AltaGas Ltd. (TSX:ALA) is a North American energy infrastructure company operating across two major segments—Utilities and Midstream energy infrastructure. The company plays a key role in transporting, processing and exporting energy resources while also delivering regulated natural gas utility services.

In 2025, AltaGas delivered solid financial performance, supported by record liquefied petroleum gas (LPG) exports to Asia, rising utility rate base investments and strong operational execution across its infrastructure network.

With new growth projects underway and stable regulated utility revenues, AltaGas continues positioning itself as a long-term dividend growth and infrastructure investment opportunity.

Strong Financial Performance in 2025

AltaGas reported normalized EBITDA of $1.86 billion for full-year 2025, representing a 5% increase year-over-year and reaching the upper end of the company’s guidance range.

For the fourth quarter of 2025:

  • Normalized EBITDA: $564 million
  • Normalized EPS: $0.77 per share
  • Income before taxes: $310 million

For the full year:

  • Normalized EPS: $2.23 per share
  • GAAP EPS: $2.48 per share

The company’s results were driven by strong performance across both business segments.

Utilities delivered consistent growth due to higher rate base investments, favorable weather and asset optimization initiatives. Meanwhile, the Midstream segment benefited from increasing LPG export volumes and improved margins.

Record LPG Export Volumes

One of the most significant growth drivers for AltaGas has been the rapid expansion of its global LPG export business.

During the fourth quarter of 2025, AltaGas exported 124,593 barrels per day of LPG to Asia, utilizing Very Large Gas Carriers from its Ridley Island and Ferndale export terminals.

For the full year, exports reached a record 126,572 barrels per day, representing a 4% increase compared to 2024.

AltaGas delivered 83 shipments to Asia, with China accounting for approximately 45% of total export volumes.

The company’s market share in Chinese propane imports increased to about 6%, demonstrating growing global demand for North American LPG exports.

Utilities Segment Provides Stable Growth

AltaGas’ Utilities business remains a core pillar of the company’s stability.

The segment generated $1.09 billion in normalized EBITDA during 2025, compared with $1.01 billion in 2024.

Key factors supporting growth include:

  • Increased infrastructure investment
  • Utility modernization programs
  • Higher regulated rate base
  • Favorable weather conditions

Several regulatory approvals also support future earnings growth.

For example, regulators approved major infrastructure modernization programs for Washington Gas, including:

  • $700 million investment under the Virginia SAVE program
  • $150 million spending authorization under the District SAFE modernization program

These programs allow AltaGas to upgrade aging gas infrastructure while earning regulated returns on capital investments.

Major Growth Projects Underway

AltaGas continues to invest in a number of infrastructure expansion projects designed to support long-term growth.

Ridley Island Energy Export Facility (REEF)

The REEF export facility remains one of AltaGas’ most important development projects.

Construction progress is significant:

  • Over 85% of capital committed or spent
  • More than 70% of equipment delivered or installed
  • Expected completion in 2026

Additionally, REEF Optimization Phase I is expected to add 30,000 barrels per day of propane export capacity by 2027.

Pipestone II

The Pipestone II facility entered service in December 2025 and is already operating at over 90% utilization under long-term take-or-pay contracts.

These contracts provide predictable cash flows and reduce commodity price exposure.

Dimsdale Storage Expansion

AltaGas is expanding its Dimsdale natural gas storage facility, adding:

  • 6 Bcf of capacity by 2026
  • 30 Bcf additional capacity by 2027

The storage capacity is supported by long-term take-or-pay agreements, strengthening revenue visibility.

Data Center Infrastructure Opportunity

AltaGas is also exploring new opportunities in energy infrastructure supporting data centers.

The company recently signed an agreement to support the first phase of a 24-MW data center project in Maryland, scheduled for completion by the end of 2026.

Additionally, engineering and design studies for data center developments have been completed across:

  • Virginia
  • Michigan
  • Maryland

With rising power demand from AI data centers, utilities with reliable infrastructure are increasingly becoming strategic partners for technology companies.

Dividend Growth and Shareholder Returns

AltaGas remains attractive for income-focused investors due to its consistent dividend growth.

The company increased its annual dividend by 6% for 2026, bringing the payout to $1.34 per share annually.

Management also reaffirmed its long-term dividend growth target of 5–7% compounded annually through 2030.

This dividend growth outlook is supported by strong cash flow from regulated utilities and long-term midstream contracts.

2026 Financial Outlook

AltaGas expects continued growth in 2026.

The company forecasts:

  • Normalized EBITDA: $1.925 billion to $2.025 billion
  • Normalized EPS: $2.20 to $2.45 per share

These projections reflect continued expansion in LPG exports, infrastructure investments and utility rate base growth.

AltaGas also plans a $1.6 billion capital program in 2026, with the majority allocated to regulated utility investments.

Key Risks

Despite its stable infrastructure profile, AltaGas faces several potential risks.

Commodity Price Exposure
While many midstream revenues are hedged or contracted, profitability can still be affected by fluctuations in LPG and natural gas prices.

Regulatory Risk
Utility operations depend on regulatory approvals for rate increases and infrastructure investments.

Project Execution Risk
Large infrastructure projects such as REEF involve significant capital and execution risk.

Leverage Levels
AltaGas reported a net debt to EBITDA ratio of approximately 4.7x, which remains within its target range but still requires disciplined financial management.

Valuation Outlook

AltaGas is often valued as a hybrid utility and midstream infrastructure company.

Investors typically focus on metrics such as:

  • EBITDA growth
  • dividend yield
  • infrastructure asset base
  • long-term contract exposure

With strong cash flows, expanding export capacity and steady utility investments, AltaGas could remain an attractive income-oriented infrastructure stock.

Technical Analysis and Key Levels

From a technical perspective, AltaGas shares tend to move in line with broader energy infrastructure and utility sector trends.

Key technical levels investors often monitor include:

Support Levels

  • Long-term moving averages
  • Historical consolidation zones

Resistance Levels

  • Previous highs formed during energy sector rallies
  • Breakout levels tied to strong earnings or project announcements

A sustained move above key resistance levels could signal stronger bullish momentum.

Conclusion

AltaGas delivered strong operational and financial performance in 2025, supported by record LPG exports, expanding utility investments and disciplined capital allocation.

With several major infrastructure projects underway and stable regulated earnings, the company is positioned to deliver steady growth and reliable dividends in the coming years.

For long-term investors seeking exposure to energy infrastructure and dividend income, AltaGas remains a compelling company to watch.