Tidewater Midstream & Infrastructure Ltd. · TSX:TWM
Tidewater Midstream & Infrastructure — Merger or Acquisition (June 2015)
20 slides from Tidewater Midstream & Infrastructure's merger presentation, Jun 2, 2015
Slide 1: Strategic Acquisition and Concurrent Equity Financing
Strategic Acquisition and Concurrent Equity Financing June 2, 2015
Slide 2: Forward Looking Information
Forward Looking Information Advisory In the interests of providing Tidewater Midstream and Infrastructure Ltd. (“Tidewater” or the “Corporation”) shareholders and potential investors with information regarding Tidewater, including management’s assessment of future plans and operations relating to th
Slide 3: Tidewater Company Review
Tidewater Company Review @ TIDEWATER
Slide 4: Tidewater Is A High Growth Midstream Company
Tidewater Is A High Growth Midstream Company IPO on April 15, 2015, TWM on TSX-V; current market cap: $19 MM ($1.56 per share) Strategy to capitalize on Canadian natural gas liquids (“NGLs”) market opportunities through acquisition of strategic midstream, pipeline, storage, rail and export asset
Slide 5: Board & Management Has A Strong Track Record
Board & Management Has A Strong Track Record Energetic and motivated team, which has previously achieved 20 fold returns in prior companies; most recently, Predator Midstream Ltd. (crude-by-rail) and Predator Oil Ltd. (upstream oil)1 Capitalizing on Management’s strong producer and downstream ma
Slide 6: Predator Midstream Ltd. Case Study
Predator Midstream Ltd. Case Study Prior entity of Tidewater team demonstrated exceptional returns while earning an outstanding reputation with producers and customers Q1 2013: July 2013: January 2014: March 2014: Developed and Moved 5,000 bbls/d As a result of Moving 15,000 bbls/d honed in-house of
Slide 7: Acquisition and Financing
Acquisition and Financing @ TIDEWATER
Slide 8: Acquisition Financing – Summary of Terms & Pro Forma Tidewater Summary
Acquisition Financing – Summary of Terms & Pro Forma Tidewater Summary Equity Financing Offering Terms Pro Forma Tidewater Summary Tidewater Midstream and Vertically integrated operator of NGL / gas Issuer Infrastructure Ltd. infrastructure assets with connectivity to both upstream producers and
Slide 9: Strategic Acquisition of a Deep Cut Gas Processing Facility
Strategic Acquisition of a Deep Cut Gas Processing Facility Tidewater has acquired a 63% operated working interest in a deep cut gas processing facility in the West Pembina of Alberta , including related pipelines for $180 MM (the “Acquisition” or “Acquired Facility) The West Pembina region is a
Slide 10: Acquisition Investment Highlights
Acquisition Investment Highlights ~C$28 MM of EBITDA with enhancement potential through optimization and growth Strong Cash Flow ~70% of facility EBITDA contracted under take-or-pay contracts ranging from 3 to 10 Profile years backed by credible counterparties / producers Acquisition at 6.5x E
Slide 11: Highly Contracted Acquisition With ~70% EBITDA From Take or Pay
Highly Contracted Acquisition With ~70% EBITDA From Take or Pay The Acquired Facility has been operating at or near-capacity over the past twelve months ~70% of facility EBITDA contracted under take-or-pay contracts ranging from 3 to 10 years backed by credible counterparties / producers Addit
Slide 12: Highly Economic Production Area Attracting Significant Capital Investment
Highly Economic Production Area Attracting Significant Capital Investment from Diverse Producer Universe From January to March, 2015 there have been 231 rigs released Significant Drilling 165 wells licensed in the area over the past 6 months1 Activity: 14 Producers >30 Top drillers in the area
Slide 13: Strong Area Production Growth
Strong Area Production Growth 230 wells were drilled in 2014 which increased area production additions by 25% over 2013 Though gas production in the area has historical come primarily from the Cardium, year-over-year growth of 25% has largely come from the Mannville plays such as the Spirit Rive
Slide 14: Production in Area Continues to Grow From Diverse Producer Group
Production in Area Continues to Grow From Diverse Producer Group Liquids rich gas production by large producers driving strong demand for deep cut facilities 15+ producers have active production in the area No single producer dominance Area Production Profile – Top 15 Producers1 1,200 1,000 Da
Slide 15: Acquisition Lays Footprint for Near-term Growth
Acquisition Lays Footprint for Near-term Growth Acquisition provides platform for Tidewater growth and dividend Tidewater pursuing a number investment opportunities to build on the Acquisition Acquisition optimization Additional potential larger scale infrastructure investments Other M&A o
Slide 16: Tidewater Pro Forma Capital Structure
Tidewater Pro Forma Capital Structure Pro Forma Enterprise Value of ~$210 MM Zero debt expected with the execution of the Underwriters’ Option, with available debt capacity based on infrastructure assets Tidewater Current and Pro Forma Capitalization Shareholdings Pro Forma Pro Forma Post IPO (A
Slide 17: Rights of Action for Damages or Rescission
Rights of Action for Damages or Rescission The following statutory rights of action for damages or rescission will only apply to a purchaser of securities of Tidewater in the event that this corporate presentation is deemed to be an offering memorandum pursuant to applicable securities legislation i
Slide 18: Rights of Action for Damages or Rescission
Rights of Action for Damages or Rescission Such rights of rescission and damages are subject to certain limitations including the following: (a) if the purchaser elects to exercise its right of rescission against the issuer, it shall have no right of action for damages against that party; (b) in an
Slide 19: Notice to Investors
Notice to Investors All purchasers of securities will be required to execute a subscription agreement, which will contain representations, warranties, covenants and acknowledgments of the purchasers required by the relevant regulatory authorities, Tidewater and any agents or underwriters under the o
Slide 20: Contact Information
Contact Information Tidewater Midstream and Infrastructure Ltd. 1110, 505 3rd Street S.W. Calgary, AB T2P 3E6 Phone: +1 (403) 880-2969 Fax: +1 (403) 770-8295 www.tidewatermidstream.com Joel MacLeod Chairman, President & CEO Email: jmacleod@tidewatermidstream.com 20
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