Hey there,
We don't typically focus on short-term investments here - we take a long-term approach. That said, Altagas has had a good run and is close to breaking through 5yr highs. It's been a long-road for the company which stunned investors years ago with a dividend cut but has since returned as a more focused, efficient and cohesive company. The company is part utility and part midstream company. 55% of EBITDA comes from US Regulated gas distribution utilities and and 45% from midstream assets.
Despite its recent run-up, there is still value to be had. The company is only trading at 15.5 times forward earnings and last quarter it posted healthy 17% EBITDA growth. Recently, the Virginia regulator also approved a five-year extension to its SAVE ARP plan that is expected to provide teh company with $US880M in accelerated investments through 2027. The company has a slew of growth opportunities and expects to reduce leverage ratios and raise the dividend at the same time. There has been some strong positive sentiment towards its asset sales (most recently Alaskan Utilities) as it looks to streamline operations. There are several other targets that could be up for sale and could be viewed as additional catalysts as it can use to proceeds to further improve their debt profile.
In its more recent earnings, it re-iterated guidance for earnings of $1.80 to $1.95 per share and normalized EBITDA of $1.5 to 1.55B.
All in all, I like what the company is doing and IMO makes for a decent long-term hold. Full disclosure, I am long ALA.
Mat