Topic: How To Invest

Power Growth Investor Hotline – Friday, May 27, 2022

Article Excerpt

ALTAGAS LTD., $30.47, is still a buy. The company (symbol ALA on Toronto) 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. Almost all of AltaGas’ assets are now in the U.S. That in part reflects its July 2018 purchase of Washington, D.C.-based utility WGL Holdings Inc. for $4 billion. The company has just announced that it has agreed to sell its Alaskan Utilities unit to TriSummit Utilities for $1.025 billion. The sale will include AltaGas’ 100% interest in ENSTAR Natural Gas, the largest local gas distribution company in Alaska with approximately 150,000 customers; the Alaska Pipeline Company, which operates transmission and distribution pipelines for ENSTAR; the company’s 65% indirect interest in Cook Inlet Natural Gas Storage Alaska (CINGSA), which is the only commercial state-regulated natural gas storage facility; and other ancillary unregulated operations. The sale of Alaskan Utilities will provide AltaGas with cash to…