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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

Post by Johnwith30yearson Dec 15, 2021 9:15am
337 Views
Post# 34232165

ALA's strategic plan is very sound Markets will respond

ALA's strategic plan is very sound Markets will respondMarkets will respond but only gradually to this excellent plan.
The quick look sugggests rathe rslow EBITDA growrth  until one looks at the overall picture.  I have finished their whole report on their website now and immediate EBITDA  growth looks small after last years' which included transportation asset sales.... BUT   5-7% annual dividend growth is excellent.   And a third terminal capacity to be developed via Ferndale expansion and debt lowering continuing etc   and more flesh re future hydrogen and amonia development  with RNG  initial projects developing..

One of th emost important phrases is they "do not view dividends as inputs but outputs.  

One of the things that got ALA in trouble before is that they looked at dividends as a fixed cost regardless of their output and now that ship has been righted ... and to expand growth without diluting shareholder value  - all these are what institutional investors are looking for..  So 10% EPS growth out toward 2026  is excellent.

If share growth drops today it will be short term as their plan looks excellent to me  AND   while I did not see that $2.00 EPS figure I did see upper guidance of $1.95   and they have consistently outdelivered.   I expect actual annula earnings of $2.00 very soon maybe this year and certainly overall by next.   28-30 look like reasonable one year targetsd to me.   IMO   GL  John
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