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BASFY Secures Butane Supply Through Long-Term Deal From AltaGas

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Key Takeaways

  • BASFY signed a long-term butane supply deal with AltaGas to support its production operations.
  • The deal enables BASFY to diversify feedstock and access faster shipping routes to Asia.
  • AltaGas gains a high-quality customer and reduces export platform risk through the agreement.

BASF SE (BASFY - Free Report) entered into an agreement with AltaGas Ltd. to secure the supply of butane that will be used as feedstock in BASF’s rising production footprint in Asia. BASF Intertrade AG signed the deal, agreeing to procure butane via AltaGas and Royal Vopak’s Ridley Island Energy Export Facility (REEF), which is expected to be completed by the end of 2026. The large-scale facility is an open-access terminal for liquefied petroleum gas and bulk liquids that is currently under construction.

The agreement will enable BASFY to source competitive and reliable butane from Western Canada while also diversifying its cracker feedstock portfolio in the Asia Pacific. With AltaGas’ strong infrastructure, BASF will not just have shorter lead times and reliable shipping deliveries to Asia but also strengthen its ties with Canada and Asia. The partnership with AltaGas will allow BASF to strengthen its commitment to supply chain diversification.

For AltaGas, the agreement de-risks its export platforms. With the addition of BASFY to its customer base of more than 70 Canadian producers and aggregators and Asian downstream customers that utilize AltaGas’ open access export terminals, AltaGas joins forces with a high-quality counterparty. With a diversified customer base and recognition of its structural advantage of exporting, AltaGas is also expected to benefit from the agreement.

BASFY stock has gained 15% over the past year against the industry’s 13% decline.

Zacks Investment Research
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BASFY’s Zacks Rank & Key Picks

BASFY currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Basic Materials space are Royal Gold, Inc. (RGLD - Free Report) ,Coeur Mining, Inc.(CDE - Free Report) and Carpenter Technology Corporation (CRS - Free Report) . While RGLD and CDE currently sport a Zacks Rank #1 (Strong Buy) each, CRS carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for RGLD’s current-year earnings is pegged at $7.47 per share, indicating a 42% year-over-year increase.Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 9%. RGLD’s shares have gained 17.5% in the past year.

The Zacks Consensus Estimate for CDE’s current-year earnings is pegged at 69 cents per share, implying a 283.3% year-over-year surge. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing once, with an average surprise of 136.2%.

The Zacks Consensus Estimate for CRS’ fiscal 2025 earnings is pegged at $7.28 per share, indicating a rise of 53.6% from year-ago levels. The company’s earnings beat the consensus estimate in each of the trailing four quarters. Its shares have soared 104.2% in the past year.

 

 

 


 

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