drilling and well installation, maintenance, inspection and repair. And we're very excited to be able to participate in it. tidewater seeking alpha - fintechconvention.com Except for the one-time dividend at the beginning of 2023, the dividend payout has grown by about 30% since the cut due to the COVID crisis. Instead, I will use the Q4 2022 figures instead. The price was $40.3M. Global Partners LP (NYSE:GLP) is a master limited partnership ("MLP") that participated in the oil & refined products storage, transport, and retailing business. This point I want to make here is that the stock price is justified solely by the earnings power of the assets - indeed, if the business were liquidated and everything on the books were sold at its carrying value, there would be nothing left for the common equity holders. I am not receiving compensation for it (other than from Seeking Alpha). I have bolded out the intangible assets, so that we can see how much tangible equity exists in the business. With Tidewater management projecting dayrates to advance even faster next year, SEACOR should achieve annual EBITDA well in excess of $100 million in 2024. I wrote this article myself, and it expresses my own opinions. 11.1 million Tidewater common shares (or rights to receive Tidewater shares) will be issued to holders of GulfMark common stock and noteholder warrants ($0.01 per share exercise price) 1 . Is this happening to you frequently? Tidewater Midstream: Maturity Wall Cleared, Focus On Next Catalysts For FY 2023, the company guided for $900M in revenues, 39% higher than FY 2022 revenues of $647M, and vessel operating margin of ~50%, up 11.9 percentage points from the prior-year vessel operating margin of 38.1%. Global Partners remains a highly leveraged enterprise. Both the dividend and the senior notes have adequate earnings covering them. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Please. Tidewater: Incredibly Cheap Compare To Recent Transactions - Seeking Alpha I am not receiving compensation for it (other than from Seeking Alpha). On the conference call, Tidewater management hinted at potential further M&A activity. Let's face it, for those of us who don't like volatility in our portfolios, boring is better. As we look forward to the remainder of 2022 and 2023, we remain confident that the fundamentals for the offshore vessel market will remain robust. It paid out $24,337,000 in dividends, which means a payout ratio of 42.6%. I wrote this article myself, and it expresses my own opinions. Global Partners LP has seen positive growth through acquisitions and sale-leaseback transactions, expanding its portfolio of fueling stations and convenience stores. In Q3, results continued to benefit from the recent acquisition of Swire Pacific Offshore, which contributed approximately 30% of the combined company's total revenues. As shares have retreated by almost 30% from multi-year highs reached earlier this year, I am raising my rating from "Hold" to "Buy" with a price target of $12 based on a 2024 EBITDA/EV multiple of 6x. The Philosophy Behind S-curves Triple Constraints in Project Controls The Best Ways to Minimize Cost Overruns in Construction Projects I have covered SEACOR Marine Holdings Inc. (NYSE:SMHI) previously, so investors should view this as an update to my earlier articles on the company. March 28, 2023 - GLP and ExxonMobil signed an agreement to acquire 64 convenience and fueling sites from the Landmark Group in the Houston area. If you have an ad-blocker enabled you may be blocked from proceeding. Analysts Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. ; The company's total fleet of 228 vessels is among the youngest in the world, and features a modern fleet of 199 PSVs and AHTS with an average age of 11.3 years, 65% of which are high-specification vessels. With a substantial increase in profitability and cash flow generation anticipated over the coming quarters, investors should consider initiating or adding to existing positions in SEACOR Marine Holdings as the ongoing recovery in offshore drilling activity continues to be supported by persistent tailwinds from recent geopolitical events. Entering text into the input field will update the search result below, another set of mediocre quarterly results with revenues and profitability being impacted by seasonality and the recent loss of a large contract with Exxon Mobil (. If you have an ad-blocker enabled you may be blocked from proceeding. No other finance apps are more loved, Custom scripts and ideas shared by our users. Tidewater TDW+5.1%in Tuesday's trading, soaring by as much as 14% to a record high, despite reporting lower than expected Q4 GAAP earnings as it issued guidance for improved revenues and operating margins for 2023. Company Presentation. The warrants were issued to Banyan in connection with Tidewater's (TDW) acquisition of Swire Pacific Offshore (now known as Tidewater Offshore) from Banyan. If you have an ad-blocker enabled you may be blocked from proceeding. SEACOR Marine Holdings or "SEACOR" is a leading provider of marine and support transportation services to the offshore energy industry. While SEACOR remained optimistic for 2023, management didn't provide forward guidance nor did it host a conference call, thus complicating modeling somewhat. Note: I have covered Bristow Group (NYSE:VTOL) previously, so investors should view this as an update to my earlier articles on the company. Bristow continues to expect full-year revenues of between $1.20 billion and $1.31 billion and Adjusted EBITDA to range from $150 million to $170 million: Results are expected to improve meaningfully over the course of the year as new contracts are scheduled to commence with the company's EBITDA run rate at year-end projected to be significantly higher than in the first half: On the conference call, management expressed satisfaction with the company's quarterly results which came in somewhat better than internal expectations and remained constructive for the remainder of the year but was reluctant to commit to additional share buybacks which isn't exactly a surprise given the massive capex requirements under the new UKSAR2G contract. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. ; Net proceeds will be used to repurchase from Banyan Overseas warrants exercisable for Tidewater (TDW) shares equal to the number of shares sold in the offering. These acquisitions were mostly regional chains of gas stations & convenience stores. Tidewater (NYSE:TDW) stock fell 4.6% postmarket on Tuesday after the firm announced a registered underwritten public offering of up to ~4M shares. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Read more from Seeking Alpha. I have no business relationship with any company whose stock is mentioned in this article. Bristow, a leading helicopter services provider, reported another set of mediocre quarterly results, with revenues and profitability being impacted by seasonality and the recent loss of a large contract in Guyana. Is this happening to you frequently? Tidewater Midstream And Infrastructure Ltd CEO Joel MacLeod - Macroaxis Chart Pine Script Stock Screener Forex Screener Crypto Pairs Screener Crypto Coins Screener Stock . Show summary % complete in Microsoft Project when all subtasks are milestones and some of these milestones are completed June 28, 2022 - GLP sold its Revere terminal on Boston Harbor for $150M, and leased back key infrastructure. February 1, 2022 - GLP acquired Miller Oil Co., Inc. in a cash transaction of $60.1M. I will use the EBITDA coverage test to assess the safety of the senior notes. In addition, the company recently managed to win another SAR contract which should provide stable revenue and decent margin contributions for many years. In its preliminary annual 2023 Russell index reconstitution, about 161 companies will be added and 313 deleted from the Russell Microcap Index. The consensus EPS Estimate is $0.23 (vs. Seeking Alpha - Anuron Mitra 18h Read more on seekingalpha.com Wall Street Financial Markets Investing Finance NYSE This acquisition cost $154.7M. No other finance apps are more loved, Custom scripts and ideas shared by our users, Tidewater (NYSE:TDW) stock fell 4.6% postmarket on Tuesday after the firm announced a. Vessel level cash margin improved to nearly 41%, up 240 basis points. That said, the company recently succeeded in addressing near-term debt maturities while at the same time bolstering liquidity and simplifying SEACOR's corporate structure. Indeed, with the share price having almost doubled from recent lows, Tidewater's stock could prove to be a valuable currency in potential M&A activity going forward. An important aspect to note here is the balance between acquisitions and sales: they are more balanced than before, meaning that there has been on the whole somewhat of a recycling of capital from old assets into new, bolstered by sale-leasebacks. I am not receiving compensation for it (other than from Seeking Alpha). Analysts Disclosure: I/we have a beneficial long position in the shares of TDW either through stock ownership, options, or other derivatives. I have no business relationship with any company whose stock is mentioned in this article. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. I wrote this article myself, and it expresses my own opinions. Net proceeds will be used to repurchase from Banyan Overseas warrants exercisable for Tidewater (TDW) shares equal to the number of shares sold in the offering. I am mostly a trader engaging in both long and short bets intraday and occasionally over the short- to medium term. Even though gas stations and convenience stores are not the flashiest business to be in (let's face it, they're downright boring), they are businesses that, in Warren Buffett's words, "any idiot could run." Unrestricted . and support transportation services to the offshore energy industry. In this conversation. I am mostly a trader engaging in both long and short bets intraday and occasionally over the short- to medium term. Situation Overview Tidewater Midstream (TSX:TWM:CA) reported solid Q4 and year-end 2022 numbers. I have no business relationship with any company whose stock is mentioned in this article. Bristow continues to expect total capital expenditures of $159 million for the UKSAR2G contract with the vast majority expected to be incurred in 2023 and 2024. This feels about right to me, given that management likes to increase the payout on the common shares gradually. Please. In its adjusted free cash flow calculation, the company also added back an aggregate $2.1 million in merger and integration costs and other special items: Bristow continues to expect total capital expenditures of $159 million for the UKSAR2G contract with the vast majority expected to be incurred in 2023 and 2024. Since I could not find EBITDA reported anywhere, I will have to estimate it myself. Is this happening to you frequently? Please disable your ad-blocker and refresh. Tidewater TDW announced a definitive agreement to purchase 37 of Solstad Offshore platform supply vessels for $577M which will strengthen its presence as a high-specification PSV operator. The combined improvement in utilization and average day rate provided an approximately 11.5% improvement in revenue per average active vessel. Please. Tidewater: Strong Financials And Increasing Day Rates - Flipboard Seeking Alpha on Twitter: "My Top 10 Dividend Growth Stocks To Invest Seeking Alpha - Double S Capital 2h Situation Update To my surprise, Tidewater Midstream (TSX:TWM:CA) (OTCPK:TWMIF) needed to tap the equity market to take out the 2022 $125 million Read more on seekingalpha.com Net proceeds will be used to repurchase from Banyan Overseas warrants exercisable for Tidewater (TDW) shares equal to the number of shares sold in the offering. Global Partners: The 8.7% Yielding Stock, 7.0% Senior - Seeking Alpha A debt refinancing at improved terms could provide a near-term catalyst for the stock. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. In addition, the company is actively looking to refinance existing debt facilities at improved terms, but management recently decided not to proceed with a contemplated senior secured bond offering "as the indicative terms and conditions were not sufficiently attractive for the company". After the 90%+ rally from recent lows, shares might be ripe for a breather in the short-term, but with the offshore drilling industry likely in the early innings of a multi-year growth cycle, investors should consider adding on any major pullbacks. Tidewater (NYSE:TDW) is a leading provider of marine and transportation services in the offshore energy industry. In the past 3 years since my last article, GLP has continued its strategy of growth by acquisition, acquiring a string of small regional convenience & fuel chains, as well as some oil & oil products transport infrastructure. Tidewater's shares ascended to new 52-week highs as market participants cheered decent third quarter results and strong industry prospects going into 2023. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. As the business has consolidated itself after the COVID-19 fiasco and the unwinding of the oil by rail business, it has steadily grown its dividend payout. Discussing the most recent SAR contract award in Ireland which should provide stable revenue and decent margin contributions for many years. I will avoid using the Q1 2023 figures to compute the payout ratio because of the unusual dividend. PDF Tidewater / GulfMark Offshore Combination: Creates Global Offshore Leader Last week, leading offshore support services provider Tidewater reported much better-than-expected third quarter results and reiterated its constructive industry outlook (emphasis added by author): Our third quarter performance reinforces our previous commentary that the offshore vessel industry had reached an inflection point. The price was $40.3M . SEACOR's closest publicly-traded peer is Tidewater (TDW), a company I have been very positive on for quite some time now, based on the ongoing recovery in offshore drilling markets and persistent tailwinds from recent geopolitical events. Entering text into the input field will update the search result below. At this pricing, there is little difference between the senior notes and common shares in terms of risk-adjusted returns, so which one an investor should buy depends on their risk appetite. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Tidewater: Decent Quarter, Strong Prospects Going Into 2023 - Seeking Alpha Tidewater shares issued (or to be issued upon warrant exercises) to holders of GulfMark common stock and Active utilization increased from 82.5% in the second quarter of 2022 to 83.7% and our average day rate, despite a material strengthening of the U.S. dollar, improved by nearly $1,100 per day. Last month, SEACOR reported decent first quarter results with revenues, average day rates, direct vessel profit, and EBITDA all reaching new multi-year highs: The sequential improvement is particularly noteworthy given the fact that Q1 is a seasonally weak quarter for the industry. Hopefully, management will comment on this issue on the Q2 conference call. Considering only maintenance expenditures, free cash flow was positive $3.7 million. Tidewater rages to record high on upbeat guidance for revenues, margins Feb 28, 202308:55 PST TDW +4.96% Tidewater TDW +5.1% in Tuesday's trading, soaring by as much as 14% to a record high, despite reporting lower than expected Q4 GAAP earnings as it issued guidance for improved revenues and operating margins for 2023. Backlog for Q4 was stated at $171 million. What is Negative Float and How to Deal With It in Primavera P6? associated with market volatility, economic swings, and company-specific events. Tidewater Q1 2023 Earnings Preview | Flipboard Tidewater Inc. (NYSE:TDW) has been covered by me previously, so investors should view this article as an update to my earlier publications on the company. Active utilization increased from 82.5% in the second quarter of 2022 to 83.7% and our average day rate, despite a material strengthening of the U.S. dollar, improved by nearly $1,100 per day sequentially, or approximately 8.5%. Based on Tidewater's stated expectations for improvements in dayrates and vessel margin this year, I am looking for SEACOR to generate between $60 million and $70 million in EBITDA and cash flow from operations to turn substantially positive in the second half. Once we subtract out the intangible assets from the Partners' Equity, there is precious little tangible equity left. So looking forward to being able to execute as we go through the remainder of 2022 and into '23. Unrestricted cash of $198 million and available liquidity of $274.9 million increased substantially from the end of 2022 due to the recent equipment financing agreements with National Westminster Bank Plc. Dayrates have increased over the last year "driven by strengthening offshore market fundamentals, tightening equipment supply, and increasing offshore activity," Evercore ISI analyst James West said, according to Bloomberg. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. In addition, I am having a close eye on the still nascent fuel cell industry.I am located in Germany and have worked quite some time as an auditor for PricewaterhouseCoopers before becoming a daytrader almost 20 years ago. Tidewater reported much better-than-expected third quarter results and provided an upbeat industry outlook. I would estimate Global Partners' distributable cash flow as Net Income + Depreciation & Amortization. The interest coverage ratio would be $78,147,000 / $22,068,000 = 3.54. Home Tidewater Q1 2023 Earnings Preview Tidewater Q1 2023 Earnings Preview Tidewater (NYSE:TDW) is scheduled to announce Q1 earnings results on Tuesday, May 9th, before market open. It owns oil & refined products transport terminals, as well as runs a portfolio of over 1,700 fueling station & convenience store sites, largely in the North-eastern United States. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. View, measure Tidewater Midstream's market volatility, predict the probability of Tidewater Midstream's future price movements. Tidewater slides on pricing ~$120.63M stock offering Even at multi-year highs, Tidewater shares are still trading just slightly above 3x my estimated EV/EBITDA run rate at the end of 2023. Please note that in contrast to most peers, SEACOR does not capitalize on maintenance and drydocking costs, which impacts margins and profitability relative to peers. Seeking Alpha on Twitter: "$TDW - Tidewater Inc. (TDW) Q1 2023 Earnings Call Transcript. In its preliminary annual 2023 Russell index reconstitution, about 161 companies will be added and 313 deleted from the Russell Microcap Index. I have no business relationship with any company whose stock is mentioned in this article. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Last month, leading offshore helicopter services provider Bristow Group or "Bristow" reported another set of mediocre quarterly results with revenues and profitability being impacted by seasonality and the recent loss of a large contract with Exxon Mobil (XOM) in Guyana: While the company generated $6.6 million in cash from operations and another $23.4 million from helicopter sales during the quarter, capital expenditures of $31.5 million mostly related to preparations for the recently awarded large-scale search-and-rescue ("SAR") contract in the United Kingdom also known as "UKSAR2G" resulted in negative free cash flow of $1.5 million for the quarter as disclosed in the company's quarterly report on form 10-Q. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. While Bristow's first quarter report was nothing to write home about, the scheduled commencement of new contracts should boost results over the course of the year. Tidewater Midstream and Tidewater Renewables appoints - TradingView According to the company's most recent presentation, the appraisal value of the fleet amounts to $1.76 billion, slightly above Tidewater's enterprise value of $1.64 billion. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. While Tidewater cleaned up its balance sheet in bankruptcy six years ago, SEACOR has managed to avoid Chapter 11 at the expense of ongoing debt and liquidity issues very similar to offshore drilling industry leader Transocean (RIG). Nov 9, 2022 08:20. The acquisition includes 21 company convenience stores, 2 owned or leased fuel sites in Virginia, and 34 fuel supply only sites. Top website in the world when it comes to all things investing, Rating from 1M+ reviews. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance, Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk However, with the offshore drilling industry likely in the early innings of a multi-year growth cycle, investors should consider adding Tidewater on any major pullbacks. Let's compare its balance sheet today with its balance sheet from 3 years ago to see how much has changed. These businesses are in the storage and transport of refined oil products. In Q4 2022, it had Net Income of $30,485,000, and Depreciation & Amortization of $26,701,000, for a total estimated distributable cash flow of $57,186,000. Average day rate and gross margins increased to new multi-year highs. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. Swissotel the Bosphorus, Istanbul, Turkey 8-9 Sep. 2021. I wrote this article myself, and it expresses my own opinions. My historical focus has been mostly on tech stocks but over the past couple of years I have also started broad coverage of the offshore drilling and supply industry as well as the shipping industry in general (tankers, containers, drybulk). Since Global Partners is dependent on real estate, its Net Income does not reflect its distributable cash flow. Should Tidewater indeed achieve the $500 million annual EBITDA run rate outlined above, I would expect the company to initiate a quarterly dividend of approximately $0.75 per share in early 2024. Please. Seacor Marine Holdings: Business Has Reached An - Seeking Alpha Entering text into the input field will update the search result below. When running Tidewater Midstream's price analysis, check to, Reduce portfolio risk simply by holding instruments which are not perfectly correlated, Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency, Search for actively traded equities including funds and ETFs from over 30 global markets, Screen CEOs from public companies around the world, Determine portfolio positions ratings based on digital equity recommendations. That said, it will likely take just one or two quarters of substantially improved profitability for SEACOR to attract sufficient investor interest to refinance at decent terms. The stock and dividend payout are both certainly up: Global Partners is very attractive as an income investment. Given that the common shares have no tangible equity backing them up, their 8.7% yield is roughly fair, as compared with the 6.875-7.00% yield on the senior notes, implying a 1.8-2.0% equity risk premium as compared to the bond. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body. The boards of Tidewater Midstream and Infrastructure (OTCPK:TWMIF) and Tidewater Renewables (OTCPK:TDWRF) has appointed Robert Colcleugh as interim CEO of both companies, effective November 28, 2022. . This means that it is unlikely to need to make large new issues of brand-new senior notes or preferred stock in order to cover the acquisition costs. As shares have retreated by almost 30% from multi-year highs reached earlier this year, I am raising my rating from "Hold" to "Buy" with a price target of $12 based on a 2024 EBITDA/EV multipleof 6x. expenditures, free cash flow was positive $3.7 million. After some meaningful investments in working capital in H1, Tidewater managed to generate $21.9 million in free cash flow in Q3. This is expected to be completed in second quarter 2023. With average day rates expected to increase further and fleet utilization likely to exceed 80% sooner rather than later, the company should start to generate meaningful free cash flow in the very near future. With Q2 unlikely to show major improvements and cash flows pressured by ongoing preparations for the commencement of the UKSAR2G contract next year, I am reiterating my "Hold" rating on the shares.
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