Rockpoint Gas Storage (RGSI) Q2 2026 earnings summary

Executive summary

• Achieved a strong second quarter with record results, highlighted by the completion of an oversubscribed IPO, the largest on the TSX since 2022, reflecting robust investor confidence and a milestone for the company.

• Maintained a strong safety record with no serious incidents, underscoring a core commitment to employee safety.

• Closed the largest Canadian IPO on the TSX since May 2022, acquiring a 40% interest in the business, with Brookfield Infrastructure retaining 60%.

• Benefited from favorable market conditions, including increased volatility and lower summer gas prices, driven by LNG Canada's startup and inelastic production.

• Declared inaugural quarterly dividend of $0.22 per share, payable December 31, 2025.

Financial highlights

• Adjusted gross margin for the last twelve months reached $444 million, up 8% year-over-year, with a 13% increase in take-or-pay gross margin and a 25% increase in realized optimization gross margin.

• Weighted average take-or-pay fees rose to $2.32 per decatherm for the six months ended September 30, 2025, from $1.86 the prior year.

• Adjusted EBITDA for the last twelve months was $370 million, a 9% increase year-over-year, with EBITDA margin at 83%.

• Second quarter Adjusted Gross Margin was $101 million, up 22% year-over-year, and Adjusted EBITDA was $83 million, up 27% year-over-year.

• Distributable cash flow was $234 million for the last twelve months, flat year-over-year, while Q2 distributable cash flow increased 6% year-over-year to $48 million.

Outlook and guidance

• On track to meet full-year targets for adjusted gross margin, adjusted EBITDA, and distributable cash flow for fiscal year ending March 31, 2026.

• Open take-or-pay contract season for fiscal 2027 is seeing strong early customer engagement in Alberta and California.

• Brownfield capital projects to increase capacity and deliverability are advancing, with $50–$150 million targeted for near- to medium-term deployment.

• Long-term fundamentals for gas storage remain strong, with demand growth from LNG and AI-driven data centers.

• La Niña conditions expected to persist through February 2026, potentially increasing market volatility.