Tidewater Midstream and Infrastructure Ltd. — Call Transcript 2026

Afternoon, ladies and gentlemen, and welcome to the Tidewater fourth quarter 2025 results call. At this time, all lines are in a 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 March 26, 2026. I would now like to turn the conference over to Ian Quartly. Please go ahead. Thanks, Vincent, and welcome everyone to the joint conference call for the fourth quarter 2025 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 operations during the quarter. I will follow with the financial results and 2026 guidance, and then we'll open the line for your questions. This morning, both Tidewater Midstream and Tidewater Renewables reported results for the fourth quarter ended December 31, 2025. A copy of the news releases, financial statements, MD&As and annual information forms may be accessed on SEDAR+ or on your respective company's websites. 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 sessions. 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 these forward-looking statements, non-GAAP measures and risk factors, please see the company's financial reports, which are available on the company's websites and on SEDAR+. Now I'll turn the call over to Jeremy. Thank you, Ian, and thanks to everyone for joining us today. I'll begin with Tidewater Renewables, followed by Tidewater Midstream, covering regulatory and strategic developments, operational performance, and commercial updates. Starting with regulatory developments on September 5th, 2025, the Government of Canada announced a CAD 370 million Biofuels Production Incentive program to address the economic challenges caused by U.S. subsidies and policies. The details of the incentive program were communicated to eligible program recipients, which includes Tidewater Renewables in December of 2025. The program will provide non-repayable cash support from January 2026 to December 2027 at an incentive rate of CAD 0.16 per liter for the first 170 million liters produced annually. With the HDRD Complex expected to produce between 150 million and 170 million liters annually during this period, Tidewater Renewables is ideally positioned to receive between CAD 24 million and CAD 27 million in both 2026 and 2027. In addition, the Government of Canada announced its intention to make targeted amendments to the Clean Fuel Regulations to further support Canada's biofuel sector. There are two amendments currently being evaluated. The first is a minimum renewable domestic content approach, similar to the policy implemented by the Government of British Columbia in early 2025. The second is a credit multiplier approach, whereby domestically produced low carbon fuels would receive a higher ratio of CFR emission credits than imported fuels. Tidewater supports both proposed amendments and is well-positioned to benefit from either or a combination of both if implemented. Moving to operations at the HDRD Complex. The planned turnaround and subsequent equipment failure reduced throughput to 48% of design capacity for the fourth quarter of 2025. As previously communicated, the equipment repair was successfully completed on December 12, 2025, and utilization has been near nameplate capacity during the first few months of 2026. Now let's move over to Tidewater Midstream, starting with regulatory and strategic developments. During the fourth quarter, Tidewater Midstream executed two initiative agreements with the Government of British Columbia to provide BC LCFS credits to support the production of low carbon renewable diesel and renewable gasoline from the hydrotreater and FCC coprocessing units at the Prince George Refinery. The BC LCFS credits awarded under the initiative agreements are expected to fund a significant portion of the cost of the renewable feedstocks required to operate the coprocessing units for the next two years at rates up to 300 barrels per day for each of the units. In addition, the sale of coprocessed low carbon transportation fuels into the British Columbia market will generate CFR emission credits and additional BC LCFS credits for Tidewater Midstream. On the strategic front, Tidewater took over full operational control of the acquired Western Pipeline system during the fourth quarter of 2025. Our team has done an excellent job integrating the pipeline into our existing operational systems and processes, and we expect to fully realize the operational synergies and CAD 10 million-CAD 15 million of annual cost savings we announced previously. In January of 2026, Tidewater announced that it had entered into long-term agreements for gas handling and NGL supply at the Brazeau River complex. Under these agreements, Tidewater will process up to 75 million cubic feet per day of natural gas at the BRC from dedicated producer facilities and will receive the marketing rights to the ethane, propane and butane for initial terms of approximately five years. These are important agreements for Tidewater as they provide significant gas volume to the BRC facility from dedicated producer facilities on a long-term basis. We also continue to advance our non-core asset sales program. On October 21, the Sylvan Lake gas processing facility was sold for cash proceeds of CAD 5.5 million. In December 2025, we received the final CAD 1.5 million of cash proceeds from the sale of the BRC roads. In February 2026, Tidewater Renewables received CAD 2.1 million of final proceeds from the sale of the Renewable Natural Gas Partnership. We continue to work on further divestiture opportunities, including growing market interest in repurposing energy sites for data center developments. We look forward to updating the market as discussions progress. Next, let's turn to operations at the Prince George Refinery. Throughput at the PGR averaged 10,809 barrels per day in the fourth quarter of 2025. A 5% increase from the third quarter of 2025. The semi-annual heat exchanger cleaning was completed in October, and throughput levels averaged approximately 11,900 barrels per day during November and December 2025. Refined product margins improved during the fourth quarter as the Prince George crack spread averaged $94 per barrel, compared to $90 per barrel during the third quarter of 2025. During the start of 2026, the market conditions for refined products have significantly improved. The Prince George crack spread averaged $94 per barrel in January and $98 per barrel in February. During March, the crack spread widened further as a result of the ongoing conflict in Iran and has averaged $113 per barrel in March month to date. As Ian will expand on later, throughout March, we have layered on 2-1-1 crack spread hedges for approximately 50% of forecasted production from April to December 2026 in order to capture the current market strength in the crack spreads. Now we'll move to our broader midstream operations. At the BRC gas processing facility, throughput averaged 102 million cubic feet per day in the fourth quarter, compared to 124 million cubic feet per day in the third quarter of 2025. The decrease was largely due to lower straddle volumes. The Ram River Gas Plant remains temporarily curtailed while sulfur handling operations continue to operate. The current market prices for both natural gas and 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. Looking ahead, we remain focused on driving operational excellence, enhancing margins, and executing strategic initiatives, including maximizing efficiency at the PGR and HDRD Complex, strengthening commercial platforms and offtakes, advancing our SAF project while managing capital prudently, progressing non-core asset sales to unlock liquidity, and we will continue to advocate for a fair regulatory environment. We believe these building blocks position us for both revenue growth and margin expansion during 2026. With that, I'll now turn to Ian for the financial review. Thanks, Jeremy. During the fourth quarter of 2025, Tidewater Renewables reported a net loss of CAD 13.8 million compared to a net loss of CAD 3.4 million for the fourth quarter of 2024. Adjusted EBITDA was CAD -3.8 million for the fourth quarter of 2025 compared to CAD 6.1 million in the fourth quarter of 2024. Both the net income and adjusted EBITDA were impacted by the extended turnarounds and subsequent equipment repair, which resulted in lower sales volumes during the fourth quarter. In addition, there were lower contributions from the equity investments. Turning to Tidewater Midstream, the fourth quarter consolidated net loss attributable to shareholders was CAD 30 million compared to a consolidated net loss attributable to shareholders of CAD 3.3 million for the fourth quarter of 2024. The larger net loss in the fourth quarter of 2025 was primarily due to the Tidewater Renewables extended turnaround previously mentioned and the absence of an impairment reversal in the current quarter. This was offset in part by favorable changes in the fair value of derivative contracts and lower interest rates. Consolidated adjusted EBITDA was CAD 3 million for the fourth quarter of 2025 compared to CAD 20 million in the same period of 2024. The decrease was primarily due to lower gross margins in the current period and lower contributions from the equity investor, partially offset by lower losses on realized derivative contracts. As part of the year-end release, we have announced 2026 financial guidance. Tidewater's consolidated 2026 adjusted EBITDA is expected to range between CAD 150 million and CAD 170 million. Consolidated capital expenditures, which includes both growth and maintenance capital, net of capitalized BC LCFS credits received under the SAF initiative agreement, is expected to range between CAD 20 million-CAD 25 million. Tidewater Renewables expects to deliver annual adjusted EBITDA of between CAD 80 million-CAD 90 million and incur capital expenditures of between CAD 2 million-CAD 3 million. HDRD Complex is expected to benefit from stronger utilization and market prices and is on track to produce between 150 and 170 million liters of renewable diesel in 2026 that is expected to qualify for the CAD 0.16 per liter Canadian Biofuels Production Incentive. Prince George Refinery is also set to benefit from strong utilization as well as operational efficiencies and cost reductions from the acquired Western Pipeline. The restart of the crude processing units are also expected to provide a favorable benefit via reduced compliance costs, while the previously announced initiative agreements will assist Tidewater Midstream in funding feedstock procurement. The BRC is expected to benefit from the commencement of recently executed agreements from gas handling and NGL supply and fractionation. The 2026 financial guidance does not include any EBITDA that would be generated from the resumption of gas processing at Ram. The favorable movements in North American crack spreads, refined product prices, and emission credit prices to start 2026 are expected to provide an additional windfall to the financial results of the Prince George Refinery and the HDRD Complex. In an effort to protect cash flow and manage commodity price risk, Tidewater started to hedge in early March and continued to layer on additional positions throughout the month. Currently, Tidewater Midstream is hedged on approximately 50% of its crack spread, its exposure for the balance of 2026, and Tidewater Renewables is hedged on approximately 50% of the HDRD Complex's revenue and feedstock purchases for the balance of 2026. The CAD 150 million-CAD 170 million of consolidated adjusted EBITDA guidance range is approximately a 400% increase from 2025's actual consolidated adjusted EBITDA. With a disciplined capital program of between CAD 20 million and CAD 25 million for 2026, the resulting cash flow is expected to be primarily directed towards debt reduction. Finally, on March 23rd, 2026, we took another significant step towards strengthening Tidewater Midstream's financial position by amending the senior credit facility. The maturity dates of the CAD 50 million operating facility and the CAD 125 million syndicated facility were both extended from September 2026 to August 2027. The Q1 2026 financial covenant ratios were amended to provide an extra turn on the senior debt to adjusted EBITDA ratio and an extra half turn on both the debt to adjusted EBITDA ratio and the adjusted EBITDA to interest coverage ratio. The financial covenants for the first, second and third quarters of 2026 will be calculated on an annualized basis instead of a trailing twelve-month basis to reflect the significant step change in the financial results of Tidewater Midstream in 2026. That concludes our prepared remarks. Vincent, please open the line for questions. Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star followed by the one on your touchtone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star followed by the two. Your first question comes from Rob Hope with Scotiabank. Please go ahead. Hello, everyone. Thanks for taking my question. Maybe the first one is on the non-core sale. Can you give us an update on kind of what stage those discussions are at, and whether or not you have a longer-term target of how much incremental asset sales you'd like to get done? Yeah. Thanks, Rob, for the question. So last year, we gave some guidance of what we were targeting for our non-core asset sales. We continue to be on track to hit that number. Timing is taking a little bit longer than we would like, but these are complex bespoke type discussions around the asset sales. We are in deep discussions around a very significant asset and have three non-binding LOIs, and we're working to turn it into one binding LOI. You know, we expect we'll be able to announce something this year, hopefully in the first half of the year on that. We have another asset that we are in a similar point of negotiations with a third party that we're working to move to binding, and hopefully we'll be able to put something out early in second quarter on that one as well. We continue to be on track. Timing, just due to complexity of some of these assets, is taking us a little longer, but we expect to be able to deliver on the number we put out last year. Okay, and appreciate the EBITDA and CapEx guidance. You know, as we look through our model and try to get to kind of a net debt number at the end of the year, assuming no asset sales, you know, are there any large changes in non-recurring expenses or working capital changes that we should watch out for? Really, we're just trying to get a better sense of where you think you'll be exiting the year on a net debt to EBITDA basis. Yeah, Rob, there's nothing unusual from a non-recurring or working capital perspective. Okay. All right. Appreciate that. Thank you. Your next question comes from the line of Maurice Choy with RBC Capital Markets. Please go ahead. Thanks, and good morning, everyone. Maybe I'll just pick up on the last question just now then. If you could give us an idea as to what your net debt to EBITDA numbers were for both companies analyzed basis as of the end of the year? Take one step further, could you just paint a picture for us what this trajectory looks like, you know, whether that be through the rest of this year or even into next year? Obviously a lot of cash flows are being directed towards repaying debt. Just, if you could help us with that'd be great. Let me start, Ian. I'll jump in. You know, we've put out a number for guidance that we feel is extremely achievable. We have locked in the revenue sides at both companies, half of them to ensure we have some support on those numbers. We have not included in those numbers, like Ian said, a restart of Ram, which could be extremely helpful to that. You know, our methodology on our guidances, we have gone and used a mid-cycle crack spread which is below where the current strip is today. We think it's very achievable and maybe probably cautious guidance. It's been very unpredictable over the last four weeks of where the forward market is for some of our products. If you take our guidance and you take off our capital and you take off our interest expense, all of that will go to debt. It's a fairly meaningful number. Then on top of that, we do expect to progress our non-core asset sales, and there will be additional debt reduction related to that. If you take all of that together, you can you know come up with your estimate of what that net debt to EBITDA looks like. We feel very grounded in our guidance with we do see upside to it on that front. Thanks. Maybe as a quick follow-up and, you know, philosophically, when you think about your capital program opportunities to improve your portfolio, do you see balance sheet as being a limiter for you? Presumably yes, for 2026, but, you know, at what point do you think of that as being, quote-unquote, unleashed and you're able to grow extensively? I think the reality is with, you know, the 2026 cash flow that we're generating from the business, on a consolidated basis, it's gonna have meaningful leverage reduction when you include asset sales. I don't feel that we, you know, in the short term, we might be somewhat constrained, but when you go beyond that, we have the ability to do a lot of things at the business. We should be fairly comfortable on our debt to EBITDA ratios, you know, over that period. We have supportive shareholders. We're starting to get some reasonable support in equity markets, through our share price. You know, very short-term constrained, but I don't see us being constrained for very long. We do recognize we need to pay some debt down. We've always said that, from the first day I've been here, and we continue to make good progress on that front. Understood. If I could finish off with just a broad discussion about your hedging policy. Obviously, you're a 50% hedge from April to December, and, Ian, I think you mentioned that you're progressively placing more hedges. Just could you give us an idea as to how you guys tend to approach this? Heading into any particular year, what tends to be the level of hedges that you place? Do you see this particular year as being special that this doesn't change how you approach it, or do you think that you would like to be more hedged heading into and particularly moving forward? Yeah. Over the last couple of years, since new management took over, we've been very careful around ensuring hedging is done in an appropriate manner and is done with the appropriate focus on reducing risk. We felt that given our desire to ensure that we meet our leverage reduction goals, that given the I guess market circumstances that had presented themselves, we thought it was important to put some underpinning under the cash flows. There was extensive discussion with the board of directors around this, which is ongoing. We felt it was appropriate to get this level in. Obviously, we're 50%. You know, right now, markets are fairly favorable. We are looking at trying to go a little bit longer and just continue to put some underpinnings under the cash flow, but the curve is somewhat backwardated. Like, we will continue to look opportunistically around this, but I think once we get our leverage in line, this is a fairly special type of program that we've done just to make sure we hit our debt reduction goals here in the short term. Great. That makes sense. Thanks for that. Thanks so much for the answers. Congrats, Ian, on your permanent appointment at the Midstream level. Thanks, Maurice. Again, if you would like to ask a question, please press star one on your telephone. There are no further questions at this time. Go ahead. Thanks everyone for joining the call today. The team is available to address any outstanding items with their contact information at the bottom of each company's press release. Thank you. Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.

Speaker 4: Afternoon, ladies and gentlemen, and welcome to the Tidewater fourth quarter 2025 results call. At this time, all lines are in a 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 March 26, 2026. I would now like to turn the conference over to Ian Quartly. Please go ahead. Afternoon, ladies and gentlemen, and welcome to the Tidewater fourth quarter 2025 results call. afternoon ladies and gentlemen and welcome to the tidewater fourth quarter 2025 results call At this time, all lines are in a listen-only mode. at this time all lines are in a listen-only mode Following the presentation, we will conduct a question and answer session. 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. if at any time during this call you require immediate assistance please press star zero for the operator This call is being recorded on March 26, 2026. this call is being recorded on march 26 2026 I would now like to turn the conference over to Ian Quartly. i would now like to turn the conference over to ian quartly Please go ahead. please go ahead

Speaker 1: Thanks, Vincent, and welcome everyone to the joint conference call for the fourth quarter 2025 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 operations during the quarter. I will follow with the financial results and 2026 guidance, and then we'll open the line for your questions. This morning, both Tidewater Midstream and Tidewater Renewables reported results for the fourth quarter ended December 31, 2025. A copy of the news releases, financial statements, MD&As and annual information forms may be accessed on SEDAR+ or on your respective company's websites. 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. Thanks, Vincent, and welcome everyone to the joint conference call for the fourth quarter 2025 results of both Tidewater Midstream and Infrastructure Limited and Tidewater Renewables Limited. thanks vincent and welcome everyone to the joint conference call for the fourth quarter 2025 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 operations during the quarter. joining me today is our ceo jeremy baines who will provide an update on operations during the quarter I will follow with the financial results and 2026 guidance, and then we'll open the line for your questions. i will follow with the financial results and 2026 guidance and then we'll open the line for your questions This morning, both Tidewater Midstream and Tidewater Renewables reported results for the fourth quarter ended December 31, 2025. this morning both tidewater midstream and tidewater renewables reported results for the fourth quarter ended december 31 2025 A copy of the news releases, financial statements, MD&As and annual information forms may be accessed on SEDAR+ or on your respective company's websites. a copy of the news releases financial statements md&as and annual information forms may be accessed on sedar+ or on your respective company's websites 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. 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 sessions. 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 these forward-looking statements, non-GAAP measures and risk factors, please see the company's financial reports, which are available on the company's websites and on SEDAR+. Now I'll turn the call over to Jeremy. The recorded call will be available through sessions. the recorded call will be available through sessions Some of the comments made today may be forward-looking in nature and are based on Tidewater's current expectations, judgments and projections. 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. 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. further some of the information provided refers to non-gaap measures To know more about these forward-looking statements, non-GAAP measures and risk factors, please see the company's financial reports, which are available on the company's websites and on SEDAR+. to know more about these forward-looking statements non-gaap measures and risk factors please see the company's financial reports which are available on the company's websites and on sedar+ Now I'll turn the call over to Jeremy. now i'll turn the call over to jeremy

Speaker 2: Thank you, Ian, and thanks to everyone for joining us today. I'll begin with Tidewater Renewables, followed by Tidewater Midstream, covering regulatory and strategic developments, operational performance, and commercial updates. Starting with regulatory developments on September 5th, 2025, the Government of Canada announced a CAD 370 million Biofuels Production Incentive program to address the economic challenges caused by U.S. subsidies and policies. The details of the incentive program were communicated to eligible program recipients, which includes Tidewater Renewables in December of 2025. The program will provide non-repayable cash support from January 2026 to December 2027 at an incentive rate of CAD 0.16 per liter for the first 170 million liters produced annually. Thank you, Ian, and thanks to everyone for joining us today. thank you ian and thanks to everyone for joining us today I'll begin with Tidewater Renewables, followed by Tidewater Midstream, covering regulatory and strategic developments, operational performance, and commercial updates. i'll begin with tidewater renewables followed by tidewater midstream covering regulatory and strategic developments operational performance and commercial updates Starting with regulatory developments on September 5th, 2025, the Government of Canada announced a CAD 370 million Biofuels Production Incentive program to address the economic challenges caused by U.S. subsidies and policies. starting with regulatory developments on september 5th 2025 the government of canada announced a cad 370 million biofuels production incentive program to address the economic challenges caused by u.s subsidies and policies The details of the incentive program were communicated to eligible program recipients, which includes Tidewater Renewables in December of 2025. the details of the incentive program were communicated to eligible program recipients which includes tidewater renewables in december of 2025 The program will provide non-repayable cash support from January 2026 to December 2027 at an incentive rate of CAD 0.16 per liter for the first 170 million liters produced annually. the program will provide non-repayable cash support from january 2026 to december 2027 at an incentive rate of cad 0.16 per liter for the first 170 million liters produced annually With the HDRD Complex expected to produce between 150 million and 170 million liters annually during this period, Tidewater Renewables is ideally positioned to receive between CAD 24 million and CAD 27 million in both 2026 and 2027. In addition, the Government of Canada announced its intention to make targeted amendments to the Clean Fuel Regulations to further support Canada's biofuel sector. There are two amendments currently being evaluated. The first is a minimum renewable domestic content approach, similar to the policy implemented by the Government of British Columbia in early 2025. The second is a credit multiplier approach, whereby domestically produced low carbon fuels would receive a higher ratio of CFR emission credits than imported fuels. Tidewater supports both proposed amendments and is well-positioned to benefit from either or a combination of both if implemented. With the HDRD Complex expected to produce between 150 million and 170 million liters annually during this period, Tidewater Renewables is ideally positioned to receive between CAD 24 million and CAD 27 million in both 2026 and 2027. with the hdrd complex expected to produce between 150 million and 170 million liters annually during this period tidewater renewables is ideally positioned to receive between cad 24 million and cad 27 million in both 2026 and 2027 In addition, the Government of Canada announced its intention to make targeted amendments to the Clean Fuel Regulations to further support Canada's biofuel sector. in addition the government of canada announced its intention to make targeted amendments to the clean fuel regulations to further support canada's biofuel sector There are two amendments currently being evaluated. there are two amendments currently being evaluated The first is a minimum renewable domestic content approach, similar to the policy implemented by the Government of British Columbia in early 2025. the first is a minimum renewable domestic content approach similar to the policy implemented by the government of british columbia in early 2025 The second is a credit multiplier approach, whereby domestically produced low carbon fuels would receive a higher ratio of CFR emission credits than imported fuels. the second is a credit multiplier approach whereby domestically produced low carbon fuels would receive a higher ratio of cfr emission credits than imported fuels Tidewater supports both proposed amendments and is well-positioned to benefit from either or a combination of both if implemented. tidewater supports both proposed amendments and is well-positioned to benefit from either or a combination of both if implemented Moving to operations at the HDRD Complex. The planned turnaround and subsequent equipment failure reduced throughput to 48% of design capacity for the fourth quarter of 2025. As previously communicated, the equipment repair was successfully completed on December 12, 2025, and utilization has been near nameplate capacity during the first few months of 2026. Now let's move over to Tidewater Midstream, starting with regulatory and strategic developments. During the fourth quarter, Tidewater Midstream executed two initiative agreements with the Government of British Columbia to provide BC LCFS credits to support the production of low carbon renewable diesel and renewable gasoline from the hydrotreater and FCC coprocessing units at the Prince George Refinery. Moving to operations at the HDRD Complex. moving to operations at the hdrd complex The planned turnaround and subsequent equipment failure reduced throughput to 48% of design capacity for the fourth quarter of 2025. the planned turnaround and subsequent equipment failure reduced throughput to 48% of design capacity for the fourth quarter of 2025 As previously communicated, the equipment repair was successfully completed on December 12, 2025, and utilization has been near nameplate capacity during the first few months of 2026. as previously communicated the equipment repair was successfully completed on december 12 2025 and utilization has been near nameplate capacity during the first few months of 2026 Now let's move over to Tidewater Midstream, starting with regulatory and strategic developments. now let's move over to tidewater midstream starting with regulatory and strategic developments During the fourth quarter, Tidewater Midstream executed two initiative agreements with the Government of British Columbia to provide BC LCFS credits to support the production of low carbon renewable diesel and renewable gasoline from the hydrotreater and FCC coprocessing units at the Prince George Refinery. during the fourth quarter tidewater midstream executed two initiative agreements with the government of british columbia to provide bc lcfs credits to support the production of low carbon renewable diesel and renewable gasoline from the hydrotreater and fcc coprocessing units at the prince george refinery The BC LCFS credits awarded under the initiative agreements are expected to fund a significant portion of the cost of the renewable feedstocks required to operate the coprocessing units for the next two years at rates up to 300 barrels per day for each of the units. In addition, the sale of coprocessed low carbon transportation fuels into the British Columbia market will generate CFR emission credits and additional BC LCFS credits for Tidewater Midstream. On the strategic front, Tidewater took over full operational control of the acquired Western Pipeline system during the fourth quarter of 2025. Our team has done an excellent job integrating the pipeline into our existing operational systems and processes, and we expect to fully realize the operational synergies and CAD 10 million-CAD 15 million of annual cost savings we announced previously. The BC LCFS credits awarded under the initiative agreements are expected to fund a significant portion of the cost of the renewable feedstocks required to operate the coprocessing units for the next two years at rates up to 300 barrels per day for each of the units. the bc lcfs credits awarded under the initiative agreements are expected to fund a significant portion of the cost of the renewable feedstocks required to operate the coprocessing units for the next two years at rates up to 300 barrels per day for each of the units In addition, the sale of coprocessed low carbon transportation fuels into the British Columbia market will generate CFR emission credits and additional BC LCFS credits for Tidewater Midstream. in addition the sale of coprocessed low carbon transportation fuels into the british columbia market will generate cfr emission credits and additional bc lcfs credits for tidewater midstream On the strategic front, Tidewater took over full operational control of the acquired Western Pipeline system during the fourth quarter of 2025. on the strategic front tidewater took over full operational control of the acquired western pipeline system during the fourth quarter of 2025 Our team has done an excellent job integrating the pipeline into our existing operational systems and processes, and we expect to fully realize the operational synergies and CAD 10 million-CAD 15 million of annual cost savings we announced previously. our team has done an excellent job integrating the pipeline into our existing operational systems and processes and we expect to fully realize the operational synergies and cad 10 million-cad 15 million of annual cost savings we announced previously In January of 2026, Tidewater announced that it had entered into long-term agreements for gas handling and NGL supply at the Brazeau River complex. Under these agreements, Tidewater will process up to 75 million cubic feet per day of natural gas at the BRC from dedicated producer facilities and will receive the marketing rights to the ethane, propane and butane for initial terms of approximately five years. These are important agreements for Tidewater as they provide significant gas volume to the BRC facility from dedicated producer facilities on a long-term basis. We also continue to advance our non-core asset sales program. On October 21, the Sylvan Lake gas processing facility was sold for cash proceeds of CAD 5.5 million. In December 2025, we received the final CAD 1.5 million of cash proceeds from the sale of the BRC roads. In January of 2026, Tidewater announced that it had entered into long-term agreements for gas handling and NGL supply at the Brazeau River complex. in january of 2026 tidewater announced that it had entered into long-term agreements for gas handling and ngl supply at the brazeau river complex Under these agreements, Tidewater will process up to 75 million cubic feet per day of natural gas at the BRC from dedicated producer facilities and will receive the marketing rights to the ethane, propane and butane for initial terms of approximately five years. under these agreements tidewater will process up to 75 million cubic feet per day of natural gas at the brc from dedicated producer facilities and will receive the marketing rights to the ethane propane and butane for initial terms of approximately five years These are important agreements for Tidewater as they provide significant gas volume to the BRC facility from dedicated producer facilities on a long-term basis. these are important agreements for tidewater as they provide significant gas volume to the brc facility from dedicated producer facilities on a long-term basis We also continue to advance our non-core asset sales program. we also continue to advance our non-core asset sales program On October 21, the Sylvan Lake gas processing facility was sold for cash proceeds of CAD 5.5 million. on october 21 the sylvan lake gas processing facility was sold for cash proceeds of cad 5.5 million In December 2025, we received the final CAD 1.5 million of cash proceeds from the sale of the BRC roads. in december 2025 we received the final cad 1.5 million of cash proceeds from the sale of the brc roads In February 2026, Tidewater Renewables received CAD 2.1 million of final proceeds from the sale of the Renewable Natural Gas Partnership. We continue to work on further divestiture opportunities, including growing market interest in repurposing energy sites for data center developments. We look forward to updating the market as discussions progress. Next, let's turn to operations at the Prince George Refinery. Throughput at the PGR averaged 10,809 barrels per day in the fourth quarter of 2025. A 5% increase from the third quarter of 2025. The semi-annual heat exchanger cleaning was completed in October, and throughput levels averaged approximately 11,900 barrels per day during November and December 2025. In February 2026, Tidewater Renewables received CAD 2.1 million of final proceeds from the sale of the Renewable Natural Gas Partnership. in february 2026 tidewater renewables received cad 2.1 million of final proceeds from the sale of the renewable natural gas partnership We continue to work on further divestiture opportunities, including growing market interest in repurposing energy sites for data center developments. we continue to work on further divestiture opportunities including growing market interest in repurposing energy sites for data center developments We look forward to updating the market as discussions progress. we look forward to updating the market as discussions progress Next, let's turn to operations at the Prince George Refinery. next let's turn to operations at the prince george refinery Throughput at the PGR averaged 10,809 barrels per day in the fourth quarter of 2025. throughput at the pgr averaged 10,809 barrels per day in the fourth quarter of 2025 A 5% increase from the third quarter of 2025. a 5% increase from the third quarter of 2025 The semi-annual heat exchanger cleaning was completed in October, and throughput levels averaged approximately 11,900 barrels per day during November and December 2025. the semi-annual heat exchanger cleaning was completed in october and throughput levels averaged approximately 11,900 barrels per day during november and december 2025 Refined product margins improved during the fourth quarter as the Prince George crack spread averaged $94 per barrel, compared to $90 per barrel during the third quarter of 2025. During the start of 2026, the market conditions for refined products have significantly improved. The Prince George crack spread averaged $94 per barrel in January and $98 per barrel in February. During March, the crack spread widened further as a result of the ongoing conflict in Iran and has averaged $113 per barrel in March month to date. As Ian will expand on later, throughout March, we have layered on 2-1-1 crack spread hedges for approximately 50% of forecasted production from April to December 2026 in order to capture the current market strength in the crack spreads. Now we'll move to our broader midstream operations. Refined product margins improved during the fourth quarter as the Prince George crack spread averaged $94 per barrel, compared to $90 per barrel during the third quarter of 2025. refined product margins improved during the fourth quarter as the prince george crack spread averaged $94 per barrel compared to $90 per barrel during the third quarter of 2025 During the start of 2026, the market conditions for refined products have significantly improved. during the start of 2026 the market conditions for refined products have significantly improved The Prince George crack spread averaged $94 per barrel in January and $98 per barrel in February. the prince george crack spread averaged $94 per barrel in january and $98 per barrel in february During March, the crack spread widened further as a result of the ongoing conflict in Iran and has averaged $113 per barrel in March month to date. during march the crack spread widened further as a result of the ongoing conflict in iran and has averaged $113 per barrel in march month to date As Ian will expand on later, throughout March, we have layered on 2-1-1 crack spread hedges for approximately 50% of forecasted production from April to December 2026 in order to capture the current market strength in the crack spreads. as ian will expand on later throughout march we have layered on 2-1-1 crack spread hedges for approximately 50% of forecasted production from april to december 2026 in order to capture the current market strength in the crack spreads Now we'll move to our broader midstream operations. now we'll move to our broader midstream operations At the BRC gas processing facility, throughput averaged 102 million cubic feet per day in the fourth quarter, compared to 124 million cubic feet per day in the third quarter of 2025. The decrease was largely due to lower straddle volumes. The Ram River Gas Plant remains temporarily curtailed while sulfur handling operations continue to operate. The current market prices for both natural gas and 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. At the BRC gas processing facility, throughput averaged 102 million cubic feet per day in the fourth quarter, compared to 124 million cubic feet per day in the third quarter of 2025. at the brc gas processing facility throughput averaged 102 million cubic feet per day in the fourth quarter compared to 124 million cubic feet per day in the third quarter of 2025 The decrease was largely due to lower straddle volumes. the decrease was largely due to lower straddle volumes The Ram River Gas Plant remains temporarily curtailed while sulfur handling operations continue to operate. the ram river gas plant remains temporarily curtailed while sulfur handling operations continue to operate The current market prices for both natural gas and 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. the current market prices for both natural gas and 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 Looking ahead, we remain focused on driving operational excellence, enhancing margins, and executing strategic initiatives, including maximizing efficiency at the PGR and HDRD Complex, strengthening commercial platforms and offtakes, advancing our SAF project while managing capital prudently, progressing non-core asset sales to unlock liquidity, and we will continue to advocate for a fair regulatory environment. We believe these building blocks position us for both revenue growth and margin expansion during 2026. With that, I'll now turn to Ian for the financial review. Looking ahead, we remain focused on driving operational excellence, enhancing margins, and executing strategic initiatives, including maximizing efficiency at the PGR and HDRD Complex, strengthening commercial platforms and offtakes, advancing our SAF project while managing capital prudently, progressing non-core asset sales to unlock liquidity, and we will continue to advocate for a fair regulatory environment. looking ahead we remain focused on driving operational excellence enhancing margins and executing strategic initiatives including maximizing efficiency at the pgr and hdrd complex strengthening commercial platforms and offtakes advancing our saf project while managing capital prudently progressing non-core asset sales to unlock liquidity and we will continue to advocate for a fair regulatory environment We believe these building blocks position us for both revenue growth and margin expansion during 2026. we believe these building blocks position us for both revenue growth and margin expansion during 2026 With that, I'll now turn to Ian for the financial review. with that i'll now turn to ian for the financial review

Speaker 1: Thanks, Jeremy. During the fourth quarter of 2025, Tidewater Renewables reported a net loss of CAD 13.8 million compared to a net loss of CAD 3.4 million for the fourth quarter of 2024. Adjusted EBITDA was CAD -3.8 million for the fourth quarter of 2025 compared to CAD 6.1 million in the fourth quarter of 2024. Both the net income and adjusted EBITDA were impacted by the extended turnarounds and subsequent equipment repair, which resulted in lower sales volumes during the fourth quarter. In addition, there were lower contributions from the equity investments. Turning to Tidewater Midstream, the fourth quarter consolidated net loss attributable to shareholders was CAD 30 million compared to a consolidated net loss attributable to shareholders of CAD 3.3 million for the fourth quarter of 2024. Thanks, Jeremy. thanks jeremy During the fourth quarter of 2025, Tidewater Renewables reported a net loss of CAD 13.8 million compared to a net loss of CAD 3.4 million for the fourth quarter of 2024. during the fourth quarter of 2025 tidewater renewables reported a net loss of cad 13.8 million compared to a net loss of cad 3.4 million for the fourth quarter of 2024 Adjusted EBITDA was CAD -3.8 million for the fourth quarter of 2025 compared to CAD 6.1 million in the fourth quarter of 2024. adjusted ebitda was cad -3.8 million for the fourth quarter of 2025 compared to cad 6.1 million in the fourth quarter of 2024 Both the net income and adjusted EBITDA were impacted by the extended turnarounds and subsequent equipment repair, which resulted in lower sales volumes during the fourth quarter. both the net income and adjusted ebitda were impacted by the extended turnarounds and subsequent equipment repair which resulted in lower sales volumes during the fourth quarter In addition, there were lower contributions from the equity investments. in addition there were lower contributions from the equity investments Turning to Tidewater Midstream, the fourth quarter consolidated net loss attributable to shareholders was CAD 30 million compared to a consolidated net loss attributable to shareholders of CAD 3.3 million for the fourth quarter of 2024. turning to tidewater midstream the fourth quarter consolidated net loss attributable to shareholders was cad 30 million compared to a consolidated net loss attributable to shareholders of cad 3.3 million for the fourth quarter of 2024 The larger net loss in the fourth quarter of 2025 was primarily due to the Tidewater Renewables extended turnaround previously mentioned and the absence of an impairment reversal in the current quarter. This was offset in part by favorable changes in the fair value of derivative contracts and lower interest rates. Consolidated adjusted EBITDA was CAD 3 million for the fourth quarter of 2025 compared to CAD 20 million in the same period of 2024. The decrease was primarily due to lower gross margins in the current period and lower contributions from the equity investor, partially offset by lower losses on realized derivative contracts. As part of the year-end release, we have announced 2026 financial guidance. Tidewater's consolidated 2026 adjusted EBITDA is expected to range between CAD 150 million and CAD 170 million. The larger net loss in the fourth quarter of 2025 was primarily due to the Tidewater Renewables extended turnaround previously mentioned and the absence of an impairment reversal in the current quarter. the larger net loss in the fourth quarter of 2025 was primarily due to the tidewater renewables extended turnaround previously mentioned and the absence of an impairment reversal in the current quarter This was offset in part by favorable changes in the fair value of derivative contracts and lower interest rates. this was offset in part by favorable changes in the fair value of derivative contracts and lower interest rates Consolidated adjusted EBITDA was CAD 3 million for the fourth quarter of 2025 compared to CAD 20 million in the same period of 2024. consolidated adjusted ebitda was cad 3 million for the fourth quarter of 2025 compared to cad 20 million in the same period of 2024 The decrease was primarily due to lower gross margins in the current period and lower contributions from the equity investor, partially offset by lower losses on realized derivative contracts. the decrease was primarily due to lower gross margins in the current period and lower contributions from the equity investor partially offset by lower losses on realized derivative contracts As part of the year-end release, we have announced 2026 financial guidance. as part of the year-end release we have announced 2026 financial guidance Tidewater's consolidated 2026 adjusted EBITDA is expected to range between CAD 150 million and CAD 170 million. tidewater's consolidated 2026 adjusted ebitda is expected to range between cad 150 million and cad 170 million Consolidated capital expenditures, which includes both growth and maintenance capital, net of capitalized BC LCFS credits received under the SAF initiative agreement, is expected to range between CAD 20 million-CAD 25 million. Tidewater Renewables expects to deliver annual adjusted EBITDA of between CAD 80 million-CAD 90 million and incur capital expenditures of between CAD 2 million-CAD 3 million. HDRD Complex is expected to benefit from stronger utilization and market prices and is on track to produce between 150 and 170 million liters of renewable diesel in 2026 that is expected to qualify for the CAD 0.16 per liter Canadian Biofuels Production Incentive. Prince George Refinery is also set to benefit from strong utilization as well as operational efficiencies and cost reductions from the acquired Western Pipeline. Consolidated capital expenditures, which includes both growth and maintenance capital, net of capitalized BC LCFS credits received under the SAF initiative agreement, is expected to range between CAD 20 million-CAD 25 million. consolidated capital expenditures which includes both growth and maintenance capital net of capitalized bc lcfs credits received under the saf initiative agreement is expected to range between cad 20 million-cad 25 million Tidewater Renewables expects to deliver annual adjusted EBITDA of between CAD 80 million-CAD 90 million and incur capital expenditures of between CAD 2 million-CAD 3 million. tidewater renewables expects to deliver annual adjusted ebitda of between cad 80 million-cad 90 million and incur capital expenditures of between cad 2 million-cad 3 million HDRD Complex is expected to benefit from stronger utilization and market prices and is on track to produce between 150 and 170 million liters of renewable diesel in 2026 that is expected to qualify for the CAD 0.16 per liter Canadian Biofuels Production Incentive. hdrd complex is expected to benefit from stronger utilization and market prices and is on track to produce between 150 and 170 million liters of renewable diesel in 2026 that is expected to qualify for the cad 0.16 per liter canadian biofuels production incentive Prince George Refinery is also set to benefit from strong utilization as well as operational efficiencies and cost reductions from the acquired Western Pipeline. prince george refinery is also set to benefit from strong utilization as well as operational efficiencies and cost reductions from the acquired western pipeline The restart of the crude processing units are also expected to provide a favorable benefit via reduced compliance costs, while the previously announced initiative agreements will assist Tidewater Midstream in funding feedstock procurement. The BRC is expected to benefit from the commencement of recently executed agreements from gas handling and NGL supply and fractionation. The 2026 financial guidance does not include any EBITDA that would be generated from the resumption of gas processing at Ram. The favorable movements in North American crack spreads, refined product prices, and emission credit prices to start 2026 are expected to provide an additional windfall to the financial results of the Prince George Refinery and the HDRD Complex. In an effort to protect cash flow and manage commodity price risk, Tidewater started to hedge in early March and continued to layer on additional positions throughout the month. The restart of the crude processing units are also expected to provide a favorable benefit via reduced compliance costs, while the previously announced initiative agreements will assist Tidewater Midstream in funding feedstock procurement. the restart of the crude processing units are also expected to provide a favorable benefit via reduced compliance costs while the previously announced initiative agreements will assist tidewater midstream in funding feedstock procurement The BRC is expected to benefit from the commencement of recently executed agreements from gas handling and NGL supply and fractionation. the brc is expected to benefit from the commencement of recently executed agreements from gas handling and ngl supply and fractionation The 2026 financial guidance does not include any EBITDA that would be generated from the resumption of gas processing at Ram. the 2026 financial guidance does not include any ebitda that would be generated from the resumption of gas processing at ram The favorable movements in North American crack spreads, refined product prices, and emission credit prices to start 2026 are expected to provide an additional windfall to the financial results of the Prince George Refinery and the HDRD Complex. the favorable movements in north american crack spreads refined product prices and emission credit prices to start 2026 are expected to provide an additional windfall to the financial results of the prince george refinery and the hdrd complex In an effort to protect cash flow and manage commodity price risk, Tidewater started to hedge in early March and continued to layer on additional positions throughout the month. in an effort to protect cash flow and manage commodity price risk tidewater started to hedge in early march and continued to layer on additional positions throughout the month Currently, Tidewater Midstream is hedged on approximately 50% of its crack spread, its exposure for the balance of 2026, and Tidewater Renewables is hedged on approximately 50% of the HDRD Complex's revenue and feedstock purchases for the balance of 2026. The CAD 150 million-CAD 170 million of consolidated adjusted EBITDA guidance range is approximately a 400% increase from 2025's actual consolidated adjusted EBITDA. With a disciplined capital program of between CAD 20 million and CAD 25 million for 2026, the resulting cash flow is expected to be primarily directed towards debt reduction. Finally, on March 23rd, 2026, we took another significant step towards strengthening Tidewater Midstream's financial position by amending the senior credit facility. Currently, Tidewater Midstream is hedged on approximately 50% of its crack spread, its exposure for the balance of 2026, and Tidewater Renewables is hedged on approximately 50% of the HDRD Complex's revenue and feedstock purchases for the balance of 2026. currently tidewater midstream is hedged on approximately 50% of its crack spread its exposure for the balance of 2026 and tidewater renewables is hedged on approximately 50% of the hdrd complex's revenue and feedstock purchases for the balance of 2026 The CAD 150 million-CAD 170 million of consolidated adjusted EBITDA guidance range is approximately a 400% increase from 2025's actual consolidated adjusted EBITDA. the cad 150 million-cad 170 million of consolidated adjusted ebitda guidance range is approximately a 400% increase from 2025's actual consolidated adjusted ebitda With a disciplined capital program of between CAD 20 million and CAD 25 million for 2026, the resulting cash flow is expected to be primarily directed towards debt reduction. with a disciplined capital program of between cad 20 million and cad 25 million for 2026 the resulting cash flow is expected to be primarily directed towards debt reduction Finally, on March 23rd, 2026, we took another significant step towards strengthening Tidewater Midstream's financial position by amending the senior credit facility. finally on march 23rd 2026 we took another significant step towards strengthening tidewater midstream's financial position by amending the senior credit facility The maturity dates of the CAD 50 million operating facility and the CAD 125 million syndicated facility were both extended from September 2026 to August 2027. The Q1 2026 financial covenant ratios were amended to provide an extra turn on the senior debt to adjusted EBITDA ratio and an extra half turn on both the debt to adjusted EBITDA ratio and the adjusted EBITDA to interest coverage ratio. The financial covenants for the first, second and third quarters of 2026 will be calculated on an annualized basis instead of a trailing twelve-month basis to reflect the significant step change in the financial results of Tidewater Midstream in 2026. That concludes our prepared remarks. Vincent, please open the line for questions. The maturity dates of the CAD 50 million operating facility and the CAD 125 million syndicated facility were both extended from September 2026 to August 2027. the maturity dates of the cad 50 million operating facility and the cad 125 million syndicated facility were both extended from september 2026 to august 2027 The Q1 2026 financial covenant ratios were amended to provide an extra turn on the senior debt to adjusted EBITDA ratio and an extra half turn on both the debt to adjusted EBITDA ratio and the adjusted EBITDA to interest coverage ratio. the q1 2026 financial covenant ratios were amended to provide an extra turn on the senior debt to adjusted ebitda ratio and an extra half turn on both the debt to adjusted ebitda ratio and the adjusted ebitda to interest coverage ratio The financial covenants for the first, second and third quarters of 2026 will be calculated on an annualized basis instead of a trailing twelve-month basis to reflect the significant step change in the financial results of Tidewater Midstream in 2026. the financial covenants for the first second and third quarters of 2026 will be calculated on an annualized basis instead of a trailing twelve-month basis to reflect the significant step change in the financial results of tidewater midstream in 2026 That concludes our prepared remarks. that concludes our prepared remarks Vincent, please open the line for questions. vincent please open the line for questions

Speaker 4: Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star followed by the one on your touchtone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star followed by the two. Your first question comes from Rob Hope with Scotiabank. Please go ahead. Thank you. thank you Ladies and gentlemen, we will now begin the question and answer session. ladies and gentlemen we will now begin the question and answer session Should you have a question, please press star followed by the one on your touchtone phone. should you have a question please press star followed by the one on your touchtone phone You will hear a prompt that your hand has been raised. you will hear a prompt that your hand has been raised Should you wish to decline from the polling process, please press star followed by the two. should you wish to decline from the polling process please press star followed by the two Your first question comes from Rob Hope with Scotiabank. your first question comes from rob hope with scotiabank Please go ahead. please go ahead

Speaker 5: Hello, everyone. Thanks for taking my question. Maybe the first one is on the non-core sale. Can you give us an update on kind of what stage those discussions are at, and whether or not you have a longer-term target of how much incremental asset sales you'd like to get done? Hello, everyone. hello everyone Thanks for taking my question. thanks for taking my question Maybe the first one is on the non-core sale. maybe the first one is on the non-core sale Can you give us an update on kind of what stage those discussions are at, and whether or not you have a longer-term target of how much incremental asset sales you'd like to get done? can you give us an update on kind of what stage those discussions are at and whether or not you have a longer-term target of how much incremental asset sales you'd like to get done

Speaker 2: Yeah. Thanks, Rob, for the question. So last year, we gave some guidance of what we were targeting for our non-core asset sales. We continue to be on track to hit that number. Timing is taking a little bit longer than we would like, but these are complex bespoke type discussions around the asset sales. We are in deep discussions around a very significant asset and have three non-binding LOIs, and we're working to turn it into one binding LOI. You know, we expect we'll be able to announce something this year, hopefully in the first half of the year on that. Yeah. yeah Thanks, Rob, for the question. thanks rob for the question So last year, we gave some guidance of what we were targeting for our non-core asset sales. so last year we gave some guidance of what we were targeting for our non-core asset sales We continue to be on track to hit that number. we continue to be on track to hit that number Timing is taking a little bit longer than we would like, but these are complex bespoke type discussions around the asset sales. timing is taking a little bit longer than we would like but these are complex bespoke type discussions around the asset sales We are in deep discussions around a very significant asset and have three non-binding LOIs, and we're working to turn it into one binding LOI. we are in deep discussions around a very significant asset and have three non-binding lois and we're working to turn it into one binding loi You know, we expect we'll be able to announce something this year, hopefully in the first half of the year on that. you know we expect we'll be able to announce something this year hopefully in the first half of the year on that We have another asset that we are in a similar point of negotiations with a third party that we're working to move to binding, and hopefully we'll be able to put something out early in second quarter on that one as well. We continue to be on track. Timing, just due to complexity of some of these assets, is taking us a little longer, but we expect to be able to deliver on the number we put out last year. We have another asset that we are in a similar point of negotiations with a third party that we're working to move to binding, and hopefully we'll be able to put something out early in second quarter on that one as well. we have another asset that we are in a similar point of negotiations with a third party that we're working to move to binding and hopefully we'll be able to put something out early in second quarter on that one as well We continue to be on track. we continue to be on track Timing, just due to complexity of some of these assets, is taking us a little longer, but we expect to be able to deliver on the number we put out last year. timing just due to complexity of some of these assets is taking us a little longer but we expect to be able to deliver on the number we put out last year

Speaker 5: Okay, and appreciate the EBITDA and CapEx guidance. You know, as we look through our model and try to get to kind of a net debt number at the end of the year, assuming no asset sales, you know, are there any large changes in non-recurring expenses or working capital changes that we should watch out for? Really, we're just trying to get a better sense of where you think you'll be exiting the year on a net debt to EBITDA basis. Okay, and appreciate the EBITDA and CapEx guidance. okay, and appreciate the ebitda and capex guidance You know, as we look through our model and try to get to kind of a net debt number at the end of the year, assuming no asset sales, you know, are there any large changes in non-recurring expenses or working capital changes that we should watch out for? you know as we look through our model and try to get to kind of a net debt number at the end of the year assuming no asset sales you know are there any large changes in non-recurring expenses or working capital changes that we should watch out for Really, we're just trying to get a better sense of where you think you'll be exiting the year on a net debt to EBITDA basis. really we're just trying to get a better sense of where you think you'll be exiting the year on a net debt to ebitda basis

Speaker 1: Yeah, Rob, there's nothing unusual from a non-recurring or working capital perspective. Yeah, Rob, there's nothing unusual from a non-recurring or working capital perspective. yeah rob there's nothing unusual from a non-recurring or working capital perspective

Speaker 5: Okay. All right. Appreciate that. Thank you. Okay. okay All right. all right Appreciate that. appreciate that Thank you. thank you

Speaker 4: Your next question comes from the line of Maurice Choy with RBC Capital Markets. Please go ahead. Your next question comes from the line of Maurice Choy with RBC Capital Markets. your next question comes from the line of maurice choy with rbc capital markets Please go ahead. please go ahead

Speaker 3: Thanks, and good morning, everyone. Maybe I'll just pick up on the last question just now then. If you could give us an idea as to what your net debt to EBITDA numbers were for both companies analyzed basis as of the end of the year? Take one step further, could you just paint a picture for us what this trajectory looks like, you know, whether that be through the rest of this year or even into next year? Obviously a lot of cash flows are being directed towards repaying debt. Just, if you could help us with that'd be great. Thanks, and good morning, everyone. thanks and good morning everyone Maybe I'll just pick up on the last question just now then. maybe i'll just pick up on the last question just now then If you could give us an idea as to what your net debt to EBITDA numbers were for both companies analyzed basis as of the end of the year? if you could give us an idea as to what your net debt to ebitda numbers were for both companies analyzed basis as of the end of the year Take one step further, could you just paint a picture for us what this trajectory looks like, you know, whether that be through the rest of this year or even into next year? take one step further could you just paint a picture for us what this trajectory looks like you know whether that be through the rest of this year or even into next year Obviously a lot of cash flows are being directed towards repaying debt. obviously a lot of cash flows are being directed towards repaying debt Just, if you could help us with that'd be great. just if you could help us with that'd be great

Speaker 2: Let me start, Ian. I'll jump in. You know, we've put out a number for guidance that we feel is extremely achievable. We have locked in the revenue sides at both companies, half of them to ensure we have some support on those numbers. We have not included in those numbers, like Ian said, a restart of Ram, which could be extremely helpful to that. You know, our methodology on our guidances, we have gone and used a mid-cycle crack spread which is below where the current strip is today. We think it's very achievable and maybe probably cautious guidance. It's been very unpredictable over the last four weeks of where the forward market is for some of our products. Let me start, Ian. let me start ian I'll jump in. i'll jump in You know, we've put out a number for guidance that we feel is extremely achievable. you know we've put out a number for guidance that we feel is extremely achievable We have locked in the revenue sides at both companies, half of them to ensure we have some support on those numbers. we have locked in the revenue sides at both companies half of them to ensure we have some support on those numbers We have not included in those numbers, like Ian said, a restart of Ram, which could be extremely helpful to that. we have not included in those numbers like ian said a restart of ram which could be extremely helpful to that You know, our methodology on our guidances, we have gone and used a mid-cycle crack spread which is below where the current strip is today. you know our methodology on our guidances we have gone and used a mid-cycle crack spread which is below where the current strip is today We think it's very achievable and maybe probably cautious guidance. we think it's very achievable and maybe probably cautious guidance It's been very unpredictable over the last four weeks of where the forward market is for some of our products. it's been very unpredictable over the last four weeks of where the forward market is for some of our products If you take our guidance and you take off our capital and you take off our interest expense, all of that will go to debt. It's a fairly meaningful number. Then on top of that, we do expect to progress our non-core asset sales, and there will be additional debt reduction related to that. If you take all of that together, you can you know come up with your estimate of what that net debt to EBITDA looks like. We feel very grounded in our guidance with we do see upside to it on that front. If you take our guidance and you take off our capital and you take off our interest expense, all of that will go to debt. if you take our guidance and you take off our capital and you take off our interest expense all of that will go to debt It's a fairly meaningful number. it's a fairly meaningful number Then on top of that, we do expect to progress our non-core asset sales, and there will be additional debt reduction related to that. then on top of that we do expect to progress our non-core asset sales and there will be additional debt reduction related to that If you take all of that together, you can you know come up with your estimate of what that net debt to EBITDA looks like. if you take all of that together you can you know come up with your estimate of what that net debt to ebitda looks like We feel very grounded in our guidance with we do see upside to it on that front. we feel very grounded in our guidance with we do see upside to it on that front

Speaker 3: Thanks. Maybe as a quick follow-up and, you know, philosophically, when you think about your capital program opportunities to improve your portfolio, do you see balance sheet as being a limiter for you? Presumably yes, for 2026, but, you know, at what point do you think of that as being, quote-unquote, unleashed and you're able to grow extensively? Thanks. thanks Maybe as a quick follow-up and, you know, philosophically, when you think about your capital program opportunities to improve your portfolio, do you see balance sheet as being a limiter for you? maybe as a quick follow-up and you know philosophically when you think about your capital program opportunities to improve your portfolio do you see balance sheet as being a limiter for you Presumably yes, for 2026, but, you know, at what point do you think of that as being, quote-unquote, unleashed and you're able to grow extensively? presumably yes for 2026 but you know at what point do you think of that as being quote-unquote unleashed and you're able to grow extensively

Speaker 2: I think the reality is with, you know, the 2026 cash flow that we're generating from the business, on a consolidated basis, it's gonna have meaningful leverage reduction when you include asset sales. I don't feel that we, you know, in the short term, we might be somewhat constrained, but when you go beyond that, we have the ability to do a lot of things at the business. We should be fairly comfortable on our debt to EBITDA ratios, you know, over that period. We have supportive shareholders. We're starting to get some reasonable support in equity markets, through our share price. You know, very short-term constrained, but I don't see us being constrained for very long. I think the reality is with, you know, the 2026 cash flow that we're generating from the business, on a consolidated basis, it's gonna have meaningful leverage reduction when you include asset sales. i think the reality is with you know the 2026 cash flow that we're generating from the business on a consolidated basis it's gonna have meaningful leverage reduction when you include asset sales I don't feel that we, you know, in the short term, we might be somewhat constrained, but when you go beyond that, we have the ability to do a lot of things at the business. i don't feel that we you know in the short term we might be somewhat constrained but when you go beyond that we have the ability to do a lot of things at the business We should be fairly comfortable on our debt to EBITDA ratios, you know, over that period. we should be fairly comfortable on our debt to ebitda ratios you know over that period We have supportive shareholders. we have supportive shareholders We're starting to get some reasonable support in equity markets, through our share price. we're starting to get some reasonable support in equity markets through our share price You know, very short-term constrained, but I don't see us being constrained for very long. you know very short-term constrained but i don't see us being constrained for very long We do recognize we need to pay some debt down. We've always said that, from the first day I've been here, and we continue to make good progress on that front. We do recognize we need to pay some debt down. we do recognize we need to pay some debt down We've always said that, from the first day I've been here, and we continue to make good progress on that front. we've always said that from the first day i've been here and we continue to make good progress on that front

Speaker 3: Understood. If I could finish off with just a broad discussion about your hedging policy. Obviously, you're a 50% hedge from April to December, and, Ian, I think you mentioned that you're progressively placing more hedges. Just could you give us an idea as to how you guys tend to approach this? Heading into any particular year, what tends to be the level of hedges that you place? Do you see this particular year as being special that this doesn't change how you approach it, or do you think that you would like to be more hedged heading into and particularly moving forward? Understood. understood If I could finish off with just a broad discussion about your hedging policy. if i could finish off with just a broad discussion about your hedging policy Obviously, you're a 50% hedge from April to December, and, Ian, I think you mentioned that you're progressively placing more hedges. obviously you're a 50% hedge from april to december and ian i think you mentioned that you're progressively placing more hedges Just could you give us an idea as to how you guys tend to approach this? just could you give us an idea as to how you guys tend to approach this Heading into any particular year, what tends to be the level of hedges that you place? heading into any particular year what tends to be the level of hedges that you place Do you see this particular year as being special that this doesn't change how you approach it, or do you think that you would like to be more hedged heading into and particularly moving forward? do you see this particular year as being special that this doesn't change how you approach it or do you think that you would like to be more hedged heading into and particularly moving forward

Speaker 2: Yeah. Over the last couple of years, since new management took over, we've been very careful around ensuring hedging is done in an appropriate manner and is done with the appropriate focus on reducing risk. We felt that given our desire to ensure that we meet our leverage reduction goals, that given the I guess market circumstances that had presented themselves, we thought it was important to put some underpinning under the cash flows. There was extensive discussion with the board of directors around this, which is ongoing. We felt it was appropriate to get this level in. Obviously, we're 50%. You know, right now, markets are fairly favorable. Yeah. yeah Over the last couple of years, since new management took over, we've been very careful around ensuring hedging is done in an appropriate manner and is done with the appropriate focus on reducing risk. over the last couple of years since new management took over we've been very careful around ensuring hedging is done in an appropriate manner and is done with the appropriate focus on reducing risk We felt that given our desire to ensure that we meet our leverage reduction goals, that given the I guess market circumstances that had presented themselves, we thought it was important to put some underpinning under the cash flows. we felt that given our desire to ensure that we meet our leverage reduction goals that given the i guess market circumstances that had presented themselves we thought it was important to put some underpinning under the cash flows There was extensive discussion with the board of directors around this, which is ongoing. there was extensive discussion with the board of directors around this which is ongoing We felt it was appropriate to get this level in. we felt it was appropriate to get this level in Obviously, we're 50%. obviously we're 50% You know, right now, markets are fairly favorable. you know right now markets are fairly favorable We are looking at trying to go a little bit longer and just continue to put some underpinnings under the cash flow, but the curve is somewhat backwardated. Like, we will continue to look opportunistically around this, but I think once we get our leverage in line, this is a fairly special type of program that we've done just to make sure we hit our debt reduction goals here in the short term. We are looking at trying to go a little bit longer and just continue to put some underpinnings under the cash flow, but the curve is somewhat backwardated. we are looking at trying to go a little bit longer and just continue to put some underpinnings under the cash flow but the curve is somewhat backwardated Like, we will continue to look opportunistically around this, but I think once we get our leverage in line, this is a fairly special type of program that we've done just to make sure we hit our debt reduction goals here in the short term. like we will continue to look opportunistically around this but i think once we get our leverage in line this is a fairly special type of program that we've done just to make sure we hit our debt reduction goals here in the short term

Speaker 3: Great. That makes sense. Thanks for that. Thanks so much for the answers. Congrats, Ian, on your permanent appointment at the Midstream level. Great. great That makes sense. that makes sense Thanks for that. thanks for that Thanks so much for the answers. thanks so much for the answers Congrats, Ian, on your permanent appointment at the Midstream level. congrats ian on your permanent appointment at the midstream level

Speaker 1: Thanks, Maurice. Thanks, Maurice. thanks maurice

Speaker 4: Again, if you would like to ask a question, please press star one on your telephone. There are no further questions at this time. Go ahead. Again, if you would like to ask a question, please press star one on your telephone. again if you would like to ask a question please press star one on your telephone There are no further questions at this time. there are no further questions at this time Go ahead. go ahead

Speaker 1: Thanks everyone for joining the call today. The team is available to address any outstanding items with their contact information at the bottom of each company's press release. Thank you. Thanks everyone for joining the call today. thanks everyone for joining the call today The team is available to address any outstanding items with their contact information at the bottom of each company's press release. the team is available to address any outstanding items with their contact information at the bottom of each company's press release Thank you. thank you

Speaker 4: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect. Ladies and gentlemen, this concludes today's conference call. ladies and gentlemen this concludes today's conference call Thank you for your participation. thank you for your participation You may now disconnect. you may now disconnect