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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 longrun86on Aug 31, 2023 12:44pm
228 Views
Post# 35614072

RE:Seems obvious to me...

RE:Seems obvious to me...My view is that this is round 1 of what needs to be done for this company to get back on track. The headline valuation was good, the question becomes what has to happen with the AltaGas shares and the capital allocation thereafter.

My view is that Tidewater doesn't have the balance sheet to be in the midstream game anymore and the market has some large players that can execute and do deals at attractive valuations. If they can execute on this then the shares are at least a double from here.

The market won't pay up just yet for the refining and LCFS business so they need to prove that out a bit more before the market can ascribe a value with confidence. There is a lot of upside if they can. Ultimately, this needs to be one business again as there really is no justification for two companies other than a fancy sales pitch from investment bankers regarding "multiples" the market isn't stupid though so if it really believed in the business it would have a multiple that made sense based on the corresponding cash flow stream (at least in the long run).

They have done a reasonable deal and this has bought them time with the expectation that further developments must follow.
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