Mr. Jon Morrison reports

ALTAGAS ANNOUNCES CLOSING OF $460 MILLION EQUITY FINANCING WITH POSITIVE CREDIT RATING UPDATES

AltaGas Ltd. has completed its previously announced bought deal offering of 11,615,000 common shares of AltaGas, including 1,515,000 common shares issued through the exercise of the overallotment option by the underwriters. The offering was completed at $39.65 per common share for total gross proceeds of approximately $460-million.

The public offering was announced on Nov. 3, 2025, when AltaGas entered an agreement with a syndicate of underwriters led by CIBC Capital Markets, TD Securities Inc., RBC Capital Markets and Scotiabank. As highlighted within AltaGas's Nov. 3, 2025, press release, the public offering was done in conjunction with AltaGas electing to retain its ownership in the Mountain Valley pipeline (MVP) as a long-term investment.

The net proceeds of the public offering will be used by AltaGas to reduce leverage and to finance future growth. These actions are expected to deliver the same net near-term deleveraging as would have been achieved through a full monetization of MVP with stronger long-term leverage reduction through MVP ownership once the expansion projects come on line, ultimately enhancing AltaGas's credit metrics and investment capacity to finance future growth projects.

AltaGas is excited to retain MVP as long-term investment

As previously highlighted, AltaGas is excited to remain an owner of MVP and believes retaining the assets will deliver superior value to its shareholders. Following a comprehensive sales process, AltaGas has elected to retain its ownership in MVP, including the MVP Mainline, MVP Boost, and MVP Southgate projects. The company was pleased by robust demand from a broad set of buyers throughout the sale process. However, recent developments released over the past month have altered AltaGas's view of proceeding with a monetization. As such, retaining MVP with its attractive near-term expansion projects will enhance shareholder value.

Key highlights on the strategic rationale to keep MVP include: (1) MVP Boost exceeding AltaGas's expectations and being set to deliver strong project-level returns; (2) progress on MVP Southgate continuing constructively; and (3) the MVP Mainline showing strong outperformance. As such, retaining MVP with its attractive near-term expansion projects will enhance shareholder value.

AltaGas now expects project-level MVP EBITDA (earnings before interest, taxes, depreciation and amortization) to increase significantly by the second half of 2028, following completion of the two expansion projects. As such, even assuming a monetization at the highest valuation multiple achieved for a minority pipeline monetization in recent years, on a 2026 multiple, a sale of AltaGas's stake would be a low multiple on projected run-rate EBITDA following the now-near-term expansions, inclusive of the company's net future investments -- further reinforcing the superior value of continued ownership. By raising equity to achieve the same near-term leverage reduction as a monetization, AltaGas anticipates two-cent higher normalized EPS (earnings per share) in 2026, three-cent higher normalized EPS in 2027 and five-cent higher normalized EPS in 2028 and onward, once expansions are on line, than what would have been achieved through a divestiture. Retaining MVP is also expected to drive enhanced deleveraging as these projects come into service and the cash flow rises.

Credit rating actions

Following the announcement of AltaGas's intention to retain ownership in MVP, the public offering and the company's third quarter of 2025 results, S&P Global Ratings and Fitch Ratings Inc. released revisions to their respective credit outlooks, including:

• S&P: revising AltaGas's ratings outlook to "positive" from "negative" while affirming its ratings of BBB-minus, supported by an improvement in S&P's funds-flow-from-operations-to-debt outlook over the next 24 months as growth projects come into service while minimizing business risk;
• Fitch: revising AltaGas's ratings outlook to "stable" from "negative" while affirming its ratings of BBB, supported by AltaGas's expectation of improving FFO leverage, reinforced by the recent equity issuance, stable utility cash flows, strong demand for LPG (liquefied petroleum gas) exports and AltaGas's retained 10-per-cent ownership in MVP.

Canadian securities disclosures

For further information regarding the common shares, including related risk factors, refer to AltaGas's prospectus supplement dated Nov. 5, 2025, to the base shelf prospectus of AltaGas dated March 12, 2025. The base shelf prospectus and the prospectus supplement are accessible on SEDAR+.

About AltaGas Ltd.

AltaGas is a leading North American infrastructure company that connects customers and markets to affordable and reliable sources of energy. The company operates a diversified, lower-risk, high-growth energy infrastructure business that is focused on delivering stable and growing value for its stakeholders.

We seek Safe Harbor.