Tidewater Midstream and Infrastructure Ltd T.TWM

Pipeline Sale

[firstworld]

so what happened? Did it slip under the rug with 100% 45 yr finance to the in-laws of c-suite?

[fauxtomato]

From the Canadian Utilities Q4 call last week: Natural gas transmission also entered into an agreement in September to acquire 100 kilometers of the Pioneer Pipeline here in Alberta for a net purchase price of $200 million. The transaction is subject to regulatory approvals by the AUC and the Alberta Energy Regulator, which are expected in the second quarter of 2021.

[rustyblades]

Fron TA's Annual report news release this morning "Together with our partner, Tidewater Midstream & Infrastructure Ltd., entered into a Purchase and Sale Agreement with ATCO Gas and Pipelines Ltd. ("ATCO") to sell the Pioneer Pipeline for a purchase price of $255 million ($127.5 million net to TransAlta). This agreement replaces the Company's previous agreement from

[fauxtomato]

May comment on the timing of the sale on the call today. I should have pointed out that ATCO's $200M figure is only for the portion of the pipe they would own: some would be owned by NGTL, and some assets currently in the JV are being sold to TransAlta. What an insane transaction.

[firstworld]

Failed deal comprised of 3+ back to back elements not to mention relatives of c-suite and opaque holding co interest. Such a small deal lime this taking so long is deeply troubled or bogged down in corrupt corpnpolitics everyone scrambling for pennies to buy new play boats for 2021 season. This is a typical Soviet era deal and no surprise as Canada now a welfare state with second highest federal

[fauxtomato]

This seems strangely personal yet vague and ill informed. I can't tell if you know what you're talking about (with this asset in particular) or you just need to vent about Canada with the same tired lines in several forums. Either say something new or don't say anything, it's not hard. This circular, hyperbolic ranting with vague innuendos to make yourself feel good doesn't

[fauxtomato]

The new arguments are up, it's an interesting read

[fauxtomato]

Some of these statements crack me up. What a mess, glad it's not my job to make sense of this stuff. Yeesh.

[nkbourbaki]

I was thinking exactly the same thing.  I read the evidence and think "that's a good point". Then I read the rebuttal and think "that's a good point".   I have no idea if this is par for the course or if the aggressive language is specific to this case.  AP really banging the drum that the intervenors are asking the commission to consider issues

[firstworld]

The whole thing is harious and reeks of massive corruption at all levels when HSE can do a huge true "investment grade" deal in 1/4 of the time. Since when do regulators comment or influence divestment price...that only happens in former soviet economies and 3 rd world dictator ships. This think smells sobadlybthay should be delisted pending investigation.

[fauxtomato]

Clearly, I was suspicious of this deal when it was announced: why build a 100 mile pipeline in a province already crisscrossed with them? But who should be delisted here: Atco, TransCanada, TransAlta, or Tidewater? Thanks for your insight!

[nkbourbaki]

Probably best to err on the side of caution and delist them all.   

[fauxtomato]

In an earlier presentation when TransAlta unveiling their coal to gas strategy they claimed the coversion would extend the life of the units to the  late 2030s [about 15 years of the max size contract with AP] , at which time they could potentially be covered to combined cycle. https://www.transalta.com/wp-content/uploads/2019/09/2019-Investor-Day-Presentation-Final-1.pdf At the time the

[firstworld]

Remember that your tax dollars paid for 100% of that transition. They also made huge profits on changeover, a tax dollars. AB should just Nationalize the powergen since the tax layers door the bill. Everyone in Canada needs to stop pretending they are "businessmen" in a centrally planned and funded economy. This is just good old fashioned Soviet replication with the cheesy guys in suits

[nkbourbaki]

I think you might be a psychic.   Thanks for your thoughts, as usual.

[fauxtomato]

Haha, thanks! I think my source on that was a conversation we'd had. Similar to Pipestone, they've telegraphed this in various ways but nice to get some framework around timing, cost, and returns. I don't know if I'm emotionally ready for another few years of mounting debt and slow to ramp returns, though. Q1 2021 may be the first time the Pipestone plant really hits full

[AntoninScalia]

What's your take on the renewable diesel and hydrogen complex investment? $75 million in EBITDA for a $125 million investment (net of BC credits) sounds insanely good.

[fauxtomato]

I don't know enough about the market or the project to comment intelligibly but it looks good on paper. I think the BC credits would take the form of marketable BC LCFS credits https://www2.gov.bc.ca/assets/gov/farming-natural-resources-and-industry/electricity-alternative-energy/transportation/renewable-low-carbon-fuels/monthly_credit_market_report_-_2021-02.pdf which adds an element of

[AntoninScalia]

Let's hope for a Ballard Power type of re-rate in the shares due to the hydrogen rush. 

[firstworld]

Well at least they didn't call this highly speculative prospective welfare opportunity " investment grade" haha. All of these welfare projects are failures within months of construction start. There deals are garbage ....we all saw how ON screwed authentic institutional green power developers who bought into the FIT program with $BNs. Just change the rules poof there goes $20 BN If

[fauxtomato]

The appeal of 'midstream and infrastructure' is that it is essential and necssary, a basic service that should retain value over time and through economic cycles. Not assets that are made economically viable through the exchange of invented credits. What happens when diesel in BC hits $1.50 or $2/l? Do these credits get scrapped on a change in provincial government? I don't believe

[AntoninScalia]

I'm confused by the pessism. When the government wants to give you free money to start a potentially really profitable venture you take it. Many governments will become aggressive in transforming their economies to produce less carbon/pollution. They will dole out lots of money in order to so and we should be cheering them on as shareolders of a company that can create a venture 50% paid by

[fauxtomato]

I'm skeptical of being involved in public-private partnerships in general. I realize part of this may be a personal thing. I think the LCFS program is generally believed to be effective in lowering carbon intensity, and I don't mind TWM participating, or the government initiative to help fund the project. I do think that regulation fueling the profits of private companies can be a bad look

[firstworld]

Well, demand return of all welfare dollars from the first three, or Nationalize them, and delist TWM for highly deceptive practices, corruption, and misuse of investor dollars, and get all the welfare back plus seize all directors assets and other related parties as well pending unexplained wealth investigation outcome everyone else too. Do it like the Russians do with corrupt people swindling the

[fauxtomato]

I can't disagree with any of the points you come close to making, because before you make them you get derailed into the same cookie cutter rants. Either make a point and educate us all or don't. I will agree that Canada is not Russia...?

[firstworld]

Has the pipeline been sold yet? At least they should make an announcement on the previous announcements LOL this is comedy hour of bumbling incompetence. Everyone know they are late paying and on the cusp of bankruptcy currently negotiations extent and pretend on the backs of tax dollars bank bailouts. If there ever was a ponzi scheme Canada is it LOL. That's why all foreign cash has fled to