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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 rfguysdon Apr 20, 2021 10:23pm
146 Views
Post# 33034691

RE:RE:RE:RE:RE:RE:Greg Newman view on ALA ....

RE:RE:RE:RE:RE:RE:Greg Newman view on ALA ....I would agree that ALA  is being punished  for its ‘lack of green”.And yes, selling its’  green assets was bad timing, unfortunate.

Analysts  look at  the rear-view mirror much too often and don’t see what is ahead.  How does one account for the 200M + additional ebitda from the additional 37% of Petrogas.  That certainly makes ALA  ….. less of a  utility and more of a hybrid in 2021.

Why  not partner  with Brookfield / Nextera / Enbridge and develop a green project for customers of WGL or Semco? Sell the green electrical power to its customers and the excess green can be used to make H2 for its heating base.
 
If  I were a betting man….Biden will introduce  a carbon tax after  the midterm primaries  and that will change some of the economics of green.

Just wondering .....what legacy will Randy leave?
 
GLTA
RFguy


=============================================================================

Great post rfguysd! I would also add that the Utility component is NOT green, and is therefore subject to a discount. Also, its revenue stream from the so-called Utility side is lopsided, giving it only two quarters of decent revenue per year. It is a shame that they divested of their green assets but understandable given the position bad management put them in.

rfguysd wrote:Adding to what marketsense stated,  Altagas is not a utility, nor a midstream but  a  hybrid.  Analysts should stop calling it a utility  and  I hope our community does too.   One analyst has stated that the SP  should reflect both , PE of a midstream  and PE of a utility.
PE midstream (ave) =12x
PE utility(ave) =18x
 
Notice the revenue for 2021 increasing due mainly to the midstream.
  Revenue Split Split
Actual Reported Revenue            
2019  revenue 5.5 Billion 24% Midstream 1.32 Billion
          76% Utility 4.18 Billion
                 
2020 revenue 5.6 Billion 30% Midstream 1.68 Billion
          70% Utility 3.92 Billion
                 
Estimated by comparison            
2021 revenue 6.125 Billion 33% MidStream 2.0026 Billion
          67% Utility 4.1220 Billion
                 
 
Note the increasing midstream ebitda.
  Ebitda Split Split
Actual Reported EBITDA            
2020 ebitda   1.31 Billion 39% Midstream 0.5109 Billion
          60% Utility 0.786 Billion
                 
Estimated by Altagas              
2021 revenue   1.5 Billion 43% MidStream 0.645 Billion
          57% Utility 0.855 Billion
 
Now…. the breakdown of earnings  is  only a estimate following the ebitda breakdown
Earning Split   --Estimated by EBITDA  split          
                 
2021 earnings   1.50 per share 43% MidStream 0.645 per share
          57% Utility 0.855 per share
                 
                 
Stock Price   Midstream P/E 12    $          7.74    
    Utility P/E 18    $        15.39    
                 
          SP  $        23.13    
 
GLTA
RFguy
===========================================================
marketsense - (4/16/2021 5:38:26 PM)
RE:RE:RE:Greg Newman view on ALA ....
Totally agree and have coninued to hold.  Don't get why their business model should be so
misunderstood.   They had a major restructuring of their business model a few years back but
since then continued to perform on all metrics since,  inculuding all through the pandemic year.  They own WGl,  2 lucrative propane export business licenses and % of pipeline assets.

I do get that many investors were upset over the restructuring  and the dividend cut so it still
lags its peers,  but as for performance,  its right up there.  Revenues increasing,  debt is
reducing and dividend increase this year.   I  don't see the reason for being misunderstood
by the market but I do see the reasons for buying and holding and have continued to add at 
strategic times when selloffs have occured.
RFguy

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