RE:RE:RE:RE:RE:RE:RE:RE:RE:Pipeline SaleHaha, thanks! I think my source on that was a conversation we'd had.
Similar to Pipestone, they've telegraphed this in various ways but nice to get some framework around timing, cost, and returns. I don't know if I'm emotionally ready for another few years of mounting debt and slow to ramp returns, though. Q1 2021 may be the first time the Pipestone plant really hits full operational and economic stride. That was a similarly priced and took about as long, but the impact on DCF has been lost in all the other gyrations [namely: PGR and the associated debt].
https://www.tidewatermidstream.com/documents/222/TWM_Investor_Presentation_-_March_2021_DRAFT_10-Mar-2021_v8.pdf
Just a few thoughts on a quick read through the results:
- Debt held flat and spent $14M on growth capex
- Pioneer throughput was lower 'primarily as a result of lower demand pull in the fourth quarter on the Pioneer Pipeline which is protected by a take-or-pay contract.' Would expect that to be increasing this year?
- The hedge book is down to a liability of $45M, maybe that will improve in Q1 with oil up and MSW differntials down, but it's interesting to note that there are some bad hedges lurking in there for the long term.
-$800k receivable open to f-ing Highwood Oil (formerly known as Predator Blockchain) corp. As much as I want to like these guys, jeeeezus that's a bad look.