How Investors Are Reacting To AltaGas (TSX:ALA) Turning Profitable and Securing Major Export Agreements

• AltaGas Ltd. recently reported a turnaround in its second-quarter results, moving from a net loss a year ago to a net profit of CA$175 million on sales of CA$2.84 billion, alongside announcing new long-term export agreements with Pembina Pipeline and BASF for its Ridley Island facilities.
• These developments signal not only improved operational performance but also reflect growing demand and customer diversification in its global energy export business.
• We'll now consider how these strengthened export partnerships might influence the company's outlook within its established investment narrative.

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AltaGas Investment Narrative Recap

For AltaGas shareholders, conviction often hinges on the ability of export growth and recurring infrastructure revenues to offset project challenges and regulatory constraints. The latest round of long-term export agreements and improved earnings in Q2 2025 suggest progress on customer diversification and steadying financial performance; however, the most critical short-term catalyst, timely, cost-controlled completion of the Ridley Island Energy Export Facility, remains, while delays or overruns on this and other capital projects stay a material risk. This news reinforces the outlook but does not dramatically upend these near-term priorities or threats.

The new long-term agreement with Pembina Pipeline for expanded propane export capacity is particularly relevant, as it directly supports a key catalyst: filling and optimizing AltaGas’s Ridley Island assets to drive higher export volumes. This partnership with a major Canadian pipeline operator indicates ongoing demand and visibility for the company's export infrastructure, offering some validation of AltaGas’s investment thesis around infrastructure-led growth in the energy export market.

By contrast, investors should be aware of the risk that if large projects like REEF experience significant delays or budget overruns…

Read the full narrative on AltaGas (it's free!)

AltaGas is projected to achieve CA$15.0 billion in revenue and CA$848.3 million in earnings by 2028. This outlook is based on an anticipated 5.6% annual revenue growth rate and a CA$286.3 million earnings increase from the current earnings of CA$562.0 million.

Uncover how AltaGas' forecasts yield a CA$42.64 fair value, a 3% upside to its current price.

Exploring Other Perspectives

Fair value estimates from four members of the Simply Wall St Community span from CA$28.17 to CA$150.48 per share. Considering ongoing capital project risks, opinions about AltaGas's outlook and value can differ widely, explore these distinct viewpoints for a fuller understanding.

Explore 4 other fair value estimates on AltaGas - why the stock might be worth 32% less than the current price!

Build Your Own AltaGas Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your AltaGas research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free AltaGas research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate AltaGas' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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