AltaGas has a lead in key markets

Article Excerpt

AltaGas has strong appeal for growth-focused investors: the company’s regulated utilities provide steady cash flow to support the expansion of its midstream operations and the build-out of its liquefied petroleum gas facilities. Indeed, the future for this leader is increasingly bright as it continues its push into lucrative global markets. Altagas is a Power Buy. ALTAGAS LTD., $32.15, is a buy. The utility (Toronto symbol ALA; TSINetwork Rating: Extra Risk) (www.altagas.ca; Shares outstanding: 297.8 million; Market cap: $9.7 billion; Dividend yield: 3.9%) processes, transports, stores and markets natural gas for producers. It also operates natural gas utilities and is a power generator, with gas-fired, coal-fired, wind, biomass and hydroelectric plants. AltaGas operates through two divisions: The Utilities segment delivers natural gas to end-users in the U.S. This unit has about 1.6 million residential and commercial customers. This Utilities segment includes two utilities that operate across four major U.S. jurisdictions: Washington Gas Light Company serves 1.2 million customers across Maryland, Virginia and the District of Columbia; and SEMCO Energy delivers energy to 327,000 customers…