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.