AltaGas Ltd. (TSE:ALA)
TSX:ALA
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AltaGas
(TSX:ALA)
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Rating:67Neutral
Price Target:
C$52.00
â–²(8.15% Upside)
Action:ReiteratedDate:03/26/26
The score is driven primarily by improving profitability but held back by weak free-cash-flow generation and meaningful leverage. Technicals are supportive with a strong uptrend and positive momentum, while valuation is reasonable and the earnings call was moderately positive due to reaffirmed guidance, hedging strength, and project execution progress alongside identifiable regulatory and execution risks.
Positive Factors
Diversified fee-based and regulated business model
AltaGas combines contracted midstream fees, liquids terminal/tonnage fees and regulated utility rate-base earnings. That mix materially reduces pure commodity exposure, supports predictable contracted or regulator-backed cash flows, and underpins steadier long-term revenue and investment visibility.
Negative Factors
Negative free cash flow and weak cash conversion
Negative free cash flow despite solid operating cash suggests heavy capex, working-capital pressure or timing effects. Persistent weak cash conversion versus earnings limits internal funding for growth, increases reliance on external financing, and reduces flexibility to absorb shocks or accelerate projects.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified fee-based and regulated business model
AltaGas combines contracted midstream fees, liquids terminal/tonnage fees and regulated utility rate-base earnings. That mix materially reduces pure commodity exposure, supports predictable contracted or regulator-backed cash flows, and underpins steadier long-term revenue and investment visibility.
Read all positive factors
AltaGas (ALA) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$14.97B
Dividend Yield2.99%
Average Volume (3M)1.19M
Price to Earnings (P/E)16.4
Beta (1Y)0.29
Revenue Growth-0.68%
EPS Growth49.61%
CountryCA
Employees3,045
SectorEnergy
Sector Strength52
IndustryRegulated Gas
Share Statistics
EPS (TTM)0.77
Shares Outstanding311,290,560
10 Day Avg. Volume1,831,664
30 Day Avg. Volume1,188,493
Financial Highlights & Ratios
PEG Ratio0.60
Price to Book (P/B)1.41
Price to Sales (P/S)1.00
P/FCF Ratio-36.59
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$50.58Price Target Upside5.20% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)2.35
Revenue Forecast (FY)C$13.95B
AltaGas Business Overview & Revenue Model
Company Description
AltaGas Ltd. operates as an energy infrastructure company in North America. The company operates through Utilities and Midstream segments. The Utilities segment owns and operates rate-regulated natural gas distribution and storage utilities in Mar...
How the Company Makes Money
AltaGas makes money primarily through contracted and regulated cash flows generated by three main business lines: (1) Midstream: It earns revenue by providing natural gas gathering and processing services to producers and other customers, as well ...
AltaGas Earnings Call Summary
Earnings Call Date:Mar 06, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call highlights strong operational execution, record export volumes, project progress (Pipestone II, REEF Phase 1, Opti-1 uplift), solid quarterly and full-year financial results, improved credit outlook and disciplined capital plans. Notable challenges include a 28-day labor disruption, an active Indigenous/commercial dispute on Ridley Island, higher O&M and retail contributions weakness, plus regulatory and project execution dependencies. On balance, the positive operational and financial momentum, strengthened balance sheet and hedging positions outweigh the listed challenges.Positive Updates
Strong Full-Year Financial Performance
Delivered normalized EBITDA exceeding $1.86 billion for FY2025 and reported EPS of $2.23, with reaffirmed 2026 guidance of normalized EBITDA $1.925–$2.025 billion and normalized EPS $2.20–$2.45.
Negative Updates
Labor Disruption Impact at RIPET
A 28-day labor disruption affected RIPET in the period (although company still delivered a new quarterly export record), underscoring operational labor risk.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Full-Year Financial Performance
Delivered normalized EBITDA exceeding $1.86 billion for FY2025 and reported EPS of $2.23, with reaffirmed 2026 guidance of normalized EBITDA $1.925–$2.025 billion and normalized EPS $2.20–$2.45.
Read all positive updates
Company Guidance
AltaGas reaffirmed 2026 guidance with normalized EBITDA of $1.925–$2.025 billion and normalized EPS of $2.20–$2.45, backed by a $1.6 billion 2026 capital budget (69% Utilities, 27% Midstream) including roughly $1.1 billion of Utilities spend (71% modernization/system betterment) expected to drive ~10% rate base growth; about 80% of expected 2026 global export volumes are tolled or financially hedged (average FEI-to‑North America spread on non‑toll volumes ≈ US$19/bbl), Baltic freight exposure is substantially hedged, frac‑spread hedges are ~70% through 2026, and a $1/bbl propane move equates to roughly $10 million (this sensitivity is baked into guidance); balance‑sheet targets remain intact with year‑end adjusted net debt/normalized EBITDA at 4.7x (target 4.5–5.0x), roughly $5 billion of investment capacity over the next three years to fund $3.5 billion of growth within guardrails, and a long‑term enterprise growth target of 5–7% CAGR.AltaGas Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
62
Positive
Cash Flow
45
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 12.55B | 12.45B | 12.89B | 14.39B | 10.63B |
| Gross Profit | 3.02B | 2.76B | 2.26B | 2.81B | 2.46B |
| EBITDA | 1.69B | 1.62B | 1.70B | 1.48B | 1.41B |
| Net Income | 768.00M | 596.00M | 673.00M | 523.00M | 283.00M |
Balance Sheet | |||||
| Total Assets | 26.77B | 26.09B | 23.47B | 23.96B | 21.59B |
| Cash, Cash Equivalents and Short-Term Investments | 99.00M | 85.00M | 95.00M | 53.00M | 63.00M |
| Total Debt | 10.54B | 10.57B | 9.88B | 10.17B | 8.71B |
| Total Liabilities | 17.22B | 17.05B | 15.61B | 16.35B | 13.99B |
| Stockholders Equity | 8.91B | 8.75B | 7.71B | 7.46B | 6.95B |
Cash Flow | |||||
| Free Cash Flow | -344.00M | 149.00M | 178.00M | -419.00M | -76.00M |
| Operating Cash Flow | 1.24B | 1.54B | 1.12B | 539.00M | 738.00M |
| Investing Cash Flow | -1.28B | -1.38B | -199.00M | -997.00M | -483.00M |
| Financing Cash Flow | 54.00M | -175.00M | -882.00M | 435.00M | -245.00M |
AltaGas Technical Analysis
Positive
48.08
Price Trends
44.49
Positive
43.00
Positive
41.58
Positive
Market Momentum
0.97
Positive
63.89
Neutral
40.81
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ALA, the sentiment is Positive. The current price of 48.08 is above the 20-day moving average (MA) of 47.41, above the 50-day MA of 44.49, and above the 200-day MA of 41.58, indicating a bullish trend. The MACD of 0.97 indicates Positive momentum. The RSI at 63.89 is Neutral, neither overbought nor oversold. The STOCH value of 40.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ALA.
AltaGas Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | C$7.49B | 30.68 | 7.90% | 3.76% | -1.59% | 0.09% | |
67 Neutral | C$14.97B | 16.39 | 9.01% | 2.99% | -0.68% | 49.61% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
64 Neutral | C$5.20B | 20.80 | 16.47% | 6.61% | -12.18% | -29.17% | |
61 Neutral | C$12.44B | 27.94 | 15.39% | 4.81% | -4.09% | -3.57% | |
54 Neutral | C$1.50B | 18.82 | 8.15% | 2.54% | 6.58% | 9.33% | |
45 Neutral | C$7.08B | -22.03 | 22.29% | 4.56% | 3.29% | 76.89% |
* Energy Sector Average
TSE:ALA
AltaGas
48.08
10.25
27.09%
TSE:GEI
Gibson Energy
30.24
9.08
42.93%
TSE:PSK
PrairieSky Royalty
32.19
6.83
26.92%
TSE:KEY
Keyera Corp.
54.25
11.79
27.77%
TSE:SPB
Superior Plus
6.91
0.54
8.44%
TSE:BIPC
Brookfield Infrastructure
53.59
3.91
7.87%
AltaGas Corporate Events
Business Operations and StrategyExecutive/Board Changes
AltaGas Names Veteran Executive Derek Evans as Next Board Chair
Positive
Mar 6, 2026
AltaGas has announced a planned transition in its board leadership, appointing veteran energy executive Derek Evans as the next Board Chair effective May 1, 2026, following the 2026 annual shareholders meeting. Outgoing Chair Pentti Karkkainen wil...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
AltaGas Delivers Strong 2025 Results and Advances Major Export and Infrastructure Projects
Positive
Mar 6, 2026
AltaGas reported strong fourth-quarter and full-year 2025 results, with normalized EBITDA rising 5% year over year to $1.863 billion, landing at the top end of guidance. Earnings were supported by record LPG exports to Asia, higher midstream throu...
Business Operations and StrategyFinancial Disclosures
AltaGas Sets March 6 Date to Release Q4 2025 Results
Neutral
Feb 6, 2026
AltaGas Ltd. announced it will release its fourth-quarter 2025 financial results on March 6, 2026, before markets open, and will host a conference call and webcast later that morning to discuss the performance and recent corporate developments. Th...
Business Operations and StrategyExecutive/Board Changes
AltaGas Unveils CFO Succession and Advances Montney Midstream and U.S. Pipeline Projects
Positive
Jan 7, 2026
AltaGas announced a planned CFO transition, with long-serving finance chief James Harbilas retiring in April 2026 and moving into a strategic advisor role while Sean Brown, a veteran energy and capital markets executive and former Gibson Energy CF...
Business Operations and Strategy
AltaGas Secures Five-Year Labour Deal at Ridley Island Propane Export Terminal
Positive
Dec 29, 2025
AltaGas has signed a new five-year labour agreement with the International Longshore and Warehouse Union Local 523B covering workers at its Ridley Island Propane Export Terminal, ending a 28-day labour disruption and bringing union employees back ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.