AltaGas strengthens profitable midstream operations

Article Excerpt

Alberta-based AltaGas has been striving to expand its midstream business, which involves processing, storing, transporting and marketing oil, natural gas, and natural gas liquids. In April 2023, it formed a joint venture with Dutch tank storage firm Royal Vopak to develop a liquefied petroleum gas (LPG) and bulk liquids terminal in B.C. Now, it’s adding a long-term source of LPG for the terminal. ALTAGAS LTD., $26.94, is a buy. The utility (Toronto symbol ALA; TSINetwork Rating: Extra Risk) (www.altagas.ca; Shares outstanding: 281.7 million; Market cap: $7.6 billion; Dividend yield: 4.2%) 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. AltaGas has now agreed to buy some natural gas assets from Tidewater Midstream and Infrastructure for $650 million. Under the agreement, AltaGas will acquire the Pipestone Natural Gas plant, the Dimsdale natural gas storage facility and the associated pipeline systems required to operate these assets. The purchase strengthens AltaGas’ midstream…