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 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

AltaGas Ltd

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Comment by EagleShineon Mar 01, 2019 10:36pm

95 Views

Post# 29432172

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

Thanks for good DD , iIthink AQN is similar too .the major problem was the attack of shorts by triggering stop lose prices plus last year tax selling lose with the help of poor Executives 2018 cc and misleads plus the poorest PR department so the stock became hated and management continued their poor strategy by cutting 56% dividend and not 35% as ALA was strong income ticker for many income investor plus no way in a businesslike ALA wanted to turn around from income to growth company in few a weeks they could do the turn over within 3 years time slowly ,so they lost their loyal income investors base with institutions first so they reach to this depressed levels ,IMO the debt isn't big problem for u any utility company the problem of ALA was the management lies and B*S talk about the way they like from 8-10% then CEO resignation and later to growth goal without any respect to share holders with huge miss of financial balance preparation for how to acquire WGL , ALA management were really childish clueless in leading ALA

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?