TIDEWATER MIDSTREAM AND INFRASTRUCTURE LTD. ANNOUNCES SECOND QUARTER 2025 RESULTS AND OPERATIONAL UPDATE

Executive Summary

• Tidewater Midstream and Infrastructure Ltd. reported a consolidated net loss of $16.3 million for Q2 2025, a significant deterioration from the $4.7 million loss in Q2 2024, driven primarily by lower refined product margins at downstream assets.
• The company announced two major M&A transactions: the acquisition of Pembina’s Western Pipeline segment for ~$1.2M cash plus ~$30M in abandonment liabilities, and the sale of its Sylvan Lake gas plant to Parallax Energy for ~$5.5M.
• Operational updates highlight reduced throughput at the Prince George Refinery (PGR) due to feedstock adjustments and a fire incident at the HDRD Complex, while midstream operations saw lower volumes at the Ram River plant due to temporary lay-up.

Key Details

• Financial Performance (Q2 2025 vs Q2 2024):
  • Consolidated Net Loss: $16.3 million (vs. $4.7 million loss).
  • Consolidated Adjusted EBITDA: $16.0 million (vs. $45.3 million).
  • Deconsolidated Adjusted EBITDA: $5.2 million (vs. $15.8 million).
  • Distributable Cash Flow (DCF) attributable to shareholders: $(8.8) million (vs. $4.0 million).
  • Net Debt: $570.1 million (Consolidated) / $371.4 million (Deconsolidated).
• M&A Activity:
  • Acquisition: Entered definitive agreements to acquire the north segment of Pembina’s Western Pipeline System for ~$1.2 million cash and assumption of ~$30 million (undiscounted) in future abandonment/reclamation liabilities. Expected to close by September 1, 2025.
  • Divestiture: Entered definitive agreement to sell the Sylvan Lake Gas Processing Facility to Parallax Energy Operating Inc. for ~$5.5 million. Expected to close in Q3 2025.
• Capital Management:
  • Repaid ~$20.0 million of debt on Senior Credit Facilities in Q2 2025.
  • Combined available capacity on Senior Credit Facilities was $55.0 million as of June 30, 2025.
  • Tidewater Renewables extended its Senior Credit Facility maturity from Feb 28, 2026, to Feb 28, 2027.
  • Full-year 2025 capital program guidance remains $15 million - $20 million (excluding Western Pipeline maintenance).
• Operational Metrics - Downstream:
  • PGR Throughput: 9,942 bbl/day in Q2 2025 (consistent with Q1 2025, but 17% lower than Q2 2024) due to operational/feedstock adjustments for higher-density feedstock.
  • PGR Crack Spread: Averaged $85/bbl in Q2 2025 (up 2% from Q1 2025, up 6% from Q2 2024).
  • HDRD Complex: Average utilization of 2,164 bbl/d (72% of design capacity) in Q2 2025, down from 98% in Q2 2024. The decrease was attributed to a minor fire on April 1, 2025, which caused a temporary suspension. Full-year 2025 throughput expectation remains 2,200–2,400 bbl/d.
  • Legal/Regulatory: Canadian International Trade Tribunal terminated the preliminary injury inquiry into Tidewater Renewables' anti-dumping/countervailing duty complaint regarding US renewable diesel imports.
• Operational Metrics - Midstream:
  • BRC Gas Plant: Throughput of 95 MMcf/day in Q2 2025. Plant 3 was temporarily shut down for maintenance/repairs but restarted in late June.
  • BRC Fractionation: Utilization averaged 85% in Q2 2025.
  • Ram River Gas Plant: Temporarily laid up since Jan 7, 2025, to manage costs; sulfur handling resumed in March. Restart contingent on commodity price recovery and producer activity.
  • Gas Plant Volumes: Gross throughput declined to 172 MMcf/day in Q2 2025 (from 253 MMcf/day in Q2 2024).

Notable Quotes

• "The first half of 2025 has proven a difficult start to the year. We are encouraged by the quarter over quarter improvements in operating results, however our business continues to be impacted by lower refined product margins and producer shut-ins affecting our midstream operations." – Jeremy Baines, CEO.
• "Year-to-date, we have announced or completed over $37 million of non-core asset sales and during the second quarter we repaid approximately $20.0 million on our Senior Credit Facilities, increasing our available liquidity." – Jeremy Baines, CEO.