Tidewater Renewables Ltd. · TSX:LCFS
Tidewater Renewables — Investor Presentation (April 2022)
27 slides from Tidewater Renewables's investor presentation, April 2022
Slide 1: Tidewater Renewables Ltd. Investor Presentation
Tidewater Renewables Ltd. Investor Presentation April 2022
Slide 2: Disclaimers
Disclaimers ADVISORIES AND CAUTIONARY STATEMENTS CAUTIONARY NOTE: This presentation includes forward-looking statements or information (collectively referred to herein as “forward looking statements”) within the meaning of applicable securities legislation. The information contained in this document
Slide 3: Disclaimers (Continued)
Disclaimers (Continued) USE OF NON-GAAP MEASURES: This presentation refers to “EBITDA” and “Run Rate EBITDA”, which do not have any standardized meanings prescribed by generally accepted accounting principles in Canada (“GAAP”) and as such, may not be comparable to similar measures presented by othe
Slide 4: Tidewater Renewables Overview
Tidewater Renewables Overview CORPORATE SNAPSHOT Investment Highlights Capitalization Share Price1 ($/sh) $12.15 ✓ Renewables business with significant government support, strong economics on projects and contracted cash flow Shares Outstanding (MM) 34.7 ✓ Focused on the production of renewable Mark
Slide 5: Strategic Renewable Natural Gas and Feedstock Partnership
Strategic Renewable Natural Gas and Feedstock Partnership TRANSACTION SUMMARY On April 4, 2022, Tidewater Renewables Ltd. (“TWR”) (TSX: LCFS) entered into a strategic renewable natural gas and feedstock partnership (the “Partnership”) with Rimrock RNG Inc. (“Rimrock”) and Rimrock Cattle Company Ltd.
Slide 6: Strategic Renewable Natural Gas and Feedstock Partnership
Strategic Renewable Natural Gas and Feedstock Partnership STRATEGIC BENEFITS Material government support and expected investment grade offtakes deliver contracted cash flow base with strong rates of return Project sequencing will allow future projects to be self-funded via prior asset cash flow,
Slide 7: Strategic Renewable Natural Gas and Feedstock Partnership
Strategic Renewable Natural Gas and Feedstock Partnership ASSET SUMMARY ▪ Project Overview ▪ Partnership plans to begin construction on their first Projects 1 – 3 development to Alberta-based RNG Facility at High River (the “High River LCFS Passed & in effect focus in Alberta Likely future LCFS Faci
Slide 8: Strategic Renewable Natural Gas and Feedstock Partnership
Strategic Renewable Natural Gas and Feedstock Partnership PARTNERSHIP GOVERNACE ▪ TWR will serve as operator of RNG Partnership ▪ Partnership to benefit from TWR’s existing gas processing and marketing expertise which is expected to drive operational efficiencies Operations ▪ RCC will serve as opera
Slide 9: Tidewater Renewables Ltd.
Tidewater Renewables Ltd. A CANADIAN ENERGY TRANSITION LEADER WITH A FOCUS ON RENEWABLE FUELS Tidewater Renewables Asset Map ▪ Tidewater Renewables is an energy transition company 1 2 3 Prince George Brazeau River Ram River focused on the production of low carbon intensity fuels Existing Assets: Exi
Slide 10: Tidewater Renewables Business Model is Underpinned by 3 Products
Tidewater Renewables Business Model is Underpinned by 3 Products NEW ENERGY TRANSITION PLATFORM CATERS TO A GROWING GLOBAL DEMAND BASE Multi-faceted green energy platform with Renewable Diesel Near-Term1,2 Long-Term1,2 strong ESG attributes 13.4B Gallons 18.0B Gallons ✓ Deliver Carbon Intensity ("CI
Slide 11: Tidewater Renewables Overview
Tidewater Renewables Overview BUSINESS OVERVIEW Existing Business + Funded Growth Future Growth ▪ Portfolio of assets currently operating, near completion or ▪ Significant future growth opportunities significantly progressed/de-risked 1 1 Base Business Base Business Growth ▪ Acquisition of existing
Slide 12: Renewable Diesel Refinery and Associated Renewable Hydrogen
Renewable Diesel Refinery and Associated Renewable Hydrogen PROJECT OVERVIEW: FLAGSHIP ASSET RECEIVED FID WITH CONSTRUCTION COMMENCED IN Q3 2021 Renewable Diesel Refinery co-located at the Prince George Refinery ▪ Utilizes renewable feedstocks to produce Renewable Diesel ▪ Project includes an over-b
Slide 13: Co-Processing Project Overview
Co-Processing Project Overview CO-PROCESSING PROJECTS Co-Processing Projects utilize existing refinery process units to blend in biogenic feedstocks and produce renewable products ▪ Canola Co-Processing: Project blends canola oil as feedstock directly into the Unifiner at PGR to produce renewable di
Slide 14: Summary of Capital Projects
Summary of Capital Projects IMPACTFUL PORTFOLIO OF CAPITAL PROJECTS DEVELOPED IN-HOUSE AT VARIOUS STAGES OF DEVELOPMENT Gross Net Run Rate Namplate CI Project Name Term Capex Capex EBITDA ISD Feedstock Primary End Product Capacity Reduction5 ($MM) ($MM) ($MM) Canola Co-Processing Near-term 300 bbl/d
Slide 15: EBITDA Summary
EBITDA Summary CASH FLOW PROFILE ANCHORED BY BASE BUSINESS EBITDA VIA INTIAIL DROP-DOWN AND NEAR-TERM CAPITAL PROJECTS Tidewater Renewables is expected to provide material EBITDA generation and organic EBITDA growth from existing assets, and impactful capital projects ▪ Base business cash flow from
Slide 16: Growth Opportunities Beyond 2023
Growth Opportunities Beyond 2023 PROJECT PIPELINE WITH MATERIAL ADDITIONAL GROWTH OPPORTUNITIES Renewable Diesel Business Unit - Other Potential Growth Projects Hydrogen Business Unit - Other Potential Growth Projects Renewable Gasoline Project Renewable Hydrogen Project #2 ▪ Capex: ~$350 million (~
Slide 17: Investment Highlights
Investment Highlights MULTIFACETED GREEN ENERGY PLATFORM PROVIDING LOW CARBON INTENSITY FUELS Renewables Business with Significant Government Support, Strong Economics on Projects and Contracted Cash Flow ▪ Anticipate receipt of approximately $120 million in government funding through multiple agree
Slide 18: Tidewater Renewables Leadership Team
Tidewater Renewables Leadership Team SUCCESSFUL TRACK RECORD OF EXECUTING LARGE SCALE PROJECTS Tidewater Renewables Reduces Corporate G&A via a Shared Services Agreement with Tidewater Midstream ▪ Shared services to cover accounting, financial, tax, legal, office administration, IT, human resources
Slide 19: Board of Directors of Tidewater Renewables
Board of Directors of Tidewater Renewables EXPERIENCED BOARD OF DIRECTORS WITH INDEPENDENCE FROM TIDEWATER MIDSTREAM Joel MacLeod, CA ▪ Director and Chairman of Tidewater Midstream since February 2015 Executive Chairman, ▪ Chief Executive Officer of Tidewater Midstream since April 2015 Chief Executi
Slide 20: Appendix: Supplemental Information
Appendix: Supplemental Information 20
Slide 21: Global Commodity Forecast
Global Commodity Forecast MARKET FUNDAMENTALS SUPPORTING EMERGING RENEWABLE VERTICALS Renewable Diesel Hydrogen Renewable Natural Gas ▪ Advantages over biofuel and identical properties ▪ Involves the processing, storage and/or ▪ Involves projects that capture gas from to fossil fuel based diesel tra
Slide 22: Infrastructure and Logistics
Infrastructure and Logistics BALANCED OFFERING ACROSS THREE LOCATIONS WITH SUPERIOR MARKET CONNECTIVITY 1 Prince George Refinery Existing Assets Connected to All Major Markets in N.A. Existing Logistics Deep Infrastructure Expertise Relationships Renewable Diesel Refinery: existing renewable tankage
Slide 23: Renewable Diesel Overview
Renewable Diesel Overview LIFE-CYCLE CARBON INTENSITY In fact, by just filling the tank, the engine will generate ~80-90%1 reduction in CO2 compared to regular fossil fuel-based diesel 1. Based on Life Cycle Assessment done by (S&T)2 Consultants Inc. and specific to Tidewater’s renewable diesel proj
Slide 24: Carbon Reduction Credits Overview
Carbon Reduction Credits Overview Canada United States CFS RIN Clean Fuel Standard (“CFS”) – initiated by the Canadian federal Renewable Identification Numbers (“RIN”) – issued by the U.S. government to pursue a Canada-wide clean fuel standard and is expected Environmental Protection Agency and the
Slide 25: Canadian Clean Fuel Standard (CFS)
Canadian Clean Fuel Standard (CFS) The CFS is expected to be implemented in 2023 to reduce the carbon intensity (CI) of Canada CFS CI Reduction Requirements1 fuels across the country ▪ The CFS expects to mandate liquid fuel distributors to lower the carbon emission 100 intensity of their products, w
Slide 26: BC Low Carbon Fuel Standard (BC LCFS)
BC Low Carbon Fuel Standard (BC LCFS) The BC-LCFS was originally introduced in 2010 to reduce the carbon intensity (CI) of BC LCFS Credit Price History1 fuels used in the province1 Year Minimum2 Average2 Maximum ▪ Applies to all fuels used for transportation in BC except for fuel used by aircraft 20
Slide 27: Review of HDRD Prices Across Different Markets
Review of HDRD Prices Across Different Markets ▪ Total renewable diesel sale values (comprised of the diesel sale price and government incentives that producers receive) in California, Oregon and BC are currently US$8.15 per gallon, US$8.38 per gallon and US$7.68 per gallon, respectively ▪ BC fuel b
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