Tidewater Midstream and Infrastructure Ltd. (“Tidewater” or the “Corporation“) (TSX: TWM) is pleased to announce that, with its partner TransAlta Corporation (“TransAlta“), it has entered into a definitive Purchase and Sale Agreement with respect to the previously announced sale of the Pioneer Pipeline to NOVA Gas Transmission Ltd., a wholly-owned subsidiary of TC Energy, for total cash consideration of $255.0 million (the “Pioneer Transaction“). The Pioneer Pipeline is a 20 inch, 120km pipeline connecting Tidewater’s Brazeau River Complex to TransAlta’s generating units at Keephills along with an 11km lateral to Sundance. Throughput from the Pioneer Pipeline is approximately 130MMcf/d of natural gas. Proceeds of the transaction will be split equally between Tidewater and TransAlta pursuant to their existing Pioneer Pipeline partnership.
In addition, Tidewater and TransAlta have agreed to terms whereby, upon closing of the Pioneer Transaction, TransAlta will pay Tidewater $10.5 million for certain ancillary assets not included in the Pioneer Transaction, and for completion of some budgeted restoration work along the Pioneer Pipeline route that was delayed until 2020 due to weather.
Closing of the Pioneer Transaction is subject to certain customary conditions for a transaction of this nature including regulatory approval.
Tidewater will use the proceeds from the disposition to accelerate its deleveraging plan and repay debt under its credit facilities.
Second Quarter 2020 Dividend
Tidewater is pleased to announce that its Board of Directors has declared a dividend for the second quarter 2020 of $0.01 per common share payable on or about July 31, 2020 to shareholders of record on June 30, 2020. The ex-dividend date is June 29, 2020. This dividend is an eligible dividend for the purpose of the Income Tax Act (Canada).
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, natural gas liquids and crude oil 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: refineries, gas plants, pipelines, railcars, trucks, export terminals and storage facilities.