FTAI Infrastructure (FIP) Steady Progress In Q2
Shares of new addition FTAI Infrastructure (FIP) are trading down modestly today but outperforming the market after delivering Q2 results at the crack of dawn this morning (not after the bell yesterday, as they were supposed to).
The bottom line is that the quarter was good, with progress being made across all four core businesses. I listened to the conference call this morning.
Before taking out corporate expenses, the four businesses generated Adjusted EBITDA of $41.8 million, up 15% versus a year ago, and the company is on track to be generating $200 million in Adjusted EBITDA on an annual basis by year end.
The theme here is steady progress across the portfolio, with nothing really that’s bad and a number of things that are incrementally positive. The foundation is being laid for much more earnings growth in the coming quarters.
Third-party customer base at the railroad, Transtar, continues to ramp (this is good) and Jefferson Terminal handled record crude oil and refined products volume. The refinancing at Jefferson is done (will generate interest payment savings) and the Phase 2 expansion at Repauno is being increased in scope due to demand, with tax-exempt financing in the works supported by negotiations on several long-term contracts.
Turning to the Long Ridge power plant, recent capacity auction results for the 2025 – 2026 period were announced, which are at a huge increase compared to current pricing. Management says that today, Long Ridge generates capacity revenue just under $5 million a year. Under the new pricing environment, it could be $37 million a year, with that “extra” $32 million dropping straight to the bottom line.
Lots more details from the call, but the takeaway is that the business is doing well/as expected and FIP is still a buy. BUY
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