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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

Comment by Capharnaumon Jan 25, 2021 11:33am
218 Views
Post# 32375469

RE:For those interested

RE:For those interestedSomething that's not taken into account for Altagas is that natural gas utilities trade at around 1.9x regulated assets base. Since they are into an accelerated investment period, this means that every dollar they put into regulated assets base will be worth around 1.9x (based on real world transactions) if they ever split the business (utilities/mid-stream).

I believe that such a split, at the end of the ramp up of Ripet and the accelerated investement period in the utilities, could easily unlock over $30 of value for shareholders (my projection is $30-40 per share after such a split). I'd have to go over each regulated assets base and the investment programs to project a more precise number, but the regulated utility portion could be worth over $20 per share by itself.
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