Topic: How To Invest

Q: Pat: What are your thoughts on Atlantic Power (ATP)?

Article Excerpt

A: Atlantic Power, $3.63, symbol ATP on Toronto (Shares outstanding: 110.0 million; Market cap: $400.4 million; www.atlanticpower.com), owns 22 North American power generation assets, with operating capacity of 1,447 megawatts. About half of the company’s assets are natural gas-fired facilities; it also owns hydroelectric, biomass, and coal generation plants. Of Atlantic’s 22 facilities, two in Ontario are now out of operation because their power supply contracts expired on December 31, 2017. As well, the company’s three plants in San Diego, totalling 112 megawatts, ceased operations in February 2018, when their power contracts with utilities ended. As of October 31, 2018, all of Atlantic’s remaining 17 projects were in operation, for a total generating capacity of 1,255 megawatts. The company undertook a number of steps to stabilize its poor finances in 2015. This included the sale of its wind portfolio, a focus on cost containment and debt reduction, and the elimination of its dividend. But Atlantic still faces a number of big challenges. For…