Tidewater Midstream and Infrastructure (TSE:TWM) and Tidewater Renewables Ltd. used a joint fourth-quarter 2025 earnings call to outline recent operational performance, regulatory developments tied to renewable fuels, and a 2026 outlook that management said is geared toward higher utilization and significant debt reduction.
Canadian biofuels incentive and potential Clean Fuel Regulation changes
Management highlighted federal policy support for domestic biofuels production. The company said the Government of Canada announced a CAD 370 million Biofuels Production Incentive program on Sept. 5, 2025, aimed at addressing economic challenges stemming from U.S. subsidies and policies. Tidewater Renewables said it received program details in December 2025 and expects the program to provide non-repayable cash support from January 2026 through December 2027.
The company also pointed to the federal government’s intention to pursue targeted amendments to the Clean Fuel Regulations. Management said two concepts are being evaluated:
- A minimum renewable domestic content approach, similar to a policy implemented by the Government of British Columbia in early 2025.
- A credit multiplier approach that would grant domestically produced low-carbon fuels a higher ratio of CFR emission credits than imported fuels.
Management said Tidewater supports both approaches and believes it is well-positioned to benefit if either—or a combination—are implemented.
Renewables: HDRD turnaround impacted Q4, utilization rebounded in early 2026
On operations at the HDRD Complex, management said a planned turnaround followed by equipment failure reduced throughput to 48% of design capacity in the fourth quarter of 2025. The company said the repair was completed on Dec. 12, 2025, and utilization was “near nameplate capacity” during the first few months of 2026.
In the financial review, management attributed weaker quarterly results at Tidewater Renewables to the extended turnaround and repair work. For the fourth quarter of 2025, Tidewater Renewables reported a net loss of CAD 13.8 million, compared with a net loss of CAD 3.4 million in the fourth quarter of 2024. Adjusted EBITDA was CAD -3.8 million versus CAD 6.1 million a year earlier. Management said results were impacted by lower sales volumes and lower contributions from equity investments.
Midstream: Prince George Refinery margins, pipeline integration, and commercial agreements
At Tidewater Midstream, management discussed a mix of regulatory agreements, integration work, and market conditions supporting refining economics.
During the quarter, Tidewater Midstream said it executed two initiative agreements with the Government of British Columbia to provide BC LCFS credits supporting production of low-carbon renewable diesel and renewable gasoline from hydrotreater and FCC coprocessing units at the Prince George Refinery. Management said the credits are expected to fund a “significant portion” of renewable feedstock costs for the next two years at rates up to 300 barrels per day for each unit. In addition, the company said selling coprocessed low-carbon transportation fuels into the British Columbia market is expected to generate CFR emission credits and additional BC LCFS credits.
On integration activities, management said it took full operational control of the acquired Western Pipeline system during the fourth quarter of 2025 and expects to fully realize previously announced synergies and CAD 10 million to CAD 15 million in annual cost savings.
The company also highlighted long-term commercial agreements announced in January 2026 for the Brazeau River complex (BRC). Under the agreements, Tidewater will process up to 75 million cubic feet per day of natural gas from dedicated producer facilities and will receive marketing rights to ethane, propane, and butane for initial terms of approximately five years.
Operationally at the Prince George Refinery, throughput averaged 10,809 barrels per day in the fourth quarter, a 5% increase from the third quarter of 2025. Management said semi-annual heat exchanger cleaning was completed in October, and throughput averaged about 11,900 barrels per day in November and December. Refined product margins improved, with the Prince George crack spread averaging $94 per barrel in the fourth quarter versus $90 per barrel in the third quarter.
Management said refined product market conditions improved further early in 2026, noting the crack spread averaged $94 per barrel in January and $98 per barrel in February. In March, the company said the crack spread widened further due to the ongoing conflict in Iran, averaging $113 per barrel month-to-date at the time of the call.
Across broader midstream operations, throughput at the BRC gas processing facility averaged 102 MMcf/d in the fourth quarter, down from 124 MMcf/d in the third quarter, driven largely by lower straddle volumes. The Ram River Gas Plant remained temporarily curtailed while sulfur handling continued; management said current market prices for natural gas and sulfur are “highly economic” for sour gas producers and that its intent is to restart the gas plant when production in the area resumes.
Non-core asset sales and interest in data center repurposing
Management said it continues to advance a non-core asset sales program. During the period, the Sylvan Lake gas processing facility was sold on Oct. 21 for CAD 5.5 million in cash proceeds, and the company received the final CAD 1.5 million of proceeds from the sale of BRC roads in December 2025. Management added that in February 2026, Tidewater Renewables received CAD 2.1 million as final proceeds from the sale of the Renewable Natural Gas Partnership.
In the Q&A, management said it remained on track to hit the non-core asset sale target it provided last year, though timing has taken longer due to complexity. Management said it was in “deep discussions” around a significant asset, with three non-binding letters of intent and work underway to move to one binding LOI. It also described another asset at a similar negotiation stage, with hopes to provide an update early in the second quarter. Management also noted growing market interest in repurposing energy sites for data center developments.
2026 guidance, hedging strategy, and amended credit facility
Management issued 2026 guidance calling for consolidated adjusted EBITDA of CAD 150 million to CAD 170 million, with consolidated capital expenditures of CAD 20 million to CAD 25 million (growth and maintenance) net of capitalized BC LCFS credits received under the SAF initiative agreement. Tidewater Renewables guided to annual adjusted EBITDA of CAD 80 million to CAD 90 million and capital expenditures of CAD 2 million to CAD 3 million. The company said the consolidated EBITDA guidance range represents roughly a 400% increase from 2025’s actual consolidated adjusted EBITDA.
Management said the 2026 outlook assumes HDRD production of 150 million to 170 million liters of renewable diesel expected to qualify for the federal CAD 0.16 per liter incentive, while the Prince George Refinery is expected to benefit from strong utilization, operational efficiencies, and cost reductions tied to the Western Pipeline integration. Management also referenced benefits expected from restarting crude processing units through reduced compliance costs and said the previously announced initiative agreements would help fund renewable feedstock procurement. The BRC outlook includes contributions from recently executed gas handling and NGL supply and fractionation agreements. Guidance does not include any EBITDA from a Ram River restart.
Management also described a hedging program initiated in early March. Tidewater Midstream said it had layered on 2-1-1 crack spread hedges for about 50% of forecast production from April through December 2026, and management said Tidewater Renewables was hedged on about 50% of HDRD Complex revenue and feedstock purchases for the balance of 2026. In the Q&A, management said the program was designed to underpin cash flows and support near-term leverage reduction goals, describing it as more “special” than a typical approach, particularly while the company focuses on debt repayment.
On the balance sheet, management said it expects 2026 cash flow—after capital and interest—to be directed primarily to debt reduction, with additional potential deleveraging from non-core asset sales. In response to a question about unusual working capital or non-recurring items, management said there was “nothing unusual” to call out.
Finally, management said it amended its senior credit facility on March 23, 2026, extending maturities on the CAD 50 million operating facility and the CAD 125 million syndicated facility from September 2026 to August 2027. Management said covenant ratios for Q1 2026 were amended to provide additional flexibility, and that covenants for the first three quarters of 2026 will be calculated on an annualized basis rather than trailing twelve months to reflect the expected step-change in 2026 results.
About Tidewater Midstream and Infrastructure (TSE:TWM)
Tidewater Midstream and Infrastructure Ltd is a Canadian company that is engaged in providing midstream infrastructure and a natural gas storage facility. It mainly focuses on the purchase, sale, and transportation of Natural Gas Liquids (NGLs) such as propane and natural gasoline throughout North America and export to premium markets. The business activities of the company include gathering, processing, and transportation relates to raw gas gathering systems, processing plants and pipelines, NGL marketing and Extraction, refined products, and other activities.
