AltaGas Ltd.

Ladies and gentlemen, thank you for standing by and welcome to the AltaGas second quarter 2026 financial results conference call. My name is Jon and I'll be your operator for today's call. All lines have been placed on mute to prevent any background noise. If you have any difficulties hearing the conference, please press start then zero for the operator assistance at any time. After the speaker's remarks, there will be a question and answer session. As a reminder, this conference call is being broadcast live on the internet and recorded. I would now like to turn the conference call over to Aaron Swanson, Vice President, Investor Relations. Please go ahead, Mr. Swanson.

Good morning and thank you for joining AltaGas' second quarter 2026 results conference call. This call is being webcast and we encourage following along with the supporting slides that can be found on our website. Speaking this morning will be Vern Yu, President and Chief Executive Officer, and Sean Brown, Executive Vice President and Chief Financial Officer. We are also joined by Randy Toone, President of Midstream, Corine Bushfield, President of Utilities, and Jon Morrison, Senior Vice President of Corporate Development and Investor Relations. We will refer to forward-looking information on today's call. This information is subject to certain risks and uncertainties as outlined in the forward-looking information disclosure on slide two in the presentation. Prepared remarks will be followed by a question and answer session. I'll now turn the call over to Vern.

Thanks, Erin. Good morning. I'm going to start by reviewing highlights from the quarter, including our strong financial and operating performance. Then I'll walk through progress on our growth projects in midstream and utilities, I'll finish by reviewing the state of the global LPG market and how that is creating growth opportunities for AltaGas. After that, Sean will cover our segmented financial results and provide more details on our increased 2026 guidance. I'd like to start by introducing Corine, who is now leading our utilities business. Corine has been with AltaGas for more than a decade and is a valued member of our executive team. We're excited to have Corine step into this role, given her proven track record of operational excellence and strong financial leadership. Let's begin on slide four. We delivered record financial results in Q2, reflecting strong performance from both midstream and utilities. I should note that midstream's financial results in Q2 benefited from historically high global export spreads and physical sale premiums. We generated normalized EBITDA of 391 million and normalized EPS of 31 cents, increases of 14 and 15% over Q2 2025. Our strong first half gives us the confidence to raise our 2026 guidance. We've increased normalized EBITDA guidance by 4% to a new range of 2.0 to 2.1 billion. and normalized EPS by 6% to a range of 235 to 260 per share. Our balance sheet remains strong throughout the quarter, with leverage closing at 4.4 times, below the low end of our 4.5 to 5 times target range. Operationally, we exported a record 144,000 barrels per day of LPG. a 13% increase over Q2 2025. Midstream throughput continued to grow with Montane volumes up 8% year over year and we added two high quality partnerships to our platform. The Ground Birch Rail Terminal with Tourmaline and the Ace Rail Terminal in Fort Saskatchewan with Kiera and CN Rail. In utilities, we continue to advance our system modernization program. Year-to-date, we have deployed over $200 million of capital and replaced 21 miles of pipe. Let's move to our growth projects, starting with reef on slide five. Construction on reef continues to advance, and the project is now 85% complete. Onshore execution has been strong and ahead of plan. On the uplands, all major equipment is installed, and commissioning should begin in late August. The railroad corridor is entering its final construction phase and will be completed before year-end. While onshore execution has been ahead of plan, in-water construction has proven more challenging due to maritime conditions and weather delays. Since we started in-water construction at Reef in the fall of 2024, we have lost over 450 rig days due to extreme weather Extreme Ocean Swells, and Marine Mammal Activity. These lost rig days significantly exceeded any normal contingency plans. As a result, onshore efficiencies are no longer expected to fully offset higher in-water construction costs. We now expect REAP to come online before the end of Q1 2027, and have increased Reef's capital cost estimate by 12% to approximately $1.5 billion. With the jetty and loading platform now 80% complete, most in-water construction is set to be completed over the next six weeks. We view the revised schedule and cost as highly achievable, and we'll get into those details shortly. Reef Optimization I remains on schedule for an in-service date in the second half of 2027, and it will add 30,000 barrels per day of incremental propane export capacity. We're also advancing Reef Optimization II, with key regulatory permits secured and engineering progressing towards final Class III cost estimates before the end of the year. On slide six, we outline reef's remaining major work streams and highlight what has been completed to date. The in-water works have been the most challenging, but we're almost done. All 48 of the piles for the jetty piers have been drilled and completed. Only five piles remain to be drilled for the loading platform, and that should be completed by the end of August. All the jetty trestles that span 1.2 kilometers have been installed. The transition platform has been delivered and set. Fabrication of the main loading platform is complete and is about ready to be loaded for an August delivery. The mooring system fabrication is nearing completion and is set to be delivered in November and installed in December. With the eating water Thank you for joining us today. and all equipment has been set. Mechanical completion is now 90% and we expect to commence uplands commissioning by the end of August. The rail loop and utility corridor are now 70% finished and are on track to be completed by mid-November. Slide 8 shows the progress on our other growth projects. At Ripit, our methanol removal project remains on track for completion by year end. Our Dimmesdale storage expansions are now more than 50% complete, with pipeline tie-ins completed. We're on track to start the drilling of the injection wells in the third quarter. Phase 1 will add 6 BCF of storage by year-end 2026, and Phase 2 will add another 30 BCF of storage by mid-2027. At the Mountain Valley pipeline, Southgate construction is underway. Pipeline welding began in early July, and the project is on track to be in service by year-end 2026, ahead of schedule. MVP Boost continues to advance through its regulatory steps and is expected to be in service by the middle of 2028. During their quarter, we reached a positive FID on a debottlenecking project at Townsend, which will add 6,000 barrels per day of fractionation capacity. Within utilities at more than 5,000 miles of pre-1970s pipe that needs to be replaced to enhance safety and reliability. To support that, we have 1.5 billion U.S. of modernization programs approved by regulators across our four jurisdictions. Modernization capital, system expansion, and customer ads are expected to drive 10% rate-based growth in 2026. This rate base will improve the safety and reliability of our system. Every mile we replace reduces the risk of leaks and safety incidents, service disruptions, and operating costs for our customers. Despite these large increases in rate base, we've been able to keep customer bill increases around 4% per year based on operating cost savings from these modernization investments and other on-end cost management initiatives. Demand for natural gas across the U.S. continues to rise, driven by heightened commercial and industrial activity, data center and large load development, and ongoing population growth. The Mid-Atlantic sits in the center of this expansion. For example, PJM data center load is forecast to increase by fourfold over the next eight years. Turning to slide none, I want to touch on the disruption in the Middle East. and what this means for the global LPG market and our global export business. LPG exports through the Strait of Hormuz are more than 70% below pre-conflict levels. Since their disruption began, more than 160 million barrels of LPGs have been displaced from global trade. That has tightened market balances and reinforced the value of stable Canadian LPG supply. We're seeing very strong demand across our traditional markets of Japan and South Korea, and growing demand from China. We're also seeing incremental demand from other Asian markets that have historically relied on Middle Eastern supply. Given the favorable market dynamics, we continue to advance reef altitude and see the need for an additional reef phase every two to three years to meet the market demand in Western Canada. We're also seeing significant interest from China for Canadian ethane exports as a way to diversify its long-term ethane needs. Today, roughly 500,000 barrels a day of ethane is left in the natural gas stream in Western Canada while age and demand keeps growing. We're actively working through the complexity of connecting these markets. As we see this as another opportunity to provide Canadian energy to the best global markets. Finally, let me close on the progress we've made on our strategic priorities in 2026. AltaGas' future is very bright. We've executed consistently, growing, de-risking, and strengthening the enterprise through the first half of the year. In the second quarter, we delivered record volumes from our global export platform, and higher throughput across our midstream value chain. We continue to actively manage risk through hedging, commercial contracting and diversifying our downstream markets. We're advancing multiple rate cases in our utilities to earn appropriate returns on our capital investments and minimize rate lag. Our balance sheet is strong with leverage below our target rate. which has allowed us to advance multiple projects that will drive long-term growth. Taken together, we're extending our competitive advantages, improving the quality and visibility of our cash flows, and creating a longer runway for disciplined expansion across health against. I'll now turn it over to Sean to walk through our segmented results and increase 2026 guidance. Thanks, Vern.