At the Gabelli Annual Waste & Sustainability Symposium (April 4, 2024), then-CEO Rene Amirault was asked about it.
QUESTION: Given the typical multiple of a U.S. waste management company versus what you’re currently receiving, would it make sense to potentially split or spin off the energy infrastructure business from the waste management business to unlock that underlying value? Is that something you would consider in the future?
ANSWER: I don't think you know, I'll never say never. But, when you think about it a $50M facility that incorporates five to eight services all in one, you have a certain amount of fixed costs. So trying to segregate that portion out of it, I don't think makes economic sense. We do have some gathering pipelines where there isn't the processing there that might be a little bit of an easier fit to divest, but we've got $1B (they just closed WCN sale at this point in time) to play with, right? Last thing we're thinking about is divestitures. But if you ask me in 5 years, maybe, that's a different cup of tea.
Thank you for your thoughtful observations. As a shareholder myself, I would invite you to discuss these proposals directly with the management. I totally agree with you that it would be a pity to receive an offer when the stock is so lowly valued.
has management indicated the possibility of selling their pipeline business?
At the Gabelli Annual Waste & Sustainability Symposium (April 4, 2024), then-CEO Rene Amirault was asked about it.
QUESTION: Given the typical multiple of a U.S. waste management company versus what you’re currently receiving, would it make sense to potentially split or spin off the energy infrastructure business from the waste management business to unlock that underlying value? Is that something you would consider in the future?
ANSWER: I don't think you know, I'll never say never. But, when you think about it a $50M facility that incorporates five to eight services all in one, you have a certain amount of fixed costs. So trying to segregate that portion out of it, I don't think makes economic sense. We do have some gathering pipelines where there isn't the processing there that might be a little bit of an easier fit to divest, but we've got $1B (they just closed WCN sale at this point in time) to play with, right? Last thing we're thinking about is divestitures. But if you ask me in 5 years, maybe, that's a different cup of tea.
Thank you for your thoughtful observations. As a shareholder myself, I would invite you to discuss these proposals directly with the management. I totally agree with you that it would be a pity to receive an offer when the stock is so lowly valued.
Great update and great article, thanks for sharing!
Love your work mate!
Thank you for the kind words.