Tidewater Midstream & Infrastructure Ltd. · TSX:TWM
Tidewater Midstream & Infrastructure — Investor Presentation (January 2023)
26 slides from Tidewater Midstream & Infrastructure's investor presentation, January 2023
Slide 1: Corporate Presentation – January 2023
TSX: TWM Corporate Presentation – January 2023
Slide 2: Disclaimers
DISCLAIMERS CAUTIONARY NOTE: This presentation includes forward-looking statements or information (collectively referred to herein as “forward looking statements”) within the meaning of applicable securities legislation. The information contained in this document has been prepared by Tidewater Midst
Slide 3: Disclaimers
DISCLAIMERS CAUTIONARY NOTE REGARDING FUTURE-ORIENTED FINANCIAL INFORMATION: To the extent any forward-looking statement in this presentation constitutes “future-oriented financial information” or “financial outlooks” within the meaning of applicable securities legislation, such information is being
Slide 4: Business Overview
ABOUT TIDEWATER MIDSTREAM Business Overview Tidewater is a diversified midstream and infrastructure company with an integrated value chain across the North American gas processing, natural gas liquids, petroleum refining, and renewables markets MIDSTREAM DOWNSTREAM RENEWABLES Tidewater’s corporate s
Slide 5: Investment Highlights
MONTNEY ABOUT TIDEWATER MIDSTREAM CORE AREA BRITISH A L B E RTA Investment Highlights COLUMBIA Highly Integrated Energy Value Chain, Supported Pembina Western Pipeline System Taylor By Long-term Contracts (Crude) VALHALLA OIL BATTERY • Alliance (Natural Gas) • Pembina (Crude, Condensate, NGL’s) Valh
Slide 6: Corporate Responsibility & Sustainability
ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) Corporate Responsibility & Sustainability Through its majority ownership in Tidewater Renewables, a renewable fuels company, Tidewater Midstream is taking action to reduce emissions and enhance sustainability ENVIRONMENTAL SOCIAL GOVERNANCE Emissions: Dive
Slide 7: Corporate Profile
CAPITALIZATION AND STRUCTURE Corporate Profile Common Shares 423 million Growing Adjusted EBITDA Since Inception Insider Ownership (1) ~25% (Fully Diluted) $275 $0.70 Market Capitalization (2) $437 million Net Debt (3) $250 >65% Average Annual Adjusted EBITDA Growth ~$523 million / ~$647 million $0.
Slide 8: Increasing Profitability, Reducing Leverage
FINANCIAL OVERVIEW Growing Profitability Increasing (1) (4) (4) (4)(5) $ 300 Net Income Adj. TWM EBITDA Adj. LCFS EBITDA Adj. EBITDA per share $0.80 Adj. EBITDA ($/ share) $0.70 Profitability, $ 200 $0.60 Reducing $0.50 $0.40 Leverage $0.30 $ 100 $0.20 $0.10 - - Continued Earnings Growth 2015A 2016A
Slide 9: Tidewater Valuation Relative To Peers
COMPARATIVE VALUATION Tidewater Valuation Relative To Peers 3-yr CAGR '22E Dividend P/E (x) EV / EBITDA (x) P/AAFO (x) AFFO (FCF) Yield Net Debt / EBITDA (x) 2020A-2023E Payout Ratios Current Divi. EBITD Priced as of 12/16/2022 Ticker Exch. 2021A 2022E 2023E 2021A 2022E 2023E 2021A 2022E 2023E 2021A
Slide 10: Contract Profile
COMMERCIAL OVERVIEW Contract Profile Diversified business with strong contract profile Consolidated 2022E Adjusted EBITDA by: Business Unit Contract Profile (excluding LCFS) (1) Material cash flow to >80% of projected total contribute to deleveraging efforts ~40% ~40% 2022E Adjusted ~40% ~40% Midstr
Slide 11: Positioned for Success
MONTNEY MIDSTREAM OPERATIONS CORE AREA BRITISH A L B E RTA Positioned for Success COLUMBIA Facilities and infrastructure supporting Canada’s most Pembina Western Taylor Pipeline System profitable and active resource developments (Crude) VALHALLA OIL BATTERY • Alliance (Natural Gas) • Pembina (Crude,
Slide 12: Midstream: Montney and Deep Basin Core Assets
MONTNEY MIDSTREAM OPERATIONS CORE AREA BRITISH A L B E RTA Midstream: COLUMBIA Montney and Deep Pembina Western Basin Core Assets Taylor Pipeline System (Crude) VALHALLA OIL BATTERY • Alliance (Natural Gas) • Pembina (Crude, Condensate, NGL’s) Valhalla Midstream assets strategically positioned to fa
Slide 13: Downstream: Core Assets
DOWNSTREAM OPERATIONS BRITISH A L B E RTA Downstream: COLUMBIA Core Assets Pembina Western Pipeline System (Crude) Taylor VALHALLA OIL Downstream assets diversify commodity exposure BATTERY • Alliance (Natural Gas) • Pembina (Crude, Condensate, NGL’s) providing highly profitable refined products to
Slide 14: Renewables: Investing in the Energy Transition
TIDEWATER RENEWABLES (TSX: LCFS) Renewables: Substantial Near and Long Term Forecasted Demand for Renewable Fuels Investing in the Near-Term(1),(2) Long-Term(1),(2) Energy Transition RENEWABLE 13.4B Gallons 18.0B Gallons DIESEL TWM is a majority shareholder (69%) of Tidewater Renewables (TSX:LCFS),
Slide 15: Renewables: Overview
TIDEWATER RENEWABLES (TSX: LCFS) BRITISH A L B E RTA Renewables: COLUMBIA Overview Pembina Western Pipeline System (Crude) Taylor VALHALLA OIL BATTERY • Alliance (Natural Gas) • Pembina (Crude, Condensate, NGL’s) Tidewater Renewables (TSX: LCFS) is focused Valhalla on the production of renewable die
Slide 16: TSX: TWM – For more information
TSX : TWM For more information Scott Bauman Director, Capital Markets [email protected]
Slide 17: Appendix
TSX - TWM Appendix Key Assets: In-Depth Overview & KPIs Prince George Refinery ……………………… pg 18 - 19 Pipestone Gas Plant………………………….. pg 20 Brazeau River Complex……………………… pg 21 Tidewater Renewables……………………….. pg 22 - 23 Capture Area Overview …………………. pg 24 Debt Maturity Profile ……………………… pg 25 Develop
Slide 18: Prince George Refinery: Overview
PRINCE GEORGE REFINERY (PGR) Prince George Refinery: Overview Feedstock: Yield: Nameplate Capacity: Storage Capacity: ~85% BC Light Oil >45% Diesel 12.0 mbbl/d >1.0 mmbbl ~15% Boundary Lake >40% Gasoline Asset Description: Fractionation, hydrotreating, Pipeline, rail and truck Top quartile process u
Slide 19: Refining Margins
PRINCE GEORGE REFINERY (PGR) Refining 2-1-1 crack spreads above C$90/bbl and averaged Ability to switch to a higher diesel yield in Q4, allowing Margins >$95/bbl during Q3 2022 Tidewater to meet higher Winter diesel demand and pricing Prince George crack spreads resilient through Covid Tidewater has
Slide 20: Pipestone Gas Plant
MIDSTREAM Pipestone Gas Plant Highly utilized, highly contracted 110 mmcf/d sour gas plant located in the heart of the Montney Operational Highlights Consistent throughput since April 2020, with utilization in excess of 90% (excluding turnaround) in Q3/22 Connected to Pembina’s Peace Pipeline for C2
Slide 21: Brazeau River Complex
MIDSTREAM Brazeau River Complex Strategically located gas processing and fractionation asset in the established and growing Deep Basin Tidewater acquired the Brazeau River Complex in June 2016 Core asset offering full suite of services to producers including 180 mmcf/d of deep cut natural gas proces
Slide 22: Tidewater Renewables
RENEWABLES Tidewater Renewables Entity formed in 2021 to create value through Ownership Structure the development of and investment in profitable Tidewater Renewables Ltd. renewable fuels Benefits to Tidewater Midstream 69% Tidewater Tidewater Midstream retains significant renewables upside through
Slide 23: Tidewater Renewables
RENEWABLES Tidewater Renewables Indicative Sum-of-the-Parts Valuation(1)(2)(3)(4) Indicative Sum-of-the-Parts Valuation(1)(2)(3)(4) $2.17 52 Week High/Low Midstream Tidewater Midstream maintains ownership of its three TWM Share Price Value at 6.0x Implied TWM Value core assets: Prince George Refiner
Slide 24: Capture Area Overview
GEOGRAPHIC OVERVIEW Capture Area Overview Break-even Price – Oil (c$/bbl)(3) Strategically located extraction and processing facilities Deep Basin Liquids Rich (Gas) $19.89 Canada’s world class Montney Resource Play Montney - Progress-Gordon date Area 1-Turbidite (Oil) $20.54 Montney - Inga-Fireweed
Slide 25: Debt Maturity Profile
BALANCE SHEET Debt Maturity Profile Tidewater Midstream Deconsolidated Debt Profile Prior to Refinancing $600 Total Debt / Trailing Twelve Month EBITDA of x3.3 $616 $500 Senior Credit Facility Capacity of $420MM Tidewater Midstream's Refinancing $75 (C$/MM) $400 of Existing Second Lien Term Load $39
Slide 26: History of Successful Acquisitions & Development
DEVELOPMENT TIMELINE History of Successful Acquisitions & Development June 2, 2015 May 5, 2016 December 19, 2016 December 6, 2017 July 23,2019 October 4, 2019 $180mm $11mm $30mm $195mm $30mm $215mm 63% working interest in Infrastructure, pipeline Remaining 37% working interest Agreement with TransAl
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