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AltaGas Ltd T.ALA

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

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
Post by Rawcolton Aug 26, 2016 3:11pm
752 Views
Post# 25181570

ALA seems cheap to me.

ALA seems cheap to me.I was an accountant when I came out of Univiersity, then worked for a public accounting firm for 5 years before going into my own business. When going through ALA quartery report it would appear that ALA is a cash earning monster. ALA is trading at  about 10x cash to market cap, to me that is extremely cheap and explains why a 6% dividend only accounts for about 50% of the cash flow generated. The EBITDA also looks extremely inexpensive for ALA's Valuation. What I think throws people off on this stock are the large amounts of Depreciation being booked by ALA.  I am just wondering how much of the writeoffs are short term expensing exceptions allowed by Revenue Canada to encourage investment in Capital related infrastructure investments. If I knew that then I could further argue why adjusted EPS is so low given all the other valuation metrics.  Have to assume that those quick writeoffs are quite large given the amount of spending ALA has been doing for the past few years.  On all accounts, ALA appears to quite heavily undervalued given it's earnings parameters and the fact that it is in fairly stable businesses going forward with some growing trends in such things as Propane export and Deep water port future usage possibilities.

Bullboard Posts