CALGARY, Dec. 17, 2018 /CNW/ -
TransAlta Pioneer pipeline option exercise
Tidewater Midstream and Infrastructure Ltd. ("Tidewater" or the "Corporation") is pleased to announce that
TransAlta has exercised its option to acquire a 50 percent ownership interest in the Pioneer pipeline connecting the Tidewater
owned Brazeau River Complex to TransAlta's generating units in the Keephills and Sundance area. Tidewater will construct and operate the 120 km natural gas pipeline, with an 11km lateral
connecting to Sundance, which will have an initial throughput of 130 MMcf/d with the potential
to expand to approximately 440 MMcf/d. The project is supported by a 15 year take or pay commitment from TransAlta.
TransAlta's investment will be approximately $90 million. Construction of the 120km pipeline
commenced last month and is expected to be fully operational by the second half of 2019. TransAlta's investment is subject to
final regulatory approval of the lateral and licence transfers from Tidewater to the partnership.
Fourth Quarter dividend
Tidewater is pleased to announce that its Board has declared a dividend for the fourth quarter of 2018 of $0.01 per common share payable on or about January 31st, 2019 to
shareholders of record on December 31, 2018. The ex-dividend date is December 28, 2018. This dividend is an eligible dividend for the purpose of the Income Tax Act
(Canada).
The Corporation's Business
Tidewater is traded on the TSX under the symbol "TWM". Tidewater's business objective is to build a diversified midstream and
infrastructure company in the North American natural gas and natural gas liquids ("NGL") space. Its strategy is to profitably
grow and create shareholder value through the acquisition and development of oil and gas infrastructure. Tidewater plans to
achieve its business objective by providing customers with a full service, vertically integrated value chain through the
acquisition and development of oil and gas infrastructure including: gas plants, pipelines, railcars, trucks, export terminals
and storage facilities.
Cautionary Notes
Advisory Regarding Forward-Looking Statements
In the interest of providing Tidewater's shareholders and potential investors with information regarding Tidewater, including
management's assessment of Tidewater's future plans and operations, certain statements in this press release are "forward-looking
information" within the meaning of applicable Canadian securities legislation ("forward-looking statements"). In some cases,
forward-looking statements can be identified by terminology such as "anticipate", "believe", "continue", "could", "estimate",
"expect", "forecast", "intend", "may", "objective", "ongoing", "outlook", "potential", "project", "plan", "should", "target",
"would", "will" or similar words suggesting future outcomes, events or performance. The forward-looking statements contained in
this press release speak only as of the date thereof and are expressly qualified by this cautionary statement.
Specifically, this news release contains forward-looking statements relating to but not limited to: planned construction of
the TransAlta Pioneer pipeline and projected in-service date of such pipeline; potential to expand the capacity of the Pioneer
pipeline; expected investment by TransAlta in the Pioneer pipeline and the timing of the related cash payment; and projections
regarding the receipt of final regulatory approvals of the lateral and licence transfers for TransAlta's investment.
Such forward-looking statements of information are based on a number of assumptions which may prove to be incorrect. In
addition to other assumptions identified in this document, assumptions have been made regarding, among other things: general
economic and industry trends; oil and gas industry expectation and development activity levels; future natural gas, crude oil and
NGL prices; the Corporation's ability to secure natural gas supplies; anticipated timelines and budgets being met in respect of
the Corporation's projects and operations; receipt of regulatory approvals for the Corporation's capital projects; that
counterparties will comply with contracts in a timely manner; that there are no unforeseen material costs relating to the
facilities which are not recoverable from customers; funds flow from operations and cash flow consistent with expectations;
future capital expenditures to be made by the Corporation; the ability to obtain additional financing on satisfactory terms; the
ability of Tidewater to successfully market its products; the Corporation's future debt levels and the ability of the Corporation
to repay its debt when due; foreign currency, exchange and interest rates; that any third-party projects relating to the
Corporation's growth projects will be sanctioned and completed as expected; the Corporation's ability to obtain and retain
qualified staff and equipment in a timely and cost-effective manner; and, the amount of future liabilities relating to lawsuits
and environmental incidents and the availability of coverage under the Corporation's insurance policies.
Actual results achieved will vary from the information provided herein as a result of numerous known and unknown risks and
uncertainties and other factors including but not limited to: general economic, political, market and business conditions,
including fluctuations in interest rates, foreign exchange rates and stock market volatility; regulatory approvals of the
Corporation's capital projects; activities of producers and customers, procurement of natural gas supplies; the regulatory
environment and decisions and First Nations and landowner consultation requirements; operational matters, including potential
hazards inherent in the Corporation's operations and the effectiveness of health, safety, environmental and integrity programs;
transportation of hazardous materials; fluctuations in commodity prices, inventory levels and supply/demand trends; actions by
governmental authorities, including changes in government regulation including environmental, tariffs and taxation; changes in
operating and capital costs, including fluctuations in input costs; competition for, among other things, business, capital,
acquisition opportunities, requests for proposals, materials, equipment, labour and skilled personnel; environmental risks and
hazards, including risks inherent in the transportation of NGLs which may create liabilities to the Corporation in excess of the
Corporation's insurance coverage, if any; non-performance or default by counterparties to agreements which the Corporation or one
or more of its subsidiaries has entered into in respect of its business; construction and engineering variables associated with
capital projects, including the availability of contractors, engineering and construction services, accuracy of estimates and
schedules, and the performance of contractors; the availability of capital on acceptable terms; changes in the credit-worthiness
of counterparties; effects of weather conditions; reliance on key personnel; technology and security risks; potential losses
which would stem from any disruptions in production, including work stoppages or other labour difficulties; technical and
processing problems; changes in gas composition; and failure to realize the anticipated benefits of recently completed
acquisitions.
The foregoing lists are not exhaustive. Additional information on these and other factors which could affect the
Corporation's operations or financial results are included in the Corporation's most recent Annual Information Form and in other
documents on file with the Canadian Securities regulatory authorities.
The above summary of assumptions and risks related to forward-looking statements in this news release is intended to provide
shareholders and potential investors with a more complete perspective on Tidewater's current and future operations and such
information may not be appropriate for other purposes. There is no representation by Tidewater that actual results achieved will
be the same in whole or in part as those referenced in the forward-looking statements and Tidewater does not undertake any
obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new
information, future events or otherwise, except as may be required by applicable securities law.
SOURCE Tidewater Midstream and Infrastructure Ltd.
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