Tidewater Midstream and Infrastructure Ltd.

Good morning, ladies and gentlemen, and welcome to the Tidewater Midstream and Infrastructure Limited and Tidewater Renewables Limited Second Quarter 2025 Financial Results Conference Call. At this time, all lines are in 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 4-0 for the operator. This call is being recorded on Thursday, August 14th of 2025. I would now like to turn the conference over to Michael Gracher, Manager of Investor Relations. Please go ahead, sir.

Thank you, Chloe, and welcome everyone to the joint conference call for the second quarter 2025 results for both Tidewater Midstream and Infrastructure and Tidewater Renewables. I'm Michael Gracher, Manager of Investor Relations. Joining me today are our CEO, Jeremy Baines, who will provide an update on operations during the quarter, and our CFO, Ian Portley, who will provide an update on our financial results. We will then open the line for Jeremy and Ian and other members of the Tidewater management team to take your questions. Before I get started, I would like to note that today's call is being recorded for the benefit of individual shareholders, the media, and other interested parties who may want to review the call at a later time. The recorded call will be available through CEDAW. This morning, both Tidewater Midstream and Tidewater Renewables reported results for the second quarter ended June 30th, 2025. A copy of the news release, financial statements and MD&As will be available on CEDAW Plus or the respective company websites. Before passing the call over to Jeremy, I'll remind you that some of the comments made today may be forward looking in nature and are based on Tidewater's current expectations judgments, and projections. Forward-looking statements we may express 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, non-GAAP measures, and risk factors, please see the company's various financial reports, which are available on the respective company websites and on CR+. I will now turn the call over to Jeremy.

Thanks, Michael, and thanks to everyone for joining us today. I will divide my remarks into two sections. First, I'll provide an update on Tidewater Renewables' commercial strategy, and then I will walk through the operational performance and project progress for both Tidewater Midstream and Tidewater Renewables. Tidewater Renewables continues to see strong momentum following the government of British Columbia's amendments to the Low Carbon Fuels Act. which doubled the renewable fuel requirement for diesel to 8% for the 2025 compliance period. The amendments also mandated that the renewable fuel content be produced within Canada from April 1st, 2025. These policy changes have been a catalyst for increased market activity, reinforcing our view that the demand for low carbon Canadian produced fuels is not only sustainable, but accelerating. As a result of this more favorable environment, I'm pleased to report that during the second quarter, Tidewater Renewables successfully contracted offtakes for over 70% of forecasted production from the HDRD facility for the second half of 2025. Most of these contracts are for the sale of R100, which is renewable diesel with the environmental attributes included. These contracts are priced based on U.S. import parity benchmarks, which aligns the contract pricing with prevailing U.S. market values. positioning us competitively in the North American renewable fuel market. This commercial success is a direct outcome of our strategic focus and supports our belief that Tidewater Renewables is becoming a critical and reliable supplier within the Canadian clean fuels value chain. I will now provide an update of our operational performance for the quarter. At Tidewater Renewables HDRD complex, average throughput for the quarter was 2,164 barrels per day, were approximately 72% of design capacity. Utilization was relatively stable quarter over quarter as we continued to ramp up following the minor fire incident that temporarily suspended operations in early April. As we shared last quarter, that event was managed safely and repairs were completed using on-hand spare parts. After restarting on April 14th, the utilization rates steadily improved up to 2,850 barrels per day, which is 95% of design capacity by the end of June. With continued strong performance, we remain on track to achieve our full year throughput guidance of 2,200 to 2,400 barrels per day, which is inclusive of our scheduled Q3 turnaround. Turning to Tidewater Midstream's Prince George Refinery throughput averaged 9942 barrels per day in Q2 2025, which was consistent with 9936 barrels per day during the first quarter of 2025, but 17% lower than the second quarter of 2024. The second quarter of 2025 had lower throughput compared to the second quarter of 2024, largely due to operational and feedstock composition adjustments that were required to process higher density feedstock entering the refinery. Over the last few months, we've been able to source lower density feedstocks and expect that throughput at the refinery will return to normal levels following the semiannual heat exchanger cleaning and crude heater decoking that is scheduled for October this year. PGR continues to be impacted by lower refined product margins driven by wider commercial wholesale discounts, which stems from an oversupplied diesel in Western Canada, largely due to U.S. renewable diesel imports at five-year-high Western Canadian refinery utilizations. As we have previously disclosed, our offtake agreement with Synovus expired in November 2024, and we have successfully transitioned to marketing our refined products in-house. Our team has been actively expanding our customer base and we are pleased to report steady quarter over quarter growth in sales volumes. As discussed on our first quarter conference call on May 6, 2025, we announced the planned acquisition of the north segment of Pembina's Western Pipeline. Integration planning It's well underway and we remain on track to close the transaction in the third quarter. Once complete, this acquisition is expected to generate meaningful cost reductions and operational synergies by enhancing our ability to optimize VSOC procurement and integrating pipeline operations and maintenance within our downstream platform. At our midstream assets, Tidewater Midstream's Brazil River Complex had throughput of 95 million cubic feet per day in the second quarter of 2025, relatively consistent with 94 million cubic feet per day during the first quarter of 2025, and 5 million cubic feet per day higher than the second quarter of 2024. As previously disclosed, Plant 3 of the BRC facility was temporarily shut down for maintenance and repairs, resulting in lower straddle volumes coming through the facility during the second quarter. The repair work was completed and Plant 3 was restarted as expected in late June. With Plant 3 restarted, we expect the facility to be stronger in the second half of the year. At Tidewater Midstream's Round River gas plant, gas processing remains curtailed while sulfur handling operations continue. We are focused on cost control of the facility and remain prepared to restart operations as acre prices improve and upstream producer activity resumes. Moving to project progress, the front-end engineering design at Tidewater Renewables' 6,500 barrel per day SAF project in British Columbia is now complete and we continue to progress further optimization, commercial and regulatory work. As part of this ongoing development, I am pleased to report that Tidewater Renewables recently received approval to amend its initiative agreement with the government of British Columbia. The amendment will provide further support in the form of additional BCLCFS credits which will partially fund the advancement of the optimization and development efforts as we advance toward a final investment decision, which is now targeted for 2026. Continue to focus on increasing liquidity at Tidewater Midstream and Tidewater Renewables and are making good progress on non-for-asset sales. Following the end of the second quarter, Tidewater Midstream announced that it had successfully entered into an agreement to sell the Sylvan Lake gas plant and associated gas gathering infrastructure for total proceeds of approximately $5.5 million. We expect the sale to close during the third quarter of 2025, subject to customary closing conditions and regulatory approvals. Inclusive of this transaction, we have successfully closed or executed agreements for the sale of approximately $38 million of non-core assets sales during 2025. We will continue to update the market as we progress with additional asset sales. Looking ahead, we remain focused on maximizing operational efficiency at the PGR and HDR&E complex, enhancing netbacks on conventional and renewable refined products, strengthening our commercial platforms, increasing throughput at our tidewater midstream facilities and controlling costs, increasing our liquidity and focusing the business by progressing our non-core asset sales program, advancing our SAP initiative while prudently managing capital costs, and continuing to advocate for a fair regulatory environment that supports energy security, supports existing domestic energy industry and operations, and attracts investment across Canada's low-carbon and conventional energy sectors. We believe the building blocks are in place for revenue growth and margin expansion in the second half of 2025 and beyond. With that, I'll now turn it to Ian for the financial review.