AltaGas: An Interesting Combination Of Midstream And Utility

Summary

• AltaGas Ltd. operates in midstream energy and utilities, offering stable cash flows and a 3.18% yield, higher than the S&P 500 and MSCI Canada indices.
• Despite trailing peers in total return over ten years, AltaGas has outperformed Canadian midstream peers in the past three years, suggesting potential for future growth.
• AltaGas's utility segment faces challenges in Washington, D.C., but opportunities exist in Michigan and from data center growth in Ashburn, Virginia.
• The company is well-positioned to supply LPG to Asia, which is a market with significant forward growth potential.
• The company has a reasonable financial structure and ATGFF stock is fairly valued compared to peers, though not significantly undervalued, making it a stable investment option.
• Looking for more investing ideas like this one? Get them exclusively at Energy Profits in Dividends. Learn More »

strickke

Analyst’s Disclosure:I/we have a beneficial long position in the shares of SPY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.