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

AltaGas

Today 10:17

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: ID:nCNWgkBfJa

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.)