Tidewater Midstream and Infrastructure (TWM) Q4 2024 earnings summary

Executive summary

• Achieved another safe and reliable operational quarter, with consistent performance at downstream and midstream facilities despite scheduled maintenance and third-party pipeline outages impacting throughput at PGR and HDRD facilities.

• Transitioned to in-house marketing of all refined products after the expiration of the Cenovus offtake agreement, expanding the customer base and optimizing logistics.

• Completed several non-core asset sales and financings, raising over CAD 40 million from asset sales and CAD 290 million from financings, with proceeds used for deleveraging.

• Reported a Q4 2024 net loss of $3.4M, a significant improvement from a $12.7M loss in Q4 2023, mainly due to unrealized gains on derivatives and joint venture income, partially offset by higher financing costs and lower tax recoveries.

• Full-year 2024 net loss was $357.8M, up from $41.0M in 2023, driven by asset sale losses, realized derivative losses, and higher financing costs, partially offset by unrealized derivative gains and higher operating income.

Financial highlights

• Q4 2024 revenue was $76.4M, up from $40.4M in Q4 2023; full-year 2024 revenue was $426.5M, up from $97.7M in 2023.

• Q4 2024 net loss attributable to shareholders was CAD 3.3 million, a significant improvement from CAD 331.8 million in Q4 2023, mainly due to reversal of prior non-cash impairment charges.

• Consolidated adjusted EBITDA was CAD 20 million in Q4 2024, compared to CAD 21.4 million in Q4 2023, reflecting lower equity investment EBITDA and reduced general administrative costs.

• Q4 2024 distributable cash flow was $(7.9)M, down from $2.1M in Q4 2023; full-year distributable cash flow was $29.7M, up from $2.7M in 2023.

• Net debt at year-end 2024 was $195.9M, down from $346.6M at year-end 2023.

Outlook and guidance

• 2025 consolidated capital maintenance program expected to be CAD 15–20 million, primarily maintenance with minimal growth CapEx, reflecting the absence of a major turnaround.

• Management anticipates positive impacts from BC's increase in renewable diesel requirements and Canadian production mandates effective April 2025.

• Provisional duties on U.S. renewable diesel imports expected by June 2025, with final duties possible by September 2025, supporting market stability.

• Expects natural gas prices to recover in 2025, supporting the resumption of gas processing at Ram River as producer activity restarts.

• Final investment decision on the proposed 6,500 bbl/d SAF project expected in H2 2025.