AltaGas Ltd T.ALA

ATB

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In a 2025 outlook for Canadian energy infrastructure stocks, ATB Capital Markets’ Nate Heywood raised his targets for Secure Energy Services Inc.  to $20 from $18 and TransAlta Corp.  to $22 from $18 with “outperform” ratings for both. The averages are $17.68 and $16.23, respectively.

“The year ahead should bring transformational changes to the energy landscape in Canada with LNG Canada entering service, the potential for data center development and the continued ramp-up of TMX,” said Mr. Heywood. “With improved egress and market optionality, we expect the pricing response will spur development across the WCSB and lead to year-over-year volume growth in the mid-single-digit range. While this will support high utilization of existing energy infrastructure assets, we also anticipate targeted capex deployment toward brownfield projects that improve connectivity and attractive investment multiples (5-8x) to elevate cash flows across the entire midstream value chain. Balance sheet positioning will continue to differentiate investment preferences and remains a core priority for a number of names under coverage (ALA, PKI, SOBO, TRP). Given the value creation in 2024, we anticipate share repurchases will remain active as an alternative cash flow lever, with GEI, KEY, PKI, SES, SPB and TA likely to execute under their respective NCIBs. The natural gas trade, driven by LNG and power demand, is expected to provide catalysts for IPPs, utilities and transmission pipeline operators. Our highest conviction names in the year ahead are ALA, ENB, SES and TA.”