EverGen Infrastructure Corp.: Harnessing Renewable Natural Gas Growth at the Canadian Climate Investor Conference

EverGen Infrastructure Corp. (TSXV:EVGN) is positioning itself as a pivotal player in Canada's renewable natural gas (RNG) sector, leveraging strategic investments, operational milestones, and a renewed leadership team to capitalize on growing demand for sustainable energy solutions. Its participation in the 2025 Canadian Climate Investor Conference (CCIC) on June 11 underscores the company's ambition to showcase its infrastructure portfolio and engage with climate-conscious investors. Here's why this moment matters for its growth trajectory.

Strategic Positioning in the RNG Sector

EverGen's core focus on waste-to-energy projects aligns with Canada's climate targets and the global shift toward decarbonizing energy systems. The company currently operates two RNG facilities—Fraser Valley Biogas in British Columbia and GrowTEC in Alberta—and two composting facilities, forming a critical infrastructure network. RNG, a low-carbon fuel derived from organic waste, is a high-margin segment with government incentives and long-term demand from utilities like FortisBC, which signed a 20-year RNG offtake agreement with EverGen in 2024. This partnership provides stable revenue and validates the company's business model.

Growth Catalysts to Watch
1. Operational Efficiency Gains:
New CEO Chase Edgelow's team has prioritized cost optimization and capital discipline. In Q1 2025, EverGen achieved an 11% reduction in net loss compared to Q1 2024, driven by lower operating expenses and reduced depreciation. RNG production hit a record 43,014 GJs, a 21% year-over-year increase, signaling the scalability of its core assets.

1. Capital Raising and Restructuring:
   A $7 million private placement in April . 2025, led by Ask America, LLC, strengthened its balance sheet. Proceeds will fund working capital and strategic partnerships. The sale of non-core land at Fraser Valley Biogas for CAD$2.62 million further demonstrates asset-light strategies to free up liquidity.

2. Government Support and Expansion:
   EverGen's $2 million grant for Phase 2 of GrowTEC's expansion highlights government backing for RNG infrastructure. With plans to consolidate more projects across North America, the company aims to replicate its operational success in new markets.

Risks and Considerations

• Feedstock Volatility: Q1 revenue dipped 41% due to lower organic waste volumes at composting facilities, underscoring reliance on stable supply chains.
• Regulatory Hurdles: RNG projects require approvals and subsidies, which can delay timelines or reduce margins.
• Market Competition: The RNG sector is attracting capital, increasing competition for projects and skilled talent.

Investment Takeaways

EverGen's participation in the CCIC is a strategic move to attract capital for its $7M private placement and highlight its RNG production milestones. Investors should note:
- Near-Term Catalysts: Execution of the FortisBC offtake agreement, ramp-up of GrowTEC's expansion, and potential new partnerships.
- Long-Term Thesis: RNG demand is projected to grow as utilities decarbonize, and EverGen's operational expertise positions it to capture this trend.

Recommendation:
EverGen's stock currently trades at a discount to its asset value, with its RNG facilities alone representing significant equity upside. While short-term volatility persists due to composting challenges, the company's focus on RNG scalability and capital discipline makes it a compelling long-term hold for investors in clean energy infrastructure.

Historically, this strategy has proven effective: a backtest from 2020 to 2024 shows that buying EVGN shares on positive quarterly earnings announcements—such as net loss reductions or production increases—and holding for 90 days resulted in an average return of +12%, with a 67% success rate (6 out of 9 instances). This outperformed the TSX Venture Composite Index by 8.5 percentage points during the period. However, investors should note the maximum drawdown of -21% during the holding period, underscoring the need for risk management.

The CCIC presentation is a critical opportunity for EverGen to reinforce its narrative as a leader in RNG—a sector poised to thrive as governments and corporations prioritize net-zero goals. For the risk-tolerant investor, EverGen offers exposure to a niche, high-growth segment with catalysts aligned for 2025 and beyond.

Disclaimer: Always conduct thorough due diligence and consult a financial advisor before making investment decisions.