Rockpoint Gas Storage (RGSI) Q2 2027 earnings summary

Executive summary

• Strong Q2 and LTM performance reflected higher Take-or-Pay (TOP) and Optimization revenues; LTM Adjusted EBITDA was $386.0 million and DCF was $254.1 million.

• First public-company year delivered 15% TOP revenue growth, 9% DCF growth, 6% contracted Fee-for-Service backlog growth, and a 5% dividend increase.

Financial highlights

• Q2 Adjusted Gross Margin was $105.2 million vs. $101.3 million; Adjusted EBITDA was $85.5 million vs. $83.2 million.

• Q2 DCF was $48.7 million vs. $48.0 million; LTM DCF was $254.1 million vs. $234.1 million, up 9%, supported by higher margin and lower interest expense, partly offset by higher current tax.

• Q2 net earnings were $82.8 million vs. $45.8 million, mainly reflecting an unrealized interest-rate swap gain that reduced net financing costs; LTM net earnings were $252.1 million vs. $209.2 million.

• LTM Adjusted Gross Margin was $460.2 million vs. $444.3 million; Adjusted EBITDA was $386.0 million vs. $369.6 million.

Outlook and guidance

• Brownfield projects may require up to $150 million through FY2029, with estimated build multiples of 4x–6x; long-term annual total shareholder return target is 15%, assuming 4%–5% annual EBITDA growth from higher storage rates.

• Medium-term TOP target is 60% of Adjusted Gross Margin; TOP reached 52% over the last 12 months, from 29% in FY2023 and 51% in FY2026.

• Kirby Hills is expected to add ~2 Bcf of working capacity for $2 million and enter service in Q1 FY2028; the dehydration project has a payback of less than one year.

• Warwick Battery Storage, an 11 MW project costing $10.5 million, remains on budget and schedule for service in Q2 FY2028, with design and engineering ~60% complete; Warwick expansion is on track to add 3.5 Bcf by Q3 FY2027, with a second phase potentially bringing total incremental capacity to ~5 Bcf in FY2028.

• CPUC approval for a California change of control is expected in H1 2027; the regulator has no fixed decision timeline, and any subsequent transaction is at Brookfield’s discretion.