TIDEWATER MIDSTREAM AND INFRASTRUCTURE LTD. ANNOUNCES LONG-TERM GAS HANDLING AND NGL SUPPLY AND FRACTIONATION AGREEMENTS AT THE BRAZEAU RIVER COMPLEX

Executive Summary

• Tidewater Midstream entered into long‑term agreements to process up to 75 MMcf/d of natural gas at the Brazeau River Complex (BRC) for an initial five‑year term, with an evergreen extension option.
• The agreements grant Tidewater marketing rights to ethane, propane and butane produced from the processing, and fix processing/NGL handling fees at current market rates subject to annual inflation adjustments.
• The BRC’s capacity is heavily contracted; Tidewater continues discussions to fill remaining capacity, indicating potential future revenue growth.

Key Details

• Processing Volume: Up to 75 MMcf/d total (≈65 MMcf/d renewed contracts + ≈10 MMcf/d newly contracted volumes).
• Agreement Term: Initial term of approximately five (5) years; evergreen thereafter.
• Fees: Processing and NGL handling fees set at current market rates, fixed for the agreement term with annual inflationary adjustments.
• Marketing Rights: Tidewater will receive rights to market ethane, propane, and butane derived from the processed gas.
• BRC Capacity Overview:
• 180 MMcf/d deep‑cut natural gas processing capacity.
• ~10,000 bbl/d NGL fractionation capacity.
• Multiple pipeline connections for NGL and condensate, truck loading/offloading facilities, natural gas storage, and two gas transportation links.
• Strategic Impact: Provides a stable, long‑term volume feed to the BRC, enhancing utilization of its processing and fractionation assets.
• Future Outlook: Management indicates ongoing discussions with additional parties to contract remaining BRC capacity, suggesting potential incremental volumes beyond the current agreements.

Notable Quotes

“These are important agreements for Tidewater as they provide significant natural gas volume to the BRC from dedicated facilities on a long‑term basis. The BRC processing and fractionation capacity is highly contracted and discussions are ongoing with multiple interested parties to contract the remaining capacity at the BRC,” – Jeremy Baines, Chief Executive Officer.