Tidewater Midstream & Infrastructure Ltd. Investor Presentation

Transcription

1 TWM Brazeau River Complex October 207 Tidewater Midstream & Infrastructure Ltd. Investor Presentation October 208 TSX: TWM

2 Disclaimer Forward Looking Information 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 the Corporation, this document contains certain statements and information that are forward-looking statements or information within the meaning of applicable securities legislation, and which are collectively referred to herein as forward-looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe", "plan", "intend" and similar expressions are intended to identify forward-looking statements. Forward-looking statements are often, but not always, identified by such words. Forward-looking statements in this document include, but are not limited to statements and tables (collectively statements ) with respect to: plans to construct a natural gas pipeline from the BRC to TransAlta s Sundance and Keephills power plants, expected cost of such project and associated take or pay agreement; potential egress and demand options including for petrochemical, technology, industrial and power use; infrastructure plans with respect to the proposed Pipestone Montney Sour Deep Cut Gas Plant including its potential expansion; plans with respect to natural gas storage infrastructure; expectations to execute definitive agreements related to letters of intent and term sheets that Tidewater has executed with counterparties; the potential to connect newly acquired infrastructure to BRC and provide customers with a new large scale egress solution; projections to increase long term contracts and diversify to customers with strong balance sheets; plans to connect Tidewater s Montney assets to its Edmonton infrastructure/egress hub; future commitments regarding gas storage; projections regarding the East Duvernay play including industry participation and results therefrom; benefits generated from an integrated processing and infrastructure network; current and future delivery of crude oil by rail; and anticipated EBITDA therefrom; the increasing relevance of Tidewater s Deep Basin network, driving utilization and EBITDA growth upward; anticipated margin improvements for Tidewater s Edmonton assets resulted from the reduction of certain fees, costs and tariffs; Tidewater s plans to build out its Edmonton Energy Hub over the next two to three years and the potential to add propylene, polypropylene and iso-octane production; projections regarding future development of certain resource plays including Duvernay; anticipation of significant improvement in margins by eliminating third party rail transloading fees, eliminating trucking costs and reduced pipeline tariffs at the Acheson facility; target annual EBITDA/share growth over the next 24 months and target EBITDA levels; subsequent acquisitions and strategies for acquisitions, capital projects and expenditures; strategic initiatives; anticipated producer activity and industry trends; and anticipated performance. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, as well as known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur and which may cause Tidewater s actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by the forward-looking statements. These assumptions, risks and uncertainties include, among other things: receipt of third party, regulatory and governmental approvals and consents; Tidewater s ability to successfully implement strategic initiatives and whether such initiatives yield the expected benefits; failure to consummate definitive agreements related to contemplated projects; future operating results; the availability of capital to fund future capital requirements relating to existing assets and projects; the amount of future liabilities relating to lawsuits and environmental incidents and the availability of coverage under the Corporation s insurance policies; risks and liabilities arising from derailments; fluctuations in the supply and demand for natural gas, natural gas liquids ( NGLs ), and iso-octane; assumptions regarding commodity prices; demand for potential egress options; activities of producers, competitors and others; the weather; assumptions around construction schedules and costs, including the availability and cost of materials and service providers; fluctuations in currency and interest rates; credit risks; marketing margins; potential disruption or unexpected technical difficulties in developing new facilities or projects; unexpected cost increases or technical difficulties in constructing or modifying processing facilities; Tidewater s ability to generate sufficient cash flow from operations to meet its current and future obligations; its ability to access external sources of debt and equity capital; changes in laws or regulations or the interpretations of such laws or regulations; political and economic conditions; that any required commercial agreements can be negotiated and completed; and other risks and uncertainties described from time to time in the reports and filings made with securities regulatory authorities by Tidewater. Readers are cautioned that the foregoing list of important factors is not exhaustive. The forward-looking statements contained in this document are made as of the date of this document or the dates specifically referenced herein. For additional information please refer to Tidewater s public filings available on SEDAR at All forward-looking statements contained in this document are expressly qualified by this cautionary statement. Any financial outlook or future-oriented financial information, as defined by applicable securities legislation, has been approved by management of Tidewater as of August 8, 208. Financial outlook or future-oriented financial information is provided for the purpose of providing information about management's current expectations and goals relating to the future of Tidewater. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The purpose of the future oriented financial information contained herein including but not limited to future periods, of pro forma EBITDA, annualized EBITDA, forward looking net debt, 208 EV/EBITDA and EV/EBITDA 209E is to assist investors, shareholders, and others in understanding certain financial metrics relating to expected future financial results for the purpose of evaluating the performance of Tidewater's business for future periods. This information may not be appropriate for other purposes. The results and conclusions of these assessments, along with the known and unknown risks, uncertainties and other factors referred to above, could impact Tidewater's estimates and the information related to such future periods contained herein and any such impact could be material. Non-GAAP Financial Measures This presentation refers to EBITDA and Adjusted EBITDA, which do not have any standardized meaning prescribed by generally accepted accounting principles in Canada ( GAAP ). EBITDA is calculated as income or loss before interest, taxes, depreciation and amortization. Adjusted EBITDA is calculated as EBITDA adjusted for incentive compensation, unrealized gains/losses, non-cash items, transaction costs and other items considered non-recurring in nature. Annualized EBITDA is calculated as the Corporation s EBITDA over a 2-month period. Tidewater Management believes that EBITDA and Adjusted EBITDA provide useful information to investors as they provide an indication of results generated from the Corporation s operating activities prior to financing, taxation and non-recurring/non-cash impairment charges occurring outside the normal course of business. Management utilizes Adjusted EBITDA to set objectives and as a key performance indicator of the Corporation s success. In addition to its use by Management, Tidewater also believes Adjusted EBITDA is a measure widely used by securities analysts, investors and others to evaluate the financial performance of the Corporation and other companies in the midstream industry. Investors should be cautioned that EBITDA and Adjusted EBITDA should not be construed as alternatives to earnings, cash flow from operating activities or other measures of financial results determined in accordance with GAAP as an indicator of the Corporation s performance and may not be comparable to companies with similar calculations. For more information with respect to financial measures which have not been defined by GAAP, including reconciliations to the closest comparable GAAP measure, see the Non-GAAP and Additional Measures section of Tidewater s most recent MD&A which is available on SEDAR. 2

3 Tidewater Summary High Growth, Canadian NGL, Oil and Natural Gas Midstream and Infrastructure Company Pursuing Canadian natural gas liquids ( NGLs ), oil and natural gas market opportunities through the acquisition and build out of strategic midstream, pipeline, processing, storage, rail, downstream, and export assets. Oil and NGL prices are currently near 36 month highs which is very positive for Tidewater s business plan In late 209 forecasting to have over 80% of EBITDA contracted with take or pay contracts with a weighted average life of over 7 years Executed definitive agreements for a 5 year take-or-pay agreement (30 Mmcf/day) with TransAlta on a new pipeline build from Tidewater s largest natural gas processing facility (Brazeau River Complex ( BRC )) direct to an end market in TransAlta s large power plants in the Edmonton area Sanctioned a proposed 00 MMcf/day Pipestone Montney Sour Deep Cut Natural Gas Gathering and Natural Gas Liquids Processing Complex anchored by two five and a 0 year take-or-pay agreements for 30mmcf/day each. Currently 80% contracted with firm commitments of 80 MMcf/d with the remaining capacity of 5-20 MMcf/d subject to non-binding letters of intent that are expected to be formalized by definitive agreements within 30 days Capitalizing on Management s strong producer and downstream market access relationships, Tidewater can provide producers improved pricing for all their commodities including oil, NGLs and natural gas > 4 acquisitions completed since IPO and realized on opportunity to purchase key midstream assets in strategic locations at deeply discounted valuations Physical assets providing natural cash flow hedge with natural gas storage and extraction plant assets generating significant EBITDA in low gas price environment EBITDA increased from zero at IPO to current run rate of ~$80 million with visibility to ~$20 million in late 209 while maintaining a strong balance sheet with Debt to EBITDA of x when capital projects come online Targeting > 20% annualized EBITDA/share growth over next 24 months EV/EBITDA 209E multiple of 7.6x vs. peer average of.9x* Established three core areas in strategic locations (Deep Basin, Montney and Edmonton) With recently announced Inter-Alberta pipeline network Tidewater has connectivity from the Montney, to the Deep Basin and into Edmonton and continuing to focus on increased connectivity Tidewater continues to expand its Montney core area with the proposed 00 MMcf/day Pipestone Montney Sour Deep Cut Gas Plant which will be connected to its Pipestone Montney infrastructure/egress hub Three pipe connected oil batteries at Valhalla, Brazeau and Edmonton including a large rail facility at Edmonton. Tidewater rapidly building out oil infrastructure and egress/access solutions for producers and refiners Proven Capital Project Execution In December 207, 50 MMcf/day expansion at BRC and the construction of strategic new pipelines from BRC were completed on time and on budget at a combined capital cost of $25 million. The pipelines provide access to a new condensate rich capture area and is supported by a 55,000 acre reserve dedication Commissioned 0,000 bbl/day HD2 propane fractionation facility for $25 million of capital and relocation of deep cut turbo expander to BRC for $5 million ahead of schedule and on-budget on industry leading timeline of seven months * See Disclaimer Forward Looking Information. 3

4 Tidewater is a High Growth Midstream Company Connectivity Strategy Acquire Strategic Contracted Infrastructure Own key NGL, oil and natural gas infrastructure and gas plants with proximity to multiple transportation options, coupled with take-or-pay and/or reserve dedication agreements Tidewater Inter-Alberta pipeline network backed by 5 year take-or-pay with TransAlta. Offers producers direct connectivity from wellhead, through Tidewater s extensive processing network direct to an end market Sanctioned the proposed 00 MMcf/day Pipestone Montney Sour Deep Cut Gas Gathering and Natural Gas Liquids Complex which will connect to Tidewater s Pipestone Infrastructure and egress hub including dual connection to TCPL, Alliance and natural gas storage. Approximately 80% contracted with firm commitments Entered into a six-year firm storage service commitment with an investment grade counterparty at its Pipestone Gas Storage Facility for approximately 5 Bcf of storage capacity 2 Optimize Through Organic Investments Enable Tidewater to own a strategic integrated value chain from well head to end market and/or tidewater Significant opportunities within acquired assets to continue to generate incremental EBITDA at ~ 20% IRR Recent acquisition includes large diameter pipelines in both Montney and Deep Basin core areas and create new egress options for producers Started to deliver crude oil direct to refiners and tidewater markets 3 Increase Capabilities of Infrastructure Increase third party throughput and/or improve liquids capture/pricing of NGLs, oil and natural gas for all related parties Commissioned 0,000 bbl/d fractionation facility on industry leading timeline and cost in 7 months for $25 MM Recently commissioned BRC 50 MMcf/day expansion and new pipeline builds for approximately $25 million Aggressively adding connectivity between three core areas in the Montney, Deep Basin and Edmonton assets 4 Enhance Logistics Network & Market Access Infrastructure Various logistics infrastructure including rail, pipelines and trucking Various port and pipeline infrastructure to get egress to export markets 00 railcar facility at Edmonton constructed on time and on budget Tidewater continues to build out network which includes proven natural gas storage in both the Montney and Deep Basin 4

5 Tidewater Facilities and Connectivity 5

6 Overview of Montney Assets & Sanctioned Pipestone Montney Sour Deep Cut Gas Processing Complex Sanctioned the proposed 00 MMcf/day Pipestone Sour Deep Cut Natural Gas Gathering and Natural Gas Liquids Processing Complex and fully contracted $20 million capital cost online in mid 209 Currently 80% contracted with firm commitments of 80 MMcf/d with the remaining capacity of 5-20 MMcf/d subject to non-binding letters of intent that are expected to be formalized by definitive agreements within 30 days Ten year take-or-pay for 30mmcf/day with Kelt Exploration Five year take-or-pay for 30mmcf/day with Blackbird Energy Five year take-or-pay for 25mmcf/day with large oil and gas producer Seven-and-a-half-year take-or-pay with 2Bcf volume commitment Five year reserve dedication Plan to connect to Tidewater infrastructure/egress hub which provides three natural gas egress options in TCPL, Alliance and natural gas storage Anchor tenants have option to acquire combined 35% working interest Tidewater finished construction of phase one of its TransCanada and Alliance connected infrastructure and related natural gas liquids hub and natural gas storage project on-time and on-budget and is currently injecting natural gas into its natural gas storage facility Entered into a six-year firm storage service commitment with an investment grade counterparty at its Pipestone Gas Storage Facility for approximately 5 Bcf of storage capacity Montney Processing Facilities & Pipelines 6

7 Overview of Edmonton Assets Tidewater has over 800 km of key pipelines and valuable right of ways at Edmonton, 600 acres of heavy industrial land at Edmonton/Fort Saskatchewan, and 3 key extraction plant licenses Edmonton assets provide egress/takeaway options for natural gas, oil and NGL production throughout the Deep Basin and Tidewater is now tied into some of the largest industrial consumers of natural gas in Western Canada Over the next two to three years, Tidewater plans to build out its Edmonton Energy Hub on its 600 acres of heavy industrial land and improve connectivity to major hubs at Edmonton Includes the potential for propylene and polypropylene production and/or iso-octane production. Tidewater has received several expressions of interest from various off-take and joint venture parties that Tidewater management has worked with in the past with respect to these products Tidewater has entered into crude oil storage and transportation agreements with various counterparties, including an investment grade counterparty. Tidewater has currently invested minimal capital in new infrastructure related to crude oil storage and transportation services while also utilizing its existing infrastructure. Based on this minimal capital investment, Tidewater expects to generate approximately 5% - 0% of incremental annualized EBITDA in 209. Edmonton Processing Facilities & Pipelines 7

8 Overview of Deep Basin Assets Definitive agreement on Inter-Alberta pipeline will physically connect Tidewater s largest gas processing complex (BRC) to a large new demand source in TransAlta s Sundance and Keephills power plants and is anchored by a 5 year take-or-pay Final step in a TWM network from wellhead to end market Ability for expansion to ~ 440 Mmcf/day Ability to connect Montney producers to new end market and avoid TCPL restrictions East Duvernay activity continues to increase around Tidewater s Deep Basin assets, with large investment grade entities in addition to some well capitalized private companies like Vesta, Artis and Kiwetinohk Resources Corp (former 7Gen team) becoming increasingly active In March 208, Tidewater announced a five year 7.2 net bcf volume commitment with an investment grade counter party at Ram River In August 208, Tidewater signed an agreement for an incremental 8 Mmcf/day on a five year take-or-pay with the volumes declining approximately 30% per year Commissioned 0,000 bbl/day fractionation facility, capable of HD2 propane, at the BRC 45 days ahead of schedule on industry leading timeline of 7 months at a cost of $25 million Tidewater commissioned 40 MMcf/day deep cut in May 207 on an 8 month schedule for a cost of $5 million, significantly improving NGL recoveries at the BRC BRC egress includes natural storage gas facilities currently capable of injecting approximately 40mmcf/day of natural gas and offering producers improved natural gas pricing option Deep Basin Processing Facilities & Pipelines 8

9 East Duvernay Activity Increasing The Duvernay East Shale Basin has emerged as an attractive earlystage liquids resource play with significant land sales and increased development over the past two years Vesta and Artis were the early entrants into the play, with Vesta buying land previously owned by EOG Resources and Artis exploring the southern trend Given variability and industry experience across other resource plays, expectation that there may be certain sweet spots within the play that are not yet identified Future development appears to be well supported by regional infrastructure and local service providers; degree of future development will dictate extent of localized cost inflation or egress constraints Activity in the area continues to increase around Tidewater s Deep Basin assets, with large investment grade entities in addition to some well capitalized private companies like Vesta, Artis and Kiwetinohk Resources Corp (former 7Gen team) drilling and acquiring land East Duvernay Drilling Activity 9

10 Tidewater has a Solid Infrastructure Business With a Strengthening Contracts and Customer Base Currently > 75% of EBITDA backed by take-or-pay contracts, long term agreements and/or reserve dedications with > 50 customers* Improving significantly into 209 with 90% of EBITDA backed by take-or-pay contracts, long term agreements and/or reserve dedications 5 year take-or-pay with investment grade counterparty in TransAlta Recently sanctioned Pipestone Montney Sour Deep Cut Complex anchored by one 0 year take-or-pay and one 5 year take-or-pay contract Top Customers Utilizing Tidewater Facilities Facility Throughput (MMcf/d) TransAlta TCPL Extraction Producer # Producer #2 Producer #3 Producer #4 Producer #5 Producer #6 Investment Grade NGL Counterparty Investment Grade Producer #8 Producer #9 Producer #0 Producer # Producer #2 Producer #3 Producer #4 Producer #5 Producer #6 Producer #7 Producer #8 5 * See Disclaimer Non GAAP Financial Measures. Approximate gas equivalent volumes Take-or-pay Reserve Dedication Years Remaining Yes No 5 Yes No 0+ No Yes 0 Yes Yes 3 Yes No 5 Yes No 0 Yes No Yes No 6 No Yes 5 Yes No 5 Yes Yes 3 Yes No 5 No Yes n.a. Yes Yes 6 Yes No 7.5 No Yes n.a. Yes Yes 6 Yes Yes 0 Yes No 8 Yes No 4 0

11 Positioned for Organic Growth Outperformance Balance sheet is well positioned to execute on organic growth opportunities Focused on delivering annual > 20% EBITDA/share growth over next 24 months Visibility to ~$20 million of EBITDA in late 209 while maintaining a strong balance sheet with Debt to EBITDA of 2.5x-3.0x when capital projects come online EBITDA Growth $350 $330 $30 $290 $270 $250 EBITDA from previously announced acquisitions Pro Forma EBITDA* Current TWM Status Net Debt $300 $300 $230 $20 C$ Millions $90 $70 $50 $30 $50 $20 $0 $90 $70 $50 $30 $0 ($0) ($5) - $24 $24 $26 $28 $28 $42 ($25) ($7) ($2) $20 $25 $55 $42 $46 $49 ($23) ($2) $20 $50 $54 $54 $56 $58 $54 ($5) ($2) $6 $69 $7 $66 $66 $80 $80 $80 ($30) IPO BRC Acquisition & Financing Pipeline Acquisition Peace River Arch Gas Plant Acquisition Gas Plant & Propane Acquisitions Edmonton Area Infrastructure Acquisition AltaGas Acquisition $80.5 MM Financing Acheson Plant, Land and Pipeline Acquisition and Rail Facility BRC Infra. Acquisition Remaining BRC Interest, Gathering Pipelines, Nat Gas Storage $69 MM Financing NEBC Processing Plant / NGL Trucking Q4 Processing Agreement / Pembina Restrictions Lifted / Fort Saskatchewan Reactivation / 70 MMcf/d Deep Cut + NGL Pipeline Acquisition & Reactivation Fractionation Facility & Relocation of Turbo Expander / BRC Expansion TransCanada and Alliance Connected Infrastructure Acquisition Total Remaining Capital Over Next 8-24 Months Capital Spent/ Required Capital $80 $8 $2 $22 $0 $87 n.a. $7 $5 $30 n.a. $3 $20 $50 $6 $5 $52 $00 $250 2 * See Disclaimer Forward Looking Information. Cash flow for forward looking net debt calculated as EBITDA less growth capex, maintenance capex and dividends*. Net Debt is calculated as current liabilities, plus bank debt and notes payable, less current assets. 2 Capital spending dependent on whether partners exercise option to acquire working interest.

12 High Multiple US Midstream Deals Date Asset Type Buyer Seller Description Value ($MM) EBITDA Multiple Contract Disclosure 7/4/208 Gas G&P Brookfield Enbridge Purchase of Western Canadian natural gas gathering and processing business units - includes 9 natural gas processing facilities with total operating processing capacity of 3.3 Bcf/d and 3,550 km of gathering pipelines $4,30 0.8x ToP 2/6/208 NGL and Gas Pipeline & Fractionation Stonepeak Targa Resources Development JVs on Grand Prix Pipeline, Gulf Coast Express Pipeline and Frac Train $960 - Volume Commitment /8/208 Gas G&P Riverstone Goldman Sachs Lucid Energy Group The JV acquired Lucid Energy II from Lucid Energy, a portfolio company of EnCap Flatrock Lucid II owns,700 miles of gas gathering pipelines and 585 MMcf/d processing capacity in norhern Delaware Basin $,600 - Area Dedication & Volume Commitment /9/207 Crude Pipeline BlackRock 0/2/207 Crude Pipeline GIP NGL Energy Partners SemGroup Corp Energy & Minerals Group Laredo Petroleum Glass Mountain Pipeline (SemGroup 50/NGL 50) $ x ToP & Area Dedication Medallion Pipeline (EMG 5/Laredo 49) $, x Area Dedication 2 3 8//207 Gas Pipeline Blackstone Energy Transfer Partners 32.44% stake in Rover Pipeline $, x ToP 4 6/6/207 Terminal SemGroup Alinda Capital Partners Houston Fuel Oil Terminal Company $2,00 5.0x ToP 5 4/7/207 Gas G&P Blackstone EnCap Flatrock EagleClaw Midstream Ventures $2, x Fee Based 6 2/9/207 Gas Gathering System Williams Partners Western Gas Partners 33.75% stake in Roma and Liberty gathering systems through asset swap $55 6.5x - 7 Source: PLS, Company Filings, Equity Research, Credit Research. Consensus research estimates. 2 Reflects annualized cash flow currently as outlined on conference call. Transcript references high teens multiple with addition of Omega expansion project. 3 Based on annualized H207 adjusted EBITDA. 4 Based on expected first year EBITDA (pro rata). 5 Based on SemGroup guidance 208E EBITDA. 6 Based on 207E EBITDA from Moody's analysis on May 30, Based on Q-Q3 206 annualized adjusted EBITDA. 2

13 Tidewater Corporate Profile Stock Symbol Common Shares Outstanding TSX: TWM ~329 million Insider Ownership (Fully Diluted) ~5.0% Market Capitalization Net Debt 2 Enterprise Value 3 Total Midstream Processing Capacity (gross/net) and Length of Pipelines (gross/net) Replacement Value of Midstream Assets Annual Dividend $456 million $300 million $756 million >.5 Bcf/day / > Bcf/day >4,000 km / >3,000 km > $2.0 billion $0.04/sh. Current Yield 4 ~3.0% The market capitalization is calculated by multiplying the Corporation s share price as at Oct. 2, 208 by the number of common shares outstanding. 2 Net debt is calculated as current liabilities, plus bank debt and notes payable, less current assets. 3 Enterprise Value is calculated as market capitalization plus net debt and is a measure of the Corporation s total value. Enterprise value is not a standard measure under GAAP. 4 Current yield is calculated as annual dividends divided by current share price as at Oct. 2, 208. Current yield is not a standard measure under GAAP. 3

14 Tidewater Summary Tidewater s 208 EV/EBITDA multiple of 9.4x trades at a large discount to its peer mean of 2.0x EV/EBITDA* Tidewater funding two large capital projects that will be commissioned in late 209 where EV/EBITDA is ~7.6x in 209 EBITDA Tidewater Midstream Trading Comparables 7 Tidewater Trading Comparables 9E / 8E Payout Payout Net Debt / Net Debt / Share Market Enterprise EBITDA EV / EBITDA EV / EBITDA Ratio Ratio Dividend CAFD Yield CAFD Yield EBITDA EBITDA Debt/ Credit Company Price Cap. 2 Value 2,3 Growth 4 208E 4 209E 4 208E 4 209E 4 Yield 208E 4,5 209E 4,5 208E 4 209E 4 Total Cap. 6 Rating ($/Sh.) ($MM) ($MM) (%) (x) (x) (%) (%) (%) (%) (%) (x) (x) (%) Enbridge Income Fund Holdings Inc. $3.26 $25,229 $38,904 2%.4x n.a 68% 7% 7.2% 0.6% 0.2% 4.0x 4.x 48% BBB+ Pembina Pipeline Corp. $43.93 $22,36 $34,76 5% 2.3x.7x 56% 54% 5.2% 9.3% 9.6% 3.7x 3.5x 4% BBB Inter Pipeline Ltd. $2.66 $8,400 $3,743 % 2.4x 2.9x 67% 70% 7.8%.6%.0% 4.7x 5.x 60% BBB+ AltaGas Ltd. $2.04 $7,389 $5,405 45%.8x.3x 0% 89% 0.4% 9.4%.7% 6.5x 4.9x 53% BBB Keyera Corp. $34.44 $7,57 $9,08 9% 2.0x.6x 62% 59% 5.2% 8.4% 8.8% 2.7x 2.9x 45% BBB Mean 2% 2.0x.9x 73% 69% 7.2% 9.8% 0.3% 4.3x 4.x 49% Median 5% 2.0x.7x 67% 70% 7.2% 9.4% 0.2% 4.0x 4.x 48% Tidewater Midstream $.34 $456 $756 24% 9.4x 7.6x 24% 9% 3.0% 2.3% 5.7% 3.7x 3.0x 40% n.a. Tidewater is trading at a large discount to comparables despite a more conservative capital structure Source: Company reports and Factset. Estimates based on consensus equity research. * See Disclaimer Forward Looking Information. As at Oct. 2, Includes options and warrants using the Treasury Method. 3 EV includes non-recourse debt and preferred shares. 4 Based on consensus equity research estimates. 5 Cash available for distribution ( CAFD ) defined as cash from operations less maintenance capex, preferred dividend, non-controlling interest and amortization of debt payments. 6 Total capitalization value based on book value of equity plus net debt. 7 This chart contains market research and industry forecasts that were obtained from analyst publications and reports or based on estimates derived from such publications and reports. Analyst publications and reports generally indicate that they have obtained their information from sources believed to be reliable, but do not guarantee the accuracy and completeness of their information. Actual outcomes may vary materially from those forecast in such reports or publications, and the prospect for material variation can be expected to increase as the length of the forecast period increases. While management believes this data to be reliable, market data is subject to variations and cannot be verified due to limits on the availability and reliability of data inputs, the voluntary nature of the data gathering process and other limitations and uncertainties inherent in any market or other survey. Accordingly, the accuracy, comparability and completeness of this information cannot be guaranteed. The Company has not independently verified any of the data from third-party sources referred to in this chart or ascertained the underlying assumptions relied upon by such sources. As the comparables do not have standardized meanings or calculations, they may not be comparable to Tidewater s calculations. 4