Tidewater Midstream’s Earnings Call: Strategic Gains Amid Challenges

Tidewater Midstream And Infrastructure ((TSE:TWM)) has held its Q3 earnings call. Read on for the main highlights of the call.

The recent earnings call for Tidewater Midstream and Infrastructure painted a picture of mixed sentiments. While the company celebrated strategic milestones like the acquisition of the Western Pipeline and increased renewable diesel offtakes, these achievements were overshadowed by financial losses, extended operational outages, and challenges in the natural gas markets. The overall sentiment was balanced, reflecting both optimism from strategic advancements and caution due to financial setbacks.

Successful Acquisition of Western Pipeline

Tidewater successfully closed the acquisition of the Western Pipeline on September 25, 2025. This strategic move is expected to bring significant annual cost savings ranging from $10 million to $15 million, marking a positive step towards enhancing the company’s infrastructure capabilities.

Biofuels Production Incentive Program

The Canadian government’s announcement of a $370 million biofuels production incentive program is set to benefit Tidewater Renewables significantly. This initiative, effective from January 2026 through December 2027, aligns with Tidewater’s strategic focus on renewable energy, promising substantial support for its operations.

High Contracted Offtakes for Renewable Diesel

Tidewater Renewables has successfully increased its contracted offtakes to cover 100% of its forecasted renewable diesel production for 2025 and over 80% for 2026. This achievement underscores the company’s commitment to securing stable revenue streams through renewable energy.

Optimized Turnaround Schedules

In a bid to maximize production during the incentive program period, Tidewater Renewables has optimized its turnaround schedules. By extending catalyst life to approximately 2.5 years, the company has planned the next turnaround for 2028, ensuring uninterrupted operations during critical periods.

Increased Throughput in Midstream Operations

The BRC gas processing facility reported an increase in throughput from 95 million cubic feet per day in Q2 2025 to 124 million cubic feet per day in Q3 2025. This improvement highlights the company’s operational efficiency and capacity to handle increased demand.

Net Loss for Tidewater Renewables

Despite strategic advancements, Tidewater Renewables reported a net loss of $1 million for Q3 2025. This loss was primarily due to a smaller unrealized gain on soybean oil derivative contracts and a loss on warrant liability revaluation, reflecting the financial challenges faced by the company.

Extended Turnaround and Unplanned Outage

Operational challenges were evident as the HDRD complex experienced an extended turnaround by two weeks and a two-week unplanned outage in October due to equipment anomalies. These disruptions highlight the operational risks that can impact production timelines.

Continued Low Natural Gas Prices

The Ram River gas plant remains curtailed due to record low natural gas prices during Q3 2025. This situation has posed significant challenges for Tidewater, affecting its ability to capitalize on its gas processing capabilities.

Lower Midstream Margins

Tidewater Midstream faced lower margins due to historically low AECO pricing and higher corporate costs, contributing to a consolidated net loss of $34.1 million in Q3 2025. These financial pressures underscore the volatility in the energy markets and its impact on the company’s bottom line.

Forward-Looking Guidance

Looking ahead, Tidewater Renewables expects to maintain its momentum with 100% contracted offtakes for renewable diesel production for the remainder of 2025 and over 80% for 2026. The acquisition of the Western Pipeline and the agreement with the government of British Columbia to secure BC-LCFS credits are strategic initiatives aimed at bolstering the company’s financial health. Additionally, the Prince George Refinery’s throughput increase and expected margin improvements due to stronger crack spreads signal a positive outlook for future operations.

In conclusion, Tidewater Midstream and Infrastructure’s earnings call reflects a balanced sentiment, with strategic achievements countered by financial and operational challenges. The company’s focus on renewable energy and strategic acquisitions positions it well for future growth, despite the current hurdles. Investors and stakeholders will be keenly watching how these developments unfold in the coming quarters.