Tidewater Midstream & Infrastructure Ltd. · TSX:TWM
Tidewater Midstream & Infrastructure — Investor Presentation (July 2021)
27 slides from Tidewater Midstream & Infrastructure's investor presentation, July 2021
Slide 1: Investor Presentation
TIDEWATER MIDSTREAM & INFRASTRUCTURE LTD Pipestone Gas Storage Ram River Gas Plant Brazeau River Complex Prince George Refinery Investor Presentation July 2021 : TWM
Slide 2: Disclaimers
Disclaimers IMPORTANT – YOU MUST READ THE FOLLOWING BEFORE CONTINUING: The information contained in this document has been prepared by Tidewater Midstream and Infrastructure Ltd. ("Tidewater" or the "Corporation"). The information contained in this document (a) is provided as at the date hereof and
Slide 3: Disclaimers
Disclaimers Tidewater’s ability to generate sufficient cash flow from operations to meet its current and future obligations; distributable cash flow and net cash provided by operating activities consistent with expectations; Tidewater’s ability to access external sources of debt and equity capital o
Slide 4: Expanding the Value Chain
Expanding the Value Chain A Diversified Midstream Company with an Expanding Value Chain, Supported by Long Term Contracts 1 Acquire and Build High Quality, MONTNEY CORE AREA Strategically Located, Contracted TAYLOR Infrastructure 2 VALHALLA ~75% of Adj. EBITDA Derived • ALLIANCE (GAS) • PEMBINA (Cru
Slide 5: Tidewater Continues To Strengthen Customer and Contracts
Tidewater Continues To Strengthen Customer and Contracts 75% EBITDA from long term contracts and 50% of EBITDA from Investment Grade counterparties Highlights 10% ▪ Material cash flow to contribute to deleveraging 2021E Adj. EBITDA by efforts 50% Division 40% ▪ Internal marketing team optimizing com
Slide 6: Financial Overview
Financial Overview Annual Net Income, Adjusted EBITDA & YE Net Debt for TWM $ 250 $0.60 ~60% 6-Yr Adj. EBITDA ~27% 6-Yr Adj. EBITDA Net Income & Adj. EBITDA ($mm) $ 200 CAGR (2021E) per Share CAGR (2021E) $0.50 Adj. EBITDA ($/ share) $0.40 $ 150 $0.30 $ 100 $0.20 $ 50 $0.10 - (1) (2) - (1) (2) 2015A
Slide 7: Announced Renewable Initiatives
Announced Renewable Initiatives 7
Slide 8: Renewable Initiatives Will be Underpinned by 3 Products
Renewable Initiatives Will be Underpinned by 3 Products New Energy Transition Platform Will Cater to a Growing Global Demand Base Creation of a multi-faceted green energy Renewable Diesel Near-Term(1)(2) Long-Term(1)(2) platform with strong ESG attributes 13.4B Gallons 18.0B Gallons ✓ Deliver Carbon
Slide 9: Global Commodity Forecast
Global Commodity Forecast Market Fundamentals Supporting Emerging Renewable Verticals Renewable Diesel Hydrogen Renewable Natural Gas ▪ Advantages over biofuel and identical properties ▪ Involves the processing, storage and/or ▪ Involves projects that capture gas from to fossil fuel based diesel tra
Slide 10: Overview of Renewable Initiatives
Overview of Renewable Initiatives Creating a Canadian Energy Transition Leader With a Focus on Renewable Fuels On March 11, Tidewater formally announced various Asset Map 1 2 3 renewable energy initiatives currently in development Prince George Brazeau River Complex Ram River Clean Liquids Complex ▪
Slide 11: Hydrogen Driven Renewable Diesel (HDRD) Project Overview
Hydrogen Driven Renewable Diesel ("HDRD") Project Overview Project Overview Renewable diesel and renewable hydrogen complex co-located at PGR ▪ Stand-alone renewables complex focused on 100% renewables feedstock ▪ Nameplate capacity of 3.0 Mbbl/d utilizing multiple feedstocks ▪ Will include a pre-tr
Slide 12: Tidewater Becoming a Leader in Clean Fuels in Canada
Tidewater Becoming a Leader in Clean Fuels in Canada ▪ Tidewater is a large generator of low carbon fuel credits in Canada ▪ Tidewater blends ethanol and biodiesel at it’s Prince George Refinery today ▪ Canola co-processing project to be online in late 2021 and supported by BC government whereby wil
Slide 13: Tidewater Core Business
Tidewater Core Business 13
Slide 14: Integrated Value Chain
Integrated Value Chain Tidewater’s Integrated Natural Gas, NGL, and Crude Oil Value Chains Natural Gas Natural Gas Liquids Crude and Condensate ▪ >30,000 bbls/d of NGL processing ▪ 12,000 bbls/d refining capacity ▪ >1.0 Bcf/d processing capacity capabilities at BRC and Pipestone ▪ >1.0 mmbbl of refi
Slide 15: Prince George Refinery
Prince George Refinery Facility Highlights Highly profitable light oil refinery located in Prince George, B.C. ▪ One of two refineries in British Columbia; PGR was previously operated by Husky for over 50 years ▪ Top decile crack spreads globally with the premium diesel market in North America ▪ Cra
Slide 16: Prince George Refinery: Unlocking value since acquisition
Prince George Refinery Unlocking value since acquisition ▪ Tidewater effectively executed on debottlenecking of various processing units whereby PGR is consistently seeing record total throughput above 12,000 bbls/day and combined gasoline and diesel production of over 10,500 bbls/day ▪ Tidewater co
Slide 17: Montney Core Area | Overview
Montney Core Area | Overview Strategically Positioned to Offer Montney Customers Processing, Egress, and Storage ▪ Pipestone began processing sour gas on September 15, 2019 Montney Processing Facilities & Pipelines ▪ Throughput at or near full capacity as of April 2020 after delays in third party in
Slide 18: Montney Core Area | Pipestone Gas Plant
Montney Core Area | Pipestone Gas Plant Well Legend Well – Producing Wells Well – RR Last 12 Months Land Legend Advantage CNRL Ovintiv Cenovus Kelt Pipestone Energy Pipeline Legend Alliance NGTL Pembina Tidewater Pipestone Pipelines KAPS (To Be Constructed) 18
Slide 19: Deep Basin Core Area | Overview
Deep Basin Core Area | Overview Activity Continues to Increase Around Tidewater’s Deep Basin Assets ▪ Pioneer Pipeline physically connects Tidewater’s largest gas Deep Basin Processing Facilities & Pipelines processing complex (BRC) to a large new demand source in TransAlta’s Sundance and Keephills
Slide 20: Edmonton Core Area | Overview
Edmonton Core Area | Overview Edmonton Assets Provide Egress and Takeaway Options Edmonton Processing Facilities & Pipelines ▪ Tidewater has over 800 km of key pipelines and valuable right of ways at Edmonton, 450 acres of heavy industrial land at Edmonton/Fort Saskatchewan, and 3 key extraction pla
Slide 21: Corporate Responsibility & Sustainability
Corporate Responsibility & Sustainability Prioritizing Environmental, Social and Governance (ESG) in Canadian Energy ▪ Tidewater is committed to advancing a strong record of Environmental, Social and Governance performance. In February 2020 Tidewater established an ESG committee comprised of key per
Slide 22: Corporate Responsibility & Sustainability
Corporate Responsibility & Sustainability Taking Initiative in ESG in Canadian Energy ▪ Social ▪ Tidewater takes preventative measures to minimize the likelihood of incidents and operational downtime while safeguarding employees, the environment, and communities in which it operates (zero lost time
Slide 23: Appendix
Appendix 23
Slide 24: Tidewater Corporate Profile
Tidewater Corporate Profile Stock Symbol TSX: TWM Common Shares Outstanding ~339 million Insider Ownership (Fully Diluted) (1) ~30% Market Capitalization (2) $488 million Pro Forma Net Debt (3) $740 million Enterprise Value (4) $1,228 million Midstream Processing Capacity (gross/net) >1.66 Bcf/day /
Slide 25: Asset Dispositions
Asset Dispositions Pioneer and Other Assets Disposition Highlights ▪ Tidewater and TransAlta Corporation (“TransAlta”) announced a transaction to sell the Pioneer Pipeline to ATCO Gas and Pipelines Ltd. (“ATCO”) for total cash consideration of $255 million (the “Pioneer Transaction”) ▪ ATCO acquired
Slide 26: History of Successful Acquisitions & Development
History of Successful Acquisitions & Development Demonstrated Ability to Effectively Integrate and Enhance the Value of Acquired Assets A Jun. 2, 2015 ($180 mm) B May 5, 2016 ($11 mm) A Dec. 19, 2016 ($30 mm) B Oct. 2018 ($220 mm)(1) B Sep. 2019 ▪ 63% WI in Brazeau ▪ Infrastructure, pipeline right ▪
Slide 27: Analyst Coverage
Analyst Coverage Financial Institution Analyst Acumen Capital Trevor Reynolds ATB Capital Markets Nate Heywood Canaccord Genuity John Bereznicki CIBC Robert Catellier National Bank Financial Patrick Kenny RBC Capital Markets Robert Kwan Scotiabank Robert Hope Stifel Canada Cole Pereira 27
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