As a result, these companies typically do not engage in major expansions and rarely have exponential...
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As a result, these companies typically do not engage in major expansions and rarely have exponential growth opportunities. Founded 1994 Core Business Gas AltaGas Company Profile Natural gas gathering and processing, NGL extraction and fractionation, transmission, storage, natural gas and NGL marketing Power Natural gas-fired, hydro, wind, and biomass generation facilities Utilities Regulated natural gas distribution utilities across North America and a regulated natural gas storage utility in the US, delivering clean and affordable natural gas to homes and businesses. HQ Calgary, Alberta, Canada No of Staffs More than 1,600 people (2017) Gas 294 Power 114 Utilities Corporate 1,001 220 Total 1,629 Vision & Mission AltaGas Company Profile To be a leading North American diversified energy infrastructure company The mission is to generate superior economic returns by investing in low-risk, long-life energy assets. AltaGas Company Profile Strategy Rationale behind Strategy Customer Value Proposition Adding services that are complementary to its existing business segments (organic growth) Growing through the acquisition and development of energy infrastructure (M&A). Alta Gas believes that in the long term, the abundant supply of natural gas in North America and the increasing global demand for clean energy will continue to provide opportunities for sustained growth across all of its Gas, Power and Utilities business segments. Superior service, safety, and reliability are also integral to AltaGas' customer value proposition 8 Listed in Toronto Stock Exchange Stock price performance 9 CA ALA Simple Moving Average Edit Volume SMAS AltaGas Company Profile ..........th..t.. 550 540 180 Cm 2013 2021 President & CEO Randy Crawford AltaGas Reasons behind of DEI purchase Company Profile Operating a diversified portfolio of clean energy assets in the US enables Altagas to reduce it carbon footprint and on meeting North America's demand for clean energy 10 U.S. Electric Power Generation by Source 60% 50% 40% 30% 20% 10% 0% 2005 2007 2009 2011 2013 Coal Reduction in Coal's consumption replaced by renewables and others Natural Gas -Nuclear Renewables Center for Strategic and International Studies | Energy and National Security Program Source: Adapted from U.S. Energy Information Administration data (October 2017). AltaGas Case Description: In January 2012, Alberta-based energy infrastructure business, AltaGas Ltd. (AltaGas), was considering the purchase of US-based green energy power producer Decker Energy International, Inc (DEI). The move into renewable energy and into the US would be a departure for AltaGas, which was primarily focused on traditional energy and infrastructure businesses in Canada. The financial lead on the acquisition project was looking at the assumptions provided. His task was to value the U.S. power producer's assets and provide feedback on issues that could affect the deal. Industry Profile Introduction Utility companies provide power-one of the most basic needs of households and industrial enterprises. Key Takeaways Majority of biggest providers of electricity and natural gas are based in either North America or Europe. Today, electrical utilities deliver power from not only fossil fuels but also from a variety of clean and renewable sources such as natural gas. Many investors look to utility companies as a conservative and low-volatility (low beta) investments. Utility Investing AltaGas Industry Profile Utilities are among the lowest-risk securities available, commonly having more- than-adequate cash flows. Utility companies incur significant upfront costs to start supplying utility services by purchasing power and water equipment and installing a distribution network. Because of very high fixed costs and its professionalism, utility companies become natural monopolists in specific geographic areas. Highly regulated & controlled by government AltaGas Industry Profile Because of this monopoly status, governments around the world heavily regulate utility companies and determine prices that utilities charge to customers. Because services are highly regulated, growth in the sector is highly dependent on the local government allowing the companies to raise prices. As a result, these companies typically do not engage in major expansions and As a result, these companies typically do not engage in major expansions and rarely have exponential growth opportunities. Founded 1994 Core Business Gas AltaGas Company Profile Natural gas gathering and processing, NGL extraction and fractionation, transmission, storage, natural gas and NGL marketing Power Natural gas-fired, hydro, wind, and biomass generation facilities Utilities Regulated natural gas distribution utilities across North America and a regulated natural gas storage utility in the US, delivering clean and affordable natural gas to homes and businesses. HQ Calgary, Alberta, Canada No of Staffs More than 1,600 people (2017) Gas 294 Power 114 Utilities Corporate 1,001 220 Total 1,629 Vision & Mission AltaGas Company Profile To be a leading North American diversified energy infrastructure company The mission is to generate superior economic returns by investing in low-risk, long-life energy assets. AltaGas Company Profile Strategy Rationale behind Strategy Customer Value Proposition Adding services that are complementary to its existing business segments (organic growth) Growing through the acquisition and development of energy infrastructure (M&A). Alta Gas believes that in the long term, the abundant supply of natural gas in North America and the increasing global demand for clean energy will continue to provide opportunities for sustained growth across all of its Gas, Power and Utilities business segments. Superior service, safety, and reliability are also integral to AltaGas' customer value proposition 8 Listed in Toronto Stock Exchange Stock price performance 9 CA ALA Simple Moving Average Edit Volume SMAS AltaGas Company Profile ..........th..t.. 550 540 180 Cm 2013 2021 President & CEO Randy Crawford AltaGas Reasons behind of DEI purchase Company Profile Operating a diversified portfolio of clean energy assets in the US enables Altagas to reduce it carbon footprint and on meeting North America's demand for clean energy 10 U.S. Electric Power Generation by Source 60% 50% 40% 30% 20% 10% 0% 2005 2007 2009 2011 2013 Coal Reduction in Coal's consumption replaced by renewables and others Natural Gas -Nuclear Renewables Center for Strategic and International Studies | Energy and National Security Program Source: Adapted from U.S. Energy Information Administration data (October 2017). AltaGas Case Description: In January 2012, Alberta-based energy infrastructure business, AltaGas Ltd. (AltaGas), was considering the purchase of US-based green energy power producer Decker Energy International, Inc (DEI). The move into renewable energy and into the US would be a departure for AltaGas, which was primarily focused on traditional energy and infrastructure businesses in Canada. The financial lead on the acquisition project was looking at the assumptions provided. His task was to value the U.S. power producer's assets and provide feedback on issues that could affect the deal. Industry Profile Introduction Utility companies provide power-one of the most basic needs of households and industrial enterprises. Key Takeaways Majority of biggest providers of electricity and natural gas are based in either North America or Europe. Today, electrical utilities deliver power from not only fossil fuels but also from a variety of clean and renewable sources such as natural gas. Many investors look to utility companies as a conservative and low-volatility (low beta) investments. Utility Investing AltaGas Industry Profile Utilities are among the lowest-risk securities available, commonly having more- than-adequate cash flows. Utility companies incur significant upfront costs to start supplying utility services by purchasing power and water equipment and installing a distribution network. Because of very high fixed costs and its professionalism, utility companies become natural monopolists in specific geographic areas. Highly regulated & controlled by government AltaGas Industry Profile Because of this monopoly status, governments around the world heavily regulate utility companies and determine prices that utilities charge to customers. Because services are highly regulated, growth in the sector is highly dependent on the local government allowing the companies to raise prices. As a result, these companies typically do not engage in major expansions and
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