Rockpoint Gas Storage (RGSI) investor relations material

Executive summary

• Achieved strong progress on strategic priorities, including maximizing asset value, growing contracted fee-for-service cash flows, and advancing capital-efficient brownfield and battery storage projects.

• Fee-for-service gross margin increased 7% over the last 12 months, with long-term take-or-pay gross margin up 20% due to higher storage rates and contracted volumes.

• Secured a significant long-term storage agreement post-quarter-end and repurchased 369,000 Class A shares for CAD 10.5 million between June and July 2026, reflecting disciplined capital allocation.

• Strong renewal results in California and early contracting in Alberta, with a 30% year-over-year increase in Alberta take-or-pay volumes for fiscal 2028.

• Warwick Battery Storage and Gas Storage Expansion projects remain on budget and on schedule, with regulatory approvals and capacity increases planned.

Financial highlights

• Adjusted gross margin for the quarter was $93 million, down from $95.8 million year-over-year, driven by higher take-or-pay revenue but lower optimization revenue.

• Net earnings for the quarter were $57 million, up from $48 million, benefiting from lower financing costs.

• Distributable cash flow totaled $48.4 million, up from $46.6 million year-over-year.

• Adjusted EBITDA was $74.9 million, compared to $77.1 million in the prior period.

• Fee-for-service gross margin represented 84% of adjusted gross margin for the last twelve months, consistent with the prior year.

Outlook and guidance

• Well positioned to grow long-term fee-for-service and optimization cash flows, supported by strong market fundamentals and energy market volatility.

• Confident in delivering medium-term take-or-pay gross margin contribution of 60%.

• Targeting 5%-6% distributable cash flow growth and 4%-5% distributable cash growth from capital-efficient projects, plus an attractive dividend yield.

• Committed to delivering a competitive annual total return of 15% over the long-term.

• Expects continued reinvestment of excess distributable cash flow into organic capital projects, strategic investments, and opportunistic share buybacks.