On Friday, AltaGas Ltd (TSX:ALA) reported its fourth-quarter earnings, for the last three months of 2024. Its Q4 profit came in at $203 million, or $0.68 per diluted share, marking a substantial increase from $113 million, or $0.40 per share, in the same period last year. On a normalized basis, earnings came in at $0.76 per share, up slightly from $0.75 in Q4 2023.
Revenue for the quarter totaled $3.26 billion, nearly flat compared to $3.29 billion a year earlier. The steady top-line performance reflects stability across AltaGas’ regulated utility business and its midstream operations, which benefit from robust demand for Canadian natural gas exports.
In a move that could enhance long-term growth, AltaGas recently announced a partnership with Keyera Corp. (TSX:KEY) to explore new pathways for exporting Canadian energy products to Asia. With growing demand for liquefied petroleum gas and other energy commodities in Asian markets, this collaboration could provide AltaGas with a valuable growth channel beyond North America.
Over the past five years, AltaGas shares have climbed more than 80%, reflecting both operational improvements and growing investor confidence in its infrastructure assets and export potential.
AltaGas currently offers a dividend yield of approximately 3.5%, which is well above the S&P 500 average of 1.3%, making it an appealing option to income-focused investors. Its blend of regulated cash flows, exposure to energy exports, and steady growth potential makes it an attractive option for long-term investors, particularly those who may want to hold it for years in their tax-free savings accounts.
