BMO commentQ1 - Strong Results Reinforce 2022 Guidance Delivery; Outperform Maintained
Price Target $36 • The Q1/22 earnings report illustrates that results could exceed expectations even despite the
logistical constraints that management flagged on LPG export during the quarter.
• Utility continues to see momentum on returns and rate base expansion and the high commodity
price environment is supporting higher Midstream volumes (LPG exports +3%; frac volumes +16%).
• Valuation has expanded YTD, but utility and midstream peers have too (~15x vs. utility at ~20x and midstream at ~17x). Combined with the ~24% potential total return to our unchanged $36 target, we are maintaining our Outperform rating.