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Classified in: Business
Subject: FINANCING AGREEMENTS

Tidewater Midstream and Infrastructure Ltd. Increases Credit Facility and Provides Operational Update


Tidewater Midstream and Infrastructure Ltd. Increases Credit Facility and Provides Operational Update

CALGARY, Alberta, Oct. 23, 2017 (GLOBE NEWSWIRE) --

THIS RELEASE IS INTENDED FOR DISTRIBUTION OUTSIDE THE UNITED STATES ONLY AND IS NOT AUTHORIZED FOR DISTRIBUTION WITHIN THE UNITED STATES

Credit Facility Increase

Tidewater Midstream and Infrastructure Ltd. ("Tidewater" or the "Corporation") (TSX-V:TWM) is pleased to announce that it has obtained conditional approval from its banking syndicate to increase its credit facility from $180 million to $250 million, conditional upon closing the previously announced Deep Basin and Montney acquisition.

Wapiti ROFR Exercise

Tidewater is also pleased to announce that right of first refusals (?ROFRs?) have been exercised by a third party on the previously announced $20 million Wapiti Pipeline acquisition. Upon exercise of the ROFRs, the third party acquires interests in a lateral pipeline and the related suspended Leland gas processing facility for total consideration of $17 million, while Tidewater retains an approximate 50% working interest in 130 km of 12-inch pipeline, which is primarily operated by Tidewater. As a result, the net purchase price of the Wapiti Pipeline by Tidewater is $3 million. There is no expected impact to Tidewater's EBITDA forecast as a result of the ROFRs being exercised. 

Gas Storage Update

Tidewater is also pleased to announce that over the past 30 days it has commenced injections into its proven natural gas storage reservoir at Brazeau and is currently injecting approximately 25 MMcf/day and exceeding expectations. Tidewater is also injecting approximately 13 MMcf/day of natural gas at Pipestone through one wellbore with a plan to commence injections into a second wellbore by the end of the year. With the commercial support around natural gas storage by investment grade counterparties for long term agreements, Tidewater plans to deploy an additional $5 million in capital into natural gas storage in 2017, which includes related facility expansions and liquids recovery enhancements. Tidewater continues to progress toward a final investment decision of both Phase II of its Pipestone natural gas egress hub and its Pipestone sour deep cut gas plant.

As a result of the above, Tidewater is revising its 2017 exit net debt guidance of $120 million down to $110 million, while its 2017 exit run-rate Adjusted EBITDA guidance of $80 million remains unchanged.

The Corporation's Business

Tidewater is traded on the TSX Venture Exchange under the symbol ?TWM.V?. 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.

Cautionary Notes

Advisory Regarding Forward-Looking Statements

In the interest of providing Tidewater's shareholders and potential investors with information regarding Tidewater, including management's assessment of Tidewater's future plans and operations, certain statements in this press release are "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation (collectively, "forward-looking statements"). In some cases, forward-looking statements can be identified by terminology such as "anticipate", "believe", "continue", "could", "estimate", "expect", "forecast", "intend", "may", "objective", "ongoing", "outlook", "potential", "project", "plan", "should", "target", "would", "will" or similar words suggesting future outcomes, events or performance. The forward-looking statements contained in this press release speak only as of the date thereof and are expressly qualified by this cautionary statement.

Specifically, this press release contains forward-looking statements relating to but not limited to: anticipated amendments to our credit facility; projected closing of the Deep Basin and Montney acquisitions; plans and strategies with respect to gas injection including deliverability and solidifying counterparty agreements; projected debt levels and projected run-rate Adjusted EBITDA. These forward-looking statements are based on certain key assumptions regarding, our ability to execute on our business plan, our operating activities and current industry conditions, laws and regulations continuing in effect (or, where changes are proposed, such changes being adopted as anticipated). Readers are cautioned that such assumptions, although considered reasonable by Tidewater at the time of preparation, may prove to be incorrect.

Actual results achieved will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors.

The above summary of assumptions and risks related to forward-looking statements in this press release has been provided in order to provide shareholders and potential investors with a more complete perspective on Tidewater's current and future operations and such information may not be appropriate for other purposes. There is no representation by Tidewater that actual results achieved will be the same in whole or in part as those referenced in the forward-looking statements and Tidewater does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities law.

Non-GAAP measures

In this document "Adjusted EBITDA? (hereinafter the ?Non-GAAP measures?) is used which does not have a standardized meaning as prescribed by International Financial Reporting Standards.

Adjusted EBITDA is calculated as income or loss before finance costs, taxes, depreciation and amortization, adjusted for unrealized gains/losses, non-cash items, transaction costs and other items considered non-recurring in nature.

Non-GAAP measures should not be considered in isolation or construed as alternatives to their most directly comparable measure calculated in accordance with GAAP, or other measures of financial performance calculated in accordance with GAAP. The Non-GAAP measures are unlikely to be comparable to similar measures presented by other issuers.

TSX Venture Exchange

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Tidewater Midstream & Infrastructure Ltd.
Joel MacLeod
Chairman, President and CEO
587.475.0210
[email protected] 


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