Tidewater Midstream and Infrastructure Ltd.

Good afternoon, ladies and gentlemen, and welcome to the Tidewater Midstream and Tidewater Renewables year-end financial results. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Thursday, March 9, 2023. I would now like to turn the conference over to Mr. Scott Bowman. Please go ahead.

Thank you, operator, and welcome everyone to Tidewater Midstream and Tidewater Renewables combined fourth quarter results conference call. I'm Scott Bowman, Tidewater's Director of Capital Markets, and on the call with me today are Rob Coclo, Tidewater Midstream and Tidewater Renewables Interim CEO, Brian Newmarsh, Tidewater Midstream's Chief Financial Officer, Doug Beamer, Tidewater Midstream's VP of Corporate Finance. Brent Booth, Tidewater's Executive Vice President of Downstream Marketing. Rob McNeil, Tidewater's Downstream Director of Engineering. And also joining on the call, we have Tidewater Renewables Chief Financial Officer, Ray Kwan. Before passing the call over to Rob to review some highlights, I just wanted to quickly remind everybody that some of the comments made today may be forward-looking in nature or and are based on Tidewater's current expectations, estimates, judgments, and projections. Forward-looking statements we may express or imply today are subject to risk and uncertainties, which can cause actual results to differ from expectations. Further, some of the information provided refers to non-GAAP measures. To know more about these forward-looking statements and non-GAAP measures, please see Tidewater Midstream and Tidewater Renewables financial reports which are available at tidewatermidstream.com, tidewater-renewables.com, and on CDAR. And with that, I'll pass it off to Rob to discuss some of the highlights for the quarter.

Thanks, Scott. Good morning, and thank you for joining our Q4 2022 conference call. This is the first call that I've had the privilege of hosting since taking on the role as interim CEO for both Tidewater Midstream and Tidewater Renewables. and that goes back to the end of November of 2022. Well, it's only been a few months in the seat. I did serve on the Tidewater Midstream Board since 2017, so I'm very familiar with the business and the assets and the team. As I've settled into the role, I've established clear near-term strategic priorities, and that's increasing shareholder value and ensuring that Tidewater Renewables successfully commissions its renewable diesel plants. I recognize that to date shareholders have not benefited from the growth that Tidewater Midstream has been delivering. We believe that our company trades at a material discount to the sum of the value of our assets, especially relative to midstream peers. We also do not believe that this discount will fix itself. While we've implemented a program of disciplined capital allocation, I've also kicked off a review of our asset base and we'll be evaluating alternatives that could unlock this value that we see. My second priority, as I mentioned, is the successful commissioning of Tidewater's renewable HDRD complex, which will be Canada's first renewable diesel plant. As we announced this morning, this project is facing an increase to its capital costs as we deal with the logistical, labor, and inflationary pressures that pretty much all major projects seem to be facing within the industry. The project's now over 90% complete, and we're down to a very modest amount of capital to be spent that I'd consider at risk, which gives us a high degree of confidence in this $342 million capital cost figure. The project economics also continue to look strong, with an estimated run rate of EBITDA of 80 to 90 million per year. And we're working with our lenders to ensure that we continue to have capacity to fund our project through startup. We're seeing a very strong market for both BC LCFS credits and the federal CFR credits that this project will generate. For the first half of 2023, we expect to receive proceeds of approximately $53 million from the sale of Part 3 BC LCFS credits that are under executed agreements. Now, focusing on the results that we delivered in Q4, I think the numbers speak for themselves. Consolidated full-year EBITDA of approximately $250 million at the high end of our guidance range, and deconsolidated maintenance capital of $41.5, which is at the low end of our guidance range. Within the midstream business, last year we completed major planned turnarounds at our Pipestone, Ram River, and Brazzo natural gas processing plants. The turnarounds were completed safely and largely within expected timelines. These facilities are now processing volumes at their expected capacity, and we've seen a steady incline in corporate processing volumes with the turnarounds behind us. As we discussed throughout 2022, we saw very strong refining margins at our Prince George refinery. That played a significant role in driving our consolidated full-year EBITDA of approximately $250 million. This is an asset that benefits from the fact that it serves a region with a significant amount of industrial demand for refined products and realizes some of the highest refining margins in North America. Our refinery is scheduled for its four-year planned turnaround during the second quarter of 2023. And over the last 12 months, our local Prince George team, supported by a specialized turnaround team, has been working on the planning, procurement, and scheduling of the turnaround. We expect to be up and running mid-May as we flip into summer driving season, and we see increased industrial demand following spring breakup. On the tidewater renewables front, in addition to the HDRD complex work, the team has been advancing our first renewable diesel natural gas project, which is located in southern Alberta. This is an integrated project with our partner Rimrock Cattle Company and has a 20-year off-take agreement with Fortis. Renewables has an exciting pipeline of opportunities and continues to see substantial support on the government and regulatory front. Now, I'd like to turn it over now to Tidewater Midstream's Chief Financial Officer, Brian Newmarsh, to walk through some of our financial results.