RE:Tidewater's Acquisition of Prince George RefineryNBF Comments
Reiterate Outperform rating with $1.75 target (was $1.85) With the AFFO accretion offset by a weakened cash flow quality profile, our target price moves to $1.75 (was $1.85), in line with our sum-of-theparts valuation based on ~5x for comparable refineries. With a 12-month total return opportunity of 59.8%, combined with margin upside from integrating feedstock from the company’s Pipestone complex and crudeby-rail infrastructure, we reiterate our Outperform rating.