Rockpoint Gas Storage (RGSI) Q4 2026 earnings summary

Executive summary

• Achieved record annual adjusted EBITDA of $386 million and distributable cash flow of $252 million, driven by higher take-or-pay revenues and strong optimization business performance.

• Distributable cash flow grew for the fifth consecutive year, supporting a 5% quarterly dividend increase at the upper end of the long-term target.

• Entered fiscal 2027 with strong momentum and a contracted revenue backlog of $947 million, up 6% year-over-year, supported by robust market fundamentals and rising energy market volatility.

• Received TSX approval for a normal course issuer bid, providing flexibility for opportunistic share repurchases.

• Maintained a strong safety record with zero Lost Time Incident Frequency for the fourth consecutive year.

Financial highlights

• Annual adjusted gross margin reached $459 million, up from $412 million in the prior year, driven by higher realized storage rates.

• Net earnings totaled $207 million, compared to $209 million last year; excluding Brookfield compensation costs, net earnings would have been $259 million.

• Adjusted EBITDA was $386 million, up from $339 million last year; distributable cash flow rose to $252 million from $235 million.

• Fee-for-service gross margin represented 83% of adjusted gross margin for the year.

• Net debt to Adjusted EBITDA leverage was 3.1x, below the long-term target of 3.5x.

Outlook and guidance

• Fiscal 2027 expected to be another strong year, supported by constructive market fundamentals, increased energy market volatility, and rising demand for energy reliability.

• Targeting a take-or-pay gross margin contribution of 60% over the medium term.

• Committed to delivering a competitive annual return of 15% over the long term, with 5%-6% DCF growth from storage contract rates and 4%-5% from organic growth projects.

• Anticipates secular tailwinds from LNG exports, power demand, and data center growth.

• Lower natural gas prices and high inventory levels are expected to support wider seasonal spreads and optimization opportunities.