Post by
retiredcf on Dec 27, 2024 12:05pm
CIBC
Also have a $40.00 target. GLTA
EQUITY RESEARCH
December 24, 2024 Flash Research
ALTAGAS LTD.
Year-end Midstream Contracting Update
Summary: AltaGas executed its strong footing in Midstream contracting
activities and export advantages. In December, the company executed
several long-term commercial LPG contracts with existing and new
customers. Some of these contracts will take effect in 2027 with LPG
volumes that will be added to Canadian supply, while others will take near-
term effect with export volumes initially flowing through RIPET and moving to
REEF once the facility comes online. REEF construction continues to
progress, and the company expects to achieve its long-term contracting
targets in early 2025.
Robust Export Advantage: While we would expect U.S. tariffs on Canadian
LPG (if any) to be transient, they could help widen export spreads and
contracting efforts. A more sustainable upside could occur if Montney activity
picks up as LNG exports begin in 2025. AltaGas indicated that the current
RIPET advantage for Canadian producers to export to Asia is ~US$8/Bbl
higher than selling domestically or to major U.S. LPG markets. The company
reiterated the importance of linking Canadian LPG to Asia as the U.S.
oversupply compounds.
REEF Update: Construction activity at REEF continues to progress as
scheduled. Piling activities continued through December with temporary and
permanent piles being added, while uplands work is advancing as per
schedule. Storage tank fabrication is progressing offshore with steel cutting
more than 75% complete
Comment by
Podios2 on Dec 30, 2024 5:48am
ALA will be a well rounded company in the very near future with a good balance sheet will reward share holders very well long term hold for me