Tidewater provides Operational Update and announces Q2 Dividend
CALGARY, June 21, 2019 /CNW/ - Tidewater Midstream and Infrastructure Ltd. ("Tidewater" or the "Corporation") (TSX:TWM) is pleased to announce: that the Pioneer Pipeline, connecting Tidewater's Brazeau River gas plant to TransAlta's generating units at Keephills and Sundance, transported first gas four months ahead of schedule; that Tidewater expanded its gas storage facility at Pipestone and completed its natural gas pipeline connecting the facility to both Alliance and TCPL; and that its Board of Directors has declared a dividend for the second quarter 2019 of $0.01 per common share.
Pioneer Pipeline Commissioning
Tidewater is pleased to announce that the Tidewater operated Pioneer Pipeline, connecting Tidewater's Brazeau River Complex ("BRC") gas plant to TransAlta's generating units at Keephills and Sundance, transported first gas in late May 2019, approximately four months ahead of schedule. The Pioneer Pipeline is currently flowing approximately 50 MMcf/day of natural gas during this start-up phase where initial flows may fluctuate depending on market conditions. Throughput of approximately 130 MMcf/day of natural gas will commence flowing through the Pioneer Pipeline November 1, 2019. Tidewater and TransAlta each own a 50% interest in the Pioneer Pipeline which is backstopped by a 15-year take-or-pay agreement from TransAlta at market rate tolls.
Pipestone Gas Storage Facility
During the first quarter of 2019, Tidewater expanded its gas storage operations at Pipestone (the "Pipestone Gas Storage Facility") and completed a 24km, 30-inch natural gas pipeline ("Pipestone Pipeline") connecting the facility to both mainline gas systems, Alliance and TCPL. The Pipestone Pipeline allows for significant future optionality and egress at the Pipestone Gas Storage Facility and Pipestone Gas Plant. The Pipestone Gas Storage Facility is fully contracted on a take-or-pay basis with investment-grade counterparties over an average six-year contract term. Continued capital improvements to the facility during 2019, along with the completed 30-inch pipeline, will significantly increase future contracting capacity at the storage facility. The Pipestone Gas Storage Facility also achieved record injection rates in the second quarter of 2019, exceeding expectations, and further enhancing future contracting capability at the facility.
Q2 dividend announcement
Tidewater is pleased to announce that its Board of Directors has declared a dividend for the second quarter 2019 of $0.01 per common share payable on or about July 31, 2019 to shareholders of record on June 28, 2019. The ex-dividend date is June 27, 2019. This dividend is an eligible dividend for the purpose of the Income Tax Act (Canada).
About Tidewater
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 news release contains forward-looking statements relating to but not limited to: anticipated throughput of the Pioneer pipeline; projections of future optionality and egress at the Pipestone Gas Storage Facility and Pipestone Gas Plant; and projections of increased future contracting capacity at the Pipestone Gas Storage Facility.
Such forward-looking statements of information are based on a number of assumptions which may prove to be incorrect. In addition to other assumptions identified in this document, assumptions have been made regarding, among other things: general economic and industry trends; the Corporation's ability to secure natural gas supplies; that counterparties will comply with contracts in a timely manner; that there are no unforeseen material costs relating to the facilities which are not recoverable from customers; future capital expenditures to be made by the Corporation; the ability to obtain additional financing on satisfactory terms; and, that any third-party projects relating to the Corporation's growth projects will be sanctioned and completed as expected.
Actual results achieved will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors including but not limited to: general economic, political, market and business conditions, including fluctuations in interest rates, foreign exchange rates and stock market volatility; activities of producers and customers, procurement of natural gas supplies; operational matters, including potential hazards inherent in the Corporation's operations and the effectiveness of health, safety, environmental and integrity programs; fluctuations in commodity prices, inventory levels and supply/demand trends; actions by governmental authorities, including changes in government regulation including environmental, tariffs and taxation; changes in operating and capital costs, including fluctuations in input costs; competition for, among other things, business, capital, acquisition opportunities, requests for proposals, materials, equipment, labour and skilled personnel; environmental risks and hazards, including risks inherent in the transportation of NGLs which may create liabilities to the Corporation in excess of the Corporation's insurance coverage, if any; non-performance or default by counterparties to agreements which the Corporation has entered into in respect of its business; construction and engineering variables associated with capital projects, including the availability of contractors, engineering and construction services, accuracy of estimates and schedules, and the performance of contractors; the availability of capital on acceptable terms; effects of weather conditions; and technology and security risks.
The foregoing lists are not exhaustive. Additional information on these and other factors which could affect the Corporation's operations or financial results are included in the Corporation's most recent Annual Information Form and in other documents on file with the Canadian Securities regulatory authorities.
The above summary of assumptions and risks related to forward-looking statements in this news release is intended 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.
SOURCE Tidewater Midstream and Infrastructure Ltd.
Contact Information: Tidewater Midstream & Infrastructure Ltd., Joel MacLeod, Chairman, President and CEO, 587.475.0210, [email protected]
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