Tidewater Midstream and Infrastructure (TWM) AI Stock Analysis

• Market Cap: C$103.23M
• Dividend Yield: N/A
• Average Volume (3M): 25.57K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.41
• Revenue Growth: -23.30%
• EPS Growth: 76.16%
• Country: CA
• Employees: 360
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Midstream
• EPS (TTM): -1.58
• Shares Outstanding: 21,596,000
• 10 Day Avg. Volume: 15,799
• 30 Day Avg. Volume: 25,568
• PEG Ratio: 0.52
• Price to Book (P/B): 4.43
• Price to Sales (P/S): 0.79
• P/FCF Ratio: -16.43
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$8.50
• Price Target Upside: 77.82% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: C$5.00 ▲(4.60% Upside)

The overall stock score of 43 reflects significant financial challenges, including high leverage and negative profitability, which are the most impactful factors. Technical analysis provides a cautious outlook, while valuation metrics indicate potential overvaluation. Although strategic initiatives from the earnings call offer some promise, immediate financial setbacks and operational challenges weigh heavily on the stock's prospects.

Positive Factors

Strategic Acquisitions

The acquisition of the Western Pipeline is expected to yield $10 million to $15 million in annual cost savings, enhancing operational efficiency and strengthening Tidewater's infrastructure capabilities, which can improve long-term profitability.

Renewable Diesel Contracts

Securing 100% contracted offtakes for renewable diesel production for 2025 and over 80% for 2026 ensures stable revenue streams and positions Tidewater as a reliable player in the renewable energy market, supporting long-term growth.

Government Incentives

The Canadian government's $370 million biofuels incentive program, effective from 2026, will significantly benefit Tidewater Renewables, reducing costs and enhancing competitiveness in the biofuels market, supporting long-term growth.

Negative Factors

High Leverage

A high debt-to-equity ratio indicates financial risk and limited flexibility. This reliance on debt financing can strain cash flow and hinder Tidewater's ability to invest in growth opportunities, impacting long-term stability.

Profitability Challenges

Negative profitability and declining revenue highlight operational inefficiencies. This ongoing struggle to maintain profitability can affect Tidewater's ability to sustain operations and invest in future growth, posing long-term risks.

Cash Flow Issues

Negative free cash flow growth and low conversion of income into cash suggest liquidity constraints. These issues can limit Tidewater's operational flexibility and ability to fund strategic initiatives, impacting long-term financial health.

Tidewater Midstream and Infrastructure Business Overview & Revenue Model

Company Description

Tidewater Midstream and Infrastructure Ltd., through its subsidiaries, operates as a diversified midstream and infrastructure company in North America. It primarily focuses on natural gas, natural gas liquids (NGLs), and crude oil operations and processing plants located in the Deep Basin, Edmonton, and Montney regions of Alberta and British Columbia. The company engages in gathering, processing, and transportation for natural gas and NGLs; crude oil refining and refined products marketing; NGL extraction and marketing; and crude oil marketing and transportation. It also produces refined products, including gasoline, low sulfur diesel, and other products; produces and sells crude oil, natural gas, and NGLs; and rents railcar, as well as operates export terminals and storage facilities. The company was incorporated in 2015 and is headquartered in Calgary, Canada.

How the Company Makes Money

Tidewater Midstream and Infrastructure generates revenue primarily through its midstream services, which include fees for processing natural gas, transporting hydrocarbons through its pipeline network, and providing storage solutions. The company benefits from long-term contracts with producers, creating a stable and predictable revenue stream. Additionally, strategic partnerships with other energy companies enhance its operational capabilities and expand its market reach. The fluctuating prices of oil and gas can impact earnings, but TWM's diversified service offerings and contractual agreements help mitigate risks associated with commodity price volatility.

Tidewater Midstream and Infrastructure Financial Statement Overview

Summary

Tidewater Midstream and Infrastructure faces significant financial challenges, with declining revenues, negative profitability margins, and high leverage. The company's cash flow position is concerning, with negative free cash flow growth and operational cash flow issues. To improve its financial health, the company needs to focus on enhancing operational efficiency, managing debt levels, and stabilizing revenue streams.

Income Statement

The income statement shows declining revenue with a negative growth rate of -7.99% in the TTM period. Gross profit margin is low at 4.30%, and net profit margin is negative at -3.12%, indicating profitability challenges. EBIT and EBITDA margins are also weak, reflecting operational inefficiencies. The company has faced consistent revenue declines over the past few years, impacting overall profitability.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.13, indicating significant leverage, which could pose financial risks. Return on equity is negative, reflecting poor returns for shareholders. However, the equity ratio is relatively stable, suggesting some balance in asset financing. The company needs to manage its debt levels to improve financial stability.

Cash Flow

Cash flow analysis shows negative free cash flow growth of -67.95% in the TTM period, highlighting cash generation issues. The operating cash flow to net income ratio is negative, indicating operational cash flow challenges. Free cash flow to net income ratio is positive, suggesting some ability to cover net losses, but overall cash flow management remains weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.37B	1.64B	2.21B	2.88B	1.70B	979.41M
Gross Profit	-12.00M	107.40M	59.60M	147.00M	85.34M	74.11M
EBITDA	55.00M	147.50M	-254.50M	191.60M	247.31M	95.52M
Net Income	-85.50M	-26.60M	-385.90M	18.90M	71.50M	-35.18M
Balance Sheet
Total Assets	1.14B	1.24B	1.60B	2.27B	1.97B	1.86B
Cash, Cash Equivalents and Short-Term Investments	2.10M	100.00K	336.70M	17.00M	15.81M	9.93M
Total Debt	406.50M	572.80M	373.50M	917.30M	889.71M	1.04B
Total Liabilities	884.70M	908.00M	1.26B	1.53B	1.33B	1.43B
Stockholders Equity	211.60M	290.60M	305.90M	703.30M	616.66M	426.74M
Cash Flow
Free Cash Flow	19.30M	-78.40M	-155.10M	-106.40M	9.85M	134.61M
Operating Cash Flow	46.40M	-33.50M	137.50M	242.90M	126.70M	205.57M
Investing Cash Flow	9.70M	293.40M	14.30M	-279.60M	19.80M	-100.23M
Financing Cash Flow	-54.10M	-259.90M	-168.70M	37.90M	-140.60M	-101.20M

Tidewater Midstream and Infrastructure Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TWM, the sentiment is Negative. The current price of 4.78 is below the 20-day moving average (MA) of 4.95, below the 50-day MA of 5.40, and below the 200-day MA of 4.93, indicating a bearish trend. The MACD of -0.14 indicates Negative momentum. The RSI at 37.06 is Neutral, neither overbought nor oversold. The STOCH value of 18.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:TWM.

Tidewater Midstream and Infrastructure Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PPL	70 Outperform	C$29.58B	18.15	10.22%	5.54%	2.81%	-14.92%
TPZ	69 Neutral	C$4.12B	73.12	4.75%	5.04%	6.52%	-13.92%
GEI	68 Neutral	$4.15B	27.48	16.47%	6.72%	-12.18%	-29.17%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
E	64 Neutral	C$113.25M	30.48	5.09%	―	-7.13%	-60.41%
KEY	64 Neutral	C$9.92B	23.01	15.28%	4.90%	-4.09%	-3.57%
TWM	43 Neutral	C$103.23M	-1.21	-33.62%	―	-23.30%	76.16%

Tidewater Midstream and Infrastructure Corporate Events

Tidewater Secures BC LCFS Credits for Renewable Fuel Production

Tidewater Midstream and Infrastructure Ltd. has entered into an agreement with the Government of British Columbia to receive BC LCFS Credits, which will support the production of low-carbon renewable gasoline and diesel at the Prince George Refinery. This initiative, along with a previous agreement, is expected to fund half the cost of renewable feedstocks needed for co-processing, reducing carbon emissions in British Columbia by over 60,000 metric tonnes annually and supporting the economic success of the refinery.

Tidewater Midstream Addresses Axiom Lawsuit Allegations

Tidewater Midstream and Infrastructure Ltd. is responding to a lawsuit filed by Axiom Oil and Gas Inc., which alleges that Tidewater unreasonably exercised its rights under a gas handling agreement. A previous injunction application by Axiom was dismissed, with the court indicating that Axiom faces significant challenges in proving its claims. Tidewater maintains that the lawsuit is without merit and intends to vigorously defend itself.

Tidewater Midstream Reports Q3 Loss Amid Strategic Shifts and Renewable Focus

Tidewater Midstream and Infrastructure Ltd. reported a consolidated net loss of $34.1 million for the third quarter of 2025, attributed to lower sales volumes and margins in refined products and emission credits, alongside unfavorable derivative contract valuations. Despite these challenges, the company is poised to benefit from the Canadian government’s new Biofuels Production Incentive and has completed strategic transactions, including the acquisition of Pembina’s Western Pipeline System and the sale of its Sylvan Lake gas plant. These moves are expected to enhance operational efficiency and financial stability, while the execution of an agreement with the Government of British Columbia will support the production of low-carbon fuels, further aligning Tidewater with sustainability goals.

Tidewater Midstream Reports Q3 Loss, Eyes Future Gains with Strategic Moves

Tidewater Midstream and Infrastructure Ltd. reported a consolidated net loss of $34.1 million for the third quarter of 2025, primarily due to lower sales volumes and margins in its downstream assets and unfavorable changes in derivative contracts. Despite these challenges, the company is poised to benefit from the Canadian government’s new Biofuels Production Incentive and has completed strategic transactions, including acquiring a segment of Pembina’s Western Pipeline System and selling its Sylvan Lake gas plant. These moves are expected to improve cost efficiencies and enhance its renewable energy production capabilities, potentially leading to improved financial performance in the future.

Tidewater Midstream Completes Sale of Sylvan Lake Facility

Tidewater Midstream and Infrastructure Ltd. has completed the sale of its Sylvan Lake Gas Processing Facility to Parallax Energy Operating Inc. for $5.5 million. This transaction, involving a non-core asset, is expected to have an immaterial impact on Tidewater’s 2025 operating results, with the proceeds being used to repay amounts outstanding on the company’s Senior Credit Facility.

Tidewater Completes Acquisition of Western Pipeline’s North Segment

Tidewater Midstream and Infrastructure Ltd. has successfully completed the acquisition of the North Segment of the Western Pipeline System from Pembina Pipeline Corporation. This strategic acquisition is expected to enhance operational efficiencies by integrating the pipeline with Tidewater’s existing operations, optimizing feedstock procurement, and improving cost structures at the Prince George Refinery.