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AltaGas posts 23% growth in midstream EBITDA in second quarter 2025

Canadian group AltaGas reports a strong increase in financial results for the second quarter of 2025, driven by growth in its midstream activities, higher demand in Asia and the modernisation of its distribution networks.

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The second quarter of 2025 marks a significant milestone for AltaGas, which reports sharply improved results, with normalised EBITDA reaching CAD342mn ($252mn), compared to CAD295mn ($217mn) the previous year. This performance is mainly attributed to the midstream segment, where normalised EBITDA jumped by 23%, rising from CAD175mn ($129mn) to CAD215mn ($158mn). The activity has been buoyed by higher global exports of liquefied petroleum gas (LPG), increased volumes processed at Montney sites and improved revenues from the Mountain Valley Pipeline.

Increase in export volumes to Asia and infrastructure modernisation

During the quarter, AltaGas exported an average of 127,814 barrels per day of LPG to Asia, an increase of 4% despite the temporary shutdown of the Ridley Island terminal for maintenance. Twelve Very Large Gas Carrier vessels departed from this site, and eight others from the Ferndale terminal. This momentum is supported by long-term agreements with partners such as Keyera Corp, which will double its contracted capacity to 25,000 barrels per day from 2028, and Pembina Pipeline Corporation, which has committed to an additional 20,000 barrels per day from 2027.

Continued investment and new contracts in strategic segments

The company is continuing its investments in the modernisation of its distribution networks, particularly in the United States. The utilities segment recorded normalised EBITDA of CAD134mn ($99mn), up 10% year-on-year, driven by targeted investments and favourable weather conditions in Michigan. Among key projects, AltaGas is progressing on the construction of the Keweenaw Connector pipeline, which is scheduled to be commissioned in 2027 with a budget of US$120mn.

The company is also multiplying engineering and design studies to equip its infrastructure to meet growing demand from data centres in several US states, while securing its revenues through take-or-pay contracts and regulatory agreements.

Financial leverage management and unchanged 2025 outlook

At the end of the quarter, the adjusted net debt to normalised EBITDA ratio stands at 4.6x, below AltaGas’ target. Operating cash flow reached CAD365mn ($269mn), with adjusted net profit at CAD81mn ($60mn), or 0.27 Canadian dollar per share. AltaGas maintains its guidance for full-year normalised EBITDA between CAD1,775mn ($1.31bn) and CAD1,875mn ($1.39bn), and earnings per share between 2.10 and 2.30 Canadian dollars.

The company reports ongoing works at the Ridley Island Energy Export Facility project and progress at the Pipestone II site, which remains scheduled for commissioning at the end of 2025. These construction projects are mostly based on fixed-price EPC contracts, securing the majority of costs.

AltaGas also notes that customer demand for access to its export terminals remains robust, enabling the company to consider short-term optimisation projects and the gradual extension of its capacities.

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