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.

Share:

Subscribe for unlimited access to all the latest energy sector news.

Over 150 multisector articles and analyses every week.

For less than €3/week*

*For an annual commitment

*Engagement annuel à seulement 99 € (au lieu de 149 €), offre valable jusqu'au 30/07/2025 minuit.

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.

Russian pipeline gas exports to China rose by 21.3% over seven months, contrasting with a 7.6% drop in oil shipments during the same period.
MCF Energy continues operations at the Kinsau-1A drilling site, targeting a promising Jurassic formation first tested by Mobil in 1983.
The group announces an interim dividend of 53 cps, production of 548 Mboe/d, a unit cost of $7.7/boe and major milestones on Scarborough, Trion, Beaumont and Louisiana LNG, while strengthening liquidity and financial discipline.
Norway’s combined oil and gas production exceeded official forecasts by 3.9% in July, according to preliminary data from the regulator.
Gunvor commits to 0.85 million tonnes per year of liquefied natural gas from AMIGO LNG, marking a strategic step forward for Asian and Latin American supply via the Guaymas terminal.
Black Hills Corp. and NorthWestern Energy merge to create a $15.4 billion regulated energy group, operating in eight states with 2.1 million customers and a doubled rate base.
The Pimienta and Eagle Ford formations are identified as pillars of Pemex’s 2025-2035 strategic plan, with potential of more than 250,000 barrels of liquids per day and 500 million cubic feet of gas by 2030.
Karpowership and Seatrium formalize a strategic partnership to convert floating LNG units, strengthening their joint offering in emerging mobile electricity markets.
Africa Energy strengthens its position in the gas-rich Block 11B/12B by restructuring its capital and reinforcing strategic governance, while showing a clear improvement in financial performance in Q2 2025.
Aramco finalizes a strategic agreement with an international consortium led by GIP, valuing its midstream gas assets in Jafurah at $11 billion through a lease and leaseback contract.
Moscow is preparing to develop gas turbines exceeding 300 MW while strengthening existing capacities and positioning itself against the most high-performing models worldwide.
Symbion Power announces a $700 M investment for a 140 MW plant on Lake Kivu, contingent on full enforcement of the cease-fire signed between the Democratic Republic of Congo and Rwanda.
After a prolonged technical shutdown, the Greek floating terminal resumes operations at 25% capacity, with near-saturated reserved capacity and an expanded role in exports to Southeast Europe.
The Australian gas giant extends due diligence period until August 22 for the Emirati consortium's $18.7 billion offer, while national energy security concerns persist.
AMIGO LNG has awarded COMSA Marine the engineering and construction contract for its marine facilities in Guaymas, as part of its 7.8 MTPA liquefied natural gas export terminal.
Petrus Resources reports a 3% increase in production in the second quarter of 2025, while reducing operating costs and maintaining its annual production and investment forecasts.
Jihadist attacks in Cabo Delgado displaced 59,000 people in July, threatening the restart of the $20 billion gas project planned for August 2025.
Cross-border gas flows decline from 7.3 to 6.9 billion cubic feet per day between May and July, revealing major structural vulnerabilities in Mexico's energy system.
Giant discoveries are transforming the Black Sea into an alternative to Russian gas, despite colossal technical challenges related to hydrogen sulfide and Ukrainian geopolitical tensions.
The Israeli group NewMed Energy has signed a natural gas export contract worth $35bn with Egypt, covering 130bn cubic metres to be delivered by 2040.
Consent Preferences