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Tidewater Midstream and Infrastructure Ltd T.TWM

Alternate Symbol(s):  TWMIF | T.TWM.DB.A

Tidewater Midstream and Infrastructure Ltd. is a diversified midstream and infrastructure company with an integrated value chain across North American natural gas, natural gas liquids (NGLs), crude oil, refined product, and renewable energy markets. The Company's operations include downstream facilities, natural gas processing facilities, NGLs infrastructure, pipelines, storage, and various renewable initiatives. It also markets crude, refined products, natural gas, NGLs and renewable products and services to customers across North America. Its key midstream assets include the Brazeau River Complex and Fractionation Facility (BRC), a full-service natural gas and NGL processing facility with natural gas storage pools, and the Ram River Gas Plant, a sour natural gas processing facility with sulfur handling solutions and rail connections. Its key downstream asset is the Prince George Refinery (PGR), the sole light oil refinery within the interior British Columbia market.


TSX:TWM - Post by User

Comment by fauxtomatoon Oct 26, 2021 7:23am
164 Views
Post# 34048461

RE:Refining Margins

RE:Refining MarginsThey've also likely hedged some volume of refined product output. I'd expect they'd have a big mark to market write up for Q4, in addition to very healthy spot crack spreads.

Daily rack prices for Prince George are available here: https://www.petro-canada.ca/en/business/rack-prices and market prices for Edmonton light and condensate are available here: https://www.psac.ca/business/marketstats/

There are a number of variables, all of which they have some hedges on: WTI, Edmonton light to WTI differential, US/Can exchange rate, and rack prices. I don't know how they hedge the product prices, PGR is pretty disconnected from RBOB.

Right now at $1/L and C$100 MSW the spot crack spread is about $59/Bbl. With oil in backwardation they can continue to lock in low cost feedstock costs. Q4 should be a great quarter at this pricing and recent activity levels, and as always with TWM, the promise of an inflection point when the renewable diesel project comes online in 2023. Anything can happen between now and then though.
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