CIBCRate TWM as Outperform with a $2.00 target. GLTA
EQUITY RESEARCH
March 7, 2022 Flash Research
TIDEWATER MIDSTREAM &
INFRASTRUCTURE LTD.
Inaugural ESG Report Released
Tidewater announced the release of its inaugural ESG Report containing
updated performance metrics and providing an initial update on progress and increasing transparency. The company is also planning to issue a full report biennially with performance tables being updated annually.
The key highlight to us is the safety record, with no lost time injuries in the
2017-2020 period. A solid safety record is one sign of a strong operator,
which is a consideration from counterparties when making infrastructure
commitments.
We also view the report as light on specific goals, for example emissions
reductions, as the company is still developing its Corporate GHG and Carbon strategy to reduce its carbon footprint and compliance costs. It is also focused on moving away from Alberta’s grid power with on-site natural gas fired power generation, and aims to use green and renewables fuels and carbon capture and sequestration technologies as they mature and become readily available. With the creation of Tidewater Renewables last year (Tidewater has a 69% interest), there is no shortage of focus on low-carbon opportunities (a separate sustainability report for Tidewater Renewables is expected in the future). Similarly, while the company has developed Diversity in the Workplace Guidelines, the company has not published specific targets and goals. We expect there will be more to follow as strategies are developed and disclosed.
Other highlights include:
Established an ESG Committee in 2020 that meets weekly to review
opportunities to improve the corporation's ESG performance,
Contributing over $465,000 in the past four years to various
community initiatives.
Becoming a founding member of Project Forest in 2020, a non-profit
organization committed to planting trees to sequester carbon in
Alberta and committing to planting 20,000 trees over the next five
years.
Annual GHG Emission Intensity down year-over-year in 2020 at
0.0130 tonnes CO2e/BOE vs. 0.0141 tonnes CO2e/BOE in 2019.