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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

Bullboard Posts
Post by Johnwith30yearson Jun 11, 2019 9:59am
175 Views
Post# 29814915

Some one wants a positive spin on the ALA sale of ACO assets

Some one wants a positive spin on the ALA sale of ACO assetsReally very easy. ALA was in trouble:  The market conditions changed re debt for companies, the closing on WGL took way lkonger than ALA had expected and they needed to raise capital by selling off assets to keep their creit rating.   They saw the long term value of Ripet and WGL  so they reluctantly sold off the miniumum of what they needed to do to keep the ship afloat... They saw value in ACI so kept as much as they could afford rather than selling it all at too low a price - now that the ACI assets are more or less fully valued they will do way bette rif they sell them now rather than had they done the whole sale earlier when the company was distressed and  no one would pay them fair market value.

 If anyone thinks that ALA would hav ebeen fine five year sout if they had not bought WGL  I doubt they hav efoillowed the declining value of smoe of those pre-existing assets.  They overpaid for WGL in the short term - arguably - but th elonger term future of the company  is not  determined on an overpayment if their is good value and sound management going forward.   

The positive spin is pretty easy in my book...Survival trumps mos tother decisions within a company  Now the ship is righting itself quickly...   

Bullboard Posts