Tidewater Midstream and Infrastructure Ltd T.TWM

Director election votes

[AntoninScalia]

Why so many votes against Neil McCarron?

[firstworld]

As a Birch hill man he's asking the tough questions and demanding high integrity performance. In a culture of nepotism and vested interests from underwater speculators they want him out so they can continue to enrich their group on fake "investment grade" deals with zero pay guarantees and overpaying all favoured vendors LOL. It's the Canadian way. Don't ask don't tell

[fauxtomato]

Michael Salamon is a Birch Hill partner, but Neil McCarron looks like an infant-bro with a Western University degree. I kind of get the nepotism and vested interests critique: TWM has the feel of a Russian nesting doll where inside of each transaction is an arm's length deal or a privately held asset of a TWM employee. Just look at the mind boggling black magic going on with HOCL, staffed by

[goodbuddy]

The next transaction will be a partial sale of Pipestone! I hope not, but, I think the sale might be inevitable.

[fauxtomato]

It's the obvious choice: contracted asset in the right geology and well connected. With their cost of debt and cost of equity sky high, any sale would be accretive to DCF/share, as much as it pains me. I don't know that standalone TWM pre-PGR would have fared better this year, but I don't see the benefit of owning PGR on the financials

[goodbuddy]

*TWM has the feel of a Russian nesting doll where inside of each transaction is an arm's length deal or a privately held asset of a TWM employee. I kinda see your statement here palying out just a bit. I'm not comfortable about that in a company.

[goodbuddy]

Is there a way of finding if Birch hill equity partners disposes any of their shares of tidewater? I would like to follow that if it is possible. I'm sure once a year we should see it in the sedar releases.

[fauxtomato]

They'd have to file as insiders. I think they picked up ALA's 44m shares at $1.45, the price they were issued to ALA at for the deep basin gathering plants (a few of which were just sold for nothing, I believe?) They already owned some shares to begin with, and added at much lower prices, so my only hope here is that their cost basis must be something close to mine (right now I'm at

[AntoninScalia]

Their cost basis is definitely higher than $1.00. They owned 29,828,700 shares before they purchased 43,703,571 shares from AltaGas. Hard to know the average price of the shares they owned before the AltaGas acquisition but even if they timed their purchases perfectly they paid at least an average price of $1.30. I think when you include the shares that they purchased during the recent downturn

[fauxtomato]

That's right, they owned about 10% of the outstanding shares prior to the ALA acquisition, thanks! The volume of purchases post pandemic wouldn't be enough to offset those higher cost purchases. So it wasn't just me fooled by the pre-PGR sales pitch. Post-Pioneer they're still going to be tight on their financial guardrails, but can't see them staying quiet forever. 

[AntoninScalia]

Perhaps a possible scenario is a merger with Campus Energy. Can't imagine Tidewater receiving a large premium if that happens. 

[fauxtomato]

Campus are the eastern AB assets from Alatagas? No synergy there, but I wonder if some of those assets could be passed to TWM. Same for whatever remains of Highwood, the crude pipeline and batteries. TWM assets touch a lot of PPL pipe valves, at Pipestone, PGR and the BRC. For pure operational synergy I'd think that'd make some sense. Simply refinancing the debt would elevate the FCF

[robbie88]

Birch Hill owns total 82M shares of TWM around 24%. The purchase price was $1.45, then bought more between 40cents - 70cents, after all the dividends received these years, the average cost is around $1.20