CALGARY, Oct. 30, 2018 /CNW/ -
Regulatory approval for TransAlta intra-Alberta pipeline
Tidewater Midstream and Infrastructure Ltd. ("Tidewater"
or the "Corporation") announces today that it received
approval from the Alberta Energy Regulator to construct and operate
the previously announced 120 km natural gas pipeline connecting
Tidewater's Brazeau River Complex to TransAlta Corporation's
("TransAlta") generating units at Sundance and Keephills (the "Pipeline"). The
Pipeline will have initial capacity of 130 MMcf/d which may be
expanded to approximately 440 MMcf/d and is supported by a 15 year
take or pay commitment from TransAlta. Tidewater expects to
commence construction within the next three weeks to meet a
projected in-service date in Q3/Q4 of 2019.
"Tidewater is well positioned to commence constructing this very
important piece of infrastructure that will provide a source of
egress to many Alberta gas
producers," said Reed McDonnell,
Vice President, Acquisitions and JV of Tidewater. "We are very
excited to move forward with our long-term arrangement with
TransAlta."
Update to Q3 guidance
Due to reduced customer volume in Q3, 2018, Tidewater expects
third quarter Adjusted EBITDA to be approximately 95% of expected
Adjusted EBITDA of $18.5
million. Despite the low gas, Natural Gas Liquids and
condensate pricing realized in Q3, 2018, Tidewater's mix of
customers and contracts maintained Adjusted EBITDA to within 5% of
expectations.
Crude oil infrastructure update
Tidewater has executed a total of six crude oil infrastructure
agreements to date to deliver crude oil to six end markets
including direct to three refiners. Tidewater now expects the
impact of these agreements to be greater than 10% of incremental
annualized Adjusted EBITDA in 2019 compared to Tidewater's previous
forecast of 5%-10% of incremental annualized Adjusted EBITDA in
2019.
Tidewater announces release date for Q3 2018 results and
earnings call
Tidewater will release its third quarter 2018 results on
Tuesday, November 13th,
before the market opens. In conjunction with the earnings release,
investors will have the opportunity to listen to Tidewater senior
management review its third quarter 2018 results via conference
call on Wednesday, November
14th at 9:30 am
MST.
To access the conference call by telephone, dial 647-427-7450
(local / international participant dial in) or 1-888-231-8191
(North American toll free participant dial in). A question and
answer session for analysts will follow management's
presentation.
A live audio webcast of the conference call will be available by
following this link:
https://event.on24.com/wcc/r/1870668/85ED4619FEA6FCADD1BBD71C4757F867
and will also be archived for 90 days.
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 intra-Alberta
pipeline and projected in-service date of such pipeline;
projections regarding third quarter 2018 Adjusted EBITDA; and
projections regarding the impact of crude oil infrastructure
agreements on annualized Adjusted EBITDA.
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 obtain and retain qualified
staff and equipment in a timely and cost-effective manner; receipt
of regulatory approvals; 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 amount of future liabilities relating to
lawsuits and environmental incidents and the availability of
coverage under the Corporation's insurance policies; and
anticipated timelines and budgets being met in respect of the
Corporation's projects and operations.
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; a failure to conclude definitive
agreements with counterparties that contain terms and conditions
consistent with executed letters of intent and term sheets;
activities of producers and customers, 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; risks and liabilities
arising from derailments; 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.
Any financial outlook or future-oriented financial information,
as defined by applicable securities legislation, has been approved
by management of Tidewater as of October
29, 2018. Financial outlook or future-oriented
financial information is provided for the purpose of providing
information about management's current expectations and goals
relating to the future of Tidewater. Readers are cautioned
that reliance on such information may not be appropriate for other
purposes. The purpose of the future oriented financial information
contained herein including but not limited to future periods, of
Adjusted EBITDA is to assist investors, shareholders, and others in
understanding certain financial metrics relating to expected future
financial results for the purpose of evaluating the performance of
Tidewater's business for future periods. This information may
not be appropriate for other purposes. The results and
conclusions of these assessments, along with the known and unknown
risks, uncertainties and other factors referred to above, could
impact Tidewater's estimates and the information related to such
future periods contained herein and any such impact could be
material.
Non-GAAP Financial Measures
This news release refers to "Adjusted EBITDA", which does not
have any standardized meaning prescribed by generally accepted
accounting principles in Canada
("GAAP"). Adjusted EBITDA is calculated as income or loss
before interest, taxes, depreciation and amortization, incentive
compensation, unrealized gains/losses, non-cash items, transaction
costs and other items considered non-recurring in nature.
Annualized Adjusted EBITDA is calculated as the Corporation's
Adjusted EBITDA over a 12-month period.
Tidewater Management utilizes Adjusted EBITDA to set objectives
and as a key performance indicator of the Corporation's success. In
addition to its use by Management, Tidewater also believes Adjusted
EBITDA is a measure widely used by securities analysts, investors
and others to evaluate the financial performance of the Corporation
and other companies in the midstream industry. Investors should be
cautioned that Adjusted EBITDA should not be construed as
alternatives to earnings, cash flow from operating activities or
other measures of financial results determined in accordance with
GAAP as an indicator of the Corporation's performance and may not
be comparable to companies with similar calculations.
SOURCE Tidewater Midstream and Infrastructure Ltd.