Issue 33 – The Tide Keeps on Rising
On Tuesday, Tidewater Midstream and Infrastructure Ltd. (TSX: TWM) announced that it will be making the following two acquisitions for $51M:
• Deep Basin and Montney assets;
• 51% interest in a Wapiti Pipeline.
Both assets are in areas where E&P’s are very active and demand for midstream services are high. The two acquisitions are expected to generate approximately $10M in annualized EBITDA, representing a 5x EBITDA multiple ($51M/$10M EBITDA). This is very accretive relative to TWM’s pre-deal evaluation of approximately 7x.