APA Group is an owner and operator of Australian energy infrastructure assets and the company sits comfortably as the largest listed infrastructure company on the ASX and in the ASX 100 index.
It is often the goto company for investors looking for a big well known Australian company which pays consistent dividends.
[wpdatatable id=250]
APA Group Pipeline Network
APA pipeline network shows it owns plants and a distribution network which is unparalleled across Australia linking the major gas deposits with the population centers and export nodes.
Leveraged to the Gas Sector
APA is literally leveraged to the Gas sector where the volumes going through its pipeline has been increasing as the secular shift continues from coal to gas. The company also benefit from the increase in LNG exports where Australia is now a top 3 gas exporter in the world through the LNG terminals owned by listed players like Origin and Santos.
The infrastructure nature of the business means the cash flows are consistent and given the strength of its network it looks like there are ample opportunities for management to growth the dividends organically.
APA Capital Ratios
The recurring nature of the earnings means the group’s balance can absorb a higher level of debt a normal. Although the company is listed, the overall gearing is conservative.
APA Group US Expansion
One point the management consistently highlighted is the going exploration of US expansion plans. This is something worthwhile to keep an eye on as there has been a litter of Australian companies expanding overseas and ultimately failing to meet the original expectation and burned up a heap of capital.
The upside is the current environment could mean the opportunities are cheaper and any transaction will be paid via a combination of equity and debt.
APA Dividend History
APA dividend history shows it has continually grown the dividends in the last 5 years albeit under a falling interest rate environment.
[wpdatatable id=249]
APA Dividend Timing – dividends are paid in September and March each year.