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GFL Places 2024 Focus on Sustainability Investments, RNG, EPR-related Projects

GFL Environmental Inc. (NYSE: GFL) (TSX: GFL) is continuing to shift its growth strategy in 2024 to sustainability-focused capital investments, according to a recent update.

November 29, 2023

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GFL

GFL Environmental Inc. (NYSE: GFL) (TSX: GFL) is continuing its sustainability-focused growth strategy in 2024, according to a recent update.

The Toronto-based environmental services provider aims to improve shareholder value with "disciplined capital allocation decisions that we expect will generate outsized returns," commented Patrick Dovigi, GFL CEO and founder.

He added that the company is focusing on meeting an investment-grade credit rating. In addition to sustainability investments, GFL is progressing on its robust merger and acquisition strategy.

"We believe that the sustainability-related investments we are making represent the best risk-adjusted returns that we have seen in decades," Dovigi said. "On M&A, our investments in 2024 will be focused on densifying our existing footprint. Given our current pipeline, we are confident that we can deploy capital into these accretive opportunities at attractive valuation multiples consistent with our track record."

To reach these targets, GFL is deploying between $250 million and $300 million to renewable natural gas (RNG) projects, material recovery facilities and infrastructure improvements related to ongoing extended producer responsibility (EPR) legislation.

Between $600 million and $650 million will be allocated to M&A activity in 2024, focusing on expanding GFL's current service areas.

A total of no more than $900 million will add to GFL's average course capital expenditures, which the company expects to reach $850 million to $900 million. GFL further touted its Arbor Hills RNG facility and stated that other projects will be operational beginning in Q4 2024 and into 2026. 

Source: GFL

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