Tidewater Midstream and Infrastructure Ltd T.TWM.DB.A

Conference call takeaways

[templetooth2]

Listened to both TWM and LCFS calls (recorded) this aft. The only clear, crystal clear message was that the asset review study was coming to an end and results would be forthcoming sooner rather than later. I am guessing weeks not months. Guessing.

Some preliminary conclusions are possible - for instance, less debt is better. They have also been thinking about which assets might be better off in other hands. One questioner none-too-gently asked why the Pipestone expansion was even mentioned, given the company's handicap of having a much higher cost of capital than competitors. I think the greater value in other hands answer came as a result of that cost-of-capital comment. 

Interesting comment re LCFS. It was stated that it was never Midstream's goal to end up with 70% ownership. Also, that consolidating that 70% on Midstream's books led to "complexity". My immediate reaction was they're gonna sell LCFS, or at least take their interest below 20%. 

On second thought, not so sure. If they wanted to sell, why appoint 2 new outside directors? Also commented that project was at the finish line and tremendously undervalued. I THINK there's a better chance of Tidewater selling the gas assets, then perhaps using some of the proceeds to buy back some portion of LCFS minority. I think Tidewater going forward will be LCFS. Won't have to wait long to find out.

[wynner]

I also listened to both calls. My take: LCFS is undervalued. They would like to have ownership below 50% but at a higher price. They want to reduce debt by selling "something". Note that AIMCO is holding warrants that would ammount to 9% of shares. Potential for TWM to sell some of their shares in a block to "someone" to bring down ownership and improve liquidity and become