Morningstar | CKI Distraction Gone; APA Focuses Back on Growth
APA Group is a good-quality infrastructure stock with astute internal management. It owns an unparalleled network of gas transmission and distribution infrastructure assets across Australia. As it faces less regulation than most of its peers, it achieves higher returns, particularly from organic expansion that increases use of the existing network. Unfortunately, industry reform threatens. Australian household and business utility bills are rising strongly from already high levels, and governments are responding with sweeping measures. For APA, this includes gas market rule changes attacking the asymmetric information advantage helping it secure excess returns. This will improve the negotiating position of customers, and will be backed up by binding arbitration. The Federal Treasurer blocked Cheung Kong's AUD 11 bid for APA.APA Group's principal activities are the ownership and operation of energy infrastructure assets and businesses, including energy infrastructure, primarily gas transmission businesses located across Australia; asset management and operations services for the majority of Co.'s energy investments and for third parties; and energy investments in listed and unlisted entities. Co. comprises the following reportable segments: Energy Infrastructure, Asset Management, and Energy Investments.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
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