From Ryan Bushell published 2 hours ago...in the G&M Portfolio manager Ryan Bushell targets growing companies with hard assets and a steady cash flow
Mr. Bushell likes this company because it’s a hybrid of mid-stream natural gas infrastructure in Western Canada and gas-electric utilities in parts of the United States.
“It’s going to participate in this theme of retrofitting, upgrading and updating gas electric infrastructure and there’s a really nice, clear line of sight to that regulated contracted growth,” he says.
Mr. Bushell also sees a lot of potential for the company given the rising demand for liquified natural gas, including major LNG developments in Canada. AltaGas is well-positioned in the northwest Montney area in Western Canada, “which is where I think a lot of that development will proceed,” he says.
Regulations that could curb natural gas consumption might be a risk for the company, but Mr. Bushell believes such a risk is low given that natural gas is still in high demand and is one of the cleaner sources of electricity generation.
The stock is up 46 per cent over the past year, trading around $25.50. It has a dividend yield of 3.9 per cent.