AltaGas (ALA1N) Q3 2026 Earnings Report
MX:ALA1N Q3 2026 EPS Results
- Actual EPS
- MXN 3.90
- Consensus EPS
- MXN 2.10
- Beat/Miss
- Beat by +MXN 1.80
- One Year Ago EPS
- MXN 0.54
MX:ALA1N Q3 2026 Revenue Results
- Actual Revenue
- MXN 48.02B
- Expected Revenue
- MXN 36.16B
- Beat/Miss
- Beat by +MXN 11.86B
- YoY Revenue Growth
- +35.41%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/29/2026
- Time
- Before Open
- Conference Call
- Thursday, October 29, 2026
MX:ALA1N Upcoming Earnings
AltaGas's next earnings date is estimated for March 5, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:ALA1N Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive overall. AltaGas reported record quarterly EBITDA and EPS, substantial Midstream volume and export growth, constructive utility rate case outcomes, progress across major growth projects, improving leverage and guidance tracking toward the upper end of the increased 2026 ranges. The principal negative topics were the Trigon labor strike, Middle East-related LPG and shipping disruptions, flat Utilities EBITDA and higher incentive costs, but management said these risks were being mitigated or reflected in its outlook.
Company Guidance
AltaGas expects to be towards the high end of its recently increased 2026 guidance range for normalized EBITDA of $2 billion to $2.1 billion and normalized EPS of $2.35 to $2.60, and still expects results towards the upper end of its guidance ranges, including any potential financial impacts from the Trigon strike; capital investment remains approximately $1.8 billion, with roughly a 60% allocation to utilities and the remainder to the Midstream and corporate segments, while leverage was 4.3x versus its 4.5x to 5x target leverage range. For 2027, the target is to be 80% tolled or financially hedged for the remainder of the year, with about 75% hedged and/or tolled for Q1, REEF remains on track for an in-service date in the first quarter of next year, REEF Optimization 1 for the second half of 2027, and REEF Optimization 2 is expected to reach FID before the end of this year and come on late '29, early 2030.
- Record Third-Quarter Financial ResultsNormalized EBITDA was $389 million in Q3 2026, up 45% from Q3 2025, while normalized EPS was $0.29 compared with $0.04 last year. Management said the record results were driven by the Midstream segment, strong operational performance and global LPG tailwinds.
- Midstream EBITDA and Export GrowthMidstream delivered $337 million of normalized EBITDA, an increase of 65% year-over-year. Global export volumes reached a record 147,000 barrels per day across 24 VLGCs, up 11% year-over-year, while total midstream volume growth was 12%.
- Strong Montney and Asset Utilization PerformanceMontney processing increased by more than 20% year-over-year, driven by Pipestone II and higher Townsend throughput. Gathering and Processing throughput increased 11%, extraction throughput increased 40%, and Pipestone extraction volumes rose nearly 3x year-over-year. The Pipestone complex operated at 94% utilization, while North Pine operated near its 25,000-barrel-per-day fractionation capacity.
- Record RIPET and Ferndale ShipmentsRIPET shipped an average of 89,000 barrels per day across 14 ships, while Ferndale shipped 58,000 barrels per day across 10 ships during the quarter.
- Global LPG Market SupportManagement reported very high Asian LPG prices, with recent pricing approaching peak pricing. Second-half 2027 export spreads increased by more than $5 per barrel compared with three months earlier, and the prompt price was described as approximately double last year's level, with Q1 and full-year 2027 prices materially higher as well.
- Shipping Exposure MitigationAltaGas took delivery of its fourth VLGC time charter in Japan and executed agreements for two additional vessels, with deliveries anticipated in 2027 and 2029. The company said its tolling contracts, time charters and financial hedges isolate it from abnormally high shipping rates. It has also substantially hedged its remaining 2026 Baltic freight exposure.
- Strong Hedging and Tolling PositionAt quarter-end, 91% of remaining 2026 global export volumes were tolled or financially hedged, with an average FEI-to-North America spread of approximately USD 23 per barrel on non-tolled volumes. In addition, 86% of expected frac volumes were hedged at an average price of approximately USD 24 per barrel. For Q1 2027, approximately 75% of volumes were already hedged and/or tolled.
- REEF Project Nearing CompletionREEF was 90% complete, with the highest-risk work finished and the project moving into commissioning. Management maintained its target for an in-service date in the first quarter of 2027.
- Progress on REEF Jetty and Expansion PlansAll REEF jetty piles and platforms had been installed, the main loading platform and loading lines were completed, and installation of suction anchors was scheduled for the quarter. REEF Optimization 1 remained on schedule for the second half of 2027, while REEF Optimization 2 was expected to reach FID before year-end 2026.
- REEF Capacity and Ethane Export OpportunityREEF is expected to add 56,000 barrels per day of export capacity when it comes online. With REEF and Optimizations 1 and 2, global export capacity is expected to increase by more than 185,000 barrels per day to over 300,000 barrels per day by the end of the decade. AltaGas is also targeting initial ethane export capacity of 60,000 barrels per day in the early 2030s.
- Progress on Dimsdale and RIPET ProjectsDimsdale expansions are expected to add 36 Bcf of natural gas storage in the Alberta Montney. Phase 1's pipeline was complete and facilities were more than 80% complete, supporting a Q4 2026 in-service date; Phase 2 was 40% complete and its drilling program was more than 50% complete. RIPET's methanol removal project was 25% through commissioning and was expected to be completed by year-end, enhancing propane specifications.
- Constructive Utility Rate Case OutcomesAcross D.C., Maryland, Michigan and Virginia, AltaGas received approval for USD 115 million of incremental revenue with an average allowed ROE of 9.67%. Michigan and Virginia rate case settlements are expected to add USD 68 million of revenue next year. Virginia received approval for a $74 million annual revenue increase and a 9.8% midpoint ROE, while Michigan received a $33 million annual revenue increase and a 9.85% allowed ROE.
- Utility Modernization and Customer GrowthAltaGas has USD 1 billion of approved modernization rate riders. Michigan modernization programs were extended through 2031, supporting $271 million of additional capital over the next five years. The company deployed approximately $370 million in Utilities during the quarter, including $120 million for modernization, $30 million for new growth initiatives and $220 million for system betterment.
- Keweenaw Connector and SEMCO ExpansionThe Keweenaw Connector pipeline was 85% complete and remained on budget and schedule for year-end 2026 completion. It is expected to improve reliability for 14,000 SEMCO customers. AltaGas also agreed to acquire 5,800 customers and approximately USD 20 million of rate base in Michigan's Upper Peninsula, with closing expected in the second half of 2027.
- Western Canadian Supply Growth OutlookManagement expects Canadian gas supply to grow by more than 35%, or 8 Bcf per day, by 2035, with much of the growth in the liquids-rich Montney. AltaGas estimates that 8 Bcf per day of gas supply would add approximately 280,000 barrels per day of propane and butane requiring export to premium Asian markets.
- Positive Regulatory and Political Developments in British ColumbiaManagement described the change in British Columbia's political environment as extremely constructive and referenced the premier-designate's stated goals of doubling LNG by 2032 and tripling it by 2035. AltaGas said this could support additional liquids supply, further REEF phases, the ethane project and potential acceleration of investments at North Pine and Townsend.
- Capital Deployment and Project OptionalityAltaGas expects approximately $1.8 billion of 2026 capital investment, with roughly 60% allocated to Utilities and the remainder to Midstream and Corporate. Management said organic growth projects are the most attractive opportunities in its capital allocation process and that it may deploy capital faster given strong financial performance.
- Improved Leverage and Shareholder ReturnsTrailing 12-month adjusted net debt to normalized EBITDA was 4.3x, including 50% debt treatment for preferred shares and hybrids, down meaningfully from year-end 2025 and modestly below the company's 4.5x to 5x target leverage range. Management cited an average annual total shareholder return of 26% over the past five years and reiterated its focus on sustainable dividend growth.
- 2026 Guidance Tracking Toward Upper EndAltaGas expects to finish toward the high end of its recently increased 2026 guidance ranges of $2.0 billion to $2.1 billion in normalized EBITDA and $2.35 to $2.60 in normalized EPS, primarily reflecting sustained strength in the LPG export market.
MX:ALA1N Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Mar 05, 2027 | 2026 (Q4) | 9.03- | 10.35 | ― | ― |
| Oct 29, 2026 | 2026 (Q3) | 2.103.90 | 0.54 | 625.00% (+3.36) | |
| Jul 30, 2026 | 2026 (Q2) | 2.964.17 | 3.63 | 14.81% (+0.54) | |
| Apr 30, 2026 | 2026 (Q1) | 16.7117.88 | 15.32 | 16.67% (+2.55) | |
| Mar 06, 2026 | 2025 (Q4) | 10.2210.35 | 10.22 | 1.32% (+0.13) | |
| Oct 30, 2025 | 2025 (Q3) | 0.650.54 | 1.88 | -71.43% (-1.34) | |
| Aug 01, 2025 | 2025 (Q2) | 3.123.63 | 1.88 | 92.86% (+1.75) | |
| May 01, 2025 | 2025 (Q1) | 15.3115.32 | 15.32 | 0.00% (+0.00) | |
| Mar 07, 2025 | 2024 (Q4) | 9.5610.22 | 10.08 | 1.33% (+0.13) | |
| Oct 31, 2024 | 2024 (Q3) | 1.221.88 | 1.34 | 40.00% (+0.54) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed