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Tidewater Midstream and Infrastructure (TSE:TWM)
TSX:TWM

Tidewater Midstream and Infrastructure (TWM) AI Stock Analysis

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Tidewater Midstream and Infrastructure

(TSX:TWM)

Rating:47Neutral
Price Target:
C$0.00
▼(-100.00%Downside)
The overall stock score is primarily impacted by the company's financial performance challenges, with declining revenues, profitability, and cash flow issues. Technical analysis and earnings call insights provide some positive developments, but valuation remains weak due to a negative P/E ratio and no dividend yield.

Tidewater Midstream and Infrastructure (TWM) vs. iShares MSCI Canada ETF (EWC)

Tidewater Midstream and Infrastructure Business Overview & Revenue Model

Company DescriptionTidewater Midstream and Infrastructure Ltd. is a Canadian energy infrastructure company engaged in the development and operation of midstream assets. The company operates within the energy and utilities sectors, providing essential services such as natural gas processing, transportation, and storage. It focuses on connecting upstream oil and gas production to downstream markets, offering a range of services including fractionation, liquids handling, and marketing of natural gas liquids (NGLs).
How the Company Makes MoneyTidewater Midstream and Infrastructure generates revenue primarily through the provision of midstream services, which include gathering, processing, and transportation of natural gas and NGLs. The company earns income by charging fees for processing natural gas and delivering it through its pipeline network. Additional revenue streams include storage services for natural gas and other hydrocarbons, as well as marketing and sale of NGLs. Tidewater's strategic partnerships and contracts with oil and gas producers are crucial to its earnings, providing long-term, stable cash flows. The company also benefits from its ability to capitalize on commodity price differentials and market demand for its services.

Tidewater Midstream and Infrastructure Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q1-2025)
|
% Change Since: -21.43%|
Next Earnings Date:Aug 14, 2025
Earnings Call Sentiment Negative
The overall sentiment of the call reflects a challenging quarter with significant financial losses and operational difficulties, such as reduced throughput and lower margins. However, there are positive developments, such as strategic acquisitions and improved margins in the renewable diesel segment. Despite the challenges, the company is actively working on improving liquidity and cost structures.
Q1-2025 Updates
Positive Updates
Acquisition of Western Pipeline
Tidewater announced an agreement to purchase the North segment of Pembina's Western Pipeline, expected to provide reliable and lower-cost feedstock for the Prince George Refinery.
Increased Margins for Renewable Diesel
Improvement in margins due to Canadian renewable blend requirements, BC LCFS regulations, and increased California LCFS and D4 RIN prices.
Non-Core Asset Sales and Debt Repayment
Completed the sale of the BRC Roadway network for $24 million, using $22.5 million to repay debt, and progressing with further non-core asset sales.
Negative Updates
Consolidated Net Loss
Reported a net loss attributable to shareholders of $31.8 million, an increase from a $11.3 million net loss in the same period of 2024.
Negative EBITDA
Consolidated adjusted EBITDA was negative $3.7 million compared to $39.8 million in the same quarter of the previous year.
Lower Throughput and Margins
Throughput at the Prince George Refinery was 9% lower than Q4 2024 and 20% lower than Q1 2024, with lower refined product sales and margins.
Challenges in Renewable Diesel Market
Disappointment with the Canadian International Trade Tribunal's decision against Tidewater's complaint regarding subsidized imports from the United States.
Company Guidance
During the Tidewater Midstream and Infrastructure Limited Q1 2025 Conference Call, the company outlined several key performance metrics and strategic initiatives. The Prince George Refinery (PGR) experienced a throughput average of 9,936 barrels per day, marking a 9% decrease from the previous quarter and a 20% drop from Q1 2024. Additionally, the HDRD facility reported an average throughput of 2,239 barrels per day, slightly up from the previous year but down compared to Q4 2024. The Brazeau River complex's gas processing throughput was 94 million cubic feet per day, a decline from previous quarters. Financially, Tidewater reported a consolidated net loss attributable to shareholders of $31.8 million, a significant increase from the $11.3 million loss in the same period last year. The company's adjusted EBITDA was negative $3.7 million, primarily due to lower refined product sales and margins. To mitigate these challenges, Tidewater announced the acquisition of the Western Pipeline segment, which is expected to lower feedstock costs and improve operational efficiency. Despite a setback with the Canadian International Trade Tribunal regarding renewable diesel imports, Tidewater remains focused on improving its cost structure and utilization, aiming to leverage new regulations for better margins. The company also continues to advance its noncore asset sales program to enhance liquidity and reduce leverage.

Tidewater Midstream and Infrastructure Financial Statement Overview

Summary
Tidewater Midstream faces significant financial challenges with declining revenues, profitability, and cash flows, coupled with high leverage and negative equity trends, posing potential risks.
Income Statement
45
Neutral
The company exhibits declining revenue and profitability over the years. The TTM (Trailing-Twelve-Months) revenue has decreased compared to the previous year, and both gross and net profit margins have been weak. The negative net income indicates operational challenges.
Balance Sheet
50
Neutral
The balance sheet reflects a high debt-to-equity ratio, suggesting leverage risk. The equity ratio has been decreasing, indicating a decline in asset financing through equity. ROE is negative due to persistent losses, impacting investor returns.
Cash Flow
40
Negative
Cash flow generation is concerning, with negative free cash flows in recent periods. The operating cash flow to net income ratio is unfavorable, reflecting inefficiencies in converting income into cash. Free cash flow growth is negative, indicating cash flow challenges.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.51B1.64B2.21B2.88B1.70B979.41M
Gross Profit64.90M107.40M59.60M147.00M85.34M74.11M
EBITDA111.40M147.50M-259.80M191.60M247.31M95.52M
Net Income-47.10M-26.60M-385.90M18.90M71.50M-35.18M
Balance Sheet
Total Assets2.03B1.24B1.60B2.27B1.97B1.86B
Cash, Cash Equivalents and Short-Term Investments5.79M100.00K336.70M17.00M15.81M9.93M
Total Debt1.01B558.00M373.50M917.30M889.71M1.04B
Total Liabilities1.58B908.00M1.26B1.53B1.33B1.43B
Stockholders Equity448.65M290.60M305.90M703.30M616.66M426.74M
Cash Flow
Free Cash Flow-70.20M-78.40M-155.10M-106.40M9.85M134.61M
Operating Cash Flow-18.90M-33.50M137.50M242.90M126.70M205.57M
Investing Cash Flow18.20M293.40M14.30M-279.60M19.80M-100.23M
Financing Cash Flow-11.50M-259.90M-168.70M37.90M-140.60M-101.20M

Tidewater Midstream and Infrastructure Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.22
Price Trends
50DMA
0.22
Positive
100DMA
0.22
Positive
200DMA
0.21
Positive
Market Momentum
MACD
<0.01
Negative
RSI
55.58
Neutral
STOCH
83.33
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TWM, the sentiment is Positive. The current price of 0.22 is above the 20-day moving average (MA) of 0.20, above the 50-day MA of 0.22, and above the 200-day MA of 0.21, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.58 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:TWM.

Tidewater Midstream and Infrastructure Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSPPL
76
Outperform
$29.34B16.4711.55%5.59%-5.42%-1.70%
TSKEY
76
Outperform
C$9.80B17.9419.55%4.77%8.00%52.89%
TSGEI
73
Outperform
$3.88B23.8617.23%7.24%-5.85%-8.05%
TSTPZ
70
Outperform
C$3.94B71.884.22%5.31%2.02%12.06%
TSE
68
Neutral
C$147.31M39.755.16%-8.85%-67.49%
68
Neutral
$15.14B9.956.38%5.21%4.16%-67.19%
TSTWM
47
Neutral
C$90.56M-16.97%-25.69%87.47%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:TWM
Tidewater Midstream and Infrastructure
0.22
-0.36
-62.07%
TSE:GEI
Gibson Energy
23.78
2.88
13.80%
TSE:PPL
Pembina Pipeline
50.73
2.45
5.09%
TSE:KEY
Keyera Corp.
42.98
7.37
20.70%
TSE:E
Enterprise
1.88
0.68
56.67%
TSE:TPZ
Topaz Energy Corp
25.43
2.17
9.33%

Tidewater Midstream and Infrastructure Corporate Events

M&A TransactionsBusiness Operations and Strategy
Tidewater Midstream Sells Sylvan Lake Facility to Parallax Energy
Neutral
Jul 3, 2025

Tidewater Midstream and Infrastructure Ltd. has announced the sale of its Sylvan Lake Gas Processing Facility to Parallax Energy Operating Inc. for approximately $5.5 million. This transaction is part of Tidewater’s strategy to optimize its asset portfolio and enhance financial flexibility, with proceeds intended to repay outstanding amounts on its senior credit facility. The sale is expected to close in the third quarter of 2025, pending regulatory approvals, and is considered to have an immaterial impact on Tidewater’s 2025 operating results.

The most recent analyst rating on (TSE:TWM) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on Tidewater Midstream and Infrastructure stock, see the TSE:TWM Stock Forecast page.

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Tidewater Midstream Announces Key Decisions from Annual Meeting
Neutral
May 28, 2025

Tidewater Midstream and Infrastructure Ltd. announced the results of its annual general and special meeting, where shareholders voted on several key issues. The meeting, held virtually, saw the election of six directors, the re-appointment of Deloitte LLP as auditors, and the approval of various corporate measures, including share consolidation and executive compensation strategy. These decisions are expected to impact the company’s governance and operational strategies, potentially influencing its market positioning and stakeholder relations.

The most recent analyst rating on (TSE:TWM) stock is a Hold with a C$0.80 price target. To see the full list of analyst forecasts on Tidewater Midstream and Infrastructure stock, see the TSE:TWM Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Tidewater Midstream Reports Increased Q1 Loss Amid Strategic Financial Adjustments
Negative
May 8, 2025

Tidewater Midstream and Infrastructure Ltd. reported a significant increase in net loss for the first quarter of 2025, primarily due to lower refined product sales and margins. Despite this, the company made strategic moves to improve its financial position, including asset sales and credit facility amendments. The sale of interests in renewable partnerships and infrastructure assets helped repay debts, while regulatory changes in British Columbia’s Low Carbon Fuels Act are seen as beneficial for the company’s renewable segment. Additionally, a minor fire incident at the HDRD Complex was swiftly managed, allowing operations to resume quickly.

Business Operations and StrategyFinancial Disclosures
Tidewater Midstream Reports Q1 2025 Results and Strategic Updates
Negative
May 8, 2025

Tidewater Midstream and Infrastructure Ltd. reported a consolidated net loss of $31.8 million for the first quarter of 2025, driven by lower refined product sales and margins. The company made strategic financial moves, including the sale of assets and amendments to credit facilities, to enhance financial flexibility amid challenging market conditions. Additionally, regulatory changes in British Columbia’s Low Carbon Fuels Act are seen as beneficial for Tidewater’s renewable operations. A minor fire incident at the HDRD Complex was swiftly managed, allowing operations to resume quickly.

M&A TransactionsBusiness Operations and Strategy
Tidewater Acquires Western Pipeline Segment to Boost Refinery Efficiency
Positive
May 6, 2025

Tidewater Midstream and Infrastructure Ltd. has announced a definitive agreement to acquire the North Segment of Pembina Pipeline Corporation’s Western Pipeline System for approximately $1.2 million, along with future abandonment and reclamation liabilities. This acquisition aims to enhance Tidewater’s operational efficiency at the Prince George Refinery by securing a reliable and cost-effective feedstock source, potentially leading to significant cost savings and improved product margins. The transaction is expected to close by September 1, 2025, pending regulatory approvals.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 28, 2025