The following is a summary of the Tidewater Midstream and Infrastructure Ltd. (TWMIF) Q4 2023 Earnings Call Transcript:
Financial Performance:
Tidewater Midstream reported year-end consolidated results were impacted by lower gasoline and diesel sales volumes due to the turnaround during Q2, weaker commodity prices, and higher maintenance costs.
They took a non-cash impairment charge in Q4 while reevaluating the carrying values of their assets. Aim to reduce G&A expenditures and operation and maintenance program costs by $15 million to $20 million which will contribute to cash flow.
Reported consolidated adjusted FY '23 EBITDA of $162.9 million, decreased compared to last year's EBITDA of $249.8 million.
Faced a downturn in Q4 adjusted EBITDA, which was $21.4 million compared to $60.4 million in Q4 2022 due to lower demand for refined products influenced by unusually warm weather and other factors.
Used proceeds from the AltaGas transaction and new term loan facility to repay its $550 million credit facility and $53.3 million of working capital liabilities.
Business Progress:
After the sale of Pipestone and Dimsdale, now focusing on maximizing ROI and enhancing focus, urgency, and accountability across the organization.
Midstream operations are now focused within the Deep Basin presenting opportunities to consolidate volumes at core facilities and capitalize on increased producer activity.
Reports successful operation of HDRD Complex in Prince George at its design capacity, with expectations to operate at approximately 65% of design capacity during the first quarter of 2024.
Entered into agreement with BC government to provide front-end engineering and design work for a sustainable aviation fuel refinery and aims to have a bankable fee study completed in the first half of 2025.
Examining options for its convertible debentures due in the third quarter of 2023, suggesting an in-depth approach in evaluating its business.
More details: TIDEWATER MIDSTREAM & INFRASTR LTD IR
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