The following is a summary of the AltaGas Ltd. (ATGFF) Q3 2024 Earnings Call Transcript:
Financial Performance:
AltaGas reported a normalized EBITDA of $294 million in Q3, reflecting a 17% growth rate year-over-year.
Normalized earnings per share (EPS) reached $0.14, nearly doubling compared to the previous year.
The company continues to see double-digit growth across its utilities and midstream operations despite weaker natural gas prices.A record for global export volumes was achieved, with over 128,000 barrels per day of LPG's exported to Asia.
Business Progress:
Key capital investments focusing on modernization and safety enhanced utility reliability and customer growth.
Successful negotiation of midstream commercial agreements and progress on major projects like REEF and Pipestone that are on schedule and budget.
Noteworthy developments in the utilities sector include engaging with data center developers to potentially use natural gas as a primary or backup power source.
Opportunities:
The worldwide demand for data centers is expected to triple by 2030, increasing total U.S. power demand significantly, with natural gas playing a crucial role. These developments represent substantial growth potential for AltaGas's utilities division, particularly in meeting energy needs.
Risks:
Acknowledged risks include potential operational challenges due to environmental or regulatory changes, particularly in regions like Northeast BC, and adverse effects such as milder winters impacting utility demand.
Legal challenges with gas bans in D.C. and Maryland represent regulatory risks that could impact customer energy choices and demand.
Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
