Next stepsJust to clarify, for Tidewater Midstream to take out the LCFS minority shareholders would cost about $150 million. (At $15 per share, the original issue price.)
This LCFS operation is a very, very small operation. Something like 3000 barrels/day. The value here is in selling pollution credits. Imperial Oil is not quaking in their boots, in fact, they are building a far larger diesel plant as we speak.
Tidewater does not have a growth avenue in gas plants. Period. Nor are the remaining gas plants worthless. Seems obvious that the company's dual-corporate structure serves no purpose and whatever the future business will be, you will need unfettered access to the LCFS cash flow.
It also seems just as obvious that LCFS shareholders will not take less than $15 for lending Tidewater their money for 3 years.
The people in control first need to get their hands on the money, pay off a whack of debt, and see the Q1 results from both companies. So we're talking May 2024 realistically before we get the grand reveal as to what Tidewater will be.