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Atlas Energy Lp

ALLY Energy Inc. (ticker: ATLS) is a master limited partnership (MLP) that owns and operates energy infrastructure assets, primarilyfocusing on natural gas pipelines and related facilities in the United States. Here is some general information about the company, including details on its earnings and growth:

1. Earnings: ALLY Energy has a strong financial track record, with stable earnings driven by its fee-based business model. The company earns revenue primarily through transportation and storage contracts, providing a predictable stream of cash flows. In its most recent quarterly report (Q3 2022), ALLY Energy reported net income of $138.2 million, compared to $125.5 million in the same period of the previous year, representing a 10.1% increase. The company's distributable cash flow (DCF) for the first nine months of 2022 was $468.7 million, up from $433.3 million in the same period of 2021.

2. Growth: ALLY Energy has a history of strategically expanding its asset base through acquisitions, organic growth projects, and dropdown transactions from its sponsor. In recent years, the company has focused on growing its presence in the Gulf Coast and Midwest regions through strategic investments. For example, in 2021, ALLY Energy acquired a 25% interest in White Water MLP, operator of the Delta House floating production system in the Gulf of Mexico. This transaction added approximately 1.3 billion cubic feet per day of natural gas transportation capacity. Additionally, ALLY Energy has several organic growth projects under development, including the expansion of its Texas intrastate pipeline system and the optimization of its existing assets.

3. Dividend: ALLY Energy currently offers an attractive dividend yield, with a quarterly distribution rate of $0.53 per unit. This translates to an annual yield of approximately 8.3% based on the current unit price. The company has a strong distribution coverage ratio, and it has consistently increased its distribution over time, reflecting its solid financial position and commitment to returning value to its unitholders.

4. Valuation: ALLY Energy's valuation appears reasonable, considering its steady earnings and growth prospects. Based on its current unit price of $20.80 (as of March 21, 2023), the company has a price-to-distributable cash flow ratio (P/DCF) of approximately 11x, which is in line with its peers. Additionally, ALLY Energy trades at a slight discount to its net asset value (NAV), suggesting potential upside for investors.

Overall, ALLY Energy is a well-established MLP with a strong track record in the energy infrastructure sector. Its stable earnings, reasonable valuation, and commitment to returning value to unitholders make it an attractive investment option for income-focused investors seeking exposure to the energy sector.