Tidewater Midstream & Infrastructure Ltd. · TSX:TWM
Tidewater Midstream & Infrastructure — Investor Presentation (January 2016)
20 slides from Tidewater Midstream & Infrastructure's investor presentation, January 2016
Slide 1: Tidewater Midstream and Infrastructure Ltd. January 2016
@ TIDEWATER Midstream and Infrastructure Lid. January 2016
Slide 2: Forward Looking Information Advisory
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 Is A Newly Formed, High Growth Midstream Company
Tidewater Is A Newly Formed, High Growth Midstream Company… NGL Connectivity Strategy Key NGL/gas infrastructure and gas Acquire Strategic plants with proximity to multiple 1 Contracted transportation options, coupled with Infrastructure take-or-pay and/or reserve dedication agreement Any and al
Slide 4: A Low-Risk Attractive Investment Opportunity
... That Currently Provides a Low-Risk Attractive Investment Opportunity Attractive Investment Opportunity Very Conservative Maintaining a low-risk and highly flexible Pro forma <1x net debt / EBITDA and 1 capital structure Capital Structure payout ratio of <50% Asset vendors committed to forward
Slide 5: Commitment to the NGL Value Chain And Execution of Business Plan
Commitment to the NGL Value Chain And Execution of Business Plan Tidewater will aggressively grow its NGL business through both organic opportunities as well as acquisitions P Closed initial public offering April 2015 Closed acquisition of initial 185 MMcf/day deep cut gas plant P within liqui
Slide 6: Tidewater Summary
Tidewater Summary Track Record of Success Proven team can leverage upstream and downstream relationships and partner with producers to share upside with NGL pricing while securing take-or-pay or reserve dedication volume contracts Former Predator Midstream management and board of directors (so
Slide 7: 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 Team Member Position Background Founding CEO of Predator Oil L
Slide 8: Adding Value Through All Parts of the Value Chain
Adding Value Through All Parts of the Value Chain Tidewater Owned Future Potential Third-Party 8
Slide 9: Tidewater Facilities and Connectivity
Tidewater Facilities and Connectivity Tidewater Owned Future Potential Third-Party Sexsmith Gas Plant Seal Gas Plant Goodfare Gas Plant Knopcik Gas Plant Villeneuve Extraction Plant Fort Saskatchewan Extraction Plant BRC Gas Plant Edmonton Golden Spike Gas Plant Calgary 9
Slide 10: January Acquisition Forming Backbone of Tidewater NGL and Natural Gas Network
January Acquisition Forming Backbone of Tidewater NGL and Natural Gas Network On January 4, Tidewater announced the acquisition of three 100% owned and operated gas/natural gas liquids extraction facilities with deep cut processing capacity of 142 MMcf/day in addition to 250 km of pipelines and ke
Slide 11: Production in Area of Oct. 15th Acquisition Continues to Grow
Production in Area of Oct. 15th Acquisition Continues to Grow From Diverse Producer Group Production still growing in depressed pricing environment, indicating strong play economics Area production dominated by Encana (ECA), with other producers such as Birchcliff (BIR), Advantage (AAV) and ARC
Slide 12: Overview of Original July 2015 Strategic Acquisition of a Deep Cut Gas Processing Facility
Overview of Original July 2015 Strategic Acquisition of a Deep Cut Gas Processing Facility In July 2015, Tidewater closed the acquisition of a 63% operated working interest in a deep cut gas processing facility (BRC) in the West Pembina region of Alberta, including related pipelines for $180 MM
Slide 13: Production in Area of Original Acquisition Continues to Grow
Production in Area of Original Acquisition 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 Bellatrix leads area production
Slide 14: Tidewater Is A High Growth Midstream Company
Tidewater Is A High Growth Midstream Company Tidewater adding significantly to shareholder value on a per share basis EBITDA increased from zero to $25 MM after the first acquisition; 23% EBITDA growth since Cash flow per share increased from zero to $0.14/share after the first acquisition; 21
Slide 15: Tidewater Relative Performance
Tidewater Relative Performance Tidewater Relative Performance (Total Return Since Inception)1,2 120 Tidewater S&P/TSX Composite 100 TSX Energy 80 Cdn Midstream Index US Midstream MLP Index 60 46 Return (%) 40 TWM IPO @ 20 $1.00/share 0 (15) (20) (25) (29) (40) (34) (60) Apr-15 Jun-15 Jul-15 Sep-15 M
Slide 16: Tidewater Midstream Trading Comparables
Tidewater Midstream Trading Comparables Tidewater’s TEV/EBITDA multiple is reduced to 7.0x based on $40 million 2016E H2 run-rate EBITDA Tidewater Midstream Trading Comparables Share Market Enterprise 16E/'15E EBITDA EV/EBITDA '16E Payout Dividend CAFD Net Debt / Debt/ Credit 1 1,2 2,3 4 4 4 5 4 C
Slide 17: Tidewater Corporate Profile
Tidewater Corporate Profile Stock Symbol TSXV: TWM Common Shares Outstanding 175.9 million Options and RSU‘s 3.8 million Insider Ownership (Fully Diluted) ~5.3% Market Capitalization(1) $253 million Current Net Debt $25 million Enterprise Value $278 million Total Midstream Processing 700 MMcf/day /
Slide 18: 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 19: 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 20: 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
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