Tidewater Midstream and Infrastructure (TWM) investor relations material

Executive summary

• Fourth quarter 2025 saw operational challenges, including a major turnaround and equipment failure at the HDRD Complex, resulting in a consolidated net loss of CAD 30 million and impacting throughput and financial results.

• Full-year 2025 consolidated net loss was $112.2 million, driven by lower operating income and absence of impairment reversals, partially offset by favorable derivative contract changes and lower financing costs.

• Regulatory support increased with a new CAD 370 million Biofuels Production Incentive and amendments to Clean Fuel Regulations and BC's Low Carbon Fuels Act, benefiting renewable operations.

• Strategic initiatives included new long-term gas handling agreements, asset sales such as the Sylvan Lake facility, and integration of the Western Pipeline system.

• Appointed a new CFO and amended senior credit facility, extending maturity and revising covenants.

Financial highlights

• Q4 2025 consolidated adjusted EBITDA was $3.0 million, down from $20.0 million in Q4 2024; full-year 2025 adjusted EBITDA was $31.5 million, down from $134.3 million in 2024.

• Tidewater Renewables reported a net loss of CAD 13.8 million and adjusted EBITDA of CAD -3.8 million for Q4 2025, both down year-over-year due to operational disruptions.

• Q4 2025 distributable cash flow attributable to shareholders was $(15.3) million; full-year 2025 was $(59.7) million.

• Net debt at year-end 2025 was $579.5 million, nearly flat year-over-year.

• Maintenance capital spending for 2025 was $18.9 million, within guidance.

Outlook and guidance

• 2026 consolidated adjusted EBITDA is guided at $150–$170 million, a 375%–440% increase over 2025, driven by improved utilization, operational efficiencies, and regulatory incentives.

• Consolidated capital expenditures for 2026 are expected at $20–$25 million, focused on maintenance and reliability, with most cash flow directed to debt reduction.

• HDRD Complex and Prince George Refinery expected to benefit from higher utilization, market prices, and regulatory incentives.

• Tidewater Renewables expects $80–$90 million adjusted EBITDA in 2026, with 150–170 million litres of renewable diesel production.

• Asset sales and hedging strategies are expected to further strengthen the balance sheet.