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Bullboard - Stock Discussion Forum Tidewater Midstream and Infrastructure Ltd T.TWM

Alternate Symbol(s):  TWMIF | T.TWM.DB.A

Tidewater Midstream and Infrastructure Ltd. is a diversified midstream and infrastructure company with an integrated value chain across North American natural gas, natural gas liquids (NGLs), crude oil, refined product, and renewable energy markets. The Company's operations include downstream facilities, natural gas processing facilities, NGLs infrastructure, pipelines, storage, and various... see more

TSX:TWM - Post Discussion

Tidewater Midstream and Infrastructure Ltd > Vertex acquires Shell's Mobile refinery
View:
Post by fauxtomato on May 28, 2021 9:19am

Vertex acquires Shell's Mobile refinery

Renewable diesel is the place to be right now.

Vertex acquired Shell's Mobile refinery for $75M, and is starting an $85M renewable diesel project, converting an existing hydrocracking unit.

Forecasting $400M in gross profit in 2023, once the unit is online:

https://s3.amazonaws.com/cdn.irdirect.net/PIR/485/5691/VTNR%20Mobile%20PSA%20Presentation.pdf


At close, Vertex will initiate an $85 million project that will result in new, incremental production of 10,000 bpd of renewable fuels by year-end 2022, increasing to 14,000 bpd by mid-year 2023 • Vertex expects the average gross profit per barrel on its renewable diesel production is significantly higher than that of Mobile’s conventional fuels production, given the current benefit of tax subsidies and carbon reduction incentives


VTNR went from $1.75/sh on Wednesday to $6/sh in premarket today. It's insanity, maybe this is closer to what TWM had in mind with their renewable announcement. :\
Comment by AntoninScalia on May 28, 2021 3:14pm
Perhaps we can capture similar upside if TWM spins out the renewable diesel facility as a separate pure-play ESG entity?
Comment by Maxmoe on May 30, 2021 5:46am
Vertex getting ahead of itself? How does a $75 M refinery plus $85M project generate $400M in profit? I mean, is Shell really that stupid? Or is vertex a short?