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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 StormyDon Dec 03, 2019 1:44pm
211 Views
Post# 30418040

Great posts Sarge!

Great posts Sarge!Sarge:

I really enjoyed reading all of your posts!

I agree that 'to thine own self be true' is the best approach to investing (and to life in general)! For example, last year, analysts were ranking REITs as 'Under Market' weighting, but I chose to ignore and bought in quite a bit (in Dec. 2018) when the market had a 'correction' (specifically NWH.UN, SMU.UN, BTB.UN and APR.UN). About 30% up to date considering that group as a bundle. So much for experts and analysts!!!

The other sweet aspect of REITs is that you can hunt for those that generate a high (often 100%) portion of Return of Capital in their distributions. Seems to be a hallmark of relatively new, small and growing REITs - presumably cuz they are generating a lot of CCA with their new and growing portfolio of properties. With high RoC, you pay no tax in the year of receiving; instead the ACB is reduced and you have an increase in Unrealized Capital Gains (tax-free until time of liquidation).

Of course, the downside of attractive REITs is that they are also attractive to private capital funds and they get bought out (at a premium) - such as HLP.UN, MST.UN, ACR.UN and RUF.UN in recent years. You make a profit (capital gain) but then have to search out where to redeploy the cash! Oh well, could be much worse problems than this!

Re ALA: I share your curiosity to hear from ALA employees regarding their take on the erosion of shareholder value since the WGL acquisition. I also agree with you that in so many cases, going large with a US acquisition is a real 'digestive' problem for the Canadian buyer. ENB and TRP struggled post their US purchases in the recent past but seem to have survived. I am also confident that ALA will survive and rise from the ashes in the not-to-distant future. Let's just hope that the Greta, Justin and Gerry (Butts) show doesn't derail everything related to fossil fuel extraction, processing, shipping and selling!

Cheers!
Bullboard Posts