Tidewater Midstream and Infrastructure Ltd T.TWM

Undisclosed Divestment

[firstworld]

Anyone heard anything about the sale of Tidewater Logistics OA Mach Energy services to private party?

[fauxtomato]

It was announced in Q3 If memory serves it was acquired around the time of Acheson (2016?) from management of TWM

[firstworld]

That's way a total rip off the fleet of next to new tank trailers and trucks was worth $50 MN paid in cash.

[fauxtomato]

This is what you'd pay $50M for? The NGL Trucking Acquisition Tidewater also entered an agreement with Mach Energy Services Inc. ("Mach") to acquire six tractors, seven NGL trailers and three condensate trailers for a total consideration of $3.5 million in cash. The NGL Trucking Acquisition enhances the value of the recently announced fractionation facility at the BRC gas plant

[goodbuddy]

Looks lioe you have another full time job other than welding as you mentioned once before. Now you're an editor for a social media site....

[fauxtomato]

It's been a while since I've struck an arc, I'm mostly a professional spreadsheeter. I have a whole bunch of money tied up in TWM at the moment and if you want to discuss it I'm all ears. It's small enough yet to still model and be interesting. Petrinex data should be out soon, and I'm willing to believe there is something rotten at the core of TWM, but there's also

[goodbuddy]

Unlike you and many poster here, I'm 100% out of TWM. I had high expections for this company, not sure what I saw that put the sour taste in my mouth. I was surprised by the recent quarter report (mostly better news than what I was expecting). I do think the PGR saved their reputation in this report, although it came with extra baggage * higher debt. I'll be watching from the sidelines

[goodbuddy]

When you say ROTTEN TO THE CORE, I have flash backs of wild spending with a disregard for the IRR ratio. When you say fascinating, I think of what are they going after today.

[fauxtomato]

I don't think it's rotten to the core, but I think there are some bruises in there that are hard to quantify. They have a ton of nonproducing wells on the asset list and a high ARO to cash flow when you compare them to their larger, more integrated peers. These obligations come with some of the transactions from producers, and in my uninformed opinion helped artificially lower the ebitda

[Maxmoe]

Not a bad idea to take a little off the table if the ESG crowd push it too high. It's a bit of a hodgepodge but it's very underfollowed because it's so small so I'm interested enough in the "new" diesel or whatever they call it to stick around for some upside as it gets discovered. Nice job on your analysis by the way, faux.  

[AntoninScalia]

Can also be considered a good play on the economy opening up again. More driving -> higher demand for gasoline -> PGR to the moon

[firstworld]

NGL traikers are near new $400K each, tractors $100K each and condi units $250 K ea. Looks like TWM got their reward from the buyers of perhaps the newest fleet cash paid, in W.Can for $0.35 on the dollar lol....probably sold to their friends and relatives haha.

[fauxtomato]

Your numbers seem to line up with the transaction value. I don't know how much was invested from the time of the acquisition to the time of the sale, but they booked a profit on their portion of the fleet and are moving on. I was surprised they sold it as it had some integration value between Acheson and Brazeau, but I guess you're out of cash you're out of cash. The shift in focus

[firstworld]

I can tell you for certain they spent at least $50 M on trucks and tankers from 2016-2019. NGL trailers do not lose money they trade at 95% new price after 5 years and 2 MN KM. Deal smells so corrupt it's not funny. Who was the buyer?

[fauxtomato]

Wouldn't that capital have shown up as a GAAP loss on the divestment? $50M on trucks and trailers would have been a lot of equipment to dump for peanuts. Don't know who owns it now but doesn't seem to be a company worth $50M https://ca.linkedin.com/company/mach-energy-services-ltd Again, I'm all for sharing information to figure out what's going on here, but what you're

[goodbuddy]

Mach new company CEO

[goodbuddy]

https://www.lvenergyservices.com/ If you google Wes Dunbar you will get this company.

[fauxtomato]

Yeah, they share an address in Rimbey, too. Seems to be the connection. I'm going to guess they didn't acquire an NGL trucking fleet worth $50M but happy to see evidence to the contrary.

[goodbuddy]

I wish they was more of a breakdown with these contractual obligation and commiments. For a small company, these number are high. The Corporation had the following contractual obligations and commitments, including those recognized as leases, as at December 31, 2020: (in thousands of Canadian dollars) Within one year After one year but not more than five years More than five years Total Lease

[valuguy]

It would take a Hail Mary to pay those terms due next August and October.

[goodbuddy]

If my memory serves me right, Tidewater's original purchase price of Mach was for equipment that is of smaller scale. As the years went on Tidewater probably expanded there trucking and trailer base, maybe tthrough third party contractors who leased the trailers and subleased they're trucks to tidewater. I could not find anything related to a writedown or something that would indicate

[goodbuddy]

I'm getting a feeling that some trucks and trailers were leased. After viewing past finacials, Tidewater has mentioned that midstream leases specifically transportion of crude oil and NGL's are reported under the midstream assets. These assets are probably buried under the "RIGHT OF USE ASSETS". When you review previous financials, the right of use kiabilities have risen

[fauxtomato]

I think some of their leases relate to leased train cars for the crude marketing business segment that didn't really pan out. Redelivering those as leases expire will flow right through to DCF. Probably a lot of power from the sale/leaseback of the Pipestone co-gen, too? The 'adjusted ebitda' from the IFRS exclusion of 'right of us assets' is definitely inflated and

[Maxmoe]

Why don't you just email a few questions to the company rather than a chat board on shithouse? Hint ..... don't accuse them of fraud,embezzlement, and theft if you want to better understand the company's inner workings. Hint 2, anything from turdworld is utter nonsense.

[firstworld]

Cash purchases of entire NGL fleet with minor surge rental backfills.

[goodbuddy]

All you have to do is follow the trail of nuts.