Nov. 10, 2022

Tidewater Renewables Ltd. ("Tidewater Renewables" or the "Corporation") (TSX: LCFS) is pleased to announce that it has filed its condensed interim consolidated financial statements and Management's Discussion and Analysis ("MD&A") for the three and nine month periods ended September 30, 2022.


  • Tidewater Renewables delivered another solid quarter with Adjusted EBITDA(1) of $16.1 million in the third quarter of 2022. Net cash provided by operating activities totaled $5.2 million for the third quarter of 2022, with distributable cash flow(1) of $9.4 million.
  • The Corporation's base business continues to exceed previous guidance, with 2022 Adjusted EBITDA(1) now expected to be between $55 – 65 million. Tidewater Renewables remains confident in its ability to deliver 2023 Run Rate EBITDA(1) of $140 - 150 million, before any additional value from Clean Fuel Regulation ("CFR") credits. Management estimates that the Renewable Diesel & Renewable Hydrogen ("HDRD") Complex has the potential to generate an incremental $30 million of Run Rate EBITDA(1) from CFR credits, assuming pricing of $95 -100 per credit.
  • The Corporation has made significant progress on its 3,000 bbl/d HDRD Complex, including completion of construction on multiple refinery modules. The HDRD Complex remains on schedule to commission in Q1 2023 with production increasing through Q2 2023.
  • Consistent with the global economic environment, the Corporation is experiencing capital cost inflationary pressures, as it resolves supply chain disruptions while adhering to the construction timeline. The Corporation expects gross capital costs to be approximately 10% higher than the previously announced $235 million. The incremental gross capital is expected to be partially offset by the increased value of the British Columbia Low Carbon Fuel Standard ("BC LCFS") credits issued under the Renewable Diesel ‎Project Part 3 Agreement with the Government of British Columbia as compared to budget. Capital costs net of BC LCFS credits are expected to be approximately $130 - 140 million. The project's economics remain attractive, and payback is expected in less than two years.
  • During the third quarter of 2022, the Corporation made significant progress on its renewable natural gas ("RNG") business, including the completion of preliminary engineering & design on the announced RNG Facility located in Foothills County near High River, Alberta (the "RNG Facility"). On October 17, 2022, the Corporation announced it had entered into a 20-year RNG offtake agreement with FortisBC Energy Inc. ("FortisBC"), whereby FortisBC expects to purchase up to 100% of the RNG Facility's design capacity. The Corporation has also secured a long-term feedstock supply from the Corporation's strategic partnership with Rimrock Cattle Company Ltd. ("RCC").
  • In August 2022, Phase 1 of the fluid catalytic cracking ("FCC") co-processing project was successfully commissioned and began refining various renewable feedstocks, including those provided by the Corporation's feedstock collection business, into renewable diesel and renewable gasoline. Full commissioning of the FCC co-processing project is expected in 2023.
  • On October 24, 2022, the Corporation announced the closing of a $150.0 million five-year senior secured second lien credit facility (the "AIMCo Facility") with an affiliate of Alberta Investment Management Corporation ("AIMCo"). The AIMCo Facility initially bears interest of 6.50% but is subject to scheduled escalations in year four and year five as well as inflation-based adjustments. In conjunction with the AIMCo Facility, Tidewater Renewables issued 3.375 million warrants to AIMCo. Each warrant entitles the holder to purchase one common share of Tidewater Renewables at a price of $14.84, subject to certain adjustments, for a term of five years.


Adjusted EBITDA, distributable cash flow, net debt and Run Rate EBITDA used throughout this press release are non-GAAP financial measures or ratios. See the "Non-GAAP and Other Financial Measures" in this press release and the Corporation's MD&A for information on each non-GAAP financial measure or ratio.

For additional information, please see the full press release.

Selected financial and operating information are outlined in the full press release and should be read with the Corporation's condensed interim consolidated financial statements and related MD&A for the three month and nine month periods ended September 30, 2022, which are available under the Corporation's profile on SEDAR at www.sedar.com and on its website at www.tidewater-renewables.com.