Macquarie Infrastructure (MIC), after increasing its 2017 growth capital-expenditures budget last week, is looking at additional growth projects for the remainder of the year while also continuing to evaluate potential fifth verticals, RBC Capital Markets said in a note to clients following meetings with the company’s management. The company, which operates a group of businesses that provide services including bulk liquid terminalling and handling services, aircraft fueling and utility-gas services, boosted its 2017 growth capital-expenditures budget last week to $500 million from $400 million. At the time, its CEO, James Hooke, said “the higher target reflects both the pace at which we have deployed capital into previously approved projects and the attractiveness of investment opportunities that have been identified by our team.”
In its note to clients Monday, RBC noted Macquarie Infrastructure had spent $165 million through May while the firm expects some $250 million to $275 million to be available for additional growth projects for the remainder of the year. The firm highlighted that Macquarie Infrastructure “discussed a potential $100+ million organic growth project in the lower Mississippi within its [International-Matex Tank Terminals] segment for a chemical customer,” and said it also believes another outsized Atlantic Aviation bolt-on deal is likely this year.