Rockpoint Gas Storage (RGSI) Q3 2026 earnings summary

Executive summary

• Achieved record Q3 results with adjusted EBITDA of $116 million, driven by asset quality, business model optionality, and strong optimization performance amid market volatility.

• Net earnings for the quarter were $88 million, up 52% year-over-year, with distributable cash flow reaching $82 million, a 34% increase.

• 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.

Financial highlights

• Adjusted gross margin for Q3 was $133 million, up 18% year-over-year, with take-or-pay gross margins increasing 27% and optimization gross margin rising 30%.

• Adjusted EBITDA reached $116 million for the quarter (up 20%) and $389 million for the last twelve months (up 18%).

• Distributable Cash Flow was $82 million for the quarter (up 34%) and $255 million for the last twelve months (up 4%).

• Net earnings for the quarter were $88 million; last twelve months net earnings up 7% to $240 million.

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

Outlook and guidance

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

• High inventory levels and wider seasonal spreads in Alberta are positive for future profitability.

• Recent take-or-pay contract executions and ongoing brownfield projects, including storage and battery expansions in Alberta, support future growth.

• Management anticipates continued growth in natural gas storage demand due to LNG exports, renewable power intermittency, and industrial consumption.

• Q4 expected to return to normal operations after Q3 optimization outperformance.