RE:RE:Conference CallSounds logical, but not with these guys.
Every time they puke the word "accretive" I just want to throw up.
They have made a joke of that word.
Look how many times ALA used that in their releases, promises and projections. And failed to executive even single one of them!
Everything has turned nothing else but dilutive. So the better just shup up and stop spending.
They have no idea how to executite any kind of "accretion" as the recent history so glaringly illustrates.
No arguments, just look below at their own words!
https://www.altagas.ca/newsroom/news-releases/altagas-ltd-acquire-wgl-holdings-inc-c84-billion-transaction - Upon closing of the acquisition, AltaGas Ltd. will have approximately C$22 billion of high quality, low risk, long-lived assets, with over C$7 billion of highly attractive embedded organic growth in all three business segments and across multiple geographies;
- Earnings per common share (EPS) accretion of approximately 7-9 percent with normalized funds from operation per share (FFOPS)(1) accretion of over 20 percent in the first full year of operations;
- Material accretion to EPS (8-10 percent) and normalized FFOPS (15-20 percent) on average through 2021;
- Higher growth on an absolute dollar and per share basis through 2021;
- Target of 8-10 percent annual dividend growth through 2021, while reducing AltaGas Ltd.'s dividend payout ratios; and
- Strong liquidity and investment grade credit ratings for AltaGas Ltd. and WGL Holdings, Inc.
Capharnaum wrote: Fantome wrote: Scenario A....they cut the dividend by 50% and identify cuts to the CAPEX to focus on priorities that will bring on more FFO quickly..eg Ridley...and also give clarity to their plans regarding FFO projections
I don't think they'll cut CAPEX. They will announce how they will pay for CAPEX.
Cutting CAPEX would be a terrible move as it would delay FFO/Earnings improvements while adding up charges. Plus, if the CAPEX is from a program that's been approved by the regulator, they just CAN'T cut it.
From the last CC, they were initially thinking about selling assets to cover the bridge loan, but due to the good market prices they are able to get, they were thinking of selling assets even above, which would cover CAPEX expenses. As long as CAPEX expenses generate more FFO/earnings than the assets they sell, this would be accretive for the shareholders (and thus be a bad move to cut).