Tidewater Midstream and Infrastructure Ltd.

Good afternoon, ladies and gentlemen, and welcome to the Tidewater Midstream and Infrastructure Limited Q1 2024 Financial Results Conference Call. At this time, all lines are in a listen-only mode. Following the presentation, you 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, May 9, 2024. I would now like to turn the conference over to Mr. Michael Gratcher, Manager of Investor Relations. Please go ahead, sir.

Thank you, Operator, and welcome everyone to Tidewater Midstream's first quarter 2024 results conference call. I'm Michael Gratcher, Manager of Investor Relations, and joining me today are Jeremy Baines, CEO, and Aaron Ames, Tidewater Midstream's Interim CFO. Also with us and available during the question and answer session is Sean Heaney, EVP Planning and Strategy. Before we begin, please note that matters discussed on this call include forward-looking statements under applicable securities laws with respect to Tidewater Midstream and Infrastructure LTD, including but not limited to statements regarding investments and acquisitions by the company, commercial arrangements of the company, the business strategies and operational activities of the company, the markets and industries in which the company operates, cost and expense management, the company's leverage and plans for debt and leverage reduction, refinancing of the company's indebtedness, the value of the company's assets, and the future growth, objectives, targets, and financial and operating performance of the company and its businesses. Such statements are based on factors and assumptions that management believes are reasonable at the time they were made and information currently available. 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 learn more about these forward-looking statements and non-GAAP measures, please see Tidewater Midstream's financial reports, which are available at www.tidewatermidstream.com and on CDAR+. And with that, I will now pass the call over to Jeremy to go over the highlights of the quarter.

Thanks, Michael, and thanks to everyone for joining us today. I want to say we are proud of another quarter where we operated safely. I'm proud of the team and our focus on safe and reliable operations. This is a key priority for the company. On the renewables front, the HDRD complex is operating very well at design capacity of 3,000 barrels per day. As I had mentioned at year end, Our team worked through the normal ramp-up challenges, and our facility has been performing very well. We expected to perform at design capacity going forward, and accordingly, we expect HDRD to exceed a full-year utilization rate of 85%. During Q1, we performed on average at 71% of design capacity and expect to be approximately 95% of design capacity for the rest of this year. Overall, the quarter started with PG crack spreads around $80, which strengthened in February and March to around $90, ending at an overall average of 88 for the quarter, a bit below the same period last year, which averaged around $90. We are currently seeing typical moderation in crack prices as we progress through Q2 before we move into the high-demand summer driving season. Last year's Q2 results were impacted by the scheduled PGR turnaround, Well, this year we expect to be operating at capacity and improving on year-over-year volumes. For the first time, we have the opportunity to begin marketing our very own renewable diesel product in our own backyard in British Columbia. Our marketing initiatives are progressing well. Due to our renewable diesel produced at HDRD, we have a competitive advantage in our ability to provide customers with a blended renewable diesel product, and we are seeing the benefits with a new logistics customer. Hot off the press, Midstream just completed the scheduled turnaround at BRC, and as I said already, I want to congratulate the team for a successful execution of another turnaround, which was completed safely, on time, and on budget, with no lost time incidents. As I stated before, natural gas will play a critical role in the transition towards cleaner, more sustainable energy generation. Presently, gas prices are at historically low levels, which we view as unsustainable in the long term. With LNG Canada expected to come online in mid-2025, we expect prices will begin to trend upwards throughout 2025, which will enhance the attractiveness of investments and drive demand for natural gas processing at our facilities. Operationally, we made significant progress in streamlining our cost structure with a continued focus on safety, maximizing asset performance, and driving free cash flow generation. We are taking a focused approach to the investments we make in our people and capital with an eye on delivering long-term free cash flow, maximizing return on net assets while minimizing risk and deleveraging. We have already implemented operational changes totaling $6 million on a run rate basis and similarly SG&A reductions of a further $5 million in 2024 and $7 million on a run rate basis go forward. On the refinancing fronts for both the senior financing at renewables and the convertibles at midstream, we are down the path on both of these and expect to provide an update on our refinancing soon. I'd like to turn our expectations for the year. Assuming PG crack spreads average in the $80 to $90 per barrel range and BCLCS credits are priced between $450 and $500 per credit, Tidewater expects 2024 consolidated adjusted EBITDA to be in the range of $150 to $170 million. Tidewater's full year consolidated maintenance capital program is expected to be approximately $35 to $40 million. With the BRC turnaround completed safely on time and on budget, our maintenance capital program was weighted to the first half of the year and operations at BRC have ramped back up to normal run rate operations. To round it out, We also have made significant progress on the front end engineering and design of the proposed 6,500 barrel a day sustainable aviation fuel project. This includes integrating lessons learned from the HDRD complex into the SAFS project's design basis. During the first quarter of 2024, the corporation received emissions credits for achieving its first milestone under an executed incentive agreement. These credits were sold under a previously announced purchase agreement. The corporation continues to progress commercial arrangements and is evaluating potential offtake agreements for the SAF project. The SAF project remains subject to a final investment decision, which is expected in 2025. Looking forward, we are excited about the opportunities we see in front of us. Our PGR and HDRD facilities are performing well and expected to continue to run at design capacity for the remainder of 2024. With the BRC turnaround completed, safely on time, on budget, and back to run rate operations, our midstream business is well positioned to capitalize on the key role natural gas will play in providing clean and reliable energy. I will now turn the call over to Aaron to go through the financial results.