$RGSI.TO

National Bank of Canada Maintains Rockpoint's Outperform Rating, C$35 Price Target

National Bank of Canada retained Rockpoint Gas Storage (RGSI.TO)'s outperform rating and C$35 price target, according to a note published Sunday.The bank recently hosted institutional investor meetings with Rockpoint executives led by Chief Executive Officer Toby McKenna.The meetings reaffirmed National Bank's bullish investment stance on the company's strategic positioning and priorities, which are oriented toward recontracting existing assets under increasingly attractive terms, the bank said.Rockpoint is also executing accretive organic growth opportunities and building dry powder for M&A and share buyback potential, National Bank added.The company's $35 price target is based on a risk-adjusted dividend yield of 4.00% applied to the estimated 2028 dividend of US$0.95 per share, a 12.0x multiple of the bank's 2028 Free-EBITDA and discounted cash flow per share valuation of US$25.00.Rockpoint traded at C$28.69 per share at last look Tuesday on the Toronto Stock Exchange.Price: $28.69, Change: $+0.04, Percent Change: +0.14%

CIBC Increases Rockpoint's Price Target to C$34.00 from C$33.00 Following Fiscal Q4 Results

CIBC Capital Markets on Thursday maintained its outperformer rating on the shares of Rockpoint Gas Storage (RGSI.TO) while raising its price target to C$34.00 from C$33.00 following the company's fiscal fourth-quarter results.RGSI posted solid results for its fiscal fourth quarter, with the company delivering a modest beat. The company booked an adjusted gross margin of $128.7 million in the period, broadly in line with consensus and modestly above CIBC's estimate.The company's adjusted EBITDA of $109.2 million exceeded the consensus forecast by 3%.Alongside the modest beat, CIBC noted RGSI's favorable business mix, with stronger-than-expected contributions from short-term storage revenues relative to optimization activity."With a constructive FY2027 take-or-pay contracting outlook, the company continues to execute on increasing contributions from its fee-for-service segments," CIBC said.Price: $29.78, Change: $-0.12, Percent Change: -0.40%

Rockpoint Q4 and FY Results Impacted By Brookfield 'Legacy Incentive Plans'; Co Says In a "Position of Strength" For FY27 and Lifts Dividend

Rockpoint Gas Storage (RGSI.TO) reported lower net earnings year over year in the fiscal fourth quarter of 2026, when including the impact of Brookfield's 'Legacy Incentive Plans', but said it has entered fiscal 2027 in a "position of strength" and announced its first dividend increase.Among Q4 highlights, Rockpoints reported net earnings were US$24.4 million, down from $57.0 million. But the company said net earnings would have been $76 million for the quarter excluding the compensation costs impact related to Brookfield's legacy long-term incentive plan agreements. These costs were fully funded by Brookfield Infrastructure, resulting in no liquidity impact to Rockpoint or class "A" shareholders, it noted.In Q4, Adjusted EBTIDA was $109.2 million, down from $112.7 million, while distributable cash flow was $74.8 million, or $0.56 per share, down from $78.0 million, or $0.59 per share.Meanwhile the company said financial results for fiscal 2026 benefitted from higher Take-or-Pay revenues and strong performance from the Optimization business. While ToP revenues were supported by rising contracting rates, Optimization revenues were driven by elevated natural gas price volatility."Fiscal 2026 was another milestone year for Rockpoint where the company continued to execute its commercial strategy, expanded Fee-for-Service cash flows, and delivered record financial results," said Toby McKenna, CEO. "Rockpoint has grown its distributable cash flow for the fifth consecutive year and is pleased to announce its first dividend increase. The company has entered fiscal 2027 in a position of strength, supported by a high quality, irreplicable asset base that is well positioned to benefit from improving business fundamentals, rising demand for energy reliability, and the growing strategic importance of storage within the energy infrastructure value-chain."On the dividend, Rockpoint's board of directors has declared a quarterly cash dividend of $0.2310 per class A common share for the fourth fiscal quarter. The dividend is expected to be paid on June 30 to holders of class A common shares of record as at the close of business on June 15. The dividend represents a 5% increase from the prior quarterly rate and reflects the high end of Rockpoint's long-term dividend growth target range of 3% to 5%.Shares in Rockpoint fell 1.9% yesterday amid losses for the broader market.

Earnings Flash (RGSI.TO) Rockpoint Gas Storage Reports Q4 Net Earnings US$24.4M Vs $57 a Year Earlier; Increases Quarterly Dividend