Q4 2021 Brookfield Infrastructure Partners LP Earnings Call

Speaker 1: Today, and thank you for seeing and by. Welcome to the Brookfield Infrastructure Partners LP, fourth quarter, 2021 results conference call and webcast. At this time, our participants are...

And thank you for sharing by welcome to the Brookfield infrastructure Partners L. P fourth quarter 2021 results conference call and webcast.

At this time all participants are in a listen only mode. After.

Speaker 1: After the speaker's presentation, there will be a question to answer session.

After the speaker's presentation, there will be a question and answer session.

Speaker 1: To ask a question during the session, you will need to press star one of your telephone. Please be advised that today's conversation is not over.

To ask a question. During this session you will need to press star one on your telephone.

Please be advised that today's conference is being recorded.

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Speaker 1: your current further assistance please press star zero. I would now like to hand the conference over to the speaker today. David Krant, Chief Financial Officer, please go ahead.

Now I'd like to hand, the conference over to your Speaker today, David <unk> Chief Financial Officer. Please go ahead.

Speaker 2: Thank you Shannon and good morning everyone. Thank you all for joining us for Brookfield Infrastructure Partners Fourth Corps, our ninth conference call for 2021.

Thank you Shannon and good morning, everyone.

Thank you all for joining us for Brookfield infrastructure Partners' fourth quarter earnings conference call for 2021.

Speaker 2: Introducing the David elephants cheap financial officer. .

As introduced David.

Financial officer of Brookfield infrastructure partners joining.

Speaker 2: Turning me today, Sam Paul at our Chief Executive Officer and then on our Chief Operating Officer. Following our remarks.

Joining me today, Sam Pollock, our Chief Executive Officer, and then our Chief operating Officer.

Following our remarks, we look forward to taking your questions at.

Speaker 2: At this time, I'd like to remind you that in responding to questions, as well as talking about our growth initiatives and our financial and operating performance, we may make forward-looking statements. These statements are subject to known and unknown risks, and future results may differ materially. For further information on known risks factors, I would encourage you to review our annual report on Form 20S, which is available on our website.

At this time I would like to remind you that in responding to questions and we're talking about our growth initiatives and our financial and operating performance. We may make forward looking statements. These statements are subject to known and unknown risks and future results may differ materially for further information on known risk factors I would encourage you to review our annual report on form 20-F, which is available on our web.

Right.

Speaker 2: Over the last two years, particular professor's cash flow has demonstrated tremendous resilience and sustainability, providing further validation of the attractiveness of the infrastructure sector of the math and class.

Now for the last two years Brookfield Infrastructure's cash flows has demonstrated tremendous resiliency and sustainability, providing further validation of the attractiveness of the infrastructure sector as an asset class in.

Speaker 2: 2021 be further enhanced the quality of our business by opportunistically deploying capital into several attractive investments in organic growth

In 2021, we further enhanced the quality of our business by Opportunistically deploying capital into several attractive investments in organic growth projects.

Speaker 2: Furthermore, the monetization of several mature businesses that strong valuations has generated significant liquidity to fund our growth initiatives at a low cost of capital.

Furthermore, the monetization of several mature businesses at strong valuations have generated significant liquidity to fund our growth initiatives and our low cost of capital.

Speaker 2: Consequently, work through the infrastructure as well positioned to continue to grow through the trajectory in the years ahead.

Consequently, Brookfield infrastructure is well positioned to continue its growth trajectory in the years ahead.

Speaker 2: We are pleased to announce that as a result of our strong financial and offering performance and robust liquidity position, our Board of Directors has approved a quarterly distribution increase of 6% to 54 cents per unit in 2022. This marks the 13th consecutive year of distribution increases, reflecting our positive note.

We are pleased to announce that as a result of our strong financial and operating performance and robust liquidity position. Our board of directors has approved a quarterly distribution increase of 6% to 54 cents per unit in 2022.

This marks the 13th consecutive year of distribution increases, reflecting our positive outlook.

Speaker 2: In addition to this distribution increase, our business achieves many other milestones over the past year, including solid performance across all of our operating sites that's resulting in our panic growth of 9%.

In addition to the distribution increase our business achieved many other milestones over the past year.

<unk> solid performance across all of our operating segments.

Organic growth, 9% deploying over $3 billion into growth initiatives, including the acquisition of inter pipeline, our IPL and a $13 billion privatization.

Speaker 2: We're hearing half of 2022's capital deployment through the two Australian utility acquisition.

Securing half of.

2022 capital deployment through the two Australian utility acquisitions.

Speaker 2: Generating 2 billion proceeds from the completion of 4-cell proofs.

Generating $2 billion of proceeds from the completion of for sale processes, and finally, raising almost $3 billion in capital markets insurance strong liquidity levels.

Speaker 2: And finally, raising almost $3 billion in capital markets ensuring strong liquidity levels.

Speaker 2: Now switching from accomplishments to our results for the year, we reported FFO or funds from operations of $1.7 billion or $354 per unit, a notable annual increase of 19% and 15% on a total FFO and per unit maintenance respect.

Now switching from accomplishments to our results for the year, we reported <unk> or.

Our funds from operations of $1 7 billion or $3 64 per unit and notable annual increase of 19% and 15% on a total and per unit maintenance respectively.

We ended the year on a very strong note during fourth quarter <unk> per unit of <unk> 97.

Speaker 2: We ended the year on a very strong note during 4th quarter SFO per unit of 97 cents, which exceeded the prior year by 13%, and reflects a pale ratio of 68%. Results were supported by...

Which exceeded the prior year by 13% and reflects a payout ratio of 68%.

Results were supported by strong growth from our base business. The full recovery from shutdown related effects experienced in 2020, and the significant contribution from almost 3 billion deployed and growth initiatives.

Speaker 2: This fall recovery from shutdown related effects experienced in 2020 and this significant contribution from over $3 billion to ploying growth in issue.

Speaker 2: Organic growth for the year, as I mentioned, was 9%, reflecting the initial benefits of elevated inflation levels, the commissioning of nearly $900 million in capital projects over the last year, and higher market-sensitive revenues driven primarily by increased demand for transportation.

Organic growth for the year as I mentioned was 9%, reflecting the initial benefits of elevated inflation levels. The commissioning of nearly $900 million in capital projects over the last year and higher market sensitive revenues driven primarily by increased demand for transportation services.

Speaker 2: Taking a closer look at our offer in performance by segment, starting with utilities, we generated FFO of 7505 million compared to 6509 million in the prior year.

Taking a closer look at our operating performance by segment, starting with utilities, we generated <unk> $705 million compared with 659 million in the prior year.

Speaker 2: Epiphobe growth on a scene for basis was an impressive 11%. This growth reflects inflation indexation, the commissioning of approximately 430 million capital into our rate base, and higher tax activity at our U.K. regulated distribution.

<unk> growth on a same store basis was an impressive 11%.

This growth reflects inflation indexation commissioning of approximately $430 million of capital into our rate base and higher connection activity at our UK regulated distribution business.

Speaker 2: This business recorded another solid period of sales activity, ending the year with a total of 322,000 new connections.

Business required another solid period of sales activity ending the year with a total of 322000 new connections. This was the company's best year of sales and was 10% higher than its record previously back in 2019.

Speaker 2: This was the company's best year of sales and was 10% higher than its record previously set in 2008.

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

Speaker 2: A residential infrastructure business continues its expansion through new product lines and geography.

Speaker 2: In addition to acquiring a leading German residential infrastructure business earlier in the year, in December we acquired a 60% interest in the second largest independent residential heating installer in the UK.

In addition to acquiring a leading German residential infrastructure business earlier in the year in December we acquired a 60% interest in the second largest independent residential heating installer in the UK.

And our existing operation in North America, we completed three follow on acquisitions in the fourth quarter. Most notable is the acquisition of a residential solar installation and battery storage solutions provider with an offer with operations and 70, United sending out the U S States.

Speaker 2: At our existing operation in North America, we completed three follow-on acquisitions in the fourth quarter. Most notable is the acquisition of a residential solar installation and battery store solutions provider within OPPRQ with operations in 7 out of the U.S.

Speaker 2: This strategic transaction strengthens our role in the transition of green energy and provides an additional avenue for deploying a rental product off.

This strategic transaction strengthens our role in the transition to Green energy and provides an additional avenue for deploying our rental product offering.

Speaker 2: Following this acquisition and our partnership with a leasing residential generator manufacturer, we are positioned to offer four complementary utility offerings under long-term inflation index contracts.

Following this acquisition and our partnership with the leading residential generator manufacturer, we are positioned to offer for complementary utility offerings under long term inflation indexed contracts.

At our Brazilian electricity transmission lines.

Speaker 2: At our Brazilian Electricity Transmission Lines, we recently exercised an option to acquire our drug ventures, 50% interest and 900 kilometers of operational lines.

I mean, that's the exercise of an option to acquire our joint ventures, 50% interest in 900 kilometers of operational lines.

Speaker 2: This increases the portfolio of lines that we own to approximately 2,400 kilometers.

This increase is the portfolio of land that we own approximately 2400 kilometers with.

Speaker 2: With construction of the initial set of lines now complete, the scalable platform has been significantly de-risked, leading us to launch a sales process for this portion of the project.

With construction construction of the initial set of lines now complete the scalable platform has been significantly derisked, leading us to launch a sales process for this portion of the business.

Speaker 2: The process is now underway and we expect to complete it in the second half of this year.

Process is now underway and we expect to complete it in the second half of this year.

Moving onto our transport segment, <unk> was $701 million, an improvement of nearly 20% compared with the prior year.

Speaker 2: Moving on to our transport segment, FFO was $701 million, an improvement of nearly 20% compared with the prior year.

Speaker 2: Results benefited from strong organic growth driven by higher volumes, inflationary tariff increases and a full year contribution from our U.S. LNG export terminal.

Results benefited from strong organic growth driven by higher volumes inflationary tariff increases and a full year contribution from our U S. LNG export terminal.

Our transfer segment as a significant beneficiary of the robot economic recovery in most of our investment markets.

Speaker 2: Our transport segment is a significant beneficiary of the robust economic recovery in most of our investment markets.

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

Speaker 2: Our rail networks continue to benefit from strong demand for bulk goods and commodities that underpin the global economy.

Speaker 2: Following its robust performance last year, our North American rail operation has experienced higher car loads as volumes are 8% ahead of the prior year, with improvements across most products.

Following this robust performance last year, our North American rail operation has experienced higher carloads as volumes are 8% ahead of the prior year with improvements across most product groups due to the essential nature of the business, we've been able to protect our margins across each of our operations by reflecting inflationary cost pressures in our tariffs.

Speaker 2: Due to the essential nature of the business, we've been able to protect our margins across each of our operations by reflecting inflationary cost pressures in our tariffs.

And our diversified terminal operations performance in the current environment continues to be robust, including record <unk>. During the fourth quarter results benefited from a number of positive tailwind, including improved volumes higher tariffs and congestion surcharges as well as inflation pass through reflected in rates.

Speaker 2: At our diversified terminal operations, performance in the current environment continues to be robust, including record FFO during the fourth quarter. Results have been at from a number of positive tailways, including improved volumes, higher tariffs and congestion surcharges, as well as inflation passes through reflected in rates.

Specifically at our U S. LNG export terminal, we continue to benefit from strong global demand and high LNG prices due to increasing exports to China and low storage levels, particularly in Europe .

Speaker 2: Specifically at our U.S. LNG export terminal, we continue to benefit from strong global demand and high LNG prices due to increasing exports to China and low storage levels, particularly in Europe . This favorable backdrop has facilitated the contracting of excess capacity under multi-year agreements at attractive rates.

This favorable backdrop and facilitated the contracting of excess capacity under multi year agreements at attractive rates.

Speaker 2: Additionally, construction of a six liquefax in train is progressing ahead of schedule and substantial completion is expected to be achieved in the first quarter of 2020.

Additionally, our construction of a six liquefaction train is progressing ahead of schedule and substantial completion is expected to be achieved in the first quarter of 2022.

Speaker 2: As a result of the mid-stream segment, total $492 million in 2021, an increase of approximately $200 million, or 70% compared with the prior year.

<unk> for the midstream segment totaled $492 million in 2021, an increase of approximately $200 million or 70% compared with the prior year.

Speaker 2: The Steptoons increase reflects the acquisition of IPL, which is completed in the fourth quarter.

Step change increase reflects the acquisition of IPO, which was completed in the fourth quarter.

Speaker 2: Current year results also reflect elevated commodity prices across our...

Current year results also reflect elevated commodity prices across our existing businesses.

Speaker 2: price environment and record store clients following extraordinary performance in the first quarter of the year. That same store broke 43% in 2020.

This price environment and record storage volumes following an extraordinary performance in the first quarter of the year, but at the same store growth of 43% in 2021.

Speaker 2: In October , we successfully completed the privatization of IPL, a high-quality Canadian instrument platform providing critical long-term.

In October we successfully completed the prioritization of IPL, our high quality Canadian midstream platform, providing critical long term infrastructure as a reminder, approximately 80% of the business is contracted with the majority of our activity is secured under long term cost of service arrangements with investment grade Counterparties.

Speaker 2: As a reminder, approximately 80% of the business is contracted with the majority of our activities secured under long-term cost of service arrangements within investment-grade counter parties where we take no commodity or volume exposure. The balance of the business has benefited from strong commodity prices.

We take no commodity or volume exposure.

The balance of the business has benefited from strong commodity prices with.

With respect to the Heartland petrochemical facility construction is now mechanically complete and commissioning activities are on track with a mid 2022 startup.

Speaker 2: Construction is now mechanically complete and commission activities are on track with a mid 2022 startup.

The data segment recorded <unk> $238 million in 2021, an increase of 21%.

Speaker 2: The data segment recorded FFL of $238 million in 2021, an increase of 21%.

Speaker 2: Results reflect the construction of 12,000 telephonic power sites across our portfolios in Indian France to accommodate mobile data growth and corresponding network densification required.

Results reflect the construction of 12000 telecom tower sites across our portfolios in India, and France to accommodate mobile data growth and a corresponding network densification requirements.

Speaker 2: Our highly contracted data transmission in storage businesses have also benefited from inflation and education and higher rates across the portfolio.

Our highly contracted data transmission and storage businesses have also benefited from inflation indexation and higher rates across the portfolio.

Speaker 2: At our fresh business, over 100 hours were added during the quarter, the second highest on record. The co-location of our built-to-suit tower portfolio increased further, giving growing demand for the country's major M&O and major M&O.

At our French business over 100 towers were added during the quarter second highest on record the co location of our build to suit tower portfolio increase further given the growing demand for the country's major immuno and major msos.

Speaker 2: Furthermore, the business continued to connect with Fiber to almost 50,000 new homes, the strongest quarter unwritten.

Furthermore, the business continued connected fiber to almost 50000, new homes, the strongest quarter on record.

Speaker 2: We continue to gain momentum with the expansion of our global data storage platform and reach several important milestones during the quarter.

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

Speaker 2: First, we secured a second greenfield location in Auckland, New Zealand to support incremental demand from the anchor tenant at its initial site in the country.

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

Speaker 2: We also acquired our first bite in the highly attractive market in Seoul in South Korea.

We also acquired our first site in a highly attractive market are sold in South Korea.

Speaker 2: in India and Europe we've been successful in these early stages of our land-based strategy to drive organic data center developments. And lastly in South America we can, we can mission a further 11, 9-a-lots of capacity in the last 12 months.

In India and Europe , we have been successful in the early stages of our land bank strategy to drive organic data center developments.

Lastly in South America. We can then we commissioned a further 11 megawatts of capacity in the last 12 months.

Speaker 2: Combine these capital expansion projects should double adjusted even for this operating group by the end of 2024.

Combined these capital expansion projects should double adjusted EBITDA for this operating by the end of 2024.

Before turning the call over to Sam I'd like to touch on the strength of our balance sheet.

With interest rates remaining at historically low levels, despite the onset of inflationary pressures.

Speaker 2: With interest rates remaining at historically low levels, despite the onset of inflationary pressures, the accelerated opportunistic issues is an actively secured, fixed rate debt with long-gated matured.

Celebrated opportunistic issuances and actively secured fixed rate debt with long dated maturities.

Speaker 2: This is reflected in our robust credit metrics in strong investment grade credit rating, which was reaffirmed at Triple D plus by S&P and December .

This is reflected in our robust credit metrics and strong investment grade credit rating, which was reaffirmed at triple B plus by S&P in December .

Speaker 2: A central bank now turns to policy normalization to combat rising rates. Our corporate and asset level balance sheets are significantly de-ridden.

Our central banks now turned to policy normalization to combat rising rates are corporate and asset level balance sheets are significantly derisked we have.

Speaker 2: We have only modest maturity over the next several years. In fact, it's less than 10% over the next 24 months, once we're moving normal course.

Only modest maturities over the next several years in fact, it's less than 10% over the next 24 months once we're moving normal course amortization.

Speaker 2: Additionally, approximately 90% of our term debt, excluding local currency debt in Brazil, is fixed rate with a remaining term across our business of eight.

Approximately 90% of our term debt, excluding local currency debt in Brazil is fixed rate with a remaining term across our business in eight years.

As I mentioned this year was active with respect to refinancing initiatives. During 2021 alone. We raised our secured commitments for a total of approximately $18 billion at the asset level with problems with the primary objective of refinancing near term maturities versus increasing leverage in our businesses.

Speaker 2: As I mentioned, this year was active with respect to refinancing initiatives. During 2021 alone, we raised or secured commitments for a total of approximately $18 billion at the asset level, with the primary objective of refinancing near-term maturities versus increasing leverage at a rate of $1.5 billion.

On our capital recycling program, we secured approximately $2 billion of net proceeds this year.

Speaker 2: On our capital recycling program, we secured approximately $2 million of net proceeds this year. Most recently in December , we signed a definitive agreement to sell our 50% owned Freehold Landlord Port in Victoria, Australia. Our share of proceeds is expected to be approximately $100 million, which is anticipated to close in the late first quarter.

Most recently in December we signed a definitive agreement to sell our 50% owned freehold landlord part in Victoria, Australia. Our share of proceeds is expected to be approximately $100 million, which is anticipated to close in the late first quarter.

Speaker 2: These activities resulted in ending the year with total liquidity in excess of $5 billion, of which $3.7 billion resides at the corporate level. Following the completion of the two secured Australian utility investments, which Sam will discuss momentarily, pro forma liquidity at the corporate level is approximately $3 billion.

Now these activities resulted in us ending the year with total liquidity in excess of $5 billion of which $3 7 billion resides at the corporate level.

Following the completion of the two secured Australian utility investments, which Sam will discuss momentarily pro forma liquidity at the corporate level, it's approximately $3 billion.

Speaker 2: provides us with a significant capacity to fund incremental new investment opportunities as they are secured this year. Thank you all for your time this morning. I'm out past the call over this day.

Provides us with significant capacity to fund incremental new investment opportunities and their secure this year.

Thank you all for your time this morning, I'll now pass the call over to Sam.

Okay. Thank you David and good morning, everyone.

Speaker 3: A Tade Colvin began with a few comments on the current MAC economic environment and its impact on our business.

Today's call will begin with a few comments on the current macroeconomic environment and its impact on our business.

Speaker 3: I'll then discuss some of the strategic initiatives we have underway and then conclude the call with our outlook for the year ahead.

Then discuss some strategic initiatives, we have underway and then conclude the call with our outlook for the year ahead.

Of central banks around the world suddenly a transition to tightening monetary policy to control rising prices.

Speaker 3: Now central banks, around the world, singly a transition to tightening monetary policy to control rising price.

Speaker 3: We thought it was a good opportunity to outline how inflation and rising interest rates may impact our business.

That was a good opportunity to outline how inflation and rising interest rates may impact our business.

Speaker 3: All else equal this economic environment is generally favorable for stable infrastructure businesses like ours.

All else equal this economic environment as journeys favorable for stable infrastructure businesses like ours.

Before exploring a tailwind and potential risks associated with elevated inflation higher interest rates.

Speaker 3: The force born in Telwyn and potential risks associated with elevated inflation and higher interest rates.

Speaker 3: We should purse caveat underlying assumptions that frame that out

We thought we should first caveat underlying assumptions that frame that outlook.

Speaker 3: Now first, to prevailing in place your environment, we think is a product of many factors, including pandemic-induced supply chain disruptions.

Our first to prevailing inflationary environment, we think is a product of many factors, including pandemic induced supply chain disruptions.

Stimulus and labor shortages.

Speaker 3: In addition though, the influences of equalization and with some referred to a green inflation or greenflation are expected to contribute to longer term inflation.

In addition, though the influences of Eagle organization, and what some referred to as Green inflation are green inflation are expected to contribute to longer term inflation.

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

Speaker 3: I did not expect current inflation to be transitory. I just lost this one year. As a number of factors will likely lead to a period of persistent inflation.

Speaker 3: However, we also don't anticipate a return to the excessive and long lasting inflation that occurred back in the 1970s.

However, we also don't anticipate a return to the excess of our long lasting inflation that.

[noise] occurred back in the 19 seventies.

Accordingly.

Speaker 3: Accordingly, this current period of elevated inflation ultimately stabilizes in the next few years as the Federal Reserve and other central banks raise interest rates and shrink to bounce.

Current period of elevated inflation should ultimately stabilize the next few years.

The federal reserve and other central banks raise interest rates and shrink their balance sheets.

Speaker 3: Assuming our time-or-rise and for inflation stabilization is not significantly off, this will result in a gradual but hopefully not dramatic rise interest rate over the next few years.

Assuming our time horizon for inflation stabilization is not significant significantly up this will result in a gradual but hopefully not dramatic rise in interest rates over the next few years.

Speaker 3: We think this view is consistent with many forecasts that show US 10-year tragedy reaching about 3% over the experience.

We think this view is consistent with many forecasts that show U S 10 year Treasury, it's reaching about 3% over this period.

Speaker 3: Although higher than the last few years, these expected levels are low in the historical context and can provide an accommodating market environment for high-tech contracted and well-capitalized businesses like ours.

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

Now this forecast in mind.

Speaker 3: We proceed elevated short term installation, acting as a tailwind for our...

We foresee elevated short term inflation and I think as a tailwind for our business.

Speaker 3: as a significant portion of our business has inflation dexation. Now while we may not be fully inflated from rising costs, our inflation link revenue

<unk> portion of our business has inflation indexation.

While we may not be fully insulated from rising costs are.

Our inflation linked revenues and high margin businesses should largely insulate impact.

Speaker 3: Today, approximately 70% of our revenues are adjusted by local inflation.

Today, approximately 70% of our revenues are adjusted by local inflation indices.

Speaker 3: Disbenefit, largely impact our utilities, transport, and data investments, where between 80% and 90% of revenues are contracts of index.

Benefit largely impact or utilities transport data investments were between 80% to 90% of revenues or contracts are indexed to inflation.

Speaker 3: Together with a largely fixed cost structure and prudent cost management strategy

Together with our largely fixed cost structure and prudent cost management strategies.

Speaker 3: The compounding impact of inflationary revenue increases should drive operating leverage across our high-margin critical infrastructure.

Compounding impact of inflationary revenue increases should drive operating leverage across our high margin critical infrastructure.

The economic impact of inflation is not without its consequences, namely higher interest rates.

Speaker 3: The economic impact from a patient is not without its consequences. Namely, higher interest.

Speaker 3: Fortunately, our direct interest rate exposed you to near-term movements is minimal and effectively mitigated as David talks.

Fortunately, our direct interest rate exposure to near term movement is minimal and effectively mitigated as David talked about.

We've always employed a conservative approach to financing our business through long dated maturities are mostly fixed rate pricing. In addition, we are actively extended maturities and opportunistically secured long term fixed rate debt to take advantage of the low interest rate environment. We just went through.

Speaker 3: We've always employed a conservative approach to financing our business through long-dated maturities and mostly fixed rate price.

Speaker 3: In addition, we have actively extended maturities and optionistically secured long-term fixed rate debt to take advantage of the low interest rate environment we just

Speaker 3: In summary, our expectations for continued high levels in place for the next few years to be countered with modest increased interest rates, which we were so in a net net positive environment for our business.

In summary, our expectations for continued high levels of placement for the next few years to be countered with modest increase interest rates, which will result in a net debt positive environment for our business.

Speaker 3: Now, shifting to the investment activity for the quarter.

Now shifting to the investment activity for the quarter.

Speaker 3: pleased to report that we secured two attractive utility investments representing, as David mentioned earlier, approximately 50% of our deployment target for this year.

Pleased to report that we secured two attractive utility investments representing as David mentioned earlier, approximately 50% of our deployment targets for this year.

2022.

Speaker 3: This includes OZNet, which is a portfolio of high quality utility businesses in Victoria, Australia that provides electricity and gas transmission and distribution services across various critical networks.

This includes net which is a portfolio of high quality utility businesses in Victoria, Australia that provides electricity and gas transmission and distribution services across various critical networks.

Speaker 3: closing of our investment is on track after having received shareholder approval last week and is expected to occur in mid-February.

The closing of our investment is on track after having received shareholder approval.

Last week and is expected to occur in mid mid February .

We're excited to own a highly coveted perpetual regulated utility franchise is well positioned to participate in the de carbonization of Victoria's economy to me, it's legislated 2015 net zero target.

Speaker 3: We are excited to own a highly coveted perpetual regulated utility franchise that is well positioned to participate in the decarbonization of Victoria's economy to meet its legislated 2050 net zero target. VIP expects to invest approximately $500 million.

<unk> expects to invest approximately $500 million.

And in December .

Speaker 3: We agreed to acquire a 50% interest in Telehub, a leading provider of electricity smart meters in Australia and New Zealand.

We agreed to acquire a 50% interest in the Intel at hub, a leading provider of electricity smart meters in Australia New Zealand.

Speaker 3: Total equity for the investments of approximately $870 million with fifth share of being approximately 215 million.

Total equity for the investments approximately $870 million with bip share being approximately 215 billion.

Speaker 3: The business has 1.2 million meters leased and contractual relationships with energy retailers that cover 99% of the consumer market.

The business had $1 2 million meters leased and contractual relationships with an energy retailers that covered 99% of the consumer market.

Speaker 3: This is an asset class that we are familiar with, as we held a smart meter per four within our UK Regulate Disputes and Business for many years.

This is an asset class that we are familiar with as we held a smart meter per four within our U K regulated distribution business for many years.

Speaker 3: We believe that point of consumption metering will continue to be an essential component of the electricity network with digitalization and decarbonization goals accelerating the deployment of smart meters in the region.

We believe that point of consumption metering will continue to be an essential component of the electric.

Electricity network with digitalization of de carbonization goals accelerating the deployment of smart meters in the region.

Speaker 3: We expect to complete this transaction in late Q1.

We expect to complete this transaction in late Q1.

I'll conclude my remarks with a few comments regarding our outlook for the market and for Brookfield infrastructure.

Speaker 3: Now I'll conclude my remarks to the few comments regarding our outlook for the market and for Brooklyn infrastructure.

Notwithstanding the tailwind for our business as we've seen in recent weeks expectations of quantitative tightening in a rising interest rate environment.

Speaker 3: As we've seen in recent weeks, expectations of quantitative tightening and a rising interest rate environment have caused significant stock market volatility.

Of course significant stock market volatility.

Speaker 3: this volatility has been most pronounced as it relates to the technology sector where we've seen a large pullback in valuations to start the year.

This volatility has been most pronounced.

As it relates to the technology sector, where we've seen a large pullback in valuations to start the year.

Although our unit price will undoubtedly move with broader market sentiment.

Speaker 3: Although our unit price will undoubtedly move with broader market sense.

Speaker 3: We believe the underlying value of our privately owned infrastructure assets will be much less impacted.

We believe the underlying value of our privately owned infrastructure assets will be much less impacted.

Speaker 3: private buyers of infrastructure assets, especially those for high-quality, de-risked essential infrastructure, take a longer-term view and are less influenced by short-term economic conditions or censuses.

Buyers of infrastructure assets, especially those for high quality Derisked essential infrastructure take a longer term view and are less influenced by short term economic conditions or sentiment.

Yeah.

Speaker 3: Like most, the last two years posed many challenges both for our people and our business.

Like most of the last two years post many challenges both for our people and our businesses.

Speaker 3: Although we're proud of the accomplishments of the last year, we are feeling equally optimistic about the year ahead.

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

We are pursuing opportunities to execute our full cycle investment strategy, having identified several mature businesses that can be monetized a strong valuations.

Speaker 3: We are pursuing opportunities to execute our full cycle investment strategy, having identified several mature businesses that can be monetized at strong valuation.

Speaker 3: We've already secured half of our $1.5 billion annual deployment target, and these transactions are expected...

We've already secured half of our $1 5 billion dollar annual deployment target.

These transactions are expected to close in the coming weeks.

Speaker 3: We have a high degree of confidence regarding achieving the balance of the deployment target based on the pipeline of advanced opportunities our global teams are pursuing.

So we have a high degree of confidence regarding achieving the balance over deployment targets based on the pipeline of the best opportunities our global teams are pursuing and.

Speaker 3: And we have strong liquidity that provides us the ability to pursue and fund these new investments and meet our target returns.

And we have strong liquidity that provides us the ability to pursue and funding new investments and meet our target returns.

Speaker 3: Now that concludes my remarks. I'll now pass it back to the operator to open the line for Q&A.

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

Speaker 1: Thank you. As a reminder, to ask a question, you will need to press star 1 on your telephone. To withdraw your question, press the down key. Please stand by while we compile...

Thank you. So a reminder to ask a question you will need to press star one on your telephone.

Joe Your question press the key please.

Please stand by while we compile the Q&A roster.

Speaker 1: Our first question comes from Sherilyn Radborn with PE Securities. Your line is open.

Our first question comes from Cherilyn Radbourne with TD Securities. Your line is open.

Thanks, very much and good morning.

Speaker 4: In terms of the expected net tailwind from inflation, I was hoping you can give us a feel for the level of local inflation that you're experiencing around the world in early 2022 and where you think that will ultimately settle out, which I take it based on your letter, maybe at a higher level than what we've become used to.

Good morning.

In terms of the expected tailwind from inflation was hoping you can give us a feel for the level of local inflation that you're experiencing around the world in early 2022, and what do you think that will ultimately settle out which I take it based on your letter maybe at a higher level than what we've become used to.

Hi, Cherilyn, maybe I'll start and then.

Yeah.

You know, Dave or bad maybe you can jump in to add more color.

Speaker 3: Dave or Ben, maybe you can jump in to add more color.

Okay.

The.

There's.

Very levels of inflation around the world.

Speaker 5: varying levels of inflation around the world. The highest levels, you know, have been in South America, and we've seen the benefit of those come through our gas transmission business and toll roads. And those are in the high single digits. And in the case of our gas transmission business, we actually had double-digit inflation run through that business because it also reflected the effects of currency.

The highest levels it had been in the South America, and we've seen the benefit of those come through our gas transmission business in toll roads, but those are in the high single digits and in the case of.

Our gas transmission business, we actually had double digit.

<unk> run through that business because it also reflected the effects of currency.

Speaker 5: In other parts of the world, Europe , North America, you know, the impacts aren't quite as pronounced. They tend to be sort of anywhere between.

In other parts of the World Europe North America.

So the impacts aren't quite as pronounced they are they tend to be sort of anywhere between.

3% to 7%, let's say, but I I think.

Speaker 5: 3-7% let's say, but I think one of the things you should take into account is that there is a bit of a lag to when we receive the full impact of these indexations. A lot of the

One of the things you should take into account is that there is a bit of a lag to when we receive the full impact of these indexation. So a lot of the.

Speaker 5: Contracts, you know have basically a year delay before we see the impact So I think a lot of the benefits of the indexation are actually still in the future We've seen some roll in this year, you know, they tend to happen at different points in the time in time But I think the full benefit Actually will probably come later this year or next year. In fact As far

Contracts are.

You'll have basically a year delay before we see the impacts so I think a lot of the benefits of the indexation are actually still in the future. We've seen some roll in this year, you know that they tend to happen at different points in time and time, but I think the full benefits are actually will probably come later this year.

Year or next year in fact.

As far as.

Speaker 2: You know, I can't really say what the numbers would be there, but I don't know if you have anything to add, Dave, or... Yeah, I think if you look at Asia Pacific for our business, Sherilyn, Australia's been pretty stable. It's, you know, in the low end of SANS range for the three or four percent, and India's been actually around the four to five percent. So, closer to historical levels, and there's a variety of factors from stimulus to policy that have caused that. So, I think that gives you a pretty good lay of the land for our global business. Yeah. And, you know, I think, you know, if you look at Asia Pacific for our business, Sherilyn, Australia's been pretty stable. It's, you know, in the low end of SANS range for the three or four percent, and India's been actually around the four to five percent.

Asia.

I can't really say, what the numbers would be there, but I don't really have anything to add David Yeah. I think if you look at Asia Pacific business Cherilyn.

Australia has been pretty stable on the low end of Sam's range around that three or 4% in India. It's been absolutely around the 4% to 5% so closer to historical levels.

And there's a variety of factors from stimulus to policies have caused that so I think that's that gives you a pretty good lay of the land for our business.

Speaker 4: Perfect. That's helpful, Color. And then it sounds like you've got a good head start on your 2022 capital deployment target, but maybe you can give us a bit more color on your deal pipeline, just including the areas of emphasis by segment and geography.

Perfect that's helpful color.

And then it sounds like you've got a good head start on your 2022 capital deployment target, but maybe you can give us.

A bit more color on your deal pipeline.

The areas of emphasis by segment and geography.

Sure Oh type of that wood Charlotte.

Speaker 6: I'll tackle that one, Charlotte.

The.

Speaker 5: I'd say the pipeline is actually quite robust at the moment with opportunities in all regions and in all sectors.

I'd say the pipeline is actually.

Quite robust at the moment.

With opportunities.

In all regions and in all sectors. So.

Speaker 5: So, and I'd say that's been the case for the past year or so. We have, we've seen sort of a broad-based.

And I'd say that's been the case.

For the past year or so we've had we've seen sort of a broad based.

Speaker 6: recovery. And so, you know, there's the usual

Recovery.

And so there's the usual.

Speaker 5: called secular movements from data where, you know, there's just a huge cap of deployment going on so, you know, we are seeing opportunities across towers and fiber-optic systems.

It's called secular.

Movements from data were just such a huge capital deployment going on so.

We are seeing opportunities across towers and fiber optic systems.

Speaker 5: Transportation is probably the one area where, you know, we've seen an increase in activity over the last year, both as it relates to, you know, transportation and, you know,

Transportation is probably the one area, where we've seen them.

Increase in activity over the last year.

Both as it relates to.

Speaker 6: airports as well as roads.

Airports as well as.

Our approach.

And then.

Speaker 5: As it relates to midstream, you know, there remains, you know, we think some interesting opportunities. We have seen a recovery in some of the valuations of midstream assets with the rising commodity prices. But there, you know, I think we'll see a number of opportunities surface there as, you know, this sector becomes underinvested due to ESG wins.

As it relates to midstream there yet there remains.

We think some interesting opportunities we have seen a recovery in some of the.

Valuations of midstream assets with the rising commodity prices.

But there I think.

We'll see.

Number of opportunities surface. There as you know this sector becomes under invested due to ESG wins.

Speaker 5: And then, you know, we continue to look for opportunities in the utility sector that can benefit from the decarbonization and electrification of the grid around the world. And you know, as far as regions...

And then we continue to look for opportunities.

In the utility sector that.

Can benefit from the decarbonization and electrification of our of the grid around the world and you know as far as regions.

Probably if I had to say probably most of our deal pipeline is in North America, and Europe , but we do have.

Speaker 5: If I had to say, probably most of our deal pipeline is in North America and Europe , but we do have a couple of opportunities in other markets such as South America as well as the Middle East.

A couple of opportunities.

In other markets.

Such as South America, as well as the Middle East.

Very helpful. Thank you for the time.

Thank you.

Our next question comes from.

Speaker 1: Our next question comes from, with the RBC Capital Markets, your line is open.

Do you see capital markets. Your line is open.

Speaker 7: Good morning. Thinking about your outlook for the business, the results and expectation for M&A activity, can you just frame all of that against the decision to increase the distribution by 6%?

Hey, good morning.

Thinking about your outlook for the business the results and expectation for M&A activity can you just frame.

All of that again.

The decision to increase the distribution by 6%.

Speaker 8: I got to our rubber hey, it's David here. One problem I think.

I'm sorry, Robert.

Hum.

There are a number of factors that go into our and recommendation on our board's approval of our distribution policy you've outlined a few of them obviously.

Speaker 8: There are a number of factors that go into our recommendation or our board's approval of our distribution policy. You outlined a few of them, obviously. The probe outlook for the business.

The outlook for the business.

Speaker 2: We're very optimistic. We are operating in a good period with strong macroeconomic tailwinds, so that's certainly favorable.

Well there is very optimistic.

Operating in a good parenting strong macro economic tailwind so that that certainly all the other things that we consider obviously.

Speaker 8: The capital needs within our business, we do have the largest backlog in our history. Today we have a number of exciting projects that we're funding as well. And that factors in obviously to our liquidity levels, which is, you know, the second main consideration, thirdly is the pale ratio. I think having that, we're returned to the high end of our target range is an important consideration for the business by 4 or 2. So when we balance all three of those aspects, we got 6% in the current environment. It was a very appropriate level to set up the dividend effect.

The capital needs in our business, we do have the largest backlog in our history. Today, we have a number of exciting projects that we're funding as well and that factored in obviously to our liquidity level, which as you know the second main consideration and thirdly, the payout ratio I think having that.

Return to the high end of our target range is an important consideration for them.

So when we balance all three of those aspects, we got 6% and in the current environment is a very appropriate level of dividend.

Gotcha.

And just in terms of framing that against prior years.

Speaker 7: and just in terms of framing that against prior years.

Yes.

Speaker 7: By all accounts, it certainly sounds like they're very optimistic and as more optimistic end is where you've been in prior years, is there a concerted effort then to be a little bit more conservative, you know, to pay a ratio and liquidity?

By all accounts it certainly sounds like you're very optimistic.

And as more optimistic and Thats, where <unk> been in prior years is there a concerted effort than to be a little bit more conservative payout ratio and liquidity.

What was that.

Speaker 7: kind of starting to be a little bit more conservative than you would have been previously.

Kind of trying to be a little bit more conservative than you might would have been previously.

Speaker 5: No, I think maybe you're trying to read too much into the increase. I think...

No I look I think maybe youre trying to read too much into it.

Two the increase I think we take a longer term approach when we look at our dividend.

Speaker 5: You know, we take a longer term approach when we look at a dividend increase. So some years, you know, we might be higher than people expect because they all look maybe as robust and other years maybe it's not as high given the enthusiasm we have for the business. I think, you know, what we came up with was as David mentioned.

Dividend increases so some years.

We might be higher than people expect because they all look maybe not as robust in other years, maybe it's not.

Not as high given the enthusiasm we have for the business I think.

What we came up with was as David mentioned sort of about taking a longer term approach.

Speaker 5: sort of a balance, taking a longer-term approach of, you know, where we see the world, our capital needs, as well as where we want to be from a payout ratio perspective.

Where we see the world our capital needs as well as where we want to be from a payout ratio perspective.

Speaker 5: And we were probably a little higher on the payout ratio the last couple of years and we want to get back to the level where we've generally operated throughout our inception, so since inception. So I think we're now back in that zone. We feel good about that. And in the coming years, if we continue to overperform, then maybe we'll come out with higher dividends.

We were probably a little higher on the payout ratio. The last couple of years and we wanted to get back to the levels, where we generally operated.

Throughout our our inception, so our since inception so.

I think we're now back in that zone, we feel good about that.

And in the coming years, if we continue to over perform than maybe it will come out with higher dividend increases.

Got it.

Speaker 7: Got it. If I can just finish some questions on Interpipeline, just now that you've had some more time to ask that, just some overall thoughts on what you've got, anything that surprised you positively or negatively, and then...

I can just finish these questions on I'm into your pipeline just now that you've had some more time, yes at some overall thoughts on what you've got anything that surprised you positively or negatively and then.

Anything you can give us on what you might like to give the commodity exposed NGL assets, including Heartland.

Speaker 7: Anything you can give us on what you might like to do with the commodity exposed NGO assets, including heartless.

Speaker 5: Maybe I'll start with just some general impressions.

Okay, maybe I'll start.

But just some general impressions.

Speaker 9: And then I'll turn it over to to fan maybe just give an update on the business and how we, how we see the commissioning of Heartland going.

And then.

I'll turn it over to Ben maybe just give an update on the.

The business and how we are how.

We see the commissioning of Heartland going.

Speaker 9: You know, first of all, I think as far as the investment, um,

First off I think as far as the investment.

Speaker 9: Yeah, we feel very good today where we sit with both the investment thesis and timing around.

Yeah, we feel very good today, where we sit with both the.

Investment thesis and timing around the transaction.

Speaker 5: We are benefiting currently by a very strong commodity environment that's helping our customers and helping us with some of the merchant related component of our refugees dreams. So those are all great components or initial results from the acquisition.

We are benefiting.

Currently.

By a very strong commodity environment, that's helping our customers and helping us with our.

You know some of the.

Merchant related component of our revenue streams.

So those are all.

Great.

Components of our initial results from the acquisition.

Speaker 5: Um, you know, we went into this knowing that we would have to execute.

We went into this knowing that we would have to execute.

Speaker 10: very quickly, you know, a re-energization, I'll say, of the operations both from a management perspective and strategic perspective.

Very quickly.

A.

Pretty energized nation, I'll say of of the operations, both from a fashion perspective and strategic perspective.

Speaker 9: Where well under on our way inieszEERING that And

We're well underway on our way in achieving that.

Speaker 9: We've done this before and we're confident we...

We are we've done this before and we're confident we can.

Speaker 9: You know, put in place the right culture in the business. There are lots of good people within the company that we think will embrace it. And we're optimistic about the business going forward. Maybe just, you know, I'll pause there. Maybe I'll spend just talk a little bit about, Harland and other parts.

You'll put in place the right culture and the business there are lots of good people within the company.

That a typical embrace it and we're optimistic about the you know the business going forward and maybe just a pause there maybe as Ben just talked a little bit about.

Hartland and.

Other parts of the.

Yeah.

Yeah, Hi, Robert It's Ben here.

Speaker 11: On Heartland, as we outlined in the note, the central utility hub is now complete and commissioned. So, on-site, all of the mechanical works are complete and we're into a commissioning phase. That phase will probably go to the end of Q2, so we'll have a start-up in late Q3.

On on Heartland, I think as we outlined in the in the note.

You know the central utility hub is now complete and commissioning so onsite all of the mechanical work are complete and we're into a commissioning phase.

That phase will probably go to the end of Q2. So we'll have a start up in late Q2.

Speaker 11: and early Q3. So, you know, all the mechanical risks are behind us. And on commissioning, you know, we have very detailed plans to commission the assets and be mobilized on the site over time.

In early Q3, so all the mechanical risks are are are behind us.

And commissioning we have very detailed plans to commission the assets and demobilize on the site over time.

Speaker 11: in line with our plans. So, you know, we had our own expectations when we underwrote the asset, and so far there've been no material surprises. So, as I mentioned, we expect to bring the plant into production in Q3. And overall, from a commercial perspective, from off takers, we've had no surprise either. There is a lot of market receptivity to the startup of the plant, and so both on the physical side and on the commercial side, we're in good shape for Harvard.

In line with our plans.

So you know we had our own expectations, when we underwrote the asset and so further but knows no material surprises.

So as I mentioned, we expect to bring the plant into production in Q3 and overall from a commercial perspective from off takers. We've had no surprise either if there is a lot of market receptivity to the startup of the plant and so both on the physical side and on the commercial side, we're in good shape for Heartland.

Speaker 7: That's great. Just quickly on Heartland, just wondering what not significant means to you, I don't know if that's percentage-wise, in terms of the capital cost statement that you just put out with respect to Heartland.

That's great just quickly on Heartland, just wondering why not significant.

It means to you I don't know that's percentage wise in terms of the capital cost statement.

You just put out.

In respect of Heartland.

Capex.

Speaker 11: Sir, I don't know exactly what you're referring to, but but as I said, for the plans that we had on underwriting, we've had no, you know, no material surprises either in terms of time or or or budget or bring the plant online in the time frame that we had planned, which, as I said, was towards the end of Q2 early Q3. So just no surprises.

So Robert I don't know exactly what you're referring to but as I said for the plans that we had on underwriting we've had no no material surprises either in terms of time or or or budget or bring the plant online in the timeframe that we had planned which.

As I said was towards the end of Q2 early Q3, so just no surprise.

Speaker 7: Okay, got it. Yeah, it's just a statement that Interpipeline had in a press release. Presumably, you would have blessed that. But okay, that's great. Thanks for the color.

Okay got it yeah, it's just a statement that into a pipeline in a press release, presumably you would have lost that but.

Okay. That's great. Thanks for the color.

Alright. Thanks.

Excellent 10 comes from Robert <unk> with CIBC.

Speaker 1: Next question comes from Robert Cattelier with CIVC.

Speaker 12: Hi, good morning. I just wanted to start with the inflation. Now you've been very clear about your views on inflation, including in today's release in your comments, but now perhaps there's less consensus in the marketplace. So I'm curious about the businesses where you don't have inflationary increases in better than your contracts or indexed. How's the customer you've been in securing place?

Hi, good morning.

Just wanted to start with the inflation you've been very clear about your views on in place, including in today's release in your comments, but.

Perhaps there's less.

That's in the marketplace. So I'm curious about the businesses, where you don't have them in.

Our placement rate increases embedded in your contracts or index how successful.

First of all have you been in securing price increases.

Yeah, I can start with that and feel free.

Speaker 8: I can start and then feel free to layer on any added color. So as we highlight Robert and you know well, 70% of our business is...

To layer on any added color.

We highlight Robert and you know well about 70% of our business is.

Speaker 2: you know, linked to, indexed, or contractually escalated by inflation each year, so that is obviously the vast majority of our business.

Linked to indexed or contractually escalated by inflation each year. So that is obviously the vast majority of our business. There's a few.

Speaker 2: where we don't have that power. But I'd say, if we look at our segments, and as we highlight in the letters, generally in our midstream businesses where you don't have that contractual escalation. But I'd say the benefit of what we've seen in our business today is that these pipelines are gathering and processing facilities. They're all pretty much fully utilized in the instance of NGPL for sure, that these customers are competing on price, on renewals for that incremental capacity. So we've actually been successful in securing.

Where we don't have that power, but I'd say, if we look at our segments.

Ill advised generally in our midstream businesses, where you don't have that contractual escalation, but I'd say the benefit of what we've seen in our business today. In these pipelines are gathering and processing facilities are all pretty much fully utilized immune Cincinnati golf for sure that these customers are competing on price on renewals for that incremental capacity.

So we've actually been successful in securing rates that are certainly slightly ahead of where they would have been renewing and do reflect some inflationary price.

Speaker 2: rates that are certainly slightly ahead of where they would have been renewing at, and you know, do reflect some inflationary price pressures.

Pressures as well as your interest.

Speaker 8: limited supply pressure that you have in the midstream space today. So I think we've been pretty successful in passing those through. So you're right, it's conservative and when we only highlight that there's only 70% that are contractually escalated, I think we've seen our experience.

Limited supply pressure than you have in the midstream space today. So I think we've been pretty successful in passing officers. So you're right. It is conservative and when we only highlight that theres only 70% that are contractually escalate I think we.

We have seen in our experience when we.

Speaker 2: owning essential infrastructure you tend to have that benefit to pass on prices as renewals come up in those other

Owning our central infrastructure, you tend to have that benefit to pass on prices as renewals come up in those other businesses.

Speaker 12: Okay, thanks for that. And my second question has to do with the EnterCare looks like her.

Okay. Thanks for that and my second question has to do with.

Curve looks like or.

Speaker 12: accomplished a lot so far, adding a number of new product lines and geogurgers. So just curious about future growth. How much more room is there to increase the product lines in that portfolio versus geographic expansion? And, you know, what type of other product lines do you envision adding? Maybe one way to address the other growth of that vehicle is, you know, what level of capital are you expecting to deploy on token acquisition? As you continue to build platforms.

Call. This a lot so far I think a number of new product lines and geographies. So just.

Curious about the future growth how much more room is there to increase the quota.

Our clients in that portfolio versus geographic expansion.

What type of other product lines and envision, adding maybe one way to address the AR.

The growth of that vehicle as well.

What level of capital.

Are you expecting to deploy on tuck in acquisitions and.

Is it continuing to build the platform value there.

Speaker 5: So maybe I'll, I'll take that one on. So...

Ill.

I'll take that one.

<unk>.

So you know to district two to recap we are.

Speaker 9: To recap, when we bought Entercare, effectively the business was primarily a Canadian business. They had bought a business in the U.S. and started expansion. So geographically, it was largely Canadian.

When we bought it or care.

You know effectively.

The business was.

Primarily a Canadian business.

It had but our.

Our business in the U S and start expansion so geographically it was a.

Largely Canadian small position.

Speaker 9: in the U.S. selling water heaters and getting into HVAC. So, two products.

Positioned U S selling body ears, and getting into HVAC, so two products.

Speaker 9: You know, what we've done in our playbook that we've been executing and copying as much as we can from BUK and other businesses that we have is, you know,

What we've done in our playbook that we've been executing.

Copying as much as we can from a b U K and other businesses that we have.

Is yep.

Speaker 9: taking what we've been successful at here in Ontario and in Canada and applying that to other regions. So we've now expanded to Europe and we now operate in the UK and Germany and our goal would be to have businesses all across Europe .

Taking what we have been successful at here in Ontario, and and at Canada.

And applying it to other regions. So we've.

Now expanded to Europe , and we now operate in the U K into Germany, and our goal would be to have businesses all across Europe .

Speaker 9: In addition to that, our market share in the U.S. is single digit, and so the ability to expand across different states and to grow in that market is quite substantial. It's a highly fragmented market environment.

In addition to that.

You know our market share in the U S is single digits and so the ability to expand across different states and to grow in that market. It is quite substantial it's a highly fragmented market environment.

Speaker 6: And so the geographic opportunity is substantial still. We're nowhere near a level that we'd say is saturated. And then, you know, we've increased the breadth of products now by adding both solar product as well as, you know,

And so the geographic opportunity is substantial still but we're nowhere near a level that we'd say is saturated.

And then we.

We've increased the breadth of products now by adding both.

Both the solar product as well as.

Speaker 9: the generators. And so that takes advantage of the distribution capabilities that we have. So we've got the four products. I'd say today we don't have another product that's in the R&D stage yet, but I think we will hopefully find another one. Geographically, we're looking to expand within both Europe and the rest of the world.

The generators.

And and so that takes advantage of the distribution capabilities that we have so we've got the four products I'd say today, we don't have another product that's.

In the R&D stage, yet, but I think we will hopefully find another one.

Geographically, we're looking to expand within both Europe and.

Speaker 9: and the US. We are looking at taking the model to our utility business down in South America in Columbia. And so that's a further expansion of the business model.

And the U S. We are looking at taking the model to our utility business down in South America and in Colombia, and so that's a further expansion of the business model.

And and as far as what that means in capital I would say we've done it on both a M.

Speaker 9: And as far as, you know, what that means in capital, I would say, you know, we've done it on both a.

Speaker 9: Capital light and capital heavy basis most of the investments so far have been quite modest from a dollar perspective

Capital light and capital heavy basis.

Most of the investments so far have been quite modest from a dollar perspective.

Speaker 9: but they do require capital. You know, when we expand using the dealer model, that's a capital-like approach where we've entered into relationships with other parties where we can buy their rental streams based on a predefined criteria. And we'll look to execute that, you know.

But they do require capital.

When we expand using the dealer model, that's a capital light approach, where we've entered into relationships with other parties, where we can buy their rental streams.

On a pre defined criteria.

Hmm.

We will look to execute that.

And all the different regions.

Speaker 9: And to the extent that there is a large business opportunity to tack onto this, given the success we've had and what we think is a much larger opportunity, we'll look at that as well. So today...

To extent that there is a large.

The business opportunity to tack onto this.

Given the success, we've had and what we think is a.

A much larger opportunity.

Look at that as well so.

Today.

Speaker 9: All the different investments in our pipeline are relative.

All of the different.

Investments in our pipeline are relatively small from a bid perspective, but we are looking for some large tuck ins that could really step changes business as well.

Speaker 9: small from a bit perspective, but we are looking for some large tokens that could really step changes business as well.

Yeah, that's very helpful color. Thank you very much.

Speaker 1: Our next question comes from Frederic Bastien with Raymond James. Your line is open.

Our next question comes predict Patheon with Raymond James Your line is open.

Yes.

Good morning, guys.

Speaker 13: You've done a good job deploying capital into high-return assets over time and you've been generally agnostic about the end markets that these assets fall under. But I recall you targeting a long-term FFO mix that was sort of evenly distributed across your four operating platforms.

You've done a good job deploying capital into high return assets over time, and you've been generally agnostic about the end markets that these assets fall under.

But but I recall, you were targeting a long term at a full mix that it was sort of evenly distributed across your four operating platforms at least that's what your.

Speaker 13: you're shooting for. That leaves data as the one business that seems to be still subscale despite the nice growth we've seen in recent years. Can you comment on your ambitions for that particular segment and whether those long-term goals are still valid?

You're shooting for.

And that leaves data is the one business that seems to be still a subscale.

That's a nice growth we've seen in recent years can you comment on sort of your ambitions for that particular segment and whether or not those long term goals still are still valid.

Yeah, Hi, Fred and thanks for the question.

Speaker 14: Look, I think the...

Yeah look I think the.

Speaker 9: Our expectation would be that given the amount of deal flow that we see in the data sector that over time, you know, it's, you know, it's scaled within our business, we'll get to a spot where it's at least on par and maybe, you know, down the road, who knows, maybe exceed some other segments within our business. Which it was a museum.

Our expectation would be that given the amount of deal flow that we see in the data sector that overtime.

It's oh its scale within our business will.

We will get to a spot where it's oh at.

At least on par and maybe down the road, who knows maybe exceed some other.

Segments within our business.

Speaker 9: You know, I think part of the fact is, you know, we have been in the other segments, you know, for a long time and so have a lot of historical investments within the, you know, midstream and transportation and utility sectors. So it just will take some time before we see that shift that reflects, you know, the emergence of data as an infrastructure sector.

I think part of the fact is yeah, we have been in the other segments you know for a long time and still have a lot of historical.

Investments within the midstream and.

Transportation and utility sectors.

It just will take some time before we see that shift.

Shift that reflects the emergence of data as it infrastructure sector.

But you.

Speaker 9: As we look at our pipeline for the last couple of years,

You know as we look at our pipeline.

For the last couple of years Yep.

Speaker 6: Data has always been sort of, you know...

Data has always been sort of.

A significant component of it and it's an area we're focused on them, but the only caveat that limits our ability to grow it quicker is the fact that there is a fair amount of competition for these assets and we are value investors. So we need to pick our spots.

We can earn the right risk adjusted returns.

Speaker 9: So we will look to summarize. We are looking to grow it, we will grow it, but we're not gonna do it in a way that damages our overall returns.

So we.

We will look to so to summarize we are looking to grow it will grow it but we're not going to do in a way that damages our overall.

Returns of the business.

Speaker 13: No, understood and does the it just as a follow up does this platform offer

No understood and does the just as a follow up does this platform offer.

Similarly attractive organic growth opportunities in the other ones or is this sort of is this growth going to be achieve predominantly through acquisition.

Speaker 13: in the early attractive organic growth opportunities and the other ones, or is this...

Speaker 13: If this growth gonna be achieved predominantly through acquisition.

Well.

Sure.

Speaker 9: We're doing it both ways. As you know, we've set up...

We're doing it both ways as you know, we've we set up.

Speaker 6: you know, various development platforms as relates to data centers pretty much around the world. We have it in South America, Europe now.

You know various development platforms as it relates to data centers.

Pretty much around the world, we happened in South America Europe now.

Speaker 5: Asia as well as India so we have four distinct development businesses as relates to data centers. That's a big focus for us.

Asia as well as India. So like it's we have four distinct.

The development business is as it relates to data centers, that's a big focus for us, but I think equally important will be an M&A strategy to buy some additional cash flowing businesses as well as ones that are in the <unk>.

Speaker 6: But I think equally important will be an M&A strategy.

Speaker 9: by some additional cash-flowing businesses, as well as ones that, you know, in the fiber optic business where we can execute an overbill strategy and upgrade a network.

Or optic business, where we can.

Executed over build strategy and and upgrade our network.

Great. Thanks, I appreciate it.

Thank you very much.

Speaker 1: Next question comes from Devon Dodge with BMO Capital Markets. Your line is open.

Our next question comes from Devin Dodge with BMO capital markets. Your line is open.

Speaker 15: All right, thanks. So I wonder if your thoughts on capital deployment in Latin America? We've seen political shift in some countries. I think Brazil has elections later this year. And if the polls are right, I think we could see a change there as well. Just how do these situations...

Alright. Thanks.

I wanted to get your thoughts on capital deployment in Latin America, No. We've seen no political shifting some countries I think Brazil has elections later this year.

The polls are right I think we could see a change there as well just how did these situations.

Speaker 15: implement your decision making around capital deployment in the region and have you seen any noticeable shift in the willingness of say others

Influence your decision, making around capital deployment in the region and have you seen any noticeable shift in there.

Willingness or let's say others to invest in those countries.

Speaker 6: As I look at that, that's a very timely question because there has been a lot of...

I look at that that's a a very timely question because there hadn't been a lot of.

Speaker 9: Changes from a political perspective just in the last year in the region, there's been a pretty dramatic shift to the left

Changes from a political perspective, just in the last year in the region.

There's been a pretty dramatic shift to the left.

Yeah.

Speaker 5: And that has caused some uncertainty. And obviously, is where there exists uncertainty that tends to reduce investor appetite. I would say from our own perspective, we have taken a probably more cautious approach to the region over the last couple of years.

And that has caused some.

Certainty and that obviously is where there is just uncertainty that tends to reduce our investor appetite I would say from our own perspective, we have taken a.

Probably a more cautious approach to the region over the last couple of years.

Speaker 10: Our businesses, having said that, our businesses for the most part have operated without any significant issues from a political perspective, and they're operating pretty well. So even though there has been change in government...

Our our businesses, having said that our businesses for the most part have operated.

Yeah without any significant issues from a political perspective, and they're operating pretty well, so even though there has been changed and government.

Speaker 6: We haven't seen any real negative impact on our operations, so that's a positive. So that gives us a confidence to consider new opportunities in the region.

We haven't seen any any real negative impact on our operations. So that's a positive and so that gives us a you know a.

Confidence to consider a new opportunities in the region.

Speaker 5: But having said that I think how we've changed our approach.

But having said that I think what how we've changed our approach.

Speaker 9: We are looking for businesses where we can reduce the FX exposure. Some of our businesses, even though they've operated really well, have been negatively impacted by volatility and FX.

Is yeah, we are looking for businesses.

Businesses, where we are.

We can reduce the FX exposure.

Yes, some of our businesses are.

Even though they are operated really well have been directly impacted by volatility.

Volatility FX, so to extent that we can buy more USD denominated.

Speaker 9: buy more USD-denominated businesses in the region, that's definitely a focus for us. And I think we're also focused on more B2B businesses where

Denominated business in the region, that's that's definitely a focus for us and I think.

We're also focused on lower <unk> businesses.

We're.

You know risk of pop this actions because you're you're.

Speaker 5: you know, risk of, you know, populous actions because you're selling a service or a good to a consumer is taken out of the equation. That tends to be, in these moments of time, you know, your biggest risk in those.

Selling a service or a good to a the consumer is taken out of the equation that tends to be in these moments of time you know you have your biggest risk.

In those regions. So I'd say, that's our focus of our strategy.

Speaker 5: So I'd say that's our focus of our strategy. You know, we still have a few things that we're looking at in the region. So, you know, we hopefully will add to our business.

Yeah, we still have a few things that we're looking at it in the region. So be able we hope hopefully will add to our businesses.

Speaker 5: We are recycling other businesses in the region as well, so on a net-net basis, I doubt it will grow, but we still remain relatively positive.

We are recycling other businesses in the region as well so a net debt basis I doubt it will grow but.

Yeah, we still remain relatively positive.

Speaker 15: Thanks for that. My next question is on your NatGas storage business. 2021, we can all agree, is a pretty atypical year. I think Rock Point was a big beneficiary of some supply disruption.

Okay. Thanks for that.

My last question is on your on your Nat gas storage business 2021 Oh, we can all agree it's pretty atypical year.

I think rock point was a big beneficiary of some supply disruptions.

Speaker 15: And then I think that the pattern of gas prices for the year was a bit different than no typical, you know, seasonal pattern.

And then I think the pattern of gas prices for the year was a bit different than typical seasonal seasonal pattern. So at.

Speaker 15: It seems like there could be a tough setup for RockPoint from an earnings growth perspective, but can you frame what you expect this to be, like a small headwind in 2022 or maybe something a bit more?

It seems like there could be a tough set up for rock point from an earnings growth perspective, but can you frame. What you expect this do you expect it to be like a small headwind in 'twenty, two where maybe something a bit more meaningful.

Speaker 8: I can start, and Ben or Sam feel free to supplement. I think from a reading standpoint, Evan, you're right. We certainly had the benefit this year of...

I can start and banner staffed.

To supplement I think from an earnings standpoint.

You're right, we certainly had the benefit this year of <unk>.

Speaker 2: of some of the over-performance that we highlighted in the first quarter. I think we highlighted it was $65-$70 million in the first quarter that was just uncharacteristic of his business in the past, but that is part of the value of these assets. They provide critical infrastructure to an integrated gas market in Western Canada and in parts of California where we own our businesses.

Some of the over performance that we highlight in the first quarter I think we highlighted it was 65 $70 million in the first part of that was just you know I'm characteristic of this business in the past, but that was part of the value of these assets may provide critical infrastructure to an integrated gas market in western Canada, and parts of California, where we own our businesses. So.

I think.

Speaker 8: It's hard to predict what will happen a lot of the performance is dependent on weather conditions in much of North America and as you said supply. So all that is equal if we go back to normal level you could expect to see a $60-70 million dollar probably reduction in our gas storage performance year over year. But we're optimistic that our business can capture incremental volumes and maximize.

It's hard to it's hard to predict what will happen a lot of the performance is dependent on weather conditions in much of North America, and I think that.

Supply so all else equal if we go back to normal levels, you could expect to see $60 million to $70 million, probably a reduction in our gas stores performance year over year, but you know.

We're optimistic that our business can capture incremental volumes and maximize.

Speaker 8: the tariff or spread between between seasonal demand at our businesses and capture some of that back, but if that's what you're looking to, I'd say that's kind of a small headwind that we face looking ahead into 2020.

The tariff for spread between between seasonal Canada.

After some of that back but.

So that's kind of a small headwind that we face looking ahead into 2022.

Speaker 5: Maybe I'll add to that is.

Maybe ill add to that is.

Speaker 5: As David said, there was a great result earlier in the year.

Yeah, David said.

There was a great result.

The year end.

And.

Speaker 14: being able to replicate that may be difficult. But having said that, I think the...

Being able to replicate that may be difficult.

But having said that I think the.

Speaker 9: The thesis around the assets and the services provided has probably not looked better in the last 8 to 10 years.

The thesis around the assets and the services. It provides is probably not look better in the last eight to 10 years I think what we're going.

Speaker 5: You know, what we're going into is a period of significant commodity price volatility.

Going into as a period of significant commodity price volatility.

Speaker 9: and just business, you know, captures intrinsic at next, intrinsic spreads. And you know, many of those when you know, gas was, was blowing.

And just business captures intrinsic Ed's next transit.

Spreads and how many of those win.

The gas was flowing.

Speaker 9: very strong in the US and investment in the upstream sector was very robust. It took away a lot of those spreads. But today, you know, that there is a, and we think it will continue to be sort of a reduction in investment in production. And as a result, we are going to see more periods where you have scarcity and higher prices. And that's great for this business.

You know very strong in the U S and an investment in the upstream sector was very robust it took away a lot of those spreads.

But today Yep.

You know that there is a and and we think it will continue to be sort of a a reduction in investment.

Investment in our production and as a result, we are gonna see more periods, where you have scarcity and higher prices and that's that's great for this business because this is our customers need to.

Speaker 9: Our customers need to remember that they should buy insurance and protect themselves against the volatility in price.

Remember that they should buy insurance and protect themselves against the volatility in prices.

Speaker 9: And this business provides that type of service.

And.

And this business provides that type of service.

Thanks, that's helpful context, I'll turn it over thank you.

Speaker 1: Thank you for your next question, Sant' toranjar numerical with IA capital market schneeline ?

Thank you. Our next question comes from how should you be doing with I E capital markets. Your line is open.

Good morning, I'm just had one question.

Speaker 16: Morning. Just had one question. You successfully deployed three billion of equity capital last year. You already have for three year 2022 targets. You sort of raised equity at the end of last year to prefront new growth. And it sounds like a very healthy M&A pipeline. I guess in this context, how do you position yourself or what would need to happen for you to exceed your 1.5 billion a year equity capital deployment objective?

Successfully deployed 3 billion of equity capital last year, you're already halfway through year 2022 targets.

Raise equity at the end of last year to pre fund new growth.

It sounds like a very healthy M&A pipeline.

I guess in this context, how do you position yourself or what would need to happen for you to exceed your one 5 billion a year equity capital deployment objectives.

Yeah.

Speaker 6: So look, today, for us to exceed that target, we need to be successful in converting our pipeline. Last year, we were very successful in one large transaction. I think as we mentioned at the outset, our pipeline is very strong.

So look I know today.

For us to exceed that target, we need to be successful in converting our pipeline last year. You know we are we were very successful in one large transaction.

And I think as we mentioned at the outset, our pipeline is very strong.

One five is.

Speaker 6: Bill, is an amount that we have.

The Bill is isn't about that.

We have.

Speaker 6: been able to deploy on a regular basis so it's really a...

Been able to deploy on a regular basis. So it's it's really a.

Speaker 6: not an absolute number. We don't set out to hit that number per say. It's just our sense of what we think is a regular run rate growth deployment level. And today is the capital market stay constructive. And if, in fact, if there's a little bit of a pullback in certain sectors that help us get more comfortable from evaluation perspective, then…

Not an absolute number we don't set out to hit that number per se. It's just our sense of what we think is a regular run rate growth deployment level and today at the capital markets day.

Constructive and if in fact, if there's a little bit of a pull back in certain sectors.

That help us get more comfortable from a valuation perspective then.

Speaker 6: It's very possible we could again have another outsized year from a deployment perspective.

Yeah, it's very possible, we could again have another outsized year from a deployment perspective.

But.

Speaker 5: At this stage, other than the fact that we have already secured half of our deployment, which positions as well, we just, early in the new year, that would be the only factor today that would give us confidence for sure that we can do better. But I think at this stage, we're still...

At this stage other than the fact that we have already secured half of our deployment, which positions us well.

We're just early in the new here.

That would be the all these factor today that would give us confidence for sure that we can do better but I think at this stage we're still.

Speaker 17: signaling that our annual deployment target is 1.5 and we haven't moved off of that yet. Okay, thanks for that.

Signaling that you know our annual deployment targets, one five and we haven't moved off of that yet.

Okay. Thanks for that that's all for me.

Our next question comes from the hope with Scotiabank. Your line is open.

Speaker 11: That's Morning Everyone, Rob Hope from Scotser. Just a whole question, just regarding the opportunities you're seeing on the data side. We have seen public market valuations pull back a little bit here over the last month. Is that providing you some opportunities there or is that not been quite enough or it's been too little about a time or are the data opportunities you're seeing more in charge of the things where you've seen more of the opportunities historically?

Good morning, everyone, Rob Hope from Scotia, just a follow up question just regarding the opportunities you're seeing on the data side, we have seen public market valuations have pulled back a little bit here over the last month is that providing you some opportunities there or is that not been quite enough or it's been too little amount of time or are these data.

The opportunities you're seeing more on target, it's been kind of things, where you've seen more of the opportunities historically.

Speaker 9: Hi Rob, I'd say it's, the pullback has been, you know...

Hi, Rob.

I'd say it's a.

The pullback has been you know to them too.

Speaker 9: too short at this stage to...

Two short.

At this stage too.

Speaker 5: to draw any views from a market perspective of what we could do. I think most of what we're focused on today

You know two to draw any views from a.

From a market perspective of what we could do I think.

Most of what we're focused on today.

Speaker 6: is related to Carbeth. To the extent that the market stays lower for longer, then I think that does open up some take private opportunities. But it needs to stay down for at least some period of time before young people's views are reset from an expectation of value.

It is related to carve outs.

To the extent that the market stays lower for longer.

Then I think that does open up some take private opportunities, but it needs to stay down for at least some period of time before People's views are a reset from a expectation of value.

Thank you.

Speaker 1: Our next question comes from Pat Kinney with National Bank Financial. Your line is open.

Our next question comes from Patrick <unk> with National Bank Financial Your line is open.

Speaker 11: Thank you. Good morning, guys. Just to circle back on the IPL business, any update on discussions with TC Energy and Pemina to participate in the Alberta Carbon Grid initiative? I'm just curious when we might get a little bit more color on potentially joining this partnership or, if you decide not to, perhaps moving forward with any other sequestration or decarbonization opportunities within the IPL portfolio?

Thank you good morning, guys just to circle back on the IPO business.

Any update on discussions with Tc energy and permanent two.

Participate.

In the Alberta carbon grid initiatives I'm just curious.

We might get a little bit more color on.

Essentially joining this partnership or if you decide not to perhaps moving forward with any other sequestration or decarbonization opportunities within the IPL portfolio.

Speaker 11: We have a number of initiatives that we're in the early stages of looking at on the topic of carbon across all of our midstream assets, but I don't really have any specific comments on specific commercial or other discussions with direct counterparties at this point, but it is a topic that is a focus for the government.

Yeah, Patrick it's Ben here.

We have a number of you know.

This shifts that we're in the early stages of looking at on a on the topic of carbon across all of our midstream assets, but I don't really have any specific comments on specific commercial or other discussions with direct counterparties at this point, but it is a topic that.

Because for the group right now.

Speaker 18: Okay, so just in terms of time frame.

Okay. So just in terms of time frame.

Speaker 18: first half of a year decision or could this leak into 2023 and still be assessing the Alberta carbon grid?

First half of the year decision or could this leak into 2023 and still be assessing.

The Alberta carbon grid.

Okay.

Speaker 11: It's very hard to pick a top-side Patrick. I don't have a strong view as to whether it's this year or at least in the next year. It's these kinds of topics, I think. Like I said, generally speaking, they're in their early stages and they're starting to cement themselves over time. It's very hard to put pins and dates on things.

It's very hard to pick a time side, Patrick I I don't have a strong view as to whether its this year or at least into next year. It's.

Uh huh.

These kinds of topics I think like I said generally speaking they're in their early stages and theyre starting to submit themselves over time, but it's very hard to put.

Pins and dates on things at this point.

Speaker 18: Fair enough. We saw a small Alberta gas storage transaction in the quarter, so I'm just curious to get an update on how your Alberta hub is performing right now relative to say recent years and I guess also if you view these assets as a long-term strategic fit within your midstream portfolio or maybe more as a candidate for asset recycling similar to say the European storage business.

Okay fair enough.

And then we saw a small alberta gas to merge transaction in the quarter. So I'm just curious to get an update.

On how your Alberta hub is performing right now relative to say recent years and I guess also with you view these assets as a long term strategic fits.

It was in your midstream portfolio or.

Maybe more.

Candidate for asset recycling similar to see the European storage business.

Uh huh.

Huh, Patrick maybe I'll I'll I'll tackle that one.

Speaker 9: Patrick, maybe I'll tackle that one. You know, as far as the operations of the businesses, you know, we have not...

Yeah as far as the.

The operations of the businesses.

We have.

We've not seen I would say.

Speaker 6: as much strength in the Canadian operations as we have in the US operations. We have definitely seen much more stronger contractual pricing and interest in...

As much strength in the Canadian operations as we have in the U S operations, we have definitely seen much more stronger contractual.

Pricing and interest in <unk>.

Speaker 6: in our California business, for instance.

Uh Huh, and our California business for instance.

Speaker 6: But we do think that the Canadian business is an exceptional business.

But yeah, we do think that our Canadian business is an exceptional business.

Speaker 10: And we'll see improved pricing going forward as far as you know

And we will see improved pricing going forward.

As far as you know.

Speaker 10: You know, where it fits, you know, look, at some point in the future, you know, it is probably a business that we will sell. It's not because we don't like it, but at some point, you know, we will have done all we can to improve and de-risk the business, and it will make sense to monetize. But we haven't picked a timeframe for when we would do that.

Where it fits I look at some point.

In the future you know it is probably a business that we will sell its not because we don't like it but at some point.

Yeah, we will have done all we can to improve and derisk the business and it will make sense to monetize them.

But we havent picked a timeframe for when we do that.

Okay. That's great I appreciate the color. Thanks.

Yeah. Thank you.

Speaker 1: Our last question comes from Andrew with Credit Suisse. Your line is open.

Our last question comes from Andrew <unk> with Credit Suisse. Your line is open.

Speaker 19: Thanks. I guess a big picture question and under thematic investing. And you guys have historically been very long-term investors and how you think about things and try to pick your spots.

Thanks, I guess, a big picture question.

The thematic investing and you guys have historically been very long term investors and how you think about things and trying to pick your spots.

Speaker 19: But maybe if we could just sort of address some of the big themes around maybe water stress on a global scale, I mean you've dabbled in the space a little bit but nothing overly significant. Is that a function of government control, the returns or just opportunities lacking and then maybe that morphs into a broader question on just social infrastructure, whether it be healthcare, education, all that kind of stuff.

But maybe if we could just sort of address some of the big themes around maybe water stress on a global scale I mean, you've dabbled in the space a little bit, but nothing overly significant is that a function of government control. The returns are just opportunities locking in maybe that morphs into a broader question on just social infrastructure, whether it be health care education, all of that kind of.

Stuff.

Yeah.

Speaker 10: Sorry, Andrew, can you just sort of restate that question? I didn't quite grasp it.

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

Speaker 17: Yeah, so, I mean, just on the thematic investing, to what degree are you really trying to poke around on some of the bigger themes around whether it's water stress or social infrastructure? Are they of interest to you because they're big capital opportunities in certain parts of the world? Or is it an area that's not of interest because too much government control or returns are insufficient for you relative to other things? Yeah. No, I... I...

So I mean, just on on the thematic investing.

To what degree are you really trying to poke around on some of the bigger themes around whether it's water stress or social infrastructure. You know are they are of interest to you, but it's a big capital opportunities in certain parts of the world.

Or.

Is it an area that's not of interest is too much government controller returns are or insufficient for you relative to other things.

Yeah.

Uh huh.

I understand the question.

I would say you know today, we are we are spent.

Speaker 6: I'm spending a lot of time on those areas, whether it's the health care or social infrastructure. The challenge is...

Spending a lot of time on those areas, whether it's a health care social infrastructure.

Yeah. The challenge is.

Yeah.

Speaker 10: framing an actual opportunity is difficult and time consuming.

Framing and actionable opportunity is difficult and time consuming and we just.

Speaker 6: don't have them in front of us. I think where we are spending a lot of time is...

You don't have them in front of us I think.

We're where we are spending a lot of time is.

Speaker 10: You know, it's really around the data, telecom complex and finding new ways to help that sector recapitalize and fund the huge amount of capital that they have in front of them.

Joey is really around the the data telecom complex and finding new.

New ways to help that sector.

Recapitalize and fund the huge amount of capital that they have in front of them.

Speaker 10: You know, we're also looking, I'd say, you know, another sector that, you know, we are also thinking about is the air product sector, which today has been, you know, quite concentrated with a few large players, but there's opportunities around the world where they don't have quite as, you know, the strong market presence and where we may find a way to get into the business.

Yeah. We're also looking I'd say.

No.

Another sector that we are also thinking about is are the air product sector, which today has been you know quite concentrated with a few large players, but there's opportunities around the world are where.

Where they don't have quite as.

The strong market presence and where we may find a way to get into the business because we see it as an interesting.

Speaker 10: He does an interesting industry to explore. But as far as the social and healthcare today, we don't have initiatives underway.

Industry to explore.

But as far as the social and health care today, we don't have initiatives underway.

Speaker 19: Okay, that's very helpful. And then maybe just in the context of your broader portfolio allocation.

Okay. That's very helpful and then.

Maybe just in the context of your broader portfolio allocation.

Speaker 19: does the model that you've got with the flagship funds and then the core, super core, core plus whatever we want to call them, is that sort of helpful in your ability to be maybe more creative on actually securing transactions into the future.

Does the model that you've got with the flagship funds and then the core Super core core plus whatever were on a call them because that's sort of helpful. In your ability to be maybe more creative on.

Actually securing transactions into the future.

[noise] look absolutely so.

Speaker 5: Uh, look, absolutely. So, um...

Speaker 10: the fact that we can go into any conversation with a counterparty and be able to...

The the fact that we can go into any conversation with a counterparty and.

Be able to.

Discuss.

Speaker 10: credits or

Credit or.

Speaker 5: it's called Low Cost Income Structured Equity Investments, or just a full control transaction, you know, gives us the full playbook. And it's very powerful. And the fact that each one of our capital pools is large scale and with lots of buyer power, I think.

It's called a <unk>.

Low cost income structured equity investments or or just a full control transaction.

You know it gives us the full playbook and are it's very powerful and the fact that each one of our capital.

Capital pools, as a large scale and and with lots of firepower I think.

Speaker 5: gives us one of the most unique franchises out there. So yes, it is helpful. Okay.

It gives us a one of the most unique franchises out there. So yes. It is helpful.

Okay. That's great. Thank you very much.

Speaker 1: Thank you. We are out of time for questions. I would now like to turn the call over to CEO Sam Pollock for closing remarks.

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

Speaker 6: Okay, thank you, Operator, and look, we appreciate all the interest we had today on the call. We had a lot of questions, and we appreciate everyone who joined us to listen in. We hope you enjoy the rest of the winter.

Okay. Thank you operator and.

Look we appreciate all the interest we had today on the call with a lot of questions.

And we appreciate everyone, who joined us to listen in.

I hope you enjoy the rest of the winter and.

Speaker 3: I look forward to speaking to you again next quarter. Thank you very much

I look forward to speaking to you again next quarter. Thank you very much.

Yes.

Speaker 1: This concludes today's conference call. Thank you for participating. You may now disconnect.

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

Speaker 20: ??? ??? ??? ??? ??? ??? ??? ???

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Speaker 1: Good day and thank you for standing by. Welcome to the Brookfield Infrastructure Partners LP fourth quarter 2021 results conference call and webcast. At this time our participants are

Good day and thank you for your name by welcome to the Brookfield infrastructure Partners L. P fourth quarter 2021 results conference call and webcast.

At this time all participants are in a listen only mode.

Speaker 1: After the speaker's presentation, there will be a question and answer session.

After the speaker's presentation, there will be a question and answer session.

Speaker 1: To ask a question during the session, you will need to press star 1 on your telephone. Please be advised that today's conference will be concluded at 1 p.m.

To ask a question during the session you will need to press star one on your telephone.

Please be advised that today's conference is being recorded.

Speaker 1: If you require any further assistance, please press star zero. I would now like to hand the conference over to the speaker today, David Krant, Chief Financial Officer. Please go ahead.

If you have any further assistance please press star zero.

I now like to hand, the conference over to your Speaker today, David Pratt Chief Financial Officer. Please go ahead.

Thank you Shannon and good morning, everyone.

Speaker 2: Thank you, Shannon. And good morning, everyone. Thank you all for joining us for Brookfield Infrastructure Partners fourth quarter earnings conference call for 2021.

Thank you all for joining us for Brookfield infrastructure Partners' fourth quarter earnings conference call for 2021.

Speaker 2: As introduced, my name is David Kramp, and I am the Chief Financial Officer at Brookfield Infrastructure Partners.

And introduced my name is David Paton, Chief Financial Officer of Brookfield infrastructure partners, joining me today, Sam Pollock, Our Chief Executive Officer, and Dan Hahn, Our Chief operating officer.

Speaker 2: Joining me today is Sam Pollack, our Chief Executive Officer, and Ben Vaughan, our Chief Operating Officer. Following our remarks, we will...

Following their remarks, we look forward to taking your questions at.

Speaker 2: At this time, I'd like to remind you that in responding to questions, as well as talking about our growth initiatives and our financial and operating performance, we may make forward-looking statements. These statements are subject to known and unknown risks, and future results may differ materially. For further information on known risk factors, I would encourage you to review our annual report on Forum 20S, which is available on our website.

At this time I'd like to remind you that in responding to questions and we're talking about our growth initiatives and our financial and operating performance. We may make forward looking statements. These statements are subject to known and unknown risks and future results may differ materially for further information on known risk factors I would encourage you to review our annual report on form 20-F, which is available on our web.

Right.

Speaker 2: Now over the last two years, Berkeley Infrastructure's cash flows has demonstrated tremendous resilience and sustainability, providing further validation of the attractiveness of the infrastructure sector as an asset class.

Now over the last two years I feel their precious cash flows has demonstrated tremendous resiliency and sustainability, providing further validation of the attractiveness of the infrastructure sector as an asset class in.

Speaker 2: In 2021, we further enhance the quality of our business by opportunistically deploying capital into several attractive investments and organic growth projects.

In 2021, we further enhanced the quality of our business by Opportunistically deploying capital into several attractive investments in organic growth projects.

Speaker 2: Furthermore, the monetization of several mature businesses that strong valuations has generated significant liquidity to fund our growth initiatives and a low cost of cash.

Furthermore, the monetization of several mature business and a strong valuations have generated significant liquidity to fund our growth initiatives and our low cost of capital.

Speaker 2: Consequently, Brookfield Infrastructure is well positioned to continue its growth trajectory in the years ahead.

Consequently, Brookfield infrastructure is well positioned to continue its growth trajectory in the years ahead.

We are pleased to announce that as a result of our strong financial and operating performance and robust liquidity position. Our board of directors has approved a quarterly distribution increase of 6% to 54 cents per unit in 2022.

Speaker 2: We are pleased to announce that as a result of our strong financial and offering performance and robust liquidity position, our Board of Directors has approved a quarterly distribution increase of 6% to $0.54 per unit in 2022. This marks the 13th consecutive year of distribution increases, reflecting our positive outlook.

This marks the 13th consecutive year of distribution increases, reflecting our positive outlook.

Speaker 2: In addition to the distribution increase, our business achieves many other milestones over the past year, including solid performance across all of our operating sites and it's a resulting in our panic growth of 9%.

In addition to the distribution increase our business achieved many other milestones over the past year, including solid performance across all of our operating segments, resulting in organic growth of 9%.

Speaker 2: We're pulling over $3 billion into growth initiatives including the acquisition of InterPipeline, or IPL, and a $13 billion privatization.

Applying over $3 billion into growth initiatives, including the acquisition of inter pipeline, our IPL and a $13 billion privatization.

Speaker 2: We're securing half of 2022's capital deployment through the two Australian utility acquisition.

Securing half of.

2022 capital deployment through the two Australian utility acquisitions.

Speaker 2: Generating 2 billion of proceeds from the completion of for sale

Generation 2 billion of proceeds from the completion of for sale processes, and finally, raising almost $3 billion in capital markets, ensuring strong liquidity levels.

Speaker 2: And finally, raising almost $3 billion in capital markets to ensure a strong liquidity level.

Speaker 2: Now, switching from accomplishments to our results for the year. We reported FFO, or funds from operations, of $1.7 billion, or $3.64 billion per unit, a notable annual increase of 19% and 15% on a total FFO and per-unit basis, respectively.

Now switching from accomplishments to our results for the year, we reported <unk> or.

Our funds from operations of $1 7 billion or $3 64 per unit and notable annual increase of 19% and 15% on a total <unk> and per unit basis, respectively.

Speaker 2: We ended the year on a very strong note, generating fourth quarter FFO per unit of 97 cents, which exceeded the prior year by 13% and reflects a payout ratio of 68%. Results were supported by

We ended the year on a very strong note during the fourth quarter <unk> per unit of <unk>, 97, which exceeded the prior year by 13% and reflects a payout ratio of 68%.

Results were supported by strong growth from our base business, a full recovery from shutdown related effects experienced in 2020, and the significant contribution from over $3 billion deployed and growth initiatives.

Speaker 2: full recovery from shutdown-related effects experienced in 2020, and the significant contribution from over $3 billion deployed in growth initiatives.

Speaker 2: Organic growth for the year, as I mentioned, was 9%, reflecting the initial benefits of elevated inflation levels, the commissioning of nearly $900 million in capital projects over the last year, and higher market-sensitive revenues driven primarily by increased demand for transportation.

Organic growth for the year as I mentioned was 9%, reflecting the initial benefits of the elevated inflation levels. The commissioning of nearly $900 million in capital projects over the last year and higher market sensitive revenue driven primarily by increased demand for transportation services.

Speaker 2: Taking a closer look at our operating performance by segment, starting with utilities, we generated FFO of $705 million compared to $659 million in the prior year.

Taking a closer look at our operating performance by segment, starting with utilities, we generated <unk> of $705 million compared with 679 million in the prior year.

Speaker 2: FFO growth on a same-store basis was an impressive 11%. This growth reflects inflation indexation, a commissioning of approximately $430 million of capital into our rate base, and higher connections activity at our UK-regulated distribution

<unk> growth on a same store basis was an impressive 11%.

This growth reflects inflation indexation commissioning of approximately $430 million of capital into our rate base and higher collections activity at our UK regulated distribution business.

Speaker 2: This business recorded another solid period of sales activity, ending the year with a total of 322,000 new connections.

The business recorded another solid period of sales activity ending the year with a total of 322000 new connections. This was the company's best year of sales and was 10% higher than as record previously back in 2019.

Speaker 2: This was the company's best year of sales and was 10% higher than its record previously set in 2019.

Speaker 2: A residential infrastructure business continues its expansion through new product lines and geographies.

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

Speaker 2: In addition to acquiring a leading German residential infrastructure business earlier in the year, in December we acquired a 60% interest in the second largest independent residential heating installer in the UK.

In addition to acquiring a leading German residential infrastructure business earlier in the year in December we acquired a 60% interest in the second largest independent residential heating installer in the UK.

Speaker 2: At our existing operation in North America, we completed three follow-on acquisitions in the fourth quarter. Most notable is the acquisition of a residential solar installation and battery storage solutions provider with operations in seven of the U.S.

And our existing operation in North America, we completed three follow on acquisitions in the fourth quarter. Most notable is the acquisition of a residential solar installation in battery storage solutions provider with an offer with operations and 79 seven on the U S States.

This strategic transaction strengthens our role in the transition to Green energy and provides an additional avenue for in applying our rental product offering.

Speaker 2: This procedure turns out strengthens our role in the transition to green energy and provides an additional avenue for deploying a rental product off.

Speaker 2: Following the fact that position and our partnership for the Leasing Residential Generator Manufacturer, we are positioned to offer four complementary utility offerings under long-term inflation-indexed contract.

Following this acquisition and our partnership with the leading residential generator manufacturer, we are positioned to offer for complementary utility offerings under long term inflation indexed contracts.

Speaker 2: At our Brazilian Electricity Transmission Lines, we recently exercised an option to acquire our drug vendors 50% interest and 900 kilometers of operational lines.

And our Brazilian electricity transmission lines, we recently asked to exercise an option to acquire our joint ventures, 50% interest in 900 kilometers of operational lines.

Speaker 2: This increases the portfolio of lines that we own to approximately 2,400 kilometers.

Increases the portfolio alignment, we onto approximately 2400 kilometers.

Speaker 2: construction of the initial set of lines now complete, the scalable platform has been significantly de-risked, leading us to launch a sales process for this portion of the project.

With construction the construction of the initial set of lines now complete the scalable platform has been significantly derisked, leading us to launch a sales process for this portion of the business.

Speaker 2: The process is now underway and we expect to complete it in the second half of this year.

Process is now underway and we expect to complete it in the second half of this year.

Speaker 2: Moving on to our transport segment, FFO was $701 million, an improvement of nearly 20% compared with the prior year.

Moving onto our transport segment, <unk> was $701 million, an improvement of nearly 20% compared with the prior year.

Speaker 2: Results benefited from strong organic growth driven by higher volumes, inflationary tariff increases, and a full year contribution from our U.S. LNG export terminal.

Results benefited from strong organic growth driven by higher volumes inflationary tariff increases and a full year contribution from our U S. LNG export terminal.

Speaker 2: Our transport segment is a significant beneficiary of the robust economic recovery in most of our investment markets.

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

Speaker 2: Our rail networks continue to benefit from strong demand for bulk goods and commodities that underpin the global economy.

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

Speaker 2: Following its robust performance last year, our North American rail operation has experienced higher car loads as volumes are 8% ahead of the prior year, with improvements across most products.

Following this robust performance last year, our North American rail operation has experienced higher carloads and volumes are 8% ahead of prior year with improvements across most product groups due to the essential nature of the business, we've been able to protect our margins across each of our operations by reflecting inflationary cost pressures in our tariffs.

Speaker 2: Due to the essential nature of the business, we've been able to protect our margins across each of our operations by reflecting inflationary cost pressures in our tariffs.

Speaker 2: At our diversified terminal operations, performance in the current environment continues to be robust, including record FFO during the fourth quarter. Results have benefited from a number of positive tailwinds, including improved volumes, higher tariff and congestion surcharges, as well as inflation pass-through reflected in rates.

And our diversified terminal operations performance in the current environment continues to be robust, including record <unk>. During the fourth quarter results benefited from a number of positive talent, including improved volumes higher tariffs and congestion surcharges as well as inflation pass through reflected in rates.

Speaker 2: Specifically at our U.S. LNG export terminal, we continue to benefit from strong global demand and high LNG prices due to increasing exports to China and low storage levels, particularly in Europe . This favorable backdrop has facilitated the contracting of excess capacity under multi-year agreements at attractive rates.

Specifically at our U S. LNG export terminal, we continue to benefit from strong global demand and high LNG prices due to increasing exports to China and low storage levels, particularly in Europe .

This favorable backdrop and facilitated the contracting of excess capacity under multi year agreements at attractive rates.

Speaker 2: Additionally, construction of a sixth liquefaction train is progressing ahead of schedule, and substantial completion is expected to be achieved in the first quarter of 2020.

Additionally, construction of a liquefaction train is progressing ahead of schedule and substantial completion is expected to be achieved in the first quarter of 2022.

Speaker 2: FFO for the mid-term segment totaled $492 million in 2021, an increase of approximately $200 million, or 70%, compared with the prior year.

And also for the midstream segment totaled $492 million in 2021, an increase of approximately $200 million or 70% compared with the prior year.

Speaker 2: The set-tune increase reflects the acquisition of IPO, which is completed in the fourth quarter.

Does that change the increase reflects the acquisition of IPO, which was completed in the fourth quarter.

Speaker 2: Crank your results also reflect elevated commodity prices across our industry.

Current year results also reflect elevated commodity prices across our existing businesses.

Speaker 2: This price environment and record storage volumes following extraordinary performance in the first quarter of the year led to same store growth of 43% in 2021.

Price environment and record storage volumes following an extraordinary performance in the first quarter of the year, but at the same store growth of 43% in 2021.

Speaker 2: In October , we successfully completed the privatization of IPL, a high-quality Canadian instrument platform providing critical long-term.

In October we successfully completed the privatization of IPL, our high quality Canadian midstream platform, providing critical long term infrastructure as a reminder, approximately 80% of the business is contracted with the majority of our activity is secured under long term cost of service arrangements with investment grade Counterparties.

Speaker 2: As a reminder, approximately 80% of the business is contracted with the majority of our activities secured under long term cost of service arrangements within investment grade counter parties where we take no commodity or volume exposure. The balance of the business has benefited from strong commodity prices.

We take no commodity or volume exposure.

The balance of the business has benefited from strong commodity prices with.

With respect to the Heartland petrochemical facility construction is now mechanically complete and commissioning activities are on track with a mid 2022 startup.

Speaker 2: Construction is now mechanically complete and conditioning activities are on track with a mid-2022 startup.

Speaker 2: The data segment recorded FFO of $238 million in 2021, an increase of 21%.

The data segment recorded <unk> $238 million in 2021, an increase of 21%.

Speaker 2: Results reflect the construction of 12,000 telecom tower sites across our portfolios in India and France to accommodate mobile data growth and corresponding network densification requirements. Our highly contracted data...

Results reflect the construction of 12000 telecom tower sites across our portfolios in India, and France to accommodate mobile data growth and corresponding network densification requirements.

Our highly contracted data transmission and storage businesses have also benefited from inflation indexation and higher rates across the portfolio.

Speaker 2: have also benefited from inflation indexation and higher rates across the portfolio.

Speaker 2: At our French business, over 100 towers were added during the quarter, the second highest on record. The co-location of our built-to-suit tower portfolio increased further, giving growing demand for the country's major M&Os.

At our French business over 100 towers were added during the quarter. The second highest on record the co location of our build to suit tower portfolio increase further given the growing demand for the country's major immuno and major msos.

Speaker 2: Furthermore, the business connected fiber to almost 50,000 new homes, the strongest quarter on record.

Furthermore, the business continued connected fiber to almost 50000, new homes, the strongest quarter on record.

Speaker 2: We continue to gain momentum with the expansion of our global data storage platform and reach several important milestones during the quarter.

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

Speaker 2: First, we secured a second greenfield location in Auckland, New Zealand to support incremental demand from the anchor tenant at its initial site in the country.

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

Speaker 2: We have also acquired our first site in the highly attractive market of Seoul in South Korea.

We also acquired our first site in a highly attractive market and a soul in South Korea.

Speaker 2: In India and Europe , we have been successful in the early stages of our land-bank strategy to drive organic data-centered developments. And lastly, in South America, we commissioned a further 11 megawatts of capacity in the last 12 months.

In India and Europe , we have been successful on the early stages of our land bank strategy to drive organic data center developments and lastly in South America. We can then we commissioned a further 11 megawatts of capacity in the last 12 months.

Speaker 2: Combining these capital expansion projects should double the debt that EBITDA is offering by the end of 2024.

Combined these capital expansion projects should double adjusted EBITDA for this operating by the end of 2024.

Before turning the call over to Sam I'd like to touch on the strength of our balance sheet.

Speaker 2: With interest rates remaining at historically low levels, despite the onset of inflationary pressures, the accelerated opportunistic issuances and actively secured fixed rate debt was long dated maturity.

With interest rates remaining at historically low levels. Despite the onset of inflationary pressures, we accelerated opportunistic issuances and actively secured fixed rate debt with long dated maturities. This.

Speaker 2: This is reflected in our robust credit metrics and strong investment credit rating, which was reaffirmed at BBB Plus by FMP in December .

This is reflected in our robust credit metrics and strong investment grade credit rating, which was reaffirmed at triple B plus by S&P in December .

Speaker 2: As central banks now turn to policy normalization to combat rising rates, our corporate and asset-level balance sheets are significantly de-risked.

Our central banks now turn to policy normalization to combat rising rates are corporate and asset level balance sheets are significantly derisked, we have only modest maturities over the next several years in fact, it's less than 10% over the next 24 months once we're moving normal course amortization.

Speaker 2: We have only modest maturity over the next several years. In fact, it's less than 10% over the next 24 months once we're moving normal course amortization.

Speaker 2: Additionally, approximately 90% of our term debt, excluding local currency debt in Brazil, is fixed rate with the remaining term across our business of eight.

Currently approximately 90% of our term debt excluding local currency debt in Brazil is fixed rate with a remaining term across our business in eight years.

Speaker 2: As I mentioned, this year was active with respect to refinancing initiatives. During 2021 alone, we raised and secured commitments for a total of approximately $18 billion at the asset level, with the primary objective of refinancing near-term maturity versus increasing leverage in our business.

As I mentioned this year was active with respect to refinancing initiatives. During 2021 alone. We raised their secured commitments for a total of approximately $18 billion at the asset level with private with the primary objective of refinancing near term maturities versus increasing leverage in our businesses.

Speaker 2: On our capital recycling program, we secured approximately $2 million of net proceeds this year. Most recently in December , we signed a definitive agreement to sell our 50% owned Freehold Landlord Port in Victoria, Australia. Our share of proceeds is expected to be approximately $100 million, which is anticipated to have closed in the late first quarter.

On our capital recycling program, we secured approximately $2 million of net proceeds this year. Most recently in December we signed a definitive agreement to sell our 50% owned freehold landlord part in Victoria, Australia. Our share proceeds is expected to be approximately $100 million, which is anticipated to close in the late first quarter.

<unk>.

Speaker 2: These activities resulted in ending the year with total liquidity in excess of $5 billion, of which $3.7 billion resides at the corporate level. Following the completion of the two secured Australian utility investments, which Sam will discuss momentarily, pro forma liquidity at the corporate level is approximately $3 billion.

Now these activities resulted in us ending the year with total liquidity in excess of $5 billion of which $3 7 billion resides at the corporate level.

Following the completion of the two secured Australian utility investments, which Sam will discuss momentarily pro forma liquidity at the corporate level is approximately $3 billion.

Speaker 2: This provides us with significant capacity to fund incremental new investment opportunities as they are secured this year. Thank you all for your time this morning. I'll now pass the call over to Sam.

This provides us with significant capacity to fund incremental new investment opportunities and they're secured this year.

Thank you all for your time this morning, I'll now pass the call over to Sam.

Okay. Thank you David and good morning, everyone.

Speaker 3: Today's call is going to begin with a few comments on the current macroeconomic environment and its impact on our business.

On today's call will begin with a few comments on the current macroeconomic environment and its impact on our business.

Speaker 3: I'll then discuss some of the strategic initiatives we have underway, and then conclude the call with our outlook for the year ahead.

I'll then discuss some of the strategic initiatives, we have underway and then conclude the call with our outlook for the year ahead.

Speaker 3: Now central banks, around the world, singly a transition to tightening monetary policy to control rising price.

Of central banks around the World Secondly, a transition to tightening monetary policy to control rising prices.

Speaker 6: We thought it was a good opportunity to outline how inflation and rising interest rates may impact our business.

We thought it was a good opportunity to outline how inflation and rising interest rates may impact our business.

Speaker 6: All else equal, this economic environment is generally favorable for stable infrastructure businesses like ours.

All else equal this economic environment is generally favorable for stable infrastructure businesses like ours.

Speaker 6: for exploring a tailwind and potential risks associated with elevated inflation and higher interest rates.

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

Speaker 6: We should first caveat the underlying assumptions that frame that out

Speaker 6: First, the prevailing inflationary environment, we think, is a product of many factors, including pandemic-induced supply chain disruptions.

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

Speaker 3: In addition though, the influences of equalization and when some refer to a green inflation or green inflation are expected to contribute to longer term inflation.

In addition, though the influences of de globalization and with some referred to as Green inflation are green patients are expected to contribute to longer term inflation.

Given all these factors, we do not expect current inflation levels to be transitory.

Speaker 9: do not expect current inflation levels to be transitory, i.e., just to last this one year, as a number of factors will likely lead to a period of persistent inflation.

Just the last one year as a number of factors will likely lead to a period of persistent inflation.

Speaker 3: However, we also don't anticipate a return to the excessive and long-lasting inflation that occurred back in the 1970s.

However, we also don't anticipate a return to the excess of our long lasting inflation that occurred back in the 19 seventies.

Speaker 3: Accordingly, this current period of elevated inflation should ultimately stabilize in the next few years as the Federal Reserve and other central banks raise interest rates and shrink their balance.

Accordingly, this current period of elevated inflation should ultimately stabilize the next few years as the federal reserve and other central banks raise interest rates and shrink their balance sheets.

Speaker 6: Assuming our time-or-rise and for inflation stabilization is not significantly off, this will result in a gradual but hopefully not dramatic rise interest rates over the next few years.

Assuming our time horizon for inflation stabilization is not significant significantly up this will result in a gradual but hopefully not dramatic rise in interest rates over the next few years.

We think this view is consistent with many forecasts that show U S 10 year treasury, reaching about 3% over this period.

Speaker 3: We think this view is consistent with many forecasts that show U.S. 10-year Treasuries reaching about 3% over this period.

Speaker 6: Although higher than the last few years, these expected levels are low in the historical context and providing a accommodating market environment for high-tech contracted well-capitalized businesses like ours.

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

Now this forecast in mind.

Speaker 3: proceed elevated short-term inflation acting as a tailwind for our

We foresee elevated short term inflation acting as a tailwind for our business as a significant portion of our business has inflation indexation.

Speaker 3: as a significant portion of our business has inflation dexation. Now while we may not be fully inflated from rising costs, our inflation link revenue...

Now, while we may not be fully insulated from rising costs.

Our inflation linked revenues and high margin businesses should largely insulated impact.

Today, approximately 70% of our revenues are adjusted by local inflation indices.

Speaker 3: Today, approximately 70% of our revenues are adjusted by local.

Speaker 6: Disbenefit, LaLargey impactor utilities transport data investments, where between 80% and 90% of revenues are contractly indexed.

This benefit will largely impact our utilities transport data investments.

Between 80% to 90% of revenues or contracts are indexed to inflation.

Speaker 3: together with a largely fixed cost structure and prudent cost management strategy.

Together with our largely fixed cost structure and prudent cost management strategies.

Speaker 3: The compounding impact of inflationary revenue increases should drive operating leverage across our high-margin critical infrastructure.

Compounding impact of inflationary revenue increases should drive operating leverage across our high margin critical infrastructure.

Speaker 3: The economic impact of inflation is not without its consequences, namely higher interest rates.

The economic impact from inflation is not without its consequences, namely higher interest rates.

Speaker 6: Fortunately our direct interest rate exposure to near-term movements is minimal and effectively mitigated as David talked

Fortunately, our direct interest rate exposure to near term movement is minimal and effectively mitigated as David talked about.

Speaker 3: We've always employed a conservative approach to financing our business through long-dated maturities and mostly fixed-rate prices.

We've always employed a conservative approach to financing our business through long dated maturities are mostly fixed rate pricing and.

Speaker 3: In addition, we have actively extended maturities and optionistically secured long-term fixed rate debt to take advantage of the low interest rate environment we just created.

In addition, we are actively extended maturities and Opportunistically secured long term fixed rate debt to take advantage of the low interest rate environment. We just went through.

In summary, our expectations for continued high levels of inflation for the next few years to be countered with modest increase in interest rates, which will result in a net net positive environment for our business.

Speaker 3: In summary, our expectation is for continued high levels of inflation for the next few years to be countered with modest increased interest rates, which will result in a net-net positive environment for our business.

Speaker 3: Now, shifting to the investment activity for the quarter.

Now shifting to the investment activity for the quarter.

Speaker 3: pleased to report that we've secured two attractive utility investments, representing, as David mentioned earlier, approximately 50% of our deployment target for this year.

Pleased to report that we secured two attractive utility investments representing as David mentioned earlier, approximately 50% of our deployment targets for this year of the two.

2022.

Speaker 3: This includes AusNet, which is a portfolio of high-quality utility businesses in Victoria, Australia that provides electricity and gas transmission and distribution services across various critical networks.

This includes net which is a portfolio of high quality utility businesses in Victoria, Australia that provides electricity and gas transmission and distribution services across various critical networks.

Speaker 3: The closing of our investment is on track after having received shareholder approval last week and is expected to occur in mid-February.

The closing of our investment is on track after having received shareholder approval.

Last week and is expected to occur in mid mid February .

Speaker 3: We are excited to own a highly coveted perpetual regulated utility franchise that is well positioned to participate in the decarbonization of Victoria's economy to meet its legislated 2050 net zero target. VIP expects to invest approximately $500 million.

We are excited to own a highly coveted perpetual regulated utility franchise is well positioned to participate in the de carbonization of Victoria's economy to meet its legislated 2015 net zero target.

<unk> expects to invest approximately $500 million.

Then in December .

Speaker 3: we agreed to acquire a 50% interest in Telehub, a leading provider of electricity smart meters in Australia and New Zealand.

We agreed to acquire a 50% interest in the Intel at hub, a leading provider of electricity smart meters in Australia, and New Zealand.

Speaker 3: Total equity for the investment is approximately $870 million, with BIP's share being approximately $215 million.

Total equity for the investments approximately $870 million with bip share being approximately $215 million.

Speaker 3: The business has 1.2 million meters leased and contractual relationships with energy retailers that cover 99% of the consumer market.

The business had $1 2 million meters leased and contractual relationships with an energy retailers that covered 99% of the consumer market.

Speaker 3: This is an asset class that we are familiar with, as we held a smart meter portfolio within our UK regulated distribution business for many years.

This is an asset class that we are familiar with as we held a smart meter per four within our UK regulated distribution business for many years.

Speaker 3: We believe that point of consumption metering will continue to be an essential component of the electricity network with digitalization and decarbonization goals accelerating the deployment of smart meters in the region.

We believe that point of consumption metering will continue to be an essential component of the electric.

Electricity network with digitalization of de carbonization goals accelerating the deployment of smart meters in the region.

Speaker 3: We expect to complete this transaction in light Q1.

We expect to complete this transaction in late Q1.

Speaker 6: Now I'll conclude my remarks with a few comments regarding our outlook for the market and for Brooklyn infrastructure.

Now I'll conclude my remarks, with a few comments regarding our outlook for the market and for Brookfield infrastructure.

Notwithstanding the tailwind for our business as we've seen in recent weeks expectations of quantitative tightening in a rising interest rate environment.

Speaker 3: As we've seen in recent weeks, expectations of quantitative tightening and a rising interest rate environment have caused significant stock market volatility.

Of course significant stock market volatility.

Speaker 3: this volatility has been most pronounced as it relates to the technology sector, where we've seen a large pullback in valuations to start the year.

This volatility has been most pronounced.

As it relates to the technology sector, where we've seen a large pullback in valuations to start the year.

Speaker 3: Although our unit price will undoubtedly move with broader market sense.

Although our unit price will undoubtedly move with broader market sentiment.

Speaker 3: We believe the underlying value of our privately owned infrastructure assets will be much less impacted.

We believe the underlying value of our privately owned infrastructure assets will be much less impacted.

Speaker 6: private buyers of infrastructure assets, especially those for high-quality, de-risked essential infrastructure, take a longer-term view and are less influenced by short-term economic conditions or sensors.

Buyers of infrastructure assets, especially those for high quality Derisk essential infrastructure take a longer term view and are less influenced by short term economic conditions or sentiment.

Yeah.

Like most the last two years post many challenges both for our people and our businesses.

Speaker 3: Like most, the last two years posed many challenges both for our people and our businesses.

Speaker 3: Although we're proud of the accomplishments of the last year, we are feeling equally optimistic about the year ahead.

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

Speaker 3: We are pursuing opportunities to execute our full cycle investment strategy having identified several mature businesses that can be monetized at strong valuations.

We are pursuing opportunities to execute our full cycle investment strategy, having identified several mature businesses that can be monetized a strong valuations.

Speaker 3: We've already secured half of our 1.5 billion dollar annual deployment target, and these transactions are expected.

We've already secured half of our $1 5 billion annual deployment target.

These transactions are expected to close in the coming weeks.

So we are behind degree of confidence regarding achieving the balance over deployment target based on the pipeline of the best opportunities our global teams are pursuing and.

Speaker 3: We have a high degree of confidence regarding achieving the balance over deployment target based on the pipeline of advanced opportunities our global teams are pursuing.

Speaker 3: And we have strong liquidity that provides us the ability to pursue and fund these new investments and meet our target returns.

And we have strong liquidity that provides us the ability to pursue and fund these new investments and meet our target returns.

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

Speaker 3: Now that concludes my remarks. I'll now pass back to the operator to open line for Q&A.

Thank you as a reminder to ask a question you will need to press star one on your telephone.

Speaker 1: Thank you, as a reminder to ask a question, you will need to press star one on your telephone. Who will draw your question, press the key. Please stand by, will we compile?

Draw your question press the key please.

Please standby, while we compile the Q&A roster.

Speaker 1: Our first question comes from Sherilyn Radborn with PE Securities. Your line is open.

Our first question comes from Cherilyn Radbourne with TD Securities. Your line is open.

Thanks, very much and good morning.

Speaker 4: And in terms of the expected net tailwind from insulation, was hoping you can give us a feel for the level of local inflation that you're experiencing around the world in early 2022. And where do you think that will ultimately settle out, which I take it based on your letter, maybe at a higher level than what we've become used to?

Good morning.

In terms of the expected net tailwind from installation was hoping you can give us a feel for the level of local inflation that you're experiencing around the world in early 2022, and where do you think that will ultimately settle out.

Take it based on your letter maybe at a higher level than what we've become used to.

Hi, Cherilyn, maybe I'll start and then.

Speaker 6: Dave or Ben, maybe you can jump in to add more color.

You know, Dave or Ben maybe you can jump in to add more color.

Okay.

Speaker 9: The, um, look, there's, um...

The.

Look there is.

Speaker 9: bearing levels of inflation around the world. The highest levels have been in South America, and we've seen the benefit of those come through our gas transmission business and toll roads, and those are in the high single digits, and in the case of our gas transmission business, we actually had double digit inflation run through that business because it also reflected the effects of curts.

Varying levels of inflation around the world the highest levels. It had been in South America, and we've seen the benefit of those come through our gas transmission.

Mission business in toll roads, but those are in the high single digits and in the case of our.

Our gas transmission business, we actually had double digit inflation.

Inflation run through that business because it also reflected the effects of currency.

Speaker 6: In other parts of the world, Europe , North America, you know, the impacts aren't quite as pronounced. They tend to be sort of anywhere between.

In other parts of the World Europe North America.

<unk> are quite as pronounced.

They tend to be sort of anywhere between.

Speaker 3: three to seven percent, let's say. But I think one of the things you should take into account is that there is a bit of a lag to when we receive the full impact of these indexations, a lot of the...

3% to 7%, let's say.

But I think one of the things you should take into account is that there is a bit of a lag to when we receive the full impact of these indexation. So a lot of the.

Contracts.

Speaker 9: contracts, you know, have basically a year delayed before we see the impact. So I think a lot of the benefits of the indexation are actually still in the future. We've seen some role in this year. You know, they tend to happen at different points in the time, in time, but I think the full benefit actually will probably come later this year or in next year, in fact. you

You'll have basically a year delay before we see the impacts so I think a lot of the benefits of the indexation are actually still in the future we've seen some roll in this year.

Tend to happen at different points in time and time, but.

I think the full benefit.

Actually will probably come later this year or next year in fact.

As far as.

Speaker 2: Asia, you know I can't really say what the numbers would be there, but I don't know if you have anything to add, Dave, or... Yeah, I think if you look at Asia-Pacific for our business, Sherilyn, Australia's been pretty stable, staying on the low end of Stan's range for the 3 or 4%, and India's been actually around the 4 to 5%, so closer to historical levels, and there's a variety of factors from stimulus to policy that have caused that. So, I think that gives you a pretty good lay of the land for our goals.

Asia.

Can't really say, what the numbers would be there, but I don't know if you have anything to add David I think if you look at Asia Pacific business Cherilyn.

Australia has been pretty stable.

Low end of sales range for three or 4% in India has been absolutely around the 4% to 5% so closer to historical levels.

And there's a variety of factors from stimulus to policies have caused that so I think that that gives you a pretty good lay of the land for our <unk> business.

Speaker 4: Perfect. That's helpful color. And then it sounds like you've got a good head start on your 2022 capital deployment target, but maybe you can give us a bit more color on your deal pipeline, just including the areas of emphasis by segment and geography.

Perfect that's helpful color.

And then it sounds like you've got a good head start on your 2022 capital deployment target, but maybe you can give us a bit more.

More color on your deal pipeline, including the areas of emphasis by segment and geography.

Speaker 6: Sure, I'll tackle that one, Charlotte.

Sure I'll tackle that one Charlotte.

D.

Yes.

Speaker 6: I'd say the pipeline is actually quite robust at the moment with opportunities in all regions and in all sectors.

I would say the pipeline is actually.

Quite robust at the moment.

With opportunities.

Did all regions and in all sectors.

Speaker 6: So, and I'd say that's been the case for the past year. So we've seen sort of a broad-based...

So.

That's been the case.

For the past year or so we have we've seen sort of a broad based.

Speaker 6: recovery. And so, you know, there's the usual

Recovery.

So.

There is the usual.

Speaker 6: called secular movements from data where, you know, just just a huge capital deployment going on. So, you know, we are seeing opportunities across towers and fiber optics exist.

So let's call it secular.

Movements from data, where just a huge capital deployment going on so.

We are seeing opportunities across towers and fiber optic systems.

Speaker 6: Transportation is probably the one area where we've seen increase in activity over the last year, both as it relates to

Transportation is probably the one area, where we've seen.

The increase in activity over the last year.

Both as it relates to.

Speaker 9: airports as well as roads.

Airports as well as.

Throat.

And then.

Speaker 3: As it relates to midstream, you know, there remains, you know, we think some interesting opportunities. We have seen a recovery in some of the valuations of midstream assets with the rising commodity prices. But there, you know, I think we'll see a number of opportunities surface there as, you know, this sector becomes underinvested due to ESG wins.

As it relates to midstream there there remains.

We think some interesting opportunities we have seen a recovery in some of the.

Valuations of midstream assets with the rising commodity prices.

But there.

I think we will see a number of opportunities surface there.

As you know.

This sector becomes under invested due to ESG wins.

Speaker 6: And then we continued to look for opportunities in the utilities sector that can benefit from the decarbonization and electrification of the grid around the world. And as far as region.

And then with <unk>.

Continue to look for opportunities.

In the utility sector that.

Can benefit from the decarbonization and electrification of the.

Of the grid around the world.

And as far as regions.

Speaker 9: If I had to say, probably most of our deal pipeline is in North America and Europe , but we do have a couple of opportunities in other markets such as South America as well as the Middle East.

Probably if I had to say probably most of our deal pipeline is in North America, and Europe , but we do have.

A couple of opportunities.

In other markets.

Such as South America, as well as the Middle East.

Very helpful. Thank you for the time.

Thank you.

Speaker 1: Our next question comes from, with the RBC Capital Markets, your line is open.

Our next question comes from.

<unk> with RBC capital markets. Your line is open.

Hey, good morning.

Speaker 7: Thinking about your outlook for the business, the results and expectation for M&A activity, can you just frame all of that against the decision to increase the distribution by 6%?

Thinking about your outlook for the business the results and expectation for M&A activity can you just frame.

All of that again.

The decision to increase the distribution by 6%.

Speaker 8: Yes, I can. I'm sorry, Robert. Hey, it's David here. Um, look, Robert, I think...

I'm sorry, Robert.

Yes.

No problem.

Speaker 8: There are a number of factors that go into our recommendation or our board's approval of our distribution policies. You outlined a few of them, obviously. The growth outlook for the business...

There are a number of factors that go into our and recommendation on our board's approval of our distribution policy you outlined a few of them, obviously <unk> outlook for the business.

Speaker 2: We're very optimistic. We are operating in a good period with strong macroeconomic tailwinds, so that's certainly favorable.

We're very very optimistic.

Our operating and apparently strong macro economic tailwind so thats not my favorite of all the other things that we consider obviously on the capital needs in our business. We do have the largest backlog in our history. Today, we have a number of exciting projects that we're funding as well.

Speaker 8: are the capital needs within our business. We do have the largest backlog in our history. Today, we have a number of exciting projects that we're funding as well. And that factors in, obviously, to our liquidity levels, which is, you know, the second main consideration. And thirdly is the payout ratio. I think having that return to the high end of our target range is an important consideration for the business going forward, too. So when we balance all three of those aspects, we thought 6% in the current environment was a very appropriate level to set up the dividend.

And that factored in obviously, our liquidity levels, which as you know.

The second main consideration and thirdly is the payout ratio I think having that returned to the high end of our target range is an important consideration for the benefit of.

So when we balance all three of those aspects, we got 6% in the current environment in a very appropriate level.

And that for next year.

Speaker 7: and just in terms of framing that against prior years.

And just in terms of framing that against prior years.

Great.

Speaker 7: By all accounts, it certainly sounds like you're very optimistic and at a more optimistic end as where you've been in prior years. Is there a concerted effort then to be a little bit more conservative to pay off ratio and liquidity?

By all accounts it certainly sounds like you're very optimistic.

That's more optimistic end of where you've been in prior years is there a concerted effort to be a little bit more conservative payout ratio and liquidity.

What was that.

Speaker 7: kind of starting to be a little bit more conservative than you would have been previously.

Kind of trying to be a little bit market.

Would have been previously.

Yeah.

Speaker 5: no i look at i think you have maybe you're trying to read too much into uh... to the increase uh... i think

No I look I think maybe youre trying to read too much into.

Two the increase I think.

Speaker 5: you know, we take a longer term approach when we look at dividend increases. So some years, you know, we might be higher than people expect because the outlook may be not as robust in other years, maybe it's not as high given the enthusiasm we have for the business. I think, you know, what we came up with was, as David mentioned...

We take a longer term approach when we look at dividend increases so some years.

Yes.

Might be higher than people expect because they all look maybe not as as robust in other years, maybe it's not.

Not as high given the enthusiasm we have for the business I think.

What we came up with was as David mentioned sort of a balance taking a longer term approach.

Speaker 6: sort of a balance, taking a longer-term approach of, you know, where we see the world, our capital needs, as well as where we want to be from a payout ratio perspective.

Where we see the world our capital needs as well as where we want to be from a payout ratio perspective.

Speaker 5: And we were probably a little higher on the payout ratio the last couple of years and we want to get back to the level where we've generally operated throughout our inception, so since inception. So I think we're now back in that zone. We feel good about that. And in the coming years, if we continue to overperform, then maybe we'll come out with higher dividends.

We were probably a little higher on the payout ratio. The last couple of years and we wanted to get back to the levels, where we generally operated.

Throughout our our inception, so since inception so.

I think we're now back in that zone, we feel good about that.

And in the coming years, if we continue to over perform than maybe it will come out with higher dividend increases.

Speaker 7: Got it. I might just finish with some questions on Interpipeline. Now that you've had some more time to ask that, just some overall thoughts on what you've got, anything that's surprised you positively or negatively, and then...

Got it.

We just finished these questions.

Inter pipeline just now that you've had some more time to the assets quickly. Some overall thoughts on what you've got anything that surprised you positively or negatively and then.

Speaker 7: Anything you can give us on what you might like to do with the commodity-exposed NGL assets, including Heartland?

Anything you can give us on what you might like to give the commodity exposed NGL assets, including Heartland.

Okay, maybe I'll start.

Speaker 5: Maybe I'll start with just some general impression.

But just some general impressions.

Speaker 10: And then I'll turn it over to to fan maybe just give an update on the business and how we be commissioning of Heartland going.

And then.

I'll turn it over to Ben maybe just give an update on that.

The business and how we are how.

We see the commissioning of Heartland going.

Speaker 14: You know, for some, I think as far as the investment...

First off I think as far as the investment.

Speaker 6: You know, we feel very good today where we sit with both the investment thesis and timing around.

We feel very good today, where we sit with both the.

Investment thesis and timing around the transaction.

Speaker 9: You know, we are benefiting currently, you know, by a very strong commodity environment that's helping our customers and helping us with, you know, some of the, you know, merchant-related component of our revenue streams. So those are all, you know, great components or initial results from the acquisition.

We are benefiting.

Currently by a very strong commodity environment, that's helping our customers and helping us with.

Some of the.

Merchant related component of our revenue streams.

So those are all great.

Components of our initial results from the acquisition.

Speaker 6: We went into this knowing that we would have to execute very quickly a re-energization, I'll say, of the operations, both from a management perspective and a strategic perspective. We're well underway in achieving that.

We went into this knowing that we would have to execute.

Very quickly.

A.

<unk> I'll say of the operations, both from a management perspective and strategic perspective.

We're well underway on our way in achieving that.

<unk>.

Speaker 5: We've done this before and we're confident we...

We've done this before and we're confident we can.

Speaker 6: You know, put in place the right culture in the business. There are lots of good people within the company that we think will embrace it. And we're optimistic about the, you know, the business going forward. Maybe just, you know, I'll pause there and maybe ask Ben just to talk a little bit about, you know, Heartland and other parts.

We have put in place the right culture and the business there are lots of good people within the company.

That we think will embrace it and we're optimistic about the.

The business going forward and maybe just a pause there may be asked Ben just talked a little bit about <unk>.

Heartland and other.

Other parts of the.

The business.

Yeah, Robert It's Ben here.

Speaker 11: On a hard land, I think it's going to be outlined in the note. The Central Utility Hub is now complete in commission. So on the site, all of the mechanical works are complete. And we're into a commissioning phase. That phase will probably go to the end of Q2. So we'll have a start-up in late.

On.

On Heartland I think as we outlined in the in the note.

The central utility hub is now complete and commissioning so onsite all of the mechanical work are complete and we are into a commissioning phase.

That phase will probably go to the end of Q2, So we'll have a startup in late Q2.

Speaker 11: and early Q3, so all the mechanical risks are behind us, and on commissioning, we have very detailed plans to commission the assets and demobilize on the site over time.

In early Q3, so all the mechanical risks are are behind us.

Commissioning, we have very detailed plans to commission the assets and demobilize on the site over time.

In line with our plans.

So we had our own expectations, when we underwrote the asset and so further but no no material surprises.

As I mentioned, we expect to bring the plant into production in Q3, and overall from a commercial perspective from our off takers. We've had no surprise either there is a lot of market receptivity to the startup of the plant and so both on the physical side and on the commercial side, we're in good shape for Heartland.

That's great and just quickly on Heartland, just wondering why not significant.

Steve I don't know that's percentage wise in terms of the capital cost statement.

You just put out with respect to Heartlands.

Capex.

Sorry, Robert I don't know exactly what you're referring to but as I said for the plan that we had on underwriting we've had no no material surprises either in terms of time or or or budget or bringing the plant online in the timeframe that we had planned which is.

Speaker 11: Sorry, I don't know exactly what you're referring to, but as I said, for the plans that we had on underwriting, we've had no material surprises, either in terms of time or budget, or bringing a plant online in the time frame that we had planned, which as I said was towards the end of Q2 early Q3. So just no surprise.

As I said was towards the end of Q2 early Q3, so just no surprise.

Speaker 7: Okay, got it. Yeah, it's just a statement that Interpipeline had in a press release. Presumably, you would have blessed that. But okay, that's great. Thanks for the color.

Got it yes, it's just a statement that enter our pipeline had in the press release, presumably you would have bought that but.

That's great. Thanks for the color.

Alright. Thanks.

Speaker 1: Next question comes from Robert Cattelier with CIVC.

Excellent.

From Robert <unk> with CIBC is open.

Speaker 12: Hi, good morning. I just want to start with the inflation. Now, you've been very clear about your views on inflation, including in today's release and your comments, but perhaps there's less consensus in the marketplace. So I'm curious about the businesses where you don't have inflationary increases embedded in your contracts or indexed. How successful have you been in securing price increases?

Hi, good morning.

Just wanted to start with the inflation you've been very clear about your views on in place and including in today's release in your comments, but.

Perhaps there is less.

So it's in the marketplace. So I am curious about the businesses, where you don't have.

Inflationary increases embedded in your contracts or index.

First of all have you been in securing price increases.

Speaker 8: I can start and Ben, feel free to layer on any added color. So as we highlight, Robert, and you know well, 70% of our business is.

Yeah, I can start and then feel free.

To layer on any added color.

We highlight Robert and you know well 70% of our business.

Speaker 2: you know, linked to, indexed, or contractually escalated by inflation each year. So that is obviously the vast majority of our business.

Linked to indexed or contractually escalated by inflation each year. So that is obviously the vast majority of our business. There's a few.

Speaker 2: where we don't have that power. But if we look at our segments and as we highlight in the last, generally in our mainstream businesses where you don't have that contractual escalation, but I did benefit of what we've seen in our business today, that these pipelines are gathering and processing facilities are all pretty much fully utilized in the instance of NGPGEL for sure. These customers are competing on price, on our rules, for that incremental capacity. So we've actually been successful in securing...

Where we don't have that power, but I'd say, if we look at our segments.

Ill advised generally in our midstream businesses, where you don't have that contractual escalation, but I'd say the benefit of what we've seen in our business today. In these pipelines are gathering and processing facilities are all pretty much fully utilized in the instance of MVP off for sure that these customers are competing on price on renewals for that incremental capacity.

So we've actually been successful in securing rates that are certainly slightly ahead of where they would have been renewing that.

Speaker 8: rates that are certainly slightly ahead of where they would have been renewing at, and you know, do reflect some inflationary price pressures.

Do reflect some inflationary price.

Pressures as well as your interest.

Speaker 8: limited supply pressure that you have in the midstream space today. So I think we've been pretty successful in passing those through. So you're right, it's conservative when we only highlight that there's only 70% that are contractually exploited. I think we've seen our experience.

Emitted supply pressure that you have in the midstream space today. So I think we've been pretty successful in passing those through so you are right its conservative and when we only highlight that theres only 70%.

So that's why I think we.

We have seen in our experience we.

Speaker 2: owning essential infrastructure you tend to have that benefit to pass on prices as renewals come up in those other

Owning essential infrastructure, you tend to have that benefit to pass on prices as renewals come up in those other businesses.

Speaker 12: Okay, thanks for that. And my second question has to do with Edgar. It looks like you're

Okay. Thanks for that and my second question has to do with.

Okay curve looks like or.

Speaker 12: accomplished a lot so far, adding a number of new product lines and geographies. I'm just curious about future growth. How much more room is there to increase the product lines in that portfolio versus geographic expansion? And, you know, what type of other product lines do you envision adding? Maybe one way to address the growth of that vehicle is, you know, what level of capital are you expecting to deploy on token acquisitions as you continue to build products?

Call. This a lot so far I think a number of new product lines and geographies.

Curious about the future growth how much more room is there to increase the product lines in that portfolio versus geographic expansion.

What type of other product lines and envision adding.

And maybe one way to address the.

The growth of that vehicle as well.

What level of capital.

Are you expecting to deploy on tuck in acquisitions.

Is it continuing to build platform value there.

Speaker 14: So maybe I'll take that one on. So...

Uh huh.

I'll take that one.

So just to recap.

Speaker 9: To recap, when we bought EnerCare, effectively the business was primarily a Canadian business. They had bought a business in the U.S. and started expansion. So geographically, it was largely Canadian.

When we bought it or care.

Effectively.

The business was.

Primarily a Canadian business.

But.

Hum.

In the U S and start expansion so geographically it was.

Largely Canadian small.

Speaker 6: U.S., selling a lot of years and getting into HVAC, so two products.

Positioned U S selling lot of years and getting into HVAC. So two products.

Speaker 6: You know, what we've done in our playbook that we've been executing and copying as much as we can from B.U.K. and other businesses that we have is, you know,

What we've done in our playbook that we've been executing.

Copying as much as we can from B U K and other businesses that we have.

Is.

Speaker 3: taking what we've been successful at here in Ontario and in Canada and applying it to other regions. So we've now expanded to Europe and we now operate in the UK and Germany and our goal would be to have businesses all across Europe .

Taking what we have been successful at here.

Here in Ontario, and <unk> and in Canada.

And applying it to other regions. So we've now expanded.

Added to Europe , and we now operate in the UK in Germany, and our goal would be to have businesses all across Europe .

In addition to that.

Speaker 6: In addition to that, our market share in the U.S. is single digit, and so the ability to expand across different states and to grow in that market is quite substantial. It's a highly fragmented market environment.

Our market share in the U S is single digits and so the ability to expand across different states into growth in that market. It is quite substantial it's a highly fragmented market environment.

Speaker 10: And so the geographic opportunity is substantial still. We're nowhere near a level that we'd say is saturated.

And so the geographic opportunity is substantial still but we're nowhere near.

A level that we'd say is a saturated.

Speaker 6: And then, you know, we've increased the breadth of products now by adding both solar product as well as...

And then we have increased the breadth of products now by adding.

Both the solar product as well as.

Speaker 5: the generators. And so that takes advantage of the distribution capabilities that we have. So we've got the four products that say today we don't have another product that's in the R&D stage yet, but I think we will hopefully find another one. Geographically, we're looking to expand within both Europe and...

The generators.

And so that takes advantage of the distribution capabilities that we have so we've got the four products I'd say today, we don't have another product that's in.

In the R&D stage, yet, but I think we will hopefully find another one.

Geographically, we are looking to expand within both Europe and.

Speaker 9: and the U.S. We are looking at taking the model to our utility business down in South America in Columbia, and so that's a further expansion of the business model.

And the U S.

We are looking at taking the model to our utility business down in South America, and in Colombia, and so that's a further expansion of the business model.

Speaker 5: And as far as, you know, what that means in capital, I would say, you know, we've done it on both a...

And and as far as what that means in capital I would say we've done it on both a.

Speaker 6: Capital light and capital heavy basis most of the investments so far have been quite modest from a dollar perspective

Capital light and capital heavy basis.

Most of the investments so far have been quite modest from a dollar perspective.

Speaker 3: But they do require capital. When we expand using the dealer model, that's a capital-like approach where we've entered into relationships with other parties where we can buy their rental streams based on a predefined criteria. And we'll look to execute that.

But they do have our required capital.

When we expand using the dealer model.

That's a capital light approach, where we've entered into relationships with other parties, where we can buy their rental streams.

Based on our pre defined criteria.

And we will look to execute that.

And all the different regions.

Speaker 9: And to the extent that there is a large business opportunity to tack onto this, given the success we've had and what we think is a much larger opportunity, we'll look at that as well. So today...

And to extent that there is a large.

Business opportunity to tack onto this.

Given the success, we've had and what we think is a.

A much larger opportunity.

Look at that as well so.

Today.

Speaker 6: all the different investments in our pipeline are relatively.

All of the different.

Investments in our pipeline are relatively small from a bid perspective, but we are looking for some large tuck ins that could really step changes business as well.

Speaker 21: small from a bid perspective, but we are looking for some large tuck-ins that could really step change this business as well.

Okay.

Yes, that's very helpful color. Thank you very much.

Speaker 1: Our next question comes from Frederic Bastien with Raymond James. Your line is open.

Our next question comes from Jay <unk> with Raymond James Your line is open.

Good morning, guys.

Speaker 13: You've done a good job deploying capital into high-return assets over time and you've been generally agnostic about the end markets that these assets fall under. But I recall you targeting a long-term FFO mix that was sort of evenly distributed across your four operating platforms.

You've done a good job deploying capital into high return assets over time, and you've been generally agnostic about the end markets that these assets fall under.

But I recall, you were targeting a long term asset for mix.

Sort of evenly distributed across your four operating platforms at least thats what.

Speaker 13: you're shooting for and that leaves data as the one business that seems to be still subscale despite the nice growth we've seen in recent years. Can you comment on your ambitions for that particular segment and whether those long-term goals are still valid?

Youre shooting for.

And that leaves data is the one business that seems to be still sub scale.

A nice growth we've seen in that in recent years can you comment on sort of your ambitions for that particular segment and whether those long term goals still are still valid.

Yeah, Hi, Fred Thanks for the question.

Speaker 14: Look, I think the...

Okay.

Look I think the.

Speaker 9: Our expectation would be that given the amount of yield flow that we see in the data sector that over time, it's scale within our business. We'll get to a spot where it's at least on par and maybe down the road, who knows, maybe exceed some other segments within our business.

Our expectation would be that given the amount of deal flow that we see in the data sector that overtime.

It's a scale within our business.

We'll get to a spot where it's a at.

At least on par and maybe down the road, who knows maybe exceed some other.

Segments within our business.

Speaker 9: I think part of the fact is we have been in the other segments for a long time and so have a lot of historical investments within the midstream and transportation and utility sectors. So it just will take some time before we see that shift that reflects the emergence of data as an infrastructure sector. .

I think part of the fact is we have been in the other segments you know for a long time and so have a lot of historical.

Investments within the midstream and.

Transportation and utility sectors.

It just will take some time before we see that shift.

Shift that reflects the emergence of data as it infrastructure sector.

Speaker 9: As we look at our pipeline for the last couple of years, you know.

But yes.

As we look at our pipeline.

For the last couple of years.

Speaker 6: Data has always been sort of, you know...

Data has always been sort of.

Speaker 6: a significant component of it, and it's an area we're focused on. The only caveat that limits our ability to grow it quicker is the fact that there is a fair amount of competition for these assets, and we are value investors, so we need to pick our spots where we can earn the right risk-adjusted returns.

A significant component of it and it's an area we're focused on them, but the only caveat that limits our ability to grow it quicker is the fact that.

There is a fair amount of competition for these assets and we are value investors. So we need to pick our spots, where we can earn the right risk adjusted returns.

Speaker 6: So we will look to summarize. We are looking to grow it. We will grow it, but we're not going to do in a way that damages our overall returns.

So we.

We will look to so to summarize we are looking to grow it we will grow it but we're not going to do in a way that.

Damages our overall.

Turns of the business.

Speaker 13: No, understood. And just as a follow-up, does this platform offer...

Understood and does the just as a follow up does this platform offer.

Speaker 13: Similarly attractive organic growth opportunities than the other ones or is this

Similarly attractive organic growth opportunities in the other ones or is this.

Speaker 13: Is this growth going to be achieved predominantly through acquisition?

Is this growth going to be achieve predominantly through acquisition.

Well we are.

Speaker 14: We're doing it both ways. As you know, we've set up...

We're doing it both ways as you know we've we've set up.

Speaker 6: you know, various development platforms as relates to data centers pretty much around the world. We have it in South America, Europe now.

Various development platforms as it relates to data centers pretty much around the world We happened in South America Europe now.

Speaker 5: Asia as well as India so we have forward distinct development businesses as relates to data centers. That's a big focus for us.

Asia as well as India. So look it's we have four distinct.

The development business is as it relates to data centers.

A big focus for us.

Speaker 6: But I think equally important will be an M&A strategy.

But I think equally important will be an M&A strategy to buy.

Speaker 21: by some additional cash flowing businesses, as well as ones that, you know, in the fiber optic business where we can execute an overbuilt strategy and an upgrade network.

Some additional cash flowing businesses as well as ones that are.

In the fiber optic business, where we can.

Executed overbuild strategy.

Great network.

Great. Thanks, I appreciate it.

Thank you very much.

Speaker 1: Next question comes from Devon Dodge with BMO Capital Markets. Your line is open.

Our next question comes from Devin Dodge with BMO capital markets. Your line is open.

Speaker 15: All right, thanks. So I wonder if your thoughts on capital deployment in Latin America? We've seen political shift in some countries. I think Brazil has elections later this year. And if the polls are right, I think we could see a change there as well. Just how do these situations?

Thanks.

I wanted to get your thoughts on capital deployment in Latin America, we've seen no political shifting some countries I think Brazil has elections later this year.

The polls are right I think we could see a change there as well just how did these situations.

Speaker 15: influencer decision making around capital deployment in the region. Have you seen any noticeable shift in the willingness of say others?

Influence your decision, making around capital deployment in the region have you seen any noticeable shifts.

And the willingness of let's say others to invest in those countries.

Okay.

Speaker 6: As I look at that, that's a very timely question because there has been a lot of...

I look at that that's a very.

Very timely question because there has been a lot of.

Speaker 6: changes from a political perspective just in the last year in the region. There's been a pretty dramatic shift to the left.

Changes from a political perspective, just in the last year in the region.

There's been a pretty dramatic shift to the left.

Speaker 21: And that has caused some uncertainty, and obviously where there exists uncertainty that tends to reduce investor appetite. I would say from our own perspective, we have taken a probably more cautious approach to the region over the last couple of years.

And that has caused some.

Uncertainty and that obviously is where there exists uncertainty that tends to reduce our investor appetite.

I would say from our own perspective, we have taken a.

Probably a more cautious approach to the region over the last couple of years.

Speaker 6: Our businesses, you know, having said that, our businesses for the most part have operated without any significant issues from a political perspective and they're operating pretty well. So even though there has been change in government.

Our our businesses, having said that our businesses for the most part have operated.

Yeah without any significant issues from a political perspective.

And they are operating pretty well, so even though there has been change in government.

Speaker 6: We haven't seen any real negative impact on our operations. So that's the positive. And so that gives us a confidence to consider new opportunities in the real world.

We haven't seen any any real negative impact on our operations. So that's a positive.

And so that gives us a you know a.

Confidence to considered.

New opportunities in the region.

Speaker 5: But having said that, I think how we've changed our approach.

But having said that I think what how we've changed our approach.

Speaker 5: is that we are looking for businesses where we can reduce the FX exposure. Some of our businesses, even though they've operated really well, have been negatively impacted by volatility FX.

Is yeah, we are looking for businesses.

Businesses, where we are we can reduce the FX exposure.

Yes, some of our businesses.

Even though they are operated really well have been directly impacted by volatility.

Volatility FX, so to extent that we can buy more USD denominated.

Speaker 6: buy more USD-denominated businesses in the region, that's definitely a focus for us. And I think we're also focused on more B2B businesses where

Denominated business in the region that that's definitely a focus for us and I think.

We're also focused on lower <unk> businesses.

We're.

Speaker 6: you know, risk of, you know, populous actions because you're selling a service or a good to a consumer is taken out of the equation. That tends to be, in these moments of time, you know, your biggest risk in those.

Risk of.

Pop this actions because you're you're.

Selling a service or a good to a the consumer is taken out of the equation that tends to be in these moments of time you know you have your biggest risk in.

In those regions. So I'd say, that's our focus of our strategy.

Speaker 6: So I'd say that's our focus of our strategy. You know, we still have a few things that we're looking at in the region. So, you know, we hopefully will add to our business.

We still have a few things that we're looking at in the region. So.

Yeah, we hope hopefully will add to our businesses.

Speaker 5: We are recycling other businesses in the region as well, so on that basis, I doubt it will grow, but we still remain relatively positive.

Our recycling other businesses in the region as well so.

On a net debt basis, I doubt it will grow but.

Yeah, we still remain relatively positive.

Okay. Thanks for that.

Speaker 15: for that. My last question is on your NatGas storage business. You know, 2021, we can all agree, it was pretty atypical year. I think Rock Point was a big beneficiary of some supply disruptions.

Last questions on your on your Nat gas storage business.

2021 .

All agree it's pretty atypical year, I think rock point was a big beneficiary of some supply disruptions.

Speaker 15: And then I think that the pattern of gas prices for the year was a bit different than no typical, you know, seasonal pattern.

And then I think the pattern of gas prices for the year was a bit different than typical seasonal seasonal pattern. So.

Speaker 15: It seems like there could be a tough setup for RockPoint from an earnings growth perspective, but can you frame what you expect this to be like a small headwind in 2022 or maybe something a bit more?

It seems like there could be a tough setup for rock point from an earnings growth perspective, but can you frame. What you expect this do you expect it to be like a small headwind in 'twenty, two where maybe something a bit more meaningful.

Speaker 8: I can start, and Ben or Sam, feel free to supplement. I think from a rearing standpoint, Ben, you're right. We certainly had the benefit this year of

Yeah.

I can start and banner staffed up to something I think from an earnings standpoint, and you're right. We certainly had the benefit this year of <unk>.

Speaker 2: of someone to over-performance that we highlight in the first quarter. I think we highlighted it was $65, $70 million in the first quarter. That was just, you know, uncharacteristic of his business in the past. But that was, you know, that is part of the value of these act that they provide critical infrastructure to an integrated gas market in the investment canton and in parts of California where we own our businesses. So, I think...

Some of the over performance that we highlight in the first quarter I think we highlighted it was 65 $70 million in the first part of that was just you know I'm characteristic of this business in the past, but that was part of the value of these assets may provide critical infrastructure to an integrated gas market in western Canada and in parts of California, where we own our businesses.

I think.

Speaker 8: It's hard to predict what will happen. A lot of the performance is dependent on weather conditions in much of North America and, as you said, supplies. So all else equal, if we go back to normal levels, you could expect to see a $60-70 million dollar probably reduction in our gas storage performance year over year, but we're optimistic that our business can capture incremental volumes and maximize.

It's hard to it's hard to predict what will happen a lot of the performance is dependent on weather conditions in much of North America, and I think that supply. So all else equal if we go back to normal levels, you could expect to see $60 million to $70 million, probably a reduction in our gas stores performance year over year, but you know.

We are optimistic that our business can capture incremental volumes and maximize.

Speaker 8: the tariff or spread between between seasonal demand at our businesses and capture some of that back, but if that's what you're looking at, I'd say that's kind of a small headwind that we face looking ahead into 2020.

The tariff spread between between seasonal Canada.

And capture some of that back but.

I figured I'd say, that's kind of a small headwind that we face looking ahead into 2022.

Speaker 5: Maybe I'll add to that is.

Maybe I'll add to that is.

Speaker 9: Yeah, as David said, there was a great result early in the year.

Yeah, David said.

There was a great result early of the year end.

And.

Speaker 14: being able to replicate that may be difficult. But having said that, I think the...

Being able to replicate that may be difficult.

But having said that I.

I think the.

Speaker 3: the thesis around the assets and the services it provides has probably not looked better in the last 8 to 10 years.

Dean.

The thesis around the assets and the services. It provides is probably not look better in the last eight to 10 years I think.

Speaker 5: What we're going into is a period of significant commodity price volatility.

What we're going.

Going into as a period of.

Significant commodity price volatility.

Speaker 9: and just business yield captures intrinsic at next, intrinsic spreads. And many of those when gas was flowing.

And just business captures intrinsic next transit.

Spreads and many of those win.

The gas was flowing.

Speaker 21: you know, very strong in the U.S. and investment in the upstream sector was very robust. It took away a lot of those spreads. But today, you know, there is a – and we think it will continue to be sort of a reduction in investment in production. And as a result, we are going to see more periods where you have scarcity and higher prices. And that's great for this business, because it's –

You know very strong in the U S and investments in the upstream sector was very robust it took away a lot of those spreads.

But today.

You know that there is a and we think it will continue to be sort of a reduction in.

Investment in production and as a result, we are gonna see more periods, where you have scarcity and higher prices and that's that's great for this business because this is our customers need to.

Speaker 6: Our customers need to remember that they should buy insurance and protect themselves against the volatility in prices.

Remember that they should buy insurance and protect themselves against the volatility in prices.

Speaker 21: and this business provides that type of service.

And.

This business provides that type of service.

Thanks, that's helpful context, I'll turn it over thank you.

Yeah.

Thank you. Our next question comes from Rajeev <unk> with I E capital markets. Your line is open.

Speaker 16: Good morning. I just have one question. You've successfully deployed $3 billion of equity capital last year. You already have for three years 2022 targets. You raised equity at the end of last year to pre-fund new growth in what sounds like a very healthy M&A pipeline. I guess in this context, how do you position yourself or what would need to happen for you to exceed your $1.5 billion a year equity capital deployment objective?

Good morning.

Just had one question.

Successfully deployed 3 billion of equity capital last year, you're already halfway through your 2022 targets.

Raised equity at the end of last year, it's a pretty fun new growth.

And what sounds like a very healthy M&A pipeline.

In this context, how do you position yourself or what would need to happen for you to exceed $1 5 billion a year equity capital deployment objectives.

Hum.

Speaker 6: So look, today, for us to exceed that target, we need to be successful in converting our pipeline. Last year, we were very successful in one large transaction. I think as we mentioned at the outset, our pipeline is very strong.

So look I am.

Today.

For us to exceed that target, we need to be successful in converting our pipeline last year.

We were very successful in one large transaction.

I think as we mentioned at the outset, our pipeline is very strong.

One five is.

Speaker 6: Bill, it is an amount that, you know, we have.

The bill is isn't amount debt.

We have.

Speaker 9: been able to deploy on a regular basis so it's really a...

<unk> been able to deploy on a regular basis. So it's it's really a.

Speaker 6: Not an absolute number, we don't set out to hit that number per se, it's just our sense of what we think is a regular run rate growth deployment level. And today if the capital markets stay constructive and in fact if there's a little bit of a pullback in certain sectors that help us get more comfortable from an evaluation perspective, then we're going to be able to move forward.

Not an absolute number we don't set out to hit that number per se. It's just our sense of what we think is a regular run rate growth deployment level.

And today at the capital markets day.

Constructive and if in fact, if there's a little bit of a pullback in certain sectors.

That help us get more comfortable from a valuation perspective, then yes it.

Speaker 6: It's very possible we could again have another outsized year from a deployment perspective.

It's very possible, we could again have another outsized year from a deployment perspective.

But.

Speaker 5: At this stage, other than the fact that we have already secured half of our deployment, which positions as well, we just earned it in the new year, that would be the only factor today that would give us confidence for sure that we can do better. But I think at this stage we're still...

At this stage other than the fact that we have already secured half of our deployment.

It positions us well.

Early in the new year.

Got it.

That would be the only factor today that would give us confidence for sure that we can do better but I think at this stage we're still.

Speaker 17: signaling that our annual deployment target is 1.5 and we haven't moved off of that yet.

Signaling that you know our annual deployment target of one five and we haven't moved off of that yet.

Okay. Thanks for that that's all for me.

Our next question comes from Hope with Scotiabank. Your line is open.

Speaker 11: Good morning, everyone. Rob Hope from Scotiabank. Just a follow-up question. Just regarding the opportunities you're seeing on the data side, we have seen public market valuations pull back a little bit here over the last month. Is that providing you some opportunities there, or has that not been quite enough, or it's been too little amount of time? Or are the data opportunities you're seeing more on charge-outs than kind of things where you've seen more of the opportunities historically?

Good morning, everyone. Rocco. Please go ahead.

Just a follow up question just regarding the opportunities youre seeing on the data side, we have seen public market valuations have pulled back a little bit here over the last month.

That providing you some opportunities there or is that not been quite enough or it's been too little amount of time or are the opportunities you're seeing more on target, it's been kind of things where you've seen.

More of the opportunities historically.

Speaker 21: Hi, Rob. I'd say it's, the pullback has been, you know...

Yeah, Hi, Rob.

I'd say it's a.

The pullback has been you know to them too.

Speaker 9: too short at this stage to...

Two short.

At this stage too.

Speaker 21: to draw any views from a market perspective of what we could do. I think most of what we're focused on today

Yeah.

Any views from a.

From a market perspective of what we could do I think.

Most of what we're focused on today.

Speaker 6: is related to carve-outs. To the extent that the market stays lower for longer, then I think that does open up some take-private opportunities, but it needs to stay down for at least some period of time before people's views are reset from an expectation of value.

Is it related to carve outs.

To the extent that the market stays lower for longer.

Then I think that does open up some take private opportunities.

But it needs to stay down for at least some period of time before.

People's views are a reset from a expectation of value.

Thank you.

Speaker 1: Our next question comes from Pat Kinney with National Bank Financial. You're going to vote.

Our next question comes from Patrick <unk> with National Bank Financial Your line is open.

Speaker 18: Thank you, good morning guys. Just a circle back on the IPL business. Any update on discussions with TC Energy and Pemana to participate in the Alberta Carbon Grid Initiative. I'm just curious when we might get a little bit more color on potentially joining this partnership, or if you decide not to perhaps moving forward with any other sequestration or decarbonization opportunities within the IPL portfolio.

Thank you good morning, guys just to circle back on the IPO business.

Any update on discussions with Tc energy and Pembina too.

Dissipate in.

In the Alberta carbon grid initiatives I'm just curious.

We might get a little bit more color on potentially.

Essentially joining this partnership or if you decide not to perhaps moving forward with any other sequestration or decarbonization opportunities within the IPL portfolio.

Speaker 11: We have a number of initiatives that we're in the early stages of looking at on the topic of carbon across all of our midstream assets, but I don't really have any specific comments on specific commercial or other discussions with direct counterparties at this point, but it is a topic that is a focus for the government.

Yeah, Patrick it's Ben here.

We have a number of you know.

This shifts that we are in the early stages of looking at an.

On the topic of carbon across all of our midstream assets, but I don't really have any specific comments on specific commercial or other discussions with direct counterparties at this point, but it is a topic that is.

It is a focus for the group right now.

Speaker 18: Okay, so just in terms of time frame, first half of a year decision or could this leak into 2023 and still be assessing the Alberta carbon grid?

Okay. So just in terms of timeframe.

First half of the year decision or could this leak into 2023 and still be assessing.

The Alberta carbon grid.

Okay.

Speaker 11: It's very hard to pick a top-side Patrick. I don't have a strong view as to whether this year or at least in the next year it's these kinds of topics, I think, like I said, generally speaking there in their early stages and they're starting to cement themselves over time, it's very hard to put pins and overtaking decision based on things that Everything is going so here isn't looking very well in its own way. learned things.

Okay.

It's very hard to pick a time, Patrick I I don't have a strong view as to whether its this year or at least into next year. It's.

<unk>.

These kinds of topics I think like I said generally speaking they're in their early stages and they're starting to cement themselves over time, but it's very hard to put.

Pins and dates on things at this point.

Speaker 18: Fair enough. We saw a small Alberta gas storage transaction in the quarter, so I'm just curious to get an update on how your Alberta hub is performing right now relative to recent years. Also, if you view these assets as a long-term strategic fit within your midstream portfolio or maybe more as a candidate for asset recycling similar to the European storage business.

Okay fair enough.

And then we saw a small alberta gas storage transaction in the quarter. So I'm just curious to get an update.

And how your Alberta hub is performing right now relative to say recent years and I guess also if you view these assets as a long term strategic fit within your midstream portfolio or maybe more.

Candidate for asset recycling similar to say the European storage business.

Speaker 14: Patrick, maybe I'll tackle that one. You know, as far as the operations of the businesses, you know, we have, we've not.

Uh Huh, Patrick maybe I'll I'll I'll tackle that one.

Yeah as far as the the operations of the businesses.

The.

We've not seen I would say.

Speaker 10: as much strength in the Canadian operations as we have in the U.S. operations and we have definitely seen much more stronger contractual pricing and interest in our California.

As much strength in the Canadian operations as we have in the U S operations.

We have definitely seen much more stronger contractual.

Pricing and interest in <unk>.

Uh Huh, and our California business for instance.

Speaker 9: But we do think that the Canadian business is an exceptional business.

But yeah, we do think that our Canadian business is an exceptional business and we'll see improved pricing going forward.

Speaker 6: and we'll see improved pricing going forward.

As far as you know.

Speaker 21: You know, where it fits, you know, look, at some point in the future, you know, it is probably a business that we will sell. It's not because we don't like it, but at some point, you know, we will have done all we can to improve and de-risk the business, and it will make sense to monetize. But we haven't picked a timeframe for when we would do that.

You know where it fits I you know I look at some point in the future you know it is probably a business that we will sell its not because we don't like it but at some point.

We will have done all we can to improve and derisk the business and it will make sense to to monetize.

But we havent picked a timeframe for when we would do that.

Okay. That's great I appreciate the color. Thanks.

Thank you.

Speaker 1: Our last question comes from Andrew T. with Credit Police. Your line is open.

Our last question comes from Andrew <unk> with Credit Suisse. Your line is open.

Speaker 19: Thanks. I guess a big picture question on your thematic investing. You guys have historically been very long-term investors in how you think about things and try to pick your spots.

Thanks, I guess, a big picture question on.

The thematic investing and you guys have historically been very long term investors and how you think about things and trying to pick your spots.

Speaker 19: But maybe if we could just sort of address some of the big themes around maybe water stress on a global scale, I mean, you've dabbled in the space a little bit, but nothing overly significant. Is that a function of government control, the returns or just opportunities lacking? And then maybe that morphs into a broader question on just social infrastructure, whether it be health care, education, all that kind of stuff.

But maybe if we could just sort of address some of the big themes around maybe water stress on a global scale I mean, you've dabbled in the space a little bit, but nothing overly significant is that a function of government control. The returns are just opportunities walking and then maybe that morphs into a broader question on just social infrastructure, whether it be health care education, all of that kind of.

Stuff.

Yeah.

Speaker 21: Sorry, Andrew, can you just sort of restate that question? I didn't quite grasp.

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

Speaker 17: Yeah, so, I mean, just on the thematic investing, you know, to what degree are you really trying to poke around on some of the bigger themes around whether it's water stress or social infrastructure, you know, are they of interest to you because they're big capital opportunities in certain parts of the world or, you know, is it an area that's not of interest because too much government control or returns are insufficient for you relative to other things? Yeah, no, I...

So just on the thematic investing.

To what degree are you really trying to poke around on some of the bigger themes around whether it's water stress.

Our social infrastructure.

They are of interest to you or is there a big capital opportunities in certain parts of the world or.

Is that an area that's not of interest is too much government control or returns or are insufficient for you relative to other things.

Yeah.

Right.

I understand the question.

I would say today, we are spending a lot of time.

Speaker 6: We're spending a lot of time on those areas, whether it's healthcare or social infrastructure. The challenge is...

Those areas, whether it's a health care or social infrastructure.

The challenge is.

Speaker 5: you know, framing an actionable opportunity is difficult and time-consuming.

Framing and actionable opportunity is difficult and time consuming and we just.

Speaker 6: don't have them in front of us. I think where we are spending a lot of time is...

Don't have them in front of us I think.

We're where we are spending a lot of time is.

Speaker 21: It's really around the data, telecom complex, and finding new ways to help that sector recapitalize and fund the huge amount of capital that they have in front of them.

Joey is really around the.

The data telecom complex and finding.

New ways to help that sector.

Recapitalize and fund the huge amount of capital that they have in front of them.

Speaker 9: You know, we're also looking, I'd say, you know, another sector that, you know, we are also thinking about is the air product sector, which today has been, you know, quite concentrated with a few large players, but there's opportunities around the world where they don't have quite as, you know, the strong market presence and where we may find a way to get into the business.

We're also looking I'd say.

Uh huh.

Another.

Sector that we are also thinking about is are the air product sector, which today has been.

Concentrated with a few large players, but there's opportunities around the world.

Where they don't have quite as.

The strong market presence and where we may find a way to get into the business because we see it as an interesting.

Speaker 5: We see it as an interesting industry to explore, but as far as the social and healthcare, today we don't have initiatives underway.

Industry to explore.

But as far as the social and health care today, we don't have initiatives underway.

Speaker 19: Okay, that's that's very helpful. And then maybe just in the context of your broader portfolio allocation.

Okay. That's very helpful and then.

Maybe just in the context of your broader portfolio allocation.

Speaker 19: does the model that you've got with the flagship funds and then the core, super core, core plus, whatever we want to call them, is that sort of helpful in your ability to be maybe more creative on actually securing transactions into the future?

Does the model that you've got with the flagship funds and then the core Super core core plus whatever were on a call them is that sort of helpful. In your ability to be maybe more creative on.

Actually securing transactions into the future.

Speaker 21: Uh, look, absolutely. So, um...

Look absolutely so.

Speaker 10: The fact that we can go into any conversation with a counterparty and be able to...

The fact that we can go into any conversation with a counterparty and.

Be able to.

Discuss.

Speaker 10: credit or

Credit or.

That's called the <unk>.

Low cost income structured equity investments or or just a full control transaction.

You know it gives us the full playbook and are it's very powerful and the fact that each one of our Ah.

Capital pools, as a large scale and and with lots of firepower.

Speaker 5: It gives us one of the most unique franchises out there, so yes, it is helpful.

I think.

It gives us a one of the most unique franchises out there. So yes. It is helpful.

Okay. That's great. Thank you very much.

Yeah.

Speaker 1: Thank you. We are out of time for questions. I would now like to turn the call over to CEO Sam Pollock for closing remarks.

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

Speaker 6: Okay, thank you, operator, and look, we appreciate all the interest we had today on the call. We had a lot of questions, and we appreciate everyone who joined us to listen in. We hope you enjoy the rest of the winter, and

Okay. Thank you operator, and Oh look we appreciate all the interest we had today on the call with a lot of questions.

And we appreciate everyone, who joined us to listen in.

I hope you enjoy the rest of the winter and.

Speaker 5: Look forward to speaking to you again next quarter. Thank you very much

I look forward to speaking to you again next quarter. Thank you very much.

Yes.

Speaker 1: This concludes today's conference call. Thank you for participating. You may now disconnect.

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