Tidewater Midstream and Infrastructure Ltd T.TWM

SDE halted

[fauxtomato]

Spartan Delta has been halted since this morning, could be some interesting read throughs for the BRC there if it's a big transaction.

IPL I know a bit about: I bought a couple thousand shares in 2009 in an RRSP (my first job in Canada) set it to reinvest the dividends and forgot about it. I don't love their core businesses, it's mostly oil sands transport and NGL extraction at this point, right? And Heartland was a disaster in the making, I've had some tangential welding related relations there through my day job and it's not confidence inspiring. They'll probably do ok with it but I've got no love for the company. KEY is the company in AB that I would trust with my money, and PPL could make sense as a suitor for TWM eventually (they've acquired several companies I've gone big on now, Fort Chicago and Provident) the Brookfield deal, keeping in mind Brookfield recently poached a founder of TWM, should lend some confidence to the Canadian energy infrastructure market, but for reasons firstworld will be happy to point out isn't a home run.

I do think, in my heart of hearts, that the AECO market is turning in a major way for the long term and that can only be good for gas leveraged producers.

[valuguy]

TWM's debt is a poison pill.Highly unlikely to be bought out.

[2020oilgamble]

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[fauxtomato]

Since a majority of the acquisition would be the assumption of high cost debt, the 'synergistic' (or whatever buzz word is in vogue at the time) cost savings on the interest alone would significantly  improve the DCF yield for an acquiring entity. I don't think TWM will be acquired in the near future: it's too small to make a difference to the big guys who are acquiring stuff

[AntoninScalia]

Don't forget about PE funds. Hard to pass up double digit DCF yields.

[fauxtomato]

The defensive nature of TWM's cashflow is offset by the scattered nature of their assets and low counterparty quality. This resurge in product pricing likely isn't benefitting them at all yet. Maybe some more Westbrick production goes to BRC? NGL extraction is likely expensive at these gas prices, and Pipestone is fully contracted. The PGR acquisition is particularly unglamorous, which I

[valuguy]

WTI will not see past $63 in 2021.Once WTI tops,then it will correct .......into the $40s?Refiners hate high feedstock prices.

[fauxtomato]

Certainly possible we see a retracement in WTI, I sold a chunk of my smaller producers on Tuesday. Maybe too early but I'm deploying too much margin to not take profits. There is the potential for a lot of production to return to the market at these prices and demand isn't there to justify it yet, not at these storage levels Based on the Petro-Canada rack prices the Prince George market

[AntoninScalia]

Disagree. 1. IPL is significantly more levered than TWM 2. A more credit worthy company can purchase TWM and save millions in interest costs and create enormous value.