Financial Data and Key Metrics Changes - For Q1 2025, adjusted net revenues were $700 million, a 19% increase year-over-year [18] - Adjusted operating income for Q1 2025 was $116 million, up 28% compared to the same period last year [18] - Adjusted earnings per share (EPS) rose to $3.49, reflecting a 64% increase year-over-year [19] - Adjusted operating margin improved to 16.6%, up from 15.4% in the prior year [19] Business Line Data and Key Metrics Changes - Adjusted advisory fees reached $557 million, a 29% increase year-over-year, indicating strong performance in both M&A and non-M&A advisory [19] - Underwriting revenues were $54 million, down 2% from the previous year, with lower follow-on activity but improvements in the IPO market [20] - Commissions and related revenue increased by 14% year-over-year to $55 million, driven by higher trading volumes [20] - Adjusted asset management and administration fees rose 8% year-over-year to $22 million, supported by an increase in assets under management (AUM) [21] Market Data and Key Metrics Changes - Global transaction volumes increased in Q1 2025 compared to the prior year, although the number of transactions declined due to macroeconomic headwinds [12] - The private capital advisory group achieved record performance in Q1, particularly in GP-led continuation vehicles [13] - The equity capital markets business showed strong momentum, with expectations for a recovery as market volatility stabilizes [14] Company Strategy and Development Direction - The company is focused on long-term value creation for clients and shareholders, maintaining a capital return philosophy [15] - Evercore aims to invest in talent and expand its capabilities across various sectors, including technology, healthcare, and private capital advisory [10][67] - The firm is positioned to navigate through challenging market conditions, emphasizing a diversified platform across geographies and sectors [8] Management's Comments on Operating Environment and Future Outlook - Management noted increased volatility in global financial markets due to geopolitical tensions and inflation concerns, impacting CEO and Board confidence levels [7][9] - There is a robust backlog of transactions, with active client dialogues indicating pent-up demand for M&A activity [9][36] - The company expects transaction levels to increase once there is greater clarity in the macroeconomic environment [9] Other Important Information - The adjusted compensation ratio for Q1 was 65.7%, slightly down from the previous year, with non-compensation expenses rising 14% year-over-year [22][23] - The company returned a record $454 million to shareholders through share repurchases and dividends [26] - The effective tax rate for the quarter was negative 39.7%, influenced by stock price appreciation at the time of vesting [25] Q&A Session Summary Question: Insights on Backlogs and Client Types - Management expressed satisfaction with the robust and growing backlog, indicating strong engagement across various sectors, particularly in software and restructuring [36][37] Question: Outlook for Private Capital Advisory - The private capital advisory business remains strong, with continuity funds gaining traction as a method for sponsors to return capital to LPs [41][42] Question: Comparison of M&A Activity in Europe vs. the U.S. - Management noted that while there is healthy activity in Europe, it is not necessarily stronger than in the U.S., with ongoing uncertainty affecting both regions [49][50] Question: Compensation Ratio and Revenue Growth - Management indicated that revenue growth is crucial for improving the compensation ratio, with a strong backlog supporting future performance [56][57] Question: Restructuring Environment and Liability Management - The restructuring business is performing well, with no limitations on serving clients in liability management, despite concerns about high interest rates [60][61] Question: Hiring Plans in a Slower M&A Environment - The company plans to continue hiring top talent across various sectors, maintaining a consistent approach regardless of market conditions [66][67] Question: Equity Capital Markets Outlook - Management is optimistic about the equity capital markets, with a good backlog of transactions ready to proceed once market volatility decreases [70][71]

Financial Data and Key Metrics Changes - For Q1 2025, adjusted net revenues were $700 million, a 19% increase year-over-year [18] - Adjusted operating income for Q1 2025 was $116 million, up 28% from the previous year [18] - Adjusted earnings per share (EPS) increased 64% year-over-year to $3.49 [19] - Adjusted operating margin improved to 16.6%, compared to 15.4% in the prior year [19] Business Line Data and Key Metrics Changes - Adjusted advisory fees reached $557 million, a 29% increase year-over-year, reflecting strong performance in both M&A and non-M&A advisory [19] - Underwriting revenues were $54 million, down 2% from the previous year, influenced by lower follow-on activity [20] - Commissions and related revenue increased 14% year-over-year to $55 million, driven by higher trading volumes [20] - Adjusted asset management and administration fees rose 8% year-over-year to $22 million [21] Market Data and Key Metrics Changes - Global transaction volumes increased in Q1 compared to the prior year, although the number of transactions declined due to macroeconomic headwinds [12] - The private capital advisory group had a record first quarter, particularly in GP-led continuation vehicles [13] - The equity capital markets business showed strong momentum, with the best first quarter since 2020, driven by market volatility [14] Company Strategy and Development Direction - The company remains focused on long-term value creation for clients and shareholders, with a commitment to invest in talent through the cycle [9][15] - The firm is strategically positioned to navigate increased market volatility and uncertainty, emphasizing a diversified platform across various sectors and geographies [6][7] - The company plans to continue hiring in key areas such as technology, healthcare, and Europe, despite a potentially slower M&A backdrop [66] Management's Comments on Operating Environment and Future Outlook - Management noted that heightened geopolitical and trade tensions are causing increased volatility in financial markets, impacting CEO and Board confidence levels [6][8] - There is a robust backlog and active client dialogues, indicating pent-up demand for transactions once market conditions stabilize [8][29] - The company expects Q2 and Q3 results to be impacted by market volatility, but remains optimistic about medium to long-term prospects [17][28] Other Important Information - The company returned a record $454 million of capital to shareholders through share repurchases and dividends [25] - The adjusted tax rate for the quarter was negative 39.7%, influenced by a significant net tax benefit [24] - The firm maintains a strong cash position of nearly $1.4 billion, consistent with the previous year [25][28] Q&A Session Summary Question: Insights on Backlogs and Client Types - Management expressed satisfaction with the robust and growing backlog, indicating that while there are pauses, cancellations are minimal [34][38] Question: Outlook for Private Capital Advisory - The private capital advisory business is performing strongly, particularly in continuity funds, which are seen as effective for monetizing assets [40][41] Question: Comparison of M&A Activity in Europe vs. the U.S. - Management noted that while there is healthy activity in Europe, it is not necessarily driven by stronger forces than in the U.S., and recovery timelines remain uncertain [46][49] Question: Compensation Ratio and Revenue Growth - Management indicated that revenue growth is crucial for improving the compensation ratio, with a strong backlog supporting future performance [52][56] Question: Restructuring Environment and Liability Management - The restructuring business is healthy, with no limitations on serving clients in liability management, despite concerns about high rates and potential bankruptcies [58][60] Question: Hiring Plans in a Slower M&A Environment - The company plans to continue hiring strong talent in key areas, maintaining a consistent approach regardless of market conditions [62][66] Question: Equity Capital Markets Outlook - Management is optimistic about the equity capital markets, with a good backlog of transactions ready to go once market conditions stabilize [68][70]

Financial Performance - Brookfield Infrastructure reported net income of $125 million for Q1 2025, down from $170 million in Q1 2024, with a per unit decrease from $0.10 to $0.04[2][3] - Net income for the three months ended March 31, 2025, was $526 million, a decrease of 35.4% compared to $814 million in the prior year[31] - BIPC reported net income of $762 million for the three-month period ended March 31, 2025, compared to $197 million in the prior year, indicating a significant increase of over 286%[46] - Net income for Q1 2025 was $762 million, significantly higher than $197 million in Q1 2024, marking an increase of 286%[53] Funds from Operations (FFO) - Funds from operations (FFO) increased by 5% year-over-year to $646 million, driven by inflation indexation and higher revenues, with a per unit increase from $0.78 to $0.82[3][4] - The utilities segment generated FFO of $192 million, slightly up from $190 million, with a normalized increase of 13% when excluding currency impacts[4][5] - The data segment saw a significant increase in FFO to $102 million, a 50% rise compared to the previous year, attributed to strong organic growth and acquisitions[7] - Funds from Operations (FFO) for the three months ended March 31, 2025, increased to $646 million, compared to $615 million in 2024, reflecting a growth of 5.0%[36] Revenue Growth - Total revenues for the three months ended March 31, 2025, increased to $5,392 million, up from $5,187 million in the same period of 2024, representing a growth of 4.0%[31] - Revenues for Q1 2025 increased to $929 million, up from $902 million in Q1 2024, representing a growth of 3%[53] Cash Flow and Operating Activities - Cash from operating activities for the three months ended March 31, 2025, was $868 million, slightly up from $841 million in the same period of 2024[33] - Cash from operating activities decreased to $243 million in Q1 2025 from $278 million in Q1 2024, a decline of 13%[55] Asset and Equity Changes - Total assets as of March 31, 2025, were $103,655 million, a slight decrease from $104,590 million as of December 31, 2024[26] - Total assets as of March 31, 2025, were $22.57 billion, down from $23.59 billion as of December 31, 2024, a decrease of 4%[50] - Total equity increased to $2.82 billion as of March 31, 2025, compared to $2.22 billion at the end of 2024, an increase of 27%[50] Corporate Borrowings and Expenses - Corporate borrowings increased to $4,727 million as of March 31, 2025, compared to $4,542 million at the end of 2024[26] - Direct operating costs rose to $355 million in Q1 2025 from $339 million in Q1 2024, an increase of 5%[53] - Interest expense increased to $273 million in Q1 2025, compared to $239 million in Q1 2024, reflecting a rise of 14%[53] Dividends and Distributions - The Board declared a quarterly distribution of $0.43 per unit, representing a 6% increase compared to the prior year, payable on June 30, 2025[16] - The company declared a quarterly dividend of $0.43 per class A exchangeable subordinate voting share, payable on June 30, 2025[43] Sales and Acquisitions - Brookfield Infrastructure secured $1.4 billion in sale proceeds from five advanced sale processes, including $1.2 billion net to BIP and $200 million from financial asset sales[8][9] - The company announced an agreement to exit its Australian container terminal operation for proceeds of $1.2 billion, with an expected closing in the second half of the year[9] - A minority stake sale in a portfolio of fully contracted containers generated $440 million, with over $120 million net to BIP, establishing a framework for future sales[10] - Brookfield Infrastructure is progressing with a $9 billion acquisition of Colonial, the largest refined products pipeline system in the U.S., with a competitive market position and high utilization[12][15] - The company expects to generate approximately $400 million in net proceeds from the sale of a non-core data center site, with closing anticipated in the second half of 2025[13] Shareholder Gains and Remeasurement - The company reported a basic and diluted gain per unit attributable to limited partners of $0.04 for the three months ended March 31, 2025, down from $0.10 in the prior year[38] - The company reported a significant remeasurement of shares classified as financial liability, resulting in a gain of $307 million in Q1 2025, compared to a gain of $37 million in Q1 2024[53]

Group 1: Dividend Stocks Overview - Dividend stocks provide a steady stream of income and can be beneficial for all types of investors, not just income-focused ones [2] - Stocks that consistently pay and grow dividends often yield significant returns over time, making them attractive investment options [2] Group 2: Brookfield Infrastructure - Brookfield Infrastructure offers a compelling investment opportunity with a corporate share yield of 4.7% and partnership units yielding 5.7% [4] - The company operates regulated assets such as utilities and pipelines, with 85% of its free cash flows being regulated or contracted, ensuring consistent cash flow even during economic downturns [5] - Brookfield Infrastructure has achieved a compound annual growth rate of 15% in funds from operations (FFO) per unit and 9% in dividends per unit since 2009 [7] - The company targets over 10% FFO per unit growth and 5% to 9% annual dividend growth, indicating potential annualized returns of at least 9% [8] Group 3: Enterprise Products Partners - Enterprise Products Partners has a strong track record of increasing dividends for over 25 consecutive years, contributing to significant stock returns, with over 250% returns in the past five years with reinvested dividends [9] - The company operates a vast pipeline network and has invested heavily in expansion, with $6 billion of $7.6 billion in major projects expected to come online this year [11] - As growth capital expenditures are projected to decrease from $4 billion-$4.5 billion in 2025 to $2 billion-$2.5 billion in 2026, Enterprise Products is expected to have more cash available for dividends and share buybacks [12]

Financial Performance - For the year ended December 31, 2024, Brookfield Infrastructure reported net income attributable to the partnership of $391 million, a decrease from $432 million in 2023[2]. - Net income for 2024 was $1,683 million, up from $1,448 million in 2023, representing a 16.2% increase[30]. - Basic earnings per limited partnership unit decreased to $0.04 in 2024 from $0.14 in 2023[35]. - Net income for 2024 was $72 million, a decrease of 88.1% from $606 million in 2023[50]. Funds from Operations (FFO) - Funds from operations (FFO) for 2024 was $2.5 billion, representing an increase of approximately 8% compared to 2023, with organic growth driven by 7% inflation and stronger volumes[3]. - Funds from operations (FFO) for 2024 amounted to $2,468 million, compared to $2,288 million in 2023, reflecting a 7.9% increase[32]. - The utilities segment generated FFO of $760 million, down from $879 million in the prior year, primarily due to the sale of an Australian utility business[4]. - The transport segment's FFO was $1,224 million, a nearly 40% increase over the prior year, attributed to acquisitions and tariff increases of 7% across rail networks[5]. - The midstream segment generated FFO of $625 million, reflecting an 11% year-over-year growth, despite a decrease from $684 million due to capital recycling activities[6]. - The data segment's FFO was $333 million, representing a 21% increase over the prior year, driven by strong organic growth and new investments[7]. Revenue and Assets - Total revenues for 2024 reached $21,039 million, a 17.8% increase from $17,931 million in 2023[26]. - Total revenues for 2024 reached $3,666 million, a significant increase of 46.2% compared to $2,503 million in 2023[50]. - Total assets grew to $104,590 million in 2024, up from $100,784 million in 2023, marking a 3.6% increase[24]. - Total assets decreased slightly to $23,587 million in 2024 from $23,909 million in 2023[46]. Cash Flow and Dividends - Cash from operating activities increased to $4,653 million in 2024, compared to $4,078 million in 2023[30]. - Cash from operating activities increased to $1,743 million, compared to $1,059 million in the previous year, marking a 64.5% rise[53]. - The company declared a quarterly distribution of $0.43 per unit, a 6% increase compared to the prior year[11]. - The company declared a quarterly dividend of $0.43 per share, a 6% increase compared to the previous year[39]. Liabilities and Borrowings - Total liabilities increased to $21,365 million in 2024, up from $19,841 million in 2023, indicating a rise of 7.6%[48]. - Corporate borrowings decreased to $4,542 million in 2024 from $4,911 million in 2023, a reduction of 7.5%[24]. Capital Recycling and Asset Sales - Brookfield Infrastructure achieved $2 billion in capital recycling proceeds in 2024 and secured approximately $850 million in proceeds from asset sales in early 2025[8]. - The company expects to deliver $5-6 billion in asset sale proceeds over the next two years, supported by increased investor interest in high-quality infrastructure assets[10]. Other Financial Metrics - The average number of limited partnership units outstanding for the twelve-month period ended December 31, 2024, was 461.6 million, compared to 459.4 million in 2023[23]. - The average number of limited partnership units outstanding increased to 461.6 million in 2024 from 459.4 million in 2023[44]. - Underlying earnings for BIPC were 20% above the prior year, driven by the acquisition of a global intermodal logistics operation[42]. - Direct operating costs rose to $1,378 million, up from $778 million, reflecting a 77.1% increase[50]. - Cash and cash equivalents at the end of the period were $674 million, up from $539 million, reflecting a 24.9% increase[52]. - The company reported a significant increase in depreciation and amortization expense to $775 million from $365 million, a rise of 112.7%[52]. - Non-controlling interest decreased to $3,475 million in 2024 from $4,467 million in 2023, a decline of 22.3%[48]. - The company experienced a cash used by investing activities of $1,110 million, a decrease from $3,174 million in 2023, indicating a reduction of 65.0%[53].

Market Risks - The company faces risks related to demand for commodities, including natural gas and minerals, which could impact financial performance[52]. - The company is exposed to risks related to economic regulation and adverse regulatory decisions in the countries it operates[52]. - The company may experience challenges in maintaining or improving revenue due to competition and the ability to renew contracts[68]. - Economic conditions and political uncertainties can significantly impact demand for services and overall profitability, with potential adverse effects from inflation and rising interest rates[230]. - The ongoing geopolitical conflicts, such as the war between Russia and Ukraine, have contributed to volatility in fuel prices and supply chain challenges[233]. - Changes in U.S. laws, including potential tariffs on Canadian exports, could materially affect the company's financial condition and operations[236]. - The company is exposed to risks associated with pandemics and public health emergencies, which could adversely affect operations[239]. - The ongoing prevalence of contagious diseases could materially and adversely affect the company's results of operations and financial condition due to disruptions to commerce and reduced economic activity[240]. Operational Risks - The company has a significant amount of committed backlog for capital projects, but there is no assurance these will be completed on time or within budget[72]. - Future capital expenditures are required for utilities, transport, data, and midstream operations, which are capital intensive[73]. - There are risks associated with the construction and expansion of projects, including potential delays and cost overruns[70]. - Supply chain disruptions could inhibit the ability to maintain existing facilities and complete development projects on time and within budget[97]. - The company’s operations may be affected by supply chain disruptions and cyber-security incidents[52]. - Cybersecurity threats pose risks to the company's information systems, potentially leading to data breaches and operational failures[103]. - The company faces significant risks related to cyber security, including potential material consequences from breaches or failures of computerized business systems[107]. - The company may face challenges in obtaining necessary permits and licenses, which could materially affect business operations and financial condition[84]. Environmental and Regulatory Risks - Brookfield Infrastructure's operations are exposed to risks related to environmental damage, including potential fines and penalties from regulatory authorities[75]. - The company faces increasing environmental legislation and climate change impacts, which may reduce consumer demand for certain energy sources[77]. - Future carbon emissions regulations could lead to increased operational costs that may not be passed on to customers, adversely affecting financial performance[78]. - Compliance with environmental laws may result in increased costs and liabilities, impacting the financial performance of infrastructure operations[79]. - Climate change may lead to more severe weather conditions, affecting business operations and customer demand for services[80]. - Regulatory commitments expose Brookfield Infrastructure to higher levels of control, increasing the risk of adverse financial outcomes due to changes in laws or regulations[81]. Financial and Investment Risks - The partnership's ability to pay distributions is subject to the discretion of its General Partner, with no guarantee of maintaining or increasing distribution levels[158]. - The partnership relies on distributions from the Holding LP and its operating entities to meet financial obligations, with no independent revenue generation[156]. - The partnership's effective economic interest is approximately 26.6% on a fully-exchanged basis, which may lead to conflicts of interest due to Brookfield's controlling influence[166]. - The partnership may acquire distressed companies, which involves substantial financial and business risks, including potential total losses[154]. - Credit facilities contain covenants that restrict financial activities, and failure to meet these covenants can lead to immediate repayment requirements[151]. - The use of leverage increases sensitivity to revenue declines and adverse economic conditions, heightening the risk of loss[150]. - The partnership's credit facilities may or may not be rated, and a credit downgrade could adversely affect the cost of debt[152]. - The company may face material adverse effects on its business and unit prices due to ineffective internal controls over financial reporting, which could lead to significant deficiencies and errors in financial statements[167]. Taxation Risks - Changes in tax laws may adversely affect the company's operations and the net amount of distributions payable to unitholders[179]. - The partnership's cash available for distribution is indirectly reduced by local taxes, impacting the post-tax return to unitholders[180]. - Unitholders may face tax obligations in jurisdictions where they do not reside, potentially leading to additional compliance burdens[183]. - The company may be exposed to transfer pricing risks, which could result in increased tax liabilities and reduced returns for investors[184]. - The partnership may face tax adjustments under transfer pricing rules, potentially affecting income allocations to unitholders[186]. - The partnership's gross income must consist of 90% or more qualifying income to maintain partnership status for U.S. federal income tax purposes[190]. - U.S. backup withholding tax may apply if unitholders fail to comply with tax reporting rules, impacting cash available for distribution[191]. - Non-U.S. persons may face adverse U.S. tax consequences if the partnership is deemed engaged in a U.S. trade or business[195]. Governance and Management Risks - The General Partner has sole authority to determine distributions and their timing, which may incentivize actions that benefit Brookfield over unitholders[134]. - The base management fee is set at 0.3125% quarterly (1.25% annually) of the market value of the group, potentially creating conflicts of interest[133]. - The Limited Partnership Agreement modifies fiduciary duties, allowing conflicts of interest to be resolved in ways that may not favor unitholders[130]. - The partnership's arrangements with Brookfield may contain less favorable terms than those negotiated with unrelated parties[145]. - The General Partner's discretion in resolving conflicts may prioritize Brookfield's interests over those of the partnership and its unitholders[132]. - The departure of key professionals from Brookfield could adversely impact the company's ability to achieve its objectives[120]. - Changes in Brookfield's ownership or control could result in significant shifts in the company's management and growth strategy[121]. Currency and Market Risks - A significant portion of the company's operations are in countries where the U.S. dollar is not the functional currency, exposing it to foreign currency risk[244]. - Fluctuations in currency exchange rates could reduce cash flows generated by operating entities, potentially decreasing demand for services[244]. - Non-U.S. unitholders are subject to foreign currency risk, as distributions are denominated in U.S. dollars and may be adversely affected by exchange rate fluctuations[173]. - The market price of the company's units and preferred units may experience high volatility due to various factors, including economic conditions and changes in market interest rates[170]. - The company may need additional funds in the future, potentially issuing more units or preferred units, which could dilute existing holders[172].

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 ...

Exhibit 99.1 Brookfield Infrastructure Partners L.P. Interim Report Q3 2024 UNAUDITED INTERIM CONDENSED AND CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2024 AND DECEMBER 31, 2023 AND FOR THE THREE AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2024 AND 2023 INDEX Page Management's Discussion & Analysis 42 | --- | --- | |---------------------------------------------------------------------------------------------------------------------------------------------|-----------------| | | | | Unaudited Inter ...

Brookfield Infrastructure Partners L.P. Limited Partnership Units (NYSE:BIP) Q3 2024 Earnings Call Transcript November 6, 2024 9:00 AM ET Company Participants Sam Pollock - Chief Executive Officer of Infrastructure David Krant - Chief Financial Officer Dave Joynt - Managing Partner, Infrastructure Conference Call Participants Cherilyn Radbourne - TD Cowen Maurice Choy - RBC Capital Markets Devin Dodge - BMO Capital Markets Robert Catellier - CIBC Capital Markets Robert Hope - Scotiabank Operator Good day. A ...

Financial Data and Key Metrics - Funds from operations (FFO) for Q2 2024 were $608 million, a 10% increase YoY, driven by organic growth and recent acquisitions [3] - Utilities segment FFO declined to $180 million from $224 million YoY due to capital recycling and higher interest costs, but base business grew organically due to inflation indexation and $450 million of capital commissioned into the rate base [4][5] - Transport segment FFO increased 60% YoY to $319 million, driven by acquisitions and a 15% tariff increase in the Brazilian rail and logistics operation [6] - Midstream segment FFO was $143 million, ahead of prior year levels excluding capital recycling, with strong demand in North American gas storage [6] - Data segment FFO grew 8% YoY to $78 million, supported by acquisitions and strong leasing activity in data centers [7] Business Line Performance - Utilities: Organic growth supported by inflation indexation and capital investments, partially offset by capital recycling and higher interest costs [4][5] - Transport: Strong performance from global intermodal logistics and Brazilian rail operations, with 9% organic growth driven by inflationary tariff increases [6] - Midstream: Benefited from strong demand and customer activity, particularly in North American gas storage, with accretive commercial agreements and capital projects [6] - Data: Growth driven by acquisitions and strong leasing activity, with investments in hyperscale data centers and strategic land acquisitions [7][13] Market Performance - North American power demand growth created opportunities for midstream assets, with several accretive commercial agreements secured [6] - Global data center platform saw strong momentum in leasing activity, driven by AI investment and customer demand for processing and storage capacity [7] Strategic Initiatives and Industry Competition - Focus on tuck-in and organic growth opportunities, with $4 billion in follow-on acquisitions completed in 2024, including data center sites and a stake in Brazilian rail and port logistics [12][13] - Large project backlog increased 15% YoY to $7.7 billion, with significant investments in midstream and data center growth [13] - Capital recycling remains active, with $1.4 billion generated YTD and $2.5 billion expected from advanced asset sales [15] - Strong alignment with global megatrends (digitalization, decarbonization, deglobalization), particularly in digitalization and decarbonization [16][17] Management Commentary on Operating Environment and Outlook - Management highlighted strong financial and operating results, with a focus on capitalizing on favorable debt markets and maintaining a strong balance sheet [3][8][11] - Expectation of increased M&A activity in H2 2024 due to improved interest rate environment and industry tailwinds like AI [14][16] - Significant opportunities in AI infrastructure, including power, transmission, and natural gas infrastructure to support data centers [20][21] Other Key Information - Completed $5 billion of non-recourse financing during the quarter, focusing on right-sizing capital structures, maturity extensions, and opportunistic repricing [8][9][10][11] - Corporate liquidity stands at $1.9 billion, with no corporate maturities until 2027 [11] Q&A Summary Question: Opportunities tied to AI in utilities and natural gas sectors - AI infrastructure includes power, transmission, and natural gas to support data centers, with opportunities in gas storage and movement [20][21] - Natural gas and nuclear may be needed to meet power demands for large data centers, creating investment opportunities [21] Question: Capital deployment and guardrails for Intel-like deals - Unlimited capital appetite for similar deals, with strong interest from global LP base [22] - Counterparty strength is a key limiting factor, with potential involvement from governments [23] - Similar structures applicable outside tech, such as hydrogen and decarbonization projects [24] Question: Feedback on Intel deal and BIP's participation in future deals - Private investors show more patience for long-lead development deals, while BIP offers a diversified portfolio balancing cash flow and growth [27][28] - Intel deal expected to be high-returning, with benefits expected in a few years [28] Question: Use of $2.5 billion asset sale proceeds - Proceeds likely redeployed into higher-earning investments, with potential to exceed $2.5 billion [29][30] - Focus on acquiring high-quality assets with returns around 15%, then selling at lower returns [30] Question: Geographies and subclasses with strong valuations - Balanced pipeline across Asia-Pac, North America, and Europe, with improving sentiment in Brazil [31][32] - U.S. and Europe remain deep markets for divestitures [32] Question: M&A activity in midstream sector - Midstream sector sees strong buyer interest, with opportunities for new investments and capital recycling [34][35] - Natural gas storage business is a mature asset potentially up for sale or partnership [36] Question: Data center development pipeline and self-funding strategy - Active development in multiple regions, with construction underway in South America, U.S., Europe, and Asia [38] - Capital recycling initiatives underway, with potential for programmatic sales to investors [39]