Business Wire | Page 1617

: Business Wire; Posted On Aug 07, 2020

San Mateo Black River Oil Pipeline, LLC Announces Binding Open Season

DALLAS--(BUSINESS WIRE)--San Mateo Black River Oil Pipeline, LLC (San Mateo), a wholly-owned subsidiary of San Mateo Midstream, LLC, announces its binding open season to gauge shipper interest in committed crude oil interstate transportation service on the Stebbins Expansion Crude Oil Pipeline Project (Expansion Project), a proposed expansion of the existing San Mateo pipeline system in Eddy County, New Mexico. The Expansion Project is a proposed expansion of the San Mateo system further north in Eddy County consisting of approximately 19 miles of various diameter crude pipelines from certain points of origin in Eddy County to the existing San Mateo interconnect with Plains Pipeline, L.P. in Eddy County. Commencement of commercial operations of the Expansion Project is targeted for the third quarter of 2020.

This open season provides an opportunity for shippers to support the Expansion Project by making acreage dedications and volume commitments for priority (firm) service, or acreage dedications for non-firm committed service, thereby becoming committed shippers for the term of their transportation services agreements. The final volume of capacity for both committed and uncommitted service on the Expansion Project will be determined by San Mateo in part based on the results of this open season.

The binding open season begins August 7, 2020 at 8:00 a.m. Central Time, and ends on September 6, 2020 at 5:00 p.m. Central Time. For more information about the Expansion Project and the open season documents, please visit www.sanmateomidstream.com or contact San Mateo’s Vice President of Business Development, Corey Lothamer at This email address is being protected from spambots. You need JavaScript enabled to view it..

About San Mateo Midstream, LLC

San Mateo Midstream, LLC is a strategic joint venture formed in February 2017 by a subsidiary of Matador Resources Company (NYSE: MTDR) and a subsidiary of Five Point Energy LLC. San Mateo provides an all-inclusive approach to midstream services for the three main product streams produced by oil and natural gas activities, including salt water gathering and disposal services, natural gas gathering, compression, treating and processing services, and oil gathering, transportation and blending services. San Mateo owns and operates oil, natural gas and water gathering and transportation systems in Eddy County, New Mexico and Loving County, Texas, the Black River Processing Plant in Eddy County, New Mexico with a designed inlet capacity of 260 million cubic feet of natural gas per day and eight commercial salt water disposal wells in Eddy County, New Mexico and Loving County, Texas. San Mateo serves as one of the primary midstream solutions for multiple customers across the northern Delaware Basin, including its anchor customer, Matador Resources Company.

For more information, visit San Mateo Midstream, LLC at www.sanmateomidstream.com.

Contacts

Corey Lothamer
Vice President of Business Development
San Mateo Midstream
(972) 587-4635
This email address is being protected from spambots. You need JavaScript enabled to view it.

: Business Wire; Posted On Aug 07, 2020

Whiting USA Trust II Announces Trust Quarterly Results

HOUSTON--(BUSINESS WIRE)--Whiting USA Trust II (the “Trust”) (OTC:WHZT) announced today that it determined there will be no distribution made to unitholders in the third quarter of 2020. This is due to the net profits interest generating a net loss of $0.9 million during the second quarterly payment period of 2020 primarily due to the dramatic decline in oil prices in April 2020 which prices have remained suppressed into the third quarter. Lower commodity prices during the quarterly payment period caused operating and development costs to exceed the proceeds from production.

Sales volumes, net profits and selected performance metrics for the quarterly payment period (mainly affected by April 2020 through June 2020 oil prices and March 2020 through May 2020 gas prices) were:



Sales volumes:
Oil (Bbl)⁽¹⁾		186,554
Natural gas (Mcf)		242,503
Total (BOE)⁽²⁾		226,971
Gross proceeds:
Oil sales⁽¹⁾	$	3,850,730
Natural gas sales		223,401
Total gross proceeds⁽²⁾	$	4,074,131
Costs:
Lease operating expenses	$	6,212,319
Production taxes⁽³⁾		134,801
Development costs		308,052
Cash settlements on commodity derivatives⁽⁴⁾		-
Reserve for expenditures⁽⁵⁾		(1,625,295	)
Total costs	$	5,029,877
Net losses	$	(955,746	)
Percentage allocable to Trust’s Net Profits Interest		90	%
Total cash available for the Trust	$	(860,171	)
Provision for estimated Trust expenses		-
Montana state income taxes withheld		-
Net cash losses⁽⁶⁾	$	(860,171	)
Trust units outstanding		18,400,000
Cash loss per Trust unit⁽⁶⁾	$	(0.046748	)
Selected performance metrics:
Crude oil average realized price (per Bbl)⁽¹⁾⁽²⁾	$	20.64
Natural gas average realized price (per Mcf)⁽⁷⁾	$	0.92
Lease operating expenses (per BOE)	$	27.37
Production tax rate (percent of total gross proceeds)⁽³⁾		3.3	%

__________
(1)	Oil includes natural gas liquids.
(2)	Total production decreased 39 MBOE (or 15%) and total gross proceeds decreased $6.1 million (or 60%) during the second quarterly payment period of 2020 as compared to the first quarterly payment period of 2020. The decline in production between periods is primarily due to differences in timing associated with revenues received from non-operated properties and certain wells being shut-in for a portion of the second quarterly payment period. The decrease in total gross proceeds was mainly due to the significantly lower realized oil price which decreased 52% primarily as a result of the decline in the NYMEX price between periods.
(3)	Production taxes and production taxes as a percent of total gross proceeds decreased during the second quarterly payment period of 2020 when compared to the first quarterly payment period of 2020 primarily due to certain wells within the Garland Unit being granted a “stripper well” production tax exemption, which reduced the tax rate for production volumes from these wells and resulted in the receipt of tax refunds related to prior periods during the third quarter.
(4)	All costless collar hedge contracts terminated as of December 31, 2014, and no additional hedges are allowed to be placed on Trust assets. Consequently, there are no further cash settlements on commodity hedges for inclusion in the Trust’s computation of net profits (or net losses, as the case may be), and the Trust has increased exposure to oil and natural gas price volatility.
(5)	As provided in the terms of the Trust’s net profits interest (“NPI”), a reserve for expenditures of $1.6 million was established by Whiting Petroleum Corporation (“Whiting”) during the first quarterly payment period of 2020 in response to an expectation that future gross proceeds from the underlying properties may be insufficient to cover the future operating costs of the underlying properties. In the second quarterly payment period of 2020, the $1.6 million reserve was released and applied by Whiting to qualifying expenses incurred during the period. Accordingly, there is no remaining reserve for expenditures to offset future development, maintenance or operating expenses on the underlying properties and related activities.
(6)	When net losses are generated under the net profits interest, the Trust receives no payment from Whiting; however, neither the Trust nor the Trust unitholders are liable for any such losses. All such net losses, plus accrued interest at the prevailing money market rate, will be deducted from gross proceeds in future computation periods for purposes of determining net proceeds (or net losses as the case may be) until the negative net proceeds, including interest, have been recovered in full. The Trust will make no further distributions until that occurs.
(7)	A portion of the natural gas volumes produced by the underlying properties have a “liquids-rich” content; however, such liquids did not result in a premium to the average NYMEX natural gas price in the second quarterly payment period primarily due to a decline in liquids prices during the period.

The Trust’s NPI, which is the only asset of the Trust other than cash reserves held for future Trust expenses, represents the right to receive 90% of the net proceeds from Whiting’s interests in certain existing oil and natural gas properties located primarily in the Rocky Mountains, Permian Basin, Gulf Coast and Mid-Continent regions of the United States.

Status of the Trust
Oil and natural gas prices have declined significantly in 2020, dropping below negative $37.00 per Bbl in April 2020 and have remained depressed into August 2020. As a result of the decline in commodity prices, the net profits interest generated a net loss during the second quarterly payment period of 2020. This dramatic decline in pricing was primarily in response to Saudi Arabia’s announcement of plans to abandon previously agreed upon output restraints and the economic effects of the coronavirus (“COVID-19”) pandemic on the demand for oil and natural gas. The Trust is unable to predict future commodity prices or future performance; however, it appears likely that the depressed oil prices and economic effects of the COVID-19 pandemic will negatively impact future Trust quarterly payment periods, resulting in reduced net proceeds that the Trust is entitled to, which could materially reduce or completely eliminate the amount of cash available for distribution to Trust unitholders.

Due to these uncertainties and as provided in the terms of the NPI, a $1.6 million reserve for future development, maintenance or operating expenses was established and the quarterly payment period’s provision for estimated Trust expenses was increased during the first quarterly payment period of 2020. During the second quarterly payment period, Whiting released this $1.6 million reserve and applied it against qualifying expenses incurred during the period. Additionally, in the current commodity price environment, the Trust’s distributions have increased sensitivity to fluctuations in operating and capital expenditures and commodity price differentials. If the NPI continues to generate net losses or limited net proceeds, the net profits interest may not provide sufficient funds to the Trustee to enable it to pay all of the Trust’s administrative expenses, which expenses may be in excess of the provision for Trust expenses. As of July 31, 2020, the Trust had cash reserves of $0.7 million for the payment of its administrative expenses.

Trust Termination
The Trust will wind up its affairs and terminate shortly after the earlier of (a) the NPI termination date or (b) the sale of the net profits interest. The NPI termination date is the later to occur of (1) December 31, 2021, or (2) the time when 11.79 MMBOE (10.61 MMBOE to the 90% net profits interest) have been produced from the underlying properties and sold, which is estimated to be December 31, 2021 based on the Trust’s year-end 2019 reserve report. After the termination of the Trust, it will pay no further distributions.

The market price of the Trust units will decline to zero at the termination of the Trust, which will occur around or shortly after the termination or sale of the net profits interest. As described in the Trust’s public filings, since the assets of the Trust are depleting assets, a portion of each cash distribution paid on the Trust units, if any, should be considered by investors as a return of capital, with the remainder being considered as a return on investment.

Net Profits Interest Overview
As of June 30, 2020, on a cumulative accrual basis, 10.37 MMBOE (98%) of the Trust’s total 10.61 MMBOE have been produced and sold or divested. Based on the Trust’s reserve report for the underlying properties as of December 31, 2019, the Trust’s 10.61 MMBOE are projected to be produced prior to December 31, 2021, and assuming that occurs, the Trust would terminate shortly after December 31, 2021. The 2019 year-end reserve report reflects expected year-over-year production decline rates of approximately 8.5% for oil and 13.6% for gas between 2020 and 2021. However, the Trust’s 2019 reserve report was derived from NYMEX oil and gas prices of $55.69 per Bbl and $2.58 per MMBtu pursuant to current SEC and FASB guidelines, whereas the average NYMEX oil and gas prices for the month of July 2020 were $40.77 per Bbl and $1.69 per MMBtu, respectively.

Lower commodity prices are likely to cause a reduction in the amount of oil, natural gas and natural gas liquids that is economic to produce from the underlying properties, which may cause operators of the underlying properties to voluntarily curtail production and in turn extend the length of time required to produce the Trust’s 10.61 MMBOE. Alternatively, higher commodity prices may potentially result in an increase in the amount of oil, natural gas and natural gas liquids that is economic to produce from the underlying properties, however, higher prices could result in increases to the cost of materials, services and personnel. Furthermore, cash distributions to unitholders may decline at a faster rate than the rate of production due to industry-specific risks and uncertainties such as (i) oil and gas price declines, (ii) fixed and semi-variable costs not decreasing as fast as production volumes, (iii) expected future development being delayed, reduced or cancelled or (iv) increased operating or capital expenditures for non-operated properties that are outside the control of Whiting or the Trust.

Forward-Looking Statements
This press release contains forward-looking statements, including all statements made in this press release other than statements of historical fact. No assurances can be given that such statements will prove to be correct. The estimated time when the Trust will terminate is based on the Trust’s reserve report of the underlying properties as of December 31, 2019 and is subject to the assumptions contained therein. Additionally, the estimated time when the market price of the Trust units should decline to zero is based on the economic rights of the Trust units. The trading price of the Trust units is affected by factors outside of the control of the Trust or Whiting, including actions of market participants, among others. Other important factors that could cause actual results to differ materially include expenses of the Trust, fluctuations in oil and natural gas prices, the effect, impact, potential duration or other implications of the COVID-19 pandemic, or any government response to such pandemic, actions of the Organization of Petroleum Exporting Countries, uncertainty of estimates of oil and natural gas reserves and production, uncertainty as to the timing of any such production, risks inherent in the operation, production and development of oil and gas, future production and development costs and other risks described in the Trust’s Annual Report on Form 10-K for the year ended December 31, 2019, its Quarterly Report on Form 10-Q for the period ended March 31, 2020 and in its other filings with the Securities and Exchange Commission (the “SEC”). The Trust’s annual, quarterly and other reports filed under the Securities Exchange Act of 1934, as amended, are available electronically from the website maintained by the SEC at http://www.sec.gov. Statements made in this press release are qualified by the cautionary statements made in this press release. The Trustee does not intend, and assumes no obligation, to update any of the statements included in this press release.

Contacts

Whiting USA Trust II
The Bank of New York Mellon Trust Company, N.A., as Trustee
Mike Ulrich
(512) 236-6599

: Business Wire; Posted On Aug 07, 2020

Hannon Armstrong Announces Second Quarter 2020 Results

ANNAPOLIS, Md.--(BUSINESS WIRE)--$HASI #earnings--Hannon Armstrong Sustainable Infrastructure Capital, Inc. ("Hannon Armstrong," "we," "our" or the "Company") (NYSE: HASI), a leading investor in climate change solutions, today reported results for the second quarter of 2020.

Recent Highlights

Delivered $0.16 GAAP EPS on a fully diluted basis in the second quarter of 2020, compared with $0.19 in the second quarter of 2019
Delivered $0.40 Core EPS (pre-CECL provision) and $0.36 Core EPS on a fully diluted basis in the second quarter of 2020, compared to $0.30 Core EPS in the second quarter of 2019
Announced a partnership with ENGIE in July for Hannon Armstrong to invest approximately $540 million in a 2.3 GW portfolio of highly-contracted, grid-connected wind and solar assets
Increased GAAP Net Investment Income for the first half of 2020 by 18% to $21 million, compared to $18 million in the first half of 2019
Increased Core Net Investment Income for the first half of 2020 by 29% to $49 million, compared to $38 million in the first half of 2019
Declared quarterly dividend of $0.34 per share payable in October 2020
Closed $178 million of transactions in the quarter, compared to $204 million in the same period in 2019, and remain on track to close more than $1 billion of transactions for the full year 2020
Launched multiple diversity, equity, inclusion, and justice initiatives, including a multi-year plan
Estimated that 66,000 metric tons of annual carbon emissions will be avoided annually by our transactions this quarter, equating to a CarbonCount^®score of 0.37 metric tons per $1,000 invested

"We closed another strong quarter with 33% year-on-year growth in core earnings and remain on track for our full year guidance," said Jeffrey W. Eckel, Hannon Armstrong Chairman and Chief Executive Officer.

"Despite COVID-19, Hannon Armstrong continues to execute and support our clients’ rapid penetration of climate change solutions, such as wind, solar, and efficiency. These assets are performing and proving durable during this historic crisis."

A summary of our results is shown in the tables below:

	For the three months ended June 30, 2020				For the three months ended June 30, 2019
	$ in thousands		Per Share (Diluted)		$ in thousands		Per Share (Diluted)
GAAP Net Income	$	12,008	$	0.16	$	12,740	$	0.19
Core Earnings ⁽¹⁾	27,058		0.36		19,773		0.30

(1)	Includes a provision for loss on receivables of $2.5 million related to the new credit loss standard, which we may refer to in this press release as CECL or Topic 326. On a pre-CECL provision basis comparable to last year, the per share core earnings are $0.40 for the three months ended June 30, 2020. A reconciliation of our GAAP net income to core earnings is included in this press release.

	For the six months ended June 30, 2020				For the six months ended June 30, 2019
	$ in thousands		Per Share (Diluted)		$ in thousands		Per Share (Diluted)
GAAP Net Income	$	36,317	$	0.51	$	26,386	$	0.41
Core Earnings ⁽¹⁾	57,258		0.79		40,707		0.63

(1)	Includes a provision for loss on receivables of $3.2 million for the adoption of CECL. On a pre-CECL provision basis comparable to last year, the per share core earnings are $0.84 for the six months ended June 30, 2020. A reconciliation of our GAAP net income to core earnings is included in this press release.

Financial Results

"In the second quarter, we demonstrated the strength of our dual revenue model, achieving growth in recurring core net investment income generated from our balance sheet portfolio and our public capital raising - while simultaneously recording significant gain on sale revenue utilizing our traditional securitization counterparties," said Hannon Armstrong Chief Financial Officer Jeffrey A. Lipson.

"With over $500 million in available cash on our balance sheet, we remain well-positioned to fund the ENGIE co-investment and other near-term anticipated transactions."

Comparison of the three months ended June 30, 2020 to the same period in 2019

Total revenue increased by approximately $17 million, or 55%. Gain on sale and fee income increased by approximately $11 million and interest and rental income increased by approximately $6 million. These increases were primarily due to higher-yielding assets with a higher average balance as well as a change in the mix of assets being securitized.

Interest expense increased approximately $7 million as a result of a higher outstanding balance and cost of debt, including as a result of the new $400 million debt offering in April 2020. We recorded an approximate $3 million provision for loss on receivables as a result of the potential economic impacts resulting from the COVID-19 pandemic and loan commitments made during the period. Other expenses (compensation and benefits and general and administrative expenses) increased by $3 million primarily due to an increase in our employee headcount and incentive compensation.

For the quarter, we recognized a $1 million loss using the hypothetical liquidation at book value method (HLBV) for our equity method investments. This compared to $8 million of HLBV income in the same period last year when income was higher as the result of tax attribute allocations which had the impact of increasing earnings.

GAAP net income was $12 million, or a decrease of $1 million. Core earnings was $27 million, or an increase of $7 million, or 37%, primarily due to the higher interest income, gain on sale and fee income, and core equity method income offset partially by higher interest expense.

A reconciliation of our GAAP net income to core earnings is included in this press release.

Leverage

The calculation of our fixed-rate debt and leverage ratios as of June 30, 2020 and 2019 are shown in the chart below:

	June 30, 2020		% of Total		June 30, 2019		% of Total
	($ in millions)				($ in millions)
Floating-rate borrowings ⁽¹⁾	$	30	2	%	$	269	24	%
Fixed-rate debt ⁽²⁾	1,687		98	%	830		76	%
Total	$	1,717	100	%	$	1,099	100	%
Leverage ⁽³⁾		1.6 to 1				1.2 to 1

(1)	Floating-rate borrowings include borrowings under our floating-rate credit facilities and approximately $59 million of non-recourse debt with floating rate exposure as of June 30, 2019.
(2)	Fixed-rate debt also includes the present notional value of non-recourse debt that is hedged using interest rate swaps. Debt excludes securitizations that are not consolidated on our balance sheet.
(3)	Leverage, as measured by our debt-to-equity ratio. This calculation excludes securitizations that are not consolidated on our balance sheet (where the collateral is typically financing receivables with U.S. government obligors).

Portfolio

Our Portfolio totaled approximately $2.1 billion as of June 30, 2020, which included approximately $1.3 billion of behind-the-meter assets and approximately $0.8 billion of grid-connected assets. The following is an analysis of the performance our Portfolio as of June 30, 2020:

	Portfolio Performance
	1⁽¹⁾						2 ⁽²⁾						3⁽³⁾						Total
	(dollars in millions)
	Government			Commercial			Government			Commercial			Government			Commercial
Total receivables	257			853			—			10			—			8			1,128
Less: Allowance for loss on receivables	—			(18		)	—			(3		)	—			(8		)	(29		)
Net receivables ⁽⁴⁾	257			835			—			7			—			—			1,099
Investments	35			11			—			—			—			—			46
Real estate	—			361			—			—			—			—			361
Equity method ⁽⁵⁾investments	—			532			—			24			—			—			556
Total	$	292		$	1,739		$	—		$	31		$	—		$	—		$	2,062
Percent of Portfolio	14		%	84		%	—		%	2		%	—		%	—		%	100		%
Average remaining balance ⁽⁶⁾	$	7		$	11		$	—		$	11		$	—		$	4		$	10

(1)	This category includes our assets where based on our credit criteria and performance to date we believe that our risk of not receiving our invested capital remains low.
(2)	This category includes our assets where based on our credit criteria and performance to date we believe there is a moderate level of risk to not receiving some or all of our invested capital.
(3)	This category includes our assets where based on our credit criteria and performance to date, we believe there is substantial doubt regarding our ability to recover some or all of our invested capital. Included in this category are two commercial receivables with a combined total carrying value of approximately $8 million as of June 30, 2020 which we consider impaired and have held on non-accrual status since 2017. We recorded an allowance for the entire asset amounts as described in our Annual Report on Form 10-K filed with the SEC on February 25, 2020. We expect to continue to pursue our legal claims with regards to these assets.
(4)	Total reconciles to the total of the government receivables and commercial receivables lines of the consolidated balance sheets.
(5)	Some of the individual projects included in portfolios that make up our equity method investments have government off takers. As they are part of large portfolios, they are not classified separately.
(6)	Average remaining balance is calculated gross of allowance for loss on receivables and excludes approximately 130 transactions each with outstanding balances that are less than $1 million and that in the aggregate total $49 million.

Guidance

The Company expects that annual core earnings per share in 2020 (pre-CECL provision) will exceed the previously communicated guidance midpoint of $1.43, reflecting 2018 to 2020 annual Core EPS growth above the midpoint of the 2% to 6% from the 2017 baseline. This guidance reflects the Company’s estimates of (i) yield on its existing Portfolio; (ii) yield on incremental Portfolio investments, inclusive of the Company’s existing pipeline; (iii) the volume and profitability of securitization transactions; (iv) amount, timing, and costs of debt and equity capital to fund new investments; (v) changes in costs and expenses reflective of the Company’s forecasted operations, (vi) the ongoing impact of the current outbreak of COVID-19 and (vii) the general interest rate and market environment. All guidance is based on current expectations of the future impact of COVID-19 and the economic conditions, the regulatory environment, the dynamics of the markets in which we operate and the judgment of the Company’s management team. We do not undertake a duty to update such guidance. The Company has not provided GAAP guidance as discussed in the Forward-Looking Statements section of this press release.

Dividend

The Company is announcing today that its Board of Directors approved a quarterly cash dividend of $0.34 per share of common stock. This dividend will be paid on October 9, 2020, to stockholders of record as of October 2, 2020.

Conference Call and Webcast Information

Hannon Armstrong will host an investor conference call today, Thursday, August 6, 2020, at 5:00 p.m. eastern time. The conference call can be accessed live over the phone by dialing 1-866-652-5200 or for international callers, 1-412-317-6016. Please ask to be connected to the Hannon Armstrong call. A replay will be available two hours after the call and can be accessed by dialing 1-877-344-7529, or for international callers, 1-412-317-0088. The passcode for the replay is 10146124. The replay will be available until August 13, 2020.

Interested investors and other parties may also listen to a simultaneous webcast of the conference call by logging onto the Investor Relations section of the Company's website at www.hannonarmstrong.com. The online replay will be available for a limited time beginning immediately following the call.

About Hannon Armstrong

Hannon Armstrong (NYSE: HASI) is the first U.S. public company solely dedicated to investments in climate change solutions, providing capital to leading companies in energy efficiency, renewable energy, and other sustainable infrastructure markets. With more than $6 billion in managed assets as of June 30, 2020. Hannon Armstrong’s core purpose is to make climate-positive investments with superior risk-adjusted returns. For more information, please visit www.hannonarmstrong.com. Follow Hannon Armstrong on LinkedIn and Twitter @HannonArmstrong.

Forward-Looking Statements:

Some of the information contained in this press release is forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended that are subject to risks and uncertainties. For these statements, we claim the protections of the safe harbor for forward-looking statements contained in such Sections. These forward-looking statements include information about possible or assumed future results of our business, financial condition, liquidity, results of operations, plans and objectives. When we use the words "believe," "expect," "anticipate," "estimate," "plan," "continue," "intend," "should," "may" or similar expressions, we intend to identify forward-looking statements.

Forward-looking statements are subject to significant risks and uncertainties. Investors are cautioned against placing undue reliance on such statements. Actual results may differ materially from those set forth in the forward-looking statements. Factors that could cause actual results to differ materially from those described in the forward-looking statements include those discussed under the caption “Risk Factors” included in our most recent Annual Report on Form 10-K as well as in other periodic reports that we file with the U.S. Securities and Exchange Commission.

Other important factors that we think could cause our actual results to differ materially from expected results are summarized below. One of the most significant factors, however, is the ongoing impact of the current outbreak of the novel coronavirus (COVID-19), on the U.S., regional and global economies, the U.S. sustainable infrastructure market and the broader financial markets. The current outbreak of COVID-19 has also impacted, and is likely to continue to impact, directly or indirectly, many of the other important factors below and the risks described in the Form 10-K and in our subsequent filings under the Securities Exchange Act of 1934, as amended. Other factors besides those listed could also adversely affect us. In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. In particular, it is difficult to fully assess the impact of COVID-19 at this time due to, among other factors, uncertainty regarding the severity and duration of the outbreak domestically and internationally, uncertainty regarding the effectiveness of federal, state and local governments’ efforts to contain the spread of COVID-19 and respond to its direct and indirect impact on the U.S. economy and economic activity.

Statements regarding the following subjects, among others, may be forward-looking:

negative impacts from continued spread of COVID-19, including on the U.S. or global economy or on our business, financial position or results of operations;
our expected returns and performance of our investments;
the state of government legislation, regulation and policies that support or enhance the economic feasibility of projects that reduce carbon emissions or increase resilience to climate change, which we refer to as climate change solutions, including energy efficiency and renewable energy projects and the general market demands for such projects;
market trends in our industry, energy markets, commodity prices, interest rates, the debt and lending markets or the general economy;
our business and investment strategy;
availability of opportunities to invest in climate change solutions including energy efficiency and renewable energy projects and our ability to complete potential new opportunities in our pipeline;
our relationships with originators, investors, market intermediaries and professional advisers;
competition from other providers of capital;
our or any other company’s projected operating results;
actions and initiatives of the federal, state and local governments and changes to federal, state and local government policies, regulations, tax laws and rates and the execution and impact of these actions, initiatives and policies;
the state of the U.S. economy generally or in specific geographic regions, states or municipalities and economic trends;
our ability to obtain and maintain financing arrangements on favorable terms, including securitizations;
general volatility of the securities markets in which we participate;
the credit quality of our assets;
changes in the value of our assets, our portfolio of assets and our investment and underwriting process;
the impact of weather conditions, natural disasters, accidents or equipment failures or other events that disrupt the operation of our investments or negatively impact the value our assets;
rates of default or decreased recovery rates on our assets;
interest rate and maturity mismatches between our assets and any borrowings used to fund such assets;
changes in interest rates and the market value of our assets and target assets;
changes in commodity prices, including continued low natural gas prices;
effects of hedging instruments on our assets or liabilities;
the degree to which our hedging strategies may or may not protect us from risks, such as interest rate volatility;
impact of and changes in accounting guidance;
our ability to maintain our qualification as a real estate investment trust (a “REIT”) for U.S. federal income tax purposes;
our ability to maintain our exemption from registration under the Investment Company Act of 1940, as amended (the “1940 Act”);
availability of and our ability to attract and retain qualified personnel;
estimates relating to our ability to generate sufficient cash in the future to operate our business and to make distributions to our stockholders; and
our understanding of our competition.

The risks included here are not exhaustive. Forward-looking statements are based on beliefs, assumptions and expectations as of the date of this press release. Any forward- looking statement speaks only as of the date on which it is made. New risks and uncertainties arise over time, and it is not possible for us to predict those events or how they may affect us. Except as required by law, we are not obligated to, and do not intend to, update or revise any forward-looking statements after the date of this earnings release, whether as a result of new information, future events or otherwise.

The Company has not provided GAAP guidance as forecasting a comparable GAAP financial measure, such as net income, would require that the Company apply the HLBV method to these investments. In order to forecast under the HLBV method, the Company would be required to make various assumptions related to expected changes in the net asset value of the various entities and how such changes would be allocated under HLBV. GAAP HLBV earnings over a period of time are very sensitive to these assumptions especially in regard to when a partnership transaction flips and thus the liquidation scenarios change materially. The Company believes that these assumptions would require unreasonable efforts to complete and if completed, the wide variation in projected GAAP earnings based upon a range of scenarios would not be meaningful to investors. Accordingly, the Company has not included a GAAP reconciliation table related to any core earnings guidance.

Estimated carbon savings are calculated using the estimated kilowatt hours, gallons of fuel oil, million British thermal units of natural gas and gallons of water saved as appropriate, for each project. The energy savings are converted into an estimate of metric tons of CO2 equivalent emissions based upon the project’s location and the corresponding emissions factor data from the U.S. Government and International Energy Agency. Portfolios of projects are represented on an aggregate basis.


HANNON ARMSTRONG SUSTAINABLE INFRASTRUCTURE CAPITAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2020			2019			2020			2019
Revenue
Interest income	$	23,649		$	17,294		$	47,539		$	34,949
Rental income	6,469			6,469			12,939			12,945
Gain on sale of receivables and investments	15,916			2,167			20,820			9,006
Fee income	2,561			5,338			8,130			7,511
Total revenue	48,595			31,268			89,428			64,411
Expenses
Interest expense	21,664			14,869			39,798			30,300
Provision for loss on receivables	2,523			—			3,171			—
Compensation and benefits	9,314			6,650			18,212			14,089
General and administrative	3,853			3,739			7,262			7,080
Total expenses	37,354			25,258			68,443			51,469
Income before equity method investments	11,241			6,010			20,985			12,942
Income (loss) from equity method investments	(590		)	7,624			15,999			12,131
Income (loss) before income taxes	10,651			13,634			36,984			25,073
Income tax (expense) benefit	1,407			(839		)	(515		)	1,430
Net income (loss)	$	12,058		$	12,795		$	36,469		$	26,503
Net income (loss) attributable to non-controlling interest holders	50			55			152			117
Net income (loss) attributable to controlling stockholders	$	12,008		$	12,740		$	36,317		$	26,386
Basic earnings (loss) per common share	$	0.16		$	0.20		$	0.51		$	0.41
Diluted earnings (loss) per common share	$	0.16		$	0.19		$	0.51		$	0.41
Weighted average common shares outstanding—basic	72,914,145			63,772,549			70,043,125			62,766,318
Weighted average common shares outstanding—diluted	73,382,217			64,429,155			70,662,377			63,394,220


HANNON ARMSTRONG SUSTAINABLE INFRASTRUCTURE CAPITAL, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)

	June 30, 2020			December 31, 2019
Assets
Cash and cash equivalents	$	541,825		$	6,208
Equity method investments	556,450			498,631
Government receivables	255,757			263,175
Commercial receivables, net of allowance of $29 million and $8 million, respectively	843,223			896,432
Real estate	360,720			362,265
Investments	45,926			74,530
Securitization assets	139,793			123,979
Other assets	93,246			162,054
Total Assets	$	2,836,940		$	2,387,274
Liabilities and Stockholders’ Equity
Liabilities:
Accounts payable, accrued expenses and other	$	52,123		$	54,351
Credit facilities	30,377			31,199
Non-recourse debt (secured by assets of $800 million and $921 million, respectively)	625,884			700,225
Senior unsecured notes	910,665			512,153
Convertible notes	149,927			149,434
Total Liabilities	1,768,976			1,447,362
Stockholders’ Equity:
Preferred stock, par value $0.01 per share, 50,000,000 shares authorized, no shares issued and outstanding	—			—
Common stock, par value $0.01 per share, 450,000,000 shares authorized, 73,318,552 and 66,338,120 shares issued and outstanding, respectively	733			663
Additional paid in capital	1,250,976			1,102,303
Accumulated deficit	(198,719		)	(169,786		)
Accumulated other comprehensive income (loss)	9,619			3,300
Non-controlling interest	5,355			3,432
Total Stockholders’ Equity	1,067,964			939,912
Total Liabilities and Stockholders’ Equity	$	2,836,940		$	2,387,274

EXPLANATORY NOTES
Non-GAAP Financial Measures
Core Earnings

We calculate core earnings as GAAP net income (loss) excluding non-cash equity compensation expense, certain provisions for loss on receivables, amortization of intangibles, any one-time acquisition related costs or non-cash tax charges and the earnings attributable to our non-controlling interest of our Operating Partnership.

Contacts

Investor Relations:
Chad Reed
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410-571-6189

Media:
Gil Jenkins
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443-321-5753

Read full story here

: Business Wire; Posted On Aug 07, 2020

Forum Energy Technologies Announces Second Quarter 2020 Results

Revenue of $113 million
Net loss of $(5) million and diluted EPS of $(0.05)
Adjusted EBITDA of $(11.6) million
Cash flow from operations of $(3.6) million and free cash flow after capital expenditures of $(3.5) million

HOUSTON--(BUSINESS WIRE)--Forum Energy Technologies, Inc. (NYSE: FET) today announced second quarter 2020 revenue of $113 million, a decrease of $69 million from the first quarter 2020. Net loss for the quarter was $5 million, or $0.05 per diluted share, compared to a net loss of $37 million, or $0.33 per diluted share, for the first quarter 2020. Excluding $27 million, or $0.24 per share of special items, adjusted net loss was $0.29 per diluted share in the second quarter 2020, compared to an adjusted net loss of $0.20 per diluted share in the first quarter 2020. Adjusted EBITDA was $(11.6) million in the second quarter 2020, a decrease of approximately $16.1 million from the first quarter 2020.

Special items in the second quarter 2020, on a pre-tax basis, included a $36 million gain on extinguishment of debt, repurchased by the company at a substantial discount, partially offset by $4 million of restructuring and other charges, $4 million of inventory and other impairments and $1 million of foreign exchange losses. See Tables 1-3 for a reconciliation of GAAP to non-GAAP financial information.

Cris Gaut, Chairman and Chief Executive Officer, remarked, “The dislocation caused by the COVID-19 pandemic and the resulting collapse in energy demand has been dramatic. With little ongoing work for drilling and completions services, customer spending has been exceptionally weak, impacting demand for many of Forum’s products.

“In response to these challenges, our management team moved swiftly to restructure the company to weather the storm. Early in the second quarter, we completed significant structural cost reductions, which represent a step change in the rate of continuous cost actions undertaken since the downturn began in 2014. Our results reflect the impact of removing approximately $100 million of cost on an annualized basis in the second quarter 2020 compared to the immediately preceding quarter. On a year-over-year basis, the cost reductions on an annualized basis are close to $150 million. This swift and significant action allowed Forum to significantly offset lower sales volume and pricing limiting our decremental margins to 23% compared to the first quarter. We now have a much leaner cost structure to weather the downturn and benefit from any incremental activity increases.

“Earlier this week, Forum successfully closed the exchange offer for our outstanding notes. This transaction extends our maturity to 2025 and maintains our current cash interest cost. In addition, the new notes preserve equity value for our current shareholders and provide a deleveraging opportunity through a partial, mandatory conversion to equity at a significant premium to the current stock price. Forum now has ample runway to take advantage of the opportunities a market recovery will present.”

Segment Results

Drilling & Downhole segment revenue was $47 million, a decrease of $29 million, or 38%, from the first quarter 2020, due to lower sales of drilling and downhole products in North America, resulting from the significant slowdown in drilling and completions activity. Orders in the second quarter were $42 million, a 40% decrease from the first quarter, primarily due to lower orders for downhole and drilling consumable short cycle products. Segment adjusted EBITDA was $(3) million, down $10 million from the first quarter, resulting primarily from the significant decline in revenues partially offset by cost reduction actions taken in the second quarter. Drilling & Downhole operations focus primarily on capital equipment and consumable products for global drilling, well construction, artificial lift and subsea markets.

Completions segment revenue was $18 million, a sequential decrease of $33 million, or 65%, due to the severe slowdown in well completions activity and cannibalization of equipment by our service company customers. Orders in the second quarter were $14 million, a decrease of $36 million, or 72%, from the first quarter 2020. Segment adjusted EBITDA was $(6) million, down $10 million from the first quarter, as a result of the loss of operating leverage on lower sales volumes partially offset by significant cost reductions implemented in the second quarter. The Completions segment designs and manufactures products for the coiled tubing, stimulation and intervention markets.

Production segment revenue was $49 million, a decrease of $7 million, or 13% from the first quarter 2020, due to lower sales for our Valve Solutions product line. Orders in the second quarter were $29 million, a 43% decrease sequentially, due to lower orders for surface production equipment as operators slowed their completions activity and fewer bookings from our valve distribution customers due to their ongoing inventory destocking. Segment adjusted EBITDA was $2.1 million, an increase of $2 million sequentially, as a result of cost reductions from restructuring actions implemented in the second quarter. The Production segment manufactures land well site production equipment, desalination process equipment, and a wide range of valves for upstream, midstream and process industry customers.

Forum Energy Technologies is a global oilfield products company, serving the drilling, downhole, subsea, completions and production sectors of the oil and natural gas industry. The Company’s products include highly engineered capital equipment as well as products that are consumed in the drilling, well construction, production and transportation of oil and natural gas. Forum is headquartered in Houston, TX with manufacturing and distribution facilities strategically located around the globe. For more information, please visit www.f-e-t.com.

Forward Looking Statements and Other Legal Disclosure

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the expectations of plans, strategies, objectives and anticipated financial and operating results of the Company, including any statement about the Company's future financial position, liquidity and capital resources, operations, performance, acquisitions, returns, capital expenditure budgets, new product development activities, costs and other guidance included in this press release.

These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. Among other things, these include the severity and duration of the COVID-19 pandemic and related repercussions resulting from the negative impact on demand for oil and gas, the volatility of oil and natural gas prices, oilfield development activity levels, the availability of raw materials and specialized equipment, the Company's ability to deliver backlog in a timely fashion, the availability of skilled and qualified labor, competition in the oil and gas industry, governmental regulation and taxation of the oil and natural gas industry, the Company's ability to implement new technologies and services, the availability and terms of capital, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the Company's business, and other important factors that could cause actual results to differ materially from those projected as described in the Company's filings with the U.S. Securities and Exchange Commission.

Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.

Forum Energy Technologies, Inc.
Condensed consolidated statements of income (loss)
(Unaudited)

	Three months ended
	June 30,						March 31,
(in millions, except per share information)	2020			2019			2020
Revenue	$	113.3		$	245.6		$	182.6
Cost of sales	100.4			182.4			160.5
Gross profit	12.9			63.2			22.1
Operating expenses
Selling, general and administrative expenses	48.3			62.9			60.2
Transaction expenses	0.2			0.1			—
Impairments of intangibles, property and equipment	0.1			—			17.3
Loss (gain) on disposal of assets and other	(0.7		)	0.1			—
Total operating expenses	47.9			63.1			77.5
Earnings from equity investment	—			0.6			—
Operating income (loss)	(35.0		)	0.7			(55.4		)
Other expense (income)
Interest expense	6.4			8.2			6.7
Gain on extinguishment of debt	(36.3		)	—			(7.5		)
Deferred loan costs written off	0.1			—			1.8
Foreign exchange losses (gains) and other, net	0.7			(2.2		)	(4.9		)
Total other (income) expense, net	(29.1		)	6.0			(3.9		)
Loss before income taxes	(5.9		)	(5.3		)	(51.5		)
Income tax expense (benefit)	(0.4		)	8.4			(14.4		)
Net loss ⁽¹⁾	$	(5.5	)	$	(13.7	)	$	(37.1	)

Weighted average shares outstanding
Basic	111.6			110.0			111.2
Diluted	111.6			110.0			111.2

Loss per share
Basic	$	(0.05	)	$	(0.12	)	$	(0.33	)
Diluted	$	(0.05	)	$	(0.12	)	$	(0.33	)

⁽¹⁾ Refer to Table 1 for schedule of adjusting items.

Forum Energy Technologies, Inc.
Condensed consolidated statements of income (loss)
(Unaudited)

	Six months ended
	June 30,
(in millions, except per share information)	2020			2019
Revenue	$	295.9		$	517.5
Cost of sales	260.9			384.2
Gross profit	35.0			133.3
Operating expenses
Selling, general and administrative expenses	108.5			131.8
Transaction expenses	0.2			0.7
Impairments of goodwill, intangibles, property and equipment	17.4			—
Contingent consideration benefit	—			(4.6		)
Loss (gain) on disposal of assets and other	(0.7		)	0.1
Total operating expenses	125.4			128.0
Loss from equity investment	—			(0.3		)
Operating income (loss)	(90.4		)	5.0
Other expense (income)
Interest expense	13.1			16.4
Foreign exchange losses (gains) and other, net	(4.4		)	0.1
Gain on extinguishment of debt	(43.7		)	—
Deferred loan costs written off	2.0			—
Total other (income) expense, net	(33.0		)	16.5
Loss before income taxes	(57.4		)	(11.5		)
Income tax expense (benefit)	(14.8		)	10.1
Net income (loss) ⁽¹⁾	$	(42.6	)	$	(21.6	)

Weighted average shares outstanding
Basic	111.4			109.8
Diluted	111.4			109.8

Loss per share
Basic	$	(0.38	)	$	(0.20	)
Diluted	$	(0.38	)	$	(0.20	)

⁽¹⁾ Refer to Table 2 for schedule of adjusting items.

Forum Energy Technologies, Inc.
Condensed consolidated balance sheets
(Unaudited)

(in millions of dollars)	June 30, 2020		December 31, 2019
Assets
Current assets
Cash and cash equivalents	$	109.7	$	57.9
Accounts receivable—trade, net	89.3		154.2
Inventories, net	377.6		414.6
Other current assets	53.2		39.2
Total current assets	629.8		665.9
Property and equipment, net of accumulated depreciation	131.5		154.8
Operating lease assets	35.5		48.7
Intangible assets, net	253.0		272.3
Other long-term assets	17.1		18.3
Total assets	$	1,066.9	$	1,160.0
Liabilities and equity
Current liabilities
Current portion of long-term debt	$	1.3	$	0.7
Other current liabilities	146.9		196.2
Total current liabilities	148.2		196.9
Long-term debt, net of current portion	412.4		398.9
Other long-term liabilities	65.3		78.2
Total liabilities	625.9		674.0
Total equity	441.0		486.0
Total liabilities and equity	$	1,066.9	$	1,160.0

Forum Energy Technologies, Inc.
Condensed consolidated cash flow information
(Unaudited)
	Six Months Ended June 30,
(in millions of dollars)	2020			2019
Cash flows from operating activities
Net loss	$	(42.6	)	$	(21.6	)
Impairments of intangible assets, property and equipment	17.4			—
Depreciation and amortization	26.7			32.7
Impairments of operating lease assets	9.3			2.0
Inventory write down	16.4			1.6
Gain on extinguishment of debt	(43.7		)	—
Other noncash items and changes in working capital	14.4			26.1
Net cash provided by (used in) operating activities	(2.1		)	40.8

Cash flows from investing activities
Capital expenditures for property and equipment	(1.5		)	(9.2		)
Proceeds from sale of business, property and equipment	1.3			0.4
Net cash used in investing activities	(0.2		)	(8.8		)

Cash flows from financing activities
Borrowings of debt	85.0			82.0
Repayments of debt	(28.2		)	(123.1		)
Repurchases of stock	(0.1		)	(1.0		)
Deferred financing costs	(2.3		)	—
Net cash provided by (used in) financing activities	54.4			(42.1		)

Effect of exchange rate changes on cash	(0.3		)	0.2
Net increase (decrease) in cash, cash equivalents and restricted cash	$	51.8		$	(9.9	)

Forum Energy Technologies, Inc.
Supplemental schedule - Segment information
(Unaudited)

	As Reported									As Adjusted ⁽⁴⁾
	Three months ended									Three months ended
(in millions of dollars)	June 30, 2020			June 30, 2019			March 31, 2020			June 30, 2020			June 30, 2019			March 31, 2020
Revenue
Drilling & Downhole	$	47.2		$	82.4		$	76.6		$	47.2		$	82.4		$	76.6
Completions	17.6			81.5			50.8			17.6			81.5			50.8
Production	48.6			83.3			55.6			48.6			83.3			55.6
Eliminations	(0.1		)	(1.6		)	(0.4		)	(0.1		)	(1.6		)	(0.4		)
Total revenue	$	113.3		$	245.6		$	182.6		$	113.3		$	245.6		$	182.6

Operating income (loss)
Drilling & Downhole ⁽¹⁾	$	(9.4	)	$	1.3		$	(4.1	)	$	(7.8	)	$	2.0		$	1.0
Operating income margin %	(19.9		)%	1.6		%	(5.4		)%	(16.5		)%	2.4		%	1.3		%
Completions	(17.8		)	2.8			(17.3		)	(13.2		)	2.9			(4.2		)
Operating income margin %	(101.1		)%	3.4		%	(34.1		)%	(75.0		)%	3.6		%	(8.3		)%
Production	(1.1		)	3.6			(8.2		)	(0.7		)	3.6			(2.2		)
Operating income margin %	(2.3		)%	4.3		%	(14.7		)%	(1.4		)%	4.3		%	(4.0		)%
Corporate	(7.2		)	(6.8		)	(8.5		)	(5.7		)	(6.7		)	(7.5		)
Total segment operating income (loss)	(35.5		)	0.9			(38.1		)	(27.4		)	1.8			(12.9		)
Other items not in segment operating income ⁽²⁾	0.5			(0.2		)	(17.3		)	0.7			0.1			—
Total operating income (loss)	$	(35.0	)	$	0.7		$	(55.4	)	$	(26.7	)	$	1.9		$	(12.9	)
Operating income margin %	(30.9		)%	0.3		%	(30.3		)%	(23.6		)%	0.8		%	(7.1		)%

EBITDA ⁽³⁾
Drilling & Downhole	$	(5.3	)	$	8.1		$	(1.0	)	$	(3.2	)	$	8.1		$	6.5
EBITDA Margin %	(11.2		)%	9.8		%	(1.3		)%	(6.8		)%	9.8		%	8.5		%
Completions	(11.9		)	11.3			(19.9		)	(6.2		)	12.7			3.7
EBITDA Margin %	(67.6		)%	13.9		%	(39.2		)%	(35.2		)%	15.6		%	7.3		%
Production	1.3			5.2			(6.5		)	2.1			6.1			0.3
EBITDA Margin %	2.7		%	6.2		%	(11.7		)%	4.3		%	7.3		%	0.5		%
Corporate	28.9			(5.4		)	(3.2		)	(4.3		)	(4.2		)	(6.0		)
Total EBITDA	$	13.0		$	19.2		$	(30.6	)	$	(11.6	)	$	22.7		$	4.5
EBITDA Margin %	11.5		%	7.8		%	(16.8		)%	(10.2		)%	9.2		%	2.5		%

⁽¹⁾ Includes earnings (loss) from equity investment for the three months ended June 30, 2019.
⁽²⁾ Includes transaction expenses, gain/(loss) on disposal of assets, and impairments of intangibles, property and equipment.
⁽³⁾ The Company believes that the presentation of EBITDA is useful to the Company's investors because EBITDA is an appropriate measure of evaluating the Company's operating performance and liquidity that reflects the resources available for strategic opportunities including, among others, investing in the business, strengthening the balance sheet, repurchasing the Company's securities and making strategic acquisitions. In addition, EBITDA is a widely used benchmark in the investment community. See the attached separate schedule for the reconciliation of GAAP to non-GAAP financial information.
⁽⁴⁾ Refer to Table 1 for schedule of adjusting items.

Forum Energy Technologies, Inc.
Supplemental schedule - Segment information
(Unaudited)

	As Reported						As Adjusted ⁽⁴⁾
	Six months ended						Six months ended
(in millions of dollars)	June 30, 2020			June 30, 2019			June 30, 2020			June 30, 2019
Revenue
Drilling & Downhole	$	123.8		$	168.3		$	123.8		$	168.3
Completions	68.4			176.2			68.4			176.2
Production	104.2			175.3			104.2			175.3
Eliminations	(0.5		)	(2.3		)	(0.5		)	(2.3		)
Total revenue	$	295.9		$	517.5		$	295.9		$	517.5

Operating income (loss)
Drilling & Downhole ⁽¹⁾	$	(13.5	)	$	(1.2	)	$	(6.7	)	$	2.3
Operating income margin %	(10.9		)%	(0.7		)%	(5.4		)%	1.4		%
Completions	(35.1		)	9.7			(17.4		)	10.5
Operating income margin %	(51.3		)%	5.5		%	(25.4		)%	6.0		%
Production	(9.2		)	7.9			(2.9		)	8.2
Operating income margin %	(8.8		)%	4.5		%	(2.8		)%	4.7		%
Corporate	(15.7		)	(15.2		)	(13.3		)	(14.1		)
Total segment operating income (loss)	(73.5		)	1.2			(40.3		)	6.9
Other items not in segment operating income (loss) ⁽²⁾	(16.9		)	3.8			0.7			0.2
Total operating income (loss)	$	(90.4	)	$	5.0		$	(39.6	)	$	7.1
Operating income margin %	(30.6		)%	1.0		%	(13.4		)%	1.4		%

EBITDA ⁽³⁾
Drilling & Downhole	$	(6.2	)	$	10.1		$	3.3		$	14.4
EBITDA Margin %	(5.0		)%	6.0		%	(3.6		)%	8.6		%
Completions	(31.8		)	26.9			(2.5		)	30.1
EBITDA Margin %	(46.5		)%	15.3		%	(3.7		)%	17.1		%
Production	(5.3		)	11.6			2.4			13.1
EBITDA Margin %	(5.1		)%	6.6		%	2.3		%	7.5		%
Corporate	25.7			(11.0		)	(10.3		)	(9.3		)
Total EBITDA	$	(17.6	)	$	37.6		$	(7.1	)	$	48.3
EBITDA Margin %	(5.9		)%	7.3		%	(2.4		)%	9.3		%

⁽¹⁾ Includes earnings (loss) from equity investment for the six months ended June 30, 2019.
⁽²⁾ Includes transaction expenses, gain (loss) on disposal of assets, contingent consideration benefit, and impairments of intangibles, property and equipment.
⁽³⁾ The Company believes that the presentation of EBITDA is useful to the Company's investors because EBITDA is an appropriate measure of evaluating the Company's operating performance and liquidity that reflects the resources available for strategic opportunities including, among others, investing in the business, strengthening the balance sheet, repurchasing the Company's securities and making strategic acquisitions. In addition, EBITDA is a widely used benchmark in the investment community. See the attached separate schedule for the reconciliation of GAAP to non-GAAP financial information.
⁽⁴⁾ Refer to Table 2 for schedule of adjusting items.

Forum Energy Technologies, Inc.
Supplemental schedule - Orders information
(Unaudited)


	Three months ended
(in millions of dollars)	June 30, 2020			June 30, 2019			March 31, 2020
Orders
Drilling & Downhole	$	42.3		$	78.3		$	70.0
Completions	14.2			70.7			49.9
Production	29.1			75.6			50.7
Total orders	$	85.6		$	224.6		$	170.6

Revenue
Drilling & Downhole	$	47.2		$	82.4		$	76.6
Completions	17.6			81.5			50.8
Production	48.6			83.3			55.6
Eliminations	(0.1		)	(1.6		)	(0.4		)
Total revenue	$	113.3		$	245.6		$	182.6

Book to bill ratio ⁽¹⁾
Drilling & Downhole	0.90			0.95			0.91
Completions	0.81			0.87			0.98
Production	0.60			0.91			0.91
Total book to bill ratio	0.76			0.91			0.93

⁽¹⁾ The book-to-bill ratio is calculated by dividing the dollar value of orders received in a given period by the revenue earned in that same period. The Company believes that this ratio is useful to investors because it provides an indication of whether the demand for our products, in the markets in which the Company operates, is strengthening or declining. A ratio of greater than one is indicative of improving market demand, while a ratio of less than one would suggest weakening demand. In addition, the Company believes the book-to-bill ratio provides more meaningful insight into future revenues for our business than other measures, such as order backlog, because the majority of the Company's products are activity based consumable items or shorter cycle capital equipment, neither of which are typically ordered by customers far in advance.

Forum Energy Technologies, Inc.
Reconciliation of GAAP to non-GAAP financial information
(Unaudited)
Table 1 - Adjusting items

	Three months ended
	June 30, 2020								June 30, 2019								March 31, 2020
(in millions, except per share information)	Operating income (loss)			EBITDA ⁽¹⁾			Net income (loss)		Operating income (loss)			EBITDA ⁽¹⁾			Net income (loss)		Operating income (loss)			EBITDA ⁽¹⁾			Net income (loss)
As reported	$	(35.0)		$	13.0		$	(5.5)	$	0.7		$	19.2		$	(13.7)	$	(55.4)		$	(30.6)		$	(37.1)
% of revenue	(30.9)		%	11.5		%			0.3		%	7.8		%			(30.3)		%	(16.8)		%
Restructuring charges and other	4.1			4.1			4.1		1.0			1.0			1.0		5.4			5.4			5.4
Transaction expenses	0.2			0.2			0.2		0.1			0.1			0.1		—			—			—
Inventory and other working capital adjustments	4.1			4.1			4.1		—			—			—		10.3			10.3			10.3
Impairments of intangibles, property and equipment	0.1			0.1			0.1		—			—			—		17.3			17.3			17.3
Stock-based compensation expense	—			2.6			—		—			4.4			—		—			3.2			—
Impairments of operating lease assets	(0.2)			(0.2)			(0.2)		(0.5)			(0.5)			(0.5)		9.5			9.5			9.5
Amortization of basis difference for equity method investment⁽²⁾	—			—			—		0.5			0.5			0.5		—			—			—
Gain on extinguishment of debt	—			(36.2)			(36.2)		—			—			—		—			(7.5)			(7.5)
Deferred loan costs written off	—			0.2			0.2		—			—			—		—			1.8			1.8
Loss (gain) on foreign exchange, net⁽³⁾	—			0.5			0.5		—			(2.1)			(2.1)		—			(4.9)			(4.9)
Impact of U.S. CARES Act	—			—			—		—			—			—		—			—			(16.6)
Valuation allowance on deferred tax assets	—			—			—		—			—			5.9		—			—			—
As adjusted ⁽¹⁾	$	(26.7)		$	(11.6)		$	(32.7)	$	1.8		$	22.6		$	(8.8)	$	(12.9)		$	4.5		$	(21.8)
% of revenue	(23.6)		%	(10.2)		%			0.7		%	9.2		%			(7.1)		%	2.5		%

Diluted shares outstanding as reported							111.6								110.0								111.2
Diluted shares outstanding as adjusted							111.6								110.0								111.2

Diluted EPS - as reported							$	(0.05)							$	(0.12)							$	(0.33)
Diluted EPS - as adjusted							$	(0.29)							$	(0.08)							$	(0.20)

(1) The Company believes that the presentation of EBITDA, adjusted EBITDA, adjusted operating income, adjusted net income and adjusted diluted EPS are useful to the Company's investors because (i) each of these financial metrics are useful to investors to assess and understand operating performance, especially when comparing those results with previous and subsequent periods or forecasting performance for future periods, primarily because management views the excluded items to be outside of the Company's normal operating results and (ii) EBITDA is an appropriate measure of evaluating the Company's operating performance and liquidity that reflects the resources available for strategic opportunities including, among others, investing in the business, strengthening the balance sheet, repurchasing the Company's securities and making strategic acquisitions. In addition, these benchmarks are widely used in the investment community. See the attached separate schedule for the reconciliation of GAAP to non-GAAP financial information.

(2) The difference between the fair value of our interest in Ashtead and the book value of the underlying net assets resulted in a basis difference non-operating gain, which was allocated to fixed assets, intangible assets and goodwill based on their respective fair values as of the transaction date. This amount represents the amortization of the basis difference gain associated with intangible assets and property, plant and equipment which is included in equity earnings (loss) over the estimated life of the respective assets.

(3) Foreign exchange, net primarily relates to cash and receivables denominated in U.S. dollars by some of our non-U.S. subsidiaries that report in a local currency, and therefore the loss has no economic impact in dollar terms.

Contacts

Lyle Williams
Executive Vice President and Chief Financial Officer
713.351.7920
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Read full story here

: Business Wire; Posted On Aug 07, 2020

C.H. Robinson Declares Quarterly Cash Dividend

MINNEAPOLIS--(BUSINESS WIRE)--C.H. Robinson Worldwide, Inc. (“C.H. Robinson”) (Nasdaq: CHRW) announced that its Board of Directors today declared a regular quarterly cash dividend of 51 cents ($0.51) per share, payable on September 30, 2020, to shareholders of record on September 4, 2020.

C.H. Robinson has distributed regular dividends for more than twenty-five years. As of August 6, 2020, there were approximately 135,157,964 shares outstanding.

About C.H. Robinson

C.H. Robinson solves logistics problems for companies across the globe and across industries, from the simple to the most complex. With nearly $20 billion in freight under management and 18 million shipments annually, we are one of the world’s largest logistics platforms. Our global suite of services accelerates trade to seamlessly deliver the products and goods that drive the world’s economy. With the combination of our multimodal transportation management system and expertise, we use our information advantage to deliver smarter solutions for our more than 119,000 customers and 78,000 contract carriers. Our technology is built by and for supply chain experts to bring faster, more meaningful improvements to our customers’ businesses. As a responsible global citizen, we are also proud to contribute millions of dollars to support causes that matter to our company, our Foundation and our employees. For more information, visit us at www.chrobinson.com (Nasdaq: CHRW).

Source: C.H. Robinson
CHRW-IR

Contacts

Chuck Ives, Director of Investor Relations
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

: Business Wire; Posted On Aug 07, 2020

Pioneer Natural Resources Announces Pricing of Public Offering of $1.1 Billion of 1.90% Senior Notes Due 2030

DALLAS--(BUSINESS WIRE)--Pioneer Natural Resources Company (NYSE: PXD) (“Pioneer” or “the Company”) today announced that it has priced a public offering of $1.1 billion of 1.90% Senior Notes that will mature August 15, 2030 (the “Notes”), pursuant to an effective shelf registration statement that was previously filed with the Securities and Exchange Commission. The price to the public for the Notes is 99.205% of the principal amount.

The Company intends to use the net proceeds of approximately $1.08 billion from the offering, after deducting underwriting discounts (excluding fees and expenses of the offering), for general corporate purposes, which may include, but are not limited to, the repayment or repurchase of the Company’s 3.45% senior notes due 2021, 3.95% senior notes due 2022, or other corporate obligations.

Interest on the Notes will be payable on February 15 and August 15 of each year. The first interest payment will be due on February 15, 2021, and will consist of interest from closing to that date. The offering is expected to close on August 11, 2020, subject to the satisfaction of customary closing conditions.

BofA Securities, Inc., J.P. Morgan Securities LLC, Wells Fargo Securities, LLC, Barclays Capital Inc., BMO Capital Markets Corp., Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, MUFG Securities Americas Inc. and TD Securities (USA) LLC are acting as Joint Book-Running Managers for the offering. Credit Suisse (USA) LLC, Goldman Sachs & Co. LLC, RBC Capital Markets, LLC, Scotia Capital (USA) Inc. and U.S. Bancorp Investments, Inc. are acting as Senior Co-Managers and BBVA Securities Inc., CIBC World Markets Corp., Citizens Capital Markets, Inc., PNC Capital Markets LLC and Truist Securities, Inc. are acting as Co-Managers for the offering. When available, a copy of the prospectus supplement and accompanying base prospectus relating to the offering may be obtained from: BofA Securities, Inc. at 200 North College Street, 3rd Floor, Charlotte, NC 28255, Attn: Prospectus Department, Email: This email address is being protected from spambots. You need JavaScript enabled to view it., Toll-Free: 1-800-294-1322; J.P. Morgan Securities LLC at: 383 Madison Avenue, New York, NY 10179, Attn: Investment Grade Syndicate Desk-3rd Floor or by calling collect at (212) 834-4533; or Wells Fargo Securities, LLC at: 608 2nd Avenue South, Suite 1000, Minneapolis, MN 55402, Attn: WFS Customer Service, Email: This email address is being protected from spambots. You need JavaScript enabled to view it., Toll-Free: 1-800-645-3751.

An electronic copy of the preliminary prospectus supplement and accompanying base prospectus may also be obtained at no charge at the Securities and Exchange Commission’s website at www.sec.gov.

This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The offering may be made only by means of a prospectus and prospectus supplement meeting the requirements of Section 10 of the Securities Act of 1933, as amended. The offering will be made pursuant to an effective shelf registration statement, which was previously filed by Pioneer with the Securities and Exchange Commission, and a prospectus supplement and accompanying prospectus, which will be filed by Pioneer with the Securities and Exchange Commission.

Pioneer is a large independent oil and gas exploration and production company, headquartered in Dallas, Texas, with operations in the United States.

Except for historical information contained herein, the statements in this news release are forward-looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements and the business prospects of Pioneer are subject to a number of risks and uncertainties that may cause Pioneer’s actual results in future periods to differ materially from the forward-looking statements. These risks and uncertainties include, among other things, volatility of commodity prices, product supply and demand, the impact of a widespread outbreak of an illness, such as the COVID-19 pandemic on global and U.S. economic activity, competition, the ability to obtain environmental and other permits and the timing thereof, other government regulation or action, litigation, the costs and results of drilling and operations, availability of equipment, services, resources and personnel required to perform the Company’s drilling and operating activities, access to and availability of transportation, processing, fractionation, refining, storage and export facilities, Pioneer’s ability to implement its business plans or complete its development activities as scheduled, the financial strength of counterparties to Pioneer’s credit facility, investment instruments and derivative contracts and purchasers of Pioneer’s oil, natural gas liquids and gas production, environmental and weather risks, including the possible impacts of climate change, cybersecurity risks, and acts of war or terrorism. These and other risks are described in Pioneer’s Annual Report on Form 10-K for the year ended December 31, 2019, Quarterly Reports on Form 10-Q for the quarters ended March 31, 2020 and June 30, 2020, and other filings with the Securities and Exchange Commission. In addition, Pioneer may be subject to currently unforeseen risks that may have a materially adverse impact on it. Accordingly, no assurances can be given that the actual events and results will not be materially different than the anticipated results described in the forward-looking statements. Pioneer undertakes no duty to publicly update these statements except as required by law.

Contacts

Pioneer Natural Resources Contacts:
Investors
Neal Shah – 972-969-3900
Tom Fitter – 972-969-1821
Michael McNamara – 972-969-3592

Media and Public Affairs
Tadd Owens – 972-969-5760

: Business Wire; Posted On Aug 07, 2020

PolyMet reports results for period ended June 30, 2020

ST. PAUL, Minn.--(BUSINESS WIRE)--PolyMet Mining Corp (“PolyMet” or the “company”) TSX: POM; NYSE American: PLM – today reported that it has filed its financial results for the three and six months ended June 30, 2020.

The financial statements have been filed at www.polymetmining.com and on SEDAR and EDGAR and have been prepared in accordance with International Financial Reporting Standards. All amounts are in U.S. funds. Copies can be obtained free of charge by contacting the company at First Canadian Place, 100 King Street West, Suite 5700, Toronto, Ontario M5X 1C7 or by e-mail at This email address is being protected from spambots. You need JavaScript enabled to view it.

In the most recent quarter, the company continued to progress through the legal process in defense of its operating permits. A number of legal challenges have been filed contesting various aspects of federal and state decisions; the company has received favorable final decisions in six cases to date. Five cases remain outstanding.

In two of the pending cases, the company was successful in petitioning the Minnesota Supreme Court to review lower court decisions. In June, the Supreme Court agreed to hear PolyMet’s appeal regarding our air permit. This was preceded in March by the Supreme Court granting our appeal regarding our Permit to Mine and dam safety permits. Oral arguments for both cases have not yet been scheduled by the court, however, the company anticipates both cases to be heard before the end of the year.

In addition to successfully defending legal challenges to our permits, project optimization and engineering efforts that continued in earnest through the second quarter are expected to remain points of emphasis for the company through the remainder of the year.

Key Balance Sheet Statistics
(in ‘000 US dollars)

		June 30, 2020		December 31, 2019

Cash & equivalents	$	6,473	$	7,401
Working capital		1,116		3,043
Total assets		460,818		457,315
Total liabilities		86,218		73,175
Shareholders’ equity	$	374,600	$	384,140

Key Income and Cash Flow Statement Statistics
(in ‘000 US dollars, except per share amounts)

		Three months ended				Six months ended
		June 30, 2020		June 30, 2019		June 30, 2020		June 30, 2019
General & administrative expense	$	6,582	$	1,021	$	11,789	$	3,765
Other (Income) expenses:
Finance (income) expense & other		(1,047)		(519)		630		103
Non-cash rehabilitiation accretion		516		418		1,041		856
Non-cash (gain) loss on debenture modification		-		(10)		-		2,004
Loss for the period:		6,051		910		13,460		6,728
Loss per share		0.01		0.00		0.01		0.02
Cash used in investing activities:
NorthMet property	$	2,450	$	4,488	$	5,003	$	10,209

Weighted average shares outstanding	1,006,383,162		344,737,881		1,006,132,963		333,456,972

Loss for the three months ended June 30, 2020, was $6.1 million compared with $0.9 million for the prior year period primarily due to additional studies related to engineering and further evaluation of the mineral resource.
Loss for the six months ended June 30, 2020, was $13.5 million compared with $6.7 million for the prior year period primarily due to additional studies related to engineering and further evaluation of the mineral resource.
PolyMet invested $2.5 million in cash into its NorthMet Project during the three months ended June 30, 2020, compared with $4.5 million for the prior year period due to lower capitalized spend following receipt of permits in March 2019.
PolyMet invested $5.0 million during the six months ended June 30, 2020, compared with $10.2 million in the prior year period due to lower capitalized spend following receipt of permits in March 2019.

About PolyMet

PolyMet is a mine development company that owns 100% of the NorthMet Project, the first large-scale project to be permitted within the Duluth Complex in northeastern Minnesota, one of the world’s major, undeveloped mining regions. NorthMet has significant proven and probable reserves of copper, nickel and palladium – metals vital to global carbon reduction efforts – in addition to marketable reserves of cobalt, platinum and gold. When operational, NorthMet will become one of the leading producers of nickel, palladium and cobalt in the U.S., providing a much needed, responsibly mined source of these critical and essential metals.

Located in the Mesabi Iron Range, the project will provide economic diversity while leveraging the region’s established supplier network and skilled workforce, and generate a level of activity that will have a significant effect in the local economy. For more information: www.polymetmining.com.

PolyMet Disclosures

This news release contains certain forward-looking statements concerning anticipated developments in PolyMet’s operations in the future. Forward-looking statements are frequently, but not always, identified by words such as “expects,” “anticipates,” “believes,” “intends,” “estimates,” “potential,” “possible,” “projects,” “plans,” and similar expressions, or statements that events, conditions or results “will,” “may,” “could,” or “should” occur or be achieved or their negatives or other comparable words. These forward-looking statements may include statements regarding the ability to receive environmental and operating permits, job creation, and the effect on the local economy, or other statements that are not a statement of fact. Forward-looking statements address future events and conditions and therefore involve inherent known and unknown risks and uncertainties. Actual results may differ materially from those in the forward-looking statements due to risks facing PolyMet or due to actual facts differing from the assumptions underlying its predictions.

PolyMet’s forward-looking statements are based on the beliefs, expectations and opinions of management on the date the statements are made, and PolyMet does not assume any obligation to update forward-looking statements if circumstances or management’s beliefs, expectations and opinions should change.

Specific reference is made to risk factors and other considerations underlying forward-looking statements discussed in PolyMet’s most recent Annual Report on Form 40-F for the fiscal year ended December 31, 2019, and in our other filings with Canadian securities authorities and the U.S. Securities and Exchange Commission.

The Annual Report on Form 40-F also contains the company’s mineral resource and other data as required under National Instrument 43-101.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contacts

Media
Bruce Richardson
Corporate Communications
Tel: +1 (651) 389-4111
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Investor Relations
Tony Gikas
Investor Relations
Tel: +1 (651) 389-4110
This email address is being protected from spambots. You need JavaScript enabled to view it.

: Business Wire; Posted On Aug 07, 2020

Advanced Energy Introduces Innovative, Five-Output Power Supply for Solar PV Manufacturing Industry

Ascent MS optimizes power delivery and lowers costs for crystalline silicon PECVD processes in the production of solar cells

DENVER--(BUSINESS WIRE)--Advanced Energy (Nasdaq: AEIS) – a global leader in highly engineered, precision power conversion, measurement and control solutions – today introduces its new industry-leading Ascent^® MS multi-output power supply system. Designed to enable the lowest system and infrastructure costs in the industry for solar photovoltaic (PV) plasma-enhanced chemical vapor deposition (PECVD) systems, the Ascent MS builds on Advanced Energy’s long legacy of bringing power system innovation to the manufacturing of advanced solar cells.

The Ascent MS supports up to five independent chambers of passivated emitter and rear contact (PERC) PECVD processes in a single unit, optimizing power delivery and simplifying the deposition system design. The power system’s quick-connect power outputs, single point of control and minimized need for water and input power connections make for an optimized coater infrastructure. This enables faster coater installation, higher manufacturing line reliability and lower cost per coater. By supporting multiple tubes, the Ascent MS allows solar PV equipment manufacturers to develop more cost-effective systems that require less electrical and mechanical infrastructure than existing solutions.

“The manufacturing of PERC solar cells is an exceptionally competitive market,” said Dave McAninch, director of strategic marketing, Advanced Energy. “Our Ascent MS takes the economics of power delivery to a new level by delivering a system-level solution designed specifically for today's market needs."

PERC has become the dominant solar cell technology shipped in the past few years and has driven down the levelized cost of energy (LCOE) significantly. By providing the industry with system solutions that continue to deliver better economics to the market, Advanced Energy has long been a leader in the solar PV manufacturing equipment market and is well-positioned to meet the evolving technology demands of the solar cell market, including heterojunction with intrinsic thin-layer technology (HIT), with a broad portfolio of market-leading solutions, including RF, AC, DC and remote plasma source technologies.

Features of the Ascent MS include:

Up to five outputs per power system
15kW, 20kW, 30kW models to meet the evolution in PERC technology and manufacturing
Single point of communication, water, I/O and AC power input for all five power outputs
Independent ON/OFF times, arc parameters and setpoints for each output
Modular power connectors for rapid installation

For detailed technical specifications, visit https://www.advancedenergy.com/products/plasma-power-generators/low-mid-frequency-power-systems/ascent-ms/.

About Advanced Energy

Advanced Energy (Nasdaq: AEIS) is a global leader in the design and manufacturing of highly engineered, precision power conversion, measurement and control solutions for mission-critical applications and processes. AE’s power solutions enable customer innovation in complex applications for a wide range of industries including semiconductor equipment, industrial, manufacturing, telecommunications, data center computing and healthcare. With engineering know-how and responsive service and support around the globe, the company builds collaborative partnerships to meet technology advances, propel growth for its customers and innovate the future of power. Advanced Energy has devoted more than three decades to perfecting power for its global customers and is headquartered in Denver, Colorado, USA. For more information, visit www.advancedenergy.com.

Advanced Energy | Precision. Power. Performance.

Contacts

Lora Wilson
Global Results Communications for Advanced Energy Industries, Inc.
This email address is being protected from spambots. You need JavaScript enabled to view it.
+1 949.306.0276

: Business Wire; Posted On Aug 07, 2020

Geospace Technologies Reports Fiscal Year 2020 Third Quarter and Nine-Months Results

HOUSTON--(BUSINESS WIRE)--Geospace Technologies (NASDAQ: GEOS) (the “Company”) today announced a net loss of $2.3 million, or $0.17 per diluted share, on revenue of $22.7 million for its third quarter ended June 30, 2020. This compares to a net loss of $3.7 million, or $0.27 per diluted share, on revenues of $22.9 million for the third quarter of the prior year.

For the nine months ended June 30, 2020, the Company recorded revenue of $66.3 million compared to revenue of $66.9 million during the prior year period. The Company reported a net loss of $15.4 million, or $1.14 per diluted share compared to a net loss of $8.8 million, or $0.66 per diluted share for the prior year period.

Walter R. (“Rick”) Wheeler, President and CEO of Geospace Technologies (the “Company”) said, “We are pleased to report that our employees, as well as third quarter operations were minimally impacted by COVID-19, the pandemic that has gripped both our country and the worldwide markets. To date, our heightened safety protocols have created a safe working environment for our employees and proved effective as our valued staff has been minimally impacted by the pandemic. Moreover, while our operations have not escaped the full brunt of the negative impact of the coronavirus, we are pleased to report that our revenue for the three-and nine-month periods ended June 30, 2020 totaled $22.7 million and $66.3 million respectively, similar to last year’s three-and nine-month totals.”

Wheeler further noted, “Continued strong demand for our ocean-bottom marine nodal recording systems fueled both our third quarter and nine-month results. Increased demand for these systems further countered some of the weakness we experienced in other parts of our oil and gas segments as well as in our adjacent markets business, each of which were negatively impacted by the effects of COVID-19. Not included in reported revenue are additional timely payments of $3.8 million received from a customer through the third quarter of fiscal year 2020 toward its promissory note securing the purchase of a 30,000 channel GCL land recording system. These paid-in amounts are included on the balance sheet as part of non-current deferred revenue and are intended to be recognized as revenue at a later date when collection of the note is determined to be likely.”

Oil and Gas Markets Segment

For the three months ended June 30, 2020, revenue from the Company’s oil and gas markets segment totaled $17.5 million, an increase of $3.1 million, or 21% over last year’s same period. For the nine-month period similarly ended, revenue totaled $47.5 million, an increase of $3.3 million, or 8% compared to the equivalent nine months a year-ago. The increases in both periods are attributed to increased demand for the Company’s OBX ocean-bottom nodal recording systems, partially offset by reductions in demand for the Company’s other oil and gas segment product lines.

The Company’s traditional seismic products generated $1.2 million and $5.6 million respectively in the three- and nine-month periods ended June 30, 2020. Compared to the corresponding three- and nine-month periods a year ago, these figures reflect reductions of 46% and 38% respectively. The declines in revenue in both periods are attributed to lower demand for seismic sensors as a result of fewer seismic exploration and imaging projects being performed by oil and gas companies. Due to low oil prices, oversupplies of crude, and the large drop in global demand for oil and gas amidst the COVID-19 pandemic, revenue from these products is expected to remain challenged for the foreseeable future.

The Company’s wireless seismic products produced total revenue of $16.1 million and $41.1 million in the three- and nine-month periods ended June 30, 2020. This compares with $11.9 million and $32.8 million for the equivalent three- and nine-month periods last year, reflecting respective increases of 36% and 25%. In both periods, the increases are a direct result of expanded rentals of the Company’s OBX marine nodal recording systems, partially offset by lower sales of its wireless land products. As a reminder, the Company has not yet recorded any revenue from the delivery of the aforementioned 30,000 channel GCL system having a sales value of $12.5 million. Growth in demand for the Company’s OBX systems derives from a renewed focus by many oil and gas companies to better leverage existing offshore resources in the recovery of discovered nearby fields. The superior geological images afforded by ocean bottom seismic surveys, which often utilize the Company’s OBX systems, increase the likelihood of success in these endeavors. The frequency and extent of such surveys fluctuate with weather and seasonal changes and may also be negatively impacted by declines in global demand for oil and gas due to the COVID-19 pandemic.

The Company’s reservoir seismic products generated revenue of $271,000 and $826,000 respectively in the three- and nine-month periods ended June 30, 2020. This compares with $447,000 and $2.4 million in the respective year-ago three- and nine-month periods. The reductions in both periods are a consequence of lower sales of the Company’s borehole seismic tools and lesser demand for performed services. The Company believes that contracts for the manufacture and installation of permanent reservoir monitoring (PRM) systems hold the largest opportunity for meaningful revenue from this product category. Although the COVID-19 pandemic disrupted some discussions with oil and gas companies interested in such systems, most remained ongoing or have since resumed. Based on these discussions, management currently believes that a tender for a PRM system is likely to be released in calendar year 2020 or soon thereafter. Should such a tender occur, and a contract be subsequently awarded to Geospace, the Company would not expect to recognize revenue related to the contract until later in its 2021 fiscal year or beyond. Management further believes that its broad portfolio of PRM accomplishments and its diversity of PRM products, including both electrical and OptoSeis® fiber optic sensing technologies, maximize its ability to be awarded a released PRM tender.

Adjacent Markets Segment

The Company’s adjacent markets segment produced revenue of $5.1 million and $18.3 million in the three- and nine-month periods ended June 30, 2020. This compares with $8.2 million and $22.1 million for the corresponding three- and nine-month periods a year ago and reflects a reduction of 38% and 17% respectively. The reductions in both periods are the result of lower demand for the Company’s industrial sensors and contract manufacturing services, as well as lower sales of the Company’s graphic imaging film products. In addition, lower demand for the Company’s water meter connectors and cables further contributed to the reduction over the reported three-month period. In all cases, the Company believes that lower demand for these products is primarily attributed to the economic impact of the COVID-19 pandemic on its customers.

Emerging Markets Segment

The Company’s emerging markets segment generated revenue of $88,000 and $557,000 respectively for the three- and nine-month periods ended June 30, 2020. This compares with $11,000 and $145,000 for the similar three- and nine-month periods of the previous year. The increase in the three months period is due to revenue recognition from site preparation and engineering efforts related to the U.S. Customs and Border Protection, U.S. Border Patrol contract. The increase in the nine-month period is further attributable to the sale of border and perimeter security products to a commercial customer. In April 2020, the Company’s Quantum subsidiary was awarded a $10 million contract to provide a technology solution to the Department of Homeland Security for the U.S. Customs and Border Protection, U.S. Border Patrol. Current execution of the contract is progressing on schedule. However, the Company does not expect significant revenue from the contract until the first quarter of its 2021 fiscal year, ending December 31, 2020. The acquisition of Quantum represents a key strategy of the Company to leverage its core competencies in the design and manufacture of seismic acoustic technology in combination with advanced analytics to create products that expand revenue from diversified markets apart from its oil and gas segment.

Revision of Fiscal Year 2020 Q1 and Q2 Results

In its Form 10-Q for the quarter ended June 30, 2020 and in the financial statements contained herein, The Company corrected an accounting error in its consolidated financial statements for the quarterly periods ended December 31, 2019 and March 31, 2020. The financial information for the nine months ended June 30, 2020 was adjusted to reflect the correction of the accounting error. Specifically, the accounting error relates to the recording of an $8.0 million reserve against an operating lease receivable. The Company has determined in accordance with recently changed accounting guidance, when collection of an operating lease revenue is less than probable, rental revenue is limited to the amount of cash collected to date. Accordingly, the Company must record a reserve against any existing operating lease receivables as a charge to, or reduction of, rental revenue in the same period. The Company reported its December 31, 2019 Form 10-Q that collection of future operating lease revenue was less than probable; however, the Company, failed to record the reversal of the $8.0 million operating lease receivable in the same period. The Company subsequently reported the impairment of the operating lease receivable in its March 31, 2020 Form 10-Q, but incorrectly recorded the adjustment as a charge to bad debt expense and not as a reduction to rental revenue. There is no effect on the previously reported net loss for the six months period ended March 31, 2020. In the future the Company will adjust its accounting for operating leases as directed in the accounting guidance.

Balance Sheet and Liquidity

Over the nine months ended June 30, 2020, Geospace generated $12.4 million in cash and cash equivalents from operating activities. The Company used $4.5 million of cash for investment activities that included (i) $5.4 million invested in its rental equipment primarily to expand its OBX rental fleet, and (ii) $2.6 million for additions to property, plant, and equipment. These uses were partially offset by (i) $3.3 million of proceeds for the sale of rental equipment, and (ii) $0.2 million of proceeds from the sale of property, plant, and equipment. As of June 30, 2020, the Company had $26.7 million in cash, cash equivalents, and short-term investments, and maintained an additional borrowing availability of $17.9 million under its bank credit agreement with no borrowings outstanding. Thus, as of June 30, 2020, the Company’s total liquidity stood at $44.6 million. The Company additionally owns unencumbered property and real estate in both domestic and international locations.

Subsequent Events

In July 2020, the Company initiated actions to reduce its operating costs in light of decreased demand for products in its Oil and Gas Markets and Adjacent Markets segments. The cost reductions were primarily realized through a reduction of approximately 100 employees from the Company’s workforce and a reduction in the cash compensation of named executives and Company directors. In connection with the workforce reduction, the Company will incur approximately $0.8 million of termination costs in the fourth quarter of fiscal year 2020. The termination costs will be included as a component of both cost of revenue and operating expenses in the Company’s consolidated statement of operations. The Company expects it will realize annual savings of $ 2.0 million or more as a result of the cost cutting measures.

Wheeler concluded, “As the world grapples with all the ramifications of COVID-19, demand for certain products in our oil and gas and adjacent markets segments will continue to be negatively impacted. Curtailed travel and social activities, combined with lower factory outputs, will continue to keep global energy demands at below normal levels. Thus, continued balancing of supplies and pricing poses ongoing challenges to the oil and gas companies and energy service providers who are our major customers. However, we believe that our products serving this market stand out as the preferred instruments of choice within a recovering energy market. In addition, we believe our executed diversification strategy is already demonstrating successful mitigation of the volatility in our oil and gas markets segment, as evidenced by our contract with U.S. Border Patrol. Furthermore, we believe our recent cost reduction efforts and our longstanding financial discipline keep us optimally positioned to thrive in a post COVID-19 world ahead.”

Conference Call Information

Geospace Technologies will host a conference call to review its fiscal year 2020 third quarter financial results on August 7, 2020 at 10:00 a.m. Eastern Time (9 a.m. Central). Participants can access the call at (877) 876-9173 (US) or (785) 424-1667 (International). Please reference the conference ID: GEOSQ320 prior to the start of the conference call. A replay will be available for approximately 60 days and may be accessed through the Investor tab of our website at www.geospace.com.

About Geospace Technologies

Geospace principally designs and manufactures seismic instruments and equipment. These seismic products are marketed to the oil and gas industry and used to locate, characterize and monitor hydrocarbon producing reservoirs. We also market our seismic products to other industries for vibration monitoring, border and perimeter security and various geotechnical applications. We design and manufacture other products of a non-seismic nature, including water meter products, imaging equipment and offshore cables.

Forward Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can be identified by terminology such as “may”, “will”, “should”, “could”, “intend”, “expect”, “plan”, “budget”, “forecast”, “anticipate”, “believe”, “estimate”, “predict”, “potential”, “continue”, “evaluating” or similar words. Statements that contain these words should be read carefully because they discuss our future expectations, contain projections of our future results of operations or of our financial position or state other forward-looking information. Examples of forward-looking statements include, among others, statements that we make regarding our expected operating results, the results and success of our transactions with Quantum and the OptoSeis^® technology, the adoption and sale of our products in various geographic regions, potential tenders for PRM systems, future demand for OBX systems, the completion of new orders for channels of our GCL system, the fulfillment of customer payment obligations, the impact of the coronavirus (or COVID-19) pandemic, the Company’s ability to manage changes and the continued health or availability of management personnel, volatility and direction of oil prices, anticipated levels of capital expenditures and the sources of funding therefore, and our strategy for growth, product development, market position, financial results and the provision of accounting reserves. These forward-looking statements reflect our current judgment about future events and trends based on the information currently available to us. However, there will likely be events in the future that we are not able to predict or control. The factors listed under the caption “Risk Factors” and elsewhere in our most recent Annual Report on Form 10-K, which is on file with the Securities and Exchange Commission, as well as other cautionary language in any subsequent Quarterly Report on Form 10-Q, or in our other periodic reports, provide examples of risks, uncertainties and events that may cause our actual results to differ materially from the expectations we describe in our forward-looking statements. Such examples include, but are not limited to, the failure of the Quantum or OptoSeis^® technology transactions to yield positive operating results, decreases in commodity price levels, including risks related to the recent collapse in oil prices, which could reduce demand for our products, the failure of our products to achieve market acceptance, despite substantial investment by us, our sensitivity to short term backlog, delayed or cancelled customer orders, product obsolescence resulting from poor industry conditions or new technologies, bad debt write-offs associated with customer accounts, lack of further orders for our OBX systems, failure of our Quantum products to be adopted by the border and security perimeter market, infringement or failure to protect intellectual property. The occurrence of the events described in these risk factors and elsewhere in our most recent Annual Report on Form 10-K or in our other periodic reports could have a material adverse effect on our business, results of operations and financial position, and actual events and results of operations may vary materially from our current expectations. We assume no obligation to revise or update any forward-looking statement, whether written or oral, that we may make from time to time, whether as a result of new information, future developments or otherwise.

GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share amounts) (unaudited)

	Three Months Ended						Nine Months Ended
	June 30, 2020			June 30, 2019			June 30, 2020			June 30, 2019
Revenue:
Products	$	6,975		$	12,153		$	25,575		$	34,457
Rental		15,728			10,720			40,740			32,414
Total revenue		22,703			22,873			66,315			66,871
Cost of revenue:
Products		8,660			10,508			28,285			32,967
Rental		5,979			4,775			19,564			12,873
Total cost of revenue		14,639			15,283			47,849			45,840

Gross profit		8,064			7,590			18,466			21,031

Operating expenses:
Selling, general and administrative		5,704			6,050			17,767			17,493
Research and development		4,014			4,246			12,535			11,315
Change in estimated fair value of contingent consideration		662			—			1,634			—
Bad debt expense		248			629			406			599
Total operating expenses		10,628			10,925			32,342			29,407

Loss from operations		(2,564	)		(3,335	)		(13,876	)		(8,376	)

Other income (expense):
Interest expense		(8	)		(28	)		(31	)		(85	)
Interest income		574			446			924			898
Foreign exchange gains (losses), net		307			(1	)		283			185
Other, net		(21	)		(54	)		(78	)		(183	)
Total other income, net		852			363			1,098			815

Loss before income taxes		(1,712	)		(2,972	)		(12,778	)		(7,561	)
Income tax expense		573			700			2,600			1,257
Net loss	$	(2,285	)	$	(3,672	)	$	(15,378	)	$	(8,818	)

Loss per common share:
Basic	$	(0.17	)	$	(0.27	)	$	(1.14	)	$	(0.66	)
Diluted	$	(0.17	)	$	(0.27	)	$	(1.14	)	$	(0.66	)

Weighted average common shares outstanding:
Basic		13,545,340			13,405,504			13,517,387			13,381,789
Diluted		13,545,340			13,405,504			13,517,387			13,381,789

GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands except share amounts) (unaudited)

	June 30, 2020			September 30, 2019
ASSETS
Current assets:
Cash and cash equivalents	$	26,669		$	18,925
Trade accounts and financing receivables, net		14,619			27,426
Inventories		21,531			23,855
Property held for sale		603			—
Prepaid expenses and other current assets		1,426			1,008
Total current assets		64,848			71,214

Non-current inventories		13,581			21,524
Rental equipment, net		58,571			62,062
Property, plant and equipment, net		30,511			31,474
Goodwill		5,008			5,008
Other intangible assets, net		8,764			10,063
Deferred cost of revenue and other assets		8,108			663
Total assets	$	189,391		$	202,008

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable trade	$	2,394		$	4,051
Deferred revenue and other current liabilities		7,172			9,119
Total current liabilities		9,566			13,170

Contingent consideration		11,574			9,940
Non-current deferred revenue and other liabilities		3,785			51
Total liabilities		24,925			23,161

Commitments and contingencies

Stockholders’ equity:
Preferred stock, 1,000,000 shares authorized, no shares issued and outstanding		—			—
Common stock, $.01 par value, 20,000,000 shares authorized, 13,664,614
13,630,666 shares issued and outstanding		137			136
Additional paid-in capital		90,342			88,660
Retained earnings		90,430			105,808
Accumulated other comprehensive loss		(16,443	)		(15,757	)
Total stockholders’ equity		164,466			178,847
Total liabilities and stockholders’ equity	$	189,391		$	202,008

GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited)

	Nine Months Ended
	June 30, 2020			June 30, 2019
Cash flows from operating activities:
Net loss	$	(15,378	)	$	(8,818	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Deferred income tax expense (benefit)		195			(22	)
Rental equipment depreciation		13,643			9,703
Property, plant and equipment depreciation		3,029			3,012
Amortization of intangible assets		1,299			1,228
Amortization of premiums on short-term investments		—			(9	)
Stock-based compensation expense		1,682			1,781
Bad debt expense		406			599
Inventory obsolescence expense		2,853			3,013
Change in estimate of collectability of rental revenue		7,993			—
Change in estimated fair value of contingent consideration		1,634			—
Gross profit from sale of used rental equipment		(698	)		(244	)
Gain on disposal of property, plant and equipment		(151	)		(90	)
Realized loss on short-term investments		—			66
Effects of changes in operating assets and liabilities:
Trade accounts and other receivables		2,059			(82	)
Inventories		898			(4,036	)
Deferred cost of revenue and other assets		(8,178	)		171
Accounts payable trade		(1,654	)		601
Deferred revenue and other liabilities		2,811			(740	)
Net cash provided by operating activities		12,443			6,133

Cash flows from investing activities:
Purchase of property, plant and equipment		(2,559	)		(1,426	)
Proceeds from the sale of property, plant and equipment		204			130
Investment in rental equipment		(5,448	)		(28,728	)
Proceeds from the sale of used rental equipment		3,258			3,388
Proceeds from the sale of short-term investments		—			25,606
Business acquisition		—			(1,819	)
Payments for damages related to insurance claim		—			(650	)
Proceeds from insurance claim		—			1,166
Net cash used in investing activities		(4,545	)		(2,333	)

Cash flows from financing activities:
Proceeds from the exercise of stock options		—			215
Net cash provided by financing activities		—			215

Effect of exchange rate changes on cash		(154	)		(351	)
Increase in cash and cash equivalents		7,744			3,664
Cash and cash equivalents, beginning of fiscal year		18,925			11,934
Cash and cash equivalents, end of fiscal period	$	26,669		$	15,598

SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	$	31		$	85
Cash paid for income taxes		2,454			1,249
Inventory transferred to rental equipment		6,220			1,810

Contacts

Rick Wheeler
President and CEO
TEL: 713.986.4444
FAX: 713.986.4445

Read full story here

: Business Wire; Posted On Aug 07, 2020

Bloom Energy Corporation Prices Upsized $200.0 Million Green Convertible Senior Notes Offering

SAN JOSE, Calif.--(BUSINESS WIRE)--Bloom Energy Corporation (NYSE: BE) today announced the pricing of its offering of $200.0 million aggregate principal amount of 2.50% green convertible senior notes due 2025 (the “notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The offering size was increased from the previously announced offering size of $135.0 million aggregate principal amount of notes. The issuance and sale of the notes is scheduled to settle on August 11, 2020, subject to customary closing conditions. Bloom Energy also granted the initial purchaser of the notes an option to purchase, for settlement within a period of 13 days from, and including, the date notes are first issued, up to an additional $30.0 million principal amount of notes.

The notes will be senior, unsecured obligations of Bloom Energy and will accrue interest at a rate of 2.50% per annum, payable semi-annually in arrears on February 15 and August 15 of each year, beginning on February 15, 2021. The notes will mature on August 15, 2025, unless earlier repurchased, redeemed or converted. Before May 15, 2025, noteholders will have the right to convert their notes only upon the occurrence of certain events. From and after May 15, 2025, noteholders may convert their notes at any time at their election until the close of business on the second scheduled trading day immediately before the maturity date. Bloom Energy will settle conversions by paying or delivering, as applicable, cash, shares of its Class A common stock or a combination of cash and shares of its Class A common stock, at Bloom Energy’s election. The initial conversion rate is 61.6808 shares of Class A common stock per $1,000 principal amount of notes, which represents an initial conversion price of approximately $16.21 per share of Class A common stock. The initial conversion price represents a premium of approximately 25.0% over the last reported sale price of $12.97 per share of Bloom Energy’s Class A common stock on August 6, 2020. The conversion rate and conversion price will be subject to adjustment upon the occurrence of certain events. If a “make-whole fundamental change” (as defined in the indenture for the notes) occurs, Bloom Energy will, in certain circumstances, increase the conversion rate for a specified time for holder who convert their notes in connection with that make-whole fundamental change.

The notes will be redeemable, in whole or in part, for cash at Bloom Energy’s option at any time, and from time to time, on or after August 21, 2023 and on or before the 26^th scheduled trading day immediately before the maturity date, but only if the last reported sale price per share of Bloom Energy’s Class A common stock exceeds 130% of the conversion price for a specified period of time. The redemption price will be equal to the principal amount of the notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. If Bloom Energy calls any or all notes for redemption, holders of notes called for redemption may convert their notes during the related redemption conversion period, and any such conversion will also constitute a “make-whole fundamental change” with respect to the notes so converted.

If a “fundamental change” (as defined in the indenture for the notes) occurs, then, subject to a limited exception, noteholders may require Bloom Energy to repurchase their notes for cash. The repurchase price will be equal to the principal amount of the notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the applicable repurchase date.

Bloom Energy estimates that the net proceeds from this offering will be approximately $193.1 million (or approximately $222.2 million if the initial purchaser exercises its option to purchase additional notes in full), after deducting the initial purchaser’s discounts and commissions and its estimated offering expenses. Bloom Energy intends to use (i) approximately $96.6 million of the net proceeds from this offering to offer to redeem a portion of its outstanding 10% Convertible Promissory Notes due 2021 (assuming no exercise of the initial purchaser’s option to purchase additional notes), and (ii) approximately $82.2 million of the net proceeds from this offering to redeem its outstanding 10% Senior Secured Notes due 2024. Bloom Energy intends to use the remainder of the net proceeds of this offering for other business purposes, including research and development and sales and marketing activities, general and administrative matters and capital expenditures. Pursuant to the indenture governing the 10% Convertible Promissory Notes due 2021, Bloom Energy is required to use 50% of the net proceeds from this offering to offer to redeem the 10% Convertible Promissory Notes due 2021. Because holders can convert the 10% Convertible Promissory Notes due 2021 prior to the redemption date or can decline to have such notes redeemed in connection with such redemption offer, Bloom Energy may not use the entire amount of approximately $96.6 million to redeem the 10% Convertible Promissory Notes due 2021, in which case Bloom Energy will use any additional proceeds for other business purposes as noted above.

In addition, Bloom Energy intends to allocate an amount equal to the net proceeds to refinance or finance, in whole or in part, new or on-going renewable projects that meet the “Eligibility Criteria” (as defined in the offering disclosure in respect of the notes).

The offer and sale of the notes and any shares of Class A common stock issuable upon conversion of the notes have not been, and will not be, registered under the Securities Act or any other securities laws, and the notes and any such shares cannot be offered or sold except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and any other applicable securities laws. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, the notes or any shares of Class A common stock issuable upon conversion of the notes, nor will there be any sale of the notes or any such shares, in any state or other jurisdiction in which such offer, sale or solicitation would be unlawful.

About Bloom Energy

Bloom Energy’s mission is to make clean, reliable energy affordable for everyone in the world. Bloom Energy’s product, the Bloom Energy Server, delivers highly reliable and resilient, always-on electric power that is clean, cost-effective, and ideal for microgrid applications. Bloom’s customers include many Fortune 100 companies and leaders in manufacturing, data centers, healthcare, retail, higher education, utilities, and other industries.

Forward-Looking Statements

This press release includes forward-looking statements, including statements regarding the completion of the offering and the expected amount and intended use of the net proceeds. Forward-looking statements represent Bloom Energy’s current expectations regarding future events and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those implied by the forward-looking statements. Among those risks and uncertainties are market conditions, the satisfaction of the closing conditions related to the offering and risks relating to Bloom Energy’s business, including those described in periodic reports that Bloom Energy files from time to time with the Securities Exchange Commission. Bloom Energy may not consummate the offering described in this press release and, if the offering is consummated, cannot provide any assurances regarding its ability to effectively apply the net proceeds as described above. The forward-looking statements included in this press release speak only as of the date of this press release, and Bloom Energy does not undertake to update the statements included in this press release for subsequent developments, except as may be required by law.

Contacts

Investor Relations:

Mark Mesler
Bloom Energy
+1 (408) 543-1743
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Media:

Erica Osian
Bloom Energy
+1 (401) 714-6883
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: Business Wire; Posted On Aug 07, 2020

Babcock & Wilcox to Webcast Discussion of Its Second Quarter 2020 Results

AKRON, Ohio--(BUSINESS WIRE)--$BW #BabcockWilcox--Babcock & Wilcox Enterprises, Inc. (NYSE:BW) (B&W or the “Company”) expects to host a conference call and webcast on Thursday, August 13, 2020 at 5 p.m. ET.

B&W Chief Executive Officer Kenneth Young and B&W Chief Financial Officer Louis Salamone will discuss the Company’s second quarter 2020 results. A news release detailing the results is expected to be issued before the market opens on Thursday, August 13, 2020.

The listen-only audio of the conference call will be broadcast live via the Internet on B&W’s Investor Relations site. The dial-in number for participants in the U.S. is (833) 513-0549; the dial-in number for participants outside the U.S. is (778) 560-2572. The conference ID for all participants is 7096328. A replay of this conference call will remain accessible in the investor relations section of the Company's website for a limited time.

About B&W

Headquartered in Akron, Ohio, Babcock & Wilcox is a global leader in energy and environmental technologies and services for the power and industrial markets. Follow us on Twitter @BabcockWilcox and learn more at www.babcock.com.

Contacts

Investor Contact:
Megan Wilson
Vice President, Corporate Development & Investor Relations
Babcock & Wilcox
704.625.4944
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Media Contact:
Ryan Cornell
Public Relations
Babcock & Wilcox
330.860.1345
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: Business Wire; Posted On Aug 07, 2020

NW Natural Holdings Reports Second Quarter and Year-to-Date 2020 Results

PORTLAND, Ore.--(BUSINESS WIRE)--Northwest Natural Holding Company, (NYSE: NWN) (NW Natural Holdings), reported financial results and highlights including:

Reported a net loss of $0.17 per share from continuing operations for the second quarter of 2020, compared to net income of $0.07 per share for the same period in 2019 reflecting the financial effects of the coronavirus pandemic (COVID-19) and the reversal of an environmental reserve in 2019
Earned net income of $1.41 per share from continuing operations for the first six months of 2020, compared to earnings of $1.56 per share and adjusted earnings¹ of $1.79 per share for the same period in 2019
Continued to provide customers with essential natural gas and water utility services and assist our most vulnerable community members during COVID-19
Provided a record $17.1 million credit to Oregon customers related to a revenue sharing mechanism
Added more than 13,000 natural gas meters over the last 12 months equating to a 1.7% growth rate
Completed rulemaking for Senate Bill 98 enabling our gas utility to procure renewable natural gas for customers
Filed a comprehensive all-party stipulation in Oregon general rate case
Reaffirmed 2020 GAAP earnings guidance from continuing operations in the range of $2.25 to $2.45 per share and guided toward the lower end of the range given potential effects from COVID-19

"We remain vigilant during this pandemic regarding the safety of our 1,200 employees and the 2.5 million people, businesses, and communities we serve. I want to extend my gratitude to our health care professionals and our employees for their dedication as they provide essential services during these unprecedented times,” said David H. Anderson, president and CEO of NW Natural Holdings.

For the second quarter of 2020, net income from continuing operations decreased $7.2 million to a net loss of $5.1 million (or $0.17 per share), compared to net income from continuing operations of $2.1 million (or $0.07 per share) for the same period in 2019. Results reflected a prior period reversal of an environmental remediation expense reserve which benefited earnings in 2019, higher operations and maintenance expenses, and the financial effects resulting from COVID-19 including a reduction in late fee revenue, higher bad debt and interest expense, and lower industrial and large commercial business usage.

Year-to-date net income from continuing operations decreased $2.3 million to $43.1 million (or $1.41 per share), compared to $45.5 million (or $1.56 per share) for the same period in 2019. Results for 2019, included a regulatory pension disallowance of $10.5 million (or $6.6 million after-tax and $0.23 per share). Excluding this disallowance on a non-GAAP basis¹, adjusted net income from continuing operations for 2019 was $52.1 million (or $1.79 per share) or a $8.9 million decline to net income of $43.1 million for the first six months of 2020. Results reflected an increase in operations and maintenance expense and the financial effects resulting from COVID-19 including a reduction in late fee revenue, higher bad debt and interest expense, and lower industrial and large commercial business usage.

______________

1	Adjusted 2019 metrics are non-GAAP financial measures and exclude the regulatory pension disallowance of $10.5 million pre-tax (or $6.6 million and $0.23 cents per share after-tax). See "Reconciliation to GAAP" for additional information.

KEY EVENTS AND INITIATIVES

Coronavirus (COVID-19) Implications

NW Natural Holdings continues to operate during the COVID-19 pandemic with a focus on the safety of our employees and customers, while providing essential services without interruption. We continue to follow information and standards from CDC, OSHA, and state-specific guidance for employees whose role requires them to work in the field. Nearly all of our office employees continue to work from home to limit the spread of the disease.

The onset of the pandemic coincided with the end of our heating season, and as expected we've seen gas utility volumes decline naturally in the second quarter as we enter the summer months. We continue to benefit from our resilient business model with about 87% of our natural gas utility margin coming from the residential and commercial sectors and a majority of our utility margin decoupled and weather normalized. Customer growth remained strong during the second quarter. In March 2020, we stopped charging late fees and disconnecting customers for nonpayment. Bad debt expense is higher than the prior period as we estimate the effects of COVID-19 on accounts receivable. Interest expense increased as a result of additional financings in March 2020 that were undertaken as a precaution to strengthen our liquidity position as the pandemic unfolded. For the first six months of 2020, we estimate the financial impacts related to COVID-19 to be approximately $5 million pre-tax or $4 million after-tax.

Renewable Natural Gas (RNG) Rulemaking Complete

In July 2020, the Public Utility Commission of Oregon (OPUC) issued final rules related to Senate Bill 98 (SB 98) enabling natural gas utilities to procure or develop renewable natural gas (RNG) on behalf of their Oregon customers. Renewable natural gas is produced from organic materials like food, agricultural and forestry waste, wastewater, and landfills. Methane is captured from these organic materials as they decompose and conditioned to pipeline quality, so it can be blended into the existing natural gas system thereby reducing the carbon content of the energy supply. SB 98 supports all forms of renewable natural gas including renewable hydrogen.

The RNG rules and legislation include the following key tenets: establishes targets for gas utilities to add as much as 30% of RNG into the state's pipeline system by 2050; enables gas utilities to invest in and own the cleaning and conditioning equipment required to bring raw biogas and landfill gas up to pipeline quality, as well as the facilities to connect to the local gas distribution system; and provides for an incremental 5% of a utility's revenue requirement to cover the cost of RNG.

“We're pleased to collaborate with regulators and policymakers on this groundbreaking program and are proud that Oregon is once again leading the nation to address climate change with pragmatic solutions that support renewable energy, close the loop on waste, and invest in our communities,” said David H. Anderson.

All-Party Stipulation Filed in Oregon Rate Case

On July 31, 2020, NW Natural and all parties in the Oregon general rate case filed a comprehensive stipulation with the OPUC. The filing includes a $45.8 million increase in revenue requirement, compared to a requested $71.4 million. The stipulation is based on the previously settled capital components including a capital structure of 50% debt and 50% equity; a return on equity of 9.4%; and a cost of capital of 6.965%. In addition, the stipulation reflects average rate base of $1.45 billion or an increase of $248.9 million compared to the last rate case. NW Natural’s filing is subject to OPUC approval and if approved, new rates are expected to take effect Nov. 1, 2020.

Water Utilities and Acquisitions

To date in 2020, NW Natural Water Company, LLC (NW Natural Water) has closed the following acquisitions: the Suncadia water and wastewater utilities in Washington, the T&W water utility in Texas, a water utility with two systems in Northern Idaho near our existing Gem State footprint, and our first water utility acquisition in the municipal sector with water and wastewater utilities near our Falls Water, Idaho systems. In July 2020, NW Natural Water signed a purchase and sale agreement to acquire another utility near Idaho Falls, which is expected to close in 2020.

NW Natural Water currently serves about 62,000 people through about 25,000 connections in the Pacific Northwest and Texas. NW Natural Water has invested approximately $110 million in the water sector to date.

SECOND QUARTER RESULTS

The following financial comparisons are for the second quarter of 2020 and 2019 with individual year-over-year drivers below presented on an after-tax basis using a statutory tax rate of 26.5% unless otherwise noted.

NW Natural Holdings' second quarter results are summarized by business segment in the table below:

	Three Months Ended June 30,
	2020						2019				Change
In thousands, except per share data	Amount			Per Share			Amount		Per Share		Amount			Per Share
Net income (loss) from continuing operations:
Natural Gas Distribution segment	$	(6,347	)	$	(0.21	)	$	1,212	$	0.04	$	(7,559	)	$	(0.25	)
Other	1,215			0.04			839		0.03		376			0.01
Consolidated	$	(5,132	)	$	(0.17	)	$	2,051	$	0.07	$	(7,183	)	$	(0.24	)

Diluted Shares				30,537					29,394					1,143

Natural Gas Distribution Segment

Natural Gas Distribution segment net income decreased $7.6 million (or $0.25 per share) reflecting a prior period reversal of an environmental remediation expense reserve which benefited earnings in 2019, higher operations and maintenance expenses related to payroll and contractor costs, and the financial effects of COVID-19 including a reduction in late fee revenue, higher bad debt and interest expense, and lower industrial and large commercial usage, which are not covered by a decoupling mechanism.

Margin decreased $1.0 million reflecting higher environmental remediation expenses due to a reversal of a reserve in 2019, partially offset by contributions from new rates in Washington, customer growth of 1.7% over the last 12 months, and North Mist beginning storage services in May 2019. In addition, margin declined as a result of lower revenues from late fees as we suspended late fees during the COVID-19 pandemic and lower usage from industrial and large commercial customers.

Operations and maintenance expense increased $2.8 million as a result of higher compensation costs, contractor service expenses associated with safety activities including meter locates and pipeline integrity as well as moving to a new headquarter and operations center, and higher costs related to COVID-19 primarily related to bad debt expenses and personal protective equipment (PPE) supplies.

Depreciation expense and general taxes increased $2.3 million related to higher property, plant, and equipment, including our North Mist gas storage facility.

Interest expense increased $1.1 million related to several financings undertaken in March 2020 as a precautionary measure to strengthen our liquidity position as the pandemic unfolded.

YEAR-TO-DATE RESULTS

The following financial comparisons are for the first six months of 2020 and 2019 with individual year-over-year drivers below presented on an after-tax basis using a statutory tax rate of 26.5% unless otherwise noted. Non-GAAP financial measures exclude the effects of the regulatory pension disallowance in 2019 as these adjusted metrics provide a clearer view of operations, reflect how Management views financial results, and provide comparability to prior year results. See "Reconciliation to GAAP" for a detailed reconciliation of adjusted amounts.

Financial Implications of March 2019 Regulatory Order

In March 2019, NW Natural received a regulatory order from the OPUC that outlined the recovery of a pension balancing deferral, a disallowance of a portion of this deferral, and the application of tax reform benefits.

NW Natural recognized a $10.5 million pre-tax (or $6.6 million after-tax) regulatory disallowance for amounts in the pension balancing account. This resulted in $3.9 million pre-tax ($2.8 million after-tax) of additional operations and maintenance expense, $6.6 million of pre-tax ($4.9 million after-tax) other expense, and an offsetting tax benefit of $3.9 million. In addition, as a result of beginning collections of the pension balancing account, $3.8 million of regulatory interest income ($2.8 million after-tax) was recognized related to the equity interest component of financing costs on the pension balancing account.

The order required the application of tax reform benefits to the pension balancing deferral account in March 2019, which resulted in the following offsetting adjustments with no material effect on net income:

$7.1 million pre-tax ($5.2 million after-tax) increase in margin;
$4.6 million pre-tax ($3.4 million after-tax) increase in operations and maintenance expense;
$7.9 million pre-tax ($5.8 million after-tax) increase in other expense; and
$5.9 million decrease in income tax expense.

NW Natural Holdings' year-to-date results are summarized by business segment in the table below:

	Six Months Ended June 30,
	2020				2019				Change
In thousands, except per share data	Amount		Per Share		Amount		Per Share		Amount			Per Share
Net income from continuing operations:
Natural Gas Distribution segment	$	41,596	$	1.36	$	42,418	$	1.45	$	(822	)	$	(0.09	)
Regulatory pension disallowance, net	—		—		6,588		0.23		(6,588		)	(0.23		)
Adjusted Natural Gas Distribution segment¹	$	41,596	$	1.36	$	49,006	$	1.68	$	(7,410	)	$	(0.32	)

Other	$	1,548	$	0.05	$	3,051	$	0.11	$	(1,503	)	$	(0.06	)

Consolidated	$	43,144	$	1.41	$	45,469	$	1.56	$	(2,325	)	$	(0.15	)
Adjusted Consolidated¹	43,144		1.41		52,057		1.79		(8,913		)	(0.38		)

Diluted Shares			30,559				29,186					1,373

The 2019 adjusted natural gas distribution segment and adjusted consolidated net income from continuing operations are non-GAAP financial measures and exclude the effects of a regulatory disallowance of NW Natural's pension balancing account of $10.5 million pre-tax (or $6.6 million after-tax). See "Reconciliation to GAAP" for additional information.

Natural Gas Distribution Segment

Natural Gas Distribution segment net income decreased $0.8 million (or $0.09 per share). First quarter 2019 results include a $6.6 million non-cash after-tax regulatory disallowance of costs in NW Natural's pension balancing account. Excluding the effects of this disallowance, net income decreased $7.4 million (or $0.32 per share) reflecting higher operations and maintenance expense, depreciation expense, and the financial effects of COVID-19 including lower revenues from late fees, higher bad debt and interest expense, and slightly lower industrial customer usage. Earnings per share was affected by share issuances in June 2019.

Margin increased $0.1 million as higher rates in Washington, customer growth of 1.7% over the last 12 months, and beginning North Mist storage services collectively contributed $10.1 million to margin, offset by $4.9 million related to lower entitlement and curtailment fees as the first quarter of 2019 included fees related to pipeline constraints and the effect of warmer than average weather in the first six months of 2020 compared to the same period in 2019. Finally, as a result of the Oregon order related to pension as described above, margin decreased $5.2 million with no significant effect on net income as offsetting adjustments were recognized through expenses and income taxes.

Operations and maintenance expense increased $0.5 million as a result of 2019 incorporating several nonrecurring items related to the Oregon pension order described above, specifically a $2.8 million expense related to the disallowance of costs in the pension balancing account and $3.4 million of costs that were recognized with no significant effect on net income due to offsetting adjustments in margin and income taxes. Excluding these pension expenses, operations and maintenance expense increased $5.8 million related to higher compensation costs, contractor service expenses associated with safety activities including meter locates and pipeline integrity as well as moving to a new headquarter and operations center, and costs resulting from COVID primarily related to bad debt and PPE supplies.

Depreciation expense and general taxes increased $4.9 million related to higher property, plant, and equipment, including our North Mist gas storage facility.

Other expense, net decreased $7.4 million primarily due to several items related to the pension order in 2019 as described above including a $4.9 million expense related to the disallowance of costs in the pension balancing account, $5.8 million of costs that were offset with higher revenues and tax benefits in 2019, and $2.8 million of equity interest income recognized in 2019 when we began collecting deferred pension costs from customers.

Tax expense reflected a $5.9 million detriment related to implementing the March 2019 order described above; however, as this offset higher expense, there was no significant resulting effect on net income.

Other

Other net income decreased $1.5 million (or $0.06 per share) primarily reflecting lower asset management revenues as the prior year had additional optimization opportunities due to pipeline constraints during the first quarter of 2019.

BALANCE SHEET AND CASH FLOWS

During the first six months of 2020, the Company generated $159.5 million in operating cash flows and invested $122.3 million in utility capital expenditures and $37.9 million to acquire water and wastewater utilities. Net cash provided by financing activities was $128.3 million for the first six months of 2020 or an increase of $81.7 million compared to the same period in 2019 primarily due to several financings undertaken in March 2020 that strengthened our liquidity position as a precaution as the COVID-19 pandemic unfolded. At June 30, 2020, NW Natural Holdings held cash of $137.1 million.

2020 GUIDANCE

NW Natural Holdings reaffirmed 2020 earnings guidance from continuing operations in the range of $2.25 to $2.45 per share and guided toward the lower end of the range due to potential implications from COVID-19. This guidance assumes continued customer growth, average weather conditions, and no significant changes in prevailing regulatory policies, mechanisms, or outcomes, or significant local, state or federal laws, legislation or regulations. The expected sale of Gill Ranch and the related gain, and any operating loss associated with it, are not included in this guidance range, as they are, and are expected to continue to be, reported as Discontinued Operations.

DIVIDEND DECLARED

NW Natural Holdings' Board of Directors previously declared a quarterly dividend of 47.75 cents per share on NW Natural Holdings' common stock. The dividend is payable on August 14, 2020 to shareholders of record on July 31, 2020, reflecting an annual indicated dividend rate of $1.91 per share.

CONFERENCE CALL AND WEBCAST

As previously announced, NW Natural Holdings will host a conference call and webcast today to discuss its second quarter and year-to-date 2020 financial and operating results.

Date and Time:

Friday, August 7

8 a.m. PT (11 a.m. ET)

Phone Numbers:

United States:

Canada:

International:

1-866-267-6789

1-855-669-9657

1-412-902-4110

The call will also be webcast in a listen-only format for the media and general public and can be accessed at ir.nwnaturalholdings.com. A replay of the conference call will be available on our website and by dialing 1-877-344-7529 (U.S.), 1-855-669-9658 (Canada), and 1-412-317-0088 (international). The replay access code is 10145818.

ABOUT NW NATURAL HOLDINGS

Northwest Natural Holding Company, (NYSE: NWN) (NW Natural Holdings), is headquartered in Portland, Oregon, and through its subsidiaries has been doing business for over 160 years in the Pacific Northwest. It owns NW Natural Gas Company (NW Natural), NW Natural Water Company (NW Natural Water), and other business interests and activities.

NW Natural is a local distribution company that currently provides natural gas service to approximately 2.5 million people in more than 140 communities through nearly 770,000 meters in Oregon and Southwest Washington with one of the most modern pipeline systems in the nation. NW Natural consistently leads the industry with high J.D. Power & Associates customer satisfaction scores.

NW Natural Holdings’ subsidiaries own and operate 35 Bcf of underground gas storage capacity with NW Natural operating 20 Bcf in Oregon.

NW Natural Water provides water distribution and wastewater services to communities throughout the Pacific Northwest and Texas. NW Natural Water currently serves approximately 62,000 people through about 25,000 connections. Learn more about our water business at nwnaturalwater.com.

Additional information is available at nwnaturalholdings.com.

Forward-Looking Statements

This report, and other presentations made by NW Holdings from time to time, may contain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "anticipates," "assumes," "intends," "plans," "seeks," "believes," "estimates," "expects" and similar references to future periods. Examples of forward-looking statements include, but are not limited to, statements regarding the following: plans, objectives, assumptions, estimates, expectations, timing, goals, strategies, future events, investments, capital expenditures, targeted capital structure, risks, risk profile, stability, acquisitions and timing, completion and integration thereof, dispositions and timing, completion and outcomes thereof, global, national and local economies, customer and business growth, customer satisfaction ratings, weather, customer rates or rate recovery and the timing and magnitude of potential rate changes, environmental remediation cost recoveries, the water utility strategy and financial effects of the related pending water acquisitions, operating plans of third parties, financial results, including estimated income, availability and sources of liquidity, expenses, positions, revenues, returns, cost of capital, timing, and earnings and earnings guidance, dividends, performance, timing, outcome, or effects of regulatory proceedings or mechanisms or approvals including OPUC approval of the Oregon general rate case comprehensive stipulation, regulatory prudence reviews, anticipated regulatory actions or filings, accounting treatment of future events, effects of changes in laws or regulations, effects, extent, severity and duration of COVID-19 and resulting economic disruption, the impact of mitigating factors and other efforts to mitigate risks posed by its spread, ability of our workforce, customers or suppliers to operate or conduct business, COVID-19 expenses and cost recovery including through regulatory deferrals, impact on capital projects, governmental actions and timing thereof, including actions to reopen the economy, and other statements that are other than statements of historical facts.

Forward-looking statements are based on current expectations and assumptions regarding its business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual results may differ materially from those contemplated by the forward-looking statements. You are therefore cautioned against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future operational, economic or financial performance. Important factors that could cause actual results to differ ma

Contacts

Investor Contact:
Nikki Sparley
Phone: 503-721-2530
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Media Contact:
Melissa Moore
Phone: 503-220-2436
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Read full story here

: Business Wire; Posted On Aug 07, 2020

NGL Energy Partners LP Announces New Acreage Dedication for Produced Water Transportation and Disposal in the Northern Delaware Basin

TULSA, Okla.--(BUSINESS WIRE)--NGL Energy Partners LP (NYSE: NGL) (“NGL” or the “Partnership”) announced today that the Partnership signed a new long-term produced water transportation and disposal agreement with a leading independent producer operating in Eddy and Lea Counties within the Delaware Basin. This agreement includes a 10 year acreage dedication totaling approximately 10,000 acres and an additional area of mutual interest (AMI) for future growth. The producer currently has a 53,000 acre position within the AMI which includes all of Eddy and Lea counties in New Mexico. As it has with other recent dedications, the Partnership plans to use its existing infrastructure and significant disposal capacity to service this new contract. “We are pleased to announce this agreement that allows us to continue to grow with this customer as it develops its resource and increase our dedicated acreage portfolio in the Northern Delaware Basin,” said Doug White, EVP Water Solutions.

NGL owns and operates the largest integrated network of large diameter produced water pipelines, recycling facilities and disposal wells in the Northern Delaware Basin. The Partnership’s Water Solutions segment operates in a number of the most prolific crude oil and natural gas producing areas including the Delaware Basin in New Mexico and Texas, the Midland Basin in Texas, the DJ Basin in Colorado and the Eagleford Basin in Texas.

Forward-Looking Statements

Certain matters contained in this press release include “forward-looking statements.” All statements, other than statements of historical fact, included in this press release may constitute forward-looking statements. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot assure you that these expectations will prove to be correct. These forward-looking statements are subject to certain known and unknown risks and uncertainties, as well as assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements. Factors that might cause actual results to differ include, but are not limited to, the risk factors discussed from time to time in each of our documents and reports filed with the SEC.

Readers are cautioned not to place undue reliance on any forward-looking statements contained in this press release, which reflect management’s opinions only as of the date hereof. Except as required by law, we undertake no obligation to revise or publicly release the results of any revision to any forward-looking statements.

About NGL Energy Partners LP

NGL Energy Partners LP, a Delaware limited partnership, is a diversified midstream energy company that transports, stores, markets and provides other logistics services for crude oil, natural gas liquids and other products and transports, treats and disposes of produced water generated as part of the oil and natural gas production process. For further information, visit the Partnership’s website at www.nglenergypartners.com.

Contacts

NGL Energy Partners LP

Commercial:

Christian Holcomb, 303-815-1010
Senior Vice President & Chief Operating Officer – NGL Water Solutions
This email address is being protected from spambots. You need JavaScript enabled to view it.

Investor Relations:

Trey Karlovich, 918-481-1119
Executive Vice President & Chief Financial Officer
This email address is being protected from spambots. You need JavaScript enabled to view it.

Linda Bridges, 918-481-1119
Senior Vice President - Finance and Treasurer
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: Business Wire; Posted On Aug 07, 2020

Baker Hughes Announces July 2020 Rig Counts

HOUSTON & LONDON--(BUSINESS WIRE)--Baker Hughes (NYSE: BKR) announced today that the Baker Hughes international rig count for July 2020 was 743 down 38 from the 781 counted in June 2020, and down 419 from the 1,162 counted in July 2019. The international offshore rig count for July 2020 was 183, down 11 from the 194 counted in June 2020, and down 72 from the 255 counted in July 2019.

The average U.S. rig count for July 2020 was 255, down 19 from the 274 counted in June 2020, and down 700 from the 955 counted in July 2019. The average Canadian rig count for July 2020 was 32, up 14 from the 18 counted in June 2020, and down 89 from the 121 counted in July 2019.

The worldwide rig count for July 2020 was 1,030, down 43 from the 1,073 counted in June 2020, and down 1,208 from the 2,238 counted in July 2019.

July 2020 Rig Counts

		July 2020				June 2020			July 2019
	Land	Offshore	Total	Month Variance	Land	Offshore	Total	Land	Offshore	Total

Latin America	43	31	74	3	40	31	71	168	33	201
Europe	82	23	105	-5	85	25	110	148	52	200
Africa	55	1	56	-4	57	3	60	92	19	111
Middle East	277	38	315	-28	299	44	343	367	57	424
Asia Pacific	103	90	193	-4	106	91	197	132	94	226
International	560	183	743	-38	587	194	781	907	255	1,162

United States	243	12	255	-19	262	12	274	930	25	955
Canada	31	1	32	14	16	2	18	118	3	121
North America	274	13	287	-5	278	14	292	1,048	28	1,076

Worldwide	834	196	1,030	-43	865	208	1,073	1,955	283	2,238

Beginning September 2020, the monthly international rig count will be distributed using the same email alert-based subscription system as the weekly North America rig count. A monthly press release will no longer be distributed following the August 2020 rig count. The subscription system is available free-of-charge and is available by clicking here to join on the rig count website.

About the Baker Hughes Rig Counts

The Baker Hughes rig counts are counts of the number of drilling rigs actively exploring for or developing oil or natural gas in the U.S., Canada and international markets. The Company has issued the rig counts as a service to the petroleum industry since 1944, when Hughes Tool Company began weekly counts of the U.S. and Canadian drilling activity. The monthly international rig count was initiated in 1975.

The North American rig count is scheduled to be released at noon Central Time on the last working day of each week. The international rig count is scheduled to be released on the last working day of the first week of the month at 5:00 a.m. Central Time. Additional detailed information on the Baker Hughes rig counts is available on our rig count site.

About Baker Hughes:

Baker Hughes (NYSE: BKR) is an energy technology company that provides solutions to energy and industrial customers worldwide. Built on a century of experience and with operations in over 120 countries, our innovative technologies and services are taking energy forward – making it safer, cleaner and more efficient for people and the planet. Visit us at bakerhughes.com

Contacts

Investor Relations
Jud Bailey
+1 281-809-9088
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Media Relations
Thomas Millas
+1 910-515-7873
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: Business Wire; Posted On Aug 07, 2020

COVID-19 Impacts: Heavy Fuel Oil Market Will Decelerate at a CAGR of over -15% through 2020-2024|Rising Seaborne Trade Activities to Boost Growth| Technavio

LONDON--(BUSINESS WIRE)--#GlobalHeavyFuelOilMarket--Technavio has been monitoring the heavy fuel oil market and it is expected to decrease by USD 52.68 billion during 2020-2024. The report offers an up-to-date analysis regarding the current market scenario, latest trends and drivers, and the overall market environment.

Technavio suggests three forecast scenarios (optimistic, probable, and pessimistic) considering the impact of COVID-19. Please Request Free Sample Report on COVID-19 Impact

Frequently Asked Questions-

What is the key factor driving the market?

Rising seaborne trade activities is one of the key factors driving the market growth.

Who are the top players in the market?

BP Plc, Chevron Corp., Exxon Mobil Corp., Indian Oil Corp. Ltd., Neste Oyj, PetroChina Co. Ltd., Qatar Petroleum, Rosneft Oil Co., Royal Dutch Shell Plc, and TOTAL SA. are some of the major market participants.

Which region is expected to hold the highest market share?

Europe

What is the major trend of the market?

The adoption of scrubber technology is a major trend driving the market growth.

The market is fragmented, and the degree of fragmentation will decelerate during the forecast period. BP Plc, Chevron Corp., Exxon Mobil Corp., Indian Oil Corp. Ltd., Neste Oyj, PetroChina Co. Ltd., Qatar Petroleum, Rosneft Oil Co., Royal Dutch Shell Plc, and TOTAL SA are some of the major market participants. To make the most of the opportunities, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

Rising seaborne trade activities have been instrumental in driving the growth of the market.

Heavy Fuel Oil Market 2020-2024: Segmentation

Heavy Fuel Oil Market is segmented as below:

End-user
- Shipping
- Others
Geographic Landscape
- APAC
- Europe
- MEA
- North America
- South America

To learn more about the global trends impacting the future of market research, download a free sample: https://www.technavio.com/talk-to-us?report=IRTNTR40330

Heavy Fuel Oil Market 2020-2024: Scope

Technavio presents a detailed picture of the market by the way of study, synthesis, and summation of data from multiple sources. Our heavy fuel oil market report covers the following areas:

Heavy Fuel Oil Market size
Heavy Fuel Oil Market trends
Heavy Fuel Oil Market analysis

This study identifies the adoption of scrubber technology as one of the prime reasons driving the heavy fuel oil market growth during the next few years.

Heavy Fuel Oil Market 2020-2024: Vendor Analysis

We provide a detailed analysis of vendors operating in the heavy fuel oil market, including some of the vendors such as BP Plc, Chevron Corp., Exxon Mobil Corp., Indian Oil Corp. Ltd., Neste Oyj, PetroChina Co. Ltd., Qatar Petroleum, Rosneft Oil Co., Royal Dutch Shell Plc, and TOTAL SA. Backed with competitive intelligence and benchmarking, our research reports on the heavy fuel oil market are designed to provide entry support, customer profile and M&As as well as go-to-market strategy support.

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Heavy Fuel Oil Market 2020-2024: Key Highlights

CAGR of the market during the forecast period 2020-2024
Detailed information on factors that will assist heavy fuel oil market growth during the next five years
Estimation of the heavy fuel oil market size and its contribution to the parent market
Predictions on upcoming trends and changes in consumer behavior
The growth of the heavy fuel oil market
Analysis of the market’s competitive landscape and detailed information on vendors
Comprehensive details of factors that will challenge the growth of heavy fuel oil market vendors

Table of Contents:

PART 01: EXECUTIVE SUMMARY

PART 02: SCOPE OF THE REPORT

2.1 Preface
2.2 Currency conversion rates for US$

PART 03: MARKET LANDSCAPE

Market ecosystem
Market characteristics
Value chain analysis
Market segmentation analysis

PART 04: MARKET SIZING

Market definition
Market sizing 2019
Market outlook
Market size and forecast 2019-2024

PART 05: FIVE FORCES ANALYSIS

Bargaining power of buyers
Bargaining power of suppliers
Threat of new entrants
Threat of substitutes
Threat of rivalry
Market condition

PART 06: MARKET SEGMENTATION BY END-USER

Market segmentation by end-user
Comparison by end-user
Shipping - Market size and forecast 2019-2024
Others - Market size and forecast 2019-2024
Market opportunity by end-user

PART 07: CUSTOMER LANDSCAPE

PART 08: GEOGRAPHIC LANDSCAPE

Geographic segmentation
Geographic comparison
APAC - Market size and forecast 2019-2024
Europe - Market size and forecast 2019-2024
MEA - Market size and forecast 2019-2024
North America - Market size and forecast 2019-2024
South America - Market size and forecast 2019-2024
Key leading countries
Market opportunity

PART 09: DECISION FRAMEWORK

PART 10: DRIVERS AND CHALLENGES

Market drivers
Market challenges

PART 11: MARKET TRENDS

Development of scrubber technology
Adoption of modular mini refineries
Usage of additives to improve the combustion of heavy fuel oil

PART 12: VENDOR LANDSCAPE

Overview
Landscape disruption
Competitive scenario

PART 13: VENDOR ANALYSIS

Vendors covered
Vendor classification
Market positioning of vendors
BP Plc
Chevron Corp.
Exxon Mobil Corp.
Indian Oil Corp. Ltd.
Neste Oyj
PetroChina Co. Ltd.
Qatar Petroleum
Rosneft Oil Co.
Royal Dutch Shell Plc
TOTAL SA

PART 14: APPENDIX

Research methodology
List of abbreviations
Definition of market positioning of vendors

PART 15: EXPLORE TECHNAVIO

About Us

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
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Website: www.technavio.com/

: Business Wire; Posted On Aug 07, 2020

Northern Oil and Gas, Inc. Announces Second Quarter 2020 Results

HIGHLIGHTS

Total debt reduced by $52.2 million in the second quarter, resulting in over $3 million in interest savings per annum
Strong risk management drove realized commodity hedge gains of $77.4 million in the second quarter
Cash flow from operations totaled $53.1 million, excluding $48.5 million received from changes in working capital
Total capital expenditures were $34.5 million in the second quarter
Wells in process remain near record levels at 26.7 net wells
Production averaged 23,804 barrels of oil equivalent (“Boe”) per day, driven by material curtailments and shut-ins
Approximately 26,500 barrels per day of remaining 2020 oil hedged at over $58 per barrel (“Bbl”) average prices
Approximately 21,500 barrels per day of 2021 oil hedged at over $54.50 per Bbl average prices

MINNEAPOLIS--(BUSINESS WIRE)--Northern Oil and Gas, Inc. (NYSE American: NOG) (“Northern”) today announced the company’s second quarter results.

MANAGEMENT COMMENTS

“In one of the most challenging quarters for the oil industry in decades, Northern’s unique, actively managed working-interest business model continues to deliver,” commented Nick O’Grady, Northern’s Chief Executive Officer. “Hedges protected cash flows despite the turmoil, and capital spending reductions were instituted rapidly. We continued to reduce our debt levels, and carefully and methodically have added to our portfolio to build for future growth and returns.”

SECOND QUARTER FINANCIAL RESULTS

Second quarter Adjusted Net Income was $10.7 million or $0.02 per diluted share. Second quarter GAAP net loss was $899.2 million or $2.17 per diluted share, driven in large part by non-cash items: a $762.7 million impairment expense and a $150.1 million mark-to-market loss on unsettled commodity derivatives. Cash flow from operations was $53.1 million in the second quarter, excluding $48.5 million received from changes in working capital. Adjusted EBITDA in the second quarter was $66.1 million. (See “Non-GAAP Financial Measures” below.)

PRODUCTION

Second quarter production was 23,804 Boe per day. Oil production represented 77% of total production at 18,234 Bbls per day. Production declined due to decisions by many of Northern’s operating partners to shut-in or curtail production and defer development plans as a result of the low commodity price environment. Northern estimates that curtailments, shut-ins and delayed well completions reduced the Company’s average daily production by approximately 16,800 Boe per day in the second quarter. Northern had only 1.3 net wells turned online during the second quarter, compared to 7.3 net wells turned online in the first quarter of 2020.

PRICING

During the second quarter, NYMEX West Texas Intermediate (“WTI”) crude oil averaged $27.95 per Bbl, and NYMEX natural gas at Henry Hub averaged $1.70 per million cubic feet (“Mcf”). Northern’s unhedged net realized oil price in the second quarter was $17.35, representing a $10.60 differential to WTI prices. Oil differentials were extremely wide in the month of May, but improved significantly in June. Northern’s second quarter unhedged net realized gas price was $(2.67) per Mcf, representing approximately (157)% realizations compared with Henry Hub pricing. The dislocation in natural gas and NGL prices was due to physical storage constraints, which created negative pricing for NGL products as demand collapsed due primarily to the COVID-19 pandemic. Higher compression, gathering, and processing charges that were in excess of natural gas and NGL sales prices additionally contributed to negative realized pricing.

OPERATING COSTS

Lease operating costs were $26.6 million in the second quarter of 2020 compared to $37.3 million in the first quarter of 2020 driven by a 46% reduction in production volumes, partially offset by increased processing and salt water disposal costs. Northern expects further cost reductions will be realized in the third quarter. Second quarter general and administrative (“G&A”) costs totaled $4.7 million, which includes non-cash stock-based compensation. Cash G&A expense totaled $3.5 million or $1.61 per Boe in the second quarter versus $3.8 million in the first quarter of 2020, primarily due to lower professional fees.

CAPITAL EXPENDITURES AND ACQUISITIONS

Capital spending for the second quarter was $34.5 million, made up of $32.7 million of organic D&C capital and $1.8 million of total acquisition spending and other, inclusive of ground game D&C spending. As mentioned above, Northern added 1.3 net wells to production in the second quarter, and wells in process ended at 26.7 net wells. On the ground game acquisition front, Northern closed on three transactions during the second quarter totaling 0.2 net wells and 124 net mineral acres.

Northern has previously announced several third quarter acquisitions. Subsequent to the closing of the second quarter, Northern has agreed to acquire or acquired 0.7 net producing wells, 3.9 net wells in process, and approximately 763 net acres for a total consideration of $4.6 million and 2.95 million shares of common stock, with an additional 0.45 million shares contingent on continued operation of the Dakota Access Pipeline. Pro forma for the closing of these transactions, Northern anticipates wells in process as of July 31, 2020, to total 30.3 net wells. Year to date, Northern’s ground game acquisitions that have been committed to or closed have contributed a total of 8.4 net wells that are either producing or in process, and added 1,852 net acres.

LIQUIDITY AND CAPITAL RESOURCES

As of June 30, 2020, Northern had $1.8 million in cash and $568.0 million outstanding on its revolving credit facility. As previously announced, Northern completed a semi-annual borrowing base redetermination under its revolving credit facility on July 8, 2020, with the borrowing base set at $660.0 million. Pro forma for the new borrowing base, Northern had total liquidity of $93.8 million as of June 30, 2020, consisting of cash and borrowing availability under the revolving credit facility.

As of June 30, 2020, Northern had additional debt outstanding consisting of a $130.0 million 6% Senior Unsecured Note and $297.3 million of 8.5% Senior Secured Notes. During the second quarter, Northern strengthened its balance sheet through several agreements with noteholders, which resulted in $30.2 million in principal amount of the 8.5% Senior Secured Notes being retired.

Since the end of the second quarter, Northern has entered into additional agreements that, when closed, will reduce the principal amount of the 8.5% Senior Secured Notes by an additional $4.0 million and reduce the liquidation value of its outstanding Preferred Stock by $7.6 million.

2020 GUIDANCE

	3Q:20	4Q:20
Production (Boe/day)	22,500 - 30,000	30,000 - 40,000
Capital Expenditures (2H:20)	$50 - $75 million

Northern is beginning to see a slow but steady return of curtailed and shut-in production to sales since the end of the second quarter. Northern projects production of 22,500 - 30,000 Boe per day in the third quarter and 30,000 - 40,000 Boe per day in the fourth quarter. Total capital expenditures are currently expected to be approximately $50 - 75 million in the second half of 2020, inclusive of ground game and acquisitions. This guidance assumes only 3.6 net wells turned in line in the second half of 2020. Northern reiterates its previous guidance for total 2020 capital spending of $175 - 200 million, with a reserve completion budget of $50 million.

2021 COMMENTARY

Looking out to 2021, Northern expects to benefit from carrying a near record number of wells in process (“WIP”). As of July 31, 2020, Northern had 28.6 net WIPs including approximately 6 net wells completed but not turned in line, and management projects its WIP count to exceed 30 net wells by year-end 2020. Northern’s ability as a non-operator to continue to build high quality inventory, despite an 80% reduction in the Williston rig count, is a testament to the active management of its capital development program.

Northern’s base case for 2021 presupposes that production curtailments will continue to subside and that completion activity will steadily increase starting late in the fourth quarter of 2020. Under this scenario, Northern expects to see production approaching 40,000 Boe per day by early 2021, nearing volume levels seen in early 2020. Furthermore, given the Company’s continued success on the ground game front, which continues to build the number of wells in process to near record levels, Northern forecasts that this level of production should be maintained throughout the remainder of 2021 on a capital budget of approximately $190 - 240 million. Under this scenario, Northern sees both Adjusted EBITDA and free cash flow at similar or higher levels to 2020, despite lower hedge values at recent strip prices.

Given the volatility in the sector, significant uncertainty remains and actual results will be driven by the timing of curtailments and shut-ins returning to sales, completed wells turned to sales and wells in process being completed and producing. Northern’s downside case, which assumes a slower WIP completion pace and little new drilling activity, would be expected to drive $40 - $60 million of lower capital spending but still generate production in excess of 35,000 Boe per day for 2021.

SECOND QUARTER 2020 RESULTS

The following tables set forth selected operating and financial data for the periods indicated.

	Three Months Ended June 30,
	2020		2019		% Change
Net Production:
Oil (Bbl)	1,659,293		2,562,513		(35)	%
Natural Gas and NGLs (Mcf)	3,041,418		3,715,936		(18)	%
Total (Boe)	2,166,196		3,181,835		(32)	%

Average Daily Production:
Oil (Bbl)	18,234		28,159		(35)	%
Natural Gas and NGLs (Mcf)	33,422		40,834		(18)	%
Total (Boe)	23,804		34,965		(32)	%

Average Sales Prices:
Oil (per Bbl)	$	17.35	$	54.56	(68)	%
Effect of Gain on Settled Oil Derivatives on Average Price (per Bbl)	46.19		1.85
Oil Net of Settled Oil Derivatives (per Bbl)	63.54		56.41		13	%

Natural Gas and NGLs (per Mcf)	(2.67)		2.70
Effect of Gain on Settled Natural Gas Derivatives on Average Price (per Mcf)	0.26		—
Natural Gas and NGLs Net of Settled Natural Gas Derivatives (per Mcf)	(2.41)		2.70

Realized Price on a Boe Basis Excluding Settled Commodity Derivatives	9.54		47.09		(80)	%
Effect of Gain on Settled Commodity Derivatives on Average Price (per Boe)	35.75		1.49
Realized Price on a Boe Basis Including Settled Commodity Derivatives	45.29		48.58		(7)	%

Costs and Expenses (per Boe):
Production Expenses	$	12.30	$	8.21	50	%
Production Taxes	0.89		4.41		(80)	%
General and Administrative Expenses	2.17		1.65		32	%
Depletion, Depreciation, Amortization and Accretion	16.97		14.49		17	%

Net Producing Wells at Period End	466.0		340.6		37	%

HEDGING

Northern hedges portions of its expected production volumes to increase the predictability of its cash flow and to help maintain a strong financial position. The following table summarizes Northern’s open crude oil commodity derivative contracts scheduled to settle after June 30, 2020.

Crude Oil Commodity Derivative Swaps⁽¹⁾
Contract Period	Volume (Bbls)	Volume (Bbls/Day)	Weighted Average Price (per Bbl)
2020:
3Q	2,501,348	27,189	$58.47
4Q	2,372,362	25,787	$58.03
2021:
1Q	2,201,250	24,458	$55.53
2Q	1,997,458	21,950	$55.88
3Q	1,809,410	19,668	$53.46
4Q	1,800,506	19,571	$53.47

_____________
(1)		This table does not reflect additional potential hedged volumes under “swaption” contracts, which are crude oil derivative contracts entered into by Northern that give counterparties the option to extend certain current derivative contracts for additional periods. Based on current pricing, none of these swaptions would be expected to be exercised.

The following table summarizes Northern’s open natural gas commodity derivative contracts scheduled to settle after June 30, 2020.

Natural Gas Commodity Derivative Swaps
Contract Period	Gas (MMBTU)	Volume (MMBTU/Day)	Weighted Average Price (per Mcf)
2020:
3Q	1,610,000	17,500	$2.35
4Q	1,610,000	17,500	$2.35
2021:
1Q	2,700,000	30,000	$2.43
2Q	2,275,000	25,000	$2.43
3Q	2,300,000	25,000	$2.43
4Q	2,300,000	25,000	$2.43

CAPITAL EXPENDITURES & DRILLING ACTIVITY

*(In millions, except for net well data)*	Three Months Ended June 30, 2020		Six Months Ended June 30, 2020
Capital Expenditures Incurred:
Organic Drilling and Development Capital Expenditures	$	32.7	$	97.5
Ground Game Drilling and Development Capital Expenditures	$	0.3	$	14.3
Ground Game Acquisition Capital Expenditures	$	0.3	$	7.5
Other	$	1.1	$	1.9

Net Wells Added to Production	1.3		8.6

Net Producing Wells (Period-End)	—		466.0

Net Wells in Process (Period-End)	—		26.7
Increase in Wells in Process over Prior Period	(0.5)		0.9

Weighted Average AFE for Wells Elected to Year-to-Date	$7.7 million		$7.6 million

Capitalized costs are a function of the number of net well additions during the period, and changes in wells in process from the prior year-end. Capital expenditures attributable to the increase of 0.9 in net wells in process during the six months ended June 30, 2020 are reflected in the amounts incurred year-to-date for drilling and development capital expenditures.

ACREAGE

As of June 30, 2020, Northern controlled leasehold of approximately 182,899 net acres targeting the Bakken and Three Forks formations of the Williston Basin, and approximately 90% of this total acreage position was developed, held by production, or held by operations.

SECOND QUARTER 2020 EARNINGS RELEASE CONFERENCE CALL

In conjunction with Northern’s release of its financial and operating results, investors, analysts and other interested parties are invited to listen to a conference call with management on Friday, August 7, 2020 at 10:00 a.m. Central Time.

Those wishing to listen to the conference call may do so via the company’s website, www.northernoil.com, or by phone as follows:

Website: https://78449.themediaframe.com/dataconf/productusers/nog/mediaframe/39975/indexl.html
Dial-In Number: (866) 373-3407 (US/Canada) and (412) 902-1037 (International)
Conference ID: 13707746 - Northern Oil and Gas, Inc. Second Quarter 2020 Earnings Call
Replay Dial-In Number: (877) 660-6853 (US/Canada) and (201) 612-7415 (International)
Replay Access Code: 13707746 - Replay will be available through August 14, 2020

UPCOMING CONFERENCE SCHEDULE

CFA Society Minnesota Intellisight Investor Day
August 12, 2020

Enercom Oil and Gas Conference
August 17, 2020

Seaport Global Summer Investor Conference
August 26, 2020

ABOUT NORTHERN OIL AND GAS

Northern Oil and Gas, Inc. is a company with a primary strategy of investing in non-operated minority working and mineral interests in oil & gas properties, with a core area of focus in the Williston Basin Bakken and Three Forks play in North Dakota and Montana. More information about Northern Oil and Gas, Inc. can be found at www.northernoil.com.

SAFE HARBOR

This press release contains forward-looking statements regarding future events and future results that are subject to the safe harbors created under the Securities Act of 1933 (the “Securities Act”) and the Securities Exchange Act of 1934 (the “Exchange Act”). All statements other than statements of historical facts included in this release regarding Northern’s financial position, operating and financial performance, business strategy, plans and objectives of management for future operations, industry conditions, and indebtedness covenant compliance are forward-looking statements. When used in this release, forward-looking statements are generally accompanied by terms or phrases such as “estimate,” “project,” “predict,” “believe,” “expect,” “continue,” “anticipate,” “target,” “could,” “plan,” “intend,” “seek,” “goal,” “will,” “should,” “may” or other words and similar expressions that convey the uncertainty of future events or outcomes. Items contemplating or making assumptions about actual or potential future sales, market size, collaborations, and trends or operating results also constitute such forward-looking statements.

Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond our company’s control) that could cause actual results to differ materially from those set forth in the forward-looking statements, including the following: the effects of the COVID-19 pandemic and related economic slowdown, changes in crude oil and natural gas prices, the pace of drilling and completions activity on Northern’s current properties, infrastructure constraints and related factors affecting Northern’s properties, ongoing legal disputes over and potential shutdown of the Dakota Access Pipeline, Northern’s ability to acquire additional development opportunities, Northern’s ability to consummate any pending acquisition transactions, other risks and uncertainties related to the closing of pending acquisition transactions, changes in Northern’s reserves estimates or the value thereof, general economic or industry conditions, nationally and/or in the communities in which Northern conducts business, changes in the interest rate environment, legislation or regulatory requirements, conditions of the securities markets, Northern’s ability to raise or access capital, changes in accounting principles, policies or guidelines, financial or political instability, health-related epidemics, acts of war or terrorism, and other economic, competitive, governmental, regulatory and technical factors affecting Northern’s operations, products and prices.

Northern has based these forward-looking statements on its current expectations and assumptions about future events. While management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond Northern’s control. Northern does not undertake any duty to update or revise any forward-looking statements, except as may be required by the federal securities laws.

CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
	Three Months Ended June 30,				Six Months Ended June 30,
*(In thousands, except share and per share data)*	2020		2019		2020		2019
Revenues
Oil and Gas Sales	$	20,664	$	149,847	$	150,860	$	282,530
Gain (Loss) on Commodity Derivatives, Net	(72,638)		36,591		303,943		(103,031)
Other Revenue	3		2		12		7
Total Revenues	(51,971)		186,440		454,815		179,506

Operating Expenses
Production Expenses	26,638		26,132		63,974		50,799
Production Taxes	1,917		14,034		13,813		26,553
General and Administrative Expense	4,710		5,250		9,580		11,300
Depletion, Depreciation, Amortization and Accretion	36,756		46,091		98,565		91,225
Impairment of Other Current Assets	—		2,694		—		2,694
Impairment Expense	762,716		—		762,716		—
Total Operating Expenses	832,737		94,200		948,648		182,571

Income (Loss) From Operations	(884,708)		92,239		(493,833)		(3,065)

Other Income (Expense)
Interest Expense, Net of Capitalization	(13,957)		(17,778)		(30,508)		(37,327)
Loss on Unsettled Interest Rate Derivatives, Net	(752)		—		(1,429)		—
Gain (Loss) on Extinguishment of Debt, Net	217		(425)		(5,310)		(425)
Debt Exchange Derivative Gain/(Loss)	—		(4,873)		—		1,413
Contingent Consideration Loss	—		(24,763)		—		(23,371)
Other Income (Expense)	—		(1)		—		14
Total Other Income (Expense)	(14,492)		(47,840)		(37,247)		(59,696)

Income (Loss) Before Income Taxes	(899,200)		44,399		(531,080)		(62,762)

Income Tax Provision (Benefit)	—		—		(166)		—

Net Income (Loss)	$	(899,200)	$	44,399	$	(530,914)	$	(62,762)

Cumulative Preferred Stock Dividend	(3,788)		—		(7,517)		—

Net Income (Loss) Attributable to Common Shareholders	$	(902,988)	$	44,399	$	(538,431)	$	(62,762)

Net Income (Loss) Per Common Share – Basic	$	(2.17)	$	0.12	$	(1.31)	$	(0.17)
Net Income (Loss) Per Common Share – Diluted	$	(2.17)	$	0.12	$	(1.31)	$	(0.17)
Weighted Average Common Shares Outstanding – Basic	415,356,043		378,368,462		409,509,292		374,927,630
Weighted Average Common Shares Outstanding – Diluted	415,356,043		378,724,511		409,509,292		374,927,630

CONDENSED BALANCE SHEETS
*(In thousands, except par value and share data)*	June 30, 2020		December 31, 2019
Assets	(Unaudited)
Current Assets:
Cash and Cash Equivalents	$	1,838	$	16,068
Accounts Receivable, Net	43,408		108,274
Advances to Operators	788		893
Prepaid Expenses and Other	2,204		1,964
Derivative Instruments	156,436		5,628
Income Tax Receivable	420		210
Total Current Assets	205,094		133,037

Property and Equipment:
Oil and Natural Gas Properties, Full Cost Method of Accounting
Proved	4,300,151		4,178,605
Unproved	10,681		11,047
Other Property and Equipment	2,164		2,157
Total Property and Equipment	4,312,996		4,191,809
Less – Accumulated Depreciation, Depletion and Impairment	(3,303,913)		(2,443,216)
Total Property and Equipment, Net	1,009,083		1,748,593

Derivative Instruments	34,566		8,554
Deferred Income Taxes	—		210
Acquisition Deposit	774		—
Other Noncurrent Assets, Net	13,756		15,071

Total Assets	$	1,263,273	$	1,905,465

Liabilities and Stockholders' Equity
Current Liabilities:
Accounts Payable	$	50,005	$	69,395
Accrued Liabilities	54,216		110,374
Accrued Interest	7,895		11,615
Derivative Instruments	1,198		11,298
Current Portion of Long-term Debt	65,000		—
Other Current Liabilities	906		795
Total Current Liabilities	179,220		203,477

Long-term Debt	924,171		1,118,161
Derivative Instruments	1,428		8,079
Asset Retirement Obligations	17,526		16,759
Other Noncurrent Liabilities	199		345

Total Liabilities	$	1,122,544	$	1,346,822

Commitments and Contingencies (Note 8)

Stockholders’ Equity
Preferred Stock, Par Value $.001; 5,000,000 Shares Authorized; 2,294,702 Series A Shares Outstanding at 6/30/2020 1,500,000 Series A Shares Outstanding at 12/31/2019	2		2
Common Stock, Par Value $.001; 675,000,000 Shares Authorized; 436,439,915 Shares Outstanding at 6/30/2020 406,085,183 Shares Outstanding at 12/31/2019	436		406
Additional Paid-In Capital	1,544,407		1,431,438
Retained Deficit	(1,404,117)		(873,203)
Total Stockholders’ Equity	140,729		558,643
Total Liabilities and Stockholders’ Equity	$	1,263,273	$	1,905,465

Non-GAAP Financial Measures

Adjusted Net Income and Adjusted EBITDA are non-GAAP measures. Northern defines Adjusted Net Income (Loss) as net income (loss) excluding (i) (gain) loss on unsettled commodity derivatives, net of tax, (ii) (gain) loss on extinguishment of debt, net of tax, (iii) debt exchange derivative (gain) loss, net of tax, (iv) contingent consideration loss, net of tax, (v) acquisition transaction costs, net of tax, (vi) impairment of other current assets, net of tax, (vii) impairment expense, net of tax, and (viii) loss on unsettled interest rate derivatives, net of tax.

Contacts

Mike Kelly, CFA
EVP Finance
952-476-9800
This email address is being protected from spambots. You need JavaScript enabled to view it.

Read full story here

: Business Wire; Posted On Aug 07, 2020

Willdan Awarded $13 Million in Energy Service Performance Contracts for Washington School Districts

ANAHEIM, Calif.--(BUSINESS WIRE)--Willdan Group, Inc. (NASDAQ: WLDN) announced today that it has been selected by two Washington School Districts – Entiat School District 127 (Entiat Schools) and Vancouver Public Schools – to perform a total of $13 million in two design-build projects.

In Entiat Schools, Willdan will improve facility comfort while also reducing building energy use of a combined high school and middle school through the replacement of aging packaged rooftop units with new VRF and DOAS and the redesign and replacement of roofing and windows. The facilities will also receive an upgrade to its Building Automation System. These improvements will ensure easy, accurate temperature control in classrooms and multipurpose facilities, reducing annual operating and maintenance costs.

“We’ve appreciated Willdan’s turnkey approach to projects,” said Miles Caples, Superintendent of Entiat Schools. “Their assistance with public communications helped us to pass a $6 million bond for our upgrade projects. Willdan’s guaranteed construction cost and guaranteed savings has given us peace of mind that we can achieve more comfortable, energy-efficient classrooms with minimal risk on our end.”

Working closely with Vancouver Public Schools (VPS), Willdan will perform a full HVAC system redesign and upgrade, single pane window replacement, and lead abatement at Hough Elementary. The project also includes replacing a boiler plant with high efficiency options and controls upgrades at two other elementary schools. The proposed upgrades will reduce VPS’ maintenance costs, improve air quality and classroom comfort, eliminate exposure to environmental toxins, and save energy. This is Willdan’s fourth phase of major construction work with VPS and is expected to be completed by the end of 2020.

“These projects mark an expansion in our relationships with K-12 schools in Washington,” said Tom Brisbin, Willdan’s CEO and Chairman. “We’re pleased to continue growing our geographic footprint in the Pacific Northwest as more school districts see the advantage in Willdan’s turnkey approach and become long-term partners.”

About Entiat School District 127 (Entiat Schools)

Entiat Schools is a public school district located in Entiat, WA. It provides students with the necessary knowledge, skills, and attitudes to be productive and responsible citizens. It has 300+ students from grades pre-K through 12. For more information, visit www.entiatschools.org or follow Entiat Schools on Facebook.

About Vancouver Public Schools (VPS)

Formed in 1852, VPS is a school district in Vancouver, WA. Its mission is to provide an innovative learning environment that engages and empowers each student to develop the knowledge and essential skills to become a competent, responsible, and compassionate citizen. It educates 23,500 students across 21 elementary schools, six middle schools, and five high schools. For more information visit www.vansd.org or follow VPS on Facebook, Twitter, YouTube, or Instagram.

About Willdan

Willdan is a nationwide provider of professional technical and consulting services to utilities, government agencies, and private industry. Willdan’s service offerings span a broad set of complementary disciplines that include electric grid solutions, energy efficiency and sustainability, engineering and planning, and municipal financial consulting. For additional information, visit Willdan's website at www.willdan.com.

Forward-Looking Statements

Statements in this press release that are not purely historical, including statements regarding Willdan’s intentions, hopes, beliefs, expectations, representations, projections, estimates, plans, or predictions of the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements involve risks and uncertainties including, but not limited to, the risk that Willdan will not be able to reduce costs and preserve liquidity to maintain its operations during the continuation of this pandemic nor be able to resume its growth trajectory once pandemic-related restrictions are lifted and the economy begins to recover. It is important to note that Willdan’s actual results could differ materially from those in any such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the ultimate impact of the COVID-19 pandemic on Willdan’s results, prospects, and opportunities; Willdan’s ability to adequately complete projects in a timely manner; Willdan’s ability to compete successfully in the highly competitive energy efficiency services market; changes in state, local, and regional economies and government budgets; Willdan’s ability to win new contracts, to renew existing contracts, and to compete effectively for contract awards through bidding processes; and Willdan’s ability to successfully integrate its acquisitions and execute on its growth strategy. Willdan’s business could be affected by a number of other factors, including the risk factors listed from time to time in Willdan’s reports filed with the Securities and Exchange Commission, including, but not limited to, the Annual Report on Form 10-K filed for the year ended December 27, 2019. Willdan cautions investors not to place undue reliance on the forward-looking statements contained in this press release. Willdan disclaims any obligation to, and does not undertake to, update or revise any forward-looking statements in this press release.

Contacts

Stacy McLaughlin
Chief Financial Officer
714-940-6300
This email address is being protected from spambots. You need JavaScript enabled to view it.

Al Kaschalk
VP Investor Relations
310-922-5642
This email address is being protected from spambots. You need JavaScript enabled to view it.

: Business Wire; Posted On Aug 07, 2020

Superior Drilling Products, Inc. Reports Second Quarter 2020 Results

International revenue grew 66% in second quarter over prior-year period, despite impact of COVID-19 on oil and gas industry and over 30% rig count decline
Continuing to reduce cost and operational structures for challenged market conditions
Diversifying revenue opportunities by leveraging manufacturing and machining expertise

VERNAL, Utah--(BUSINESS WIRE)--Superior Drilling Products, Inc. (NYSE American: SDPI) (“SDP” or the “Company”), a designer and manufacturer of drilling tool technologies, today reported financial results for the second quarter ended June 30, 2020.

Troy Meier, Chairman and CEO, noted, “As we had indicated in May, our second quarter was heavily impacted by the severe downturn in the oil & gas industry due to the impacts of the stay-at-home mandates on oil demand, the resulting shut down of global economies combined with excess supply. Nonetheless, our year-over-year growth in international revenue further validated the traction our Drill-N-Ream® well bore conditioning tool is gaining in the Middle East, even as the region struggled like the U.S. with stay-at-home restrictions that caused drilling activity to stall heavily. Importantly, demand for our tool is driving expansion into more countries as we further our relationships with the largest international oil field service companies.”

Second Quarter 2020 Review ($ in thousands, except per share amounts) (See at “Definitions” the composition of product/service revenue categories.)

($ in thousands, except per share amounts)	June 30, 2020		March 31, 2020		June 30, 2019		Change Sequential	Change Year/Year
Tool Sales/Rental	$	371	$	1,768	$	1,000	(79.0)%	(62.9)%
Other Related Tool Revenue		973		1,845		1,573	(47.3)%	(38.2)%
Tool Revenue		1,343		3,613		2,574	(62.8)%	(47.8)%
Contract Services		681		1,745		1,970	(61.0)%	(65.4)%
Total Revenue	$	2,024	$	5,358	$	4,543	(62.2)%	(55.4)%

The average U.S land rig count declined 60% year-over-year in the quarter reflecting the imbalance of supply and demand in the global oil industry, as well as the impact of the COVID-19 pandemic. This significant reduction in drilling activity was the primary driver of the $2.5 million, or 55%, decline in revenue compared with the prior-year period. Tool revenue declined at a lower rate than the overall market, which the Company attributes to the value created by the DNR. This is reflected in the increase in market share by the Company’s U.S. distributor. The tool is used to improve drilling efficiencies and reduce drilling costs.

North America revenue represented 83% of total revenue compared with 96% the prior-year period while International revenue grew to 17% compared with 4% the prior-year period.

Second Quarter 2020 Operating Costs

($ in thousands,except per share amounts)	June 30, 2020		March 31, 2020		June 30, 2019		Change Sequential	Change Year/Year
Cost of revenue	$	1,100	$	2,315	$	2,014	(52.5)%	(45.4)%
As a percent of sales		54.3%		43.2%		44.3%
Selling, general & administrative	$	1,340	$	2,018	$	1,816	(33.6)%	(26.2)%
As a percent of sales		66.2%		37.7%		40.0%
Depreciation & amortization	$	680	$	761	$	930	(10.6)%	(26.9)%
Total operating expenses	$	3,120	$	5,093	$	4,760	(38.7)%	(34.5)%
Operating (loss) Income	$	(1,096)	$	265	$	(217)	NM	NM
As a % of sales		(54.1)%		4.9%		(4.8)%
Other (expense) income including income tax (expense)	$	(146)	$	(67)	$	(181)	NM	NM
Net (loss) income	$	(1,242)	$	198	$	(397)	NM	NM
Diluted earnings (loss) per share	$	(0.05)	$	0.01	$	(0.02)	NM	NM
Adjusted EBITDA⁽¹⁾	$	(222)	$	1,221	$	1,074	NM	NM

⁽¹⁾See the attached tables for important disclosures regarding SDP’s use of Adjusted EBITDA, as well as a reconciliation of net loss to Adjusted EBITDA.

The cost of revenue decreased approximately $914 thousand over the prior-year period reflecting lower volume and the impact of cost savings resulting from the Company’s April 2020 reduction in force. As a percentage of revenue, cost of sales was 54% compared with 44% for prior-year period. The increase reflects lower absorption of overhead costs on reduced volume.

The 26% decline in selling, general and administrative expense (SG&A), which includes research and development projects, was primarily due to the cost reduction measures implemented in April 2020 in an effort to offset the reduction in revenue.

Depreciation and amortization expense decreased approximately 27% to $680 thousand due to lower amortization expense as a result of fully amortizing a portion of intangible assets in May 2019.

Chris Cashion, Chief Financial Officer commented, “After completing phase two of our cost reduction plan, we are now running at a cash burn rate of approximately $900 thousand per month. We are evaluating the necessary actions for phase three cost reductions under the assumption that things will get worse before they get better. We continue to expect that the third quarter will be our low point for our domestic revenue and that demand, primarily international, will continue to improve from there.”

Net loss for the quarter was $1.2 million, compared with a net loss of $397 thousand in the second quarter of 2019. Adjusted EBITDA⁽¹⁾, a non-GAAP measure defined as earnings before interest, taxes, depreciation and amortization, non-cash stock compensation expense and unusual items, was a negative $222 thousand.

The Company believes that when used in conjunction with measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), Adjusted EBITDA, which is a non-GAAP measure, helps in the understanding of its operating performance.

Year-to-Date Review

Revenue in the first six months of 2020 decreased just 23%, or $2.2 million, compared with the same period in 2019. The decline in the first half was less than would be expected given the impact of COVID-19 on the oil & gas industry because of the very strong 2020 first quarter results that was driven by above market performance in both U.S. and International markets. International revenue increased 175% in the first half, and U.S. revenue was down just 31% while the overall U.S. rig count market declined by 41%.

Tool revenue was $5.0 million, down 18%, or $1.1 million, from the prior-year period. Contract Services revenue decreased approximately $1.1 million, or 32%, to $2.5 million. Net loss for the first six months of 2020 was $1.0 million, or $(0.04) per diluted share. Adjusted EBITDA⁽¹⁾ for the first six months of 2020 was $1.0 million. Adjusted EBITDA margin was 13.5% in 2020, compared with 24% in 2019.

Balance Sheet and Liquidity

Cash at the end of the quarter was $2.5 million, up from $1.2 million at the end of 2019, but down from $3.3 million at the end of the first quarter of 2020. Cash used in operations in the second quarter of 2020 was $72 thousand.

Total debt at the end of the second quarter was $6.9 million, down $0.7 million, or 9.2%, compared with $7.6 million at March 31, 2020.

Strategy and outlook

Mr. Meier concluded, “While we have confidence in our drilling tool technologies, the opportunity for the DNR to continue to further penetrate the global market and the opportunity for us to expand our drill bit remanufacturing capabilities internationally, we also recognize we need to leverage our resources and diversify our opportunities. We are in the process of obtaining ISO 9001 and AS 9100 certifications for our Vernal, Utah operations so we can address requests to provide precision machining services to the defense industry and for other critical industrial applications. Although we do not expect revenue from these efforts to be realized until later in 2021, as we expand with our drilling technologies, the opportunity for additional revenue streams will help to derisk our future.”

Definitions and Composition of Product/Service Revenue:

Contract Services Revenue is comprised of drill bit and other repair and manufacturing services.

Other Related Tool Revenue is comprised of royalties and fleet maintenance fees.

Tool Sales/Rental revenue is comprised of revenue from either the sale of tools or tools rented to customers.

Tool Revenue is the sum of Other Related Tool Revenue and Tool Sales/Rental revenue.

Webcast and Conference Call

The Company will host a conference call and live webcast today at 11:00 am MT (1:00 pm ET) to review the results of the quarter and discuss its corporate strategy and outlook. The discussion will be accompanied by a slide presentation that will be made available prior to the conference call on SDP’s website at www.sdpi.com/events. A question-and-answer session will follow the formal presentation.

The conference call can be accessed by calling (201) 689-8470. Alternatively, the webcast can be monitored at www.sdpi.com/events. A telephonic replay will be available from 2:00 p.m. MT (4:00 p.m. ET) the day of the teleconference until Friday, August 14, 2020. To listen to the archived call, please call (412) 317-6671 and enter conference ID number 13705876, or access the webcast replay at www.sdpi.com, where a transcript will be posted once available.

About Superior Drilling Products, Inc.

Superior Drilling Products, Inc. is an innovative, cutting-edge drilling tool technology company providing cost saving solutions that drive production efficiencies for the oil and natural gas drilling industry. The Company designs, manufactures, repairs and sells drilling tools. SDP drilling solutions include the patented Drill-N-Ream® well bore conditioning tool and the patented Strider^™ oscillation system technology. In addition, SDP is a manufacturer and refurbisher of PDC (polycrystalline diamond compact) drill bits for a leading oil field service company. SDP operates a state-of-the-art drill tool fabrication facility, where it manufactures its solutions for the drilling industry, as well as customers’ custom products. The Company’s strategy for growth is to leverage its expertise in drill tool technology and innovative, precision machining in order to broaden its product offerings and solutions for the oil and gas industry.

Additional information about the Company can be found at: www.sdpi.com.

Safe Harbor Regarding Forward Looking Statements

This news release contains forward-looking statements and information that are subject to a number of risks and uncertainties, many of which are beyond our control. All statements, other than statements of historical fact included in this release, including, without limitations, the continued impact of COVID-19 on the business, the Company’s strategy, future operations, success at developing future tools, the Company’s effectiveness at executing its business strategy and plans, financial position, estimated revenue and losses, projected costs, prospects, plans and objectives of management, and ability to outperform are forward-looking statements. The use of words “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “may,” “continue,” “predict,” “potential,” “project”, “forecast,” “should” or “plan, and similar expressions are intended to identify forward-looking statements, although not all forward -looking statements contain such identifying words. These statements reflect the beliefs and expectations of the Company and are subject to risks and uncertainties that may cause actual results to differ materially. These risks and uncertainties include, among other factors, the duration of the COVID-19 pandemic and related impact on the oil and natural gas industry, the effectiveness of success at expansion in the Middle East, options available for market channels in North America, the deferral of the commercialization of the Strider technology, the success of the Company’s business strategy and prospects for growth; the market success of the Company’s specialized tools, effectiveness of its sales efforts, its cash flow and liquidity; financial projections and actual operating results; the amount, nature and timing of capital expenditures; the availability and terms of capital; competition and government regulations; and general economic conditions. These and other factors could adversely affect the outcome and financial effects of the Company’s plans and described herein. The Company undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof.

FINANCIAL TABLES FOLLOW.

Superior Drilling Products, Inc.
Consolidated Condensed Statements of Operations
for the Periods Ended June 30, 2020 and 2019
(unaudited)

	For the Three Months						For the Six Months
	Ended June 30,						Ended June 30,
		2020			2019			2020			2019

Revenue
North America	$	1,688,933		$	4,341,696		$	6,269,443		$	9,169,973
International		335,455			201,746			1,112,708			409,815
Total revenue	$	2,024,388		$	4,543,442		$	7,382,151		$	9,579,788

Operating cost and expenses
Cost of revenue		1,099,553			2,013,598			3,414,061			4,056,626
Selling, general, and administrative expenses		1,340,213			1,816,195			3,358,112			3,885,235
Depreciation and amortization expense		680,375			930,410			1,441,139			1,941,515

Total operating costs and expenses		3,120,141			4,760,203			8,213,312			9,883,376

Operating loss		(1,095,753	)		(216,761	)		(831,161	)		(303,588	)

Other income (expense)
Interest income		942			21,431			5,630			40,364
Interest expense		(146,470	)		(216,241	)		(323,728	)		(394,223	)
Impairment on asset held for sale		-			-			(30,000	)		-
Gain on disposition of assets		-			14,147			142,234			14,147
Total other expense		(145,528	)		(180,663	)		(205,864	)		(339,712	)

Loss before income taxes		(1,241,281	)		(397,424	)		(1,037,025	)		(643,300	)

Income tax expense		(225	)		-			(6,435	)		-
Net loss	$	(1,241,506	)	$	(397,424	)	$	(1,043,460	)	$	(643,300	)

Basic loss earnings per common share	$	(0.05	)	$	(0.02	)	$	(0.04	)	$	(0.03	)

Basic weighted average common shares outstanding		25,434,593			25,034,580			25,202,104			25,026,384

Diluted loss per common share	$	(0.05	)	$	(0.02	)	$	(0.04	)	$	(0.03	)

Diluted weighted average common shares outstanding		25,434,593			25,034,580			25,202,104			25,026,384

Superior Drilling Products, Inc.
Consolidated Condensed Balance Sheets
(unaudited)

	June 30, 2020			December 31, 2019
Assets
Current assets:
Cash	$	2,532,940		$	1,217,014
Accounts receivable, net		1,414,774			3,850,509
Prepaid expenses		76,380			139,070
Inventories		1,302,181			924,032
Asset held for sale		40,000			252,704
Other current assets		-			252,178

Total current assets		5,366,275			6,635,507

Property, plant and equipment, net		7,755,738			8,045,692
Intangible assets, net		1,402,778			1,986,111
Right of use Asset (net of amortizaton)		177,303			-
Other noncurrent assets		93,619			93,619
Total assets	$	14,795,713		$	16,760,929

Liabilities and Owners' Equity
Current liabilities:
Accounts payable	$	647,091		$	945,414
Accrued expenses		729,113			683,832
Customer Deposits		-			61,421
Income tax payable		22,215			15,880
Current portion of operating lease liability		114,070			-
Current portion of long-term debt, net of discounts		3,990,716			4,102,543

Total current liabilities		5,503,205			5,809,090

Operating Lease Liability		63,233			-
Long-term debt, less current portion, net of discounts		2,957,758			3,848,863
Total liabilities		8,524,196			9,657,953

Shareholders’ equity
Common stock (25,434,776 and 25,418,126)		25,435			25,418
Additional paid-in-capital		40,281,375			40,069,391
Accumulated deficit		(34,035,293	)		(32,991,833	)
Total shareholders’ equity		6,271,517			7,102,976
Total liabilities and shareholders' equity	$	14,795,713		$	16,760,929

Superior Drilling Products, Inc.
Consolidated Statements of Cash Flows
For the Periods Ended June 30, 2020 and 2019
(unaudited)

		June 30, 2020		June 30, 2019
Cash Flows From Operating Activities
Net loss	$	(1,043,460)	$	(643,300)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization expense		1,441,139		1,941,515
Share-based compensation expense		212,001		317,966
Loss / (Gain) on sale or disposition of assets		(142,234)		(14,147)
Impairment on asset held for sale		30,000		-
Amortization of deferred loan cost		9,263		6,179
Changes in operating assets and liabilities:
Accounts receivable		2,435,735		(1,040,141)
Inventories		(860,431)		(158,881)
Prepaid expenses and other noncurrent assets		314,868		(108,142)
Accounts payable and accrued expenses		(230,959)		628,595
Income Tax expense		6,335		-
Other long-term liabilities		(61,421)		-
Net Cash Provided By Operating Activities		2,110,836		929,644

Cash Flows From Investing Activities
Purchases of property, plant and equipment		(90,132)		(685,614)
Proceeds from sale of fixed assets		117,833		-
Net Cash Provided By (Used In) Investing Activities		27,701		(685,614)

Cash Flows From Financing Activities
Principal payments on debt		(1,953,673)		(2,895,957)
Proceeds received from debt borrowings		964,120		800,000
Payments on Revolving Loan		(842,880)		(437,922)
Proceeds received from Revolving Loan		1,009,822		1,309,836
Debt issuance costs		-		(70,103)
Net Cash Used In Financing Activities		(822,611)		(1,294,146)

Net change in Cash		1,315,926		(1,050,116)
Cash at Beginning of Period		1,217,014		4,264,767
Cash at End of Period	$	2,532,940	$	3,214,651

Supplemental information:
Cash paid for interest	$	340,027	$	466,976
Acquisition of equipment by issuance of note payable		-		330,840
Inventory converted to property, plant and equipment		482,282		-
Long term debt paid with Sale of Plane		211,667		-

Superior Drilling Products, Inc.
Adjusted EBITDA⁽¹⁾ Reconciliation
(unaudited)

($, in thousands)	Three Months Ended
	June 30, 2020			June 30, 2019			March 31, 2020

GAAP net income	$	(1,241,506	)	$	(397,424	)	$	198,046
Add back:
Depreciation and amortization		680,375			930,410			760,764
Inventory write off		-			136,000			-
Interest expense, net		145,528			194,810			172,570
Share-based compensation		105,005			136,115			106,996
Net non-cash compensation		88,200			88,200			88,200
Income tax expense		225			-			6,435
Loss on disposition of assets		-			(14,147	)		(112,234	)
Non-GAAP adjusted EBITDA⁽¹⁾	$	(222,173	)	$	1,073,964		$	1,220,777

GAAP Revenue	$	2,024,388		$	4,543,442		$	5,357,763
Non-GAAP Adjusted EBITDA Margin		-11.0	%		23.6	%		22.8	%

	Six Months Ended
	June 30, 2020			June 30, 2019

GAAP net income	$	(1,043,460	)	$	(643,300	)
Add back:
Depreciation and amortization		1,441,139			1,941,515
Inventory write off		-			136,000
Interest expense, net		318,098			353,859
Share-based compensation		212,001			317,966
Net non-cash compensation		176,400			176,400
Income tax expense		6,435			-
Loss on disposition of assets		(112,234	)		(14,147	)
Non-GAAP adjusted EBITDA⁽¹⁾	$	998,379		$	2,268,293

GAAP Revenue	$	7,382,151		$	9,579,788
Non-GAAP Adjusted EBITDA Margin		13.5	%		23.7	%

⁽¹⁾ Adjusted EBITDA represents net income adjusted for income taxes, interest, depreciation and amortization and other items as noted in the reconciliation table. The Company believes Adjusted EBITDA is an important supplemental measure of operating performance and uses it to assess performance and inform operating decisions. However, Adjusted EBITDA is not a GAAP financial measure. The Company’s calculation of Adjusted EBITDA should not be used as a substitute for GAAP measures of performance, including net cash provided by operations, operating income and net income. The Company’s method of calculating Adjusted EBITDA may vary substantially from the methods used by other companies and investors are cautioned not to rely unduly on it.

Contacts

For more information, contact investor relations:
Deborah K. Pawlowski, Kei Advisors LLC
(716) 843-3908, This email address is being protected from spambots. You need JavaScript enabled to view it.

: Business Wire; Posted On Aug 07, 2020

Diamond S Shipping Inc. Announces Second Quarter 2020 Earnings Release and Conference Call

GREENWICH, Conn.--(BUSINESS WIRE)--Diamond S Shipping Inc. (NYSE: DSSI) (the “Company”) announced today that the Company plans to release second quarter 2020 earnings before the market opens on Thursday August 13, 2020. The Company will host a conference call for investors at 8:00 AM ET on the same day.

Conference Call Details

Date: Thursday August 13, 2020

Time: 8:00 AM ET

US Dial-In Number: +1 866 211-4137

International Dial-In Number: +1 647 689-6723

Conference ID: 3179296

A live webcast of the conference call will be available from the Company’s website at www.diamondsshipping.com.

An audio replay of the conference call will be available starting at 11 AM ET on Thursday August 13, 2020 through Thursday August 20, 2020 by dialing +1 800 585-8367 or +1 416 621-4642 and entering the passcode 3179296.

About Diamond S Shipping Inc.

Diamond S Shipping Inc. (NYSE Ticker: DSSI) owns and operates 66 vessels on the water, including 15 Suezmax vessels, one Aframax and 50 medium-range (MR) product tankers. Diamond S Shipping is one of the largest energy shipping companies providing seaborne transportation of crude oil and refined petroleum products in the international shipping markets. The Company is headquartered in Greenwich, CT. More information about the Company can be found at www.diamondsshipping.com.

Contacts

Investor Relations Inquiries:
Robert Brinberg
Tel: +1-212-517-0810
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

: Business Wire; Posted On Aug 07, 2020

International Seaways Reports Second Quarter 2020 Results

NEW YORK--(BUSINESS WIRE)--International Seaways, Inc. (NYSE: INSW) (the “Company” or “INSW”), one of the largest tanker companies worldwide providing energy transportation services for crude oil and petroleum products in International Flag markets, today reported results for the second quarter of 2020.

Highlights

Net income for the second quarter was $64.4 million, or $2.24 per diluted share, compared to a net loss of $16.5 million, or $0.57 per diluted share, in the second quarter of 2019. Net income for the quarter reflects the impact of a $4.1 million impairment charge and gain on sale of vessels. Net income excluding these items was $68.5 million, or $2.39 per diluted share.
Time charter equivalent (TCE) revenues^(A) for the second quarter were $135.3 million, compared to $62.5 million for the second quarter of 2019.
Adjusted EBITDA^(B) for the second quarter was $96.3 million, compared to $21.3 million for the same period of 2019.
Cash^(C) was $144.5 million as of June 30, 2020; total liquidity was $184.5 million, including $40.0 million of undrawn revolver.
Repurchased 926,700 shares at an average price of $21.57 per share, for a total cost of $20 million, completing $30 million buyback authorization.
On August 4, 2020 renewed share buyback authorization program for a further $30 million.
Paid a regular quarterly cash dividend of $0.06 per share in June 2020 and announced a quarterly cash dividend of $0.06 per share payable in September 2020.
Subsequent to the end of the quarter, agreed to prepay the full $40.0 million outstanding under the Transition Term Loan Facility.

“During the second quarter, we generated our highest quarterly net income as a public company, marking our second consecutive quarter of record results,” said Lois K. Zabrocky, International Seaways’ President and CEO. “With significant operating leverage in the VLCC market and the midsized tanker sectors, we capitalized on the rate environment in the second quarter, driving our strong results and increasing our liquidity position. We also took advantage of the elevated market by entering into four favorable time charters for periods ranging from seven to 36 months, positioning International Seaways to optimize revenue during a time when rates have come off recent highs.”

Ms. Zabrocky continued, “We executed on our disciplined and balanced capital allocation strategy, which included paying a regular quarterly cash dividend and repurchasing $20 million of our shares in the second quarter, while also taking steps to further delever. Our ample liquidity has allowed the Company to take these steps, while maintaining balance sheet strength and the flexibility to continue to deploy capital to best serve shareholders. Going forward, we remain positive on the long-term outlook for the tanker market, and our priority is to provide safe, reliable service to our leading energy customers and ensure the safety of our onshore and at-sea professionals as we continue to operate in a COVID-19 environment.”

Jeff Pribor, the Company’s CFO, added, “We continue to successfully allocate capital to strengthen our balance sheet and capital structure and provide a return to shareholders. Combined with the savings from our successful refinancing earlier this year, the prepayment of our $40 million Transition Loan subsequent to the end of the quarter has enabled us to further reduce our cash breakevens to below $15,000 per day. Complementing our regular quarterly cash dividend of $0.06 paid to shareholders in June, we repurchased $20 million of shares during the quarter, creating additional value, and still ended the quarter with over $184 million in total liquidity.”

Second Quarter 2020 Results
Net income for the second quarter was $64.4 million, or $2.24 per diluted share, compared to a net loss of $16.5 million, or $0.57 per diluted share, in the second quarter of 2019. The increase in the second quarter of 2020 primarily reflects substantially higher TCE revenues and lower interest expense. Net income for the first half of 2020 was $97.4 million, or $3.35 per diluted share, compared to a net loss of $5.6 million, or $0.19 per share, for the first half of 2019.

Consolidated TCE revenues for the second quarter of 2020 were $135.3 million, compared to $62.5 million for the second quarter of 2019. Shipping revenues for the second quarter of 2020 were $139.7 million, compared to $69.0 million for the second quarter of 2019. Consolidated TCE revenues for the first half of 2020 were $255.0 million, compared to $156.5 million for the first half of last year. Shipping revenues for the first half of 2020 were $265.1 million compared to $170.9 million for the prior year period.

Strong TCE rates in the second quarter were driven initially by the breakdown of production cut agreements between OPEC and Russia, coupled with reduced demand due to COVID-19, creating an environment where excess oil production created a strong demand for oil tankers. Additionally, oil prices entered a strong contango market which drove traders to book oil tankers for storage. Record crude imports by China also had a positive impact on freight markets. As the quarter progressed, however, OPEC and Russia agreed to steep production cuts, oil markets recovered narrowing the contango, and accordingly, tanker freight markets subsequently declined, particularly on smaller ships. The larger ships, especially the VLCCs, have maintained healthier rates.

In the second quarter of 2020, the Company recorded an impairment charge of $5.5 million on one of its 2002-built VLCCs to write-down its carrying value to its estimated fair value at June 30, 2020. The decline in equity in income of affiliated companies for the second quarter of 2020 compared to the second quarter of 2019 reflects the Company’s sale of its interest in the LNG joint venture for net proceeds of approximately $123 million in October 2019. Interest expense decreased by $8.6 million for the second quarter of 2020 compared to the second quarter of 2019 as a result of lower average outstanding debt balances principally attributable to $110 million in principal prepayments on the 2017 Term Loan Facility during the second half of 2019 and the use of cash in the January 2020 refinancing, and substantially lower average margins and interest rates on the refinanced portion of debt entered into by the Company during the first quarter of 2020.

Adjusted EBITDA was $96.3 million for the quarter, compared to $21.3 million for the second quarter of 2019. Adjusted EBITDA was $170.5 million for the first half of 2020, compared to $68.6 million for the first half of 2019.

Crude Tankers
TCE revenues for the Crude Tankers segment were $105.9 million for the quarter compared to $45.7 million for the second quarter of 2019. This increase primarily resulted from the impact of higher average blended rates in the VLCC, Suezmax, Aframax and Panamax sectors, with average spot rates climbing to approximately $71,700, $49,000, $30,600 and $35,000 per day, respectively, aggregating approximately $64.4 million. Partially offsetting this increase was the impact of an 85-day reduction in VLCC revenue days aggregating $1.6 million. Lightering posted a strong second quarter EBITDA of $1.8 million even though revenue was down by $3.1 million. The quarter-over-quarter net decrease in VLCC revenue days reflects 104 drydock days during which VLCCs were out of service in the current quarter to have scrubbers installed and 89 days of offhire on the Seaways Mulan, which was held by Indonesian authorities from February 8, 2020 through June 8, 2020 and redelivered back to the Tankers International Pool on June 28, 2020. To date, the Company has completed the scrubber installations on seven of its modern VLCCs. Shipping revenues for the Crude Tankers segment were $110.4 million for second quarter of 2020 compared to $52.1 million for the second quarter of 2019. TCE revenues for the Crude Tankers segment were $194.7 million for the first half of 2020, compared to $118.2 million for the first half of 2019. Shipping revenues for the Crude Tankers segment were $204.1 million for the first half of 2020, compared to $132.5 million for the first half of 2019.

During the second quarter of 2020, four of our VLCCs commenced time charters with major oil producing and trading companies at high rates. Seaways Kilimanjaro fixed for 3 years at $45,000 per day, Seaways Tanabe (one of our older units) fixed for 1 year at $53,000 per day and Seaways McKinley and Seaways Tybee fixed for seven months at an average of $100,000 per day.

Product Carriers
TCE revenues for the Product Carriers segment were $29.4 million for the quarter, compared to $16.8 million for the second quarter of 2019. This increase primarily resulted from the impact of higher average daily blended rates earned by the LR1, LR2 and MR fleets, with average spot rates rising to approximately $30,900, $38,900 and $17,200 per day, respectively, increasing TCE revenues by approximately $13.3 million in the aggregate compared to the second quarter of 2019. This was partially offset by a $1.0 million decline in TCE revenue arising from the net effect of a 368-day decrease in MR revenue days, resulting primarily from vessel sales, charter-in redeliveries and terminations, mitigated by a 181-day increase in LR1 revenue days primarily driven by the commencement of a two-year time charter-in of a 2006-built LR1 in August 2019, and the purchase of a 2009-built LR1 that was delivered in February 2020. Shipping revenues for the Product Carriers segment were $29.3 million for the second quarter of 2020, compared to $16.9 million for the second quarter of 2019. TCE revenues for the Product Carriers segment were $60.3 million for the first half of 2020, compared to $38.3 million for the first half of 2019. Shipping revenues for the Product Carriers segment were $61.0 million for the first half of 2020, compared to $38.4 million for the first half of 2019.

Share Repurchases
During the second quarter of 2020, the Company repurchased and retired 926,700 shares of its common stock in open-market purchases at an average price of $21.57 per share, for a total cost of $20.0 million, bringing year to date purchases to $30 million representing nearly 5% of the Company’s outstanding shares. Additionally, on August 4, 2020 the Company’s Board of Directors authorized a renewal of the share repurchase program in the amount of $30 million.

Payment of Regular Cash Dividend
The Company’s Board of Directors declared a regular quarterly cash dividend of $0.06 per share of common stock on August 4, 2020. The dividend will be paid on September 23, 2020 to shareholders of record at the close of business on September 9, 2020.

Debt Prepayment
In August 2020, the Company agreed to prepay the $40.0 million outstanding principal balance under the Transition Term Loan Facility using available cash on hand, bringing forward looking cash breakevens for its spot fleet to under $15,000 per day and increasing the number of unencumbered ships in our fleet to 14. It is expected that the prepayment will be made on or around August 10.

Conference Call
The Company will host a conference call to discuss its second quarter 2020 results at 9:00 a.m. Eastern Time (“ET”) on August 7, 2020. To access the call, participants should dial (855) 940-9471 for domestic callers and (412) 317-5211 for international callers. Please dial in ten minutes prior to the start of the call. A live webcast of the conference call will be available from the Investor Relations section of the Company’s website at www.intlseas.com.

An audio replay of the conference call will be available starting at 12:00 p.m. ET on August 7, 2020 through 11:59 p.m. ET on August 14, 2020 by dialing (877) 344-7529 for domestic callers and (412) 317-0088 for international callers, and entering Access Code 10146746.

About International Seaways, Inc.
International Seaways, Inc. (NYSE: INSW) is one of the largest tanker companies worldwide providing energy transportation services for crude oil and petroleum products in International Flag markets. International Seaways owns and operates a fleet of 39 vessels, including 13 VLCCs, two Suezmaxes, five Aframaxes/LR2s, 13 Panamaxes/LR1s and four MR tankers. Through joint ventures, it has ownership interests in two floating storage and offloading service vessels. International Seaways has an experienced team committed to the very best operating practices and the highest levels of customer service and operational efficiency. International Seaways is headquartered in New York City, NY. Additional information is available at https://www.intlseas.com.

Forward-Looking Statements
This release contains forward-looking statements. In addition, the Company may make or approve certain statements in future filings with the Securities and Exchange Commission (SEC), in press releases, or in oral or written presentations by representatives of the Company. All statements other than statements of historical facts should be considered forward-looking statements. These matters or statements may relate to the Company’s plans to issue dividends, its prospects, including statements regarding vessel acquisitions, trends in the tanker markets, and possibilities of strategic alliances and investments. Forward-looking statements are based on the Company’s current plans, estimates and projections, and are subject to change based on a number of factors. Investors should carefully consider the risk factors outlined in more detail in the Annual Report on Form 10-K for 2019 for the Company, the Quarterly Report on Form 10-Q for the quarters ended March 31, 2020 and June 30, 2020, and in similar sections of other filings made by the Company with the SEC from time to time. The Company assumes no obligation to update or revise any forward-looking statements. Forward-looking statements and written and oral forward-looking statements attributable to the Company or its representatives after the date of this release are qualified in their entirety by the cautionary statements contained in this paragraph and in other reports previously or hereafter filed by the Company with the SEC.

Consolidated Statements of Operations
($ in thousands, except per share amounts)
		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2020		2019		2020		2019
		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Shipping Revenues:
Pool revenues	$	100,059	$	44,713	$	201,268	$	112,350
Time and bareboat charter revenues		26,655		6,541		35,259		12,061
Voyage charter revenues		13,011		17,756		28,535		46,473
Total Shipping Revenues		139,725		69,010		265,062		170,884

Operating Expenses:
Voyage expenses		4,436		6,523		10,042		14,368
Vessel expenses		30,278		30,746		63,238		61,284
Charter hire expenses		7,540		13,033		17,771		30,218
Depreciation and amortization		18,880		18,818		37,147		37,747
General and administrative		6,694		6,297		14,128		13,070
Provision for credit losses, net		(129)		(21)		(67)		1,277
Third-party debt modification fees		-		-		232		30
Loss on disposal of vessels and other property,
including impairments		4,134		1,548		1,330		1,500
Total operating expenses		71,833		76,944		143,821		159,494
Income/(loss) from vessel operations		67,892		(7,934)		121,241		11,390
Equity in income of affiliated companies		5,205		8,015		10,316		16,085
Operating income		73,097		81		131,557		27,475
Other income/(expense)		143		839		(13,289)		1,875
Income before interest expense and income taxes		73,240		920		118,268		29,350
Interest expense		(8,881)		(17,443)		(20,890)		(34,976)
Income/(loss) before income taxes		64,359		(16,523)		97,378		(5,626)
Income tax provision		(1)		-		(1)		-
Net Income/(loss)	$	64,358	$	(16,523)	$	97,377	$	(5,626)

Weighted Average Number of Common Shares Outstanding:
Basic		28,469,969		29,220,345		28,812,299		29,200,897
Diluted		28,639,780		29,220,345		28,989,146		29,200,897

Per Share Amounts:
Basic net income/(loss) per share	$	2.26	$	(0.57)	$	3.37	$	(0.19)
Diluted net income/(loss) per share	$	2.24	$	(0.57)	$	3.35	$	(0.19)

Consolidated Balance Sheets
($ in thousands)
		June 30,		December 31,
		2020		2019
		(Unaudited)		(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$	128,063	$	89,671
Voyage receivables		100,876		83,845
Other receivables		5,003		3,938
Inventories		1,878		3,896
Prepaid expenses and other current assets		6,412		5,994
Total Current Assets		242,232		187,344

Restricted Cash		16,398		60,572
Vessels and other property, less accumulated depreciation		1,287,478		1,292,516
Deferred drydock expenditures, net		28,115		23,125
Total Vessels, Deferred Drydock and Other Property		1,315,593		1,315,641
Operating lease right-of-use assets		26,386		33,718
Investments in and advances to affiliated companies		155,191		153,292
Other assets		3,156		2,934
Total Assets	$	1,758,956	$	1,753,501

LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable, accrued expenses and other current liabilities	$	29,424	$	27,554
Current portion of operating lease liabilities		10,411		12,958
Current installments of long-term debt		81,483		70,350
Current portion of derivative liability		9,227		3,614
Total Current Liabilities		130,545		114,476
Long-term operating lease liabilities		13,504		17,953
Long-term debt		523,414		590,745
Long-term derivative liability		18,191		6,545
Other liabilities		1,249		1,489
Total Liabilities		686,903		731,208

Equity:
Total Equity		1,072,053		1,022,293
Total Liabilities and Equity	$	1,758,956	$	1,753,501



Consolidated Statements of Cash Flows
($ in thousands)
		Six Months Ended June 30,
		2020		2019
		(Unaudited)		(Unaudited)
Cash Flows from Operating Activities:
Net income/(loss)	$	97,377	$	(5,626)
Items included in net income/(loss) not affecting cash flows:
Depreciation and amortization		37,147		37,747
Loss on write-down of vessels and other assets		5,469		-
Amortization of debt discount and other deferred financing costs		1,708		3,560
Deferred financing costs write-off		12,501		-
Stock compensation, non-cash		2,503		1,821
Earnings of affiliated companies		(10,209)		(16,367)
Change in fair value of interest rate collar recorded through earnings		1,271		-
Other – net		512		227
Items included in net income/(loss) related to investing and financing activities:
(Gain)/loss on disposal of vessels and other property, net		(4,139)		1,500
Loss on extinguishment of debt		1,014		-
Cash distributions from affiliated companies		5,250		6,528
Payments for drydocking		(12,513)		(10,878)
Insurance claims proceeds related to vessel operations		570		640
Changes in operating assets and liabilities		(10,771)		24,626
Net cash provided by operating activities		127,690		43,778
Cash Flows from Investing Activities:
Expenditures for vessels and vessel improvements		(40,949)		(5,356)
Proceeds from disposal of vessels and other property		13,578		9,090
Expenditures for other property		(348)		(301)
Investments in and advances to affiliated companies, net		(46)		434
Repayments of advances from affiliated companies		-		5,272
Net cash (used in)/provided by investing activities		(27,765)		9,139
Cash Flows from Financing Activities:
Issuance of debt, net of issuance and deferred financing costs		362,989		-
Extinguishment of debt		(382,699)		-
Payments on debt		(51,266)		(19,652)
Cash dividends paid		(3,412)		-
Repurchases of common stock		(29,997)		-
Cash paid to tax authority upon vesting of stock-based compensation		(1,200)		(359)
Other – net		(122)		(258)
Net cash used in financing activities		(105,707)		(20,269)
Net (decrease)/increase in cash, cash equivalents and restricted cash		(5,782)		32,648
Cash, cash equivalents and restricted cash at beginning of year		150,243		117,644
Cash, cash equivalents and restricted cash at end of period	$	144,461	$	150,292

Spot and Fixed TCE Rates Achieved and Revenue Days
The following tables provides a breakdown of TCE rates achieved for spot and fixed charters and the related revenue days for the three months ended June 30, 2020 and the comparable period of 2019. Revenue days in the quarter ended June 30, 2020 totaled 3,241 compared with 3,430 in the prior year quarter. A summary fleet list by vessel class can be found later in this press release. The information in these tables excludes commercial pool fees/commissions averaging approximately $719 and $803 per day for the three months ended June 30, 2020 and 2019, respectively.



		Three Months Ended June 30, 2020					Three Months Ended June 30, 2019
		Spot		Fixed	Total		Spot		Fixed	Total
Crude Tankers
VLCC
Average TCE Rate	$	71,747	$	67,214		$	20,038	$	-
Number of Revenue Days		719		261	980		1,065		-	1,065
Suezmax
Average TCE Rate	$	48,989	$	-		$	20,772	$	-
Number of Revenue Days		180		-	180		182		-	182
Aframax
Average TCE Rate	$	30,559	$	-		$	13,540	$	-
Number of Revenue Days		334		-	334		318		-	318
Panamax
Average TCE Rate	$	35,049	$	16,258		$	12,095	$	13,199
Number of Revenue Days		91		540	631		113		486	599
*Total Crude Tankers Revenue Days*		1,324		801	2,125		1,678		486	2,164
Product Carriers
LR2
Average TCE Rate	$	38,933	$	-		$	17,746	$	-
Number of Revenue Days		91		-	91		72		-	72
LR1
Average TCE Rate	$	30,851	$	-		$	17,271	$	-
Number of Revenue Days		545		-	545		347		-	347
MR
Average TCE Rate	$	17,168	$	-		$	11,571	$	-
Number of Revenue Days		480		-	480		847		-	847
*Total Product Carriers Revenue Days*		1,116		-	1,116		1,266		-	1,266
Total Revenue Days		2,440		801	3,241		2,944		486	3,430

Revenue days in the above table exclude days related to full service lighterings and days for which recoveries were recorded under the Company’s loss of hire insurance policies.

Fleet Information
As of June 30, 2020, INSW’s owned and operated 40 vessels, 34 of which were owned, 4 of which were chartered in, and 2 FSOs were held through joint venture partnerships.


	Vessels Owned		Vessels Chartered-in		Total at June 30, 2020
Vessel Type	Number	Weighted by Ownership	Number	Weighted by Ownership	Total Vessels	Vessels Weighted by Ownership	Total Dwt
Operating Fleet
FSO	2	1.0	-	-	2	1.0	864,046
VLCC	13	13.0	-	-	13	13.0	3,947,222
Suezmax	2	2.0	-	-	2	2.0	316,864
Aframax	2	2.0	2	2.0	4	4.0	450,804
Panamax	7	7.0	-	-	7	7.0	487,365
Crude Tankers	26	25.0	2	2.0	28	27.0	6,066,301

LR2	1	1.00	-	-	1	1.0	112,691
LR1	5	5.00	1	1.0	6	6.0	443,077
MR	4	4.00	1	1.0	5	5.0	252,443
Product Carriers	10	10.00	2	2.0	12	12.0	808,211



Total Operating Fleet	36	35.0	4	4.0	40	39.0	6,874,512

Reconciliation to Non-GAAP Financial

Contacts

Investor Relations & Media Contact:
David Siever, International Seaways, Inc.
(212) 578-1635
This email address is being protected from spambots. You need JavaScript enabled to view it.

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