Tidewater Midstream and Infrastructure Ltd. ("Tidewater" or the "Corporation") (TSX: TWM) is pleased to announce that it completed commissioning and start-up of the Pipestone Montney, sour deep-cut gas processing complex ("Pipestone Gas Plant"). The Pipestone Gas Plant is designed to process approximately 100 MMcf/day of sour gas and includes an acid gas injection well, salt water disposal well, and pipelines that directly connect to Tidewater's Pipestone Gas Storage Facility. Additionally, the Pipestone Gas Plant is connected to both the Alliance and TC Energy pipeline network.
The Pipestone Gas Plant began processing sour gas on September 15, 2019 and is currently processing approximately 30 MMcf/day of sour gas during this start-up phase. Tidewater expects processing to ramp up to at or near full capacity of 100MMcf/day by the end of the year. Tidewater received approval from the Alberta Energy Regulator to construct and operate the Pipestone Gas Plant in October, 2018 and began constructing this plant shortly thereafter. The Pipestone Gas Plant was constructed on time and on budget with Tidewater's divestment of the plant's 32MW cogeneration units for cash proceeds of $85 million during the first quarter of 2019. Capacity at the Pipestone Gas Plant is fully contracted with customers including two investment grade counterparties having executed processing agreements.
Toby McKenna, Vice President of Business Development commented that this plant represents a significant milestone for Tidewater. "With the start-up of this strategic asset, Tidewater is well positioned in the Grande Prairie area to offer Montney producers natural gas and liquids processing, egress and storage opportunities." Mr. McKenna added that "we at Tidewater are grateful to all of our employees, contractors and service providers who diligently worked to build this plant in a safe and environmentally responsible manner. We also wish to thank all of our customers for their continued support and confidence in Tidewater."
Q3 Dividend Announcement
Tidewater is pleased to announce that its Board of Directors has declared a dividend for the third quarter 2019 of $0.01 per common share payable on or about October 31, 2019 to shareholders of record on September 30, 2019. The ex-dividend date is September 27, 2019. This dividend is an eligible dividend for the purpose of the Income Tax Act (Canada).
Tidewater is traded on the TSX under the symbol "TWM". Tidewater's business objective is to build a diversified midstream and infrastructure company in the North American natural gas, natural gas liquids ("NGL") and crude oil 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.
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 information" within the meaning of applicable Canadian securities legislation ("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 projected processing capacity of the Pipestone Gas Plant and projections regarding ramp up to such capacity. These forward-looking statements are based on certain key assumptions regarding, among other things: our ability to execute on our business plan; that third party infrastructure will be completed according to estimated timelines; that any third party projects relating to the Corporation's growth projects will be sanctioned and completed as expected; that there are no unforeseen events preventing the performance of contracts; that there are no unforeseen material construction, integrity or other costs related to current growth projects or current operations; our operating activities; the availability and cost of labour and other industry services; 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.These known and unknown risks and uncertainties, include, but are not limited to: the regulatory environment and decisions; the ability of Tidewater or its joint venture partners or customers to raise sufficient capital (or to raise sufficient capital on favourable terms) to fund future expansions and growth projects and satisfy future commitments; failure to negotiate and conclude any required commercial agreements or failure to obtain project sanctioning; increased construction costs, or construction delays, on Tidewater's expansion and growth projects; labour and material shortages; non-performance of agreements in accordance with their terms; the impact of competitive entities and pricing; reliance on key industry partners, alliances and agreements; the continuation or completion of third-party projects; actions by governmental or regulatory authorities including changes in tax laws and treatment, construction delays; labour and material shortages; and certain other risks detailed from time to time in Tidewater's public disclosure documents including, among other things, those detailed under the heading "Risk Factors" in Tidewater's management's discussion and analysis and annual information form for the year ended December 31, 2018.
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.