Q: hi folks, can please get your updated thoughts on Rockpoint gas storage rgsi/t, since IPO and Q2/26 results (end 30/9/25)....are you positive on Natural Gas going forward into 2026, and rate the stock as Buy/Hold/Sell,,,,thx as always, jb
5i Research Answer:
RGSI has declared its first dividend, 22c, for a yield of 4.16%. The stock remains cheap at 13X earnings. We have no estimates for the quarter (multiple brokers just initiated on the stock on Monday). But EBITDA rose 9% and adjusted gross margins rose 8%. 12-month earnings were stable at $209M. Distributable cash flow rose to $48M from $45.3M. We are neutral on natural gas. Much will depend on winter weather, but the sector remains challenged and the benefits from LNG are slow in coming. But RGSI looks solid overall and we would consider it a BUY.