Tidewater Midstream and Infrastructure Q2 Earnings Call Highlights

Record results lifted guidance: Second-quarter consolidated adjusted EBITDA reached C$88.9 million, prompting Tidewater to raise its 2026 outlook to C$230 million–C$250 million, a 20% midpoint increase from its previous forecast.

Refining and renewable diesel drove performance: The HDRD complex operated at 111% of nameplate capacity, while stronger crack spreads supported the Prince George Refinery. Favorable pricing, higher utilization and expected Biofuel Production Incentive payments boosted the outlook.

Debt fell as strategic projects advanced: Consolidated net debt declined by C$44.4 million in the quarter, while Tidewater continued preparations for a potential fourth-quarter final investment decision on its approximately C$1.2 billion sustainable aviation fuel project.

Tidewater Midstream and Infrastructure TSE: TWM raised its 2026 adjusted EBITDA outlook after reporting record second-quarter consolidated adjusted EBITDA, supported by strong refining and renewable diesel market conditions, higher facility utilization and debt reduction.

During a joint second-quarter call with Tidewater Renewables, CEO Jeremy Baines said the company’s Prince George Refinery and HDRD renewable diesel complex benefited from favorable fuel markets, while management continued to advance a sustainable aviation fuel project toward a potential final investment decision in the fourth quarter.

Record EBITDA and Higher Guidance

CFO Ian Quartly said Tidewater’s consolidated adjusted EBITDA reached a quarterly record of C$88.9 million in the second quarter, up C$39.2 million from the first quarter of 2026.

Tidewater Renewables generated record adjusted EBITDA of C$56 million.

Quartly said the result reflected above-nameplate operation at the HDRD complex, improving market pricing and offtake contracts indexed to U.S. import-pricing benchmarks.

The result included C$7.7 million of expected Biofuel Production Incentive proceeds recognized in the quarter and C$7.7 million of adjusted EBITDA from the company’s equity investment in a cattle company, primarily reflecting higher cattle prices.

Tidewater Midstream generated deconsolidated adjusted EBITDA of C$32.9 million, an increase of C$7.3 million from the first quarter.

Quartly attributed the improvement primarily to stronger crack spreads at the Prince George Refinery, partly offset by realized losses on crack-spread hedges.

The company increased its 2026 consolidated adjusted EBITDA guidance to between C$230 million and C$250 million, representing a 20% increase at the midpoint from its prior outlook.

Tidewater Renewables increased its guidance to C$130 million to C$140 million, while Tidewater Midstream raised its deconsolidated adjusted EBITDA guidance to C$100 million to C$110 million.

Management cited higher facility utilization, sustained strength in forward crack spreads, and improved renewable diesel and emissions-credit pricing as the main drivers of the higher outlook.

Forecast capital expenditures remained unchanged at C$2 million to C$3 million for Tidewater Renewables and C$20 million to C$25 million for Tidewater Midstream on a consolidated basis.

Refining and Renewable Diesel Operations

The HDRD complex processed a record average of 3,315 barrels per day during the second quarter, or 111% utilization, Baines said.

Low-cost debottlenecking work and facility reliability enabled the complex to operate above nameplate capacity.

The company also realized record margins on renewable diesel sold at U.S. import-parity pricing and captured an additional C$0.16 per liter from the Biofuel Production Incentive.

Natural Resources Canada conditionally approved Tidewater Ren...