Stockwatch...Telus Management's Stance on the Dividend

Stockwatch...Telus Management's Stance on the Dividend

"The most valuable commodity I know of is information."

Gordon Gekko

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1. The Extended Dividend Growth Program

The most concrete evidence of their commitment is the formal extension of their multi-year program:

Timeline Extended: In May 2025, Telus announced the extension of its dividend growth program, targeting annual increases from 2026 through the end of 2028.

Target Growth Rate: The planned annual increase for this new period is set to be in the range of 3% to 8% (a slight moderation from the previous 7%–10% range ending 2025).

Commitment to Sustainability: CEO Darren Entwistle emphasizes that this program reflects their "unwavering commitment to delivering superior value to our shareholders and building on our consistent track record of delivering on our multi-year dividend growth program."

2. The Free Cash Flow (FCF) Rationale

Management acknowledges the high payout ratio but insists the dividend's affordability is tied to a future, improving Free Cash Flow (FCF) profile.

Prospective Payout Target: Their long-term guideline for the dividend payout ratio is 60% to 75% of prospective FCF. This acknowledges that the current (historical) FCF payout ratio is high, but they believe it will fall within this range in the coming years.

The FCF Expansion Drivers: They project a "meaningful resulting free cash flow expansion" driven by two main factors:

Moderating Capital Expenditures (Capex): Telus is completing its major, costly build-out of its PureFibre and 5G networks. As this capital-intensive phase winds down, capex will drop, directly increasing FCF.

Growth in Tech/Health: Strong and growing profitability from their diversified divisions, specifically TELUS Health and TELUS Agriculture & Consumer Goods, is expected to contribute increasing Adjusted EBITDA.

3. Deleveraging and DRIP Reduction

Management has put forward a clear plan to address the debt and high payout metrics that concern analysts:

Debt Target: They are "squarely on track" to achieve their target Net Debt to EBITDA leverage ratio of 3.0x by 2027.

DRIP Discount Elimination: To strengthen the balance sheet and signal confidence, they are systematically stepping down and eliminating the discount on their Dividend Reinvestment Plan (DRIP) by the end of 2027. (Currently, the DRIP often offers a discount, which effectively issues new shares and dilutes existing holders to fund the dividend. Eliminating the discount is a sign of improved financial strength).

Summary of Management's Message

In short, Telus senior management is communicating that the dividend is safe and has a defined growth trajectory because:

1) They have a formal plan (extended through 2028).

2) They are transitioning from an intensive investment phase (high capex) to a harvest phase (high FCF).

3) They have a clear plan to reduce debt and remove the DRIP discount, which are the main sources of investor concern.

The debate essentially boils down to whether investors trust the management's ability to execute this transition and hit those key FCF and deleveraging targets by 2027/2028.

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Darren Entwistle, President and CEO (Since 2000)

Mr. Entwistle is the longest-serving CEO in the global telecommunications industry and is viewed as the architect of Telus's transformation and long-term strategy.

1. Transformation and Total Shareholder Return (TSR)

Past Performance: Since he took the helm in 2000, Telus has transformed from a regional telephone utility serving Western Canada into a global communications and information technology leader.

Shareholder Value: Under his leadership, Telus has generated a strong Total Shareholder Return (TSR). As of recent data, this return has been significantly higher than the return from the TSX and the MSCI World Telecom Services Index, demonstrating a successful focus on shareholder value over a long period.

Key Decisions: He made "big bets" early on in the 2000s on wireless and data services as the future of the company, which led to the massive network investments (capex) that are now central to the dividend debate.

2. Strategic Investment (The Capex Phase)

Long-Term View: Mr. Entwistle has driven a strategy of aggressive, generation-spanning investment in globally leading broadband networks (PureFibre and 5G). This explains the consistently high capital expenditures Telus has made.

Non-Telecom Diversification: He personally championed the company's entry into the healthcare technology market (TELUS Health) and the agriculture/consumer goods segments. This strategic diversification is the foundation for the company's current Free Cash Flow (FCF) expansion plans.

Copper Network Decommissioning: He has consistently prioritized the decommissioning of Telus’s older copper networks, replacing them with fibre to achieve "deeper cost savings" and a "stronger competitive position."

3. Dividend and Culture Commitment

Consistent Dividend Growth: The multi-year dividend growth program, which began in 2004, is a hallmark of his tenure. He has a track record of continuously raising the dividend, with 34 increases since 2004.

Culture: He is widely noted for building a strong, customer-centric corporate culture, which management links directly to its operational success and financial results. He even received his entire salary in Telus shares indefinitely from 2010 to 2015, and more recently announced he would do so again, signaling strong personal confidence in the long-term stock value.

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Doug French, Executive Vice-President and CFO (CFO Since 2016)

Mr. French has been with Telus since 1996 and has held the CFO role since 2016. His experience is deeply rooted in the financial mechanics of the company's growth.

1. Financial Management Expertise

Deep Experience: With over 30 years of financial management experience and 20 years in the Canadian telecommunications industry, he has been involved in many of the company's major financial events, including its expansion from a regional to a national carrier.

Track Record on Reporting: Under his leadership, Telus has consistently received multiple awards for the quality of its external reporting, suggesting a high standard for transparency and disclosure.

Key Events: He has held numerous key roles associated with capital market activities, including the issuance of billions of dollars in debt and equity, which directly relates to the company's current debt load and financing strategy.

2. Executing the FCF Strategy

Synergy Realization: As CFO, he oversees the realization of cost and revenue synergies from major acquisitions, such as LifeWorks (now part of TELUS Health). Management has reported achieving significant milestones on the projected synergy goals under his direction.

Deleveraging Plan: He is the key executive responsible for delivering the current financial targets, including the $2.5 billion capital expenditure goal for 2025 and the specific plan to achieve a Net Debt to EBITDA ratio of 3.0x by 2027 by utilizing strategies like asset monetization (e.g., wireless towers) and eliminating the DRIP discount.

In summary, the management team has a proven, long-term history of being highly strategic, focused on long-term capital investment for growth, and aggressively committed to dividend increases as a core pillar of shareholder returns. The challenge they currently face (high debt and high payout ratios) is a direct, intended consequence of their successful, but costly, multi-decade strategy to build out industry-leading networks and diversify the business.

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Telus Dividend Safety: The Three-Pillar Strategy

1. ⬆️ EBITDA Growth and Non-Telecom Synergies

The Goal: To generate a rapidly growing profit stream from non-telecom businesses to raise overall profitability (Adjusted EBITDA).

The Evidence: The TELUS Health (LifeWorks) integration has been a major success, delivering $417 million in combined annualized synergies (nearly 2.5 times the original target).

The Impact: This successful integration and the growth of TELUS Health and TELUS Agriculture drive high-margin revenue, which improves the company's overall financial health and increases the cash available from operations.

2. ⬇️ Moderating Capital Expenditures (Capex)

The Goal: To dramatically reduce the amount of cash spent on building out networks, thereby boosting Free Cash Flow (FCF).

The Evidence: Management is transitioning from an intensive investment phase (with Capex peaking around $3.65 billion) to a harvest phase, targeting a sharp reduction in consolidated Capex to approximately $2.5 billion in 2025.

The Impact: Since FCF is calculated by subtracting CapEx, a $1+ billion reduction in CapEx directly translates to a massive increase in FCF, providing the liquidity needed to cover the dividend payments. Management is guiding toward a strong $2.15 billion in FCF for 2025.

That brings us to the core investment thesis for Telus. The safety of the dividend comes down to which side of the argument—the current financial pressure or the future FCF plan—you believe will prevail.

3. ✅ Deleveraging and Balance Sheet Discipline

The Goal: To lower the high debt load that currently concerns credit rating agencies and investors, improving the overall risk profile.

The Evidence: They are "squarely on track" to hit a Net Debt to EBITDA ratio of 3.0x by 2027. This plan is supported by:

The increased FCF from points 1 and 2.

Asset Monetization (e.g., selling wireless towers).

The systematic removal of the discount on their Dividend Reinvestment Plan (DRIP) by the end of 2027, which reduces the issuance of new, dilutive shares.

The Impact: Successful deleveraging reduces interest expense and lowers the financial risk, making the dividend more secure in the long run.

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Final Verdict

The dividend is currently under pressure from high historical payout ratios and debt, but the management team, with a proven track record under CEO Entwistle, has a credible, specific, and measurable three-year plan (2026-2028) centered on FCF expansion and deleveraging to ensure its sustainability and targeted growth (3% to 8% annually).

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Update as of December 6, 2025

⏸️ Dividend Growth Pause

• Growth Program Suspended: On December 3, 2025, TELUS announced its intention to pause its dividend growth program (semi-annual increases) until the company's share price better reflects its growth prospects.²

• Current Payout Maintained: The company will continue to pay the current quarterly dividend of $0.4184 per share.³

• Goal: The primary reasons for this pause are to bolster the balance sheet and reduce its net debt-to-EBITDA leverage ratio.⁴ The company is aiming to reduce this ratio to about 3-times by the end of 2027.⁵

📈 Future Outlook (Focus on Cash Flow)

While the dividend growth is paused, the company has provided a positive outlook on its cash generation, which is key for future dividend potential:⁶

• Free Cash Flow (FCF) Growth: TELUS is forecasting a minimum 10% compounded annual free cash flow growth rate from 2026 through 2028.⁷

• Free Cash Flow Targets:

  • 2025: Approximately $2.15 billion (in line with prior targets).⁸

  • 2026 Preliminary Target: $2.4 billion.⁹

• Payout Ratio: Their long-term guideline for the Common Share dividend payout ratio remains 60% to 75% of free cash flow on a prospective basis.¹⁰

📉 Changes to the DRIP

The company is also phasing out the discount on its Dividend Reinvestment Plan (DRIP) to reduce share dilution:¹¹

Time Period	Discount Rate
Current	2%
Feb & May 2026 Dividends	1.75%
Aug & Nov 2026 Dividends	1.5%
2027 Dividends	1%
Starting 2028	0% (No discount)

💡 Analyst Reaction

Telecom analysts have largely reacted favourably to the announcement, viewing it as a determined action by management to stabilize the balance sheet and improve the dividend payout ratio coverage, which they believe will be positive for the stock at current levels.

In summary, the dividend is secure at its current level, but the company has halted the expected growth to focus on debt reduction and increasing free cash flow, which could lead to a stronger financial position and potentially a resumption of dividend growth down the road.¹²

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Source

Google Gemini

Real Assets Win in this Environment

Real Assets Win in this Environment 

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An excerpt from Brookfield Corp's letter to the shareholders for the 3rd quarter of 2025. Bruce Flatt is always essential reading

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Over the past 15 years, governments have responded to successive economic slowdowns with large fiscal programs. The global financial crisis, the sluggish growth of the mid-2010s, and the pandemic each led to expansive interventions. Together, those interventions contributed to a very significant buildup of public debt. The combination of large, ongoing government deficits and “higher” interest rates has made this fiscal trajectory increasingly unsustainable. 

Global public debt is heading toward 100% of GDP. In the U.S., that figure is about 125%, up from roughly 60% before the global financial crisis—and the cost of servicing this debt has almost doubled since 2020. Fiscal spending remains high while real growth across developed economies has slowed to less than 2% annually. With borrowing costs rising and growth subdued, debt ratios will continue to climb unless governments balance their budgets, which few countries seem to be able to do. 

For policymakers, there are a few paths to stabilize the debt burden. The most constructive outcome would be faster economic growth that outpaces the growth of debt, allowing leverage ratios to decline naturally over time. Artificial Intelligence and broad innovation can be the catalysts that drive productivity gains and support a growth-led reduction in debt. A second alternative path is reduced fiscal spending, but the political appetite for austerity seems to have dramatically diminished across much of the developed world. As a result, broad adoption of fiscal responsibility does not seem likely.  

The third alternative for policymakers is to quietly manage interest rates below inflation and gradually reduce debt burdens. We are already seeing this dynamic play out across the globe. Central banks are employing forms of yield-curve control and balance-sheet expansion to ensure that debt servicing remains manageable—Japan has done this for decades, and both China and parts of Europe more recently. In essence, short rates are going to be taken down and long rates will be “twisted” down without the system breaking to alleviate the interest burden. In the event that governments pursue this path, the likely result will be a period of declining real yields and low-ish nominal rates. This will create a different investment climate than that which we have experienced in recent years. 

This environment provides optimal conditions for the real assets in which we invest, offering inflation-linked cash flows backed by hard assets that protect real returns. The benefits of real assets are always evident, but in this evolving environment they become an essential part of an investment portfolio. A suppression of real yields will further amplify these benefits—specifically, lower rates will further enhance cash flows by reducing financing costs. 

Over the past 25 years, alternatives have evolved from a complement to traditional portfolios to a central component of the global investment landscape, particularly for investors seeking to preserve real returns. In a world defined by low real yields and persistent inflationary pressure, investors with medium- to long-term risk-adjusted return targets will find it increasingly difficult to meet their needs in traditional markets. Alternative investments in real assets are the solution—and they have been the foundation of our investment strategy throughout our history. 

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Source

https://bn.brookfield.com/reports-filings/quarterly-results 

Brookfield Launches $100 Billion AI Infrastructure Program

Brookfield Launches $100 Billion AI Infrastructure Program

GlobeNewswireNov 19, 2025 7:00 AM EST

Brookfield Launches $100 Billion AI Infrastructure Program

$100 Billion Investment Program to be Deployed Across the Full AI Value Chain

NVIDIA and KIA Will Each Join the Fund as Investors and Founding Partners

NEW YORK, Nov. 19, 2025 (GLOBE NEWSWIRE) -- Brookfield today announced the launch of a $100 billion global AI Infrastructure program in partnership with NVIDIA and the Kuwait Investment Authority (“KIA”).

Brookfield will anchor the program with the Brookfield Artificial Intelligence Infrastructure Fund (“BAIIF” or “the Fund”), which launches today with a target of $10 billion of equity commitments to invest in the backbone of artificial intelligence (“AI”). BAIIF has already received $5 billion of capital commitments from a select group of institutional and industry partners, including Brookfield, NVIDIA and KIA.

BAIIF, together with additional capital from its co-investors and prudent financing, will acquire up to $100 billion of AI infrastructure assets, deploying investment across every stage of the value chain—from energy and land to data centers and compute.

As one of the world’s leading owners and operators of AI infrastructure assets, with over $100 billion already invested in digital infrastructure and clean power, Brookfield is uniquely positioned to deliver integrated infrastructure solutions and critical services required to power the next generation of AI.

Sikander Rashid, Head of AI Infrastructure at Brookfield, said: “AI is creating one of the largest infrastructure buildouts in history, comparable to the formation of the modern power grid and global telecom networks, but unfolding at a far greater pace and significantly larger scale. This buildout will require $7 trillion of capital in the next 10 years across the entire AI value chain including power, compute, data centres, and beyond. We are thrilled to formally launch our dedicated AI program in partnership with NVIDIA and others to deliver this infrastructure at speed, at scale, and to the highest standard for enterprises, technology firms, and sovereign governments.”

“AI is transforming every industry, and like electricity, it will require every nation to build the infrastructure to power it. AI infrastructure demands land, power, and purpose-built supercomputers—and our partnership with Brookfield brings all of these elements together in a ready-to-deploy AI cloud,” said Jensen Huang, founder and CEO of NVIDIA. “We’re thrilled that Radiant, Brookfield’s AI cloud service, is building an NVIDIA GPU cloud based on the NVIDIA DSX blueprint to deliver Vera Rubin–ready AI infrastructure—fast to deploy and designed to scale with the world’s growing intelligence needs.”

Investing in the Infrastructure Underpinning the Growth of AI

BAIIF will focus on investing in the physical infrastructure assets that underpin the delivery of AI, across four verticals: AI Factories primarily built on NVIDIA’s DSX Vera Rubin-ready reference design; dedicated behind-the-meter power solutions; compute infrastructure including integrated solutions tailored for governments and leading global enterprises; and strategic adjacencies and capital partnerships across the entire AI value chain. BAIIF will prioritize investments backed by highly creditworthy counterparties and contracted cash flows.

Seed Investments

Brookfield recently secured a seed AI infrastructure investment for the Fund with the announcement of a $5 billion framework agreement with Bloom Energy to install up to 1 GW of behind the meter power solutions for data centers and AI factories. Brookfield is launching Radiant, a new NVIDIA Cloud Partner, to provide full-stack AI services leveraging Brookfield’s access to scaled infrastructure, including land, power and data centers around the world. Radiant will build AI factories based on NVIDIA DSX reference design to offer the fastest time to revenues and provide direct support to Brookfield’s Sovereign AI programs. Brookfield has also announced landmark partnerships in France and Sweden to support their national AI ambitions with up to $30 billion of combined AI Infrastructure investment.

Notes

Read Brookfield’s white paper, Building the Backbone of AI, here: www.brookfield.com/sites/default/files/documents/Brookfield_Building_the_Backbone_of_AI.pdf

Contact Information:

Media: Simon Maine Tel: +44 739 890 9278 Email: Simon.Maine@Brookfield.com	Investor Relations: Jason Fooks Tel: (212) 417-2442 Email: Jason.Fooks@Brookfield.com
John Hamlin Tel: +44 204 557 4334 Email: John.Hamlin@Brookfield.com

About Brookfield Asset Management

Brookfield Asset Management Ltd. (NYSE: BAM, TSX: BAM) is a leading global alternative asset manager, headquartered in New York, with over $1 trillion of assets under management across infrastructure, renewable power and transition, private equity, real estate, and credit. We invest client capital for the long-term with a focus on real assets and essential service businesses that form the backbone of the global economy. We offer a range of alternative investment products to investors around the world — including public and private pension plans, endowments and foundations, sovereign wealth funds, financial institutions, insurance companies and private wealth investors. We draw on Brookfield’s heritage as an owner and operator to invest for value and generate strong returns for our clients, across economic cycles.

For more information, please visit our website at www.brookfield.com.

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Source

https://money.tmx.com/quote/BAM/news/8173147829960018/Brookfield_Launches_100_Billion_AI_Infrastructure_Program

Stockwatch...Rockpoint Reports Record Second Quarter 2026 Results and Declares Inaugural Quarterly Dividend

Stockwatch...Rockpoint Reports Record Second Quarter 2026 Results and Declares Inaugural Quarterly Dividend

Canada Newswire

Nov 5, 2025 7:00 AM EST

CALGARY, AB, Nov. 5, 2025 /CNW/ - Rockpoint Gas Storage Inc. ("Rockpoint", or the "Company") (TSX: RGSI) today announced its results for the second quarter ended September 30, 2025. All financial figures are presented in United States dollars ("USD"), unless otherwise noted.

On October 15, 2025, Rockpoint successfully closed the largest Canadian initial public offering (the "Offering") on the Toronto Stock Exchange since May 2022, reflecting robust investor demand for ownership in the largest independent pure-play operator of natural gas storage facilities in North America.

Chief Executive Officer Message

"We are pleased to report record second quarter performance, reflecting the quality of our assets, stability of our fee-for-service cash flow and attractive storage spread values in Alberta and California," said Toby McKenna, Chief Executive Officer of Rockpoint.

"In the quarter, our business benefited from enhanced volatility and low natural gas prices, especially in our Alberta markets, led by the start-up of LNG Canada operations coupled with higher production targeting liquids-rich natural gas. We expect these two new trends to continue and contribute to enhanced storage value." 

"In addition to the successful Offering, which was significantly oversubscribed, our team continues to progress and execute on various strategic and business initiatives to drive value. We're encouraged by the recent improvements we've made to our capital structure and liquidity and remain focused on advancing our contract profile and business development efforts."

"I am proud of our team for what we've accomplished to date and am excited about Rockpoint's future as a public company. We are committed to delivering safe and reliable natural-gas storage service in our premium storage markets. Rockpoint is well-positioned to benefit from the positive macro backdrop and execute on our strategy to create value over the long-term."

Following the Offering, Rockpoint Gas Storage Inc. acquired an approximate 40% interest in Rockpoint Gas Storage1 ("the Business", "We" or "Our"), with the remaining 60% continuing to be owned directly by Brookfield Infrastructure. In order to provide meaningful financial information given Rockpoint held no interest the Business at quarter end, the following discussion relates to full quarter results of the Business on a 100% basis.

• Rockpoint Gas Storage achieved net earnings of $209 million in the last twelve months ended September 30, 2025, consistent with earnings in fiscal year 2025. Increased Adjusted Gross Margin was offset by a one-time deferred tax benefit recognized in the first half of fiscal 2025.
• Last twelve month Adjusted Gross Margin of $444 million was 8% higher than fiscal year 2025 reflecting strong operational performance and growth in fee for service revenue by a stronger contracting profile and higher contracting fees. This is evidenced by $24 million higher take-or-pay ("ToP") gross margin and $14 million higher optimization gross margin recognized in the period.
• The 13% increase in ToP gross margin compared to fiscal year 2025 is driven by higher per unit fees and slightly higher contracted capacity in California in the first half of fiscal 2026.
• Short-term storage gross margin, net of cost of gas storage services for the last twelve months was relatively consistent with gross margin recognized in fiscal 2025.
• Realized optimization gross margin has increased by 25% for the last twelve months compared to fiscal year 2025 driven by value capture from lower summer prices driving wider seasonal spreads in the first six months of fiscal 2026 in Alberta.
• Fee for service gross margin as a percentage of Adjusted Gross Margin has remained consistent for the last twelve months ended September 30, 2025 and fiscal year 2025 and in-line with our target of 85%.
• Adjusted EBITDA for the last twelve months as at September 30, 2025 of $370 million increased by 9% relative to the fiscal year 2025 comparative period primarily due to the increase in Adjusted Gross Margin described above as operating costs remained relatively consistent.

• Rockpoint Gas Storage achieved quarterly net earnings of $46 million, a 89% increase when excluding a one-time deferred tax benefit in the prior period.
• Second quarter Adjusted Gross Margin of $101 million increased by 22% year-over-year. This was driven primarily by a 25% increase in take-or-pay gross margin in California and 10% higher short-term storage gross margin across the portfolio.
• Adjusted EBITDA of $83 million represents a 27% increase compared to the same period last year. The increase was driven by higher Adjusted Gross Margin in both regions partially offset by certain variable operating costs.
• Distributable Cash Flow in the second quarter increased by 6% over the prior year period to $48 million. The increase was driven by increased Adjusted EBITDA, partially offset by higher interest costs from the Term Loan issued in September 2024.

Strategic & Business Initiatives

• As we enter our open contract season, the Business is experiencing strong early customer engagement for new ToP contracts in both regional markets, with terms and rates tracking in line with management expectations for fiscal 2027 and beyond.
• We continue to focus on advancing several near-term brownfield projects to enhance facility deliverability across our portfolio, and support customers' growing need for greater injection and withdrawal rates.
• We have a strong balance sheet and believe we are well-positioned to fund future growth with approximately $214 million of available liquidity and a conservative Net Debt⁸ to Adjusted EBITDA leverage multiple of 3.3x, below our target of 3.5x.
• Concurrent with the closing of the Offering, we replaced the existing asset backed loan with a $350 million Revolving Credit Facility bolstering our liquidity and providing more flexibility to support the working capital needs of the business.
• In October 2025, the Business further optimized its capital structure through the successful repricing of its Term Loan, lowering its cost of debt by 50 basis points and generating annual interest savings of over $6 million. The Business also hedged its remaining floating-rate exposure, securing a fixed interest rate of approximately 5.9% through maturity.

• Rockpoint Gas Storage achieved quarterly net earnings of $46 million, a 89% increase when excluding a one-time deferred tax benefit in the prior period.
• Second quarter Adjusted Gross Margin of $101 million increased by 22% year-over-year. This was driven primarily by a 25% increase in take-or-pay gross margin in California and 10% higher short-term storage gross margin across the portfolio.
• Adjusted EBITDA of $83 million represents a 27% increase compared to the same period last year. The increase was driven by higher Adjusted Gross Margin in both regions partially offset by certain variable operating costs.
• Distributable Cash Flow in the second quarter increased by 6% over the prior year period to $48 million. The increase was driven by increased Adjusted EBITDA, partially offset by higher interest costs from the Term Loan issued in September 2024.

Outlook

While the short-term outlook will continue to be shaped by weather and LNG market dynamics, the long-term fundamentals for North America gas storage remain very strong heading into the winter of 2025/26 and our assets are well positioned geographically and operationally.

• Demand growth from Liquified Natural Gas ("LNG") feedgas is expected to tighten North American supply-demand balances this winter which could drive higher prices. LNG feedgas demand averaged 16.3 billion cubic feet per day ("Bcf/d") in the quarter, up 3.9 Bcf/d year-over-year.
• The rapid expansion of AI and data centre infrastructure continues to become a key driver for long-term natural gas demand and volatility due to its reliance on affordable, reliable power generation.
• La Niña conditions across North America are present and are expected to persist through February 2026. These conditions have historically been associated with volatile weather, which could provide price spikes in the cash market driven by cold events.
• In Alberta, high storage inventories in the summer 2025 (calendar year), along with relatively inelastic Western Canadian gas production and downstream pipeline maintenance pressured cash prices creating wide seasonal spreads, further increasing demand for injection. The ramp-up of LNG Canada's Train 1-2 drove volatility which is expected to increase through the winter as they aim to complete their commissioning process.
• California storage inventories were high during the period, which typically provide gas price stabilization to end users absent weather or operational disruption events. California's PG&E Citygate market experienced low demand, reducing spot prices through July before regional pipeline maintenance drove a price rebound.

Overall, we're entering the back half of Fiscal 2026 with solid momentum, supported by strong fundamentals, in-place fee-for-service contracts and are well-prepared to capitalize on market opportunities within the winter months should they occur. Our balance sheet is strong and we've executed on several initiatives, as mentioned, to reduce our cost of capital and improve liquidity, positioning us well going forward.

Dividend Declaration

Subsequent to quarter end, the Board of Directors of Rockpoint Gas Storage Inc. declared a quarterly dividend in the amount of US$0.22 per class "A" common share (a "Class A Share") payable on or about December 31, 2025 to holders of Class A Shares of record as at the close of business on December 15, 2025. This inaugural dividend is in line with the dividend policy targets disclosed in the Company's supplemented PREP prospectus dated October 8, 2025 (the "Prospectus").

Management's Discussion and Analysis and Financial Statements

Rockpoint Gas Storage's Unaudited Combined Consolidated Financial Statements for the three and six months ended September 30, 2025, and 2024 and related Management's Discussion and Analysis have been filed with the Canadian securities regulatory authorities. These documents are available at www.rockpointgs.com/  and on SEDAR+ at www.sedarplus.ca. The Company has also made available certain supplementary information regarding the results for the second quarter ended September 30, 2025, available at www.rockpointgs.com/.

Conference Call and Quarterly Earnings Details

Rockpoint will hold a Conference Call today at 7:30am MT / 9:30am ET. Investors, analysts and other interested parties can access Rockpoint's Second Quarter Fiscal Year 2026 Results, and Supplemental Information, under the Investor Relations section at www.rockpointgs.com/.

To participate in the Conference Call, please dial-in at:

• Toll-Free North America: (800) 715-9871
• Toll-Free International: (646) 307-1963
• Conference ID: 9326759

The Conference Call will also be Webcast live at https://edge.media-server.com/mmc/p/7cxmw6n6.

Rockpoint Gas Storage Inc owns and operates natural gas storage facilities across North America, providing critical capacity for the reliable supply of natural gas in key producing and consuming regions. The company generates revenue by offering customizable natural gas storage solutions to clients, and is categorized into Fee for Service revenue and Optimization revenue. It also operates Access Gas Services, which delivers natural gas supply and related services to commercial, industrial, and residential customers in Canada. The companyâ¿¿s assets are strategically located in regions including Alberta, California, Oklahoma, and Texas. Its business focuses on managing and optimizing natural gas storage infrastructure without owning physical retail outlets.

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Source

https://money.tmx.com/quote/RGSI/news/5661946045299561/Rockpoint_Reports_Record_Second_Quarter_2026_Results_and_Declares_Inaugural_Quarterly_Dividend