Business Wire News

The Low-Carbon Resources Initiative is part of Exelon’s commitment to advancing clean-energy solutions to benefit customers and communities

CHICAGO--(BUSINESS WIRE)--Exelon Corporation today announced its sponsorship of an Electric Power Research Institute (EPRI) and Gas Technology Institute (GTI) five-year initiative to accelerate the development and demonstration of low-carbon energy technologies. Exelon’s sponsorship of the Low-Carbon Resources Initiative (LCRI) is part of the company’s commitment to collaboration between the electric, gas and generation sectors to advance clean-energy solutions for customers and communities.


Through its sponsorship of the Low-Carbon Resources Initiative, Exelon will advance clean energy research and development across the electric and gas sectors. The LCRI seeks to identify and accelerate fundamental development of promising technologies, demonstrate and assess the performance of key technologies and processes, and inform key stakeholders and the public about technology options and pathways to a potential low-carbon future.

“As America’s largest clean energy company, Exelon is ideally suited to join forces with LCRI to advance deep decarbonization technologies,” said Ken Cornew, president and CEO, Exelon Generation, and a member of the EPRI board. “We are leveraging cutting-edge research, technology and innovation every day to power a low-carbon future for our customers and communities, and this initiative will align and multiply our industry’s collective efforts to work toward a healthier planet.”

Sponsorship of the Low-Carbon Resources Initiative is the latest in a series of ongoing commitments Exelon has made to lead on clean energy solutions and innovation to combat the impact of climate change. Exelon’s six electric and gas utilities – serving 10 million customers --announced this summer that they will electrify half of their vehicle fleet by 2030. This past year, Exelon announced its new $20 million Climate Change Investment Initiative to cultivate startups working on new technologies to reduce greenhouse gas emissions and mitigate climate change.

“To achieve a clean energy future, we need to look at all options, including new technologies,” said Calvin Butler, Exelon Utilities CEO. “Every day, our employees are reimagining the energy future across our electric and gas utilities, because we know we must drive progress to ensure our customers have equitable access to clean energy solutions. The work that EPRI and GTI are doing with the Low-Carbon Resources Initiative will help us bring that innovation to fruition in the years ahead.”

Learn more about the LCRI at LowCarbonLCRI.com

About Exelon

Exelon Corporation (Nasdaq: EXC) is a Fortune 100 energy company with the largest number of electricity and natural gas customers in the U.S. Exelon does business in 48 states, the District of Columbia and Canada and had 2019 revenue of $34 billion. Exelon serves approximately 10 million customers in Delaware, the District of Columbia, Illinois, Maryland, New Jersey and Pennsylvania through its Atlantic City Electric, BGE, ComEd, Delmarva Power, PECO and Pepco subsidiaries. Exelon is one of the largest competitive U.S. power generators, with more than 31,000 megawatts of nuclear, gas, wind, solar and hydroelectric generating capacity comprising one of the nation’s cleanest and lowest-cost power generation fleets. The company’s Constellation business unit provides energy products and services to approximately 2 million residential, public sector and business customers, including three fourths of the Fortune 100. Follow Exelon on Twitter @Exelon.


Contacts

Bill Gibbons
708-932-6123
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MADISON, Wis.--(BUSINESS WIRE)--MGE Energy, Inc. (Nasdaq: MGEE) today reported financial results for the second quarter of 2020.


MGE Energy's earnings for the second quarter of 2020 were $18.8 million, or 53 cents per share, compared to $15.5 million, or 45 cents per share, for the same period in the prior year.

During the second quarter of 2020, electric net income increased $2.3 million compared to the second quarter of 2019 primarily due to Allowance for funds used during construction (AFUDC) earned from the construction of Two Creeks and Badger Hollow I and II solar generation projects and savings in operating and maintenance costs. AFUDC equity for the Two Creeks and Badger Hollow I and II solar projects increased $1.0 million compared to the same period in the prior year.

A reduction of retail sales driven by the impacts of COVID-19 and associated governmental regulations negatively impacted electric earnings in the second quarter of 2020. Electric commercial retail sales dropped approximately 10% in the second quarter of 2020 compared to the same period in the prior year. However, some businesses shifted their workforce to a remote work environment which led to higher residential sales. Warmer weather primarily in June of 2020 also contributed to increased electric residential sales and mitigated the impact of COVID-19. Second quarter electric residential sales increased by approximately 20% compared to the second quarter of 2019.

Gas net income in the second quarter of 2020 remained relatively flat compared to the second quarter of 2019.

The situation around the COVID-19 pandemic remains fluid. We have been subject to, and are following, local, state and federal public health and safety regulations and guidance to address the pandemic. We have operated continuously throughout the pandemic and have not suffered any material disruptions in service or employment. We continue to monitor the situation and manage our response.

 

MGE Energy, Inc.

 

 

(In thousands, except per share amounts)

 

 

(Unaudited)

 

 

 

 

 

 

 

 

Three Months Ended June 30,

2020

 

2019

 

 

Operating revenue

$117,040

 

$122,147

 

 

Operating income

$21,520

 

$19,783

 

 

Net income

$18,791

 

$15,548

 

 

Earnings per share (basic and diluted)

$0.53

 

$0.45

 

 

Weighted average shares outstanding (basic and diluted)

35,441

 

34,668

 

 

 

 

 

 

 

 

Six Months Ended June 30,

2020

 

2019

 

 

Operating revenue

$266,913

 

$289,716

 

 

Operating income

$52,960

 

$50,293

 

 

Net income

$44,828

 

$39,554

 

 

Earnings per share (basic and diluted)

$1.28

 

$1.14

 

 

Weighted average shares outstanding (basic and diluted)

35,054

 

34,668

 

About MGE Energy

MGE Energy is a public utility holding company. Its principal subsidiary, Madison Gas and Electric, generates and distributes electricity to 155,000 customers in Dane County, Wis., and purchases and distributes natural gas to 163,000 customers in seven south-central and western Wisconsin counties. MGE's roots in the Madison area date back more than 150 years.

Forward-looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such statements include the risks and uncertainties related to the COVID-19 pandemic. Such forward-looking statements are based on MGE Energy's current expectations, estimates and assumptions regarding future events, which are inherently uncertain. We caution you not to place undue reliance on any forward-looking statements, which are made as of the date of this press release. We undertake no obligation to revise or update publicly any such forward-looking statements to reflect any change in expectations or in events, conditions or circumstances on which any such statements may be based. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to our business in general, please refer to the "Risk Factors" sections in our Annual Report on Form 10-K for the year ended December 31, 2019 and our Quarterly Report on Form 10-Q during the three and six months ended June 30, 2020, filed with the Securities and Exchange Commission.


Contacts

Kaya Freiman
Corporate Communications Manager
608-252-7276 | This email address is being protected from spambots. You need JavaScript enabled to view it.

Ken Frassetto
Investor Relations
608-252-4723 | This email address is being protected from spambots. You need JavaScript enabled to view it.

LONDON--(BUSINESS WIRE)--#DrillingBitsMarketinOilandGas--Technavio has been monitoring the drilling bits market in oil and gas and it is poised to grow by USD 1.38 billion during 2020-2024, progressing at a CAGR of almost 7% during the forecast period. The report offers an up-to-date analysis regarding the current market scenario, latest trends and drivers, and the overall market environment.



Although the COVID-19 pandemic continues to transform the growth of various industries, the immediate impact of the outbreak is varied. While a few industries will register a drop in demand, numerous others will continue to remain unscathed and show promising growth opportunities. Technavio’s in-depth research has all your needs covered as our research reports include all foreseeable market scenarios, including pre- & post-COVID-19 analysis. Download a Free Sample Report on COVID-19 Impacts

The market is fragmented, and the degree of fragmentation will accelerate during the forecast period. Atlas Copco AB, Baker Hughes Co., Bellwether Resources International Inc., Bit Brokers International Ltd., Caterpillar Inc., Drill King International LP, Drilling Products Inc., Halliburton Co., National Oilwell Varco Inc., and Sandvik AB 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.

Buy 1 Technavio report and get the second for 50% off. Buy 2 Technavio reports and get the third for free.

View market snapshot before purchasing

Increased use of horizontal and multilateral wells has been instrumental in driving the growth of the market.

Technavio's custom research reports offer detailed insights on the impact of COVID-19 at an industry level, a regional level, and subsequent supply chain operations. This customized report will also help clients keep up with new product launches in direct & indirect COVID-19 related markets, upcoming vaccines and pipeline analysis, and significant developments in vendor operations and government regulations.

Drilling Bits Market in Oil and Gas 2020-2024: Segmentation

Drilling Bits Market in Oil and Gas is segmented as below:

  • Product
    • Fixed Cutter Bits
    • Roller Cone Cutter Bits
  • Application
    • Onshore
    • Offshore
  • Geography
    • North America
    • MEA
    • APAC
    • Europe
    • 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=IRTNTR41458

Drilling Bits Market in Oil and Gas 2020-2024: Scope

Technavio presents a detailed picture of the market by the way of study, synthesis, and summation of data from multiple sources. The drilling bits market in oil and gas report covers the following areas:

  • Drilling Bits Market in Oil and Gas Size
  • Drilling Bits Market in Oil and Gas Trends
  • Drilling Bits Market in Oil and Gas Industry Analysis

This study identifies the migration of drilling activities into unconventional areas as one of the prime reasons driving the growth of drilling bits market in oil and gas during the next few years.

Technavio suggests three forecast scenarios (optimistic, probable, and pessimistic) considering the impact of COVID-19. Technavio’s in-depth research has direct and indirect COVID-19 impacted market research reports.

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Drilling Bits Market in Oil and Gas 2020-2024: Key Highlights

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

Table of Contents:

Executive Summary

  • Market Overview

Market Landscape

  • Market ecosystem
  • Value chain analysis

Market Sizing

  • Market definition
  • Market segment analysis
  • Market size 2019
  • Market outlook: Forecast for 2019 - 2024

Five Forces Analysis

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

Market Segmentation by Product

  • Market segments
  • Comparison by Product
  • Fixed cutter bits - Market size and forecast 2019-2024
  • Roller cone cutter bits - Market size and forecast 2019-2024
  • Market opportunity by Product

Market Segmentation by Application

  • Market segments
  • Comparison by Application
  • Onshore - Market size and forecast 2019-2024
  • Offshore - Market size and forecast 2019-2024
  • Market opportunity by Application

Customer landscape

  • Overview

Geographic Landscape

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

Drivers, Challenges, and Trends

  • Market drivers
  • Volume driver - Demand led growth
  • Volume driver - Supply led growth
  • Volume driver - External factors
  • Volume driver - Demand shift in adjacent markets
  • Price driver - Inflation
  • Price driver - Shift from lower to higher-priced units
  • Market challenges
  • Market trends

Vendor Landscape

  • Overview
  • Landscape disruption
  • Vendor Analysis

Vendors covered

  • Market positioning of vendors
  • Atlas Copco AB
  • Baker Hughes Co.
  • Bellwether Resources International Inc.
  • Bit Brokers International Ltd.
  • Caterpillar Inc.
  • Drill King International LP
  • Drilling Products, Inc.
  • Halliburton Co.
  • National Oilwell Varco Inc.
  • Sandvik AB

Appendix

  • Scope of the report
  • Currency conversion rates for US$
  • Research methodology
  • List of abbreviations

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
US: +1 844 364 1100
UK: +44 203 893 3200
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Website: www.technavio.com/

 


NEW YORK--(BUSINESS WIRE)--SER Capital Partners, LLC (“SER”), a sustainable-investment focused private equity firm, has acquired Microgrid Networks, LLC (“Microgrid Networks”), a well-established advanced distributed power company, in June 2020 to install battery energy storage and solar in high demand, congested urban areas, such as New York City.

“We see Microgrid Networks’ unique siting technology, skillset, and assets as increasingly essential for local reliability and resiliency. By installing, owning, and operating a portfolio of storage assets, we also help New York achieve its goals to integrate additional renewables, offset regionwide fossil-fueled pollutants, and provide economic benefits and jobs to the region,” noted Rahul Advani, Managing Partner and founder of SER.

Sara Graziano, Partner of SER and Microgrid Networks board member, added: “We are grateful to partner with the talented team leading Microgrid Networks to invest in New York City. Pairing our deep experience optimizing battery and electricity storage with Microgrid Networks’s local expertise creates a rare opportunity to economically and sustainably deliver reliable, resilient energy solutions while offering significant benefits in New York.”

In closing on its first vehicle with institutional limited partners, SER has distinguished itself as a credible partner to management teams seeking certainty of execution and to limited partner investors seeking private equity investment opportunities tied to sustainability. SER intends to continue to directly originate and execute private equity investments within its targeted areas of focus.

Metric Point Capital acted as the exclusive placement agent for the fundraise.

About Microgrid Networks

MicroGrid Networks develops, finances, and operates clean energy facilities that are monitored and managed as an advanced energy network. The company is currently deploying a network of advanced, resilient clean energy generation and storage facilities in the dense urban coastal environments of New York City. Its attractive, quiet and modular facilities are designed to provide resiliency and load relief to utility distribution networks, mitigate risks to life and property from extreme weather and tidal events, increase the local supply of cost-competitive energy, drive investment and employment in the neighborhoods where they are located and directly assist the State and City of New York in meeting their greenhouse gas reduction goals. More is available at www.mgilp.com.

About SER Capital Partners

SER Capital Partners is an independent middle-market private equity firm dedicated to investing in North American sustainable industrial, environmental, and renewable businesses. Over the past two decades, its team members have amassed successful experience in its targeted sectors as private equity investors and senior executives at both private and public businesses. Its investment team averages over a decade of experience working together with its founder. The firm’s professionals coalesced on their conviction on the market opportunity, investment strategy, and ability to create attractive investments while authentically measuring sustainability. As experienced and dedicated private sustainability investors, SER team members are also committed to aligning interests across its investors, team members, portfolio companies, and communities. More is available at www.sercapitalpartners.com.

About Metric Point Capital (Member FINRA and SIPC)

Metric Point Capital (“Metric Point”) is a capital advisory and placement firm specializing in raising institutional capital for alternative investment managers. Fund and co-investment assignments include leveraged buyouts, energy, real estate, infrastructure, royalties, mining, credit, and distressed debt, among others. Metric Point advises on all aspects of the fundraising process, including competitive positioning, preparation of marketing materials, comprehensive strategic fundraising planning, and distribution. The firm has professionals located in New York, Stamford, Chicago, Los Angeles, and Austin.


Contacts

Rahul Advani
SER Managing Partner
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(415) 873-1015

Sara Graziano
SER Partner
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(212) 482-2118

Alex Leykikh
Metric Point Partner
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(860) 478-7359

HOUSTON--(BUSINESS WIRE)--Calpine Corporation (“Calpine”) announced today that it has received, pursuant to its previously announced cash tender offers to purchase any and all of its outstanding 5.500% Senior Notes due 2024 (CUSIP No.131347 CJ3) (the “2024 Notes”) and 5.750% Senior Notes due 2025 (CUSIP No. 131347 CF1) (the “2025 Notes” and, together with the 2024 Notes, the “Notes”) and solicitation of consents related to the 2024 Notes (the “2024 Consents”) and the 2025 Notes (the “2025 Consents” and, together with the 2024 Consents, the “Consents”), the requisite consents to adopt the proposed amendments to each of the indenture governing the 2024 Notes and the indenture governing the 2025 Notes.


Consents have been delivered with respect to $255,389,000 principal amount, or approximately 54.10% of the outstanding principal amount, of the 2024 Notes and $1,044,758,000 principal amount, or approximately 88.35% of the outstanding principal amount, of the 2025 Notes, which Notes had been validly tendered (and not validly withdrawn) as of 5:00 p.m., New York City Time, on August 7, 2020 (the “Early Tender Date”). In conjunction with receiving the requisite consents for each series of Notes, a supplemental indenture with respect to each series of Notes to effect the applicable proposed amendments described in the Offers to Purchase and Consent Solicitation Statement, dated July 27, 2020, as supplemented by the Supplement to the Offers to Purchase and Consent Solicitation dated July 27, 2020 (as so supplemented, the “Offers to Purchase”), has been executed. A holder’s right to validly withdraw tendered applicable Notes and validly revoke delivered related consents expired at 5:00 p.m., New York City Time, on August 7, 2020.

Calpine also announced today that it has accepted for purchase tenders of $255,389,000 aggregate principal amount of the 2024 Notes and $1,044,758,000 aggregate principal amount of the 2025 Notes, which Notes were tendered at or prior to the Early Tender Date, pursuant to the applicable Offer and related Consent Solicitation. Holders who validly tendered and did not withdraw such Notes prior to the Early Tender Date will receive $1,015.35 per $1,000 principal amount of 2024 Notes and $1,028.75 per $1,000 principal amount of 2025 Notes accepted for purchase pursuant to the applicable Offer and related Consent Solicitation, plus accrued and unpaid interest from the last interest payment date to, but not including, August 10, 2020.

Following the acceptance for purchase of tendered Notes described above, Calpine mailed today notices of redemption to the holders of the Notes that remain outstanding to redeem such Notes on August 12, 2020. The redemption price for the 2024 Notes is 101.375% of the principal amount and the redemption price for the 2025 Notes is 102.875% of the principal amount, plus accrued and unpaid interest thereon to, but excluding, the redemption date.

Credit Suisse Securities (USA) LLC has been retained as the dealer manager. D.F. King & Co., Inc. has been retained to serve as both the tender agent and the information agent. Persons with questions regarding the Offers and the Consent Solicitations should contact Credit Suisse Securities (USA) LLC at (800) 820-1653 (toll free) or (212) 325-2476 (collect). Copies of the Offers to Purchase and other related materials may be obtained online at www.dfking.com/calpine or by contacting D.F. King & Co., Inc. at (toll-free) (800) 431-9646 or (collect) (212) 269-5550 or email: This email address is being protected from spambots. You need JavaScript enabled to view it..

None of Calpine or its affiliates, its board of directors, the dealer manager, the tender agent and the information agent or the trustee for the Notes makes any recommendation as to whether holders of the Notes should tender or refrain from tendering the Notes.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the Notes or to buy or sell any other securities. The Offers and the Consent Solicitations are made only through the Offers to Purchase and the Supplement. The Offers and the Consent Solicitations are not being made to holders of Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky and other laws of such jurisdiction. In any jurisdiction in which the Offers and the Consent Solicitations are required to be made by a licensed broker or dealer, the Offers and the Consent Solicitations will be deemed to be made on behalf of Calpine by the dealer manager or one or more registered brokers or dealers that are licensed under the laws of such jurisdiction. This press release shall not constitute a notice of redemption of either the 2024 Notes or the 2025 Notes.

About Calpine

Calpine Corporation is America’s largest generator of electricity from natural gas and geothermal resources with operations in competitive power markets. Our fleet of 77 power plants, including one under construction, represents over 26,000 megawatts of generation capacity. Through wholesale power operations and our retail businesses, Calpine Energy Solutions and Champion Energy, we serve customers in 23 states in the United States and in Canada and Mexico. Our clean, efficient, modern and flexible fleet uses advanced technologies to generate power in a low-carbon and environmentally responsible manner. We are uniquely positioned to benefit from the secular trends affecting our industry, including the abundant and affordable supply of clean natural gas, environmental regulation, aging power generation infrastructure and the increasing need for dispatchable power plants to successfully integrate intermittent renewables into the grid.

Forward-Looking Information

In addition to historical information, this release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We use words such as “believe,” “intend,” “expect,” “anticipate,” “plan,” “may,” “will,” “should,” “estimate,” “potential,” “project” and similar expressions to identify forward-looking statements. Such statements include, among others, those concerning our expected financial performance and strategic and operational plans, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. We believe that the forward-looking statements are based upon reasonable assumptions and expectations. However, you are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties could cause actual results to differ materially from those anticipated in the forward-looking statements. Please see the risks identified in this release or in Calpine’s reports and registration statements filed with the Securities and Exchange Commission, including, without limitation, the risk factors identified in its Annual Report on Form 10-K for the year ended December 31, 2019 and Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020. These filings are available by visiting the Securities and Exchange Commission’s website at www.sec.gov or Calpine’s website at www.calpine.com. Given the risks and uncertainties surrounding forward-looking statements, you should not place undue reliance on these statements. Many of these factors are beyond our ability to control or predict. Our forward-looking statements speak only as of the date of this release. Actual results or developments may differ materially from the expectations expressed or implied in the forward-looking statements, and, other than as required by law, Calpine undertakes no obligation to update or revise any such statements, whether as a result of new information, future events, or otherwise.


Contacts

Media Contact:
Brett Kerr
Vice President, External Affairs
713-830-8809
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Investor Contact:
W. Bryan Kimzey
Senior Vice President, Finance & Treasurer
713-830-8775
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More than 10,000 strikes to Colorado underground utilities in 2019, according to Colorado811.org

DENVER--(BUSINESS WIRE)--Phillips 66 hopes that the 8/11 date on the calendar will serve as a reminder to call 811 to have underground utility lines marked prior to any digging project. The company operates 625 miles of underground petroleum pipelines in Colorado, and 13,000 miles of pipelines throughout the United States.


Every few minutes, an underground utility line is damaged because someone decided to dig without first contacting 811. Striking a single line can cause injury, repair costs, inconvenient outages and fines. In 2019, Colorado excavators reported 10,934 damages including 836 in Adams, 850 in Weld, 868 in Arapahoe, and 878 in Denver counties. Additional statics are available at https://colorado811.org/center-stats/statewide-damage-stats/.

“On August 11, and throughout the year, we remind homeowners and professional contractors alike to use the free 811 service two working days before digging to reduce the risk of striking an underground utility line,” said Todd Denton, president, Phillips 66 Pipeline LLC. “Every digging project, no matter how large or small, warrants contacting 811. Installing a mailbox, building a fence, planting a tree and laying a patio are just some examples of digging projects that need a call to 811 before starting.”

When calling 811, homeowners and contractors are connected to Colorado 811, the local one call center, which notifies the appropriate utility companies of their intent to dig. Requests can also be made online at Colorado811.org. Professional locators then arrive at the digging site to mark the approximate locations of underground lines with flags, spray paint or both.

Visit www.call811.com or Colorado811.org for more information about 811 and safe digging practices. Or visit www.phillips66pipeline.com to learn more about how we keep pipelines and people safe.


Contacts

Jill Sweeney
713-597-9708
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DUBLIN--(BUSINESS WIRE)--The "Middle-East Wireline Services Market - Growth, Trends, and Forecasts (2020 - 2025)" report has been added to ResearchAndMarkets.com's offering.


The oil and gas well logging services market is expected to grow at a CAGR of 2.62% during the forecast period.

Factors, such as increasing demand for oil and natural gas and increasing investments in the upstream oil and gas sectors across the region, are expected to drive the number of exploration and production activities, thereby driving the wireline services market during the forecast period.

However, the crude oil prices have been highly volatile between 2019 and the start of 2020, fluctuating between USD 60 per barrel and USD 25 per barrel by the start of 2020. This volatility of oil prices remains a growing concern for the upstream industry. Hence, this is expected to hinder the market during the forecast period.

Companies Mentioned

  • Schlumberger Limited
  • Halliburton Company
  • Baker Hughes Company
  • Expro Group
  • ADES International
  • OilServ FZCO

Key Market Trends

Offshore to Dominate the Market

  • The offshore oil and gas drilling sector had been subdued in the past few years, mainly due to the crude oil price being lower than the breakeven price of several offshore oil and gas fields. As a result, the demand in the oil and gas wireline services market was negatively impacted.
  • The Brent crude oil price started showing signs of improvement after mid-2016 and remained well above USD 60 per barrel throughout 2018. This, coupled with the cost reduction program of upstream oil and gas companies, resulted in gaining the confidence of investors for final investment decisions for projects, which got canceled during the low commodity price environment.
  • For instance, in May 2019, Dana announced that it had commenced the drilling operations at its Merak-1 well, offshore Egypt, located in the North El Arish concession, also known as Block 6. This block is in the Eastern Mediterranean Basin, where other world-class giant natural gas discoveries have been made in recent years.
  • However, on the flip side, in the early 2020, the oil prices got severely affected by the several OPEC deal cancellation and excessive crude oil and gas flow in the international market. Which is expected to slow down the investment in both offshore and onshore region.

Saudi Arabia to Dominate the Market

  • The Kingdom of Saudi Arabia is one of the biggest global oil producers, with the production of 12.3 million barrels per day in 2018.
  • The Kingdom of Saudi Arabia holds the second-largest proven oil reserves in the world after Venezuela. Saudi Aramco, the country's largest oil and gas company, is continuously engaged in exploration and development, in order to compensate for declining fields elsewhere.
  • The crude oil production rate has been consistent in Saudi Arabia, even during the distressful period in the industry, when crude oil prices plunged to a very low level in recent years.
  • Further, oil and gas drilling activity in Saudi Arabia is anticipated to increase on account of government policy to drive the oil and gas production in the country. The policy to drive upstream activity will likely promulgate the oil and gas wireline services market in the near future.
  • For instance, in February 2019, ADES International, an oil and gas drilling and production company, received two onshore drilling contracts in Saudi Arabia worth USD 150 million. Each secured contract has a tenure of seven years, with five fixed years and two years of optional terms.

 

Key Topics Covered:

 

1 INTRODUCTION

 

2 EXECUTIVE SUMMARY

 

3 RESEARCH METHODOLOGY

 

4 MARKET OVERVIEW

4.1 Introduction

4.2 Market Size and Demand Forecast in USD billion, till 2025

4.3 Onshore and Offshore Active Rig Count and Forecast, till 2025

4.4 Major Upcoming Upstream Projects

4.5 Recent Trends and Developments

4.6 Government Policies and Regulations

4.7 Market Dynamics

4.7.1 Drivers

4.7.2 Restraints

4.8 Supply Chain Analysis

4.9 Porter's Five Forces Analysis

 

5 MARKET SEGMENTATION AND ANALYSIS (Qualitative Analysis)

5.1 Deployment

5.1.1 Onshore

5.1.2 Offshore

5.2 Type

5.2.1 Electric Line

5.2.2 Slick Line

5.3 Hole Type

5.3.1 Open Hole

5.3.2 Cased Hole

5.4 Geography

5.4.1 Saudi Arabia

5.4.2 Iran

5.4.3 United Arab Emirates

5.4.4 Rest of Middle-East

 

6 COMPETITIVE LANDSCAPE

6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

6.2 Strategies Adopted by Leading Players

6.3 Company Profiles

 

7 MARKET OPPORTUNITIES AND FUTURE TRENDS

For more information about this report visit https://www.researchandmarkets.com/r/44j2yb.


Contacts

ResearchAndMarkets.com
Laura Wood, Senior Press Manager
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Antelope Valley Swainson’s Hawk Study and Conservation Action Agreement

SAN DIEGO--(BUSINESS WIRE)--EDF Renewables North America (EDFR), National Audubon Society (Audubon), and Defenders of Wildlife (Defenders) today announced a Swainson’s Hawk Study and Conservation Action Agreement that exemplifies the shared goals and collaboration necessary to develop renewable energy to meet California’s 100% goal while conserving important wildlife and their habitat.


Eastern Kern County is home to important species and natural resources including the Swainson’s Hawk. Audubon has identified Swainson’s Hawk as a priority species for conservation in California, and in partnership with Defenders, has been pursuing efforts to conserve the species in the Antelope Valley and Kern County since 2012.

The Collaborative Agreement, funded by EDF Renewables, will have multiple benefits, including:

  • Updating scientific information concerning the Swainson’s Hawk nesting and foraging status and distribution in the Antelope Valley of Kern County;
  • Providing information needed to develop a Swainson’s Hawk conservation strategy for this region; and,
  • Establishing a Swainson’s Hawk Conservation Fund to implement conservation actions recommended by the conservation strategy.

EDF Renewables is committed to providing solutions to meet California’s goal of 60% renewable energy generation by 2030 and 100% by 2045. EDFR has a long and positive history in Eastern Kern County where since 2004, EDFR has developed over 1.3 gigawatts of wind and solar projects. Its continued success is derived from developing renewable energy projects that are not only complementary to existing land use but also respect local natural resources through effective siting techniques and mitigation measures.

Pamela Flick, California Program Director, Defenders of Wildlife, said, “Defenders is pleased to join with EDFR and Audubon in this collaborative effort to protect Swainson’s Hawk while facilitating the development of clean renewable energy. Our world is facing the dual crises of biodiversity loss and climate change and any efforts to address both issues is a win for wildlife and people.”

Garry George, Director, Clean Energy Initiative, National Audubon Society, commented, “EDFR joins the list of responsible renewable energy developers who see the value of two outcomes of their projects – emissions reduction and conservation of species. Their contribution is not mitigation and is not required. EDFR is providing the funding because they care and are interested in conservation in the area they are developing.”

Devon Muto, Director of Solar Development, West Region at EDFR added, “We are pleased to be partnering with Audubon and Defenders to advance the science on this important species and establish a Conservation Fund that can support immediate and lasting conservation actions in this region that will have co-benefits beyond the Swainson’s Hawk.”

About EDF Renewables:

EDF Renewables is a market leading independent power producer and service provider with 35 years of expertise in renewable energy. The Company delivers grid-scale power: wind (onshore and offshore), solar photovoltaic, and storage projects; distributed solutions: solar, solar+storage, EV charging and energy management; and asset optimization: technical, operational, and commercial skills to maximize performance of generating projects. EDF Renewables’ North American portfolio consists of 16 GW of developed projects and 10 GW under service contracts. EDFR is a subsidiary of EDF Renouvelables, the dedicated renewable energy affiliate of the EDF Group.

For more information visit: www.edf-re.com

About Defenders of Wildlife:

Defenders of Wildlife is dedicated to the protection of all native animals and plants in their natural communities. With over 1.8 million members and activists, Defenders of Wildlife is a leading advocate for innovative solutions to safeguard our wildlife heritage for generations to come. For more information, visit https://defenders.org/newsroom and follow us on Twitter @Defenders.

About Audubon:

The National Audubon Society protects birds and the places they need, today and tomorrow. Audubon works throughout the Americas using science, advocacy, education, and on-the-ground conservation. State programs, nature centers, chapters, and partners give Audubon an unparalleled wingspan that reaches millions of people each year to inform, inspire, and unite diverse communities in conservation action. A nonprofit conservation organization since 1905, Audubon believes in a world in which people and wildlife thrive. Learn more at www.audubon.org and on Facebook, Twitter and Instagram at @audubonsociety.


Contacts

EDF Renewables Media Contact
Sandi Briner
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Defenders of Wildlife Media Contact:
Rebecca Bullis, +1 202-772-0295
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National Audubon Society Media Contact:
Chandler Lennon +1 212-979-3063 (work); +1 804-832-0832 (cell)
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DUBLIN--(BUSINESS WIRE)--The "2025 Vision: Future of Pumps in a Connected World" report has been added to ResearchAndMarkets.com's offering.


This study forecasts the future of the pumps industry amidst the onset of a new wave of digitalization and the Industrial Internet of Things (IIoT).

The changing market conditions influenced by demand-supply shock, oil price volatility, political tension, and shift in customer preferences are making pump manufacturers revisit their value proposition. In a mature and fragmented industry like pumps where growth from pump equipment remains in the single digit, pump OEMs have started to observe a spike in demand for aftermarket services. This spike also indicates a shift in pump OEMs' role from being mere product suppliers to a thought-partner enabling end-users in their digital transformation journey to collaboratively build a connected ecosystem. The pumps market, valued at ~$38.34 billion in 2019, is expected to discover new growth opportunities by expanding its service capabilities with IIoT technologies and move beyond standard aftermarket services.

In this pump visionary study, we have identified the top 5 global Mega Trends and assessed their implication for the pumps industry. The study also discusses the market size and offers a breakdown by region, product segment, and end-user industry. To understand the role of services in the pump market, the study also includes revenue potential from the services segment. An overview of the key market participants, their product offering, and their market positioning have been provided in this report.

The publisher has identified the top 4 innovative business models that pump OEMs can implement by investing and integrating IIoT into their solution offering. These models will enable OEMs to unlock new revenue streams and stay ahead of their peers. The study does a deep dive into each business model and assesses its implication on the pumps industry. Some of the key IIoT technologies that are instrumental in the successful transition of the industry include cloud computing, analytics, artificial intelligence, and machine learning and blockchain. The end-user shift from a CAPEX to an OPEX model and the need for data insights, require pump OEMs to proactively embrace these progressive technologies in their service offering.

With the potential to realize double-digit growth from services, pump OEMs are at a juncture to revisit their product and service offerings as well as their relationship across the distribution channel. By expanding service capabilities with advanced and digital services, pump OEMs are well-positioned to increase the uptime, reliability, and lifetime of the machine. They can assist their end-users to move towards a predictive maintenance approach, reduce OPEX, and increase production efficiency.

Key Issues Addressed

  • What is the current state of the pumps industry and how is it expected to grow by 2025?
  • What are the innovative business models pump OEMs can explore as they move towards pumps-as-a-service?
  • What are the key growth opportunities for the pump industry? How can they benefit from these opportunities?
  • What are the global Mega Trends and how do they impact the pump industry?
  • What is the mindset of end-users towards the new pump solutions?

Key Topics Covered:

1. Executive Summary

  • Evolution of Pumps Industry
  • Industry Outlook in 2025
  • Top 7 Industry Predictions: Pumps Industry in 2025-Key Predictions
  • Global Pumps Industry Revenue Forecast 2025
  • Revenue Forecast by Pump Type and End-user Industry
  • 2025 Pump Vision: Senior Management Top-of-mind Issues

2. Research Scope and Segmentation

  • Research Scope
  • Key Questions This Study Will Answer
  • Research Methodology
  • Market Definitions

3. Mega Trends and Industry Convergence Implications

  • Top 5 Mega Trends Impacting the Pumps Industry
  • Mega Trend 1: Connectivity & Convergence
  • Mega Trend 2: Cognitive Era
  • Mega Trend 3: Smart is the New Green-Smart Products
  • Mega Trend 4: New Business Models
  • Mega Trend 5: Innovating to Zero
  • Top 5 Transformational Themes Impacting the Pumps Industry

4. Global Pumps Industry Revenue Forecast for 2025

  • Market Revenue of Global Centrifugal Pumps
  • Market Revenue of Global Positive Displacement Pumps
  • Market Revenue of Global Pump Services
  • Market Share of Top 10 Participants-Global Pumps Market
  • Competitive Landscape of Manufacturers-Total Pumps Market
  • Global Pumps Industry-Mapping Product Portfolio by Segments

5. IIoT based Pump Solutions-Implication for End-user Industries

  • State of Digital Transformation and Customer Readiness in the Pumps Industry
  • Digital Oil Fields
  • Digital Refinery
  • Smart Water Plants
  • Digital Mines

6. 4 Big Themes and New Business Opportunities for Pump OEMs

  • 4 Big Innovations: New Business Models

7. New Growth Market-Pumps-as-a-Service

  • Evolution of Pump Services
  • Advent of IIoT 2.0 in the Pumps Industry
  • Pump Services-Level of Engagement
  • Disruption in Pump Services-Unbundling the Value Chain
  • Transformation of Pump Services with Strengths of Channel Participants
  • Integrated Approach-A Key Essential to Remain Unmatched

8. Growth Opportunities and Companies to Action

  • 5 Major Growth Opportunities
  • Growth Opportunity 1-Energy-efficient Pumps
  • Growth Opportunity 2-Pump Performance Management
  • Growth Opportunity 3-New Business Models
  • Growth Opportunity 4-Managed Services
  • Growth Opportunity 5-Connected Distribution Network
  • Strategic Imperatives for Success and Growth

9. Key Conclusions and Future Outlook

  • Key Conclusions and Vision for the Industry
  • Legal Disclaimer

10. Appendix

For more information about this report visit https://www.researchandmarkets.com/r/pc0qb8


Contacts

ResearchAndMarkets.com
Laura Wood, Senior Press Manager
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EWING, N.J.--(BUSINESS WIRE)--$OLED #OLED--Universal Display Corporation (Nasdaq: OLED), enabling energy-efficient displays and lighting with its UniversalPHOLED® technology and materials, today announced that its Board of Directors approved a third quarter cash dividend of $0.15 per share on the Company's common stock. The dividend is payable on September 30, 2020 to shareholders of record on September 16, 2020. The dividend reflects our expected continued cash flow generation, and commitment to return capital to our shareholders. Future dividends will be subject to Board approval.


About Universal Display Corporation

Universal Display Corporation (Nasdaq: OLED) is a leader in the research, development and commercialization of organic light emitting diode (OLED) technologies and materials for use in display and solid-state lighting applications. Founded in 1994, the Company currently owns, exclusively licenses or has the sole right to sublicense more than 5,000 patents issued and pending worldwide. Universal Display licenses its proprietary technologies, including its breakthrough high-efficiency UniversalPHOLED® phosphorescent OLED technology that can enable the development of low power and eco-friendly displays and solid-state lighting. The Company also develops and offers high-quality, state-of-the-art UniversalPHOLED materials that are recognized as key ingredients in the fabrication of OLEDs with peak performance. In addition, Universal Display delivers innovative and customized solutions to its clients and partners through technology transfer, collaborative technology development and on-site training.

Headquartered in Ewing, New Jersey, with international offices in China, Hong Kong, Ireland, Japan, South Korea and Taiwan, and wholly-owned subsidiary Adesis, Inc. based in New Castle, Delaware, Universal Display works and partners with a network of world-class organizations. To learn more about Universal Display Corporation, please visit https://oled.com/.

Universal Display Corporation and the Universal Display Corporation logo are trademarks or registered trademarks of Universal Display Corporation. All other company, brand or product names may be trademarks or registered trademarks.

All statements in this document that are not historical, such as those relating to the impact of the COVID-19 pandemic on the Company and otherwise, Universal Display Corporation’s technologies and potential applications of those technologies, the Company’s expected results and future declaration of dividends, as well as the growth of the OLED market and the Company’s opportunities in that market, are forward-looking financial statements within the meaning of the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on any forward-looking statements in this document, as they reflect Universal Display Corporation’s current views with respect to future events and are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated. These risks and uncertainties are discussed in greater detail in Universal Display Corporation’s periodic reports on Form 10-K and Form 10-Q filed with the Securities and Exchange Commission, including, in particular, the section entitled “Risk Factors” in Universal Display Corporation’s Annual Report on Form 10-K for the year ended December 31, 2019 and its subsequent Quarterly Reports on Form 10-Q. Universal Display Corporation disclaims any obligation to update any forward-looking statement contained in this document.

Follow Universal Display Corporation

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(OLED-C)


Contacts

Universal Display Contact:
Darice Liu
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+1 609-964-5123

DUBLIN--(BUSINESS WIRE)--The "The Global Market for Nanomaterials in Batteries and Supercapacitors" report has been added to ResearchAndMarkets.com's offering.


With global energy demands ever-increasing, allied to efforts to reduce the use of fossil fuel and eliminate air pollutions, it is now essential to provide efficient, cost-effective, and environmentally friendly energy storage devices. The growing market for smart grid networks, electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) is also driving the market for improving the energy density of rechargeable batteries.

Rechargeable battery technologies (such as Li-ion, Li-S, Na-ion, Li-O2 batteries) and supercapacitors are among the most promising power storage and supply systems in terms of their widespread applicability, and tremendous potential owing to their high energy and power densities. LIBs are currently the dominant mobile power sources for portable electronic devices used in cell phones and laptops.

Although great advances have been made, each type of battery still suffers from problems that seriously hinder the practical applications for example in commercial EVs and PHEVs. The performance of these devices is inherently tied to the properties of materials used to build them. Nanotechnology and nanomaterials will play an important role in all aspects of the energy sector:

Lithium-ion batteries have shown great promise in portable electronics and electric vehicles due to their long lifespan and high safety. However, hurdles relating to the sluggish dynamics and poor cycling stability restrict the practical application. Nanostructured materials, due to their significantly decreased particles size, are thought to effectively address these issues.

Advantages of nanomaterials include:

  • Nanoscale shortens lithium-ion diffusion length.
  • New reactions at nanoscale are not possible with bulk materials.
  • Nanoscale combining with electronic conductive coating improves electronic transport.
  • Decreased mechanical stresses due to volume change lead to increased cyclability and lifetime.
  • Nanoscale enhances the electrode capability of Li storage.
  • Ordered mesoporous structure favours both Li storage and fast electrode kinetic.
  • Nano-structure enhances cycle stability.

Nanomaterials are also finding application in Lithium-sulfur (Li-S) batteries, sodium-ion batteries, lithium-air batteries, Magnesium batteries and paper, flexible and stretchable batteries. Nanomaterials, especially carbon nanomaterials, have been widely investigated as effective electrodes in supercapacitors due to their high specific surface area, excellent electrical and mechanical properties.

Applications of nanomaterials in batteries and supercapacitors include:

  • Electrodes in batteries and capacitors.
  • Anodes, cathodes and electrolytes in Li-ion (LIB) batteries.
  • Inks printable batteries and supercapacitors.
  • LIB cathodes.
  • Anode coatings to prevent corrosion.
  • Nanofiber-based polymeric battery separators.
  • Biodegradable green batteries.

Report contents include:

  • Battery and supercapacitor market megatrends and market drivers.
  • Types of nanomaterials utilized in batteries and supercapacitors.
  • Global market for in tons, historical and forecast to 2030, by nanomaterials types
  • Markets for nanomaterials in batteries and supercapacitors including electric vehicles, UAVs, medical wearables, consumer wearables and electronics.
  • Over 150 in-depth company profiles.

Key Topics Covered:

1 EXECUTIVE SUMMARY

2 NANOMATERIALS IN BATTERIES

2.1 Battery market megatrends

2.1.1 Electrification of transport

2.1.2 Reducing dependence on lithium and other materials (e.g. cobalt).

2.1.3 Growth in demand for thin and flexible batteries, energy harvesting wearable devices and smart textiles

2.1.4 Development of next-generation flexible electronics

2.1.5 Development of next-generation flexible electronics

2.1.6 Improving the energy density of rechargeable batteries

2.1.7 Growing market for electricity grid for renewable generation, smart grids and distributed energy resources; portable electronics; electric vehicles (EVs); and plug-in hybrid electric vehicles (PHEVs)

2.1.8 Demand from wearable healthcare devices

2.2 Nanomaterials in Li-ion batteries

2.3 Nanomaterials in Lithium-sulfur (Li-S) batteries

2.4 Nanomaterials in Sodium-ion batteries

2.5 Nanomaterials in Lithium-air batteries

2.6 Nanomaterials in Magnesium batteries

2.7 Graphene

2.7.1 Market overview

2.7.2 Applications

2.7.3 Global market in tons, historical and forecast

2.7.4 Product developers

2.8 Carbon nanotubes

2.8.1 Market overview

2.8.1.1 MWCNTs

2.8.1.2 SWCNTs

2.8.1.3 Carbon nano-onions (CNOs) or onion-like carbon (OLC),

2.8.1.4 BNNTs

2.8.2 Applications

2.8.3 Global market in tons, historical and forecast

2.8.4 Product developers

2.9 Fullerenes

2.1: Graphene Quantum Dots

2.1: Other nanomaterials

2.11.1: Carbon nanofibers

2.11.2: Lithium nanoparticles

2.11.3: Cobalt oxide nanoparticles

2.11.4: Bismuth oxide nanoparticles

2.11.5: Indium oxide nanoparticles

2.11.6: Manganese oxide nanoparticles

2.11.7: Zirconium oxide nanoparticles

2.11.8: Silicon nanowires

2.11.9: Quantum dots

2.11.1: Cellulose nanofibers

2.11.10.1 Li-ion battery separators

2.11.10.2 Additives for paper batteries

2.11.1: Cellulose nanocrystals

2.11.11.1 Flexible batteries

2.11.1: Molybdenum disulfide

3 NANOMATERIALS IN SUPERCAPACITORS

3.1 Supercapacitors market megatrends

3.2 Graphene

3.3 Carbon nanotubes

3.4 Nanodiamonds

4 COMPANY PROFILES

5 RESEARCH METHODOLOGY

6 REFERENCES

Companies Mentioned

  • Ashai Kasei
  • DKS Co. Ltd
  • MEIJO
  • Nawa
  • Ray-Techniques Ltd
  • Skeleton Technologies
  • US Forest Service
  • ZapGo Ltd

For more information about this report visit https://www.researchandmarkets.com/r/vpe9w0


Contacts

ResearchAndMarkets.com
Laura Wood, Senior Press Manager
This email address is being protected from spambots. You need JavaScript enabled to view it.

For E.S.T Office Hours Call 1-917-300-0470
For U.S./CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900

SAN FRANCISCO--(BUSINESS WIRE)--CAI International, Inc. (“CAI” or the “Company”) (NYSE: CAI), one of the world’s leading transportation finance and logistics companies, today reported results for the second quarter of 2020.


Summary

  • Net loss attributable to CAI common stockholders for the second quarter of 2020 was $2.8 million, or $0.16 per fully diluted share, primarily due to intangible asset write-offs as a result of accounting for the logistics business as a discontinued operation.
  • Net income from continuing operations attributable to CAI common stockholders for the second quarter of 2020 was $13.7 million, or $0.78 per fully diluted share.
  • Container lease revenue for the second quarter of 2020 was $69.4 million, compared to $69.1 million in the first quarter of 2020.
  • CAI’s Board of Directors declared the Company’s first quarterly cash dividend of $0.25 per common share payable on September 25, 2020 to shareholders of record as of September 11, 2020.
  • The Company is currently experiencing strong demand from a number of customers for new container leases. Container costs are stable and lease returns are attractive.
  • Average utilization for CAI’s owned container fleet during the second quarter of 2020 was 98.0%, compared to 98.4% for the first quarter of 2020. Current utilization is 98.2%.
  • In early July 2020, the Company entered into an interest rate swap fixing $500 million of its variable rate debt. Approximately 77% of the Company’s debt is now fixed rate.
  • The Company has approximately $180 million of liquidity in the form of available cash on hand and ability to draw on its credit facilities without additional collateral being provided.
  • As previously announced, on June 15, 2020, CAI terminated its formal strategic alternatives review process. The Company is committed to focusing solely on the container business and is actively pursuing its strategy to divest of non-core businesses.
  • CAI’s Board of Directors has adopted formal stock ownership guidelines for its non-executive directors.

Additional information on CAI's results, as well as comments on market trends, is available in a presentation posted today on the "Investors" section of CAI's website, www.capps.com.

Timothy Page, Interim President and Chief Executive Officer of CAI, commented, “We are very pleased with our results during the second quarter. Net income from continuing operations attributable to CAI common stockholders was $13.7 million, or $0.78 per fully diluted share. The quarter began with a great deal of uncertainty as we were in the depths of the COVID-19 global pandemic. As the quarter progressed, markets began to stabilize, liquidity returned and expectations for recovery improved. The global container shipping industry right sized fleets, rationalized pricing and moved to profitability. Consequently, the Company did not experience any meaningful payment delays or credit issues and we have been generating strong free cash flow. As we have entered the third quarter, utilization is increasing, and we are experiencing strong demand from our customers for both depot and new equipment.

“During the first half of 2020, we saw limited customer demand for leased containers. Consequently, the Company took delivery of only $41 million, or 30,000 TEU, of containers in the first two quarters of 2020. However, demand has been particularly strong since mid-June and we have commitments from customers to lease approximately 70,000 TEU of containers, all of which we expect to be picked up before the end of the third quarter. Additionally, we have lease commitments for approximately 50,000 TEU of containers for delivery in the fourth quarter of 2020. All of these transactions have attractive returns associated with them. As a result of this strong customer demand, we expect our core container business to generate increasing net income in the coming quarters.

“CAI’s operating performance during the quarter was supported by the strong 98.0% utilization of our owned container fleet. Utilization increased towards the end of June and currently stands at 98.2%. We expect a continuation in the trend of increasing utilization in the coming months as global demand increases. Our continuing strong performance in utilization reflects the long-term nature of our contracts, tight redelivery restrictions and ongoing fleet management, all of which underscore the long-term committed nature of our cash flow.

“Our average cash interest rate in the second quarter was 2.88%. In early July we completed an interest rate hedging transaction swapping one month LIBOR for a fixed rate of 0.29% on $500 million of our floating rate debt for a term of five years. Approximately 77% of the Company’s debt is now fixed rate. Going forward, we plan to maintain fixed rate debt between 75% and 85% of our total debt.

“During the second quarter, we terminated our previously announced strategic review process and made a decision to focus on our container business and divest our non-core businesses. We have accounted for the logistics business in the second quarter as a discontinued operation. Under accounting rules for discontinued operations, the logistics business reported a net loss for the quarter of $16.6 million, or $0.94 per fully diluted share, primarily due to the non-cash impairment of goodwill and intangible assets arising from the reclassification of logistics assets as assets held for sale. We are pleased to report that we are engaged in advanced discussions with a potential purchaser of our logistics business. We continue to explore disposing of our rail investments in the most beneficial manner for shareholders.

“We also are pleased to announce that we have initiated a program of returning capital to our shareholders through the payment of regular quarterly dividends, the first of which is a dividend of $0.25 per share payable on September 25, 2020 to common shareholders of record as of September 11, 2020.”

Mr. Page concluded, “We are focused on deploying our capital to increase shareholder value, whether that be through regular shareholder dividends, investing in containers during periods when returns are attractive, or share repurchases when container returns don’t meet our investment return thresholds. We believe the actions taken and the decisions we have made during the second quarter will provide the momentum to position CAI to achieve enhanced shareholder returns.”

CAI International, Inc.
Consolidated Balance Sheets
(In thousands, except share information)
(UNAUDITED)
 
June 30, December 31,

2020

2019

Assets
Current assets
Cash

$

20,159

 

$

19,870

 

Cash held by variable interest entities

 

27,703

 

 

26,594

 

Accounts receivable, net of allowance for doubtful accounts of $3,942 and $7,671
at June 30, 2020 and December 31, 2019, respectively

 

70,020

 

 

72,984

 

Current portion of net investment in finance leases

 

75,906

 

 

71,274

 

Prepaid expenses and other current assets

 

14,880

 

 

9,606

 

Assets held for sale

 

13,143

 

 

37,781

 

Total current assets

 

221,811

 

 

238,109

 

Restricted cash

 

22,188

 

 

26,775

 

Rental equipment, net of accumulated depreciation of $660,418 and $620,990 at June 30, 2020 and December 31, 2019, respectively

 

1,978,826

 

 

2,102,839

 

Net investment in finance leases

 

463,251

 

 

496,094

 

Financing receivable

 

53,821

 

 

30,693

 

Other non-current assets

 

6,036

 

 

7,255

 

Total assets

$

2,745,933

 

$

2,901,765

 

 
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable

$

4,557

 

$

4,534

 

Accrued expenses and other current liabilities

 

24,365

 

 

25,206

 

Unearned revenue

 

6,802

 

 

6,405

 

Current portion of debt

 

251,250

 

 

218,094

 

Rental equipment payable

 

3,356

 

 

25,137

 

Liabilities held for sale

 

6,517

 

 

8,752

 

Total current liabilities

 

296,847

 

 

288,128

 

Debt

 

1,728,310

 

 

1,880,122

 

Deferred income tax liability

 

29,161

 

 

35,376

 

Other non-current liabilities

 

4,148

 

 

4,899

 

Total liabilities

 

2,058,466

 

 

2,208,525

 

 
Stockholders' equity
Preferred stock, par value $.0001 per share; authorized 10,000,000
8.50% Series A fixed-to-floating rate cumulative redeemable perpetual preferred stock, issued and outstanding 2,199,610 shares, at liquidation preference

 

54,990

 

 

54,990

 

8.50% Series B fixed-to-floating rate cumulative redeemable perpetual preferred stock, issued and outstanding 1,955,000 shares, at liquidation preference

 

48,875

 

 

48,875

 

Common stock: par value $.0001 per share; authorized 84,000,000 shares; issued and outstanding 17,553,491 and 17,479,127 shares at June 30, 2020 and December 31, 2019, respectively

 

2

 

 

2

 

Additional paid-in capital

 

103,342

 

 

102,709

 

Accumulated other comprehensive loss

 

(6,666

)

 

(6,630

)

Retained earnings

 

486,924

 

 

493,294

 

Total stockholders' equity

 

687,467

 

 

693,240

 

Total liabilities and stockholders' equity

$

2,745,933

 

$

2,901,765

 

CAI International, Inc.
Consolidated Statements of Operations
(In thousands, except per share data)
(UNAUDITED)
 
Three Months Ended Six Months Ended
June 30, June 30,

2020

2019

2020

2019

Revenue
Container lease revenue

$

69,443

 

$

74,286

 

$

138,556

 

$

149,797

 

Rail lease revenue

 

6,282

 

 

6,462

 

 

12,085

 

 

14,343

 

Total revenue

 

75,725

 

 

80,748

 

 

150,641

 

 

164,140

 

 
Operating expenses
Depreciation of rental equipment

 

28,846

 

 

29,816

 

 

55,894

 

 

61,599

 

Impairment of rental equipment

 

557

 

 

7,323

 

 

19,724

 

 

7,323

 

Storage, handling and other expenses

 

6,474

 

 

5,199

 

 

12,222

 

 

10,319

 

Gain on sale of rental equipment

 

(2,108

)

 

(265

)

 

(3,722

)

 

(9,097

)

Administrative expenses

 

7,389

 

 

8,049

 

 

15,053

 

 

17,223

 

Total operating expenses

 

41,158

 

 

50,122

 

 

99,171

 

 

87,367

 

 
Operating income

 

34,567

 

 

30,626

 

 

51,470

 

 

76,773

 

 
Other expenses
Net interest expense

 

17,595

 

 

23,209

 

 

37,974

 

 

47,063

 

Other (income) expense

 

(97

)

 

119

 

 

149

 

 

157

 

Total other expenses

 

17,498

 

 

23,328

 

 

38,123

 

 

47,220

 

 
Income before income taxes

 

17,069

 

 

7,298

 

 

13,347

 

 

29,553

 

Income tax expense (benefit)

 

1,113

 

 

583

 

 

(1,943

)

 

2,732

 

 
Income from continuing operations

 

15,956

 

 

6,715

 

 

15,290

 

 

26,821

 

Loss from discontinued operations, net of income taxes

 

(16,582

)

 

(1,221

)

 

(17,246

)

 

(2,753

)

Net (loss) income

 

(626

)

 

5,494

 

 

(1,956

)

 

24,068

 

Preferred stock dividends

 

2,207

 

 

2,207

 

 

4,414

 

 

4,414

 

Net (loss) income attributable to CAI common stockholders

$

(2,833

)

$

3,287

 

$

(6,370

)

$

19,654

 

 
Net income from continuing operations attributable to CAI common shareholders

$

13,749

 

$

4,508

 

$

10,876

 

$

22,407

 

Net loss from discontinued operations attributable to CAI common shareholders

 

(16,582

)

 

(1,221

)

 

(17,246

)

 

(2,753

)

Net (loss) income attributable to CAI common stockholders

$

(2,833

)

$

3,287

 

$

(6,370

)

$

19,654

 

 
Net (loss) income per share attributable to CAI common stockholders
Basic
Continuing operations

$

0.79

 

$

0.26

 

$

0.62

 

$

1.24

 

Discontinued operations

 

(0.95

)

 

(0.07

)

 

(0.99

)

 

(0.15

)

Total basic

$

(0.16

)

$

0.19

 

$

(0.37

)

$

1.09

 

Diluted
Continuing operations

$

0.78

 

$

0.25

 

$

0.62

 

$

1.22

 

Discontinued operations

 

(0.94

)

 

(0.07

)

 

(0.98

)

 

(0.15

)

Total diluted

$

(0.16

)

$

0.18

 

$

(0.36

)

$

1.07

 

 
Weighted average shares outstanding
Basic

 

17,470

 

 

17,648

 

 

17,451

 

 

18,098

 

Diluted

 

17,601

 

 

17,926

 

 

17,641

 

18,401

CAI International, Inc.
Consolidated Statements of Cash Flows
(In thousands, except per share data)
(UNAUDITED)
 
Six Months Ended
June 30,

2020

2019

Cash flows from operating activities
Net (loss) income

$

(1,956

)

$

24,068

 

Loss from discontinued operations, net of income taxes

 

(17,246

)

 

(2,753

)

Income from continuing operations

 

15,290

 

 

26,821

 

Adjustments to reconcile income from continuing operations to net cash provided by operating activities:
Depreciation

 

56,299

 

 

61,623

 

Impairment of rental equipment

 

19,724

 

 

7,323

 

Amortization of debt issuance costs

 

2,312

 

 

2,394

 

Stock-based compensation expense

 

801

 

 

1,421

 

Unrealized loss on foreign exchange

 

63

 

 

90

 

Gain on sale of rental equipment

 

(3,722

)

 

(9,097

)

Deferred income taxes

 

(3,127

)

 

2,135

 

Bad debt (recovery) expense

 

(3,582

)

 

687

 

Changes in other operating assets and liabilities:
Accounts receivable

 

4,441

 

 

1,200

 

Prepaid expenses and other assets

 

606

 

 

(2,114

)

Net investment in finance leases

 

35,746

 

 

32,824

 

Accounts payable, accrued expenses and other liabilities

 

(1,146

)

 

(3,568

)

Unearned revenue

 

(394

)

 

(1,862

)

Net cash provided by operating activities of continuing operations

 

123,311

 

 

119,877

 

Net cash provided by (used in) operating activities of discontinued operations

 

2,315

 

 

(1,984

)

Net cash provided by operating activities

 

125,626

 

 

117,893

 

Cash flows from investing activities
Purchase of rental equipment

 

(32,620

)

 

(231,595

)

Purchase of financing receivable

 

(30,846

)

 

(36,379

)

Proceeds from sale of rental equipment

 

58,467

 

 

220,403

 

Purchase of furniture, fixtures and equipment

 

(310

)

 

(136

)

Receipt of principal payments from financing receivable

 

2,225

 

 

973

 

Net cash used in investing activities of continuing operations

 

(3,084

)

 

(46,734

)

Net cash used in investing activities of discontinued operations

 

(1

)

 

(114

)

Net cash used in investing activities

 

(3,085

)

 

(46,848

)

Cash flows from financing activities
Proceeds from debt

 

227,000

 

 

468,082

 

Principal payments on debt

 

(348,331

)

 

(490,319

)

Debt issuance costs

 

(25

)

 

(496

)

Proceeds from issuance of common stock

 

116

 

 

-

 

Repurchase of common stock

 

-

 

 

(34,118

)

Dividends paid to preferred stockholders

 

(4,414

)

 

(4,414

)

Exercise of stock options

 

113

 

 

335

 

Net cash provided by financing activities of continuing operations

 

(125,541

)

 

(60,930

)

Net cash used in financing activities of discontinued operations

 

-

 

 

-

 

Net cash used in financing activities

 

(125,541

)

 

(60,930

)

Effect on cash of foreign currency translation

 

(189

)

 

(77

)

Net (decrease) increase in cash and restricted cash

 

(3,189

)

 

10,038

 

Cash and restricted cash at beginning of the period

 

73,239

 

 

75,983

 

Cash and restricted cash at end of the period

$

70,050

 

$

86,021

 

CAI International, Inc.
Fleet Data
(UNAUDITED)
 
As of June 30,

2020

2019

 
Owned container fleet in TEUs

1,597,898

 

1,553,231

 

Managed container fleet in TEUs

63,757

 

69,805

 

Total container fleet in TEUs

1,661,655

 

1,623,036

 

 
Owned container fleet in CEUs

1,630,054

 

1,584,456

 

Managed container fleet in CEUs

79,643

 

63,492

 

Total container fleet in CEUs

1,709,697

 

1,647,948

 

 
Owned railcar fleet in units

5,276

 

5,631

 

 
 
Three Months Ended Six Months Ended
June 30, June 30,

2020

2019

2020

2019

Average Utilization
Container fleet utilization in CEUs

98.0

%

98.8

%

98.1

%

98.8

%

Owned container fleet utilization in CEUs

98.0

%

98.8

%

98.2

%

98.8

%

Railcar fleet utilization in units - excluding new units not yet leased

89.6

%

88.1

%

87.3

%

89.3

%

Railcar fleet utilization in units - including new units not yet leased

86.6

%

84.5

%

84.3

%

85.7

%

 
As of June 30,

2020

2019

Period Ending Utilization
Container fleet utilization in CEUs

97.8

%

98.8

%

Owned container fleet utilization in CEUs

97.9

%

98.8

%

Railcar fleet utilization in units - excluding new units not yet leased

88.3

%

85.9

%

Railcar fleet utilization in units - including new units not yet leased

85.3

%

82.4

%

Utilization of containers is computed by dividing the total units on lease in CEUs (cost equivalent units), by the total units in our fleet in CEUs.
The total container fleet excludes new units not yet leased and off-hire units designated for sale.
Utilization of railcars is computed by dividing the total number of railcars on lease by the total number of railcars in our fleet.
The impact on utilization of including new units not yet leased in the total railcar fleet has been included in the table above.
CEU is a ratio used to convert the actual number of containers in our fleet to a figure based on the relative purchase prices of our
various equipment types to that of a standard 20 foot dry van container. For example, the CEU ratio for a standard 40 foot dry van
container is 1.6, and a 40 foot high cube container is 1.7.

Conference Call

A conference call to discuss the financial results for the second quarter of 2020 will be held on Thursday, August 6, 2020 at 5:00 p.m. ET. The dial-in number for the teleconference is 1-855-327-6837; outside of the U.S., call 1-631-891-4304. The call may be accessed live over the internet (listen only) under the “Investors” section of CAI’s website, www.capps.com, by selecting “Q2 2020 Earnings Conference Call.” A webcast replay will be available for 30 days on the “Investors” section of our website.

Earnings Presentation

A presentation summarizing our second quarter 2020 results is available on the “Investors” section of our website, www.capps.com.

About CAI International, Inc.

CAI is one of the world’s leading transportation finance and logistics companies. As of June 30, 2020, CAI operated a worldwide fleet of approximately 1.7 million CEUs of containers, and owned a fleet of 5,276 railcars that it leases within North America. CAI operates through 22 offices located in 12 countries including the United States.

Forward-Looking Statements

This press release contains forward-looking statements regarding future events and the future performance of CAI, including but not limited to: management’s business outlook for the container leasing business, management’s decision to divest of CAI’s non-core businesses and management's outlook for growth of CAI’s leasing investments. These statements and others herein are forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and involve risks and uncertainties that could cause actual results of operations and other performance measures to differ materially from current expectations including, but not limited to: utilization rates, expected economic conditions, expected growth of international trade, availability of credit on commercially favorable terms or at all, customer demand, container investment levels, container prices, lease rates, increased competition, volatility in exchange rates, growth in world trade and world container trade, the ability of CAI to convert letters of intent with its customers to binding contracts, potential to sell CAI’s securities to the public and others.

CAI refers you to the documents that it has filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2019, its Quarterly Reports on Form 10-Q and its Current Reports on Form 8-K. These documents contain additional important factors that could cause actual results to differ from current expectations and from forward-looking statements contained in this press release. Furthermore, CAI is under no obligation to (and expressly disclaims any such obligation to) update or alter any of the forward-looking statements contained in this press release whether as a result of new information, future events or otherwise, unless required by law.


Contacts

Tim Page, Interim President and Chief Executive Officer
(415) 788-0100
This email address is being protected from spambots. You need JavaScript enabled to view it.

LONDON--(BUSINESS WIRE)--#FuelCellsforMarineVesselsMarket--Technavio has been monitoring the fuel cells for marine vessels market and it is poised to grow by USD 64.91 million during 2020-2024, progressing at a CAGR of over 4% during the forecast period. 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 was the value of the fuel cells for marine vessels market in 2019?
  • Technavio says that the value of the market was USD 284.20 million in 2019 and is projected to reach USD 349.11 million by 2024.
  • At what rate is the market projected to grow during the forecast period 2020-2024?
  • Growing at a CAGR of over 4%, the market growth will accelerate in the forecast period.
  • What is the key factor driving the market?
  • Demand for alternate propulsion systems is one of the key factors driving the market growth.
  • Who are the top players in the market?
  • Bloom Energy, Dynad International BV, Hyster-Yale Materials Handling Inc., PowerCell Sweden AB, Proton Power Systems plc, SerEnergy AS, SFC Energy AG, Siemens AG, Toshiba Corp., and Watt Fuel Cell Corp. are some of the major market participants.
  • Which region is expected to hold the highest market share?
  • APAC

The market is fragmented, and the degree of fragmentation will accelerate during the forecast period. Bloom Energy, Dynad International BV, Hyster-Yale Materials Handling Inc., PowerCell Sweden AB, Proton Power Systems plc, SerEnergy AS, SFC Energy AG, Siemens AG, Toshiba Corp., and Watt Fuel Cell Corp. 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.

Demand for alternate propulsion systems has been instrumental in driving the growth of the market.

Fuel Cells for Marine Vessels Market 2020-2024: Segmentation

Fuel Cells for Marine Vessels Market is segmented as below:

  • Geographic Landscape
    • North America
    • APAC
    • Europe
    • MEA
    • South America
  • Technology
    • PEMFC
    • SOFC
    • Other Fuel Cells

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=IRTNTR43046

Fuel Cells for Marine Vessels 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 fuel cells for marine vessels market report covers the following areas:

  • Fuel Cells for Marine Vessels Market size
  • Fuel Cells for Marine Vessels Market trends
  • Fuel Cells for Marine Vessels Market analysis

This study identifies the advancement of hydrogen as a marine fuel as one of the prime reasons driving the market growth during the next few years.

Fuel Cells for Marine Vessels Market 2020-2024: Vendor Analysis

We provide a detailed analysis of vendors operating in the fuel cells for marine vessels market, including some of the vendors such as Bloom Energy, Dynad International BV, Hyster-Yale Materials Handling Inc., PowerCell Sweden AB, Proton Power Systems plc, SerEnergy AS, SFC Energy AG, Siemens AG, Toshiba Corp., and Watt Fuel Cell Corp. Backed with competitive intelligence and benchmarking, our research reports on the fuel cells for marine vessels market are designed to provide entry support, customer profile and M&As as well as go-to-market strategy support.

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Fuel Cells for Marine Vessels Market 2020-2024: Key Highlights

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

Table of Contents:

Executive Summary

Market Landscape

  • Market ecosystem
  • Value chain analysis

Market Sizing

  • Market definition
  • Market segment analysis
  • Market size 2019
  • Market outlook: Forecast for 2019 - 2024

Five Forces Analysis

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

Market Segmentation by Technology

  • Market segments
  • Comparison by Technology
  • PEMFC - Market size and forecast 2019-2024
  • SOFC - Market size and forecast 2019-2024
  • Other fuel cells - Market size and forecast 2019-2024
  • Market opportunity by Technology

Customer Landscape

  • Overview

Geographic Landscape

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

Drivers, Challenges, and Trends

  • Market drivers
  • Volume driver - Demand led growth
  • Volume driver - Supply led growth
  • Volume driver - External factors
  • Volume driver - Demand shift in adjacent markets
  • Price driver - Inflation
  • Price driver - Shift from lower to higher priced units
  • Market challenges
  • Market trends

Vendor Landscape

  • Overview
  • Landscape disruption

Vendor Analysis

  • Vendors covered
  • Market positioning of vendors
  • Bloom Energy
  • Dynad International BV
  • Hyster-Yale Materials Handling Inc.
  • PowerCell Sweden AB
  • Proton Power Systems plc
  • SerEnergy AS
  • SFC Energy AG
  • Siemens AG
  • Toshiba Corp.
  • Watt Fuel Cell Corp.

Appendix

  • Scope of the report
  • Currency conversion rates for US$
  • Research methodology
  • List of abbreviations

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
US: +1 844 364 1100
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Website: www.technavio.com/

IRVING, Texas--(BUSINESS WIRE)--Montage Resources Corporation (NYSE:MR) (the “Company” or “Montage Resources”) today announced its second quarter 2020 operational and financial results and updated full year 2020 guidance. In addition, the Company will be posting an updated investor presentation to its corporate website.


Second Quarter 2020 Highlights:

  • Average net daily production was 551.7 MMcfe per day, above the midpoint of the Company’s previously issued guidance range, consisting of 83% natural gas and 17% liquids
  • Realized an average natural gas price, before the impact of cash settled commodity derivatives and firm transportation expenses, of $1.57 per Mcf, a $0.15 per Mcf discount to the average monthly NYMEX settled natural gas price during the quarter, better than analyst consensus expectations
  • Average natural gas equivalent realized price was $2.15 per Mcfe, including cash settled commodity derivatives and excluding firm transportation expenses
  • Per unit cash production costs (including lease operating, transportation, gathering and compression, production and ad valorem taxes) were $1.25 per Mcfe, better than analyst consensus expectations
  • Cash general and administrative expenses1 were approximately $7.4 million, a decrease of approximately 14% compared to the first quarter of 2020 and approximately 19% compared to the second quarter of 2019 and better than analyst consensus expectations
  • Capital spending for the quarter was $29.1 million, approximately 20% better than analyst consensus expectations
  • Operational efficiency achievements yielded a Company record average number of completion stages per day for the quarter at 10, a Company record number of completion stages on a single pad at 11.5, and a Company record number of completion stages in one day at 15. Recent normalized well costs of approximately $808 per foot are below current type curve estimates of approximately $825 per foot in Utica Dry Gas area
  • Subsequent to the end of the second quarter 2020, the Company announced a non-binding letter of intent to sell its non-core wellhead gathering infrastructure
1

Non-GAAP measure. See reconciliation for details

John Reinhart, President and CEO, commented on the Company’s operational and financial results, “This was another solid earnings report which illustrated our consistent focus on execution and efficiency. The continued outperformance of our wells along with our operating cadence, has allowed us to maintain our full year outlook on production expectations, despite the meaningful curtailment of production during the second quarter. The Company’s swift response to market conditions early in the year with the adjustment in our development plan towards increased dry gas production allows us to capture the benefits of the improving natural gas macro conditions during the second half of 2020 and 2021. Our strong operational performance driven by our robust planning process has allowed the Company to realize additional savings on our all-in drilling and completion costs from our initial 2020 plan. Our most recent dry gas Utica pad achieved costs of approximately $808 per foot when normalized to a 13,000 foot lateral length, and the Company set new internal records for completions stages, averaging 11.5 stages per day on our most recent pad and setting a single day record of 15 stages in one day. Despite a significant amount of commodity price volatility during the second quarter 2020, we have again been able to deliver a strong natural gas realized price with our ability to optimize this production to buyers needing to fill unutilized capacity and continue to view this opportunity as a competitive advantage, given the highly uncommitted nature and flexibility of our production base. Our ongoing financial discipline has strengthened our balance sheet and liquidity position, which would be further enhanced by the closing of our recently announced non-binding letter of intent to sell our non-core gathering assets in Ohio. Our proven track record of execution throughout 2019 and into 2020 has solidified our position not just as a cost and efficiency leader, but also as a team with a winning strategy that remains well positioned to leverage our experience to achieve our goals of free cash flow generation and debt reduction.”

Operational Discussion

The Company’s net production for the three and six months ended June 30, 2020 and 2019 is set forth in the following table:

 

 

Three Months Ended

June 30,

 

 

Six Months Ended

June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Production:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas (MMcf)

 

 

41,720.8

 

 

 

39,119.0

 

 

 

86,019.4

 

 

 

66,324.0

 

NGLs (Mbbls)

 

 

973.9

 

 

 

1,033.3

 

 

 

2,192.1

 

 

 

2,013.8

 

Oil (Mbbls)

 

 

440.1

 

 

 

569.0

 

 

 

1,101.8

 

 

 

1,167.0

 

Total (MMcfe)

 

 

50,204.8

 

 

 

48,732.8

 

 

 

105,782.8

 

 

 

85,408.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average daily production volume:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas (Mcf/d)

 

 

458,470

 

 

 

429,879

 

 

 

472,634

 

 

 

366,431

 

NGLs (Bbls/d)

 

 

10,702

 

 

 

11,355

 

 

 

12,045

 

 

 

11,126

 

Oil (Bbls/d)

 

 

4,836

 

 

 

6,253

 

 

 

6,054

 

 

 

6,448

 

Total (MMcfe/d)

 

 

551.7

 

 

 

535.5

 

 

 

581.2

 

 

 

471.9

 

Financial Discussion

Revenue for the three months ended June 30, 2020 totaled $90.7 million, compared to $155.5 million for the three months ended June 30, 2019. Adjusted Revenue2, which includes the impact of cash settled commodity derivatives and excludes brokered natural gas and marketing revenue and other revenue, totaled $107.9 million for the three months ended June 30, 2020 compared to $145.9 million for the three months ended June 30, 2019. Net Loss for the three months ended June 30, 2020 was ($68.9) million, or $(1.92) per share, compared to Net Income of $27.5 million, or $0.77 per share, for the three months ended June 30, 2019. Adjusted Net Income (Loss)2 for the three months ended June 30, 2020 was $(20.6) million, or $(0.57) per share, compared to $14.6 million, or $0.41 per share for the three months ended June 30, 2019. Adjusted EBITDAX2 was $37.5 million for the three months ended June 30, 2020 compared to $70.9 million for the three months ended June 30, 2019.

2

Adjusted Revenue, Adjusted Net Income and Adjusted EBITDAX are non-GAAP financial measures. Tables reconciling Adjusted Revenue, Adjusted Net Income and Adjusted EBITDAX to the most directly comparable GAAP measures can be found at the end of the financial statements included in this press release.

Average realized price calculations for the three and six months ended June 30, 2020 and 2019 are set forth in the table below:

 

 

Three Months Ended

June 30,

 

 

Six Months Ended

June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Average realized price (excluding cash settled commodity derivatives and firm transportation)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas ($/Mcf)

 

$

1.57

 

 

$

2.41

 

 

$

1.68

 

 

$

2.66

 

NGLs ($/Bbl)

 

 

8.18

 

 

 

18.77

 

 

 

12.09

 

 

 

20.18

 

Oil ($/Bbl)

 

 

21.66

 

 

 

52.14

 

 

 

32.46

 

 

 

50.07

 

Total average prices ($/Mcfe)

 

 

1.65

 

 

 

2.94

 

 

 

1.96

 

 

 

3.22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average realized price (including cash settled commodity derivatives, excluding firm transportation)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas ($/Mcf)

 

$

1.98

 

 

$

2.47

 

 

$

2.07

 

 

$

2.63

 

NGLs ($/Bbl)

 

 

8.67

 

 

 

19.11

 

 

 

12.50

 

 

 

20.46

 

Oil ($/Bbl)

 

 

38.38

 

 

 

51.68

 

 

 

40.11

 

 

 

50.65

 

Total average prices ($/Mcfe)

 

 

2.15

 

 

 

2.99

 

 

 

2.36

 

 

 

3.21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average realized price (including firm transportation, excluding cash settled commodity derivatives)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas ($/Mcf)

 

$

1.06

 

 

$

1.95

 

 

$

1.21

 

 

$

2.15

 

NGLs ($/Bbl)

 

 

8.18

 

 

 

18.77

 

 

 

12.09

 

 

 

20.18

 

Oil ($/Bbl)

 

 

21.66

 

 

 

52.14

 

 

 

32.46

 

 

 

50.07

 

Total average prices ($/Mcfe)

 

 

1.23

 

 

 

2.57

 

 

 

1.58

 

 

 

2.83

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average realized price (including cash settled commodity derivatives and firm transportation)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas ($/Mcf)

 

$

1.47

 

 

$

2.01

 

 

$

1.61

 

 

$

2.12

 

NGLs ($/Bbl)

 

 

8.67

 

 

 

19.11

 

 

 

12.50

 

 

 

20.46

 

Oil ($/Bbl)

 

 

38.38

 

 

 

51.68

 

 

 

40.11

 

 

 

50.65

 

Total average prices ($/Mcfe)

 

 

1.72

 

 

 

2.62

 

 

 

1.98

 

 

 

2.82

 

*rounded to the nearest penny

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Company’s cash production costs (which include lease operating, transportation, gathering and compression, production and ad valorem taxes) are shown in the table below. Per unit cash production costs, which include $0.42 per Mcfe of firm transportation expense, were $1.25 per Mcfe for the second quarter of 2020, a decrease of approximately 7% compared to the second quarter of 2019.

General and administrative expense (including one-time merger-related expenses and severance) was $11.6 million and $13.6 million for the three months ended June 30, 2020 and 2019, respectively, and is shown in the table below. Cash general and administrative expense3 (excluding merger-related expenses, severance and stock-based compensation expense) was $7.4 million and $9.1 million for the three months ended June 30, 2020 and 2019, respectively. General and administrative expense per Mcfe (including one-time merger-related expenses and severance) was $0.23 in the three months ended June 30, 2020 compared to $0.28 in the three months ended June 30, 2019. Cash general and administrative expense3 per Mcfe (excluding merger-related expenses, severance and stock-based compensation expense) decreased approximately 26% to $0.14 in the three months ended June 30, 2020 compared to $0.19 in the three months ended June 30, 2019.

3

Cash general and administrative expense is a non-GAAP financial measure. A table reconciling cash general and administrative expense to the most directly comparable GAAP measure can be found under “Cash General and Administrative Expense” in this press release.

 

 

Three Months Ended

June 30,

 

 

Six Months Ended

June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Operating expenses (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease operating

 

$

9,900

 

 

$

10,141

 

 

$

21,943

 

 

$

17,666

 

Transportation, gathering and compression

 

 

51,387

 

 

 

51,870

 

 

 

105,512

 

 

 

93,038

 

Production and ad valorem taxes

 

 

1,600

 

 

 

4,009

 

 

 

6,468

 

 

 

6,857

 

Total cash production costs

 

$

62,887

 

 

$

66,020

 

 

$

133,923

 

 

$

117,561

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion, amortization and accretion

 

 

42,768

 

 

 

38,597

 

 

 

86,903

 

 

 

68,494

 

General and administrative1

 

 

11,569

 

 

 

13,564

 

 

 

21,450

 

 

 

42,494

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses per Mcfe:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease operating

 

$

0.20

 

 

$

0.21

 

 

$

0.21

 

 

$

0.21

 

Transportation, gathering and compression

 

 

1.02

 

 

 

1.06

 

 

 

0.99

 

 

 

1.09

 

Production and ad valorem taxes

 

 

0.03

 

 

 

0.08

 

 

 

0.06

 

 

 

0.08

 

Total cash production costs

 

$

1.25

 

 

$

1.35

 

 

$

1.26

 

 

$

1.38

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion, amortization and accretion

 

 

0.85

 

 

 

0.79

 

 

 

0.82

 

 

 

0.80

 

General and administrative2

 

 

0.23

 

 

 

0.28

 

 

 

0.20

 

 

 

0.50

 

1

Includes stock-based compensation, merger-related expenses and severance of $ 4.2 million and $ 4.5 million for the three months ended June 30, 2020 and 2019, respectively, and $ 5.5 million and $ 25.1 million for the six months ended June 30, 2020 and 2019, respectively

2

Includes stock-based compensation, merger-related expenses and severance of $ 0.09 per Mcfe and $ 0.09 per Mcfe for the three months ended June 30, 2020 and 2019, respectively, and $ 0.05 per Mcfe and $ 0.30 per Mcfe for the six months ended June 30, 2020 and 2019, respectively

Cash Margins

The Company’s cash margins are detailed in the table below:

 

 

Three Months Ended

 

 

Three Months Ended

 

 

 

June 30, 2020

 

 

June 30, 2019

 

 

March 31, 2020

 

(per Mcfe)

 

 

 

 

 

 

 

 

 

 

 

 

Average realized price (including cash settled commodity derivatives, excluding firm transportation)

 

$

2.15

 

 

$

2.99

 

 

$

2.56

 

Total cash production costs1

 

 

1.25

 

 

 

1.35

 

 

 

1.28

 

Cash production margin

 

$

0.90

 

 

$

1.64

 

 

$

1.28

 

Cash production margin %

 

 

42

%

 

 

55

%

 

 

50

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash production margin

 

$

0.90

 

 

$

1.64

 

 

$

1.28

 

Cash general and administrative expenses2

 

 

0.14

 

 

 

0.19

 

 

 

0.15

 

Cash operating margin

 

$

0.76

 

 

$

1.45

 

 

$

1.13

 

Cash operating margin %

 

 

35

%

 

 

48

%

 

 

44

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash operating margin

 

$

0.76

 

 

$

1.45

 

 

$

1.13

 

Interest expense

 

 

0.30

 

 

 

0.31

 

 

 

0.27

 

Corporate cash operating margin3

 

$

0.46

 

 

$

1.14

 

 

$

0.86

 

Corporate cash operating margin %

 

 

22

%

 

 

38

%

 

 

34

%

1

Includes lease operating, transportation, gathering and compression, and production and ad valorem taxes

2

Cash general and administrative expense is a non-GAAP financial measure which excludes stock-based compensation expense, merger related expenses and severance. See reconciliation to the most comparable GAAP measure under “Cash General and Administrative Expense” in this press release

3

Includes lease operating, transportation, gathering and compression, production and ad valorem taxes, cash general & administrative expense and interest expense. Cash general and administrative expense is a non-GAAP financial measure which excludes stock-based compensation expense, merger related expenses and severance See reconciliation to the most comparable GAAP measure under “Cash General and Administrative Expense” in this press release

Capital Expenditures

Second quarter 2020 capital expenditures were $29.1 million, including $27.6 million for drilling and completions, $1.4 million for land-related expenditures and $0.1 million for other expenditures.

During the second quarter of 2020, the Company commenced drilling 5 gross (3.4 net) operated wells, commenced completions of 7 gross (5.4 net) operated wells and turned to sales 7 gross (6.1 net) operated wells.

Financial Position and Liquidity

As of June 30, 2020, the Company’s liquidity was $295.0 million, consisting of $9.2 million in cash and cash equivalents and $285.8 million in available borrowing capacity under the Company’s revolving credit facility (after giving effect to outstanding letters of credit issued by the Company of $29.2 million and $160.0 million in outstanding borrowings).

Michael Hodges, Executive Vice President and Chief Financial Officer, commented, “We are very proud of the results in the second quarter of 2020 that have allowed the Company to solidify its financial strength despite a volatile commodity price environment. We believe that the flexibility of our portfolio and our continued improvement in operating costs will allow us to navigate the current operating environment without adding stress to our balance sheet. Finally, our strong hedge book remains a key element of our strategy, with approximately 70% of our natural gas hedged and approximately 60% of our oil hedged (based on our revised production profile) for 2020, providing us with a high level of cash flow certainty and confidence in the long-term health of our balance sheet.”

Commodity Derivatives

The Company engages in a number of different commodity trading program strategies as a risk management tool to attempt to mitigate the potential negative impact on cash flows caused by price fluctuations in natural gas, NGL and oil prices. Below is a table that illustrates the Company’s hedging activities as of June 30, 2020:

Natural Gas Derivatives:

Description

 

Volume

(MMBtu/d)

 

 

Production Period

 

Weighted Average

Price ($/MMBtu)

 

Natural Gas Swaps:

 

 

 

 

 

 

 

 

 

 

 

 

 

60,000

 

 

July 2020 – September 2020

 

$

2.32

 

 

 

 

80,000

 

 

July 2020 – December 2020

 

$

2.64

 

 

 

 

95,000

 

 

July 2020 – March 2021

 

$

2.54

 

 

 

 

50,000

 

 

August 2020 – December 2020

 

$

2.06

 

 

 

 

50,000

 

 

October 2020 – March 2021

 

$

2.65

 

 

 

 

50,000

 

 

January 2021 – March 2022

 

$

2.51

 

 

 

 

25,000

 

 

April 2021 – March 2022

 

$

2.47

 

Natural Gas Collars:

 

 

 

 

 

 

 

 

 

 

Floor purchase price (put)

 

 

25,000

 

 

January 2021 – December 2021

 

$

2.15

 

Ceiling sold price (call)

 

 

25,000

 

 

January 2021 – December 2021

 

$

3.03

 

Natural Gas Three-way Collars:

 

 

 

 

 

 

 

 

 

 

Floor purchase price (put)

 

 

80,000

 

 

July 2020 – December 2020

 

$

2.60

 

Floor sold price (put)

 

 

80,000

 

 

July 2020 – December 2020

 

$

1.90

 

Ceiling sold price (call)

 

 

80,000

 

 

July 2020 – December 2020

 

$

2.94

 

Floor purchase price (put)

 

 

45,000

 

 

January 2021 – December 2021

 

$

2.55

 

Floor sold price (put)

 

 

45,000

 

 

January 2021 – December 2021

 

$

2.25

 

Ceiling sold price (call)

 

 

45,000

 

 

January 2021 – December 2021

 

$

2.81

 

Floor purchase price (put)

 

 

20,000

 

 

April 2021 – March 2022

 

$

2.62

 

Floor sold price (put)

 

 

20,000

 

 

April 2021 – March 2022

 

$

2.20

 

Ceiling sold price (call)

 

 

20,000

 

 

April 2021 – March 2022

 

$

3.10

 

Natural Gas Call/Put Options:

 

 

 

 

 

 

 

 

 

 

Floor sold price (put)

 

 

15,000

 

 

July 2020 – September 2020

 

$

1.60

 

Floor sold price (put)

 

 

50,000

 

 

July 2020 – December 2020

 

$

2.30

 

Swaption sold price (call)

 

 

50,000

 

 

January 2021 – December 2021

 

$

2.75

 

Swaption sold price (call)

 

 

50,000

 

 

January 2022 – December 2022

 

$

3.00

 

Floor sold price (put)

 

 

50,000

 

 

January 2021 – March 2022

 

$

2.00

 

Ceiling sold price (call)

 

 

50,000

 

 

January 2022 – December 2022

 

$

3.00

 

Ceiling sold price (call)

 

 

80,000

 

 

January 2023 – December 2023

 

$

3.00

 

Basis Swaps:

 

 

 

 

 

 

 

 

 

 

Appalachia - Dominion

 

 

12,500

 

 

July 2020 – October 2020

 

$

(0.52

)

Appalachia - Dominion

 

 

20,000

 

 

July 2020 – December 2020

 

$

(0.59

)

Oil Derivatives:

Description

 

Volume

(Bbls/d)

 

 

Production Period

 

Weighted Average

Price ($/Bbl)

 

Oil Swaps:

 

 

 

 

 

 

 

 

 

 

 

 

 

2,500

 

 

July 2020 – December 2020

 

$

57.41

 

 

 

 

250

 

 

July 2020 – March 2021

 

$

53.20

 

 

 

 

250

 

 

January 2021 – March 2021

 

$

53.00

 

Oil Collars:

 

 

 

 

 

 

 

 

 

 

Floor purchase price (put)

 

 

1,000

 

 

July 2020 – December 2020

 

$

51.00

 

Ceiling sold price (call)

 

 

1,000

 

 

July 2020 – December 2020

 

$

62.00

 

Oil Three-way Collars:

 

 

 

 

 

 

 

 

 

 

Floor purchase price (put)

 

 

500

 

 

January 2021 – December 2021

 

$

31.25

 

Floor sold price (put)

 

 

500

 

 

January 2021 – December 2021

 

$

22.50

 

Ceiling sold price (call)

 

 

500

 

 

January 2021 – December 2021

 

$

45.00

 

Oil Call/Put Options:

 

 

 

 

 

 

 

 

 

 

Floor sold price (put)

 

 

500

 

 

July 2020 – December 2020

 

$

45.00

 

Swaption sold price (call)

 

 

500

 

 

January 2021 – December 2021

 

$

42.50

 

NGL Derivatives:

Description

 

Volume

(Bbls/d)

 

 

Production Period

 

Weighted Average

Price ($/Bbl)

 

Propane Swaps:

 

 

 

 

 

 

 

 

 

 

 

 

 

1,500

 

 

July 2020 – December 2020

 

$

20.68

 

 

 

 

500

 

 

January 2021 – December 2021

 

$

18.01

 

Subsequent to the End of the Second Quarter:

The below table illustrates the Company’s hedging activities subsequent to the end of the second quarter 2020:

Natural Gas Derivatives:

Description

 

Volume

(MMBtu/d)

 

 

Production Period

 

Weighted Average

Price ($/MMBtu)

 

Natural Gas Collars:

 

 

 

 

 

 

 

 

 

 

Floor purchase price (put)

 

 

30,000

 

 

April 2021 – March 2022

 

$

2.40

 

Ceiling sold price (call)

 

 

30,000

 

 

April 2021 – March 2022

 

$

3.05

 

Basis Swaps:

 

 

 

 

 

 

 

 

 

 

Appalachia - Dominion

 

 

30,000

 

 

August 2020 – October 2020

 

$

(0.50

)

Oil Derivatives:

Description

 

Volume

(Bbls/d)

 

 

Production Period

 

Weighted Average

Price ($/Bbl)

 

Oil Collars:

 

 

 

 

 

 

 

 

 

 

Floor purchase price (put)

 

 

500

 

 

January 2021 – December 2021

 

$

37.50

 

Ceiling sold price (call)

 

 

500

 

 

January 2021 – December 2021

 

$

45.50

 

NGL Derivatives:

Description

 

Volume

(Bbls/d)

 

 

Production Period

 

Weighted Average

Price ($/Bbl)

 

Propane Swaps:

 

 

 

 

 

 

 

 

 

 

 

 

 

500

 

 

August 2020 – December 2020

 

$

21.74

 

 

 

 

500

 

 

January 2021 – December 2021

 

$

19.74

 

Guidance

The Company is providing its initial third quarter and updated full year 2020 guidance as set forth in the table below (updated guidance in italics).

 

 

Q3 2020

 

FY 2020

Production MMcfe/d

 

580 - 600

 

565 - 585

% Gas

 

81% - 83%

 

81% - 83%

% NGL

 

11% - 13%

 

10% - 12%

% Oil

 

5% - 7%

 

6% - 8%

Gas Price Differential ($/Mcf)1,2

 

$(0.15) - $(0.30)

 

$(0.15) - $(0.25)

Oil Differential ($/Bbl)1,3

 

$(9.00) - $(11.00)

 

$(6.50) - $(7.50)

NGL Prices (% of WTI)1

 

27% - 32%

 

30% - 35%

Cash Production Costs ($/Mcfe)4

 

$1.25 - $1.35

 

$1.25 - $1.35

Cash G&A ($mm)5

 

$6 - $8

 

$29 - $32

CAPEX ($mm)

 

 

 

$120 - $140

1

Excludes impact of hedges

2

Excludes the cost of firm transportation

3

Full year 2020 amount (FY 2020) includes the impact of declining WTI price on reported oil differential in first quarter of 2020

4

Includes lease operating, transportation, gathering and compression, production and ad valorem taxes

5

Non-GAAP financial measure which excludes stock-based compensation expense, merger related expenses and severance. See reconciliation to the most comparable GAAP measure under “Cash General and Administrative Expense” in this press release

Conference Call

A conference call to review the Company’s second quarter 2020 financial and operational results is scheduled for Friday, August 7, 2020, at 10:00 a.m. Eastern Time. To participate in the call, please dial 877-709-8150 or 201-689-8354 for international callers and reference Montage Resources Second Quarter 2020 Earnings Call. A replay of the call will be available through October 7, 2020. To access the phone replay, dial 877-660-6853 or 201-612-7415 for international callers. The conference ID is 13707434. A live webcast of the call may be accessed through the Investor Center on the Company’s website at www.montageresources.com. The webcast will be archived for replay on the Company’s website for six months.

MONTAGE RESOURCES CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share amounts)

(Unaudited)

 

 

 

June 30,

2020

 

 

December 31,

2019

 

ASSETS

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

9,221

 

 

$

12,056

 

Accounts receivable

 

 

59,804

 

 

 

77,402

 

Assets held for sale

 

 

1,115

 

 

 

1,047

 

Other current assets

 

 

36,609

 

 

 

35,509

 

Total current assets

 

 

106,749

 

 

 

126,014

 

 

 

 

 

 

 

 

 

 

PROPERTY AND EQUIPMENT

 

 

 

 

 

 

 

 

Oil and natural gas properties, successful efforts method:

 

 

 

 

 

 

 

 

Unproved properties

 

 

487,066

 

 

 

508,576

 

Proved oil and gas properties, net

 

 

1,248,999

 

 

 

1,251,105

 

Other property and equipment, net

 

 

10,638

 

 

 

11,226

 

Total property and equipment, net

 

 

1,746,703

 

 

 

1,770,907

 

 

 

 

 

 

 

 

 

 

OTHER NONCURRENT ASSETS

 

 

 

 

 

 

 

 

Other assets

 

 

5,688

 

 

 

7,616

 

Operating lease right-of-use assets

 

 

33,692

 

 

 

36,975

 

Assets held for sale

 

 

3,430

 

 

 

9,665

 

TOTAL ASSETS

 

$

1,896,262

 

 

$

1,951,177

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

 

Accounts payable

 

$

133,741

 

 

$

119,907

 

Accrued capital expenditures

 

 

19,510

 

 

 

43,500

 

Accrued liabilities

 

 

29,283

 

 

 

53,866

 

Accrued interest payable

 

 

22,282

 

 

 

21,308

 

Liabilities associated with assets held for sale

 

 

4,052

 

 

 

2,815

 

Operating lease liability

 

 

13,826

 

 

 

12,666

 

Total current liabilities

 

 

222,694

 

 

 

254,062

 

 

 

 

 

 

 

 

 

 

NONCURRENT LIABILITIES

 

 

 

 

 

 

 

 

Debt, net of unamortized discount and debt issuance costs

 

 

501,928

 

 

 

500,541

 

Revolving credit facility

 

 

160,000

 

 

 

130,000

 

Asset retirement obligations

 

 

29,952

 

 

 

29,877

 

Other liabilities

 

 

21,240

 

 

 

8,029

 

Operating lease liability

 

 

20,247

 

 

 

24,569

 

Liabilities associated with assets held for sale

 

 

6,978

 

 

 

7,013

 

Total liabilities

 

 

963,039

 

 

 

954,091

 

COMMITMENTS AND CONTINGENCIES

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Preferred stock, 50,000,000 authorized, no shares issued and outstanding

 

 

 

 

 

 

Common stock, $0.01 par value, 1,000,000,000 authorized, 36,034,837 and 35,770,934 shares issued and outstanding, respectively

 

 

386

 

 

 

383

 

Additional paid in capital

 

 

2,354,929

 

 

 

2,352,309

 

Treasury stock, shares at cost; 2,600,672 and 2,508,485 shares, respectively

 

 

(10,511

)

 

 

(10,049

)

Accumulated deficit

 

 

(1,411,581

)

 

 

(1,345,557

)

Total stockholders’ equity

 

 

933,223

 

 

 

997,086

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$

1,896,262

 

 

$

1,951,177

 

MONTAGE RESOURCES CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(In thousands, except per share data)

(Unaudited)

 

 

 

For the Three Months Ended

June 30,

 

 

For the Six Months Ended

June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas, oil and natural gas liquids sales

 

$

83,082

 

 

$

143,429

 

 

$

206,953

 

 

$

275,257

 

Brokered natural gas and marketing revenue

 

 

7,540

 

 

 

11,989

 

 

 

17,028

 

 

 

21,519

 

Other revenue

 

 

62

 

 

 

122

 

 

 

127

 

 

 

261

 

Total revenues

 

 

90,684

 

 

 

155,540

 

 

 

224,108

 

 

 

297,037

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease operating

 

 

9,900

 

 

 

10,141

 

 

 

21,943

 

 

 

17,666

 

Transportation, gathering and compression

 

 

51,387

 

 

 

51,870

 

 

 

105,512

 

 

 

93,038

 

Production and ad valorem taxes

 

 

1,600

 

 

 

4,009

 

 

 

6,468

 

 

 

6,857

 

Brokered natural gas and marketing expense

 

 

7,746

 

 

 

11,983

 

 

 

17,004

 

 

 

21,443

 

Depreciation, depletion, amortization and accretion

 

 

42,768

 

 

 

38,597

 

 

 

86,903

 

 

 

68,494

 

Exploration

 

 

9,073

 

 

 

15,193

 

 

 

22,344

 

 

 

31,981

 

General and administrative

 

 

11,569

 

 

 

13,564

 

 

 

21,450

 

 

 

42,494

 

(Gain) loss on sale of assets

 

 

(1,911

)

 

 

1

 

 

 

(1,357

)

 

 

2

 

Other expense

 

 

19

 

 

 

12

 

 

 

34

 

 

 

38

 

Total operating expenses

 

 

132,151

 

 

 

145,370

 

 

 

280,301

 

 

 

282,013

 

OPERATING INCOME (LOSS)

 

 

(41,467

)

 

 

10,170

 

 

 

(56,193

)

 

 

15,024

 

OTHER INCOME (EXPENSE)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain (loss) on derivative instruments

 

 

(10,925

)

 

 

29,738

 

 

 

29,207

 

 

 

24,808

 

Interest expense, net

 

 

(14,930

)

 

 

(15,109

)

 

 

(29,764

)

 

 

(28,949

)

Other income

 

 

4

 

 

 

8

 

 

 

17

 

 

 

8

 

Total other income (expense), net

 

 

(25,851

)

 

 

14,637

 

 

 

(540

)

 

 

(4,133

)

INCOME (LOSS) FROM CONTINUING OPERATIONS

BEFORE INCOME TAXES

 

 

(67,318

)

 

 

24,807

 

 

 

(56,733

)

 

 

10,891

 

Income tax benefit (expense)

 

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS

 

 

(67,318

)

 

 

24,807

 

 

 

(56,733

)

 

 

10,891

 

Income (loss) from discontinued operations, net of income tax

 

 

(1,533

)

 

 

2,705

 

 

 

(9,291

)

 

 

2,523

 

NET INCOME (LOSS)

 

$

(68,851

)

 

$

27,512

 

 

$

(66,024

)

 

$

13,414

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS (LOSS) PER SHARE OF COMMON STOCK

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common stock outstanding

 

 

35,856

 

 

 

35,678

 

 

 

35,816

 

 

 

30,645

 

Income (loss) from continuing operations

 

$

(1.88

)

 

$

0.69

 

 

$

(1.58

)

 

$

0.36

 

Income (loss) from discontinued operations

 

 

(0.04

)

 

 

0.08

 

 

 

(0.26

)

 

 

0.08

 

Net income (loss)

 

$

(1.92

)

 

$

0.77

 

 

$

(1.84

)

 

$

0.44

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common stock outstanding

 

 

35,856

 

 

 

35,826

 

 

 

35,816

 

 

 

30,830

 

Income (loss) from continuing operations

 

$

(1.88

)

 

$

0.69

 

 

$

(1.58

)

 

$

0.36

 

Income (loss) from discontinued operations

 

 

(0.04

)

 

 

0.08

 

 

 

(0.26

)

 

 

0.08

 

Net income (loss)

 

$

(1.92

)

 

$

0.77

 

 

$

(1.84

)

 

$

0.44

 


Contacts

Montage Resources Corporation
Douglas Kris, Investor Relations
469-444-1736
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SAN ANTONIO--(BUSINESS WIRE)--NuStar Energy L.P. (NYSE: NS) announced today that Brad Barron, President and Chief Executive Officer; Tom Shoaf, Executive Vice President and Chief Financial Officer; Danny Oliver, Executive Vice President of Business Development & Engineering; Amy Perry, Executive Vice President of Strategic Development; Pam Schmidt, Vice President of Investor Relations, and other members of management will participate in virtual meetings with members of the investment community at the Citi 2020 One-on-One Midstream / Energy Infrastructure Conference on Wednesday, August 12, 2020 and Thursday, August 13, 2020. The materials to be discussed in the meetings will be available on the partnership’s website at 10:00 a.m. Eastern Time, Wednesday, August 12, 2020.


NuStar Energy L.P., a publicly traded master limited partnership based in San Antonio, is one of the largest independent liquids terminal and pipeline operators in the nation. NuStar currently has approximately 10,000 miles of pipeline and 75 terminal and storage facilities that store and distribute crude oil, refined products and specialty liquids. The partnership’s combined system has approximately 75 million barrels of storage capacity, and the partnership has operations in the United States, Canada and Mexico. For more information, visit NuStar Energy L.P.’s website at www.nustarenergy.com.


Contacts

NuStar Energy, L.P., San Antonio
Investors, Tim Delagarza, Manager, Investor Relations
Investor Relations: 210-918-INVR (4687)
or
Media, Mary Rose Brown, Executive Vice President and Chief Administrative Officer,
Corporate Communications: 210-918-2314
website: http://www.nustarenergy.com

LUXEMBOURG--(BUSINESS WIRE)--Pacific Drilling S.A. (NYSE: PACD) (“Pacific Drilling” or the “Company”) today reported results for the second quarter of 2020. Net loss for second-quarter 2020 was $87.4 million or $1.16 per diluted share, compared to net loss of $61.0 million or $0.81 per diluted share in first-quarter 2020.

Pacific Drilling CEO Bernie Wolford commented, “In the second quarter, our crews and leadership continued to exemplify our commitment to safe and efficient operations, including adopting measures to manage risks associated with COVID-19 transmission, delivering exceptional results for our clients, efficiently preserving the value of our assets and significantly reducing overhead costs.”

Mr. Wolford continued, “Although oil prices began to rebound during the second quarter, clients have generally reduced their drilling investments, as evidenced by Equinor’s decision to cancel the previously exercised third firm well for Pacific Khamsin, and Murphy’s decision to cancel the two well Mexico contract for the Pacific Sharav. In both cases our clients chose to pay a termination fee rather than perform the drilling programs. We expect the current contract for Pacific Khamsin to end in September 2020. Despite these headwinds for 2020, we are actively pursuing opportunities for contracts and are proud to extend our relationship with Murphy through a new contract for Pacific Sharav for 10 firm wells and 5 option wells in the U.S. Gulf of Mexico, which we expect to commence in the second quarter of 2021.”

Mr. Wolford concluded, “Although we currently see more contract opportunities for 2021, compared to 2020, contract durations remain relatively short, on average, and we expect excess rig supply to maintain downward pressure on dayrates. We have no debt maturities until 2023, and cash in excess of $252 million as of June 30, 2020. We project that we have sufficient liquidity to fund our cash needs over the next 12 months. However, due to current market conditions and our outlook for contracting opportunities through 2020 and 2021, we do not believe our current capital structure will be sustainable. We have engaged financial and legal advisors to assist us in evaluating various alternatives to address our longer-term liquidity outlook and capital structure, which may include a negotiated restructuring of our debt that is implemented under the protection of Chapter 11 of the U.S. Bankruptcy Code. We are currently engaged in discussions with a group of our creditors seeking to reach acceptable terms for a restructuring. Any such agreement that we may reach may include the equitization of all or certain of the Company’s indebtedness, which would place our common shareholders at significant risk of losing all of their interests in the Company. While we evaluate our strategic alternatives to address our liquidity outlook and current capital structure, we continue to deliver the safe, efficient and high-quality drilling services for which Pacific Drilling is recognized in our industry.”

Second-Quarter 2020 Operational and Financial Commentary

Contract drilling revenue for second-quarter 2020 was $38.9 million, which included $6.6 million in reimbursable revenue. This compared to first-quarter 2020 contract drilling revenue of $89.4 million, which included $6.4 million in reimbursable revenue. The decrease in revenue resulted primarily from the Pacific Sharav and the Pacific Bora completing their contracts in early April, and the Pacific Santa Ana earning a lower force majeure rate in April and a reduced standby rate for the reminder of the second quarter.

Operating expenses for second-quarter 2020 were $61.9 million, which included $4.5 million in reimbursable expenses. This compared to first-quarter 2020 operating expenses of $86.5 million, which included $5.8 million in reimbursable expenses. The decrease in operating expenses was due to the ramp down of costs on rigs transitioning from operating to standby and idle status.

General and administrative expenses for the second quarter of 2020 were $10.9 million, as compared to $9.6 million for the first quarter of 2020. The increase was due to advisory fees of $2.6 million and severance costs of $0.3 million incurred in the second quarter of 2020. Excluding the impact of such charges, the decrease in general and administrative expenses for the second quarter of 2020 resulted from a reduction in force implemented in May 2020 and a decrease in salaries for all employees.

Adjusted EBITDA(a) for second-quarter 2020 was $(31.1) million, compared to $(1.8) million in first-quarter 2020.

Capital expenditures for the second quarter of 2020 were $1.0 million compared to $5.9 million in the first quarter of 2020. The decrease was from deferral or elimination of rig projects with resulting second-quarter activity limited to required sustaining capital expenditures.

Footnotes

(a)

EBITDA and Adjusted EBITDA are non-GAAP financial measures. For a definition of EBITDA and Adjusted EBITDA and a reconciliation to net loss, please refer to the schedule included in this release. Management uses this operational metric to track company results and believes that this measure provides additional information that highlights the impact of our operating efficiency as well as the operating and support costs incurred in achieving the revenue performance.

Conference Call

Pacific Drilling will conduct a conference call at 10 a.m. Central time on Friday, August 7, 2020 to discuss second-quarter 2020 results. To access the conference call, participants are invited to register in advance by visiting bit.ly/Register2Q2020Call. Once registered an email will be immediately sent with dial-in and access code details. A replay of the call will be available the following day on the company’s website or by dialing +1 866-583-1035 and providing access code 9928370#.

About Pacific Drilling

With its best-in-class drillships and highly experienced team, Pacific Drilling is committed to exceeding our customers’ expectations by delivering the safest, most efficient and reliable deepwater drilling services in the industry. Pacific Drilling’s fleet of seven drillships represents one of the youngest and most technologically advanced fleets in the world. Pacific Drilling has principal offices in Luxembourg and Houston. For more information about Pacific Drilling, including our current Fleet Status, please visit our website at www.pacificdrilling.com.

Forward-Looking Statements

Certain statements and information contained in this press release constitute “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, and are generally identifiable by their use of words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “intend,” “our ability to,” “may,” “plan,” “potential,” “predict,” “project,” “projected,” “should,” “will,” “would”, or other similar words which are not generally historical in nature. The forward-looking statements speak only as of the date hereof, and we undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.

Our forward-looking statements express our current expectations or forecasts of possible future results or events, including the future impact of the COVID-19 pandemic on our business, future financial and operational performance and cash balances; the potential outcome of our discussions with our creditors and evaluation of our alternatives regarding our liquidity outlook and capital structure; our future liquidity position and future efforts to improve our liquidity position; revenue efficiency levels; market outlook; forecasts of trends; future client contract opportunities; future contract dayrates; our business strategies and plans or objectives of management; estimated duration of client contracts; backlog; expected capital expenditures; projected costs and savings; expectations regarding our two subsidiaries’ application to appeal the arbitration award against them related to the drillship known as the Pacific Zonda in favor of Samsung Heavy Industries Co. Ltd. (“SHI”), the outcome of such subsidiaries’ ongoing bankruptcy proceedings and the potential impact of the Tribunal’s decision on our future operations, financial position, result of operations and liquidity.

Although we believe that the assumptions and expectations reflected in our forward-looking statements are reasonable and made in good faith, these statements are not guarantees, and actual future results may differ materially due to a variety of factors. These statements are subject to a number of risks and uncertainties and are based on a number of judgments and assumptions as of the date such statements are made about future events, many of which are beyond our control. Actual events and results may differ materially from those anticipated, estimated, projected or implied by us in such statements due to a variety of factors, including if one or more of these risks or uncertainties materialize, or if our underlying assumptions prove incorrect.

Important factors that could cause actual results to differ materially from our expectations include: evolving risks from the COVID-19 pandemic and resulting significant disruption in international economies, and international financial and oil markets, including a substantial decline in the price of oil during 2020; the willingness and ability of existing lenders and holders of our notes to agree to any modifications to the terms of our long-term debt that we may request; whether additional capital at a reasonable cost becomes available to us; the global oil and gas market and its impact on demand for our services; the offshore drilling market, including changes in capital expenditures by our clients; changes in worldwide oil and gas supply and demand; rig availability and supply and demand for high-specification drillships and other drilling rigs competing with our fleet; our ability to enter into and negotiate favorable terms for new drilling contracts or extensions; our ability to successfully negotiate and consummate definitive contracts and satisfy other customary conditions with respect to letters of intent and letters of award that we receive for our drillships; actual contract commencement dates; possible cancellation, renegotiation, termination or suspension of drilling contracts as a result of force majeure, mechanical difficulties, performance, market changes or other reasons; costs related to stacking of rigs and costs to reactivate a stacked rig; downtime and other risks associated with offshore rig operations, including unscheduled repairs or maintenance, relocations, severe weather or hurricanes or accidents; our small fleet and reliance on a limited number of clients; the risks of litigation in foreign jurisdictions and delays caused by third parties in connection with such litigation; the outcome of our two subsidiaries’ bankruptcy proceedings and any actions that SHI or others may take in the bankruptcy or other proceedings against the Company and its subsidiaries; the risk that our common shares could be delisted from trading on the New York Stock Exchange should we fail to regain compliance with the minimum share price continued listing standard during the cure period, or fail to meet other continued listing criteria; and the other risk factors described in our 2019 Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 12, 2020 and our subsequent filings with the SEC. These documents are available through our website at www.pacificdrilling.com or through the SEC’s website at www.sec.gov.

PACIFIC DRILLING S.A. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(in thousands, except per share information) (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

March 31,

 

June 30,

 

June 30,

 

June 30,

 

 

2020

 

2020

 

2019

 

2020

 

2019

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contract drilling

 

$

38,910

 

 

$

89,433

 

 

$

76,415

 

 

$

128,343

 

 

$

142,331

 

Costs and expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

61,854

 

 

 

86,475

 

 

 

52,254

 

 

 

148,329

 

 

 

104,550

 

General and administrative expenses

 

 

10,857

 

 

 

9,643

 

 

 

10,010

 

 

 

20,500

 

 

 

21,256

 

Depreciation and amortization expense

 

 

26,811

 

 

 

26,931

 

 

 

59,330

 

 

 

53,742

 

 

 

118,229

 

Loss from unconsolidated subsidiaries

 

 

 

 

 

 

700

 

 

 

 

 

2,024

 

 

 

 

99,522

 

 

 

123,049

 

 

 

122,294

 

 

 

222,571

 

 

 

246,059

 

Operating loss

 

 

(60,612

)

 

 

(33,616

)

 

 

(45,879

)

 

 

(94,228

)

 

 

(103,728

)

Other income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(26,607

)

 

 

(25,127

)

 

 

(24,406

)

 

 

(51,734

)

 

 

(48,445

)

Reorganization items

 

 

(248

)

 

 

(114

)

 

 

(878

)

 

 

(362

)

 

 

(1,881

)

Interest income

 

 

520

 

 

 

807

 

 

 

1,665

 

 

 

1,327

 

 

 

3,637

 

Other income (expense)

 

 

1

 

 

 

(213

)

 

 

(220

)

 

 

(212

)

 

 

(311

)

Loss before income taxes

 

 

(86,946

)

 

 

(58,263

)

 

 

(69,718

)

 

 

(145,209

)

 

 

(150,728

)

Income tax expense

 

 

452

 

 

 

2,700

 

 

 

3,868

 

 

 

3,152

 

 

 

6,837

 

Net loss

 

$

(87,398

)

 

$

(60,963

)

 

$

(73,586

)

 

$

(148,361

)

 

$

(157,565

)

Loss per common share, basic

 

$

(1.16

)

 

$

(0.81

)

 

$

(0.98

)

 

$

(1.97

)

 

$

(2.10

)

Weighted average shares outstanding, basic

 

 

75,199

 

 

 

75,184

 

 

 

75,001

 

 

 

75,191

 

 

 

75,016

 

Loss per common share, diluted

 

$

(1.16

)

 

$

(0.81

)

 

$

(0.98

)

 

$

(1.97

)

 

$

(2.10

)

Weighted average shares outstanding, diluted

 

 

75,199

 

 

 

75,184

 

 

 

75,001

 

 

 

75,191

 

 

 

75,016

 

PACIFIC DRILLING S.A. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(in thousands) (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

March 31,

 

December 31,

 

 

2020

 

2020

 

2019

Assets:

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

246,311

 

 

$

273,957

 

 

$

278,620

 

Restricted cash

 

 

6,106

 

 

 

6,106

 

 

 

6,089

 

Accounts receivable, net

 

 

27,084

 

 

 

65,629

 

 

 

29,252

 

Materials and supplies

 

 

45,101

 

 

 

45,577

 

 

 

43,933

 

Deferred costs, current

 

 

8,441

 

 

 

10,979

 

 

 

16,961

 

Prepaid expenses and other current assets

 

 

13,196

 

 

 

21,532

 

 

 

15,732

 

Total current assets

 

 

346,239

 

 

 

423,780

 

 

 

390,587

 

Property and equipment, net

 

 

1,790,927

 

 

 

1,816,969

 

 

 

1,842,549

 

Other assets

 

 

29,777

 

 

 

26,158

 

 

 

23,423

 

Total assets

 

$

2,166,943

 

 

$

2,266,907

 

 

$

2,256,559

 

 

 

 

 

 

 

 

 

 

 

Liabilities and shareholders’ equity:

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

19,046

 

 

$

24,017

 

 

$

24,223

 

Accrued expenses

 

 

23,738

 

 

 

25,733

 

 

 

27,924

 

Accrued interest

 

 

15,703

 

 

 

31,406

 

 

 

15,703

 

Deferred revenue, current

 

 

4,129

 

 

 

5,428

 

 

 

7,567

 

Total current liabilities

 

 

62,616

 

 

 

86,584

 

 

 

75,417

 

Long-term debt

 

 

1,142,431

 

 

 

1,132,826

 

 

 

1,073,734

 

Other long-term liabilities

 

 

38,052

 

 

 

38,061

 

 

 

38,577

 

Total liabilities

 

 

1,243,099

 

 

 

1,257,471

 

 

 

1,187,728

 

Shareholders’ equity:

 

 

 

 

 

 

 

 

 

Common shares

 

 

752

 

 

 

752

 

 

 

751

 

Additional paid-in capital

 

 

1,656,054

 

 

 

1,654,248

 

 

 

1,652,681

 

Treasury shares, at cost

 

 

(652

)

 

 

(652

)

 

 

(652

)

Accumulated deficit

 

 

(732,310

)

 

 

(644,912

)

 

 

(583,949

)

Total shareholders’ equity

 

 

923,844

 

 

 

1,009,436

 

 

 

1,068,831

 

Total liabilities and shareholders’ equity

 

$

2,166,943

 

 

$

2,266,907

 

 

$

2,256,559

 

PACIFIC DRILLING S. A. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(in thousands) (unaudited)

 

 

 

 

 

 

 

 

 

Six Months Ended

 

 

June 30,

 

June 30,

 

 

2020

 

2019

 

 

 

 

 

 

 

Cash flow from operating activities:

 

 

 

 

 

 

Net loss

 

$

(148,361

)

 

$

(157,565

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

Depreciation and amortization expense

 

 

53,742

 

 

 

118,229

 

Amortization of deferred revenue

 

 

(8,943

)

 

 

(1,146

)

Amortization of deferred costs

 

 

15,422

 

 

 

586

 

Amortization of deferred financing costs

 

 

269

 

 

 

Amortization of debt premium, net

 

 

(332

)

 

 

(221

)

Interest paid-in-kind

 

 

19,029

 

 

 

16,923

 

Deferred income taxes

 

 

82

 

 

 

4,760

 

Share-based compensation expense

 

 

3,654

 

 

 

3,064

 

Loss on unconsolidated subsidiaries

 

 

 

 

2,024

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

2,168

 

 

 

(24,854

)

Materials and supplies

 

 

(1,168

)

 

 

(2,012

)

Deferred costs

 

 

(12,713

)

 

 

(4,347

)

Prepaid expenses and other assets

 

 

3,460

 

 

 

(12,906

)

Accounts payable and accrued expenses

 

 

(5,041

)

 

 

3,155

 

Deferred revenue

 

 

5,505

 

 

 

2,444

 

Net cash used in operating activities

 

 

(73,227

)

 

 

(51,866

)

Cash flow from investing activities:

 

 

 

 

 

 

Capital expenditures

 

 

(6,967

)

 

 

(21,454

)

Net cash used in investing activities

 

 

(6,967

)

 

 

(21,454

)

Cash flow from financing activities:

 

 

 

 

 

 

Payments for shares issued under share-based compensation plan

 

 

(280

)

 

 

Proceeds from long-term debt

 

 

50,000

 

 

 

Payments for financing costs

 

 

(1,818

)

 

 

(1,115

)

Purchases of treasury shares

 

 

 

 

(652

)

Net cash provided by (used in) financing activities

 

 

47,902

 

 

 

(1,767

)

Net decrease in cash and cash equivalents

 

 

(32,292

)

 

 

(75,087

)

Cash, cash equivalents and restricted cash, beginning of period

 

 

284,709

 

 

 

389,075

 

Cash, cash equivalents and restricted cash, end of period

 

$

252,417

 

 

$

313,988

 

EBITDA and Adjusted EBITDA Reconciliation

EBITDA is defined as earnings before interest expense, taxes, depreciation and amortization. Beginning with the fourth quarter of 2019, management has redefined EBITDA for the current and comparative periods to exclude amortization of deferred revenue and deferred costs, which are included in contract drilling revenues and operating expenses respectively in the statements of operations. Management believes such measure of EBITDA is consistent with the conventional definition of EBITDA, allows for greater transparency of the Company’s core operating performance, and is in line with historical treatment by certain other major offshore drilling contractors and supply vessel owners. Adjusted EBITDA is defined as EBITDA before loss from unconsolidated subsidiaries and reorganization items. EBITDA and Adjusted EBITDA do not represent and should not be considered an alternative to net income, operating income, cash flow from operations or any other measure of financial performance presented in accordance with U.S. generally accepted accounting principles (“GAAP”) and our calculation of EBITDA and Adjusted EBITDA may not be comparable to that reported by other companies. EBITDA and Adjusted EBITDA are included herein because they are used by management to measure the Company’s operations. Management believes that EBITDA and Adjusted EBITDA present useful information to investors regarding the Company’s operating performance.

PACIFIC DRILLING S.A. AND SUBSIDIARIES

Supplementary Data—Reconciliation of Net Loss to Non-GAAP EBITDA and Adjusted EBITDA

(in thousands) (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

March 31,

 

June 30,

 

June 30,

 

June 30,

 

 

2020

 

2020

 

2019

 

2020

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(87,398

)

 

$

(60,963

)

 

$

(73,586

)

 

$

(148,361

)

 

$

(157,565

)

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

26,607

 

 

 

25,127

 

 

 

24,406

 

 

 

51,734

 

 

 

48,445

 

Depreciation and amortization expense

 

 

26,811

 

 

 

26,931

 

 

 

59,330

 

 

 

53,742

 

 

 

118,229

 

Other amortization, net (a)

 

 

2,146

 

 

 

4,333

 

 

 

(423

)

 

 

6,479

 

 

 

(560

)

Income tax expense

 

 

452

 

 

 

2,700

 

 

 

3,868

 

 

 

3,152

 

 

 

6,837

 

EBITDA (b)

 

$

(31,382

)

 

$

(1,872

)

 

$

13,595

 

 

$

(33,254

)

 

$

15,386

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from unconsolidated subsidiaries

 

 

 

 

 

 

700

 

 

 

 

 

2,024

 

Reorganization items

 

 

248

 

 

 

114

 

 

 

878

 

 

 

362

 

 

 

1,881

 

Adjusted EBITDA (b)

 

$

(31,134

)

 

$

(1,758

)

 

$

15,173

 

 

$

(32,892

)

 

$

19,291

 

(a)

Other amortization, net includes amortization of deferred costs less amortization of deferred revenue.

(b)

EBITDA and Adjusted EBITDA include $2.6 million in advisory fees and $2.5 million in severance for both the three and six months ended June 30, 2020; advisory fees are included in general and administrative expenses, $0.3 million of severance is included in general and administrative expenses and the balance of severance is in operating expenses.

 


Contacts

Investor:
James Harris
Pacific Drilling S.A.
+713 334 6662
This email address is being protected from spambots. You need JavaScript enabled to view it.

Media:
Amy Roddy
Pacific Drilling S.A.
+713 334 6662
This email address is being protected from spambots. You need JavaScript enabled to view it.

LONDON--(BUSINESS WIRE)--#AutomatedContainerTerminalMarket--Technavio has been monitoring the automated container terminal market and it is poised to grow by USD 1.04 billion during 2020-2024, progressing at a CAGR of 2% during the forecast period. The report offers an up-to-date analysis regarding the current market scenario, latest trends and drivers, and the overall market environment.



Although the COVID-19 pandemic continues to transform the growth of various industries, the immediate impact of the outbreak is varied. While a few industries will register a drop in demand, numerous others will continue to remain unscathed and show promising growth opportunities. Technavio’s in-depth research has all your needs covered as our research reports include all foreseeable market scenarios, including pre- & post-COVID-19 analysis. Download a Free Sample Report on COVID-19 Impacts

Frequently Asked Questions-

  • Which is the leading segment based on product in the market?
  • The equipment segment is expected to be the leading segment based on product during the forecast period.
  • What is the major trend for market?
  • Growth in automated container terminals in emerging markets is a major growth factor for the market.
  • At what rate is the market projected to grow?
  • Growing at a CAGR of over 2%, the incremental growth of the market is anticipated to be USD 1.04 billion.
  • Who are the top players in the market?
  • ABB Ltd., Camco Technologies, Cargotec Corp., CyberLogitec Co. Ltd., Identec Group AG, Konecranes Plc, Künz GmbH, Liebherr-International AG, ORBCOMM Inc., and Shanghai Zhenhua Heavy Industries Co. Ltd. are some of the major market participants.
  • What are the key market drivers and challenges?
  • Robotization of container terminals in the US and growth of automated container terminals in emerging markets are the major factors driving the market. However, the high capital investment and maintenance costs will restrain market growth.

The market is concentrated, and the degree of concentration will accelerate during the forecast period. ABB Ltd., Camco Technologies, Cargotec Corp., CyberLogitec Co. Ltd., Identec Group AG, Konecranes Plc, Künz GmbH, Liebherr-International AG, ORBCOMM Inc., and Shanghai Zhenhua Heavy Industries Co. Ltd. are some of the major market participants. The robotization of container terminals in the US will offer immense growth opportunities. To make the most of the opportunities, market vendors should focus more on the growth prospects in fast-growing segments, while maintaining their position in the slow-growing segments.

Buy 1 Technavio report and get the second for 50% off. Buy 2 Technavio reports and get the third for free.

View market snapshot before purchasing

​​​​​​​Technavio's custom research reports offer detailed insights on the impact of COVID-19 at an industry level, a regional level, and subsequent supply chain operations. This customized report will also help clients keep up with new product launches in direct & indirect COVID-19 related markets, upcoming vaccines and pipeline analysis, and significant developments in vendor operations and government regulations.

Automated Container Terminal Market 2020-2024: Segmentation

Automated Container Terminal Market is segmented as below:

  • Product
    • Equipment
    • Software
  • Geography
    • APAC
    • Europe
    • North America
    • South America
    • MEA

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=IRTNTR43853

Automated Container Terminal 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. The automated container terminal market report covers the following areas:

  • Automated Container Terminal Market Size
  • Automated Container Terminal Market Trends
  • Automated Container Terminal Market Analysis

This study identifies growth in automated container terminals in emerging markets as one of the prime reasons driving the automated container terminal market growth during the next few years.

Technavio suggests three forecast scenarios (optimistic, probable, and pessimistic) considering the impact of COVID-19. Technavio’s in-depth research has direct and indirect COVID-19 impacted market research reports.

Register for a free trial today and gain instant access to 17,000+ market research reports. Technavio's SUBSCRIPTION platform

Automated Container Terminal Market 2020-2024: Key Highlights

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

Table of Contents:

Executive Summary

Market Landscape

  • Market ecosystem
  • Value chain analysis

Market Sizing

  • Market definition
  • Market segment analysis
  • Market size 2019
  • Market outlook: Forecast for 2019 - 2024

Five Forces Analysis

  • Five forces summary
  • Bargaining power of buyers
  • Bargaining power of suppliers
  • Threat of new entrants
  • Threat of substitutes
  • Threat of rivalry
  • Market condition

Market Segmentation by Product

  • Market segments
  • Comparison by Product
  • Equipment - Market size and forecast 2019-2024
  • Software - Market size and forecast 2019-2024
  • Market opportunity by Product

Customer Landscape

Geographic Landscape

  • Geographic segmentation
  • Geographic comparison
  • APAC - Market size and forecast 2019-2024
  • Europe - Market size and forecast 2019-2024
  • North America - Market size and forecast 2019-2024
  • South America - Market size and forecast 2019-2024
  • MEA - Market size and forecast 2019-2024
  • Key leading countries
  • Market opportunity by geography
  • Market drivers
  • Market challenges
  • Market trends

Vendor Landscape

  • Vendor landscape
  • Landscape disruption
  • Competitive scenario

Vendor Analysis

  • Vendors covered
  • Market positioning of vendors
  • ABB Ltd.
  • Camco Technologies
  • Cargotec Corp.
  • CyberLogitec Co. Ltd.
  • Identec Group AG
  • Konecranes Plc
  • Künz GmbH
  • Liebherr-International AG
  • ORBCOMM Inc.
  • Shanghai Zhenhua Heavy Industries Co. Ltd.

Appendix

  • Scope of the report
  • Currency conversion rates for US$
  • Research methodology
  • List of abbreviations 

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
US: +1 844 364 1100
UK: +44 203 893 3200
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Website: www.technavio.com/

OKLAHOMA CITY--(BUSINESS WIRE)--Enable Midstream Partners, LP (NYSE: ENBL) announced today that members of its senior management are scheduled to meet with investors at the following upcoming virtual investor conferences:


  • Citi Midstream and Energy Infrastructure Conference on Wednesday, Aug. 12, 2020
  • Barclays CEO Energy-Power Conference on Wednesday, Sept. 9, 2020

The presentation materials used at these conferences will be available for download on the investor page of Enable’s website at investors.enablemidstream.com.

ABOUT ENABLE MIDSTREAM PARTNERS

Enable owns, operates and develops strategically located natural gas and crude oil infrastructure assets. Enable’s assets include approximately 14,000 miles of natural gas, crude oil, condensate and produced water gathering pipelines, approximately 2.6 Bcf/d of natural gas processing capacity, approximately 7,800 miles of interstate pipelines (including Southeast Supply Header, LLC of which Enable owns 50 percent), approximately 2,200 miles of intrastate pipelines and seven natural gas storage facilities comprising 84.5 billion cubic feet of storage capacity. For more information, visit www.enablemidstream.com.


Contacts

Media
Leigh Ann Williams
(405) 553-6947

Investor
Matt Beasley
(405) 558-4600

LONDON--(BUSINESS WIRE)--#GlobalWindTowerMarket--Technavio has been monitoring the wind tower market and it is poised to grow by USD 6.75 billion during 2020-2024, progressing at a CAGR of 4% during the forecast period. The report offers an up-to-date analysis regarding the current market scenario, latest trends and drivers, and the overall market environment.



Although the COVID-19 pandemic continues to transform the growth of various industries, the immediate impact of the outbreak is varied. While a few industries will register a drop in demand, numerous others will continue to remain unscathed and show promising growth opportunities. Technavio’s in-depth research has all your needs covered as our research reports include all foreseeable market scenarios, including pre- & post-COVID-19 analysis. Download a Free Sample Report on COVID-19 Impacts

Frequently Asked Questions-

  • Which is the leading segment based on product in the market?
  • The tubular steel towers segment is expected to be the leading segment based on product during the forecast period.
  • What is the major trend for market?
  • Development of airborne wind turbines is a major growth factor for the market.
  • At what rate is the market projected to grow?
  • Growing at a CAGR of over 4%, the incremental growth of the market is anticipated to be USD 6.75 billion.
  • Who are the top players in the market?
  • Acciona SA, Arcosa Inc., Broadwind Energy Inc., CS WIND Corp., ENERCON GmbH, Nordex SE, Valmont Industries Inc., Vestas Wind System AS, Windar Renovables, and Xinjiang Goldwind Science & Technology Co. Ltd. are some of the major market participants.
  • What are the key market drivers and challenges?
  • Increasing demand for heightened wind towers and development of airborne wind turbines are the major factors driving the market. However, competition from alternative sources of energy will restrain market growth.

The market is fragmented, and the degree of fragmentation will accelerate during the forecast period. Acciona SA, Arcosa Inc., Broadwind Energy Inc., CS WIND Corp., ENERCON GmbH, Nordex SE, Valmont Industries Inc., Vestas Wind System AS, Windar Renovables, and Xinjiang Goldwind Science & Technology Co. Ltd. are some of the major market participants. The increasing demand for heightened wind towers will offer immense growth opportunities. To make the most of the opportunities, market vendors should focus more on the growth prospects in fast-growing segments, while maintaining their position in the slow-growing segments.

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Technavio's custom research reports offer detailed insights on the impact of COVID-19 at an industry level, a regional level, and subsequent supply chain operations. This customized report will also help clients keep up with new product launches in direct & indirect COVID-19 related markets, upcoming vaccines and pipeline analysis, and significant developments in vendor operations and government regulations.

Wind Tower Market 2020-2024: Segmentation

Wind Tower Market is segmented as below:

  • Product
    • Tubular Steel Towers
    • Concrete Towers
    • Other Towers
  • Geography
    • APAC
    • Europe
    • North America
    • South America
    • MEA
  • Application
    • Onshore
    • Offshore

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=IRTNTR43760

Wind Tower 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. The wind tower market report covers the following areas:

  • Wind Tower Market Size
  • Wind Tower Market Trends
  • Wind Tower Market Analysis

This study identifies development of airborne wind turbines as one of the prime reasons driving the wind tower market growth during the next few years.

Technavio suggests three forecast scenarios (optimistic, probable, and pessimistic) considering the impact of COVID-19. Technavio’s in-depth research has direct and indirect COVID-19 impacted market research reports.

Register for a free trial today and gain instant access to 17,000+ market research reports. Technavio's SUBSCRIPTION platform

Wind Tower Market 2020-2024: Key Highlights

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

Table of Contents:

Executive Summary

  • Market Overview

Market Landscape

  • Market ecosystem
  • Value chain analysis

Market Sizing

  • Market definition
  • Market segment analysis
  • Market size 2019
  • Market outlook: Forecast for 2019 - 2024

Five Forces Analysis

  • Five forces summary
  • Bargaining power of buyers
  • Bargaining power of suppliers
  • Threat of new entrants
  • Threat of substitutes
  • Threat of rivalry
  • Market condition

Market Segmentation by Product

  • Market segments
  • Comparison by Product
  • Tubular steel towers - Market size and forecast 2019-2024
  • Concrete towers - Market size and forecast 2019-2024
  • Other towers - Market size and forecast 2019-2024
  • Market opportunity by Product

Market Segmentation by Application

  • Market segments
  • Comparison by Application
  • Onshore - Market size and forecast 2019-2024
  • Offshore - Market size and forecast 2019-2024
  • Market opportunity by Application

Customer landscape

  • Overview

Geographic Landscape

  • Geographic segmentation
  • Geographic comparison
  • APAC - Market size and forecast 2019-2024
  • Europe - Market size and forecast 2019-2024
  • North America - Market size and forecast 2019-2024
  • South America - Market size and forecast 2019-2024
  • MEA - Market size and forecast 2019-2024
  • Key leading countries
  • Market opportunity by geography
  • Market drivers
  • Market challenges
  • Market trends

Vendor Landscape

  • Overview
  • Landscape disruption

Vendor Analysis

  • Vendors covered
  • Market positioning of vendors
  • Acciona SA
  • Arcosa Inc.
  • Broadwind Energy Inc.
  • CS WIND Corp.
  • ENERCON GmbH
  • Nordex SE
  • Valmont Industries Inc.
  • Vestas Wind System AS
  • Windar Renovables
  • Xinjiang Goldwind Science & Technology Co. Ltd.

Appendix

  • Scope of the report
  • Currency conversion rates for US$
  • Research methodology
  • List of abbreviations

     

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
US: +1 844 364 1100
UK: +44 203 893 3200
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Website: www.technavio.com/

NEWPORT BEACH, Calif.--(BUSINESS WIRE)--Clean Energy Fuels Corp. (NASDAQ: CLNE) (“Clean Energy” or the “Company”) today announced its operating results for the second quarter of 2020.

Andrew J. Littlefair, Clean Energy’s President and Chief Executive Officer, stated, “Our second quarter results were better than expected given the COVID-19 circumstances. I am very proud of our workforce for their dedication to performing their jobs safely and with the same quality as always. We also ended the quarter with $96 million in cash and investments and $37 million of debt. And more recently we signed another important agreement with another world class energy major, Chevron, that will expand the use of clean carbon-negative RNG for trucks in the ports of Los Angeles and Long Beach. This partnership reflects further and continued recognition of the powerful clean air solution RNG represents, which is available today to fuel near-zero natural gas trucks.”

The Company delivered 89.5 million gallons in the second quarter of 2020, a 10% decrease from 99.6 million in the second quarter of 2019. This decrease was due to a slowdown in activity in the second quarter of 2020 as a result of COVID-19, which was primarily experienced in the airports (fleet services), public transit and government fleet customer markets.

The Company’s revenue for the second quarter of 2020 was $59.9 million, a decrease of 17.2% compared to $72.3 million for the second quarter of 2019. Revenue for the second quarter of 2020 included $4.4 million from U.S. federal excise tax credits for alternative fuels ("AFTC"), which applied to vehicle fuel sales made from April 1, 2020 through June 30, 2020, and an unrealized loss of $1.5 million on commodity swap and customer fueling contracts relating to the Company’s Zero Now truck financing program. Revenue for the second quarter of 2019 included an unrealized gain of $0.6 million on commodity swap and customer fueling contracts relating to the Company’s Zero Now program. Excluding the AFTC revenue in the second quarter of 2020 and the unrealized loss and gain on commodity swap and customer fueling contracts in the second quarter of both 2020 and 2019, respectively, revenue for the second quarter of 2020 decreased by 20.6% to $57.0 million compared to $71.7 million for the second quarter of 2019. This decrease was principally due to lower volumes and lower effective fuel prices resulting from lower natural gas prices and the fuel price mix, which is based on the variation of fuel types and locations where we deliver fuel. Station construction revenue was $5.3 million for the second quarter of 2020 compared to $5.9 million for the second quarter of 2019.

The Company’s revenue for the six months ended June 30, 2020 was $145.9 million, a decrease of 2.8% compared to $150.0 million for the six months ended June 30, 2019. Revenue for the six months ended June 30, 2020 included $9.8 million from AFTC revenue, which applied to vehicle fuel sales made from January 1, 2020 through June 30, 2020, and an unrealized gain of $4.2 million on commodity swap and customer fueling contracts relating to the Company’s Zero Now truck financing program. Revenue for the six months ended June 30, 2019 included an unrealized loss of $4.4 million on commodity swap and customer fueling contracts relating to the Company’s Zero Now program. Excluding the AFTC revenue in the six months ended June 30, 2020 and the unrealized gain and loss on commodity swap and customer fueling contracts in both the 2020 and 2019 periods, revenue for the six months ended June 30, 2020 decreased by 14.6% to $131.9 million compared to $154.4 million for the six months ended June 30, 2019. This was principally due to lower effective fuel prices resulting from lower natural gas prices and the fuel price mix, which is based on the variation of fuel types and locations where we deliver fuel, and lower volumes. The decrease in revenue from lower effective fuels price and volumes was partially offset by higher station construction revenue, which was $10.8 million for the six months ended June 30, 2020 compared to $9.1 million for the six months ended June 30, 2019.

On a GAAP (as defined below) basis, net loss attributable to Clean Energy for the second quarter of 2020 was $(6.7) million, or $(0.03) per share, compared to $(5.4) million, or $(0.03) per share, for the second quarter of 2019. The second quarter of 2020 was positively affected by AFTC revenue and negatively affected by the unrealized loss on commodity swap and customer fueling contracts, while the comparable 2019 period was positively affected by the unrealized gain on commodity swap and customer fueling contracts.

On a GAAP basis, net loss attributable to Clean Energy for the six months ended June 30, 2020 was $(5.0) million, or $(0.02) per share, compared to $(16.3) million, or $(0.08) per share, for the six months ended June 30, 2019. The six months ended June 30, 2020 was positively affected by AFTC revenue and the unrealized gain on commodity swap and customer fueling contracts, while the comparable 2019 period was negatively affected by the unrealized loss on commodity swap and customer fueling contracts.

Non-GAAP loss per share and Adjusted EBITDA (each as defined below) for the second quarter of 2020 was $(0.02) and $9.2 million, respectively. Non-GAAP loss per share and Adjusted EBITDA for the second quarter of 2019 was $(0.02) and $8.9 million, respectively.

Non-GAAP loss per share and Adjusted EBITDA for the six months ended June 30, 2020 was $(0.03) and $20.5 million, respectively. Non-GAAP loss per share and Adjusted EBITDA for the six months ended June 30, 2019 was $(0.04) and $20.1 million, respectively.

Non-GAAP loss per share and Adjusted EBITDA are described below and reconciled to GAAP net loss per share attributable to Clean Energy and GAAP net loss attributable to Clean Energy, respectively.

Non-GAAP Financial Measures

To supplement the Company’s unaudited condensed consolidated financial statements presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”), the Company uses non-GAAP financial measures that it calls non-GAAP income (loss) per share (“non-GAAP income (loss) per share”) and adjusted EBITDA (“Adjusted EBITDA”). Management presents non-GAAP income (loss) per share and Adjusted EBITDA because it believes these measures provide meaningful supplemental information about the Company’s performance, for the following reasons: (1) these measures allow for greater transparency with respect to key metrics used by management to assess the Company’s operating performance and make financial and operational decisions; (2) these measures exclude the effect of items that management believes are not directly attributable to the Company’s core operating performance and may obscure trends in the business; and (3) these measures are used by institutional investors and the analyst community to help analyze the Company’s business. In future quarters, the Company may make adjustments for other expenditures, charges or gains to present non-GAAP financial measures that the Company’s management believes are indicative of the Company’s core operating performance.

Non-GAAP financial measures are limited as an analytical tool and should not be considered in isolation from, or as a substitute for, the Company’s GAAP results. The Company expects to continue reporting non-GAAP financial measures, adjusting for the items described below (and/or other items that may arise in the future as the Company’s management deems appropriate), and the Company expects to continue to incur expenses, charges or gains similar to the non-GAAP adjustments described below. Accordingly, unless expressly stated otherwise, the exclusion of these and other similar items in the presentation of non-GAAP financial measures should not be construed as an inference that these costs are unusual, infrequent or non-recurring. Non-GAAP income (loss) per share and Adjusted EBITDA are not recognized terms under GAAP and do not purport to be an alternative to GAAP income (loss), GAAP income (loss) per share or any other GAAP measure as an indicator of operating performance. Moreover, because not all companies use identical measures and calculations, the Company’s presentation of non-GAAP income (loss) per share and Adjusted EBITDA may not be comparable to other similarly titled measures used by other companies.

Non-GAAP Income (Loss) Per Share

Non-GAAP income (loss) per share, which the Company presents as a non-GAAP measure of its performance, is defined as net income (loss) attributable to Clean Energy Fuels Corp., plus stock-based compensation expense, plus (minus) loss (income) from equity method investments, and plus (minus) any loss (gain) from changes in the fair value of derivative instruments, the total of which is divided by the Company’s weighted-average common shares outstanding on a diluted basis. The Company’s management believes excluding non-cash expenses related to stock-based compensation provides useful information to investors regarding the Company’s performance because of the varying available valuation methodologies, the volatility of the expense (which depends on market forces outside of management’s control), the subjectivity of the assumptions and the variety of award types that a company can use, which may obscure trends in a company’s core operating performance. Similarly, the Company believes excluding the non-cash results from equity method investments is useful to investors because these charges are not part of or representative of the core operations of the Company. In addition, the Company’s management believes excluding the non-cash loss (gain) from changes in the fair value of derivative instruments is useful to investors because the valuation of the derivative instruments is based on a number of subjective assumptions, the amount of the loss or gain is derived from market forces outside of management’s control, and the exclusion of these amounts enables investors to compare the Company’s performance with other companies that do not use, or use different forms of, derivative instruments.

The table below shows GAAP and non-GAAP loss attributable to Clean Energy per share and also reconciles GAAP net loss attributable to Clean Energy to an adjusted net loss figure used in the calculation of non-GAAP loss per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

June 30,

(in thousands, except share and per share data)

 

2019

 

 

2020

 

 

2019

 

 

2020

 

Net loss attributable to Clean Energy Fuels Corp.

 

$

(5,383

)

 

$

(6,736

)

 

$

(16,329

)

 

$

(5,032

)

Stock-based compensation

 

 

918

 

 

 

760

 

 

 

2,164

 

 

 

1,814

 

Loss from equity method investments

 

 

33

 

 

 

502

 

 

 

500

 

 

 

357

 

Loss (gain) from change in fair value of derivative instruments

 

 

(582

)

 

 

1,022

 

 

 

5,992

 

 

 

(4,205

)

Adjusted (non-GAAP) net loss

 

$

(5,014

)

 

$

(4,452

)

 

$

(7,673

)

 

$

(7,066

)

Diluted weighted-average common shares outstanding

 

 

204,653,723

 

 

 

200,670,137

 

 

 

204,426,459

 

 

 

202,831,346

 

GAAP loss attributable to Clean Energy Fuels Corp. per share

 

$

(0.03

)

 

$

(0.03

)

 

$

(0.08

)

 

$

(0.02

)

Non-GAAP loss attributable to Clean Energy Fuels Corp. per share

 

$

(0.02

)

 

$

(0.02

)

 

$

(0.04

)

 

$

(0.03

)

Adjusted EBITDA

Adjusted EBITDA, which the Company presents as a non-GAAP measure of its performance, is defined as net income (loss) attributable to Clean Energy, plus (minus) income tax expense (benefit), plus interest expense, minus interest income, plus depreciation and amortization expense, plus stock-based compensation expense, plus (minus) loss (income) from equity method investments, and plus (minus) any loss (gain) from changes in the fair value of derivative instruments. The Company’s management believes Adjusted EBITDA provides useful information to investors regarding the Company’s performance for the same reasons discussed above with respect to non-GAAP income (loss) per share. In addition, management internally uses Adjusted EBITDA to determine elements of executive and employee compensation.

The table below shows Adjusted EBITDA and also reconciles this figure to GAAP net loss attributable to Clean Energy:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

June 30,

(in thousands, except share and per share data)

 

2019

 

 

2020

 

 

2019

 

 

2020

 

Net loss attributable to Clean Energy Fuels Corp.

 

$

(5,383

)

 

$

(6,736

)

 

$

(16,329

)

 

$

(5,032

)

Income tax expense

 

 

66

 

 

 

78

 

 

 

126

 

 

 

156

 

Interest expense

 

 

1,842

 

 

 

1,841

 

 

 

3,733

 

 

 

4,051

 

Interest income

 

 

(567

)

 

 

(273

)

 

 

(1,147

)

 

 

(654

)

Depreciation and amortization

 

 

12,605

 

 

 

12,050

 

 

 

25,084

 

 

 

23,974

 

Stock-based compensation

 

 

918

 

 

 

760

 

 

 

2,164

 

 

 

1,814

 

Loss from equity method investments

 

 

33

 

 

 

502

 

 

 

500

 

 

 

357

 

Loss (gain) from change in fair value of derivative instruments

 

 

(582

)

 

 

1,022

 

 

 

5,992

 

 

 

(4,205

)

Adjusted EBITDA

 

$

8,932

 

 

$

9,244

 

 

$

20,123

 

 

$

20,461

 

Definition of “Gallons Delivered”

The Company defines “gallons delivered” as its gallons sold as compressed natural gas (“CNG”) and liquefied natural gas (“LNG”), along with its gallons associated with providing operations and maintenance services, in each case delivered to its customers in the applicable period, plus the Company’s proportionate share of gallons delivered by joint ventures in the applicable period. RNG sold as vehicle fuel, is sold under the brand name Redeem™ and is included in the CNG or LNG amounts as applicable based on the form in which it was sold.

The table below shows gallons delivered for the three and six months ended June 30, 2019 and 2020:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

June 30,

Gallons Delivered (in millions)

 

2019

 

2020

 

2019

 

2020

CNG

 

 

83.8

 

 

73.6

 

 

162.3

 

 

157.7

LNG

 

 

15.8

 

 

15.9

 

 

32.5

 

 

31.1

Total

 

 

99.6

 

 

89.5

 

 

194.8

 

 

188.8

Sources of Revenue

The following table shows the Company's sources of revenue for the three and six months ended June 30, 2019 and 2020:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

June 30,

Revenue (in millions)

 

2019

 

2020

 

2019

 

2020

Volume-related (1)

 

$

66.3

 

$

50.2

 

$

140.8

 

$

125.3

Station construction sales

 

 

5.9

 

 

5.3

 

 

9.1

 

 

10.8

AFTC (2)

 

 

 

 

4.4

 

 

 

 

9.8

Other

 

 

0.1

 

 

 

 

0.1

 

 

Total revenue

 

$

72.3

 

$

59.9

 

$

150.0

 

$

145.9

________________________

(1)

For the three and six months ended June 30, 2020, volume-related revenue includes an unrealized gain (loss) from the change in fair value of commodity swap and customer fueling contracts of $(1.5) million and $4.2 million, respectively. For the three and six months ended June 30, 2019, volume-related revenue includes an unrealized gain (loss) from the change in fair value of commodity swap and customer contracts of $0.6 million and $(4.4) million, respectively.
 

(2)

In 2019, we recognized AFTC revenue for the vehicle fuel we sold in 2018 and 2019 in the three months ended December 31, 2019.

2020 Outlook

We revised our 2020 outlook on May 7, 2020 (the “revised 2020 outlook”) due to the evolving uncertainties surrounding the impact of the COVID-19 pandemic on the economy, and to our company, as well as the volatility in oil markets. During the second quarter of 2020, we saw an overall decline in volumes of 10% compared to the same period in 2019, principally around airports and transit authorities with year-over-year declines ranging from 25% to 45%, with refuse and over-the-road trucking growing between 2% and 7%. Our revised 2020 outlook assumed the overall declining volumes would extend through June 30, 2020 with a gradual recovery going into the third quarter of 2020 toward flat to low single digit percentage overall volume increases on a year-over-year basis. While we believe the overall volume decline curve hit bottom during the second quarter and has flattened out exiting the second quarter, the effects of the COVID-19 pandemic have been prolonged further than our revised 2020 outlook contemplated. We now assume such prolonged impact of COVID-19 will delay and flatten the curve of the gradual recovery we contemplated in our revised 2020 outlook. This will also delay and flatten the recovery of AFTC eligible volumes, AFTC revenue and volume related gross profit margins on those sectors experiencing the effects of the prolonged economic slowdown. However, we have also experienced lower operating expenses than what was contemplated in our revised 2020 outlook due to lower spending as a result of reduced business activities. We expect this trend of lower spending to continue, which will help mitigate the prolonged reduction in gross profit margins associated with prolonged year-over-year declines in our overall volume. We also recorded a $2.5 million station asset disposal gain during the second quarter, which helped mitigate the negative impact of COVID-19 on our 2020 financial results. We believe the lower gross profit margins from lower volumes can be sufficiently mitigated by our continued lower operating expenses and the station asset disposal gain, such that we are not changing our revised 2020 outlook for our GAAP net loss or Adjusted EBITDA at this time. As such, our GAAP net income (loss) for 2020 is still expected to be approximately a loss of $11.0 million, assuming no unrealized gains or losses on commodity swap and customer fueling contracts. Changes in diesel and natural gas market conditions resulting in unrealized gains or losses on the Company’s commodity swap contracts could significantly impact the Company’s estimated GAAP net income for 2020. Adjusted EBITDA for 2020 is still expected to be approximately $45.0 million. These expectations also exclude the impact of any acquisitions, divestitures, transactions or other extraordinary events including a deterioration in or lack of any recovery from the COVID-19 pandemic. Additionally, the expectations regarding 2020 Adjusted EBITDA assume the calculation of this non-GAAP financial measure in the same manner as described above and without adjustments for any other items that may arise during 2020 and that management deems appropriate to exclude. These expectations are forward-looking statements and are qualified by the statement under “Safe Harbor Statement” below.

 

 

 

 

(in thousands)

 

2020 Outlook

GAAP Net income (loss) attributable to Clean Energy Fuels Corp.

 

$

(11,000

)

Income tax expense (benefit)

 

 

 

Interest expense

 

 

5,500

 

Interest income

 

 

(2,000

)

Depreciation and amortization

 

 

48,500

 

Stock-based compensation

 

 

4,000

 

Loss (income) from equity method investments

 

 

 

Loss (gain) from change in fair value of derivative instruments

 

 

 

Adjusted EBITDA

 

$

45,000

 

Today’s Conference Call

The Company will host an investor conference call today at 4:30 p.m. Eastern time (1:30 p.m. Pacific). Investors interested in participating in the live call can dial 1.877.407.4018 from the U.S. and international callers can dial 1.201.689.8471. A telephone replay will be available approximately two hours after the call concludes through Sunday, September 6, 2020, by dialing 1.844.512.2921 from the U.S., or 1.412.317.6671 from international locations, and entering Replay Pin Number 13706388. There also will be a simultaneous, live webcast available on the Investor Relations section of the Company’s web site at www.cleanenergyfuels.com, which will be available for replay for 30 days.

About Clean Energy Fuels Corp.

Clean Energy Fuels Corp. is North America’s leading provider of the cleanest fuel for the transportation market. Through its sales of Redeem™ renewable natural gas (RNG), which is derived from biogenic methane produced by the breakdown of organic waste, Clean Energy helps thousands of vehicles, from airport shuttles to city buses to waste and heavy-duty trucks, to reduce their amount of climate-harming greenhouse gas by at least 70% and up to 300% depending on the RNG feedstock. Clean Energy can deliver Redeem through compressed natural gas (CNG) and liquefied natural gas (LNG) to its network of approximately 550 fueling stations across the U.S. and Canada. Clean Energy builds and operates CNG and LNG fueling stations for the transportation market, owns natural gas liquefaction facilities in California and Texas, and transports bulk CNG and LNG to non-transportation customers around the U.S. For more information, visit www.CleanEnergyFuels.com.

Safe Harbor Statement

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, including statements about, among other things, the Company’s outlook for fiscal 2020, the expected impact of the COVID-19 pandemic on the Company’s business, including volumes delivered, and liquidity, and the effect, if any, of the foregoing on the Company’s performance, financial condition and ability to execute its strategic initiatives.

Forward-looking statements are statements other than historical facts and relate to future events or circumstances or the Company’s future performance, and they are based on the Company’s current assumptions, expectations and beliefs concerning future developments and their potential effect on the Company and its business. As a result, actual results, performance or achievements and the timing of events could differ materially from those anticipated in or implied by these forward-looking statements as a result of many factors including, among others: the COVID-19 pandemic and the measures taken to prevent its spread and the related impact on our operations, liquidity and financial condition; the Company’s history of net losses and the possibility the Company incurs additional net losses in the future; the willingness of fleets and other consumers to adopt natural gas as a vehicle fuel, and the rate and level of any such adoption; future supply, demand, use and prices of crude oil, gasoline, diesel, natural gas, and other vehicle fuels, including overall levels of and volatility in these factors; natural gas vehicle and engine cost, fuel usage, availability, quality, safety, convenience, design, performance and residual value, as well as operator perception with respect to these factors, in general and in the Company’s key customer markets, including heavy-duty trucking; the Company’s ability to execute its Zero Now truck financing program, a key strategic initiative related to the market for natural gas heavy-duty trucks, and the effect of this initiative on the Company’s business, prospects, performance and liquidity; the Company’s ability to capture a substantial share of the market for alternative vehicle fuels and vehicle fuels generally and otherwise compete successfully in these markets, including in the event of improvements in or perceived advantages of non-natural gas vehicle fuels or engines powered by these fuels or other competitive developments; the availability of environmental, tax and other government regulations, programs and incentives that promote natural gas, such as AFTC, or other alternatives as a vehicle fuel, including long-standing support for gasoline- and diesel-powered vehicles and growing support for electric and hydrogen-powered vehicles that could result in programs or incentives that favor these or other vehicles or vehicle fuels over natural gas; future availability of capital, which may include equity or debt financing, in the amounts and at the times needed to fund any growth in the Company’s business and the repayment of its debt obligations (whether at or before their due dates) or other expenditures, as well as the terms and other effects of any such capital-raising transaction; the effect of, or potential for changes to greenhouse gas emissions requirements or other environmental regulations applicable to vehicles powered by gasoline, diesel, natural gas or other vehicle fuels and crude oil and natural gas fueling, drilling, production, transportation or use; the Company’s ability to manage and grow its RNG business, including its ability to continue to receive revenue from sales of tradable credits the Company generates by selling conventional and renewable natural gas as vehicle fuel and the effect of any increase in competition for RNG supply; the Company’s ability to manage and grow its business of transporting and selling CNG for non-vehicle purposes via virtual natural gas pipelines and interconnects; the Company’s ability to accurately predict natural gas vehicle fuel demand in the geographic and customer markets in which it operates and effectively calibrate its strategies, timing and levels of investments to be consistent with this demand; the Company’s ability to recognize the anticipated benefits of its CNG and LNG fueling station network; construction, permitting and other factors that could cause delays or other problems at station construction projects; the Company’s ability to manage the safety and environmental risks inherent in its operations; the Company’s compliance with all applicable government regulations; the Company’s ability to execute and realize the intended benefits of any acquisitions, divestitures, investments or other strategic relationships or transactions; and general political, regulatory, economic and market conditions.


Contacts

Investor Contact:
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News Media Contact:
Raleigh Gerber
Manager of Corporate Communications
949.437.1397


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