RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Renewables IPO Timing - August + $585 million to TWMI wouldn't want them to buy many back shares for a few reasons. New projects are cheaper than their current trading multiple, their portfolio contains some declining, legacy assets that will need to be replaced in new more active regions to maintain current cashflow, and an expanding footprint creates operational synergies for their other assets. I think there is still something here that is valuable, especially at $4 AECO.
A successful placement of the LCFS IPO would allow them to reinvest in their core business, something they haven't done since Pipestone entered service. A 50% increase in dividend only costs them about $7M/yr, or what they save in interest expense from the LCFS cash payment. They could do that and keep the payout ratio still low, maybe 35% retaining cashflow for additional capex.
Clearly the focus the last few quarters has been on the renewables initiatives and the IPO of LCFS. A successful placement of LCFS would be good for several TWM assets: RAM, PGR, BRC, but being able to resume investing in their traditional midstream business at 5-7x is why I'm here.