(TSX: TWM) CALGARY, AB, May 9, 2024 /CNW/ - Tidewater Midstream and Infrastructure Ltd. ("Tidewater" or the "Corporation") (TSX:TWM) has filed its interim consolidated financial statements and Management Discussion and Analysis ("MD&A") for the three month period ended March 31, 2024. FIRST-QUARTER 2024 HIGHLIGHTS Net Income attributable to shareholders increased by $13.5 million to a net loss of $11.3 million in the first quarter 2024, from a net loss of $24.8 million in the same period of 2023. The improvement was primarily driven by favorable changes in the fair value of derivatives, the gain on sale of the AltaGas Ltd. ("AltaGas") common shares, and higher operating income, offset in part by the sale of the Pipestone facilities. As disclosed at year end 2023, on January 9, 2024, Tidewater monetized its AltaGas common shares for net proceeds of $341.6 million. These proceeds were used to further reduce credit facility debt and working capital. Consolidated adjusted EBITDA(1) was $39.8 million for the first quarter of 2024, compared to $48.9 million during the first quarter of 2023. The decrease is primarily driven by the sale of the Pipestone and Dimsdale facilities to AltaGas. On March 31, 2024, the Tidewater Midstream Senior Credit Facility was elevated by approximately $26 million due to timing of accounts receivable settlements. As of May 3, 2024, the balance drawn on the facility was approximately $85 million. G&A cost cutting initiatives are expected to result in savings of $5 million for 2024, and $7 million on a run-rate basis. Subsequent to the quarter, in early May, Tidewater successfully completed a significant three week turnaround at the Brazeau River Complex and Fractionation Facility (the "BRC") safely, on time and on budget. As part of the turnaround, the Corporation identified various operational savings of approximately $6 million annually, and capital savings of approximately $5 million. During the first quarter of 2024, the Renewable Diesel & Renewable Hydrogen Complex (the "HDRD Complex") averaged daily throughput of approximately 2,120 bbl/d, representing a 71% utilization rate. Operating results for April 2024 show continued improvement, with a utilization rate of approximately 95%. The HDRD Complex is expected to exceed a full-year utilization rate of 85%, representing an average daily throughput of 2,550 bbl/d (previously 2,400-2,600 bbl/d). Tidewater Renewables Ltd. ("Tidewater Renewables") made significant progress on the front-end engineering design ("FEED") of the proposed 6,500 bbl/d sustainable aviation fuel ("SAF") project. This included integrating lessons learned from the HDRD Complex into the SAF project's design basis. During the first quarter of 2024, the Corporation received emissions credits for achieving its first milestone under an executed incentive agreement. These credits were sold under a previously announced purchase agreement. The Corporation continues to progress commercial arrangements and is evaluating potential offtake agreements for the SAF project. The SAF project remains subject to a final investment decision, which is expected in 2025. "Our downstream and midstream assets performed well during the first quarter. The ramp up at the HDRD Complex and strong throughput performance at the Prince George Refinery ("PGR"), resulted in improved operating results in the quarter. We've started executing on our operation and administrative efficiency initiatives which we expect will save $13 million on an annual run-rate basis." stated Jeremy Baines, CEO. (1) Non-GAAP financial measure. See the "Non-GAAP Measures" section of this news release. CONSOLIDATED AND DECONSOLIDATED FINANCIAL HIGHLIGHTS Three months ended March 31 Tidewater Deconsolidated (2) Tidewater Consolidated (in millions of Canadian dollars except per share information) 2024 2023 2024 2023 Net loss attributable to shareholders $ (20.0) $ (12.9) $ (11.3) $ (24.8) Net loss attributable to shareholders per     share - basic $ (0.05) $ (0.03) $ (0.03) $ (0.06) Adjusted EBITDA (1) $ 14.5 $ 36.3 $ 39.8 $ 48.9 Distributable cash flow attributable to shareholders (1) $ (3.0) $ (2.1) $ 5.8 $ 1.5 Distributable cash flow per share – basic (1) $ (0.01) $ - $ 0.01 $ - Net debt (3) $ 194.2 $ 563.8 $ 501.1 $ 842.4 Total capital expenditures $ 2.3 $ 21.9 $ 8.1 $ 106.1 (1)  Non-GAAP financial measures. See the "Non-GAAP Measures" section of this news release. (2)  Deconsolidated results exclude the results of Tidewater Renewables. See the "Non-GAAP Measures" section of this news release for information on deconsolidated measures. (3)  Capital management measure. See the "Non-GAAP Measures" section of this news release. STRATEGIC UPDATE Tidewater's strategy is supported by three key operational initiatives: maintaining safe and reliable operations, generating return on assets through maximizing facility throughput and optimizing our existing asset base, and achieving synergies through corporate integration. The following progress was made on these initiatives in 2024 year to date: Maintain safe and reliable operations No lost time incidents during Q1 2024. BRC turnaround was completed on time and on budget. During Q1 2024, the HDRD Complex ramped up to design capacity, as the team worked through start-up challenges. We closed out Q1 2024 operating at design capacity and we expect to be operating at design capacity for the remainder of 2024.   Return on assets andoptimizing existing assetbase New downstream customer serviced using the infrastructure of the HDRD Complex and the PGR beginning in Q1 2024. Initiated FEED study for a SAF project which will leverage existing knowledge gained from the HDRD Complex build. The FEED study was funded through the sale of capital emission credits. Continued the engineering and site evaluation for the SAF project. Began executing on operating and maintenance optimization initiatives and realized $5 million of maintenance capital savings and $6 million of run rate operational cost savings.   Corporate integration and synergies Implemented efficiency initiatives are expected to result in profitability improvements of $5 million through a reduction in G&A expenditures for 2024 and $7 million on a run rate basis. Continuing to initiate additional profitability enhancement initiatives.     Three months ended March 31,  (in millions of Canadian dollars) 2024 2023 Growth capital (1) $ 5.9 $ 92.1 Maintenance capital (1) 2.2 14.0 Total capital expenditures $ 8.1 $ 106.1 Capital emissions credits awarded (2) $ (20.7) $ (2.0) (1) Supplementary financial measures. See the "Non-GAAP Measures" section of this news release. (2) During the three months ended March 31, 2024, $2.3 million of capital emission credits were monetized. DOWNSTREAM PGR During the first quarter of 2024, the PGR had strong operational performance with throughput of 12,399 bbl/day, 6% higher than first quarter of 2023, and relatively consistent with fourth quarter of 2023.  PGR was impacted by lower crack spreads of approximately $88/bbl, compared to approximately $90/bbl in the comparative period, representing a 2% decrease from the same quarter in the prior year. There were zero recordable incidents during the first quarter. HDRD Complex During the first quarter of 2024, the HDRD Complex averaged daily throughput of approximately 2,120 bbl/d, representing a 71% utilization rate.  Initial operating results for April 2024 show continued improvement, with a utilization rate of approximately 95%.  We expect the HDRD Complex to exceed a full-year utilization rate of 85%, representing an average daily throughput of 2,550 bbl/d (previously 2,400-2,600 bbl/d).  PGR Historical Performance: Q2 2022 Q3 2022 Q42022 Q1 2023 Q22023 Q3 2023 Q42023 Q1 2024 Daily throughput (bbl) 11,810 11,860 11,715 11,700 4,363 12,756 12,242 12,399 Refinery Yield (1)   Diesel 44 % 45 % 47 % 45 % 46 % 44 % 48 % 46 %   Gasoline 42 % 41 % 42 % 42 % 41 % 42 % 40 % 41 %   Other (2) 14 % 14 % 11 % 13 % 13 % 14 % 12 % 13 % (1)