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

Altagas holdings

[templetooth2]

These numbers will move with the passage of time, but why would Tidewater want to hold on to $325 million worth of ALA?

Tidewater as of mid-year had $655 million of bank debt, $155 million of term debt and $72 million of convertible debentures. So $810 million of debt, disregarging the debentures. Or ballpark $485 million of debt after the cash part of the deal is applied.

There's about 34 million shares of LCFS, about 10.5 million of them held by minority shareholders. (I haven't double-checked these numbers so take with a grain). Scotia is expecting LCFS to have $2.30 per share EARNINGS in 2024. Would it not be smart for TWM to try to snap up as many shares of LCFS as possible at any price under $12??? Or $13??? Or would you prefer to collect a 4% dividend from ALA?

[pierrelebel]

"why would Tidewater want to hold on to $325 million worth of ALA?" Because that was the deal on the table. Altagas was willing to pay half cash only.  TWM took the deal and it makes sense. Eventually ALA shares will be sold (potentially at a profit).  In the meantime we earn some income on them, more or less offsetting some of our interest costs (incoming dividends are tax

[wynner]

How many shares of LCFS can they buy instead of holding ALA? Too many to stay below $15 I bet. Buy the dip I say.

[Mephistopheles3]

They just spun off LCFS not that long ago and if you look in their comments on the calls, they are looking at divesting LCFS to get  below a 50% holding and thus not having to consolidate LCFS' results in their statements.  So they're doing the opposite of what you're saying. However, the price of LCFS is way too low that they'll likely just sit on the shares to allow

[templetooth2]

Re Mephisto's vision of Tidewater's future (or lack of vision!!!): If TWM intends to slowly sell off their ALA and LCFS shares to fund a 3 or 4% dividend and provide 5 or so execs a comfortable lifestyle, that will soon enough become clear, once the Altagas deal closes. Tidewater has proven in the last decade there is minimal interest in a fifth or sixth industry player in the natural