AltaGas Ltd. Q3 2024 Financial Results

AltaGas Ltd. (TSX: ALA) reported strong financial and operational performance in the third quarter of 2024. The company achieved a 17% year-over-year increase in normalized EBITDA, totaling $294 million, while normalized earnings per share (EPS) nearly doubled to $0.14.

These results reflect record global export volumes of liquefied petroleum gases (LPGs) and a robust utility segment, helped by a pension plan settlement and capital investments.

Key Takeaways

• EBITDA Growth: 17% increase to $294 million in Q3 2024.
• LPG Exports: Record volumes to Asia exceeded 128,000 barrels per day.
• Utility Segment: 65% increase in normalized EBITDA to $117 million.
• Project Progress: REEF and Pipestone 2 projects remain on track.
• Financial Strategy: Issued $900 million in hybrid notes for balance sheet flexibility.

Company Outlook

• AltaGas expects normalized EBITDA at the upper end of its guidance range for 2024, with a capital budget of $1.3 billion.
• The company is focused on disciplined capital allocation and growth in data centers, amid regulatory challenges regarding gas supply choices.

Market Highlights

• Bearish Factors: Regulatory challenges in D.C. and Maryland.
• Bullish Factors: Strong performance in LPG exports and Mountain Valley Pipeline's operational debut.

Financial Strategy and Credit Rating

• AltaGas aims to maintain its BBB rating with Fitch by focusing on derisking initiatives and credit rating discussions.

Overall, the earnings call highlighted AltaGas' ability to capitalize on high export volumes and strategic investments, while positioning itself for sustained growth in the competitive energy market. They remain keen on navigating regulatory challenges to ensure long-term success.