FTAI Infrastructure (FIP) 2024 Southwest IDEAS Conference summary

Strategic transformation and business model

• Transitioned to a pure-play infrastructure company after splitting from aerospace, resulting in significant stock appreciation and removal of K-1s.

• Focuses on building infrastructure assets at lower multiples and growing them for higher returns over time.

• Emphasizes long-term investment horizons, with infrastructure projects requiring 18–24 months or more to realize value.

• Current annualized EBITDA is $148 million, with $220 million locked in through executed contracts and potential to reach $305 million as negotiations mature.

• Three major accretive financings are planned: $1.05 billion at Long Ridge, $300 million at Repauno, and $600 million at Holdco to refinance expensive debt.

Asset portfolio and operational highlights

• Transtar, a short-line railroad acquired for $640 million, is diversifying away from U.S. Steel and targeting increased third-party business to enhance valuation multiples.

• Jefferson terminal in Texas, with Exxon and Saudi Aramco as major customers, has reached an inflection point and is expanding into LPG exports and waxy crude transloading.

• Repauno terminal, acquired for $25 million, is being developed for underground natural gas liquids storage, offering significant cost and EBITDA advantages.

• Long Ridge power plant is the most efficient in the PJM system, burning 5% hydrogen, and is positioned to benefit from rising capacity payments and hyperscaler demand.

• All major asset-level debt is non-recourse, with favorable long-term municipal financing at Jefferson and plans to refinance higher-cost debt.

Growth initiatives and forward-looking statements

• Transtar aims to reduce reliance on U.S. Steel to 50% and could reach $130–$145 million in EBITDA by 2027, depending on the Nippon Steel deal.

• Repauno's underground storage permits are expected to be finalized by December, potentially attracting acquisition interest from major industry players.

• Long Ridge could increase capacity from 485 MW to 505 MW with minimal investment, pending regulatory approval.

• Three accretive financings are expected to close within three to four months, improving the company's leverage and EBITDA profile.

• Management plans to use proceeds from asset sales to pay down debt and pursue tuck-in acquisitions, particularly in the short-line railroad sector.