AltaGas (TSX:ALA) is a leading North American clean energy infrastructure company with strong growth opportunities and a focus on owning and operating assets to produce clean and affordable energy. The company’s long-term strategy is to grow in attractive areas seeking optimal capital deployment. In the Midstream business, the company is focused on optimizing the full value chain of energy exports by providing producers with solutions, including global market access off both coasts of North America via the company’s footprint in two of the best natural gas plays — the Montney and Marcellus.
To optimize capital deployment, the company seeks to invest in U.S utilities located in strong growth markets with increasing construction to support customer additions, system improvement and accelerated replacement programs. In the Power business, AltaGas seeks to create innovative solutions with light capital investment utilizing the company’s clean energy expertise.
AltaGas has three business segments: Utilities, Midstream, and Power.
Utilities serves approximately 1.6 million customers with a rate base of approximately US$3.7 billion through ownership of regulated natural gas distribution utilities across five jurisdictions in the United States and two regulated natural gas storage utilities in the United States, delivering clean and affordable natural gas to homes and businesses. The Utilities business also includes storage facilities and contracts for interstate natural gas transportation and storage services.
Midstream transacts more than 1.5 Bcf/d of natural gas and includes natural gas gathering and processing, natural gas liquids (NGL) extraction and fractionation, transmission, storage, natural gas, and NGL marketing. Power includes 1,105 MW of operational gross capacity from natural gas-fired, biomass, solar, other distributed generation, and energy storage assets located in Alberta. The Power business also includes energy efficiency contracting and WGL’s retail power marketing business.
AltaGas’s vision is to become a leading North American diversified energy infrastructure company. The company’s overall objective is to deliver premium service to customers while achieving superior and timely returns on invested capital in the Midstream and Utilities segments. In the Power segment, AltaGas seeks to create innovative solutions with a capital-light investment strategy.
AltaGas leverages the strength of its assets and expertise along the energy value chain to connect customers with premier energy solutions. This strategy is adopted based on the growing demand for clean, reliable, and affordable energy and the mounting need for market optionality for North America’s energy industry. With infrastructure assets in some of the fastest-growing energy markets in North America, AltaGas is developing an integrated footprint capable of delivering sustained value to shareholders and customers. AltaGas is focused on developing high-quality energy infrastructure underpinned by strong market fundamentals and long-term commercial agreements that provide stable cash flow.
AltaGas has a balanced portfolio with predictable and regulated returns in the Utilities segment, which provides a resilient and diversified platform for growth. The company continually assesses the macro- and micro-economic trends impacting the businesses and seeks opportunities to generate value for shareholders. The opportunities AltaGas pursues often align with a long-term strategy and provide ongoing organic growth potential, favourable risk profiles, and strong risk-adjusted returns.
