RECEIVES PERMIT FROM B.C. OIL AND GAS COMMISSION FOR NORTH PINE FACILITY

Impact: Modestly positive, as receipt of this permit brings AltaGas one step closer to making a final investment decision (FID) on the ~$200 mm North Pine Liquids Separation Facility. AltaGas expects to make an FID on the facility in 4Q16 as it looks to develop its northeast B.C. strategy to serve Montney production. The facility is expected to link with existing AltaGas infrastructure, including the proposed ~$450 mm Ridley Island propane export terminal.

SIGNS 20 MW BATTERY STORAGE CONTRACT AT POMONA, CA

On the morning of August 16, 2016, AltaGas announced that it had won a 20 MW contract to store power on the same site as its 44.5 MW gas-fired Pomona facility in greater Los Angeles. The contract was signed with Southern California Edison (a subsidiary of Edison International, EIX-N). Under the contract, AltaGas has committed to store up to 80 MWh of dispatchable power on site (4 hours' worth of full power). AltaGas has contracted Greensmith Energy Systems to install the lithium-ion batteries an

2Q16 Beats Consensus, Raises Dividend

AltaGas reported positive results for 2Q16, beating consensus estimates, and raised its dividend payable September 15 by 6%. We expect that this will be AltaGas’s last dividend increase of 2016. By YE2016, AltaGas could reach final investment decisions on over $500 mm of new natural gas and NGL processing facilities. We have made only minimal changes to our 2016e EBITDA (-1%) and FFO/share (-6%). AltaGas has long been a solid ‘collector of assets’, finding or building good infrastructure project

2Q16 BEATS CONSENSUS, RAISES DIVIDEND

AltaGas's second quarter results beat consensus estimates.

TOWNSEND GAS PLANT ON STREAM AHEAD OF SCHEDULE

Oil and gas producer Painted Pony Petroleum Ltd. (PPY) announced on Tuesday, July 19, 2016, that AltaGas's Townsend gas plant was up and running more than 30 days ahead of schedule, processing Painted Pony's Montney gas.

Signs Deal For 600 kT/y of Propane Export

AltaGas announced on May 24th that it had signed an agreement with Astomos Energy for 600 kT/y or more of LPG gas deliveries from its proposed Ridley Island terminal.

SIGNS DEAL FOR 600 KT/Y OF PROPANE EXPORTS

Impact: Positive. With an export deal, this proposed $500 mm propane shipping terminal now appears very likely to proceed.

1Q16 Results: Adj. EPS $0.26 (FCC: $0.25)

AltaGas’ 1Q16 results were in line with expectations: EBITDA $178 mm (FCC: $182 mm); FFO/share: $0.90 (FCC: $0.91), normalized EPS $0.26 (FCC: $0.25).

1Q16 RESULTS: ADJ. EPS $0.26 (FCC: $0.25)

AltaGas's 1Q16 results were in line with expectations: EBITDA $178 mm (FCC: $182 mm); FFO/share: $0.90 (FCC: $0.91), normalized EPS $0.26 (FCC: $0.25).

ANNOUNCES CEO TRANSITION

After 21 years, AltaGas' Founder and Chairman of the Board, David Cornhill, has retired as CEO as of April 15, 2016; David Harris, the 25-year energy infrastructure veteran, has assumed the role of President and CEO. Mr. Cornhill will retain his position on AltaGas' Board of Directors and will continue his involvement in strategy development, capital allocation and stakeholder relations.

ANNOUNCES OFFERING OF $350 MM 10-YEAR NOTES

On Monday April 4, 2016, after market close, AltaGas announced its intention to issue $350 mm senior unsecured medium-term notes with a coupon rate of 4.12% that mature on April 7, 2016. The offering will be used to refinance current debt and general corporate purposes.

4Q15 Results: Adj. EPS $0.38 (FCC $0.28)

In a beleaguered industry, AltaGas is in the relatively fortunate position of having secure growth in its 2016e EBITDA (+20%), FFO (+20%) and FFO/share (+10%) versus 2015 numbers. The Company expects that ~77% of its 2016 EBITDA will come from either contracted power or regulated utilities, with half the remainder coming from take-or-pay arrangements in gas midstream that have no exposure to commodity prices or producer volumes; this is a very different company than the AltaGas of 2010 that earn

4Q15 RESULTS: ADJ. EPS $0.38 (FCC $0.28/CONS. $0.47); DOUGLAS CHANNEL LNG SHELVED

AltaGas announced 4Q15 results on February 25, 2016: EBITDA $173 mm (FCC $166 mm) Normalized EPS $0.38 (FCC $0.28) AltaGas noted that worsening world market conditions had caused it to end all further work on the Douglas Channel LNG project. AltaGas's net exposure to the project was ~17%. AltaGas expects it is fully funded for its capital expenditures in 2016 as it had $293 mm in cash at YE2015 and close to $1 billion in available room on its credit facilities.

ALTAGAS LTD. (ALA) ANNOUNCED SALE OF NON-CORE GAS ASSETS

On February 2, 2016, after market close, AltaGas announced that its wholly owned subsidiaries, AltaGas Processing Partnership and AltaGas Holdings Inc., have entered an agreement with Tidewater Midstream and Infrastructure Ltd. (TWM) to divest AltaGas Northcentral Processing Limited Partnership, a limited partnership containing gas gathering and processing assets, for $30 mm and 43.7 million Tidewater common shares. The deal is expected to close within 1Q16, dependent on satisfaction of regular

AltaGas Ltd. (ALA) Reaches Agreement To Build 40,000 bbl/d Propane Export Terminal Near Prince Rupert

We expect that the terminal will contribute $60 mm in annual EBITDA beginning in 2019 and that this terminal increases AltaGas’s DCF-NAV (8%, Atax) by 3%. Risks to our estimates include possible delays in permitting, a potential capital cost increase, as well as commercial risk, that is, the terminal does not get enough business to pay its return of capital and return on capital.

Supreme (SUP LN) - Record performance, EBITDA ~doubled

Supreme’s FY24 trading update confirms a record performance in the 12 months to 31 March 2024. Organic revenue and profit growth across all four divisions has driven Group revenue +45% YOY to £225m, with FY24 adj. EBITDA almost doubling to ‘at least £38m’, driving record levels of cash generation. Supreme is actively exploring complementary M&A, supported by a debt free balance sheet. Trading on an undemanding FY25 PE of just 6.7x, with a 3.4% yield, we believe downside risks are more than price

Morning Note – 22 April 2024

Supreme+ (SUP, House Stock at 125p) - Supreme, Supreme!

Morning Note – 25 April 2024

Vianet Group: FY24 trading update, strategic contract win

Vianet has published a positive trading update for FY24 with turnover up 7.6% to £15.18m, a 3.5 percentage point increase in gross margin YoY, and adjusted EBITA ahead of market expectations. Net debt continues to fall and closed FY24 at £1.52m (£2.1m at 30 September 2023), demonstrating strong free cash flow generation, even without the benefit of the £0.9m tax receipt received in 1H24, which augers well for a final dividend. The company reported a new contract with Wilcomatic Wash Systems, the

SP Angel Spec Sits: FY Trading Update (LTHM)

Vianet - FY24 ahead, strategic forecourt customer win

Vianet’s FY24 trading update shows FY24 revenue +1% ahead of our previous forecast, adjusted EBITA +2% ahead, EFCF and net debt +£0.6m ahead, and a strategic new customer win with prominent forecourt operator Wilcomatic. A robust FY25 pipeline and outlook leads us to reiterate our FY25E forecasts at this point, with the update highlighting: strong progress renewing and winning new customers on 3-5 year contracts as they migrate from 3G to Vianet’s advanced 4G LTE solutions; the successful integr

Headlam Group - Strategy for growth in tougher market

Headlam Group has laid out an ambitious long-term revenue target of between £900m and £1bn, as it seeks to grow its share of the UK floor coverings distributor market. Despite a challenging backdrop due to the low level of residential housing transactions, management is seeking to expand each of its sales channels: Trade Counters, Larger Customers, Regional Distribution and Europe & Other. The FY23 results reflected the more challenging environment and the group trades at a discount to its long-

Norcros (NXR LN) - Sale of Johnson Tiles UK streamlines the business and improves operating margin

Norcros has announced the sale of its Johnson Tiles UK business to the current management team for a consideration of £1.0m, with a further modest earnout based on the equity value of the business, both payable in April 2028.

Hardman & Co Insight: 2023 was an annus horribilis for Quoted UK Infrastructure and Renewable Energy

The focus of Hardman & Co Research is on the nine quoted Infrastructure Investment Companies (IICs) and on the 22 Renewable Energy Infrastructure Funds (REIFs): the stocks analysed are all members of the Association of Investment Companies (AIC). We are updating our publication of January 2023, assessing both the lacklustre share price performances during 2023 and the key issues, including interest rates, inflation and power prices. As a 31-strong group, its combined market capitalisation is no

Renewi - Solid trading and better cash generation

Renewi’s FY24 trading update was in line with management’s expectations and its improved cash generation is reassuring for investors. Attention is now likely to turn the strategic review of the UK Municipals with management stating that they remain on track to update markets by the end of June. This could lead to an exit of key liabilities and leave Renewi as an attractive circular economy investment with strong market positions and organic growth plans, which should assist in generating value,

SP Angel Morning View: Copper prices hit $9,700/t as China smelts concentrates for zero charge Tc/Rc

Hybridan Small Cap Feast - 24 April 24

24th April 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: 16 April 2024: Electric Guitar (ELEG.L) Concurrent with its Admission to trading on AIM, Electric Guitar is proposing to acquire the entire issued share capital of 3radi

LIBERUM: Ilika: CMD confirms operational progression

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