(TSX: TWM)

CALGARY, AB, Aug. 15, 2024 /CNW/ - Tidewater Midstream and Infrastructure Ltd. ("Tidewater" or the "Corporation") (TSX: TWM) has filed its interim consolidated financial statements and Management Discussion and Analysis ("MD&A") for the three month period ended June 30, 2024.

SECOND QUARTER 2024 HIGHLIGHTS

Net Income attributable to shareholders increased by $1.7 million to a net loss of $4.7 million in the second quarter 2024, from a net loss of $6.4 million in the same period of 2023. The improvement was largely due to higher operating income, offset in part by unfavorable changes in the fair value of derivative contracts, and the absence of a deferred income tax recovery.Consolidated adjusted EBITDA(1)[1]was $45.3 million for the second quarter of 2024, compared to $29.3 million in the second quarter of 2023, proforma for Pipestone and Dimsdale, which were divested in December 2023.On June 4, 2024, Tidewater Midstream completed the issuance of $100 million convertible unsecured subordinated debentures (the "Convertible Debentures") at a price of $1,000 per debenture. The Convertible Debentures mature on June 30, 2029, and accrue interest at 8% per annum, payable semi-annually, on the last day of June and December, commencing December 31, 2024. Proceeds from the issuance were used to satisfy and discharge Tidewater Midstream's $75 million convertible debentures due September 30, 2024, with the remaining proceeds used for general corporate purposes.In early May 2024, Tidewater Midstream successfully completed the previously announced three-week turnaround at the Brazeau River Complex and Fractionation Facility (the "BRC") safely, on time and approximately $5.0 million below initial cost expectations.The Renewable Diesel & Renewable Hydrogen Complex (the "HDRD Complex") averaged daily throughput of approximately 2,925 bbl/d, representing a 98% utilization rate. Consistent with previous guidance, the HDRD Complex is expected to exceed an average full year utilization rate of 85%, representing an average daily throughput of 2,550 bbl/d.The Special Committees and Boards of Directors of both Tidewater Midstream and Tidewater Renewables Ltd. (the "Parties") have approved entering into a related party purchase agreement, whereby Tidewater Midstream will acquire from Tidewater Renewables Ltd. ("Tidewater Renewables") various operated assets at the Prince George Refinery (the "PGR") and the BRC, that were previously sold to Tidewater Renewables during its initial public offering. Tidewater Midstream will also acquire the canola co-processing and fluid catalytic cracking ("FCC") co-processing units. Consideration for this related party transaction will consist of an upfront cash payment by Tidewater Midstream of $129.7 million and a commitment to purchase a minimum of $80.7 million BC LCFS credits, as they are produced by Tidewater Renewables, over the next nine months, assuming the HDRD complex continues to operate at over 90% utilization (the "Proposed Transaction"). Tidewater Midstream expects to finance the transaction through operating cash flow, a $25.0 million increase in its revolving credit facility and a $150.0 million term loan. Tidewater Renewables will use the proceeds to repay amounts outstanding on its Senior Credit Facility. This transaction is expected to close during the third quarter of 2024, subject to completion of documentation, financing and regulatory approval.Given the uncertainty surrounding the BC LCFS credit market, the Corporation is revising its previously issued 2024 consolidated adjusted EBITDA(1)[2]guidance to $130 million to $150 million (previously $150 million to $170 million), assuming completion of the Proposed Transaction during the third quarter of 2024 and crack spreads averaging in the $80 to $90/bbl range. Full-year 2024 consolidated maintenance capital is expected to be in the range of $35 million to $40 million, consistent with previous guidance.