This article first appeared on GuruFocus .
-
Net Loss (Tidewater Renewables):$13.8 million for Q4 2025, compared to $3.4 million for Q4 2024.
-
Adjusted EBITDA (Tidewater Renewables):Negative $3.8 million for Q4 2025, compared to $6.1 million for Q4 2024.
-
Net Loss (Tidewater Midstream):$30 million for Q4 2025, compared to $3.3 million for Q4 2024.
-
Consolidated Adjusted EBITDA (Tidewater Midstream):$3 million for Q4 2025, compared to $20 million for Q4 2024.
-
2026 Adjusted EBITDA Guidance (Consolidated):Expected to range between $150 million and $170 million.
-
2026 Capital Expenditures Guidance (Consolidated):Expected to range between $20 million and $25 million.
-
2026 Adjusted EBITDA Guidance (Tidewater Renewables):Expected to range between $80 million and $90 million.
-
2026 Capital Expenditures Guidance (Tidewater Renewables):Expected to range between $2 million and $3 million.
-
HDRD Complex Production:Expected to produce between 150 million and 170 million liters of renewable diesel in 2026.
-
Prince George Refinery Throughput:Averaged 10,809 barrels per day in Q4 2025, a 5% increase from Q3 2025.
-
Prince George Crack Spread:Averaged $94 per barrel in Q4 2025, $98 per barrel in February 2026, and $113 per barrel in March 2026 month-to-date.
-
BRC Gas Processing Facility Throughput:Averaged 102 million cubic feet per day in Q4 2025, compared to 124 million cubic feet per day in Q3 2025.
Release Date: March 05, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
-
Tidewater Renewables Ltd ( TDWRF ) is set to benefit from the Canadian government's $370 million biofuels production incentive program, which provides nonrepayable cash support at $0.16 per liter for the first 170 million liters produced annually.
-
The company supports proposed amendments to Canada's clean fuel regulations, which could enhance its competitive position if implemented.
-
Operational synergies and cost savings of $10 million to $15 million are expected from the integration of the Western Pipeline system.
-
Tidewater Renewables Ltd ( TDWRF ) has secured long-term agreements for gas handling and NGL supply, providing significant gas volume to the Brazeau River complex.
-
The company is actively progressing its noncore asset sales program, with several significant asset sales expected to be announced soon, potentially unlocking liquidity.
Negative Points
-
Tidewater Renewables Ltd ( TDWRF ) reported a net loss of $13.8 million for the fourth quarter of 2025, a significant increase from the $3.4 million loss in the same period of 2024.
-
Adjusted EBITDA was negative $3.8 million for the fourth quarter of 2025, compared to $6.1 million in the fourth quarter of 2024, impacted by equipment repair and lower sales volumes.
-
The HDRD complex operated at only 48% of design capacity during the fourth quarter due to a planned turnaround and equipment failure.
-
Consolidated net loss attributable to shareholders was $30 million for the fourth quarter of 2025, primarily due to the extended turnaround and absence of an impairment reversal.
-
The BRC gas processing facility experienced a decrease in throughput, averaging 102 million cubic feet per day in the fourth quarter compared to 124 million cubic feet per day in the third quarter of 2025.
Q & A Highlights
Q: Can you provide an update on the non-core asset sales and any long-term targets for these sales? A: Jeremy Baines, CEO: We are on track with our non-core asset sales target, although the timing is taking longer due to the complexity of the discussions. We are in deep discussions on a significant asset with three nonbinding LOIs and expect to announce something in the first half of the year. Another asset is also in similar negotiations, and we hope to announce progress early in the second quarter.
Q: Are there any large changes in nonrecurring expenses or working capital changes that could affect the net debt-to-EBITDA ratio by the end of the year? A: Ian Quartly, CFO: There are no unusual nonrecurring expenses or working capital changes expected that would impact the net debt-to-EBITDA ratio.
Q: What are the net debt-to-EBITDA numbers for both companies, and what is the trajectory for these numbers? A: Jeremy Baines, CEO: Our guidance is achievable, and we have hedged revenue to support these numbers. We expect meaningful leverage reduction with asset sales and cash flow directed towards debt reduction. We are confident in our guidance and see potential upside.
Q: How does the balance sheet affect your capital program and growth opportunities? A: Jeremy Baines, CEO: In the short term, we might be somewhat constrained, but with the cash flow generated in 2026 and asset sales, we expect to reduce leverage significantly. We should be comfortable with our debt-to-EBITDA ratios and have the ability to pursue growth opportunities.
Q: Can you discuss your hedging policy and how it might change in the future? A: Jeremy Baines, CEO: We have been careful with hedging to reduce risk and ensure leverage reduction goals are met. We are currently 50% hedged and may extend this further. This hedging program is special to ensure debt reduction, and we will continue to look for opportunities to underpin cash flow.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
