BIP - Earnings call transcript Q4 2021 | Brookfield Infrastructure Partners L.P.

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Operator

Good day, and thank you for standing by. Welcome to the Brookfield Infrastructure Partners LP Fourth Quarter 2021 Results Conference Call and Webcast. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, David Krant, Chief Financial Officer. Please go ahead.

David Krant

good and Shannon, you, morning, everyone. Thank all Fourth Quarter you for XXXX. joining Partners' Infrastructure Brookfield for Earnings us Thank Conference for Call

As Partners. David Officer is introduced, the my Financial Chief Krant, of I'm Infrastructure Brookfield name

and Joining me Pollock, our Sam today Operating Ben Executive Officer. our Chief Vaughan, Chief is Officer;

financial questions. initiatives as you to operating our responding that statements and Following your to we and talking I'd make time, questions These may risks, forward look materially. this remarks, well differ about known and in growth our like our taking as may statements. we to At to unknown performance, results and remind future forward-looking subject are

factors, For available which you would is encourage our our Form further known to website. XX-F, information on risk I annual on review report on

the investments asset quality enhanced further the validation tremendous of is its Furthermore, several Brookfield trajectory flows initiatives of a at in cost Infrastructure's years Now, X mature capital deploying businesses infrastructure In of our an further business Brookfield class. years, XXXX, providing into cash the Consequently, sector resilience sustainability, over generated of the valuations has on last to at organic our as projects. by and has attractive several strong growth significant ahead. low monetization well liquidity growth positioned Infrastructure opportunistically capital. the attractiveness in of fund demonstrated we the growth

year to positive increases, Directors result approved $X.XX as and distribution XXXX. our liquidity operating that our are financial increase a our and of reflecting outlook. XXth marks position, the in distribution unit of a pleased has announce to consecutive This of We robust of performance per strong quarterly X% Board and

the of over half of $X including increase, Securing X%, ensuring operating And through achieved distribution raising over our levels. deploying $XX of utility sale Pipeline liquidity performance or $X X billion this Australian the segments, generating IPL, billion of all of markets, privatization. acquisitions, across our almost Inter milestones in the initiatives, the from deployment into processes. XXXX and business capital to year, acquisition strong a in completion proceeds resulting X growth capital including addition organic solid past billion of $X other many In finally, billion growth

very higher contribution XX%. elevated of from billion FFO significant by the reflecting our switching fourth supported year, year. prior were $XXX by Taking We as reflects million over X%, annual million operating to XX%. We a per the $XXX a prior than inflation FFO year strong quarter base unit, experienced solid total sales services. was of of FFO connections. last billion activity, ended of a commissioning into best base initial XX% new growth the XX% in million of $XXX transportation year. in XXXX. benefits with full business. company's initiatives. closer This record effects of revenues, mentioned, growth compared ending at This period deployed payout XXXX I sales business same-store of approximately the growth in the nearly FFO generating demand from increased the $X.XX activity of a FFO year the operations we Now, and an This reflects capital and funds $XXX recovery and for higher projects our distribution XX% driven exceeded and primarily its Utilities, on and on reported of growth in capital of generated previously million, the basis, growth commissioning performance accomplishments year from unit our Results from our indexation increase related levels, higher our was starting shutdown by was for U.K. note, results over in ratio per look by and $X inflation Organic another business, which basis the from year market-sensitive with respectively. at and extensions a a impressive the rate strong the of or total regulated per notable unit on a and recorded XX% or the $X.X set segment, to year of was XXX,XXX $X.XX, for

residential through geographies. new product and business its lines continued Our expansion infrastructure

North the In is in addition X residential notable rental a our acquisitions solutions transaction to independent infrastructure X second And leading of completed interest strategic energy XX% of residential we follow-on in at the operation U.S. acquired provider the with and Most strengthens solar the in to storage additional year, in This acquiring our product we operations role in a residential our installation in business U.K. existing and transition deploying December, acquisition states. an quarter. largest avenue green for provides battery heating a offering. fourth German America, earlier the in installer the

Following of is construction this been launch second in lines increases half leading offer a Process option acquisition to this platform residential recently to derisked, our under kilometers. inflation and exercised to our interest acquire to expect contracts. manufacturer, joint own the complementary offerings business. operational process With we year. to of index complete, significantly positioned XXX partnership are Brazilian initial of now it our of has the the generator long-term At transmission electricity portion an approximately now underway, us and kilometers ventures portfolio utility we with leading the the we lines. XX% the of salable we that complete set sales lines in This this X lines, of X,XXX for

Transport volumes, $XXX Results XX% a terminal. prior nearly benefited driven from FFO with our U.S. strong LNG was year by improvement export Moving compared of million, the full year. growth segment. inflationary on and an increases to organic tariff from our contribution higher

is the markets. economic Our robust segment beneficiary our Transport significant of most in investment a of recovery

strong bulk demand for economy. the from goods benefit and underpin to that continue networks rail commodities Our global

has cost the the essential pressures our results to as nature operation are from in to benefited At volumes, rail tariffs tailwinds, year, current product year, ahead each carloads, environment our business, volumes tariffs. to robust pass-through Due with in most North terminal experienced record rates. performance have quarter, able operations diversified the well across inflation and operations, as by number robust, continues American margins positive of performance during of our of surcharges higher fourth the protect reflected congestion in improvements groups. X% reflecting inflationary our including we've been of across as be including improved our FFO higher prior Following its the and a last

benefit favorable and high LNG U.S. global excess terminal, to of China demand has prices the contracting increasing particularly due multiyear storage rates. at continue to to from our low strong in we capacity export under facilitated This backdrop and at Europe. attractive levels, LNG Specifically, exports agreements

record train IPL, schedule segment expected across the In and acquisition to October, is same-store privatization fourth approximately Current year a substantial the is in platform providing million year performance elevated the extraordinary quarter the in our of of reflects be liquefaction increase an totaled successfully $XXX XXXX. in with was of progressing XXXX. which the storage completion in construction first XXXX, of $XXX compared of and or Canadian sixth ahead the change results critical increase quarter. achieved the year. growth This to prior XX% volumes price prices environment led long-term we step in quarter existing for million commodity following reflect Midstream of of businesses. midstream first completed of This IPL completed also the infrastructure. Additionally, FFO the XX% high-quality

start-up. commodity network with the from of volume are activities As recorded the The and a commissioning to reminder, Petrochemical contracted, data balance telecom no across of approximately with has and service majority counterparties sites facility, commodity an long-term track is segment we business and exposure. million on requirements. reflect $XXX of accommodate secured where business our The India of XX% under an take activities Results mid-XXXX mobile Heartland portfolios the our corresponding complete XX,XXX XX%. respect of mechanically tower prices. construction France now increase to the investment-grade growth With benefited densification XXXX, data strong with of in of arrangements or cost in FFO the a is construction

highly quarter data record. also The major across benefited the increased country's on build-to-suit over higher quarter, of second the our on have storage French the tower Furthermore, MNOs. transmission fiber strongest added from further, to businesses rates portfolio portfolio. business, our connected inflation for demand and new highest co-location indexation record. the given homes, and the business At almost Our XXX during contracted XX,XXX towers the were growing

We storage milestones platform continue with during data of expansion our momentum gain reached important several and quarter. the to the global

anchor the New demand tenant its greenfield the second a to secured incremental we location Auckland, site initial country. from support Zealand in at First, in

lastly, XX double offering of we attractive first these the should developments. site this last acquired of projects, adjusted end months. in to Combined been changing South XXXX. South a further In for market And Seoul and our center highly also of America, in We capacity Europe, of the data successful we Korea. drive XX megawatts early in have strategy stages land bank our organic by we commissioned in a capital in India EBITDA the

pressures, levels, touch with sheet. of long-dated of the metrics is Sam, S&P opportunistic was despite rates maturities. we remaining to With at call and credit secured balance to robust by strength over strong BBB+ issuances December. debt reflected interest turning the onset reaffirmed low our historically This accelerated like credit Before and inflationary I'd on fixed at rate our investment-grade rating, which actively in in the

to turn are normalization now banks combat level significantly central corporate to As balance derisked. rising our asset policy sheets rates, and

modest several maturities next years. We only have the over

course fact, amortization. the we're than XX it's months once over next less moving XX% In normal

Additionally, has approximately with fixed our in rate debt term X Brazil, remaining excluding XX% business debt, across term our local the of of years. currency

was refinancing active mentioned, to respect with I year this As initiatives.

alone, secured commitments a of $XX year. billion program, of objective sell owned freehold at we businesses. our level, port a recycling proceeds Victoria, for $X During On in near-term increasing leverage we raised primary recently capital XX% approximately versus asset approximately the the refinancing agreement in our maturities XXXX of Australia. net to total secured our with Most we landmark December, in this million signed our definitive

quarter. is is closed which proceeds to approximately in be Our $XXX to million, share expected first anticipated of the late have

excess in billion year $X.X Now, liquidity level. of the at total $X these with activities in resides which of billion, the resulted corporate ending

will this your opportunities of forma morning. liquidity call X is us level year. I'll over with utility Sam. investments, they pro as are fund Following new the billion. incremental provides This completion $X to momentarily, investment for all corporate approximately the to the Australian time which pass this you secured Thank the secured Sam capacity now at discuss significant

Sam Pollock

Of the ahead. on our David, macroeconomic I'm going I'll current for comments and our interest like inflation Thank begin and you, On our have rising ours. around may some equal, world call on banks strategic good its a was call, to today's a central prices, discuss business. with generally business. outlook outline conclude a the environment we monetary to good the and how All this everyone. the then control year of favorable policy opportunity morning, underway it we environment thought to signaling and for is with else the to initiatives stable few tightening then businesses transition impact impact economic rising rates infrastructure

thought associated that with underlying elevated tailwinds interest higher should outlook. the inflation rates, Before first risks frame caveat we potential that exploring and assumptions and we

disruptions, factors, inflation prevailing chain labor the environment, including a first, of many think, pandemic-induced stimulus shortages. supply Now is product fiscal we and

as the inflation green contribute though, of addition, to inflation longer-term expected referred to inflation. and green deglobalization In with some are or influences to

levels a do persistent as inflation this current factors, all Given be will these last to X number to expect i.e., likely period we of the lead year, just of transitory, a factors inflation. not

Accordingly, also the anticipate their in of shrink inflation sheets. that a to and current stabilize elevated other of central we rates the inflation banks the back raise XXXXs. period return occurred this a interest should Federal next However, Reserve years, ultimately few excess long-lasting don't balance the as in and

in treasuries not result for We gradual XX-year dramatic is consistent a next our not horizon rise over significant with forecasts this many over view few in is about rates Assuming U.S. the time but off, this inflation interest this significantly will X% reaching hopefully think period. that stabilization years. show

environment Although context market contracted the expected like ours. than these can low an last businesses and few in accommodating are and higher years, levels provide highly well-capitalized historical for the

short-term taxation. inflation a tailwind Now, this forecast in significant as elevated mind, foresee of a we for business, as business portion our has acting our inflation

of largely between index impact inflationary revenues cost businesses Now, indices. revenues utilities, management inflate namely operating are our will XX% revenues transport to the from should approximately XX% should of inflation across local compounding be cost inflation. the contracts costs, revenue not data while inflation This and rates. fully from our impact high-margin and Together impact. fixed we a is consequences, Today, strategies, investments, largely infrastructure. drive increases may critical our where benefit prudent high-margin largely insulated XX% rising our to structure by are not inflation-linked interest and with leverage The higher impact of without its economic adjusted

direct Fortunately, financing rate movements and as employed our long-dated mostly interest maturities David mitigated to our to about. a pricing. through We've is business effectively fixed exposure talked and near-term minimal rate conservative always approach

levels our few In and modest positive for advantage inflation low have next opportunistically to increase of which interest to business. will extended rate environment for of in countered rates, we the continued went a our actively summary, high in environment through. be In long-term years take we the maturities interest addition, debt secured rate expectations for result fixed just with net-net

that's meet the own received track to invest Now, the positioned critical quarter. participate which we and distribution decarbonization regulated XXXX in approximately $XXX XXXX. representing, meters agreed to secured retailers approximately BIP's various transmission activity target. shifting X with networks. leading equity This and acquire of had excited for X.X deployment contractual million. share Zealand. investment XX% perpetual business a market. to with million, of zero $XXX this The as a and investments week economy in we million the electricity investment of Intellihub, investment consumer interest portfolio closing to New to smart Total Pleased approval in our businesses XX% utility in And target cover legislative a for Victoria's and AusNet, December, that meters David net up a relationships electricity provider Australia after expected highly approximately utility being energy is The in leased to that consumption meter is its familiar of Victoria, we of franchise be last digitalization XX% well per mid-February. our deployment expects our will metering the class asset years. We're mentioned is essential within an continue goals held business on gas, and with, believe in coveted of are the smart the of having report in electricity is decarbonization includes to approximately we for of that meters point provides U.K. the Australia as to component occur utility BIP million. $XXX for year earlier, an distribution region. across for many is and smart regulated We with a shareholder accelerating This high-quality that to of services network, the attractive that to

We expect to transaction in complete QX. this late

in market business, This have quantitative tightening and valuations the weeks, seen market recent a has as a Now, for significant I'll been we we've conclude for the tailwinds pronounced infrastructure. interest technology of environment Notwithstanding rising the with our year. and stock remarks seen regarding start my outlook for few caused a as our comments where Brookfield volatility the to to volatility. it have most relates pullback large sector, in rate expectations

a and economic Private both Now, for buyers the underlying our X especially although assets impacted. will longer-term posed of sentiment. essential many and years less sentiment, high-quality market view assets, for influenced will the those most, privately by take less our of derisked with value or Like conditions businesses. infrastructure, short-term our people last undoubtedly be are challenges our much price we move broader owned infrastructure infrastructure unit believe

feeling proud about ahead. equally year Although optimistic the last year, of of the we the we are accomplishments are

several our opportunities billion businesses target, that secured the cycle We close $X.X expected investment can are half be are already identified strategy, We've to execute full pursuing at having valuations. annual weeks. mature monetized these in transactions and strong deployment to coming our of

balance liquidity on fund global these and new of confidence based of to strong And advanced achieving our ability the meet returns. a us the regarding that pursuing. target opportunities provides we teams our pipeline are investments So pursue degree high target we the of have deployment and have

pass the for Q&A. concludes Now it I'll to line to now that remarks. open operator back my the

Operator

question [Operator Radbourne comes first TD from Instructions] Our with Securities. Cherilyn

Cherilyn Radbourne

and very morning. Thanks good much,

it tailwind we've ultimately than hoping become to? which the take of on settle net I letter, in I experiencing can feel do terms you And the at a based maybe that give inflation, for expected level inflation from world higher of In that will what your think you're was the us level early used XXXX. local you out, a around where

SamPollock

other jump we X%, transmission effects of things lot of be of gas case business impacts America, or our of The anywhere double-digit that bit in levels of They X% transmission say. inflation you America, the of year there's world, pronounced. those In between are basically South the Ben, before color. sort a and you business and add is around have indexations. you'll the run the impact. into parts of we -- because let's maybe and reflected of But aren't a to the full Europe, there contracts, quite these tend one currency. take the account think I North digits. as those to in The Dave of been the receive delay in to I'll to impact is the see of through highest when look, should world. a we the And benefit lag A through had can it toll have varying come start the and roads, seen business, Maybe the single more that high we've inflation actually also our gas levels in

some happen next will to tend or in the actually a of actually They in this lot year. of still think future. We've come year benefits at in fact. indexation year, are I the I points probably later benefit seen this think but the different in time, roll So full the

As far to I would the anything be Dave there, know you Asia, -- numbers add, as can't I but say if really have don't what

David Krant

Yes.

business, for has and I think around to if for the stable or actually Pacific Australia you of end our Cherilyn, the target X%. range the low been India X% look Asia X% X%, at has the pretty been in

historical levels, from to So stimulus have of factors there's closer a to that. variety that policy caused and

lay of a global think that good pretty for our I So land gives the business. you

Cherilyn Radbourne

Perfect. That's XXXX color head sounds target. pipeline, capital maybe, your more just and us areas got geography? like deal on a helpful color. can deployment bit then But the And you've good start a it you on give including of by emphasis segment your

SamPollock

I'd and I'll -- tackle sectors. moment, in regions The the opportunities Sure. robust pipeline one, in that quite is at all actually the say Cherilyn. with all

-- that's for I'd or year say the the So been and case past so.

-- have broad-based sort recovery. we've We seen of a

just And it on. movements deployment call huge so a the there's where from capital let's usual, data going secular

So systems. relates we've And it airports we then are last fiber optic year, both to as roads. relates probably over Midstream, opportunities. Transportation well in and it think, seeing remains as as the we opportunities seen interesting the one is to across as -- towers where increase some area activity there

as around the deal then have for is of but the surface and Europe, world. look some of see of And -- markets North there, sector opportunities far as the do covering in our this think we'll ESG such America Midstream to as Middle couple we pipeline underinvested wins. the electrification grid and seen South becomes say, prices. the commodity as But of we opportunities assets a with the East. as have number and the can Utility in -- decarbonization sector well opportunities a we're that to continue And to I of have due other regions, most rising the benefit as We valuations probably probably I in America from of

Operator

next question Markets. Robert Kwan comes Our RBC from with Capital

Robert Kwan

frame the to outlook of you increase expectations your decision for by Thinking that against all the M&A can activity, results the about X%? and for distribution just the business,

David Krant

distribution are Look, here. approval Board's a go of there recommendation our Robert, number that of our it's policy. our of into factors David

the business. You We're outlined just the obviously, optimistic. few of a very outlook them, probe for

with a in operating good tailwinds. are We period macroeconomic strong

favorable. that's So certainly

levels, our ratio. consider thing is our is obviously, well. within we The And that largest needs other have history. that the main we're number funding in projects a consideration. we have to the which thirdly, Today, the the factors We of as in, obviously, capital second exciting payout that And our backlog business. do liquidity

I that the to think of target range is business our for having return to. forward going an end high consideration the important

So up of all when X% environment X to very level a we the in dividend at appropriate those next we aspects, got the year. set balance current

Robert Kwan

bit terms to framing like you've a sounds then and little all than accounts, ratio that And -- you're have more noted effort optimistic been to of a would a and just you certainly is Is end there You conservative? prior optimistic of against conservative liquidity. that years, been starting at kind -- be in prior by very previously? bit Was in more it years. concerted be payout little more might where

SamPollock

trying to into think I look, you're maybe increase. the read too No, much

approach I longer-term dividend we take at a increases. look think we when

So business. it's because for given than And the be people outlook's the the years, not some we high higher have we as enthusiasm not years, as might maybe maybe robust. other expect

couple as as payout where throughout ratio of as perspective. a inception. mentioned, the see back want the where years, probably inception, were on payout what so David get from taking with level was, world, to since needs we be we longer-term we've And I came a balance, operated and higher last sort our where over a approach our the to want of capital ratio we a -- up we the think we little of to generally well

with zone. good come we'll dividend years, then in out overperform, higher continue to that. And the in we back We about if now coming that So increases. I think we're feel maybe

Robert Kwan

questions If Pipeline. some I just could Got Inter finish it. on

you've more with give might to that you And the you on got? you've including commodity-exposed Just do us Heartland? time now positively just on then thoughts can some what negatively? you NGL had like what to assets, Anything anything that assets, or overall surprised some

SamPollock

some over business maybe, update the just an impressions. with start I'll Heartland see Ben, Maybe general we give And then going. I'll turn how of to just and Okay. it commissioning on the

First thesis think, with we and around where set the as feel timing far as the we very the both good off, I investment, today investment transaction.

a customers helping We us strong and with of commodity streams. our very component that's helping environment some the are by currently, of revenue merchant-related benefiting, our

good the or quickly. So in all parts business. and that. optimistic place this components results have perspective. just into And on that the We the just Reenergization, I'll there right about about other we very this and business of the and in say, the are our we management will strategic embrace achieving to of are a those well that we done ask acquisition. from to people We're and -- I'll execute within perspective great and initial little would in We've put we're went knowing going the maybe operations, from a can both we're confident of way before, lots pause think business. talk There Heartland bit it, company forward. the culture maybe Ben a

Ben Vaughan

be Heartland, and Ben Robert, note, hub think commissioned. is as here. Hi it's to Yes. central the now complete in the I utility On outlined

mechanical of the site, That phase all a into complete, end phase. we're go QX. are probably on works to the So commissioning of and will

start-up a QX in have So we'll and early QX. late

our and on us. site over demobilize the we the line commissioning, the all risks with in commission mechanical time, And are detailed have on plans. plans assets So behind very to

own our the we when had asset. underwrote expectations we So

no there have been surprises. far, material so And

both the side and So the good receptivity physical production QX. we've mentioned, for of lot no start-up we're from market Heartland. the plant as in the side, perspective, so a either. commercial is expect plant, I And we a in had on overall, off-takers, bring to the surprise from commercial of to into and on There shape

Robert Kwan

That's quickly on great. Heartland. And just

that's not of Heartland wondering put out with know you, the I statement cost to respect that Just terms to significant CapEx? means capital you just percentage-wise in what don't

SamPollock

had underwriting, had plant plans material end that you're the Robert, terms early the online bring towards in planned, as either don't I for we budget that as know Sorry, was of we've I frame on to. in said, no exactly the we which, referring or had QX, or I the time time said, QX. of But surprises, what

just So surprise. no

Robert Kwan

Okay. Pipeline release. just Yes, press Got that. had a the statement it's lost that you in Inter Presumably, would it. have

Operator

question CIBC. from Catellier Robert comes Next with

Robert Catellier

inflation. I just the want to start with

You've release and in in been your views inflation, today's the on less but your there's perhaps consensus marketplace. clear very comments, about including

So I'm where don't in increases securing or successful businesses embedded increases? your you been have curious about have you the indexed. in inflationary contracts How price

David Krant

then, Yes. I any can and color. free to layer added start on feel

highlighted, next, contractually you well, year. business of is So know inflation our as we by XX% to, Robert, or linked escalated each

the that, business our So on I'd utilized facilities that these pipelines say, renewals for is gathering these processing seen But in and our that is all at contractual don't sure and are we the our pretty where incremental are that for today as of what [indiscernible] in where customers instance if escalation. of competing obviously highlighted, segments fully we've the But benefit of say capacity. that power. you are price in have on much business. don't There's few businesses look a we vast majority we that have I'd generally, our Midstream

are have we've you -- have securing slightly pressures So supply in rates where certainly, actually the just that reflect as limited do been inflationary been well pressures in they successful today. midstream ahead of price would some renewing space and that at, as

been So I in passing successful pretty those we've through. think

are at right, we you're there's point. it's that only contracts highlight that only XX% this conservative So when

essential -- prices We other seen we've benefit strengths. on to infrastructure, those pass in that have to our as think tend you I up owning businesses. renewals come

Robert Catellier

lines number with far, to adding so has a It Enercare. like looks question second my And you a do geographies. Okay. new and lot accomplished of product

future lines to versus the capital product continue So other adding? address expansion? platform expecting that as How much acquisitions increase is there? growth to of portfolio more level growth. you lines just of envision tuck-in are the build the product to you of to value way on vehicle soon, one you is what Maybe room you deploy in curious about that type What geographic there

SamPollock

So maybe I'll that take on. one

Enercare, to a a just had -- U.S. the business was Canadian expansion. when and business bought recap, primarily bought we business. in They the we So effectively, start

small a getting HVAC, that we lot that U.K. we've been So in at our so regions. is in Canadian, years into was and to and geographically, it we other other here copying successful as applying much and and we've of taking executing U.S., as done playbook that largely we've from in and the businesses Ontario been position selling and products. X What what Canada can have

U.K. So goal we've have in Europe, and all across would businesses now our expanded And Germany. to be now the and operate to Europe. we

that, In digits. U.S. is share addition the to our in market single

across so different expand grow ability environment. And a the and highly it to market states quite that is substantial. market, It's fragmented in to

And now geographic product is say we'd well as level we're near saturated. solar then increased the nowhere a still, we've breadth so the generators. is of as but by both that products And substantial opportunity the the adding

that have. And so that distribution we capabilities advantage of takes the

find expand we've say Geographically, think yet, Europe we're have today, U.S. hopefully we within R&D the in got one. I stage So X will product both products. looking another the the I'd we to that's another but don't and

down Colombia. taking to South in at We in America are the business Utility looking our model

dealer execute they approach, into expand dollar When investments perspective, done model, have far And of relationships can where in that different as and other based we've rental And capital-heavy quite far a business as the so the large success with modest expansion using the means predefined streams on capital. criteria. there both but much we extent And say And Most to buy the that's a to require business that entered from to we'll all that's a opportunity further capital, so we've the had on where been capital-light regions. their parties that and would in look do of a I as larger look a opportunity, think tack we basis. that what is we've given model. a what it a the this, capital-light is to on well. we'll at we

in change the pipeline small looking some as all business are we BIP different could but really step relatively for So a today, well. from tuck-ins this our large perspective, investments that are

Operator

James. Raymond with Bastien Frederic from comes question next Our

Frederic Bastien

guys. morning, Good

a distributed into And data business shooting still end fall least long-term assets ambitions that capital But recall your seems still FFO You've assets seen and goals was segment a valid? generally at as subscale years. good are the that your you're of we've that under. markets you've of nice despite Can job long-term time, targeting you're that's platforms, one sort evenly for. X about for be leaves growth on whether what sort comment done over the the I recent those to mix particular you that across high-return that agnostic in been these deploying operating and

SamPollock

at it's thanks given flow that it's where I exceed within Fred, over -- who that Look, down spot within time, the the would the road, we other for the expectation our our get amount in a think some sector, business. scale and data segments our the par least question. be see business. on knows, that of to deal We'll maybe maybe

time, the and other for of I within segments lot think Transportation and a have Utility part and have in long is sectors. a we so we of been Midstream historical investments the fact the

shift of reflects will look we pipeline it some years, that as as sort limits component to data fact competition on. only we And is the ability grow is it. significant that amount we're fair these data has assets, area couple that the quicker it emergence value of it's a take last see an our infrastructure the a But and for for time of we investors. are our always of there been focused The of So just sector. an at caveat that before

spots risk-adjusted returns. where need right our can So to the earn we we pick

to we're business. going do way of our we but in overall grow it, that damages a we not will -- returns summarize, it, to to grow look the will are looking we So

Frederic Bastien

No, understood. than this the follow-up, does this be And a growth of sort platform the other offer -- acquisition? Or predominantly as ones? just this -- is growth opportunities going attractive organic through achieved to is similarly does

SamPollock

ways. Well, we're doing it both

to relates we've much various set it pretty the platforms world. As centers as data around you we know, up development

America, We have as South Europe it Asia India. now, as in in well

we distinct where it well some a as relates big think and business an that X buy be network. development ones -- a we But in optic to overbuild flowing M&A centers. additional businesses strategy it's us. businesses cash fiber equally to the important as upgrade can So data focus and have as will I That's strategy execute for

Operator

Capital Dodge with Devin BMO from comes question next Markets. Our

Devin Dodge

political capital get in So countries. We've I on wanted to seen America. some your thoughts deployment in Latin shift

year. elections think this has I there later Brazil pools see right, I as think change And if are the we a well. could

have the countries? region? to of, noticeable these decision-making And around influence others say, shift in your in do seen invest any you willingness capital in those how situations Just the deployment

SamPollock

appetite. has a there just obviously, region to from last perspective, have to political where from a very And timely been Look, taken in exists I cautious lot tends the a region. been left. probably the couple say, we there And has over would a of that's dramatic investor that perspective that year the of more own a to our There's reduce a last caused uncertainty. some uncertainty, the years. because in approach question changes pretty shift

part Our for most significant without operating our they're said and issues operated political any pretty from businesses having businesses, perspective, have that, well. -- a the

there even haven't real negative we on in seen has change though government, operations. our So any been impact

So positive. that's a

for gives how changed to region. confidence And new can I But are a we've consider we FX so approach that, reduce the exposure. in where having is think said our looking us the businesses we opportunities that

volatility our businesses, been Some of well, operated negatively really even by they have have FX. though impacted

focused us. in it also denominated buy risk tends that that's more out of is those a equation. on U.S. BXB good taken actions think definitely And a to or regions. extent the we be, for in you're more can in to time, of these where focus consumer, So to businesses selling risk the pompous the I That businesses your moments because the biggest region, service of we're

I'd So still things a say at our in region. that's that we're the our have looking of strategy. focus We few

add So our businesses. we'll hopefully, to

as recycling other region are businesses in well. We the

we basis, positive. So grow, I net-net remain but on relatively still doubt it will a

Devin Dodge

nat storage business. a on question gas pretty think XXXX, I next is My your year. Okay. you it's can atypical agree all

typical I the I beneficiary of a some of seasonal for gas pattern. disruptions. was then supply year than the big think pattern different Rockpoint think prices bit was a And

earnings So this from but there Rockpoint for this can an expect be a be to something maybe, growth do seems small expect a perspective, you headwind setup you frame could a bit or like it you XXXX in like what tough -- more meaningful?

David Krant

Sam, to can and free start I or supplement. feel Ben

I quarter. year that highlighted we in of think earnings the an you're overperformance certainly from the benefit of the some had first we right, standpoint, this

was parts to Canada That the They highlighted $XX business -- of was where provide million, was businesses. we part gas integrated our the California these critical market infrastructure it an in just think past, quarter. the I Western is uncharacteristic own of and value first this of million we that in in $XX but in that assets. of

it's much I think as predict performance lot will to is A in of the So supply. conditions hard what dependent on said, happen. America North you of and weather

performance that's our all business optimistic else go reduction headwind the expect could to if our normal alluding or $XX kind face what can into ahead incremental to to, tariff million capture you're year-over-year. we looking businesses gas So But of see if small maximize back storage we're and the that's seasonal equal, of million in XXXX. a some volumes and that you we $XX between back. that levels, But that capture to so and spread demand our

SamPollock

last and said, Maybe better and difficult. great in But the not be a XX years. that, to it I'll was result assets around services the looked then able add that, earlier the to that said being year, it the thesis I to the having provides think replicate is, has in as probably X may look, there David

be captures in spreads. in those flowing I commodity sort production. higher prices. robust, gas of that's when in and because investment business for those, the -- many this the type what see of U.S. a to spreads. into investments this in And was But away very buy is continue we're scarcity more result, this should are And a volatility. protect service. was periods intrinsic as they lot going -- upstream volatility period today, intrinsic And going of to reduction think to think there a insurance very and you strong significant is where and And that of we sector business in have a a business took against we is price -- remember customers provides themselves and of that our it And will prices. need the it this next great

Operator

Capital Markets. question comes Our with next IA from Naji Baydoun

Naji Baydoun

one question. Just had

billion year. capital deployed successfully $X equity You've of last

targets. You're already half your way XXXX through

in need end do Or a raised would to you year what capital pipeline. equity this like guess the of billion yourself? to M&A what at objective? deployment of sort for happen you how healthy prefund growth and a year You new I sounds to exceed very $X.X context, equity last your position

SamPollock

be today, in year, us exceed large we to that successful for look, to pipeline. in target, So our transaction. Last we converting need very successful were X

our billion at an regular strong. been a on have amount basis. the deploy think we to is very we $X.X mentioned is outset, I able pipeline that as

fact But We we're of pullback is fact, at would Capital I for our in confidence, what today, there's haven't constructive. outsized But number. X.X don't more sectors Markets Day, is in the absolute year. growth be it's an early positions we stage, comfortable year stage, that the We're annual certain already get sure, this deployment that again, we target from not And out that do us regular moved se, that could a and our of have us give than rate help the per And -- it's well. run perspective. just level. a off our this possible little just new a deployment if would today half really a it's think a at if very we at deployment the that And we perspective, yet. So sense that us think secured then can other a set to we still valuation from hit -- of have deployment that of bit in signaling number which factor better. that only another

Operator

Our next comes Scotiabank. from question with Hope

Rob Hope

Rob Scotia. Hope from

question. follow-up a Just

data Just regarding seeing the opportunities you're side. the on

Or some you've that you seen seeing, that here kind there? pull or providing market enough valuation the opportunities little Or are been We a the bit last over public more more opportunities and you're amount of historically? little data Is it's quite opportunities targets, the things not have too month. been seen back where time? on to of has

SamPollock

views draw Rob, stage this perspective we do. to I'd could say the what it's been pullback short any a at of -- market from too has

opportunities, are for least most think the I take an of some it before open up from that of longer, then needs what time private down focused To expectation on lower extent that related views carve-outs. period is people's stays reset today stay I of but to think value. at market some the we're does for to

Operator

comes Our next Financial. National Pat from with Bank Kenny question

Pat Kenny

the other curious discussions back sequestration circle TC to participate perhaps, business. we potentially if the color portfolio? to initiative? Energy partnership on Alberta or on with IPL you Any with update I'm little or the get Pembina joining moving this just bit on decarbonization when to, within Just more opportunities and decide might any carbon in not a forward grid IPL

Ben Vaughan

Ben it's Yes, Patrick, here.

group don't a really initiatives all on specific midstream the our But have assets. at discussions number comments across counterparties We commercial now. early we're of of carbon of But at specific is for that other this any right direct it is point. with looking a have of topic topic in a on the or the focus stages I that

Pat Kenny

Okay.

Or terms So be XXXX frame, could this of the grid? leak time in Alberta still of assessing the carbon decision? and year into half first just

Ben Vaughan

pins speaking, a things they're time. generally over dates pick hard to whether at this year It's to think and strong at point. Patrick. cement It's themselves of to very early -- they're these on said, and like starting to very hard it's a next their I or in kinds put timeline, into have I I topics, But stages this don't view least -- as year.

Pat Kenny

then a And the small gas transaction saw we towards enough. in quarter. Fair Alberta

is business? years. as more how update if or Alberta you fit similar recycling a these right European asset guess, relative your midstream now for performing a say, to, So to, on portfolio hub I'm also storage long-term candidate your within view maybe, as just to an strategic say, curious get the And I assets recent

SamPollock

tackle that Patrick, maybe one. I'll

operations. say, have as As the we've not far the as I'd the operations Canadian of operations the we businesses, -- have strength as in much in seen, U.S. we

business, We more exceptional for do contractual forward. have our improved we'll business, we But pricing and California going interest is definitely see think much that and in instance. an Canadian business seen pricing the stronger

As the will far it, future, not sell. some we at it to as like done where fits, point It's we when that. is probably a it have don't would because we in and point, from at frame will look, that will we it sense business time and improve make derisk we can haven't the all but do to picked some But business, monetize. we a

Operator

Our last comes with question Credit from Suisse. Kuske Andrew

Andrew Kuske

thematic pick try of we on a maybe the But just big of address guess things I investing maybe question in your a water think your have some opportunities infrastructure, picture and global then on you themes I sort about social a it how stress spots. space big guys been you Is if healthcare, function a little could And historically all around to but overly a and the significant. dabbled broader a whether investors into long-term government kind just in that or of control, that on the you've morphs stuff. lacking? nothing be scale. just mean, question maybe that returns of education, very bit,

SamPollock

sort Sorry, you grasp Andrew, question? can didn't I just of quite restate that it.

Andrew Kuske

Yes.

degree parts thematic whether interest themes are the the around of much on investing, an or insufficient things? you to of social are on it the to stress in they really interest? poke water of you? for too is just Is relative not some Is infrastructure? I area certain around returns that's or control mean, to Are world? government other it's trying So Or opportunities bigger capital there what big to of you

SamPollock

healthcare today, -- say, We in them front or The and an the The time-consuming. difficult infrastructure. those Yes. challenge us. time a is opportunity lot have areas, actionable -- on question. social understand just it's of we I don't would framing I of is are spending whether

don't recapitalize that that a business, concentrated players, that also have -- and have social to amount and sector, finding say, looking, But see front the the today, lot with we underway. far huge really because air where fund they telecom has there's we another ways complex of are get healthcare, that initiatives as presence market sector are I'd time don't where been but may opportunities I as a few a help in world them. is the into thinking industry it's quite think, and sector today, products as explore. have spending of is data, they we capital to around way as new large the we to the quite where an about we interesting and We're also the around strong find of which the

Andrew Kuske

of That's core portfolio transactions want your actually creative we got the more to Okay. model does the then helpful. your the then into allocation, funds whatever be maybe flagship the helpful And context just call future? super that with broader very you've sort core, on in core ability them, and the maybe, of in to securing that plus, is

SamPollock

Look, absolutely.

structure lots we there. think investments us be low-cost fact I able powerful. or income unique a the of us very franchises out the So just and And call scale it it the it's conversation one let's that and a full capital and go is control the can to gives fact gives of of with playbook, discuss equity each with buyer and or that full counterparty transaction, credit into pools most our one large power, any

helpful. is it yes, So

Operator

for would to call for like I closing of out time are now remarks. Sam turn over Pollock We CEO, to the questions.

Sam Pollock

today to appreciate lot to that you winter look, and much. listen We the quarter. forward a had again We everyone the look operator. next speaking on we Thank who rest you Thank And the in. the enjoy we and call. Okay. hope us appreciate interest all of you, joined you to we questions, had of very

Operator

for This call. Thank conference concludes today's participating. you

now disconnect. may You

Brookfield Infrastructure Partners (BIP) 2 Feb 222021 Q4 Earnings call transcript