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AltaGas Ltd T.ALA

Alternate Symbol(s):  ATGAF | T.ALA.P.A | ATGFF | T.ALA.P.B | T.ALA.P.G | AGASF | T.ALA.P.H | ATGPF

AltaGas Ltd. is a Canada-based energy infrastructure company that connects natural gas and natural gas liquids (NGLs) to domestic and global markets. The Company’s segments include Utilities and Midstream. Its Utilities segment owns and operates franchised, rate-regulated natural gas distribution and storage utilities, which includes four utilities that operate across five United States jurisdictions. It Utilities segment also includes storage facilities and contracts for interstate natural gas transportation and storage services, as well as the affiliated retail energy marketing business. Its Midstream segment includes global exports, which includes its two LPG export terminals; natural gas gathering and extraction, and fractionation and liquids handling. Its Midstream segment also consists of natural gas and NGL marketing business, domestic logistics, trucking and rail terminals, and liquid storage capability. Its subsidiaries include Wrangler 1 LLC, WGL Holdings, Inc. and others.


TSX:ALA - Post by User

Bullboard Posts
Comment by HDP18on Oct 30, 2018 5:57pm
208 Views
Post# 28897637

RE:Dividend Math

RE:Dividend MathThanks for the analysis. Always better than subjective opinions that never try to understand intrinsic value. The key of the US acquisition which they made, which is looking to potentially topple this house of utilities is in my opinion: 1) Did they buy a "lemon" capex nightmare of a utility which they overpaid for. Think about how much they have to spend on the infrastructure versus the expected rate increases they hope they can pass on to the customer of the utility. By no means certain they will get in total every rate increase they ask for. So, big requirement for the FFO to happen above 10 percent. Altagas has done a horrible job telling the shareholder what value and future earnings model they based this company game changer on. Why pay billions to then sell billions (paying a commission to do it) unless they bought a US company that will lead to superior growth and utility profit model than what they had in Canada. 2)If the management wants to have any respect left after having a $50 company become a $16 company is to take the dividend down to 5 cents a quarter in November. Why? They can't both payout dividend, spend on maintenance given current FFO. Just cant happen. It is painful, but they must meet their bridge loan obligation, sell the assets at a decent price and focus on being a leaner operation. Buffet's Berkshire doesn't pay a dividend in favour or reinventment in company growth and share price. Time Altagas does the same to survive. Month and quarter end, so expect another 4 percent lower from here. Then, if these clowns are serious about earning instead of empire building, I would say Buy with a 8 percent stop out.
Bullboard Posts