Topic: How To Invest

Hi, Pat: Could you please give me an update on AltaGas? Thank you.

Article Excerpt

AltaGas Ltd., $33.50, symbol ALA on Toronto (Shares outstanding: 144.7 million; Market cap: $4.9 billion; www.altagas.ca), processes, transmits, stores and markets natural gas for producers; generates power from gas-fired, coal-fired, wind, biomass and hydroelectric plants; and operates natural gas utilities. In the three months ended June 30, 2015, AltaGas’s cash flow per share dropped 41.9%, to $0.50 from $0.86 a year earlier. Revenue fell 11.7%, to $416.0 million from $471.0 million. The declines mostly came from increased maintenance costs at its 33%-owned Petrogas liquids-storage business. In September 2015, the company agreed to buy three gas-fired power plants in northern California for $642 million U.S. These facilities have long-term contracts to sell their power to Pacific Gas & Electric, which cuts their risk. The purchase should increase AltaGas’s annual cash flow per share by 5%. To help pay for this acquisition, the company sold 8.8 million common shares for $34.25 each, for proceeds of $300.0 million. AltaGas is part of a consortium that…