CALGARY, AB, March 26, 2026 /CNW/ - Tidewater Midstream and Infrastructure Ltd. ("Tidewater" or the "Corporation" when referring to the consolidated group, and "Tidewater Midstream" when referring to the legal entity) (TSX:TWM) has filed its consolidated financial statements and Management Discussion and Analysis ("MD&A") for the year ended December 31, 2025.
Fourth Quarter 2025 Highlights
Consolidated net loss attributable to shareholders was $30.0 million in the fourth quarter of 2025 compared to a net loss attributable to shareholders of $3.3 million during the fourth quarter of 2024. The larger net loss was primarily due to lower operating income, the absence of an impairment reversal in the current quarter, and lower income from equity investments, offset in part by favorable changes in the fair value of derivative contracts and lower interest rates in the current period.
Consolidated adjusted EBITDA1was $3.0 million for the fourth quarter of 2025 compared to $20.0 million in the fourth quarter of 2024. The decrease was primarily due to a lower gross margin in the current period and lower contributions from equity investments, partially offset by lower losses on realized derivative contracts.
On October 21, 2025, Tidewater completed the sale of its Sylvan Lake gas plant and associated gathering infrastructure (collectively, the "Sylvan Lake Gas Processing Facility") to Parallax Energy Operating Inc. for total proceeds of approximately $5.5 million, subject to customary adjustments. Proceeds from the transaction were used to repay amounts outstanding on the Tidewater Midstream senior credit facility.
On November 10, 2025, and December 4, 2025, Tidewater Midstream and the Government of British Columbia executed initiative agreements that will provide Tidewater Midstream with BC LCFS Credits to support the production of low-carbon renewable diesel and renewable gasoline from the hydrotreater co-processing unit and fluid catalytic cracking ("FCC") co-processing infrastructure at the Prince George Refinery ("PGR"). The BC LCFS Credits awarded under the initiative agreements are expected to fund a significant portion of the cost of the renewable feedstocks required to operate the hydrotreater co-processing unit during 2026 and 2027, and the FCC co-processing infrastructure between May 2026 and April 2028, at rates of 300 bbl/d for each of the respective units. In addition, the sale of low-carbon transportation fuels into the British Columbia market will generate CFR Emission Credits and additional BC LCFS Credits for Tidewater Midstream.
Tidewater Renewables successfully completed its scheduled turnaround at the renewable diesel & renewable hydrogen complex ("HDRD Complex"), including the identification and repair of an equipment failure. Following these repairs, the facility has demonstrated improved operational reliability, with utilization averaging near nameplate capacity to date in 2026.
Full-Year 2025
Consolidated net loss attributable to shareholders was $112.2 million during 2025 compared to a net loss attributable to shareholders of $26.6 million during 2024. The larger net loss was primarily due to lower operating income and the absence of impairment reversals in 2025, offset in part by favorable changes in the fair value of derivative contracts and lower financing costs in the current year.
Consolidated adjusted EBITDA1 was $31.5 million during 2025 compared to $134.3 million during 2024. The decrease was primarily due to lower operating income in the current year, partially offset by lower losses on realized derivative contracts and higher contributions from equity investments.
On September 25, 2025, Tidewater completed the previously announced transaction with Pembina Pipeline Corporation and certain of its affiliates (collectively "Pembina") to acquire the north segment of Pembina's Western Pipeline System (the "Western Pipeline"), through a wholly owned limited partnership for total cash consideration of approximately $1.2 million, as well as the assumption of certain future abandonment and reclamation obligations and liabilities now estimated at approximately $15.5 million (undiscounted value) (the "Western Pipeline Transaction"). Tidewater expects the Western Pipeline Transaction to yield significant cost improvements compared to historical metrics, while further enhancing Tidewater's ability to optimize its feedstock procurement at the PGR.
The 2025 year benefited from improved regulatory clarity following the Government of British Columbia's February 27, 2025, announcement regarding amendments to the Low Carbon Fuels Act. These updates, which increased mandated renewable fuel content for diesel to 8% and requires such renewable fuel content to be produced in Canada, represents, in management's view, a significant step toward a fairer and more competitive trade environment for the Canadian renewable fuel industry.
Execution of Tidewater Renewables' 6,500 bbl/d sustainable aviation fuel ("SAF") project reached significant milestones during the year, highlighted by the completion of front-end engineering design work in the second quarter of 2025 and the execution of an amended initiative agreement with the Government of British Columbia in September 2025 (the "Amended Initiative Agreement"). The Amended Initiative Agreement provides additional BC LCFS Credits to support optimization efforts ahead of a targeted 2026 final investment decision.
Tidewater's efforts to optimize its asset portfolio through the divesture of non-core assets included the January 10, 2025 sale of Tidewater Renewables investment in the Rimrock Renewables Limited Partnership for a total purchase price of $7.8 million, the March 24, 2025 sale of the BRC roadway network for total proceeds of $24.0 million, and the October 21, 2025 sale of the Sylvan Lake Gas Processing Facility for total proceeds of $5.5 million. Proceeds from the transactions were used to repay indebtedness on the senior credit facilities.
2026 Guidance
Tidewater is pleased to release its 2026 guidance, which is characterized by improved financial performance and accelerated deleveraging. The Corporation expects to deliver annual adjusted EBITDA1of between $150.0 million and $170.0 million, driven largely by optimized operational performance at the PGR, the BRC, and the HDRD Complex. The cash flow generated is expected to be prioritized towards consolidated debt reduction, reflecting management's commitment to strengthening the balance sheet and enhancing long-term shareholder value.
Subsequent Events
In January 2026, Tidewater Renewables formally submitted its application for the BioFuels Production Incentive (the "BPI"), a new $370.0 million program announced by the Government of Canada in 2025 aimed at strengthening domestic production of biodiesel and renewable diesel. With expected renewable diesel production of between 150 million to 170 million litres per year, Tidewater Renewables anticipates that 100% of its production will qualify for the incentive. Management believes Tidewater Renewables is well-positioned to benefit from the BPI, supporting improved cash flow and returns over the eligible period. Under the terms of the program, Tidewater Renewables expects to receive an incentive of $0.16 per litre. This is projected to generate between $24.0 million to $27.2 million in annual cash proceeds for each of 2026 and 2027.
On March 9, 2026, Ian Quartly was appointed Chief Financial Officer ("CFO") of Tidewater. Mr. Quartly had been serving as Tidewater's Interim CFO since May 7, 2025. In addition to his position as CFO of Tidewater, Mr. Quartly also continues to serve as CFO of Tidewater Renewables, a position he has held since May 2024.
On March 23, 2026, Tidewater Midstream made several amendments to its senior credit facility. The amendments extend the maturity dates of the syndicated and operating components of the facility from September 12, 2026 to August 30, 2027, and revise the Tidewater Midstream financial covenant requirements beginning March 31, 2026.
1
Non-GAAP financial measure. See the "Non-GAAP Measures" section of this news release.
CEO Message:
"Tidewater enters 2026 with a positive outlook that is supported by optimized operational performance at its core assets and improved market fundamentals," said Jeremy Baines, Chief Executive Officer of Tidewater.
"The Prince George Refinery is set to benefit from stronger utilization, as well as operational efficiencies and cost reductions from the acquired Western Pipeline. The re-start of the co-processing units are also expected to provide a favorable benefit via reduced compliance cost, while the previously announced initiative agreements will assist Tidewater Midstream in financing feedstock procurement. The HDRD Complex is on-track to produce between 150 and 170 million litres of renewable diesel in 2026 that is expected to qualify for the $0.16 per litre Canadian Biofuels Production Incentive. The BRC is expected to benefit from the commencement of recently executed agreements for gas handling and NGL supply and fractionation.
"Tidewater has also seen favorable movement in North American crack spreads and emission credit values, which are expected to provide an additional windfall to Tidewater's core business. In an effort to protect our guidance forecast and cash flows, Tidewater has taken steps to hedge a material portion of production. Tidewater Midstream has hedged approximately 50% of its crack spread exposure for the balance of 2026 and Tidewater Renewables has approximately 50% of its revenue and feedstock purchases hedged for the balance of 2026. Tidewater has also taken steps to hedge the price exposure of its NGL business.
"The $150, $170 million consolidated adjusted EBITDA guidance range represents a 375% to 440% increase from 2025 consolidated adjusted EBITDA. With a disciplined capital program of between $20.0 million and $25.0 million for 2026, the resulting cash flow is expected to be primarily directed towards debt reduction."
CONSOLIDATED AND DECONSOLIDATED FINANCIAL HIGHLIGHTS
Three months ended December 31
Tidewater
Deconsolidated (3)
Tidewater
Consolidated
(in millions of Canadian dollars except per share information)
2025
2024
2025
2024
Net loss attributable to shareholders
$
(21.6)
$
(2.4)
$
(30.0)
$
(3.3)
Net loss attributable to shareholders per
share, basic (1)
$
(1.00)
$
(0.11)
$
(1.39)
$
(0.15)
Adjusted EBITDA (2)
$
6.8
$
14.0
$
3.0
$
20.0
Distributable cash flow attributable to
shareholders (1)
$
(8.3)
$
(6.6)
$
(15.3)
$
(11.7)
Distributable cash flow per share, basic (1)(2)
$
(0.38)
$
(0.31)
$
(0.71)
$
(0.54)
Net debt (4)
$
373.3
$
381.8
$
579.5
$
577.6
Total capital expenditures
$
3.7
$
5.5
$
6.7
$
11.2
(1) On August 28, 2025, further to the special resolution approved by Tidewater Midstream shareholders, the Corporation completed a common share consolidation at a ratio of 20-for-1. As a result, the comparative periods in this news release have been retroactively restated to reflect the share consolidation.
(2) Non-GAAP financial measures. See the "Non-GAAP Measures" section of this news release.
(3) Deconsolidated results exclude the results of Tidewater Renewables. See the "Non-GAAP Measures" section of this news release for information on deconsolidated measures.
(4) Capital management measure. See the "Non-GAAP Measures" section of this news release.
Year ended December 31
Tidewater
Deconsolidated (3)
Tidewater
Consolidated
(in millions of Canadian dollars except per share information)
2025
2024
2025
2024
Net loss attributable to shareholders
$
(110.6)
$
(40.7)
$
(112.2)
$
(26.6)
Net loss attributable to shareholders per
share, basic (1)
$
(5.12)
$
(1.89)
$
(5.19)
$
(1.24)
Adjusted EBITDA (2)
$
5.7
$
59.8
$
31.5
$
134.3
Distributable cash flow attributable to
shareholders (2)
$
(48.9)
$
(22.7)
$
(59.7)
$
(3.1)
Distributable cash flow per share, basic (1)(2)
$
(2.26)
$
(1.06)
$
(2.76)
$
0.14
Net debt (4)
$
373.3
$
381.8
$
579.5
$
577.6
Total capital expenditures
$
9.5
$
23.4
$
22.6
$
44.9
(1) On August 28, 2025, further to the special resolution approved by Tidewater Midstream shareholders, the Corporation completed a common share consolidation at a ratio of 20-for-1. As a result, the comparative periods in this news release have been retroactively restated to reflect the share consolidation.
(2) Non-GAAP financial measures. See the "Non-GAAP Measures" section of this news release.
(3) Deconsolidated results exclude the results of Tidewater Renewables. See the "Non-GAAP Measures" section of this news release for information on deconsolidated measures.
(4) Capital management measure. See the "Non-GAAP Measures" section of this news release.
CAPITAL EXPENDITURES
Three months ended
December 31,
Year ended
December 31,
(in millions of Canadian dollars)
2025
2024
2025
2024
Growth capital (1)
$
1.4
$
7.2
$
3.7
$
22.1
Maintenance capital (1)
5.3
4.0
18.9
23.8
Total capital expenditures
$
6.7
$
11.2
$
22.6
$
44.9
Capital emission credits awarded (2)
$
-
$
(3.6)
$
(2.6)
$
(46.5)
(1)
Supplementary financial measures. See the "Non-GAAP Measures" section of this news release.
(2)
During the three months and year ended December 31, 2025, $NIL and $1.3 million of capital emission credits were monetized, respectively. (Three months and year ended December 31, 2024 - $NIL and $23.6 million, respectively.)
Tidewater's 2025 consolidated maintenance capital program was focused on maintaining safe and reliable operations. Full-year consolidated maintenance capital spending was $18.9 million, within the range of the previously disclosed guidance of between $15.0 million and $20.0 million, inclusive of maintenance capital in relation to the Western Pipeline following the completion of the acquisition on September 25, 2025.
Tidewater Renewables' 2025 maintenance capital spending was $9.2 million, within the range of the previously disclosed maintenance capital guidance of between $8.0 million to $10.0 million, and primarily related to the planned turnaround activities at the HDRD Complex in the third quarter of 2025.
2026 GUIDANCE
Tidewater is pleased to release its 2026 guidance, which is characterized by higher facility performance, costs savings, and accelerated deleveraging.
Tidewater's 2026 consolidated adjusted EBITDA(1)[3]is expected to range between $150.0 million and $170.0 million, a projected increase of between $118.5 million to $138.5 million compared to 2025. Tidewater's 2026 full-year consolidated capital program is expected to range between $20.0 million and $25.0 million.
(in millions of Canadian dollars)
2026 Tidewater
Consolidated Guidance
Adjusted EBITDA (1)(2)
$150.0 - $170.0
Capital expenditures (3)(4)
$20.0 - $25.0
(1)
Non-GAAP financial measure. Refer to the "Non-GAAP Measures" section of this news release.
(2)
2026 Tidewater Renewables guidance includes adjusted EBITDA of $80.0 - $90.0 million, based on sales volumes of 150.0, 170.0 MM litres.
(3)
Capital expenditures are presented net of capital emission credits.
(4)
2026 Tidewater Renewables guidance includes capital expenditures of $2.0 - $3.0 million.
Tidewater's 2026 guidance is driven by expected increases in facility utilization at the PGR, the BRC, and Tidewater Renewables' HDRD Complex. Scheduled equipment cleaning and maintenance will take place at the PGR during April and October of 2026. The PGR will take ...
