Tidewater Midstream and Infrastructure Ltd T.TWM

The Future for TWM

[TVR]

Once the dust settles from the Pioneer sale I expect we will see a future path to $300 million annual EBITDA within a couple of years.  Modest EBITDA growth from optimising PGR and other existing operations should get them to around $225-240 million EBITDA, then add growth projects like the renewable diesel, and I suspect some opportunities we have not heard of yet, should give them the opportunity to get to $300 million by 2023/2024. 

They may even pull another rabit out of the hat like they did with PGR.  In any event, TWM still looks like one of the best growth opportunities in the Canada midstream arena, although I do like the opportunites that Pembina has if they can complete the IPL acquisition.

[fauxtomato]

Having the Pioneer proceeds in the bank makes this a new story of adventure and possibilities, not the grim tale of survival we've had for the last 18 months. I agree with your EBITDA numbers and would only add that DCF as a % of EBITDA should grow from here due to a combination of lower interest costs and reduced lease liabilities (mostly railcars I think). Just as accumulating debt works as