AltaGas Ltd T.ALA

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

AltaGas Ltd. is a Canada-based infrastructure company that connects natural gas and natural gas liquids (NGLs) to domestic and global markets. Its segments include Utilities and Midstream. Utilities owns and operates franchised, cost-of-service, rate-regulated natural gas distribution and storage utilities, which includes two utilities that operate across four United States jurisdictions. The Utilities business also includes other storage facilities and contracts for interstate natural gas transportation and storage services, as well as WGL Energy Services, Inc., which sells natural gas and electricity. Midstream is a North American platform that connects customers and markets from wellhead to tidewater. The three pillars of the Midstream business include global exports, which includes its two operational Liquified Petroleum Gas (LPG) export terminals and one prospective development terminal; natural gas gathering, processing and extraction, and fractionation and liquids handling.

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AltaGas Ltd

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Comment by james1975on Mar 01, 2019 5:01pm

154 Views

Post# 29431145

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:TD Waterhouse Comments

Bingo. It is sentiment, pure and simple.
And sentiment will change once RIPET starts contributing and then people realize that WGL is actually a growth utility.

YodaLayhehoo wrote: I just pointing out that the numbers scotia has out and most likely the other banks. Shouldn't be any influence to anyone. Take a look at this.

IPL 8 Billion market cap double ALA. ALA would be trading over $30 at the same valuation. These are the numbers Scotia has for them.

2017A 2018A 2019E 2020E

Adj EPS $1.48 $1.52 $1.29 $1.31
Price/Adj. EPS 17.6x 12.7x 16.4x 16.1x
Payout Ratio 64.2% 64.5% 80.8% 82.7%
EBITDA (M) $1,174 $1,245 $1,182 $1,231

Altagas Numbers

2017A 2018A 2019E 2020E
Adj EPS $1.19 $0.88 $1.01 $1.22
Price/Adj. EPS 24.0x 15.9x 17.5x 14.5x
Payout Ratio 82.1% 123.5% 48.8% 43.9%
EBITDA (M) $797 $1,009 $1,255 $1,304

This is from the same Scotia report. I'll highlight below what I'm talking about. Their price target are for a year out 2019

IPL EPS $1.29
ALA EPS $1.01

IPL EBITDA $1182
Altagas EBITDA $1255

Payout Ratio

IPL 80%
ALA 48%

Yet for some reason IPL is worth double what the ALA price target is. IPL is worth close to 9 billion and ALA is worth 4 Billion?

Is it the debt that everyone keeps talking about let's see?

IPL Debt 5.8 billion
ALA Debt 6.8 Billion

Nope!

So why does the same analyst have such shockingly different numbers for 2 companies in the same space? I don't have the answer to that. IPL double, double the market cap of ALA. Do those numbers look that different?