CALGARY, Alberta, Dec. 21, 2017 (GLOBE NEWSWIRE) —
Closing of Deep Basin and Montney Acquisition
Tidewater Midstream and Infrastructure Ltd. (“Tidewater” or the “Corporation”) (TSX:TWM) is pleased to announce that it has completed its previously announced acquisition of certain assets in the Deep Basin and Montney region for net cash consideration of $34 million. Together with Tidewater’s previously announced acquisition of a pipeline in the Wapiti region, Tidewater’s key pieces of infrastructure acquired under these two transactions include: an 85% working interest in a rail connected 600 MMcf/d gas plant; a 25% operated working interest in 400 MMcf/d and 200 MMcf/d dehydration and compression facilities at Stolberg and Brazeau, respectively; and, an operated working interest in greater than 600 km of pipelines running from Narraway and Wapiti and interconnecting to Ansell, Brazeau, Stolberg and Ferrier, providing connectivity between Tidewater’s core Montney and Deep Basin areas. An immaterial portion of the Deep Basin and Montney assets is being held in escrow pending resolution of a right of first refusal challenge.
Tidewater is pleased to announce that its 50 MMcf/d expansion at the Brazeau River Complex (“BRC”) and the construction of strategic pipelines from the BRC were completed on-time and on-budget at a combined capital cost of approximately $25 million. The pipelines provide access to a new core area for the BRC which is supported by a 55,000 acre reserve dedication and a three to four horizontal well drilling commitment.
Run-Rate Adjusted EBITDA Guidance
Tidewater remains on-time and on-budget on its previously announced 2017 capital program and the EBITDA generated from these capital projects is expected to be in-line with previous guidance. Tidewater reaffirms that it plans to exit 2017 with annualized run-rate Adjusted EBITDA of approximately $80 million.
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.