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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 Johnwith30yearson Dec 14, 2021 2:29pm
143 Views
Post# 34229967

RE:RE:Guidance and year end

RE:RE:Guidance and year endHi there:  I was just using a quick and dirty calcualtion re ALA  but  in general its P/E has been much higher in many different kind of markets,  Even today many are showing it  has a PE of over 16 which must be a trailing number.  I think they went 6% vs 4% increase in the dividend when 4% was their guidance to take account of inflation.
Becasue I still see ALA as underpriced against many metrics I do think that the $28 figure is quite reasonable  - Most of the analysts are higher and closer to $30 at the moment,   

Some large institutions can only buy when credit risk is lower and as ALA lowers its debt it not only becomes more attractive to larger institutions but increases the amount availablel for dividends as well.   I won;t change my 28 target unless inflation looks set to really take off but even then  it will stay attractiv eon a defensive basis.

I like to mix of Midstream exports paired with the utility and the various growth factors they have but I do think a split into two parts would probably csuse further value to be unlocked.   All in all I still really like ALA for an investment and see 2022 upside under most scenarios.    
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