Topic: How To Invest

Q: Hi, Pat. Your opinion on AltaGas, please. Thanks.

Article Excerpt

A: AltaGas Ltd., $17.89, symbol ALA on Toronto (Shares outstanding: 275.4 million; Market cap: $4.9 billion; www.altagas.ca), 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 the company’s assets are now in the U.S. On October 25, 2018, AltaGas bundled some of its Canadian utility and renewable energy assets into a separate company called AltaGas Canada Inc. (Toronto symbol ACI). It sold 16.5 million shares of the new firm to the public at $14.50 a share. AltaGas held onto 37% of AltaGas Canada’s shares. That new firm holds the company’s Canadian rate-regulated natural gas distribution utilities and contracted wind power assets. In addition, AltaGas Canada holds roughly 10% interest in the Northwest Hydro Facilities in B.C. Under the terms of the AltaGas Canada share issue, AltaGas must hold on to its 37% interest in the company until October 2019. After that,…