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.