BMO's take on ALA - Target $23 • Strong Q3/20 results highlight that ALA can still grow despite the challenging commodity price
environment. The Utilities segment is benefiting from opex savings, rate base growth and regulatory
cases that boost returns, while Midstream is experiencing de-risked cash flows with counterparty
upgrades and new contracts.
• Combined with de-leveraging and the accretive Petrogas acquisition, we see growth outperforming
peers and significant valuation expansion from discounted levels.
• As such, we are maintaining our Outperform rating and $23 target with the shares firmly a Top 3
Best Idea in our coverage.