TIDEWATER MIDSTREAM AND INFRASTRUCTURE LTD. ANNOUNCES FOURTH QUARTER AND YEAR-END 2025 RESULTS, OPERATIONAL UPDATE, AND 2026 FINANCIAL GUIDANCE

Executive Summary

• Tidewater reported a consolidated net loss of C$112.2 M for FY 2025 (vs. C$26.6 M loss in 2024) and an adjusted EBITDA of C$31.5 M, reflecting significant earnings deterioration year‑over‑year.
• The company issued 2026 guidance forecasting consolidated adjusted EBITDA of C$150–170 M (a 375%–440% increase vs. 2025) and a capital program of C$20–25 M, emphasizing accelerated deleveraging and higher utilization at core assets.
• Major operational and strategic actions included: acquisition of the north segment of Pembina’s Western Pipeline for C$1.2 M (plus assumption of ~C$15.5 M future abandonment liabilities), sale of the Sylvan Lake Gas Processing Facility for ≈C$5.5 M, execution of BC LCFS initiative agreements to fund renewable feedstock, and amendment of senior credit facility terms extending maturity to August 2027.

Key Details

• Financial Results – Q4 2025
• Consolidated net loss attributable to shareholders: C$30.0 M (vs. C$3.3 M in Q4‑2024).
• Adjusted EBITDA: C$3.0 M (down from C$20.0 M YoY).
• Financial Results – FY 2025
• Consolidated net loss attributable to shareholders: C$112.2 M (vs. C$26.6 M in 2024).
• Adjusted EBITDA: C$31.5 M (down from C$134.3 M YoY).
• Asset Transactions
• Sale of Sylvan Lake Gas Processing Facility – proceeds ≈C$5.5 M, used to repay senior credit facility debt.
• Sale of Rimrock Renewables LP interest – C$7.8 M; sale of BRC roadway network – C$24.0 M (both proceeds applied to debt reduction).
• Acquisition – Western Pipeline Segment: cash consideration ≈C$1.2 M, plus assumption of future abandonment/reclamation obligations valued at ≈C$15.5 M (undiscounted). Expected cost‑improvement and feedstock procurement benefits for the Prince George Refinery (PGR).
• BC LCFS Initiative Agreements – Executed 10 Nov 2025 & 4 Dec 2025; provide BC Low‑Carbon Fuel Standard credits to fund renewable diesel/hydrotreater co‑processing units (300 bbl/d each) for 2026‑2028 and generate additional CFR Emission Credits.
• Renewables Turnaround – HDRD Complex completed scheduled turnaround, repaired equipment failure, now operating near name‑plate capacity in 2026.
• 2026 Guidance – Consolidated adjusted EBITDA C$150–170 M, capital expenditures C$20–25 M; Tidewater Renewables guidance: adjusted EBITDA C$80–90 M, capex C$2–3 M. Emphasis on debt reduction and higher utilization at PGR, BRC, HDRD Complex.
• Credit Facility Amendments (23 Mar 2026) – Extended maturity of syndicated & operating components to 30 Aug 2027; revised financial covenant thresholds (e.g., minimum Adjusted EBITDA/Interest coverage 2.0× for Q1‑2026, 2.5× thereafter).
• Management Changes – Ian Quartly appointed CFO (effective 9 Mar 2026), previously Interim CFO since 7 May 2025; continues as CFO of Tidewater Renewables.
• Operational Metrics – PGR throughput Q4‑2025: 10,809 bbl/d (90% design); HDRD Complex average utilization Q4‑2025: 48%, full‑year 2025: 66%; BRC gas processing Q4‑2025: 102 MMcf/d.
• Hedging Strategy – Approximately 50% of crack spread exposure and renewable diesel revenue/feedstock purchases hedged for the balance of 2026.

Notable Quotes

“Tidewater enters 2026 with a positive outlook that is supported by optimized operational performance at its core assets and improved market fundamentals,” — Jeremy Baines, CEO.

“The acquisition of the Western Pipeline will yield significant cost improvements and enhance our feedstock procurement at the Prince George Refinery,” — Jeremy Baines, CEO.