Exports are printing. The jetty is not done yet
AltaGas Ltd. (TSX: ALA) reported second-quarter 2026 results on July 30. The company exported a record 144,420 barrels per day of LPG to Asia across 23 very large gas carriers, a 13 percent year-over-year increase. Consolidated export volumes included about 84,800 bbl per day from 13 cargoes at RIPET and about 59,600 bbl per day from 10 cargoes at Ferndale.
Net income applicable to common shareholders was $288 million, or 92 cents per diluted share, versus $175 million and 58 cents a year earlier. Revenue was $3.8 billion. AltaGas raised 2026 EBITDA guidance to $2.0 billion to $2.1 billion and lifted capital spending guidance to $1.8 billion from $1.7 billion.
Construction of the Ridley Island Energy Export Facility is about 85 percent complete. Onshore work has been ahead of plan, but in-water jetty construction faced weather and marine delays. AltaGas increased REEF's capital cost estimate by 12 percent to approximately $1.5 billion and now expects commercial operations before the end of the first quarter of 2027, not second-quarter 2027 as previously targeted.
CEO Vern Yu said the partnership lost more than 450 rig days to extreme weather, swells, and marine mammal activity since in-water work began in fall 2024.
Neutral read
ALA is on the listed midstream list. Banks were skipped. One hundred forty-four thousand four hundred twenty barrels per day of exports and a Q1 2027 REEF slip are the facts. Write Asia LPG demand as the earnings driver and REEF as the capital risk. Watch whether in-water work actually finishes this month and whether Tourmaline's Groundbirch-Monias volumes reach the REEF rail link on schedule.