Tidewater Midstream and Infrastructure Ltd T.TWM

What's Next for TWM?

[TVR]

As I expected, TWM have quickly sold all the ALA shares received from the Pipestone sale for $340 million.  With the $325 cash also received the immediate interest saving is something in theorder of $45 million per year. What's next?  The press release only confirms the ALA sale but no info on what TWM plans to do with its new liquidity.

Pretty sure they have a plan and it is not the share buy-backs  (the NCIB buyback could be fully funded by the interest saving alone since it is limited to 10% per year), but when we will get to find out what it is?

[Tyee1989]

In my opinion the new CEO was brought in to create shareholder value. The way the last CEO was running the company was not working, they got pigeon holed with growth and debt. I believe the new plan could be to sell everything over the next year or two as everyone knows what they own is worth a lot more than the market cap. I believe selling pipestone was the first step. Cutting the dividend

[TVR]

I like your assessment of the likely direction the new CEO will take and would much prefer to see this than see another large new-build investment.  TWM had a good record for building on time and budget up until the RD facility which did not come in anywhere close to on time or budget. If they had announced a strategic review or sale process at the same time as announcing the Pipestone sale

[Mephistopheles3]

CIBC wrote a decent report on the options that are available with the capital.  If TWM continues to sell other assets as part of the review, we might be looking at a SIB (substantial issuer bid) to take out a large part of shares.   Other option is what to do with Tidewater Renewables which is a big question mark.  Spinning it off as a seperate company didn't work. 

[nkbourbaki]

Great interview. Thanks for the link.

[Tyee1989]

You're welcome. Do you tend to agree with what I'm saying after listening?

[NewOpportunist]

I had a chance to talk to Rob Colcleugh, Tidewater Midstream, some time ago. He actually talks directly to investors. My perception of him is that he is a no-nonsense manager, just rolls up his sleeves and tackles the tasks at hand. He is not an empire builder, very different from the prior CEO. He didn't ask for this job, so he also doesn't have a lot of skin in the game, i.e. ownership

[longrun86]

I really enjoyed this and it certainly brought some comfort to me that he is focussed on driving shareholder value as opposed to empire building with high levels of debt. I am excited to see what they do in 2024 and I think TWM has an opportunity to do some creative projects that will drive shareholder value. I would like to see the TWM share price start with $2 this time next year!

[goodbuddy]

I am excited to see what they do in 2024 Well, with a new CEO and CFO coming on board in less than year at the helm. I suspect TWM is in big trouble, let's start with the renewables, no positive news coming from here, I suspect operational troubles big time here.  

[Mephistopheles3]

New interim CFO - Aaron Ames.  His profile is all about restructuring and selling off the companies he works for.  Take a look at his experience at LinkedIn.  The only reason you bring this guy on is to sell off the company which is burning down to a bigger player.  New CEO is a senior VP of AltaGas.  I don't know what's going on in the background, but at this

[wynner]

Is this the new CEO? Jeremy Baines is President of Neste US. He has a BS in Economics from City University, London, UK and has over 15 years of commercial and leadership experience with Neste in Geneva, London, and Brussels. He relocated to Houston, Texas in August 2016 with his wife and two children. As an experienced renewables leader with an approach that combines business development

[Mephistopheles3]

You can find his profile on LinkedIn - former senior VP of Altagas.  His whole career is midstream - so he's an industry expert.   https://www.linkedin.com/in/jeremy-baines-499634152/?originalSubdomain=ca

[TVR]

As of today's press release Colcleugh is no longer there and TWM + Renewables have a new CEO who does not appear to have any prior links to TWM. No idea who he is or how he relates to Birch Hill.  If Colcleugh is gone he presumably did not see eye to eye with Birch Hill and the rest of the Board so who knows what is going on and what direction they will take.