Beacon Securities Ltd.| 66 Wellington Street West Suite 4050, Toronto, Ontario, M5K 1H1 |416.643.3830 |www.beaconsecurities.ca
Tidewater Midstream and
Infrastructure Ltd. (TWM-V)
A Rising Tide of Opportunities
August 10, 2015
Michael Mills, CFA (902) 425-8897
Ted Bobier - Associate (403) 910-5382
We are initiating coverage of Tidewater with a BUY
rating and 12-month price target of $2.40. Backed by a
proven management team, TWM is at the very early
stages of building a large midstream and infrastructure
firm. Having recently completed its first acquisition, a
63% working interest in a gas processing facility for $180
million, we expect TWM to grow rapidly over the next
couple of years. The depressed O&G market is
providing abundant M&A opportunities and we expect
management to move quickly to acquire infrastructure
assets. This could include 1-2 moves before year-end.
We think TWM could acquire pipeline and storage
assets and ultimately develop a marine export terminal.
Marketing of NGLs, specifically propane, is a focus at
TWM, as western Canadian producers are losing money
due to a lack of available conduits. TWM currently
controls 15 railcars and we expect this number to grow
substantially in the coming months.
We will not see any meaningful financial results until Q3
is reported in November, however the gas processing
facility is currently generating roughly $28 million in
annual EBITDA running at ~75% capacity. Plant cash
flow is supported by roughly 70% take-or-pay contracts.
For now, investors are relying heavily on the strength of
the management team and Board to create value. We
think this is a team worth betting on and that they are
setting the stage to build a multi-billion dollar enterprise.
Trading at 8.7x our F2016 EBITDA estimate, we believe
there is attractive upside in this name, supported by a
dividend yield of 2.3%. Our $2.40 target based on 12x
F2016 EBITDA (vs. comps at 14.3x 2015 and 12.4x 2016).
$2.40$1.75
$2.40
39%
YE: Dec 31 FY15E FY16E
Revenue ($MM) $17.5 $54.5
EBITDA ($MM) $11.3 $32.6
FD EPS $0.03 $0.10
FY15E FY16E
EV/Sales nmf 5.2x
EV/EBITDA nmf 8.7x
P/E nmf 17.3x
Div idend/share $0.04
Div idend Yield 2.3%
Shares Outstanding
FD 175.8
Market Cap (C$)
FD $307.7
Net Cash $25.0
Enterprise Value $282.7
Potential Return (incl div idend)
Initiating Coverage
BUYPrev ious Close
12-month Target Price
Stock Performance
Stock Data (MM)
About the Company
Tidewater was formed in 2015 to pursue the purchase, sale,
and transportation of NGLs and related infrastructure
throughout North America and export to ov erseas markets.
www.tidewatermidstream.com
52 Week Price Range $1.51-$2.13
Estimates
All prices in C$ unless otherwise stated
Valuation
May Jun Jul
$1.50
$1.60
$1.70
$1.80
$1.90
$2.00
$2.10
$2.20
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
0.45
0.5Volume (Millions) Price (CAD)
August 10, 2015 Page | 2 Michael Mills | 902.425.8897 | [email protected]
Tidewater Midstream and Infrastructure Ltd.
Company Overview Tidewater Midstream and Infrastructure (TWM-V) is a newly created,
Calgary-based, junior midstream infrastructure player that pursues the
purchasing, selling and transportation of natural gas liquids (NGLs). The
company’s immediate focus is in North America, with the longer-term
potential for export to overseas markets where NGLs receive more
attractive pricing (hence the name Tidewater). The strategy is to acquire
and develop oil and gas infrastructure such as gas plants, pipelines,
railcars, trucks, export terminals and storage facilities to offer a full service
and a vertically integrated value chain that will be more efficient to their
clients and allow for better NGL pricing in the local market.
Tidewater’s physical assets today consist of:
Five owned railcars and 10 leased railcars, each with 33,690 US gallon
carrying capacity of NGLs; and
A 63% operating working interest in a 185 mmcf/d West Pembina deep
cut gas processing facility.
The management team of Tidewater have all shared previous success in
the midstream sector, having built up and sold Predator Midstream Ltd. (a
crude-by-rail business) for $107 million to Secure Energy Services in August
2014. The sale generated shareholder returns in excess of 20x in just 2.5
years. While past success does not guarantee future performance, we
view it as a key attribute when investing in a new start-up. Below we show
the timeline of Predator Midstream from inception to sale. We think TWM
will take a similarly aggressive growth path. In fact, management is
targeting one or two additional acquisitions by year-end 2015.
Exhibit 1: Predator Midstream Ltd. Timeline
Source: Company reports
August 10, 2015 Page | 3 Michael Mills | 902.425.8897 | [email protected]
Tidewater Midstream and Infrastructure Ltd.
Tidewater Brief History
Tidewater saw its first cash injection in February 2015 when the company
raised $4.4 million from insiders and founders at $0.50/sh. Tidewater then
completed its IPO on April 15, 2015 issuing 3 million shares at $1.00/sh. The
gross proceeds of $3 million were used to acquire five NGL pressure rail
cars for ~$1.1 million and subsequently on April 21st Tidewater announced
they had entered into an agreement with a senior oil and gas producer to
utilize those five railcars. The railcars have a capacity of 33,690 gallons
each and are expected to service multiple locations, including Alberta
and the Dakotas. Tidewater also announced they would be leasing an
additional ten new high pressured railcars with delivery near the end of Q2
2015.
Tidewater’s transformational asset acquisition was announced June 2,
2015 with a deal to acquire a 63% working interest in a 185mmcf/d West
Pembina deep-cut gas processing facility for $180 million (at an attractive
6.5x TTM EBITDA valuation). This facility is believed to be the Brazeau River
Complex, with Apache retaining a 37% working interest. The terms of the
deal were $170 million cash and $10 million in Tidewater shares valued at
$1.35/sh. The cash component was satisfied by a $210 million bought deal
financing – issuing 155.6 million subscription receipts at $1.35/share. The
acquisition has subsequently closed (as of July 21, 2015) and the sub
receipts have been converted to common shares. The shares issued as
part of the financing become free trading on October 17, 2015. There are
now just under 176 million fully diluted shares outstanding at Tidewater.
Post the acquisition, we model a cash balance of approximately $25
million and zero debt. Management is willing to use leverage to about 1x
CF or maybe a bit higher to fund the right acquisition opportunity. Given
the visibility of cash flows, with ~70% of contracts comprised of multi-year
take-or-pay deals, TWM has decided to pay an initial dividend of $0.01 per
share quarterly. Based on the current share price, this translates into a 2.3%
yield. The first dividend will be paid to shareholders of record on
September 30th with an October 30th payment date.
Tidewater Deep Cut Facility and Assets
The West Pembina facility has an operating capacity of 185 mmcf/d with
current throughput of ~140 mmcf/d, making it one of the largest natural
gas processing facilities in the area. The facility has been operating at
near-capacity (~75%) over the past year despite a sharp decline in liquids
pricing and management is targeting ~75% average utilization for the
foreseeable future. Management has disclosed that ~70% of the facility’s
EBITDA (12-month trailing $28 million) is backed by volume based take-or-
pay contracts. The majority of the contracts expire in two years, but can
be extended or rolled over. One large customer is believed to comprise
about 60% of current throughput. There are currently a total of 22
August 10, 2015 Page | 4 Michael Mills | 902.425.8897 | [email protected]
Tidewater Midstream and Infrastructure Ltd.
producers using the facility. We refer readers to Exhibit 2 below for the
location of the facility and area producers.
Exhibit 2: West Pembina Area Producers
Source: geoScout, company reports, Beacon Securities
Processing Plant Growth Opportunities
While the processing plant is running near functional capacity,
management does believe there are ways to significantly increase EBITDA
with a relatively small investment. The company is looking to invest $10-$15
million over the next year and expects to increase EBITDA by a similar
amount. The investments could include a truck rack that will allow NGLs to
be trucked to the facility, increased condensate recoveries (higher value
product), and/or increased marketing of products through its railcar
operations. At this point we believe management has very clear plans to
enhance the facility, and we model a roughly $5 million increase in plant
EBITDA in 2016.
As noted earlier, Apache retains the other 37% working interest in the
plant. We believe the quickest way to increase EBITDA would be to
acquire that remaining interest. But it will come down to the price and
whether Apache is willing to sell. We believe a starting point to think about
valuation of the Apache interest as $100-$120 million.
August 10, 2015 Page | 5 Michael Mills | 902.425.8897 | [email protected]
Tidewater Midstream and Infrastructure Ltd.
Competitors
Excluding the vertically integrated O&G companies, or the super majors,
the pure midstream players comparable to Tidewater include:
AltaGas (ALA-T)
Pembina Pipeline (PPL-T)
Keyera (KEY-T)
Inter Pipeline (IPL-T)
Gibson Energy (GEI-T)
Veresen (VSN-T)
Keyera is the most direct competitor, operating eight processing facilities
in the general region of TWM’s plant. The above are significantly larger
companies with many different business segments including energy
transportation, storage and marketing, but all within the midstream
industry. In addition, pipeline companies such as Enbridge (ENB-T) and
TransCanada (TRP-T) could eventually become competitors. Tidewater
currently is a small fish swimming in a big stream with a market cap of
~$300 million versus the industry average of ~$6.5 billion (see comp table in
valuation section of this report).
Customers
Location, location, location! Hunters hunt where there is game and
midstream companies operate where there are production volumes.
Tidewater’s deep cut gas processing facility is surrounded by prolific multi-
zone producing areas of the Deep Basin. Historical area gas production
stemmed from the Cardium but year over year growth of ~25% is being
attributed to the Spirit River and the Lower Mannville plays. We refer the
reader to Exhibit 3 below which highlights surrounding area production by
formation and the largest producers in the area.
Exhibit 3: Area Production Profile by Formation
August 10, 2015 Page | 6 Michael Mills | 902.425.8897 | [email protected]
Tidewater Midstream and Infrastructure Ltd.
Source: geoScout, Beacon Securities
NGL Overview Natural gas liquids (NGLs) are the heavier hydrocarbons which are
dissolved in natural gas in a reservoir and produced with the methane gas
stream which yield: ethane (C2), propane (C3), butane (C4), and
condensate (C5+).
Exhibit 4: NGLs
Source: Canadian Energy Research Institite (CERI)
Once the hydrocarbons are brought to surface, the heavier (C5+)
hydrocarbons condense to their liquid state at atmospheric pressure, while
the lighter components remain in their gaseous state and require
separation in a processing plant.
August 10, 2015 Page | 7 Michael Mills | 902.425.8897 | [email protected]
Tidewater Midstream and Infrastructure Ltd.
Exhibit 5: NGL End Uses
Source: CERI
Liquefied petroleum gases (LPGs) refer to propane, butane and a
combination of both, but is also the term used for NGLs produced by
refineries. Natural gas yields the highest NGL content compared to crude
oil where the NGL’s are extracted from crude during the refining process
and are mainly made up of propane and butane.
NGL Marketing
The four main NGL processing hubs in North America are located in Fort
Saskatchewan, Alberta; Sarnia, Ontario; Conway, Kansas; and Mont
Belvieu, Texas. These locations all have substantial underground storage
and are connected to NGL supply as well as to transmission and
distribution pipeline systems to bring the product to market. Mont Belvieu is
the largest processing and trading hub given its integration of processing,
refining, petrochemicals and port facilities (we note Canada currently
does not have port facilities to export overseas and relies on rail/pipelines
to the US for oversea exports). Mont Belvieu is typically the price setter for
NGLs in North America. Mont Belvieu’s strategic location on the Gulf Coast
allows access to supplies from Europe, Africa, and the Middle East and is
also tied to the Houston ship channel through dedicated pipelines for LPG
(main NGL export) export overseas where propane, among other NGLs
receive more attractive pricing. Petrochemical and export demand are
the main factors driving Mont Belvieu NGL prices. It is also pertinent to note
that Asia has overtaken North America as the largest NGL market due to
strong demand for propane and butane for residential heating, most
notably in China.
August 10, 2015 Page | 8 Michael Mills | 902.425.8897 | [email protected]
Tidewater Midstream and Infrastructure Ltd.
Exhibit 6: Main North American NGL Processing Hubs
Source: Keyera Corp. report
We believe that Tidewater is going to grow rapidly on the marketing side
of NGLs over the next few years. The beginning stage of this has begun
with the 15 railcars being operated at present. We believe the rail
transportation division could grow substantially, to over 500 cars, in the
next couple of years. In addition to rail, we expect TWM to look to add
trucking capacity and pipeline ownership. Eventually, we believe an LPG
marine export facility in British Columbia could be an excellent fit. There is
a reason for naming the company Tidewater! We note that prior to being
sold, Predator Midstream was developing a marine export facility in New
Brunswick.
Exhibit 7: Vertical Integration Strategy
Source: Company presentation
August 10, 2015 Page | 9 Michael Mills | 902.425.8897 | [email protected]
Tidewater Midstream and Infrastructure Ltd.
NGL Pricing
NGL prices are not as transparent as natural gas or crude oil prices. Prices
for NGLs are embedded between natural gas - the typical benchmark for
the price floor, and crude oil and refined petrol products - typical
benchmark for the price ceiling. If the price of a liquid is equal to or lower
than natural gas, it becomes uneconomic to extract but may still have to
be removed to meet pipeline specifications for transport. The 10-year
average CAD price/bbl for ethane, propane, and butane were $13.16,
$32.45, and $43.14 and compared to $4.84, $8.98, and $11.74,
respectively, as of late last week. Transportation and tolling costs to move
propane to southern markets are typically in the $10-$15/bbl range.
Exhibit 8: 10-Year NGL Prices
Source: Bloomberg, Beacon Securities Ltd
As the exhibit below shows, NGL storage levels in the US are at very high
levels. This has translated into low selling prices across North America.
Exhibit 9: Monthly US NGL Storage as of May 2015
Source: Bloomberg, Beacon Securities Ltd.
August 10, 2015 Page | 10 Michael Mills | 902.425.8897 | [email protected]
Tidewater Midstream and Infrastructure Ltd.
The Edmonton Propane Opportunity
The fracking boom over the past few years has brought an abundance of
NGLs to market. There are concerns there may not be enough storage
facilities to hold the liquids. This has led to Edmonton propane prices falling
through the floor (see exhibit 10, below). Producers are having to pay to
remove the gas. For the past couple of months, average propane prices
were negative in Edmonton. We do not expect propane prices to
rebound in North America anytime soon due to the current supply glut
and the current fraclog - wells that have been drilled but are waiting for
energy prices to rise before recoveries are made.
Other factors impacting the Alberta market include:
March 2014, the Kinder Morgan Cochin pipeline which runs from
Edmonton to Windsor, was reversed to ship condensate from Illinois to
Edmonton. This has left Canadian propane somewhat stranded. There are
only a couple of pipelines from which to transport propane out of western
Canada.
A mild 2014/2015 winter reduced demand for propane heating and left
North America with a massive propane glut this summer. The US, with
much larger NGL infrastructure, has access to export markets leaving
Edmonton propane, again, stranded with producers not being able to sell
at a profit.
Clearly, finding a way to export propane out of Edmonton to access
higher US pricing is a top priority for producers and we think it is an area
that TWM can exploit.
Exhibit 10: Historical North American Propane Prices
Source: Bloomberg, Beacon Securities Ltd
August 10, 2015 Page | 11 Michael Mills | 902.425.8897 | [email protected]
Tidewater Midstream and Infrastructure Ltd.
Forecast Assumptions
Our forecast relies heavily on the throughput of the gas processing plant.
We will not see first results of these operations until Q3 2015 (mid-
November). With management guiding for utilization to remain steady
around 75% and back-stopped by take-or-pay contracts, we feel
comfortable that the plant can generate at a minimum $28 million of
EBITDA in 2016. This gets enhanced by planned plant upgrades and the
opportunity to begin to market propane using the railcars (expected to
grow). This leads us to a full year EBITDA forecast of $32.6 million in F2016.
With management publicly stating that they are seeking to close one or
two acquisitions before the end of 2015, forecasts will be evolving. We
expect that by this time next year, we will be modeling a much larger
company. We believe management can prudently use the current
industry downturn to acquire infrastructure assets at attractive valuations.
We believe the 6.5x EBITDA multiple paid for the gas processing plant is a
perfect example of how this management team can surface value from
assets that are being shopped to a limited number of capitalized buyers.
Management has effectively used the capital markets to fund its first
acquisition and we would expect further equity raises as asset acquisition
opportunities arise. At the same time, we do expect some leverage to be
layered into the capital structure as these are long-life, cash flowing assets.
We believe the initial dividend of $0.01 per share quarterly, yielding 2.3%,
will entice investors who frequently rely on the income streams generated
from this sector. This level of payout equates to roughly $7 million per
annum, or 25% of the processing plant’s base EBITDA. With relatively low
maintenance capex requirements, we view this dividend payout level as
very comfortable. We are not modeling a dividend increase in the near-
term as we expect management to focus on growth opportunities with
surplus cash flow.
August 10, 2015 Page | 12 Michael Mills | 902.425.8897 | [email protected]
Tidewater Midstream and Infrastructure Ltd.
Valuation and Recommendation
The established, large cap midstream players are trading in a range of
13x-18x F2015 EBITDA. We expect TWM to trade at a discount to the senior
midstream peers given its size, liquidity, and single asset base. Therefore,
we are using a 12x multiple on 2016 EBITDA to reach our 12-month price
target of $2.40. This provides 37% upside from the current level plus a 2.3%
dividend yield.
At this point, Tidewater is the only unlevered midstream company, with a
cash balance. This leaves it in a strong position to capitalize on future
acquisitions accretive to the bottom line. We note that Gibson Energy
trades at a lower multiple than peers, but we believe this reflects the more
cyclical business segments the company is involved in.
Exhibit 11: Midstream Comparables
Last
Price
Enterprise
Value
(Millions)
Market
Cap
(Millions)
Dividend
Yield2015E 2016E 2015E 2016E 2015E 2016E 2015E 2016E
Tidewater Midstream & Infrastructure Ltd. TWM-CA $1.75 $283 $308 2.3% $11.3 $32.6 $0.03 $0.10 nmf 8.7x nmf 17.3x
AltaGas Ltd. ALA-CA $33.85 $8,354 $4,548 5.2% $611 $683 $1.19 $1.45 13.7x 12.2x 28.4x 23.3x
Gibson Energy Inc. GEI-CA $18.09 $3,315 $2,260 7.1% $395 $450 $0.36 $0.67 8.4x 7.4x 50.6x 27.1x
Inter Pipeline Ltd. IPL-CA $27.09 $14,184 $9,045 5.4% $943 $1,013 $1.33 $1.46 15.0x 14.0x 20.4x 18.6x
Keyera Corp. KEY-CA $43.57 $8,832 $7,363 3.2% $666 $701 $1.62 $1.81 13.3x 12.6x 26.9x 24.1x
Pembina Pipeline Corporation PPL-CA $36.39 $16,897 $12,297 4.9% $967 $1,221 $1.44 $1.69 17.5x 13.8x 25.3x 21.5x
Veresen Inc. VSN-CA $12.70 $5,302 $3,633 7.9% $294 $365 $0.29 $0.42 18.0x 14.5x 43.1x 30.5x
Average 5.6% 14.3x 12.4x 32.4x 24.2x
14.4x 13.2x 27.6x 23.7xPeer Median
Company
Peer Average
Midstream Comparables
EBITDA EPS EV/EBITDA Price/Earnings
*Note TWM 2015 financials include gas plant results only as of July 21, 2015
Source: Beacon Securities, FactSet
Back-stopping our valuation is a DCF scenario analysis. Using conservative
cash flow growth assumptions (4% annually to 2020), we feel comfortable
with our initial price target. We note a scheduled plant turnaround in 2018
will impact CF in that period. We expect momentum to build in the stock
as investors get comfortable with the asset base, the ability to pay a
consistent dividend, and ability to transact on accretive acquisitions. We
note that the four-month hold paper comes off on October 17th, and
liquidity is expected to be relatively minimal between now and then.
Exhibit 12: DCF Sensitivity
3 1.5% 2.0% 2.5% 3.0%
8.0% 2.85$ 3.04$ 3.26$ 3.53$
9.0% 2.47$ 2.60$ 2.76$ 2.94$
10.0% 2.17$ 2.27$ 2.39$ 2.52$
11.0% 1.94$ 2.02$ 2.10$ 2.20$ Dis
count R
ate
Terminal Grow th Rate
Source: Beacon Securities
August 10, 2015 Page | 13 Michael Mills | 902.425.8897 | [email protected]
Tidewater Midstream and Infrastructure Ltd.
Key Risks Reliance on single primary asset (for now) - Tidewater’s results will be
largely based on the volumes being processed at the gas plant. Any
interruption or change in volume will adversely impact financial results.
While there is a diverse customer group (22 clients), there is one large
customer that is believed to account for ~60% of volumes. Many of the
take-or-pay contracts expire in two years (2017) and keeping/replacing
these customers will be vital.
Commodity Prices - Oil and gas prices remain volatile. Demand for
processing and marketing of NGLs will be impacted by macro pricing
movements.
Transporting dangerous goods and materials - Shipping accidents
involving hazardous materials could result in adverse financial losses
and/or personal injury/fatalities which would materially affect the
Company.
Acquisitive Growth - Tidewater intends to grow rapidly and the integration
of new operations is a risk. In addition, growth will likely require further
equity and/or debt placements.
Foreign Exchange - Tidewater expects to conduct operations in Canada
and the U.S. exposing itself to fluctuations in currencies. Exchange rate
changes may adversely affect the company’s profitability.
Regulatory - Tidewater could be exposed to changes in regulation that
could negatively impact operations.
August 10, 2015 Page | 14 Michael Mills | 902.425.8897 | [email protected]
Tidewater Midstream and Infrastructure Ltd.
Appendix
Tidewater
CAD
Dec YE YE 2015E YE 2016E
Statement of Income
Revenue 17,488 54,508
Operating costs 5,029 18,937
Gross Profit 12,459 35,570
Gross margin 71.2% 65.3%
General and administrative 1,200 3,000
Share-based compensation 100 200
Depreciation 3,000 8,000
Total expenses 4,300 11,200
EBITDA 11,259 32,570
EBITDA margin 64.4% 59.8%
Earnings (loss) before income taxes 8,159 24,370
Total Tax 2,203 6,580
Tax rate 27.0% 27.0%
Net income 5,956 17,790
Shares Outsdanding FD 175,844 176,019
EPS - FD 0.03 0.10
August 10, 2015 Page | 15 Michael Mills | 902.425.8897 | [email protected]
Tidewater Midstream and Infrastructure Ltd.
Management and Directors
Joel MacLeod, President, CEO and Chairman: Mr. Macleod has 15+ years
of experience in the oil and gas industry and has been in an executive or
director role with over seven oil and gas companies. Mr. Macleod has
been the CEO of three oil and gas companies and has been heavily
involved in the Midstream industry for the past 10 years, most recently
selling Predator Midstream Ltd. for $107 million.
Toby McKenna, VP, Business Development and Commercial: Mr. McKenna
most recently served as VP, Business Development for Predator Oil Ltd. He
brings over 20 years of energy expertise ranging from merchant trading
and origination to storage of natural gas and development of structured
financial products. He also has an extensive and a proven record in
financial hedging and trading strategies and value added processes in
the energy supply chain.
Joel Vorra, CFO: Mr. Vorra is currently CFO of Predator Oil Ltd. and was
Controller of Predator Midstream up until its sale in August 2014. Mr. Vorra’s
past experience involved advising oil and gas clients on various financial
and accounting issues and has a proven track record in company start-
ups mainly in the midstream space and was heavily involved in the sales of
Predator Midstream Ltd.
Jarvis Williams, VP, Logistics and Midstream Operations: Mr. Williams is
currently a VP of Predator Oil Ltd. and was VP of Midstream Operations
and Logistics of Predator Midstream Ltd., up until its sale. Before joining
Predator, Mr. Williams worked for SkyWest Energy, PrimeWest Energy and
Taqa North. Mr. Williams has been heavily involved in the midstream start
up and has prior experience with an energy services trucking start up.
Jeff Ketch, VP, Field Operations: Mr. Ketch currently serves as VP,
Operations for Predator Oil Ltd. Previously he was VP, Operations for
Predator Midstream Ltd. and has held management positions with Equal
Energy and brings over 20 years of leadership skills to operations.
Gregory Macdonald, VP Engineering: Mr. Macdonald is currently President
and COO for Predator Oil Ltd. and previously was VP, Engineering for
Predator Midstream Ltd. Mr. Macdonald brings over 15 years of energy
experience ranging from field operations to executive level responsibilities
in both the upstream and midstream space.
August 10, 2015 Page | 16 Michael Mills | 902.425.8897 | [email protected]
Tidewater Midstream and Infrastructure Ltd.
Board of Directors – Led by Mr. MacLeod, Chairman
Doug Fraser, Director: Mr. Fraser brings both international and North
American oil and gas experience to Tidewater. He was most recently the
CFO at TAQA based in Abu Dhabi. Mr. Fraser was the CFO of PrimeWest
Energy Trust at the time of the acquisition by TAQA for $5 billion. Previous
roles include CFO of Husky Energy and senior roles at Petro-Canada and
Imperial Oil.
Trevor Wong-Chor, Director: Mr. Wong-Chor is a solicitor with Davis LLP
where he is currently a Partner and member of the firm’s executive
committee. Formerly he was a Partner and Associate at Borden Ladner
Gervais LLP.
Stephen Holyoake, Director: Mr. Holyoake is currently VP, Drilling and
Completions for Tangle Energy Creek Ltd. Formerly, Mr. Holyoake was VP,
Operations for SkyWest Energy and Drilling and Completions Managers at
Berens Energy.
Beacon Securities Ltd.| 66 Wellington Street West Suite 4050, Toronto, Ontario, M5K 1H1 |416.643.3830 |www.beaconsecurities.ca
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their volatility, income structure, or eligibility for sale, the securities mentioned herein may not be suitable or available for all investors in all countries.
As at July 31, 2015 #Stocks Distribution
Buy 53 71% Buy Total 12-month return expected to be > 15%
Speculative Buy 15 20% Speculative Buy Potential 12-month return is high (>15%) but given elevated risk, investment could result in a material loss
Hold 2 3% Hold Total 12-month return is expected to be between 0% and 15%
Sell 0 0% Sell Total 12-month return is expected to be negative
Under Review 5 7% Under Review Currently undergoing a change of analyst coverage
Total 75 100%
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Analyst Certification
The Beacon Securities Analyst named on the report hereby certifies that the recommendations and/or opinions expressed herein accurately
reflect such research analyst’s personal views about the company and securities that are the subject of the report; or any other companies
mentioned in the report that are also covered by the named analyst. In addition, no part of the research analyst’s compensation is, or will
be, directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.