FOURTH QUARTER AND FULL YEAR, DECEMBER 31, 2024 Cautionary Statement Regarding Forward-Looking Statements Factors that could cause actual results of Brookfield Infrastructure to differ materially from those contemplated or implied by the statements in this presentation include general economic and market conditions in the jurisdictions in which we operate (including that management's expectations may differ from actual economic and market trends), regulatory developments and changes in inflation rates in th ...

Group 1 - Brookfield Infrastructure Partners reported revenue of $5.44 billion for the quarter ended December 2024, reflecting a 9.5% increase year-over-year [1] - The earnings per share (EPS) for the quarter was $0.82, a significant improvement from -$0.20 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $5.16 billion by 5.47%, and the EPS also surpassed the consensus estimate of $0.79 by 3.80% [1] Group 2 - Key metrics indicate that Brookfield Infrastructure's shares returned +1.1% over the past month, slightly underperforming the Zacks S&P 500 composite's +1.2% change [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance against the broader market in the near term [3] Group 3 - Adjusted EBITDA for Utilities was reported at $317 million, slightly above the average estimate of $315.07 million [4] - Adjusted EBITDA for Transport was $403 million, closely matching the average estimate of $403.79 million [4] - Adjusted EBITDA for Midstream was $253 million, exceeding the average estimate of $246.53 million [4] - Adjusted EBITDA for Corporate was -$103 million, better than the average estimate of -$106.31 million [4] - Adjusted EBITDA for Data was $177 million, surpassing the average estimate of $167.71 million [4]

Core Insights - Brookfield Infrastructure Partners reported strong financial results for the year ended December 31, 2024, with a net income of $391 million, down from $432 million in 2023, and funds from operations (FFO) of $2.5 billion, an increase of approximately 8% compared to the previous year [2][3][29]. Financial Performance - The company generated FFO of $2,468 million for 2024, reflecting an organic growth of 7%, driven by elevated inflation, stronger volumes across infrastructure networks, and the commissioning of over $1 billion in new capital projects [3][4]. - The utilities segment reported FFO of $760 million, down from $879 million in 2023, primarily due to asset sales and currency impacts [4]. - The transport segment saw a significant increase in FFO to $1,224 million, nearly 40% higher than the previous year, attributed to acquisitions and increased volumes [5][6]. - The midstream segment generated FFO of $625 million, an 11% year-over-year growth, despite a decrease from $684 million in the prior year due to capital recycling activities [7]. - The data segment reported FFO of $333 million, a 21% increase over the prior year, driven by strong organic growth and new investments [8]. Strategic Initiatives - The company achieved $2 billion in capital recycling proceeds in 2024 and anticipates delivering $5-6 billion in asset sale proceeds over the next two years, supported by increased investor interest in high-quality infrastructure assets [9][11]. - Recent asset sales included a fiber platform in France generating approximately $100 million and a Mexican natural gas pipeline expected to yield around $500 million [10]. Distribution and Dividend - The Board of Directors declared a quarterly distribution of $0.43 per unit, representing a 6% increase compared to the prior year, payable on March 31, 2025 [12][41].

Core Insights - Brookfield Infrastructure Partners reported strong financial results for the year ended December 31, 2024, with a net income of $391 million, down from $432 million in 2023, but with funds from operations (FFO) increasing to $2.5 billion, an 8% rise year-over-year [2][3][4]. Financial Performance - The company generated FFO of $2,468 million for 2024, compared to $2,288 million in 2023, reflecting an organic growth of 7% driven by inflation and increased volumes across infrastructure networks [3][4]. - Net income attributable to the partnership was $391 million, with a per unit income of $0.04, down from $0.14 in the previous year [2][29]. - Revenues for 2024 reached $21,039 million, up from $17,931 million in 2023, while direct operating costs increased to $15,676 million from $13,470 million [28]. Segment Performance - The utilities segment generated FFO of $760 million, down from $879 million in 2023, primarily due to asset sales [5]. - The transport segment saw a significant increase in FFO to $1,224 million, a nearly 40% rise attributed to acquisitions and increased volumes [6][7]. - The midstream segment reported FFO of $625 million, an 11% increase year-over-year, despite a decrease from $684 million due to capital recycling activities [8]. - The data segment achieved FFO of $333 million, a 21% increase, driven by strong organic growth and new investments [9]. Strategic Initiatives - The company successfully achieved $2 billion in capital recycling proceeds in 2024 and anticipates $5-6 billion in asset sale proceeds over the next two years [10][12]. - Recent asset sales included a fiber platform in France and a natural gas transmission pipeline in Mexico, generating significant returns [11]. Distribution and Dividend - The Board of Directors declared a quarterly distribution of $0.43 per unit, representing a 6% increase compared to the prior year, payable on March 31, 2025 [13][38]. Cash Flow and Financial Position - Cash from operating activities for 2024 was $4,653 million, compared to $4,078 million in 2023, while cash used in investing activities was $6,901 million [30]. - As of December 31, 2024, total assets amounted to $104,590 million, up from $100,784 million in 2023 [25][27].

Dividend Stocks Performance - Dividend-paying stocks have outperformed non-payers by more than 2-to-1 over the last 50 years, with an average annual total return of 9.2% compared to 4.3% [2] - Companies that grow their dividends have significantly higher returns (10.2%) compared to those that maintain (6.7%) or cut/eliminate dividends (-0.6%) [3] Realty Income (O) - Realty Income has increased its dividend 128 times since going public 30 years ago, with a 4.2% compound annual growth rate and a 14.1% compound annual total return [4] - The REIT owns 15,500 properties across retail, industrial, and gaming sectors, with net leases providing stable and rising rental income [6] - Realty Income pays out 75% of its adjusted FFO in dividends, retaining cash for new investments, and estimates internal growth drivers will add 2% to FFO per share annually [7] - The company has a strong balance sheet and a new private fund management platform, supporting mid-single-digit FFO growth and a steadily rising dividend [8] - With a 6% dividend yield and mid-single-digit earnings growth, Realty Income could deliver double-digit total annual returns [9] Brookfield Infrastructure (BIPC/BIP) - Brookfield Infrastructure has grown its dividend at a 9% compound annual rate since 2009, contributing to 13.3% total annual returns [10] - The company generates stable cash flow, with 85% of FFO from long-term contracts or regulated rate structures, and inflation escalators adding 3%-4% to FFO per share annually [11] - Brookfield Infrastructure has a conservative dividend payout ratio (60%-70% of FFO) and a strong balance sheet, enabling investments in $8 billion of capital projects over the next 2-3 years [12][13] - The company has over $4 billion in additional expansion projects and a pipeline of acquisition opportunities, targeting over 10% annual FFO growth [14] - With a 4% dividend yield and over 10% annual earnings growth, Brookfield Infrastructure could achieve mid-teens total annualized returns [15] Long-Term Dividend Growth Stocks - Dividend growth stocks like Realty Income and Brookfield Infrastructure have historically delivered strong returns due to steadily rising dividends and are well-positioned for future growth [16]

Group 1: 3M Company - 3M's new management is focused on positioning the company for growth despite a challenging global growth environment and interest rate pressures [3][4] - The restructuring plan led by CEO Bill Brown aims to improve margins and earnings through innovative product development and operational efficiencies [5][6] - Previous management's focus on healthcare and litigation issues has hindered performance, but with clarity on legal matters, there is significant upside potential for 3M's stock [7][8] Group 2: Brookfield Infrastructure - Brookfield Infrastructure's stock has underperformed, gaining only 1% in 2024 and dipping about 2% in 2025, currently valued at 2.9 times operating cash flow [9][10] - The company has a diversified portfolio with transportation assets contributing 42% to funds from operations (FFO), and it has achieved a 15% compound annual growth rate in FFO from 2009 to 2023 [10][11] - Management targets annual distribution growth of 5% to 9%, supported by an investment-grade balance sheet, making it appealing for income investors [12][13]

Core Viewpoint - Foundry JV Holdco LLC has successfully completed a consent solicitation for amendments to its outstanding senior secured notes, indicating a strategic move to enhance its financial structure and obligations [1][2]. Group 1: Consent Solicitation Details - The consent solicitation received approvals from holders of over 50% of the aggregate principal amount of each series of notes, allowing the company to execute supplemental indentures for the proposed amendments [2]. - The consent solicitation expired on January 17, 2025, at 5:00 p.m. New York City time, leading to the execution of the supplemental indentures [2]. - The proposed amendments will become effective upon the satisfaction or waiver of specific conditions and the payment of a consent fee of $1.00 per $1,000 in principal amount of notes [3]. Group 2: Financial and Operational Context - Foundry JV Holdco LLC is indirectly owned by Brookfield Infrastructure Partners L.P. and is involved in a partnership with Intel Corporation to invest in Intel's manufacturing expansion in Arizona [6]. - The project includes the construction of two semiconductor wafer fabrication buildings, Fab 52 and Fab 62, which are part of a broader strategy to enhance semiconductor production capabilities [6].

Core Viewpoint - Brookfield Infrastructure Partners (BIP) shows potential for significant upside, with a mean price target of $39.89 indicating a 27.9% increase from the current price of $31.20 [1] Price Target Analysis - The average price target consists of nine estimates ranging from $34 to $50, with a standard deviation of $4.78, suggesting a consensus among analysts [2] - The lowest estimate indicates a 9% increase, while the highest suggests a 60.3% upside, highlighting the variability in analyst predictions [2][7] - A low standard deviation indicates strong agreement among analysts regarding the stock's price movement direction [7] Earnings Estimates and Analyst Sentiment - Analysts have shown increasing optimism about BIP's earnings prospects, with a positive trend in earnings estimate revisions [9] - Over the last 30 days, the Zacks Consensus Estimate for the current year has increased by 2%, indicating a positive outlook [10] - BIP holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [11] Caution on Price Targets - While price targets are a common tool for investors, they can often mislead, and reliance solely on them may not yield favorable returns [5][8] - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [6]

Core Viewpoint - Foundry JV Holdco LLC is initiating a consent solicitation to amend the terms of its outstanding Senior Secured Notes to improve rating agency assessments and address specific financial definitions and conditions [1][2]. Group 1: Consent Solicitation Details - The consent solicitation is aimed at adopting proposed amendments to the indentures governing various series of Senior Secured Notes, including those due in 2030, 2032, 2034, 2035, and 2038 [1][2]. - The proposed amendments include changes to the definition of Total Net Debt, allowing suspended distributions to be included for determinations after January 25, 2038, following an Intel Call Notice [2]. - The amendments also seek to modify the Events of Default related to Intel Member, linking it to Intel Corporation's performance under Material Project Documents [2]. Group 2: Financial Considerations - The consent solicitation will expire at 5:00 p.m. New York City time on January 17, 2025, with a consent fee of $1.00 per $1,000 in principal amount of Notes for consenting holders [3][5]. - Payment of the consent fee is contingent upon receiving consents from holders of more than 50% of the aggregate principal amount of each series of Notes [4][5]. Group 3: Company Background - Foundry JV Holdco LLC is indirectly owned by Brookfield Infrastructure Partners L.P. and was formed to invest in Intel's manufacturing expansion at its Ocotillo campus in Chandler, Arizona [8]. - The project involves two semiconductor wafer fabrication buildings, Fab 52 and Fab 62, along with related structures and equipment [8].

Core Viewpoint - Brookfield Infrastructure Partners (BIP) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Ratings - The Zacks rating system is based on changes in earnings estimates, which are tracked through the Zacks Consensus Estimate, reflecting EPS estimates from sell-side analysts for the current and following years [2]. - The Zacks rating upgrade for Brookfield Infrastructure signifies an improved earnings outlook, likely leading to a favorable impact on its stock price [4][6]. Impact of Earnings Estimates on Stock Prices - Changes in a company's future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements, influenced by institutional investors who adjust their valuations based on these estimates [5]. - For Brookfield Infrastructure, the rise in earnings estimates and the rating upgrade suggest an enhancement in the company's underlying business, which should drive the stock price higher [6]. Importance of Tracking Earnings Revisions - Empirical research supports the strong correlation between earnings estimate revisions and stock movements, making it beneficial for investors to track these revisions for investment decisions [7]. - The Zacks Rank stock-rating system effectively utilizes earnings estimate revisions to classify stocks into five groups, with a proven track record of performance [8]. Specific Earnings Estimates for Brookfield Infrastructure - For the fiscal year ending December 2024, Brookfield Infrastructure is expected to earn $3.07 per share, reflecting a 4.1% increase from the previous year, with a 0.2% rise in the Zacks Consensus Estimate over the past three months [9]. Zacks Rating System Overview - The Zacks rating system maintains a balanced distribution of 'buy' and 'sell' ratings across its universe of over 4000 stocks, with only the top 20% receiving a 'Strong Buy' or 'Buy' rating, indicating superior earnings estimate revisions [10][11].