As there is no further business i now declare the meeting terminated thank you to all our shareholders for participating in the annual meeting either by voting in advance or attending virtually and voting live today and thank you for your ongoing support of alta gas prior to turning the meeting over to ver and you i'd like to draw your attention to our advisory statement and share a few concluding remarks please take a moment to review the posted advisory statement regarding forward looking information and non-gap measures within our corporate update we may make forward looking statements which involve certain assumptions and we have inherent risks and uncertainties. Actual results could differ from these statements. We may also make reference to certain financial measures that do not have a standardized meaning prescribed by U.S. GAAP. As I reflect on the past year, I am proud of the progress AltaGas has made in advancing our strategic priorities, strengthening our asset base, and continuing to deliver affordable and reliable energy to the communities we serve. On behalf of the Board, I would like to thank the AltaGas leadership team and employees for their continued focus, disciplined execution and commitment to safety and operational excellence. I would also like to acknowledge rights holders, Indigenous and local communities and our stakeholders and partners for their ongoing engagement and trust. As I conclude my final annual shareholders meeting as Board Chair, I'd like to thank my fellow directors for their stewardship, sound counsel and support over the past seven years, and their continued commitment to AltaGas. Serving as a board chair has been a privilege, and I'm grateful for the opportunity to have worked alongside such a dedicated group. I am also looking forward to continuing to serve as a board member, as I'm extremely excited in the company's future, and very pleased to support our incoming board chair, Derek Evans. Derek is a highly respected energy industry leader, and the board looks forward to his leadership as AltaGas continues to execute its long-term strategy. With that, I will turn it over to you, Vern.

Good afternoon. Thank you for joining us today. On behalf of the board and the management team, thank you for your continued support and confidence in EltaGas. I'd also like to recognize our employees across North America. We deliver energy to improve lives and create opportunity. We focus on safety, operational excellence, and disciplined execution, and this is the foundation of our strong 2025 results. To recognize that commitment and the values that unite us, we'd like to share a brief video that highlights what makes AltaGas such a remarkable organization.

At AltaGas, our vision is clear. We deliver safe, reliable, and competitively priced energy, connecting our customers to markets across North America and globally through our midstream and utilities businesses. With Pipestone 2 entering service in 2025 and Dimmesdale reaching a positive final investment decision, we advanced critical midstream energy infrastructure that stores, processes, and transports liquid petroleum gas for over 70 Canadian LPG producers and aggregators, providing the energy the world needs safely, reliably, and affordably. Through our West Coast Open Access Export Terminals, we supplied Canadian LPG to key markets in Asia. Our unique business model combines our midstream advantages with the steady returns from our utilities. Through rate-regulated natural gas distribution and storage infrastructure, our utilities business serves 1.6 million residential, commercial and industrial customers, powering their homes and businesses. With our strongest safety performance on record, we continue to execute on our pipeline modernization program. We also take great pride in our partnerships. We're working with our Indigenous partners, local communities, and other key stakeholders to create shared, long-term value that is anchored in local priorities and built on trust. Our story is strong. We're focused on delivering exceptional results for each other, our communities, customers, and shareholders. today and into the future.

2025 was a strong year at Althagas. We continued to drive value for our shareholders and demonstrated strong execution of our strategic priorities, which strengthened our foundation for long-term growth. Safety has always been our most important core value. And thanks to the great work of our employees and contractors, we significantly improved our safety performance in 2025. In fact, we reduced total recordable injury frequency across the enterprise, and I'm proud to share that SEMCO achieved top quartile performance in its peer group. Moving on to our financial results, last year we delivered normalized EBITDA of approximately $1.86 billion, which was in the top end of our guidance range and supports our 6% 5-year compound annual growth rate. Our normalized earnings per share came in at $2.23, also landing in the upper half of our guidance range. We enhanced our earnings quality by prioritizing stable, long-term cash flows. We did this by de-risking our global export platform through long-term tolling agreements. We also advanced utilities, asset monetization, regulatory approvals, all of which strengthen our risk profile. I'm happy to share that we advance key growth projects, including the commissioning of Pipestone 2. We also made significant construction progress at Reef and continue to make significant investments in the modernization programs at our utilities. We reached positive FIDs on Reef Optimization 1, the Ripet Methanol Removal Project, Dimmesdale Expansions Phases 1 and 2, and the Keweenaw Connector Pipeline in Michigan. In 2025, we optimized our asset base by delivering record annual global export volumes of over 126,000 barrels a day of propane and butane to Asia. And we saw record throughput volumes at North Pine and Pipestone. We ended 2025 on strong financial footing with adjusted net debt to normalized EBITDA of 4.7 times, achieving our leverage target, and we received positive revisions to our credit rating outlooks. These results translated into a 29% total shareholder return in 2025 and a total shareholder return CAGR of 22% over the last five years. This significantly outperforms our peers and reflects strong investor confidence in Altagas. Turning to Reef, our new LPG export facility in Prince Rupert, I'm happy to share that Reef Phase 1 is approximately 75% complete, with all major modules on site. Placement of the remaining two jetty spans is about to be completed, and construction of the final phase of the railroad utility corridor is about to start construction. The project currently sits with roughly 90% of its total capital cost incurred or committed, and 80% of these costs are under fixed-priced EPC contracts. I'd like to pause here to recognize that over 1.4 million hours have been worked on Reef without serious injury. Kudos to the team in achieving these great results. Reef Optimization 1 is in its early days of construction and will add another 30,000 barrels a day of propane export capacity, which is also under long-term tolling contracts. We continue to advance in our midstream business. Currently our sanctioned projects include our Dimstail expansion, which will add 36 BCF of gas storage. This project is backed by long-term taker pay contracts. At Ripet, our methanol removal project improves propane specs and helps us expand into new markets like China. At Reef, we're also assessing further LPG exports, including the potential for exporting ethane. We are advancing engineering and cost estimates for REAP optimization too, which is anticipated to add another 60,000 barrels a day of LPG export capacity. And I'm happy to share that we now have received the permits we require to start construction. Looking ahead we also expect to see our existing facilities in the BC and Alberta Montany to undergo expansion. Our growth opportunities in our utilities business are also strong. Construction of the Keweenaw connector begins this spring. The construction materials are arriving on site and we've fully secured the right of way. Our regulators have approved 1.5 billion dollars U.S. of modernization spending across our four jurisdictions which enhances the safety and reliability of our systems. In terms of data centers, we've now completed multiple feed studies and started gas connection construction for phase one of a 24-megawatt Maryland facility, which project completion is anticipated by year-end 2026. We also recently announced a second data center project in Virginia. Modernization programs and customer additions will support rate-based growth of around 8% per year over the next five years. Data center capital has the potential to add another 1% per year to that healthy 8% rate-based CAGR. Looking at our 2026 strategic priorities, we're focused on delivering long-term value for our shareholders. With today's geopolitical tensions, economic uncertainty, and market volatility, energy security and access to global markets has never been more important. Altagas is well positioned with a diversified portfolio of regulated utilities and midstream assets that will continue to provide stability and flexibility for our customers and stakeholders in the long term. We believe that delivering on our strategic priorities in 2026 will only enhance our long-term competitive position. Our value proposition is clear. We have a low-risk, high-quality infrastructure platform with stable, growing cash flows. Global demand for reliable and affordable energy supports our growth outlook, and we anticipate our organic growth backlog to drive 5% to 7% per year of growth through 2030. Finally, we're blessed to have ample investment capacity to fund all of this organic growth, noting that we will be disciplined allocators of capital and we will continue to live within our balance sheet guardrails. Thank you for your ongoing trust and support. We're looking forward to 2026 and beyond.

Thank you, Byron.

We are pleased to have Sean Brown, AltaGas' CFO, join us on stage and open the floor for questions.

Jimmy, are there any questions from shareholders?

We have received no questions.

Thank you, Jimmy. With that, we've reached the end of today's question-and-answer session. Should you have any additional questions throughout the year, we encourage you to contact our investor relations team. Or for more governance-related matters, the board in accordance with Altagas' shareholder engagement policy. Before I conclude, I'd like to thank our team across North America for their continued focus on executing our strategic priorities safely, responsibly and with discipline. Your work is essential to our success. I'm very grateful for your commitment to the communities we serve, including rights holders, Indigenous communities and our broader group of stakeholders. Thank you for your collaboration and trust as we work together to help meet energy needs today and into the future. To our shareholders, Thank you again for joining us today and your continued confidence and investment in Alta Gas. We value your support and remain focused on delivering long-term value. Finally, I'd like to thank Penty for his outstanding leadership and stewardship as Board Chair. I'm glad to have your continued support on the Board and look forward to working closely with Derek Evans in his new role as Board Chair. Thank you for your participation today. This concludes AltaGas' 2026 Annual Meeting of Shareholders.