In August, FIP announced a transformative transaction involving the acquisition of Wheeling & Lake Erie Railway Company and a refinancing of its holding company debt. While the market initially reacted negatively, we believe this reaction overlooks the long-term value creation potential. Management guided to normalized EBITDA of $200 million for the new Transtar 'RailCo.' At a conservative 12x multiple for short-line rail assets, this implies value of more than $10+ per share to FIP shareholders. We believe FIP could be worth more than $15 per share as multiple catalysts unfold over the next year.

Despite the year-to-date share price performance, we are very optimistic as FIP should experience a positive inflection in fundamentals and cash flow over the next 12 months. As these catalysts play out, we believe there could be over 100% upside to FIP current share price of ~$5. FIP is approaching a fundamental inflection point. After years of groundwork, the company is poised to more than double earnings, with run-rate EBITDA expected to hit $300 million by year-end. There are several upcoming events such as new contracts and refinancing opportunities that could unlock meaningful value.

Despite the year-to-date share price performance, we are very optimistic as FIP should experience a positive inflection in fundamentals and cash flow over the next 12 months. As these catalysts play out, we believe there could be over 100% upside to FIP current share price of ~$5. FIP is approaching a fundamental inflection point. After years of groundwork, the company is poised to more than double earnings, with run-rate EBITDA expected to hit $300 million by year-end. There are several upcoming events such as new contracts and refinancing opportunities that could unlock meaningful value.