Axiom Oil and Gas Inc. filed a $110 million lawsuit against Tidewater Midstream and Infrastructure Ltd. on November 20 2025, alleging that Tidewater unilaterally terminated the 2020 gas‑handling agreement in 2024 and changed the H₂S specification from 300,000 ppm to 9 ppm, thereby preventing Axiom from processing sour natural gas at the Brazeau property.
The lawsuit claims that Axiom prepaid $4.5 million for sour‑plant turn‑around costs under the agreement and that the termination and specification change caused a loss of reserves. Tidewater has responded that the lawsuit is without merit and that an earlier injunction application by Axiom was dismissed.
Alberta courts capped the damages at $200,000, a fraction of the $110 million sought, limiting Tidewater’s potential exposure to the dispute.
The Brazeau property, which Tidewater acquired from Axiom in 2020, is now part of Axiom’s sales process, with a bid deadline of November 27 2025. Axiom is selling several non‑core assets as it navigates the legal dispute.
Tidewater’s Q3 2025 results show a net loss of $34.1 million, compared with a $7.3 million loss in Q3 2024, and adjusted EBITDA fell to $16.2 million from $29.2 million, reflecting declining revenues and high leverage. Net debt stood at $587.8 million as of September 30 2025.
CEO Jeremy Baines said the company remains focused on generating cash flow and optimizing its core asset base while defending against the lawsuit. Market reaction has been downward pressure on Tidewater due to the legal dispute and the company’s weak financial performance.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.