CALGARY - AltaGas (TSX:ALA) Ltd., a diversified energy infrastructure company, has announced a dividend increase to C$1.19 per share Tuesday, reflecting confidence in the robust performance of its core businesses. The company has also provided guidance for the upcoming year, projecting a normalized earnings per share (EPS) range of C$2.05 to C$2.25 and aiming for earnings before interest, taxes, depreciation, and amortization (EBITDA) between C$1.68 billion and C$1.78 billion.
This financial outlook suggests an uptick in profits for AltaGas and is bolstered by the company's strategic initiatives, including a self-funded capital plan valued at C$1.2 billion. This plan is primarily focused on expanding the utility segment, which along with midstream operations, forms the backbone of AltaGas's growth trajectory.
The forward-looking statements from AltaGas align with expectations from financial analysts at FactSet, who anticipate an EPS of C$2.14. Despite the divestiture of Alaska Utilities, the company remains on a positive growth path due to the strength of its midstream and utility operations.
CEO Vern Yu expressed optimism regarding AltaGas's prospects, noting the potential to reach the higher end of corporate forecasts for the close of 2023. Yu emphasized the company's commitment to enhancing shareholder value through increased capital returns, signaling a positive outlook for investors.
InvestingPro Insights
AltaGas Ltd .'s recent dividend increase and optimistic financial guidance are indicators of its strong market position and growth potential. For investors looking for additional insights, InvestingPro offers valuable metrics and tips that can further inform their investment decisions.
InvestingPro Data shows that the company's market capitalization stands at a robust 14.16 billion USD, with a price-to-earnings (P/E) ratio of 17.9, which is relatively low when considering their near-term earnings growth potential. The P/E ratio adjusted for the last twelve months as of Q3 2023 is 23.1, reflecting the company's earnings relative to its share price. Moreover, the company's revenue growth for the same period was an impressive 22.15%, demonstrating its ability to expand effectively.
In terms of InvestingPro Tips, AltaGas investors might be interested to know that analysts predict the company will be profitable this year, and the company has maintained its dividend payments for 26 consecutive years, showcasing its reliability and commitment to shareholder returns.
For those seeking to delve deeper into the financials and projections, InvestingPro subscribers have access to a wealth of additional tips. In fact, there are 13 more InvestingPro Tips available for AltaGas, each offering strategic insights that can help investors make informed decisions.
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