Tidewater Inks Key Deals to Bolster Alberta Midstream Hub

CALGARY, AB – January 07, 2026 – Tidewater Midstream and Infrastructure Ltd. announced today it has secured a set of critical long-term agreements that will significantly enhance the stability and throughput at its Brazeau River Complex (BRC), a key facility in central Alberta’s energy corridor. The deals ensure a steady flow of natural gas for processing and give Tidewater valuable marketing rights for the resulting natural gas liquids (NGLs).

Under the terms of the agreements, the Calgary-based company will process up to 75 million cubic feet per day (MMcf/d) of natural gas at the BRC. This volume is comprised of both renewed and new commitments, with approximately 65 MMcf/d stemming from renewed contracts and an additional 10 MMcf/d of newly secured supply. The initial term for the agreements is set for five years, with an evergreen provision that allows the contracts to continue thereafter, signaling a strong, long-term partnership between Tidewater and the undisclosed producer.

A Strategic Move for Stability and Growth

For Tidewater, these agreements represent a significant step toward bolstering its financial foundation with predictable, long-term revenue. The company will earn processing and NGL handling fees that are in line with current market rates. Crucially, these fees are fixed for the five-year term and include annual escalators to account for inflation, shielding the revenue stream from market volatility and rising costs.

This move is particularly timely. While Tidewater has been actively working to optimize its asset base and reduce debt, recent financial reports have shown challenges, including net losses in the latter half of 2024. Securing long-term, fee-for-service contracts like these is a core strategy for midstream companies to de-risk their business model and is often viewed favorably by investors and analysts who have maintained a cautious but watchful stance on the company.

In the official announcement, Tidewater's Chief Executive Officer, Jeremy Baines, underscored the deal's significance. "These are important agreements for Tidewater as they provide significant natural gas volume to the BRC from dedicated facilities on a long-term basis," he stated. The agreements not only lock in revenue but also secure the marketing rights for all ethane, propane, and butane extracted from the processed gas, providing Tidewater with additional avenues for value creation in the NGL market.

Maximizing a Core Regional Asset

The Brazeau River Complex is one of the cornerstones of Tidewater's portfolio. Located in the productive West Pembina region of the Deep Basin, the facility is a full-service hub for area producers. It boasts a deep-cut natural gas processing capacity of 180 MMcf/d and an NGL fractionation capacity of approximately 10,000 barrels per day. The complex also offers vital infrastructure, including pipeline connections, storage facilities, and truck loading capabilities.

With these new agreements, Tidewater is making a clear strategic choice to maximize the value of its existing assets. The 75 MMcf/d of committed volume represents a substantial portion of the BRC's total processing capacity. According to Baines, the facility's capacity is now "highly contracted," and the company is already in discussions with other parties to sell the remaining available capacity. This focus on increasing utilization, rather than pursuing costly new expansions, is a capital-efficient strategy aimed at driving profitability from its established footprint.

After a successful and on-budget maintenance turnaround at the BRC in 2024, the facility is well-positioned to handle these renewed and new volumes reliably, reinforcing its role as an essential piece of infrastructure for producers operating in the historically significant Pembina field.

Navigating a Competitive Midstream Landscape

Tidewater operates in a competitive environment in central Alberta, with major players like Keyera Corp. and Pembina Pipeline Corp. also having significant infrastructure and operations in the region. In this landscape, securing long-term producer commitments is a key differentiator and a testament to the BRC's service offering and strategic location.

The inclusion of an evergreen clause in the contracts is particularly noteworthy. This flexible, long-term structure fosters a sustainable partnership model, moving beyond purely transactional relationships. It provides the producer with a guaranteed home for its gas and access to markets, while giving Tidewater the long-range visibility needed for operational planning and financial forecasting. This kind of symbiotic relationship is crucial for navigating the cyclical nature of the energy industry.

By offering a comprehensive suite of services—from processing and fractionation to storage and market access—Tidewater's BRC provides a one-stop-shop solution that is attractive to producers looking to streamline their operations and maximize the value of their production.

Investor Outlook and Market Sentiment

The announcement comes at a time when investors are closely scrutinizing the performance and strategy of energy infrastructure companies. Tidewater's stock (TSX: TWM) has experienced volatility over the past year, and the consensus among market analysts has leaned towards a 'Hold' or 'Neutral' rating, with many pointing to the company's leverage and recent profitability challenges as areas of concern.

However, this series of agreements directly addresses those concerns by creating a durable, fee-based revenue stream that is less susceptible to commodity price swings. It provides tangible evidence of management's strategy to enhance asset utilization and strengthen the balance sheet. While the market's immediate reaction is still unfolding, such news typically supports a more positive long-term outlook and may influence analysts to reconsider their price targets, which already suggest a potential upside from current trading levels.

For a company focused on demonstrating the value of its integrated network of assets, locking in a significant portion of the BRC's capacity for five years or more is a powerful statement. These contracts represent a foundational element of that strategy, providing a clearer view of the company's operational and financial path forward.