AltaGas Ltd T.ALA

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

AltaGas Ltd > AltaGas Announces Intention to Redeem All Outstanding Series

<< Previous

Bullboard Posts

Next >>

Comment by JJMAon Nov 22, 2020 3:27pm

111 Views

Post# 31949316

RE:RE:RE:RE:RE:RE:RE:RE:AltaGas Announces Intention to Redeem All Outstanding Series

rustyblades wrote: I concur with your assessment. They need to raise the dividend soon!!! The present share price is exposing them to a possible take over so I think the December timing is about right. The dividend paid on the redeemed preferred shares is equivalent to 3.8 cents per common share (8M pref / 279M common x 1.3125 annual dividend) so a bump of six cents per year (6 % raise) should be the minimum. Personally I prefer a lower raise with a guidance for future annual increases of 4 to 7% per year. This is similar to what Fortis, TRP and others do. Smaller increases supported with annual bumps. I would also like them to convert to a quarterly payout which makes the shares more attractive for smaller DRIP accounts.

bossu wrote: About the dividend paid by ALA to Sept 30:
_To preferred holder $ 50 M and $ 66 M to Dec 30
_To common shareholders $ 201 M and 268 M to Dec 30 for a total of $ 334 M
Adding just 0,01 to the actual 0,08 monthly payment will cost an additionnal $ 28 M per year

I don't support a dividend increase at t this point. The 5.3% that it currently pays is attractive in itself. I would rather see the money go towards deleveraging the balnce sheet. Reducing the leverage will lead to an upgrade of the company's debt rating. A ratings upgrade will have a greater positive impact on the stock price than a meagre dividend increase

So buying back Serie I will save $ 10 M and Serie K another $ 15 M for a total of $ 25 M (possible)
Of course issuing notes at 2,1% interest to cover the PR shares buyback a possibility.
It might be the time for Randy to think now at the common shares holder !
And the announcement could come at the same time of next 2021 ALA guidance and strategic Plan and hopefully at the same time of the final signature of 37 additional Petronas'equity.
This could come on December 17 and the announcement will be call ''2021 Guidance and Strategic Plan''
Is it not nice Suday readers or is it just''Fantasy,''?

[]Glad to see that the point I raise attract some positive view!; ALA is srenghtening its financial position and can make positiv move in reducing the borrowing cost and increase the EBITDA Just to say that financial position is stronger and bottom line improving to a point that dividend might be increased in the coming months. In my mind Increase EBITDA from Ripet,increase 8% revenue from the $ US 4,38 B rate base,gas gathering and processing, NGL extraction and fractionation and storage and the 74% Petronas ownership to be signed at the end of the year will add nice number to the bottom line. Cannot be more optomistic on ALA
This is my view .