Rockpoint Gas Storage (RGSI) Q3 2026 earnings summary

Executive summary

• Achieved record Q3 results with adjusted EBITDA of $116 million, driven by higher take-or-pay revenues, optimization business performance, and strong asset quality amid market volatility.

• Fee-for-service gross margins grew 14% year-over-year, supported by take-or-pay and short-term storage businesses.

• Declared a quarterly dividend of $0.22 per class "A" common share, reflecting confidence in ongoing cash flow generation.

• Completed IPO in October 2025, acquiring a 40% interest in the business, with the remaining 60% held by Brookfield.

• Macro outlook remains positive due to growing global natural gas demand and increasing market volatility.

Financial highlights

• Net earnings for the quarter rose 52% year-over-year to $88 million; adjusted EBITDA reached $116 million, up 20% from the prior year.

• Adjusted gross margin for Q3 was $133 million, up 18% year-over-year.

• Distributable Cash Flow reached $82 million for the quarter, up 34% year-over-year.

• Fee-for-service gross margin as a percentage of Adjusted Gross Margin was 83%, consistent with the prior period.

• Take-or-pay gross margins increased 27% year-over-year; optimization gross margin rose 30%.

Outlook and guidance

• Fiscal 2027 outlook reaffirmed, with 5%-6% DCF growth target supported by higher rates and contracted revenue.

• Higher natural gas inventory carry-over is expected to reduce injection risk and operating costs, providing commercial optionality for fiscal 2027.

• Recent take-or-pay contract executions support gross margin outlook for fiscal 2027.

• Expect continued volatility and higher reliance on storage services as LNG Canada ramps up.

• Ongoing brownfield projects, including storage expansion and battery storage in Alberta, are expected to support future growth.