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AltaGas Ltd T.ALA

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

Utilities Utilities - Regulated Gas Utilities
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

AltaGas Ltd
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(82)
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Post by YodaLayhehooon Jan 11, 2019 12:59pm
245 Views
Post# 29219487

Comparing peers to ALA

Comparing peers to ALA

Altagas 
                                               2016A   2017A   2018E   2019E   2020E

Debt Analysis Net Debt/EBITDA 5.5x     5.6x     9.3x      4.8x     4.8x
EBITDA                               (M) $701    $797    $1,001  $1,282  $1,291
Total Debt                          (M) $3,879 $3,672 $9,470  $6,220  $6,251
Payout Ratio                             85.0%  82.1%  118.9%   47.5%    43.9%

Price/Cash Flow                       10.0x    9.1x    7.2x      4.2x      3.8x
Price/Adj. EPS                         34.8x   24.0x   16.7x    11.8x     10.0x


Enbridge

                                      2016A   2017A   2018E   2019E   2020E

Net Debt/EBITDA             5.9x      6.3x     4.8x      4.8x     4.3x
Ebitda                            $6,902   $10,317 $12,701 $12,982 $14,372
Total Debt (M)                $41,568 $65,180 $60,974 $62,574 $62,574
Payout Ratio                   52.0%    66.2%     61.1%    66.2%    65.1%

Price/Adj. EPS                25.0x    25.3x     16.2x    17.4x     15.3x
Price/Cash Flow              9.2x     10.9x      7.6x      8.6x      7.8x


Inter Pipeline

                            2016A   2017A   2018E   2019E   2020E

Net Debt/EBITDA   5.6x     4.6x      4.6x      5.0x     5.3x
Total Debt (M)       $5,806 $5,708 $5,708   
Payout Ratio          68.2%   64.2%   66.0%    76.1%    81.1%

Price/Adj. EPS       21.4x    17.6x   12.6x    14.6x    15.3x
Price/Cash Flow     12.0x    9.8x    7.0x      8.2x      8.8x

Algonquin Power

                          2016A   2017A   2018E   2019E   2020E

Debt/EBITDA       8.1x      4.4x     5.3x      4.9x     4.7x
EBITDA (M)         $361      $682    $719      $831    $904
Payout Ratio      98.4%     80.8%   91.3%    83.1%   84.9%

Price/Adj. EPS   20.2x     19.8x    18.3x    15.7x    14.6x
Price/Cash Flow 10.6x    10.3x     8.9x      8.7x     8.2x

It looks as though Altagas is trading at half price from a price to cash flow basis and from an EPS basis as well. They have the lowest payout ratio. Every company in the space trades at about 8x Price to cashflow except for ALA Which currently trades at 4.2x. It's also worthly to note that the riskiest investment currently looks to be AQN Algonquin power which is the market favorite. AQN also leveraged up the balance sheet to over 8x debt to ebitda and recovered quickly in 2016. They became the market darling after that. ALA looks to have a fast recovery imminent and times change fast in the market. ALA looks to be trading at a 50% discount if you believe that is a fair value for the company that is your own personal choice. I'm betting times change eventually and Utilities look to be coming back into favor so I'd imagine the depressed values and multiples of all the companies should improve over time. 



 


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