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.

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AltaGas Ltd > Utility ebitda 4th Qtr 2020 vs 2019

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Post by rfguysdon Mar 01, 2021 11:36pm

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Post# 32692367

Utility ebitda 4th Qtr 2020 vs 2019

Have you wondered why there a decrease in utility ebitda for 2020 4^th Qtr when compared to 2019? It is a little odd ..don’t you think?

2019 Utility	2020 Utility	Decrease
ebitda	ebitda

259M	244M	-5.80%

1) What is the growth rate in residential subscribers?

Met Area	2019	2020	Increase
	Subscribers	Subscribers

Virginia	535,000	541,000	1.12%
Maryland	493,000	502,000	1.83%
Washington	164,000	166,000	1.22%
Enstar	147,000	149,000	1.36%
Semco	307,000	313,000	1.95%

Total	1,646,000	1,671,000	1.52%

2)The ROE for the Utility has been increasing . From 8% ROE in 2020 (numbers from Qtr) to 9.5% in 2021. This is a 1.5% increase in ROE. So adding the ROE increase in 2020 with the subscriber increase we should see a 3.0% in revenue for the Utility.

3) Weather. Let me table the heating-days for only one of the five Met areas. I will use Washington DC, the airport to calculate the heating-days for 2019 and 2020 4^th Qtr. The temperature is obtained from this site.
www.degreedays.net

Week	Heating -degree days	Week	Heating -degree days
10/3/2020	34	10/5/2019	17
10/10/2020	24	10/12/2019	42
10/17/2020	27	10/19/2019	51
10/24/2020	52	10/26/2019	30
10/31/2020	96	11/2/2019	114
11/7/2020	42	11/9/2019	161
11/14/2020	110	11/16/2019	133
11/21/2020	82	11/23/2019	129
11/28/2020	117	11/30/2019	154
12/5/2020	169	12/7/2019	165
12/12/2020	169	12/14/2019	191
12/19/2020	166	12/21/2019	178
12/26/2020	185	12/28/2019	117

	1273		1482

The change in heating days for 2020 4^th Qtr is -14.1% less than the heating days in 2019.

4)Even though, there has been subscriber growth , growth in ROE … the weather affected ebitda more decreasing the overall utility ebitda by 5%
.
GLTA
RFguy

PS. Good news coming …. Due the polar Vertex of 2021, the heating-days for 1stQtr 2021 is on track for an increase of 24%. This would positively increase 2021 Utility ebitda as compare to 1^st Qtr 2020.

1/2/2021	172	1/4/2020	163
1/9/2021	176	1/11/2020	107
1/16/2021	170	1/18/2020	213
1/23/2021	218	1/25/2020	160
1/30/2021	205	2/1/2020	122
2/6/2021	202	2/8/2020	146
2/13/2021	221	2/15/2020	172
2/20/2021	175	2/22/2020	145

	1539		1228