WGL is a company of a high quality How Does Altagas Ltd.’s Acquisition of WGL Holdings Inc. Benefit Shareholders?
WGL is a high-quality utility with a solid balance sheet and is awarded a high S&P credit rating of A+.
Most importantly, WGL benefits Altagas and its shareholders in multiple ways.
Benefits of the acquisition
After the acquisition, Altagas will have $22 billion of high-quality, low-risk, long-lived assets. About 75% of Altagas’s earnings before interest, taxes, depreciation, and amortization will come from rate-regulated utilities and other stable earnings sources, which will improve the company’s dividend durability.
The acquisition is expected to be accretive to earnings per share by 8-10% and funds from operations per share by 15-20% on average through 2021.
Additionally, it’d support an 8-10% annual dividend growth for Altagas through 2021 with a reduced payout ratio. This will be supported by $7.3 billion of organic growth capital-investment opportunities.
[url=[url=https://www.fool.ca/2017/01/27/how-does-altagas-ltd-s-acquisition-of-wgl-holdings-inc-benefit-shareholders/]https://www.fool.ca/2017/01/27/how-does-altagas-ltd-s-acquisition-of-wgl-holdings-inc-benefit-shareholders/[/url]]Read more here[/url]