Tidewater Renewables Q3 2026 Earnings Results & Report

Tidewater Renewables EPS Results

• Actual EPS: -C$0.43
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Tidewater Renewables Revenue Results

• Actual Revenue: C$239.90 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Tidewater Renewables (TSE:LCFS) is a multi-faceted, energy transition company. The Corporation is focused on the production of low carbon fuels, including renewable diesel and sustainable aviation fuel. The Corporation was created in response to the growing demand for renewable fuels in North America and to capitalize on its potential to efficiently turn a wide variety of renewable feedstocks (such as canola oil, soybean oil, used cooking oil, distillers corn oil, tallow, and other biomasses) into low carbon fuels. Tidewater Renewables' objective is to become a leading Canadian renewable fuel producer. The Corporation is pursuing this objective through the ownership, development, and operation of clean fuels projects and related infrastructure, that utilize existing proven technologies.

Tidewater Renewables Q3 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Record operating and financial performance: Tidewater reported Q3 adjusted EBITDA of CAD 96.9 million, supported by record renewable-diesel throughput at 114% of design capacity and stronger refinery margins.
• Positive Sentiment: Higher guidance and lower leverage: The company raised 2026 adjusted EBITDA guidance to CAD 300–320 million and cut capital-spending guidance to CAD 15–20 million. Net debt fell CAD 139 million in the first nine months, bringing leverage to 1.3x.
• Positive Sentiment: Potential regulatory upside: If proposed Clean Fuel Regulations amendments are finalized as drafted, Tidewater estimates CAD 30–40 million of additional 2027 EBITDA from credits tied to 2026 production, plus CAD 40–50 million from expected 2027 production. These estimates depend on the rules, credit prices, and production assumptions.
• Positive Sentiment: Proposed combination could deliver synergies: Tidewater Midstream plans to acquire the remaining Tidewater Renewables shares, with CAD 30–40 million of estimated NPV synergies and expected modest, positive accretion for Midstream shareholders in 2028. The deal is subject to closing conditions and shareholder approvals.
• Negative Sentiment: SAF project decision pushed back: Tidewater extended its target for a potential final investment decision to the first half of 2027, citing regulatory uncertainty and the need to advance offtake agreements and financing.

Presentation

[Operator]

Morning, ladies and gentlemen, and welcome to the Tidewater Renewables Limited Q3 2026 financial results call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Thursday, November 12, 2026. I would now like to turn the conference call over to Mr. Ian Quartly, CFO. Please go ahead.

[Ian Quartly, CFO at Tidewater Renewables Limited]

Thanks, Kelsey, and welcome everyone to the joint conference call for the third quarter 2026 results of both Tidewater Midstream and Infrastructure Limited and Tidewater Renewables Limited. Joining me today is our CEO, Jeremy Baines, who will provide an update on the operational performance of our assets, regulatory tailwinds, and favorable market conditions. He will also provide an update on the proposed combination of Tidewater Midstream and Tidewater Renewables, which was initially announced on November 2. I will follow with the financial results and details on the increased 2026 financial guidance, and then we'll open the line for your questions. This morning, both Tidewater Midstream and Tidewater Renewables reported results for the third quarter ended September 30, 2026. A copy of the news release, financial statements, and MD&As may be accessed on SEDAR+ or on the respective companies' websites.

[Ian Quartly, CFO at Tidewater Renewables Limited]

Before we get started, I'd like to note that today's call is being recorded for the benefit of individual shareholders, the media, and other interested parties who may want to review the call at a later time. The recorded call will be available through Cision. Some of the comments made today may be forward-looking in nature and are based on Tidewater's current expectations, judgments, and projections. Forward-looking statements we express today are subject to risks and uncertainties, which can cause actual results to differ from expectations. Further, some of the information provided refers to non-GAAP measures. To know more about the forward-looking statements, non-GAAP measures, and risk factors, please see the company's various financial reports, which are available on the company's websites and on SEDAR+. I'll now turn the call over to Jeremy.

[Jeremy Baines, CEO at Tidewater Renewables Limited]

Thanks, Ian, and thanks to everyone for joining us today. I'll start with our fuels business. During the third quarter, the renewable diesel complex achieved record average daily throughput of 3,411 barrels per day. This represents a 114% utilization rate. The ability to consistently run significantly above the 3,000 barrels per day design capacity of the facility has been possible due to the excellent work of our operations team, who completed a number of very low-cost debottleneck initiatives earlier in the year. We expect to be able to continue to run at these elevated utilization rates throughout the coming winter months, except for short periods of reduced rates to complete scheduled maintenance.

[Jeremy Baines, CEO at Tidewater Renewables Limited]

Producing above nameplate capacity during a quarter where we realized record margins on the sale of renewable diesel sold at U.S. import parity pricing and captured an additional CAD 0.16 per liter of margin from the Biofuels Production Incentive led to the record financial results that Ian will discuss later on the call. Moving over to the conventional refinery, throughput at the Prince George refinery averaged 11,798 barrels per day in the third quarter. This represents a 98% utilization rate. Market conditions for refined products, especially diesel, were at historically high levels during the third quarter due to global energy supply disruptions and the reduction of global refining capacity, particularly in the Middle East and Russia. As a result, the Prince George crack spread averaged CAD 160 per barrel in the third quarter of 2026, a 35% increase from the second quarter of 2026.

[Jeremy Baines, CEO at Tidewater Renewables Limited]

As previously disclosed, Tidewater Midstream hedged approximately 50% of its crack spread exposure for 2026, and therefore the company realized the higher market crack spread on approximately half of its third quarter sales, with the balance of the sales being realized at the previously hedged price. Looking ahead to the fourth quarter of the year and beyond, the North American refining margins have receded somewhat from the historic pricing seen during the third quarter. However, margins are expected to remain very constructive. Globally, there is still approximately 7% of refinery capacity offline, and a significant portion of that is due to damaged equipment that will take an extended time to repair or rebuild. In addition, diesel and gasoline inventories both remain below the five-year historical range, which will limit the market's ability to absorb future refinery outages, transportation disruptions, or demand increases without significant price increases.

[Jeremy Baines, CEO at Tidewater Renewables Limited]

For 2027, Tidewater is approximately 50% hedged on its 2-1-1 crack spread exposure and 30% hedged on its R100 and soybean oil exposure, both at fixed prices significantly above mid-cycle pricing and 2026 hedge pricing. We view the hedging program as an important risk management tool that reduces commodity price exposure and establishes a baseline for the Corporation's free cash flow. Moving now to regulatory changes, where there have been significant developments at both the provincial and federal levels. In late October, the Conservative Party of British Columbia won a majority government in the provincial elections. While a change in government can lead to policy uncertainty, I want to share some important perspectives. The first is that the Conservative Party's published plan for a stronger B.C. includes the development of a provincial bioenergy strategy that will prioritize new low-carbon energy products within the existing clean fuels hub of Prince George.

[Jeremy Baines, CEO at Tidewater Renewables Limited]

The BC Conservatives also launched their Energy Superpower Plan, which intends to spur significant investment in energy infrastructure within BC, including the building of new LNG plants, tripling natural gas production by 2035 and further developing energy infrastructure corridors with new pipelines and transmission lines. These major construction projects increase demand for refined products, particularly diesel, within the orbit of Prince George, where Tidewater operates with a competitive logistical advantage. The third point to highlight is that while the newly elected BC Conservative Party committed to repealing the CleanBC Climate Plan, it is important to point out that the BC Low Carbon Fuel Standard is a distinct statutory program originally established in 2008 by the BC Liberal Party. The Low Carbon Fuels Act is not a component of CleanBC, and therefore, any repeal of the CleanBC Climate Plan does not terminate the BC LCFS program.

[Jeremy Baines, CEO at Tidewater Renewables Limited]

At the federal level, the Canadian government announced the proposed amendments to the Clean Fuel Regulations on October 27, 2026, which were aimed at strengthening Canada's low-carbon fuel industry. The key highlights of the proposed amendments were the CFR credit multipliers for Canadian-produced low-carbon fuels, specifically a 1.8x multiplier for SAF, a 1.5 times multiplier for renewable diesel, a 1.4x multiplier for co-processed diesel and biodiesel, and a 1.3x multiplier for co-processed gasoline and ethanol. Tidewater's HDRD complex will benefit from the proposed renewable diesel credit multiplier, and the Prince George Refinery will also benefit through its co-processing assets and via the blending of low-carbon fuels.

[Jeremy Baines, CEO at Tidewater Renewables Limited]

Co-processing canola at the PGR results in approximately 700 barrels per day of low-carbon diesel and gasoline that will benefit from the proposed CFR credit multipliers, and the additional CFR credits that Tidewater will receive from purchased Canadian biodiesel and ethanol that is blended into conventional refined products will also benefit from the proposed CFR credit multipliers. Ian will provide further details on the expected financial benefits from the proposed amendments later in this call, which are significant. Next, moving over to Sustainable Aviation Fuel Project. The proposed targeted amendments to the Clean Fuel Regulations, specifically the 1.8x credit multiplier for SAF, provides meaningful economic support for our proposed SAF project.

[Jeremy Baines, CEO at Tidewater Renewables Limited]

However, the targeted amendments are now subject to a 75-day federal consultation period that runs through to January 14, 2027, after which the federal government could make further changes to the regulations before they are finalized and come into force. Given the ongoing regulatory uncertainty, Tidewater has made the prudent decision to extend its targeted timeline for a potential FID into the first half of 2027. This extension will allow the Corporation to actively participate in the 75-day federal CFR consultation period, continue to advocate for further regulatory amendments that will support the creating of domestic SAF industry, and continue advancing long-term offtake agreements and committed financing required to support efficient project execution. Moving now to the midstream assets.

[Jeremy Baines, CEO at Tidewater Renewables Limited]

At the BRC, gas processing throughput averaged 95 million cubic feet per day during the third quarter of 2026, an 11 million cubic foot per day decrease from the second quarter of 2026. The lower throughput was primarily due to upstream producer maintenance and lower AECO pricing, which reduced producer volumes coming through the facility, which also decreased fractionation facility utilization to 72% in the third quarter. We continue to hold active discussions with prospective and existing customers as we focus on increasing utilization at the BRC. The Ram River Gas Plant remains temporarily curtailed while sulfur handling operations continue to operate. Current market prices, especially for sulfur, are at levels that we believe are highly economic for sour gas producers, and our intent is to restart the gas plant when production in the area resumes.

[Jeremy Baines, CEO at Tidewater Renewables Limited]

As you are all aware, Tidewater Midstream and Tidewater Renewables announced a proposed combination on November 2, under which Tidewater Midstream will acquire all Tidewater Renewables shares it does not already own in an all-share transaction. Tidewater Renewables shareholders will receive 0.88 of a Tidewater Midstream share for each Tidewater Renewables share they hold.

[Jeremy Baines, CEO at Tidewater Renewables Limited]

The transaction will enhance value for all shareholders by simplifying the corporate structure under one board, one management team, and one corporate strategy, improved capital markets access through larger public float, enhanced trading liquidity, and a simplified investment proposition, creating a stronger financial profile with a unified financing strategy and capital allocation framework, generating estimated transaction synergies of CAD 30 million-CAD 40 million on a net present value basis through reduced public company costs, operating and financing efficiencies, and an extended tax horizon, creating a broader, more diversified asset base best positioned to capture upside from the current market environment and supportive policy tailwinds. The transaction has been unanimously recommended by the special committees of independent directors of both companies and approved by their respective non-conflicted directors.

[Jeremy Baines, CEO at Tidewater Renewables Limited]

Shareholders representing approximately 49% of Tidewater Renewables shares eligible for the minority vote and approximately 44% of outstanding Tidewater Midstream shares have entered into voting and support agreements in favor of the transaction. As a result, we are highly confident that the required shareholder approvals will be received, and we expect the transaction to close on or about December 18, 2026, subject to the satisfaction or waiver of the applicable closing conditions. Following completion of the transaction, the combined entity will have four central priorities. Number one, maintain balance sheet flexibility with near-term free cash flow continuing to support debt reductions as we optimize our long-term capital structure. Two, evaluate growth and margin expansion opportunities, focusing on increasing utilization of existing assets, expanding services across our business and selectively pursuing brownfield, tuck-in, and greenfield opportunities that meet our return thresholds.

[Jeremy Baines, CEO at Tidewater Renewables Limited]

Three, we will continue to optimize our portfolio as we continue to assess existing asset performance, strategic fit, and long-term free cash flow generation, including opportunities to redeploy capital toward higher value opportunities. And fourth, as always, operational excellence and prudent risk management, which will prioritize reliable, cost-effective operations, disciplined capital allocation, and a measured hedging strategy, which looks to mitigate commodity and margin volatility. The proposed combination will provide management with greater flexibility to execute on these priorities while maintaining balance sheet discipline. With that, I'll now turn it to Ian for the financial review.

[Ian Quartly, CFO at Tidewater Renewables Limited]

Thanks, Jeremy. For the third quarter of 2026, Tidewater reported record consolidated adjusted EBITDA of CAD 96.9 million, an CAD 8 million improvement over the second quarter of 2026. Tidewater Renewables generated adjusted EBITDA of CAD 54.6 million during the third quarter. This performance was underpinned by the HDRD complex running above nameplate capacity, which allowed us to capture very favorable market pricing by leveraging our offtake contracts that are indexed to U.S. import parity pricing benchmarks. Tidewater Midstream generated deconsolidated adjusted EBITDA of CAD 42.3 million in the third quarter of 2026, an increase of CAD 9.4 million from the second quarter of 2026. This performance was primarily driven by stronger crack spreads at the Prince George refinery, which were partially offset by realized losses on the crack spread hedges.

[Ian Quartly, CFO at Tidewater Renewables Limited]

Moving to the new credit facilities and leverage, the Corporation has made significant progress towards our debt reduction and deleveraging targets during the third quarter. Consolidated net debt decreased by CAD 97.4 million during the third quarter, which was driven by a CAD 38.8 million reduction in the Tidewater Midstream deconsolidated credit facility balances, in addition to a CAD 58.6 million reduction in the net debt at Tidewater Renewables. Over the first nine months of 2026, consolidated net debt has now decreased by CAD 139 million. When combined with the strong adjusted EBITDA reported in both the third quarter and year-to-date periods, this has resulted in significant leverage reductions. The consolidated debt-to-adjusted EBITDA ratio of 1.3x is now below the run rate net debt-to-adjusted EBITDA target leverage range of 1.5x-2.5x.

[Ian Quartly, CFO at Tidewater Renewables Limited]

Another significant highlight for the Corporation is the fully underwritten debt commitment letter that was executed and announced as part of the proposed combination of Tidewater Midstream and Tidewater Renewables. Two of our long-term lenders, National Bank of Canada and ATB Financial, have committed to underwrite up to CAD 400 million of senior secured credit facilities to enhance the financing flexibility of the combined company to refinance existing debt and for general corporate purposes, subject to closing of the transaction. The underwritten credit facility will have a maturity of three years from the closing date of the transaction, and the pricing is significantly more favorable than what Tidewater is paying under the existing first and second lien credit facilities. When combined with the lower net debt outstanding, Tidewater is expecting to have significantly lower cash interest costs in 2027 when compared to 2026.

[Ian Quartly, CFO at Tidewater Renewables Limited]

With the release of the third quarter financial results this morning, we also announced increases to the full year 2026 adjusted EBITDA guidance and reductions to the full year 2026 capital expenditures guidance. Consolidated adjusted EBITDA is now forecasted to be between CAD 300 million and CAD 320 million, an increase of 29% over the midpoint of the previous guidance. The primary drivers for the increased guidance are higher facility utilization at the Prince George refinery and the renewable diesel complex, and sustained strength in forward prices for crack spreads, renewable diesel, and emissions credits. It is important to highlight that the increased 2026 EBITDA guidance excludes any favorable impacts from the proposed targeted amendments to the Clean Fuel Regulations, as the amendments are still only proposed and are not expected to be finalized until late Q1 or into Q2 2027.

[Ian Quartly, CFO at Tidewater Renewables Limited]

If the amendments are finalized as proposed, there would be an additional CAD 30 million-CAD 40 million of expected adjusted EBITDA recorded in 2027 for CFR emissions credits generated on 2026's production and sales of renewable diesel, co-processed diesel and gasoline, and blended biodiesel and ethanol. A further CAD 40 million-CAD 50 million of adjusted EBITDA is anticipated for CFR emissions credits generated on expected 2027 production and sales of these low-carbon fuels. The different adjusted EBITDA impacts between 2026 and 2027 is primarily due to differences in contractual arrangements in place between those two years.

[Ian Quartly, CFO at Tidewater Renewables Limited]

The forecasted increases in EBITDA are based on a number of significant assumptions, including that the proposed regulations do not change following the conclusion of the 75-day consultation period, that the CFR credits related to the retrospective application of the credit multipliers to the 2026 period will be received in the first half of 2027, that the CFR credit market prices will average between CAD 300 and CAD 400 per credit during 2027, and that the 2027 production and sales levels will be consistent with 2026 actual and forecasted levels. If any of these assumptions were to change, then the expected impact on the cohort operations adjusted EBITDA will also change. Forecasted 2026 consolidated capital expenditures have been revised down by CAD 5 million to the new guidance range of CAD 15 million-CAD 20 million.

[Ian Quartly, CFO at Tidewater Renewables Limited]

This capital guidance includes both growth and maintenance capital and is net of the BC LCFS credits expected to be received under executed initiative agreements with the capital projects. By maintaining a disciplined capital program while increasing full year 2026 adjusted EBITDA guidance, we expect that the business will continue to generate very meaningful free cash flow that will continue to be primarily directed towards debt reduction. Looking ahead to 2027, we intend to release the 2027 financial guidance following the close of the combination of Tidewater Midstream and Tidewater Renewables, which is expected on or around December 18th, 2026. That concludes our prepared remarks. Kelsey, please open the line for questions.

[Operator]

Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Should you have a question, please press the star followed by the one on your touch-tone phone. You will then hear a prompt that your hand has been raised. If you wish to decline from the polling process, please press the star followed by the two. If you are using a speakerphone, please lift the handset before pressing any keys. One moment, please, for your first question. Your first question comes from Rob Hope from Scotiabank. Please go ahead.

[Rob Hope, Analyst at Scotiabank]

Morning, everyone. Congrats on the great results and moving down the leverage there. Can we just dive a little bit deeper into the commentary that 2027 results will exceed 2026? Just want to make sure I fully understand those, and I realize you just went through a couple of them. Can you maybe speak a little bit more in terms of what you think crack spreads to be for 2027, where levels are hedged for 2027 in terms of pricing? Then just want to confirm that the 2027 commentary that it will exceed 2026 assumes the increased multipliers for the CFR.

[Jeremy Baines, CEO at Tidewater Renewables Limited]

Maybe I'll jump in here, and then Ian can help out with some of the more details. When we look at our 2027 and we look at the levels that we've hedged 2026 at, if you just take the current forward curve for crack spreads out, we will materially exceed what we've done in 2026. Then when you layer on top of that the impact of the new CFR targeted amendments, assuming they're in place for 2027, that adds another significant piece to that outlook that is materially higher than the results we've delivered in 2026. Keep in mind, in 2026, we did hedge fairly early, and prices continued to move up after that. It is very robust outlook for 2027. Obviously, the strength in the regulatory changes we've seen are material over the last periods.

[Jeremy Baines, CEO at Tidewater Renewables Limited]

The continued deleveraging, continued optimization, the operational rates that we've achieved in 2026, we can do in, we think, 2027. If we do that, probably it'll be a little bit better. We're pretty optimistic about where the business is going forward and the strength of the ability to generate cash flow from the platform.

[Rob Hope, Analyst at Scotiabank]

I appreciate that. Then maybe moving over to the changes in CFR. I imagine you've been in contact with the federal government before and after that. Can you maybe speak to the consultations that you've been doing with the government as well as what confidence you have that the regulations will pass as roughly filed or proposed?

[Jeremy Baines, CEO at Tidewater Renewables Limited]

Yeah. So obviously, the government takes a very thoughtful and extensive evaluation as they consider what they want to do with these regulations. I cannot remember exactly when they first posted the sort of draft, but it was earlier in 2026. We gave extensive and full written, I guess, suggestions or comments on those regulations. They have now posted them to the Gazette. Typically, tweaks after this are not huge. We continue to advocate for certain things that we think would be enhancements to these amendments that will support the Canadian energy industry, and we will again submit fulsome comments. But once these things are posted, they go through this second comment period. We do fully expect that these will be implemented. Our best guess is substantially in the form that they have outlined. They have done a ton of work.

[Jeremy Baines, CEO at Tidewater Renewables Limited]

This has probably been going on for over a year at the federal level to try to make sure they get these right, and we do expect they will be in place.

[Rob Hope, Analyst at Scotiabank]

That is great. Thank you.

[Operator]

Thank you. Just as a reminder, if you do wish to ask a question, please press star one. Your next question comes from Maurice Choy from RBC Capital Markets. Please go ahead.

[Maurice Choy, Analyst at RBC Capital Markets]

Thanks, and good morning, everyone. Just wanted to continue the discussion about government support, or more specifically, actually, trying to understand what are the remaining gating factors for the SAF project. You mentioned earlier the 75-day consultation period. Is that really the major, if not only, thing that remains for you to FID this? As a quick follow-up, you also, in your prepared remarks, discussed the upcoming BC government's provincial bioenergy strategy. Is that something that you would also need to wait for, and what your thoughts are in terms of timing, if so?

[Jeremy Baines, CEO at Tidewater Renewables Limited]

I think consistent with our previous disclosure, one of the key things we said that was required in order for us to make the FID decision on the SAF project was an appropriate multiplier for SAF. The 1.8 times is fairly close to what we were suggesting in the consultation. That part of the SAF equation is, assuming these become final rules and law, has been met. You will also recall we have talked about the support we received for the renewable diesel facility through the Part 3 agreements with British Columbia. We expect to receive, call it a similar-ish level of support there. Once we get that finalized, we are in pretty good shape on a SAF FID. We continue to advocate for certain regulatory refinements to support the SAF industry to make this an investable project, and we are continuing to make progress.

[Jeremy Baines, CEO at Tidewater Renewables Limited]

Obviously, through these targeted amendments, the federal government is supportive. BC has been supportive. Obviously, there is a change of government, but we expect that they will continue to be supportive of this when you read their policy platform. Prince George is going to be a focus from an energy point of view, and we are the leader in, I would say, Canada from the first construction of a greenfield renewable diesel facility. Our SAF project in Prince George is part of that policy plank that they are trying to move forward. We are excited. We continue to make progress. We are not there yet. We need a little more certainty from the government on some of these regulatory things, but we continue to make good progress and work towards getting that project FID.

[Maurice Choy, Analyst at RBC Capital Markets]

Just to be clear, so given what you just said about the policy platform for the BC Conservatives, and also potentially you might get a similar-ish level of support from the BC government, you do plan to wait for the bioenergy strategy to come out, or you think you have what you need?

[Jeremy Baines, CEO at Tidewater Renewables Limited]

No. With the finalization of the federal targeted amendments with a successful Part 3 agreement with B.C., maybe a couple other small regulatory tweaks, we are ready to go. I don't think we need to wait for that specific policy plank to come out from the BC Conservatives. We did give them some suggestions during their campaign, and if you look back historically, they've been supportive of the Prince George refining complex. When they were leading the opposition in British Columbia, they did bring forward some potential private members' bills supporting the complex. I think their plank is pretty clear. They're on that same path of they want B.C. to be a part of Canada's Energy Superpower Plan, both conventional and clean, and we are the leaders in clean energy in B.C.

[Maurice Choy, Analyst at RBC Capital Markets]

Understood. If I could just finish off with a question about the proposed merger, now that you're not in blackout. From the perspective of a Tidewater Midstream investor, what is your expectation for the DCF per share accretion? Alongside that, what synergies do you need to achieve that? If you could elaborate a little bit more about synergies beyond just G&A, that would be appreciated.

[Ian Quartly, CFO at Tidewater Renewables Limited]

Yeah. Hey, Maurice. It's Ian here. So, we've disclosed CAD 30 million-CAD 40 million NPV of synergies. That's broken down as reduction in kind of duplicative public corporate costs, some significant financing savings, and pushing out cash tax payable through the merging of kind of the tax pools under the combined entity. So, yeah, that's obviously a meaningful synergies, but operationally and strategically, the synergies from the transactions will definitely be favorable for both sets of shareholders, Tidewater Midstream and Renewables. We think the accretion is small, but still meaningful for the Tidewater Midstream shareholders.

[Maurice Choy, Analyst at RBC Capital Markets]

Just to be clear, only because the CAD 30 million, CAD 40 million is an NPV. When you speak about accretion being small but positive, which is good, what timeline are we speaking about here?

[Ian Quartly, CFO at Tidewater Renewables Limited]

Yeah. We are looking at 2028 as the key year for the accretion.

[Maurice Choy, Analyst at RBC Capital Markets]

Thank you for confirming that.

[Operator]

Thank you. There are no further questions at this time. I would like to turn it back to Mr. Ian Quartly. Please go ahead.

[Ian Quartly, CFO at Tidewater Renewables Limited]

Thanks, Kelsey. That ends our prepared remarks. Both Jeremy and I are available to address any outstanding items with our contact information at the bottom of each company's press release. Thank you.

[Operator]

Ladies and gentlemen, this does conclude your conference call for today. We thank you very much for your participation, and you may now disconnect. Have a great day.

Participants

Executives

• Ian Quartly, CFO
• Jeremy Baines, CEO

Analysts

• Rob Hope, Analyst at Scotiabank
• Maurice Choy, Analyst at RBC Capital Markets