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November 2003 Investor Meetings New York, NY

November 2003 Investor Meetings New York, NY. Cautionary Statement Regarding Forward-Looking Statements. Annual Total Return 8-10+%. Organic Development/ Acquisition 2-3%. Base Business Growth 2-3%. Dividend Yield 4-5%. The ATG Value Proposition. 2003 Goals.

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November 2003 Investor Meetings New York, NY

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  1. November 2003Investor MeetingsNew York, NY

  2. Cautionary Statement Regarding Forward-Looking Statements

  3. Annual Total Return 8-10+% Organic Development/ Acquisition 2-3% Base Business Growth 2-3% Dividend Yield 4-5% The ATG Value Proposition

  4. 2003 Goals • Strengthen the company financially • Grow around existing assets • Execute flawlessly in every business segment • Demonstrate a compelling proposition for all our stakeholders

  5. 2003 Scorecard

  6. Norfolk Chattanooga Atlanta High-Quality, Predictable Utility Operations With Regulatory Stability Georgia – 1.6 million customers Service Areas • Performance-based ratemaking (PBR) • Maintains straight-fixed variable rates (SFV) • Regulatory certainty through 2005 • Authorized return levels very favorable Virginia – 250,000 customers • Weather normalization (2-year program) • Price stability for customers • Favorable regulatory climate Tennessee – 60,000 customers • WNA adjustment offsets weather impact • Level revenue stream throughout year

  7. Regulatory Compact Provides Proper Incentives 16% 14% 12% 10% 8% 6% 4% AGL Resources Utility Operations Return on Equity 12 Months Ended June 30, 2003 12.00 10.96 11.00 11.06 Percent of Return 10.75 10.90 9.51 VNG AGLC CGC Authorized Actual Actual (2) Authorized Authorized (1) Actual (1) The authorized ROE is 11.00%. The top of the earnings band is 12.00%. The company also can include 1/2 of VNG synergies in calculating the return prior to sharing – bringing authorized ROE to approximately 12.6%.. (2) Based on actual weather.

  8. Unique Features to Note ATLANTA GAS LIGHT COMPANY Pipeline Replacement Program Rider $100 $95 $94 $92 $92 $91 $90 $80 $73 $70 $62 $60 $51 $50 $50 $49 in Millions $48 $50 $43 $39 $40 $28 $30 $21 $20 $20 $13 $6 $10 $4 $2 $0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Total Capital Cash Recovery Notes: Data based on collection year. *Investment of $480 million to be recovered through base rates at end of program • Environmental recovery rider turns cash-flow positive in 2005 • Pipeline replacement program provides return on, and of, capital

  9. Sequent Provides Incremental Value From Existing Asset Base IL MD Company Owned LNG Plants Propane Storage Cove Point VA Norfolk TN Chattanooga • Three business lines: producer services; transportation asset management; storage arbitrage • Asset management sharing arrangements approved in all states • Emerging commerce in peaking services and other origination business GA Atlanta TX Elba Island LA Henry Hub Henry Hub Houston Lake Charles Other LNG Terminals Accessible Storage

  10. SouthStar Is Now A Stable, Annuity-Quality Business • ATG owns 70% but earnings distributed disproportionately • 38% market share • Stable, maturing business • 60% of earnings from fixed charges • Focus on maintaining market share; improving customer service; and continuing to implement rigorous controls around credit quality SouthStar’s Net Income CY 2002 $41 million CY 2001 $17 million

  11. Project DevelopmentActivities

  12. Pivotal Energy Development • Support goal to grow around existing assets • Develop or acquire projects that supplement current assets to: • Reduce the cost of service to ratepayers • Create multi-level return opportunities • Value through synergies between existing assets and new projects

  13. Declining Regional Load Factor 65% Load Factor 74% Load Factor

  14. Declining Load Factor in Georgia

  15. Regional Opportunities JOINT USE PIPELINE OPPORTUNITY APPALACHIAN PRODUCTION VIRGINIA HUB EAST TENNESSEE INTERCONNECT VNG PROPANE PEAKING DIRECT TO ATLANTA PIPELINE ATLANTA HUB ELBA ISLAND LNG IMPORT TERMINAL MACON LNG SALT DOME STORAGE

  16. Near-Term Development Plans • Macon Peaking Pipeline • Peaking needs continue to grow in Atlanta despite declining load factor • Currently LNG facility is limited to 50% capability by constrained take-away capacity • VNG Propane-Air Facility Expansion • Additional peaking capacity needed at VNG • Modest propane injection has been used to manage peak needs • Improves duration and reliability of propane injection peaking

  17. U.S. Liquefied Natural Gas Facilities Everett Cove Point 4 2 1 3 Elba Island Lake Charles AGL Resources LNG Facilities Storage with liquefaction (57) Storage without liquefaction (39) Source: EIA, Office of Oil and Gas, September 2002

  18. What Makes ATG Different? • Location … Location … Location • Management is all over the details • Always searching for opportunities to create value • No surprises • Only promise what we know we can deliver

  19. We Keep Our Promises 2000 – 2002 CAGR = 16% Revised guidance upward following 3Q earnings

  20. Upcoming Events • ATG Analyst/Investor Conference – November 17-19 in Savannah, Georgia • 4th Quarter/Year-End 2003 Earnings Released – January 29, 2004 • Contact: Steve Cave Director, Investor Relations (404) 584-3801 E-mail: scave@aglresources.com

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