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Canada's AltaGas beats Q3 EPS estimates, maintains FY outlook

By Reuters News


Overview

  • Canada energy infrastructure firm's Q3 normalized EPS beat analyst expectations

  • Q3 normalized EBITDA rose 45% yr/yr, driven by higher global LPG exports

  • Company expects full-year results near high end of guidance range


Outlook

  • AltaGas expects 2026 normalized EBITDA at C$2.0 bln–C$2.1 bln, near high end of guidance

  • Company maintains 2026 normalized EPS guidance of C$2.35–C$2.60

  • AltaGas sees REEF Phase I commercial operations starting in Q1 2027


Result Drivers

  • GLOBAL LPG EXPORTS - Record LPG exports to Asia and higher export volumes drove Midstream segment growth

  • PIPESTONE II CONTRIBUTION - Addition of Pipestone II and increased utilization at Townsend boosted gathering and processing volumes

  • UTILITIES COST PRESSURE - Utilities segment EBITDA declined due to higher operating and administrative costs, partially offset by modernization investments


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Adjusted EPS

Beat

C$0.29

C$0.12 (7 Analysts)

Q3 Loss Per Share

C$0.07

Q3 Adjusted EBITDA

C$389 mln

Q3 Pretax Loss

C$30 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the natural gas utilities peer group is "buy"

  • Wall Street's median 12-month price target for AltaGas Ltd. is C$60.00, about 6.7% above its October 28 closing price of C$56.21

  • The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 20 three months ago


Reuters Recommended Reads

  • Oct 28 - Japan's Kyushu Electric Power to buy 12 LNG cargoes a year from Canadian expansion project

  • Oct 28 - Canadian oil firm Whitecap Resources' Q3 revenue rises on strong production, higher prices

  • Oct 28 - Norway's Equinor Q3 adjusted operating income nearly doubles on higher output, gas prices


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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