RE: RE: RE: RE: RECORD EARNINGS !!!!!! AltaGas Reports Record Earnings for First Quarter
CALGARY, ALBERTA--(Marketwire - April 26, 2012) - AltaGas Ltd. (AltaGas) (TSX:ALA)(TSX:ALA.PR.A)(TSX:ALA.R) today reported net income applicable to common shares of $41.3 million (
.46 per share) for the three months ended March 31, 2012, compared to $26.7 million (
.32 per share) for the same period 2011. Normalized net income applicable to common shares was $40.2 million (
.45 per share) for the three months ended March 31, 2012, compared to $34.6 million (
.42 per share) for the same period 2011. Normalized EBITDA for the three months ended March 31, 2012, was $92.5 million, compared to $81.8 million for the same period 2011. Normalized funds from operations were $75.5 million (
.84 per share) for the three months ended March 31, 2012, compared to $61.5 million (
.74 per share) for the same period 2011.
"This quarter we delivered record earnings, underscoring the stability and strength of our assets and the effectiveness of our business strategy. We reported over 12 percent higher operating income of $76.4 million from our business segments this quarter compared to $68.5 million in first quarter last year," said David Cornhill, Chairman and CEO of AltaGas. "Again, our diversified portfolio, contracting and hedging strategies and regulated assets contributed to a solid quarter. Strong volumes and continued strong frac spreads in our Gas business, higher hedged power generation at higher prices and low gas prices mitigated the impact of weaker power spot prices in Alberta. The Utility business benefited from the addition of Pacific Northern Gas, our new utility in British Columbia, as well as rate base growth in Alberta and Nova Scotia."
More income coming next year.
tinyhopes
AltaGas has significant capital projects underway, with several new and expanded assets being commissioned in the latter half of this year. The Harmattan Co-stream Project, which will use 250 Mmcf/d of existing spare capacity is expected to be in service early third quarter 2012. An expansion at the Blair Creek facility is expected to add approximately 50 Mmcf/d of processing capacity and commence operation in third quarter. Construction of the Gordondale gas plant, a 120 Mmcf/d deep-cut facility, is well underway and expected to be in service in late 2012. AltaGas initiated several new pipeline projects for total cost of approximately $40 million also expected to be in service in late 2012. In Power, the 70 MWs of new generation assets in 2012 include gas-fired plants in Alberta at two of its gas plant sites, waste heat recovery in British Columbia and renewable generation in the United States.
More Growth for next year the dividend will be higher.
tinyhopes
AltaGas' most significant addition in 2012 is the pending acquisition of SEMCO Holding Corporation (SEMCO). On February 1, 2012, AltaGas announced the acquisition of SEMCO for US$1.135 billion including the assumption of US$355 million debt. The addition of SEMCO will add approximately US$725 million in rate base and is expected to be accretive to earnings and cash flow per share by more than 10 percent and add approximately $130 million in incremental EBITDA, in 2013, the first full year of ownership. In 2013, approximately two thirds of AltaGas' cash flow is expected to come from long-term contracted or regulated assets compared to 29 percent in 2011. Closing is subject to regulatory approval and is expected in third quarter 2012. The applications to the Michigan Public Service Commission and the Regulatory Commission of Alaska for approval of the transaction have been submitted, with hearings set for May in both proceedings.
"The year ahead will be busy, with almost $500 million in new gas assets, $90 million in new power assets, the acquisition of SEMCO and rate base growth at the Canadian utilities. These additions are expected to add over $200 million in EBITDA on an annualized basis," said Cornhill, "we will see significant growth in our diversified energy infrastructure portfolio which is expected to deliver superior economic returns by growing cash flow and earnings to support sustainable dividend growth and continued capital investment."
News cannot get better than this.
One has to love Alta gas for income and growth.
Wish all of my investments were as good as ALA.
tinyhopes
Construction at the 195 MW Forrest Kerr site is progressing
Construction at the 195 MW Forrest Kerr site is progressing ahead of schedule and on budget. Excavation of the power tunnel is underway, all other tunnels are completed and the power house excavation is 54 percent completed. In addition, significant work has been completed on the intake structure. As at March 31, 2012, 90 percent of project costs have been contractually committed. The environmental applications for the 66 MW McLymont Creek and the 16 MW Volcano Creek projects are in progress. Detailed engineering for McLymont Creek and Volcano Creek is on track to be completed prior to commencement of construction planned to start in second quarter this year. The McLymont Creek and Volcano Creek projects are expected to be in service in late 2015.