Tidewater Midstream and Infrastructure Ltd T.TWM

Over two months later.....

[pierrelebel]

On December 22nd 2023, with the common shares trading at $1.03, Tidewater announced:

"Tidewater's Board of Directors ("Board") has authorized the application to the TSX to institute a normal course issuer bid ("NCIB") which will establish the ability to repurchase, for cancellation, up to 10% of the public float of the common shares of Tidewater (the "Common Shares"). The NCIB will be subject to the approval of the TSX and is intended to be effective in the first quarter of 2024 and will be made in accordance with the applicable rules and policies of the TSX and securities laws. Tidewater believes that following the closing of the Transaction the market price of the Common Shares may not reflect the Corporation's intrinsic value and future prospects, and that the purchase of Common Shares may represent an appropriate use of the Corporation's financial resources to enhance shareholder value.

If that was true over two months ago, what is the new management waiting for to start buying the shares down about 20% since then?  Have they actually made the application to the TSX?

Losing patience and confidence.

[nkbourbaki]

I think TSX rules mandate a more detailed press release regarding NCIBs. From the TSX manual: The Issuer can issue a news release indicating its intention to make a Normal Course Issuer Bid, subject to regulatory approval, before the Exchange accepts the executed Notice. The news release should summarize the material aspects of the Notice, including the name of the Member conducting the normal

[pennydredful]

Once  an  NCIB  is announced  and  approved  by  the TSX   ,  THERE   IS  NO  OBLIGATION  FOR  THE COMPANY  TO  BUY   A SINGLE  SHARE   over   the duration   of  the period  the  NCIB  can  be executed.   The   non 

[pennydredful]

I  agree   with  you  it can  be  disconcerting  if  shares  weaken  and  they  do  nothing  .  Some fail  to consult  their   bank   and   bank   nixes   it.  Not   applicable  here. 

[nkbourbaki]

Yes it's primarily the lack of detail that makes me think they didn't apply.  I've never seen an announcement that doesn't at least mention the number of shares that can be purchased and the exact dates during which the bid would be active. But all mysteries should be revealed with earnings in the coming weeks.  

[pierrelebel]

By the way shareholders trying to reach "Investors Relations" at the email address offered on the Profile page will not succeed as it does not work (bad spelling!)! The profile shows [e-mail] instead of [e-mail]  They clearly have work to do as far as properly informing their shareholders!

[pennydredful]

Mis  au lieu of Mid   seems  an  appropriate  Freudian    Slip  Up 

[goodbuddy]

Everyone here will think i'm nuts for saying this, But Tidewater will not pursue the NCIB share buyback as they have better uses of their retained earnings than to buy their share back. they're probably paying 7% rounded off (6.5%)  after tax money. If you want to convert that to pretax, I'm sure it will be over 10% easily. NCIB will only allow 10% stock repurchase, so it only

[Tyee1989]

Another point by you that makes no sense. THEY HAVE NO DEBT. The ncib will commence in March after blackout so after March 14. They said it will be first quarter, so it will be. Again mark my words

[nkbourbaki]

It's hard to mark your words when you keep saying they have no debt. At end of Q3 they had roughly $930m in debt  and a significant working capital deficit (ignoring assets held for sale).   They sold the best asset and substantially reduced leverage.  BUT they still have debt, and are now reliant on weaker assets to service it.  This magnifies the importance of TWR

[Tyee1989]

That's consolidated debt. Lcfs has $340 of that. TWM had around $630, and they got $665. The total debt was about $985 but you must back out the lcfs debt.

[nkbourbaki]

That's a fair point but I'm not so convinced it makes sense to look at this on an deconsolidated basis.  TWM's remaining assets won't fetch a high multiple.  It strikes me that the fate of TWM is very dependent on TWR, and at 70% ownership and realistically no other potential buyers I think it's best to view TWM and TWR as one and the same.   The market

[pierrelebel]

Received a reply this afternoon to my inquiry from their PR company : "Hi Pierre, I have heard back from Tidewater who advise that the company is working through the application process." Time willl tell.  

[wynner]

There you have it. Should put a stop to the piranha crowd of penny chasers.