AltaGas Increases Dividends on Strong Business Performance

AltaGas, the Canadian energy infrastructure company, has announced a 6% increase in dividends, reflecting the expected growth in adjusted earnings in 2024. The company projects normalized earnings per share to be between 2.05 Canadian dollars ($1.51) and C$2.25, which represents a 10% increase over last year. Analysts estimate this growth at C$2.14 a share.

The company also expects normalized earnings before interest, taxes, depreciation, and amortization to grow between C$1.68 billion and C$1.78 billion, marking an 11% growth year-over-year using midpoint to midpoint guidance figures.

The growth will primarily come from AltaGas’ midstream and utilities businesses as they offset lost contributions from the Alaska Utilities sale earlier this year.

AltaGas is focusing on a self-funded program of C$1.2 billion for 2024, prioritizing low-risk organic growth within its utilities segment.

Additionally, the company will be increasing returns of capital to its shareholders to C$1.19 per share, reflecting a 6% increase to its annual dividend rate.

CEO Vern Yu is confident in AltaGas’ performance, stating that the company expects to reach the upper half of its guidance ranges by the end of 2023.

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