RE:Tidewater Midstream There is no doubt it is a mess!
I think that the reason they have not pulled the trigger on a full consolidation relates to the LCFS's Board's view of the upside potential of the SAF program. They must believe that there is market upside that is not priced in and that the fuel credits debacle will get resolved. As fiduciaries they are no doubt aware that they have the responsibility to maximize their shareholders value through this process.
Ultimately, the separation of these entities and the IPO of the renewables was essentially an investment banking sham. The two companies operate on the same properties and really cant operate independantly.
I am going through this exact thing with Melcor Development and Melcor REIT where the spun out the REIT a decade ago and have just announced that they will take it back in house.
The quote I used on the Melcor board yesterday from JP Morgan (allegedly): "In a bear market, companies return to their rightful owners". In my mind it is only a matter of time until they have to fix this.
I am leary of any business whose foundation is built upon the existence of a Government program. Despite this, I invested in Tidewater and have learned from my mistake.
My hope is that these are the darkest days and that they will right the ship. It will take a while to do this and that assumes things go right.
LR