RE:Great quarterTheir level of debt to that amount of DCF generation is concerning. The operating environment for their existing assets won't get much better than now, but they're still not bursting with liquidity to invest in new opportunities, or trading at a level where they can raise equity. Outside of small optimization projects large scale growth initiatives (ex-LCFS) remain too expensive.
They sold off the upside in the renewable diesel project to LCFS, growth within TWM is limited, as is their capacity to fund it. They're cheap but look to be a value trap unless bought out.
Some reasonable well integrated E&Ps offer more compelling FCF yields with material upside from gas pricing. Other midstream companies offer upside through marketing or growth capex. TWM's upside is limited to renewables, which they'd have to cash in their LCFS stake to realize.