Tidewater Midstream and Infrastructure Ltd T.TWM

Good quarter .

[divime1]

Consolidated Financial Highlights

	Three months ended March 31,
(in thousands of Canadian dollars except per share information)		2021		2020
Revenue	$	360,039	$	252,464
Net income (loss) attributable to shareholders (1)	$	8,396	$	(38,140)
Basic net income (loss) attributable to shareholders per share (1)	$	0.02	$	(0.11)
Diluted net income (loss) attributable to shareholders per share (1)	$	0.02	$	(0.11)
Adjusted EBITDA (2)	$	51,113	$	41,506
Net cash provided by operating activities	$	55,532	$	27,990
Distributable cash flow (3)	$	16,917	$	12,489
Distributable cash flow per common share – basic (3)	$	0.05	$	0.04
Distributable cash flow per common share – diluted (3)	$	0.04	$	0.04
Dividends declared	$	3,392	$	3,377
Dividends declared per common share	$	0.01	$	0.01
Total common shares outstanding (000s)		339,154		337,679
Payout ratio (4)		20%		27%
Total assets (1)	$	1,942,120	$	1,857,559
Net debt (5)	$	857,187	$	871,321

[fauxtomato]

This is the first time I've seen this in their MD&A, right? Must be looking at the high yield market to refinance the second lien and notes payable. A lower interest rate on that debt will make a big impact on DCF. $16M in growth capital for the quarter, and an increase in debt of $3M

[AntoninScalia]

~$50mil of growth capex in the past 9 months. Let's hope it's being invested at decent returns.

[fauxtomato]

According to Joel's prepared remarks in the call 2021 growth capex was heavily Q1 and that's about half of the budgeted growth capex for the year. 'high rate of return optimization projects' As always, the inflection point is just around the corner, but a positive FID on the renewable diesel project and the eventual closing of Pioneer will go a long way. Potential expansion of

[AntoninScalia]

Yes it appears growth capex will decline substantially for the rest of the year even though he said they have a lot of projects lined up that they could spend money on. Another interesting tidbit was the additional EBITDA of ~$30 million they will receive from federal credits for their renewable project. 

[fauxtomato]

At $50/credit, right? I'd much rather they partner on the renewable diesel project even if that dilutes the net benefit to TWM shares. He hinted at project financing, which I think they would claim still de-levers TWM as the projected EBITDA from the project is so strong [50% government funded, 50% debt funded on a 3x ebitda project brings corporate debt/ebitda down]. They pulled the same

[nkbourbaki]

Good line. Was thinking the same!

[Maxmoe]

You guys know much about cielo, cmc? I caught mcwhirter pumping it on BNN again. Big assumption that they have a patented process to turn garbage into low sulphuric diesel, but it's (ESG) better than converting food to fuel no? Any chance the $30 mill capex planned is for one of those cielo units? It's about the right snack bracket for one train for one modest municipality.

[firstworld]

The Germans are not using it and they have been in the game for 35 years....it's all a sahm just like the study than cane out of Germany on 3) years of wind power showing the total GHG foot print was 7 times greater. Sale with EVs ....Singapore taxes them same as Mercedes s63 their GHG footprint is so huge. Canadians are total amateurs at this trying to reinvent the wheel just hire the Germans

[fauxtomato]

Hah, thanks for reading and making it to the end! This has the potential to be the year 2020 should have been, but their eyes always seem bigger than their budgets. I get the feeling their plan with the IPO was to continuously issue equity and grow through acquisition, not this pay down debt through FCF generation. It's not in their blood and, with kind commodity prices and if they can sell

[firstworld]

Junk Debt to finance nepotisim and "rebates" to csuite along with inflated bonuses and salaries all the whiel defrauding the govts of 10s MNs in welfare. A great place to gamble because this is Canada!