Tidewater Midstream and Infrastructure Ltd.

Tidewater Renewables reported record adjusted EBITDA of $56 million in Q2 2026, including $7.7 million of expected proceeds recognized from the biofuels production incentive and $7.7 million of adjusted EBITDA from the cattle company equity investment. Tidewater Midstream reported deconsolidated adjusted EBITDA of $32.9 million, up $7.3 million from Q1 2026, while consolidated adjusted EBITDA was a quarterly record $88.9 million, up $39.2 million sequentially. Consolidated net debt decreased by $44.4 million in the quarter; Tidewater Renewables debt-to-adjusted EBITDA was 1.47x, Tidewater Midstream was 2.3x, and consolidated leverage was 1.7x. For 2026, consolidated adjusted EBITDA guidance was raised to $230 million-$250 million, Renewables guidance to $130 million-$140 million, and Midstream guidance to $100 million-$110 million. Capital expenditures remain unchanged at $2 million-$3 million for Tidewater Renewables and $20 million-$25 million for Tidewater consolidated.

Jeremy Baines emphasized operational execution, higher utilization, and favorable market and regulatory conditions across both businesses. He said the company is focused on maximizing refinery and renewable diesel performance, improving BRC and Ram River utilization, progressing non-core asset sales, and advancing the SAF project while keeping capital disciplined. His tone was constructive and confident, repeatedly pointing to revenue growth and margin expansion in the second half of 2026.

Ian Quartly highlighted the quarter’s record financial performance and the improvement in leverage. He cited Tidewater Renewables’ $56 million of adjusted EBITDA, Tidewater Midstream’s $32.9 million deconsolidated adjusted EBITDA, and the consolidated $88.9 million record, then noted net debt fell $44.4 million in Q2. He also said the company’s consolidated debt-to-adjusted EBITDA ratio of 1.7x is back within the 1.2x-2.5x target range, and that free cash flow will be primarily directed toward debt reduction.

Analysts focused on the SAF project, hedging, and funding. Management said the SAF project still depends on regulatory support, with targeted ECCC amendments expected in the third quarter, and reiterated a roughly $1.2 billion build-out and a fourth-quarter FID target. On hedging, management said 50% exposure hedged for 2026 is intended to set a cash-flow floor and that they may opportunistically go above 50%, while for funding they said non-core asset sales will continue and the SAF build could be funded over a 3-year period from operating cash flow, potentially alongside a First Nations partner or other partners.