HOUSTON--(BUSINESS WIRE)--Black Stone Minerals, L.P. (NYSE: BSM) ("Black Stone Minerals," "Black Stone," or "the Company") today announces its financial and operating results for the third quarter of 2021.

Financial and Operational Highlights

• Mineral and royalty production for the third quarter of 2021 equaled 33.0 MBoe/d, an increase of 2% over the prior quarter; total production, including working interest volumes, was 38.0 MBoe/d for the quarter.
• Net income and Adjusted EBITDA for the quarter totaled $16.2 million and $76.5 million, respectively.
• Distributable cash flow was $70.2 million for the third quarter, a decrease of 3% relative to the second quarter of 2021.
• Announced a distribution of $0.25 per unit with respect to the third quarter of 2021. Distribution coverage for all units was 1.35x.
• Total debt at the end of the third quarter was $99.0 million; total debt to trailing twelve-month Adjusted EBITDA was 0.3x at quarter-end. As of October 29, 2021, total debt had been reduced to $86.0 million.

Management Commentary

Thomas L. Carter, Jr., Black Stone Minerals’ Chief Executive Officer and Chairman commented, “Black Stone continues to benefit from the strong recovery in commodity prices and from incremental producer activity across the acreage position. We are seeing positive early results from operators in the East Texas Haynesville/Bossier and Austin Chalk, and we continue to focus on attracting capital to other high-net acreage in our portfolio. We posted another solid quarter with production levels well above our revised guidance, which contributed to our ability to raise our distribution for the third quarter by 25% over our previous expectations. With our very strong balance sheet position, we intend to continue to prioritize returning cash flow to our unitholders."

Quarterly Financial and Operating Results

Production

Black Stone Minerals reported mineral and royalty volume of 33.0 MBoe/d (72% natural gas) for the third quarter of 2021, compared to 32.5 MBoe/d for the second quarter of 2021. Mineral and royalty production for the third quarter of 2020 was 31.1 MBoe/d.

Working interest production for the third quarter of 2021 was 5.1 MBoe/d, representing a decrease of 11% from the levels generated in the quarter ended June 30, 2021 and a decrease of 26% from the quarter ended September 30, 2020. The continued decline in working interest volumes is consistent with the Company's decision to farm out its working-interest participation to third-party capital providers.

Total reported production averaged 38.0 MBoe/d (87% mineral and royalty, 74% natural gas) for the third quarter of 2021. Total production was 38.2 MBoe/d and 37.9 MBoe/d for the quarters ended June 30, 2021 and September 30, 2020, respectively.

Realized Prices, Revenues, and Net Income

The Company’s average realized price per Boe, excluding the effect of derivative settlements, was $38.60 for the quarter ended September 30, 2021. This is an increase of 21% from $31.79 per Boe from the second quarter of 2021 and a 112% increase compared to $18.18 for the third quarter of 2020.

Black Stone reported oil and gas revenue of $135.1 million (46% oil and condensate) for the third quarter of 2021, an increase of 22% from $110.4 million in the second quarter of 2021. Oil and gas revenue in the third quarter of 2020 was $63.4 million.

The Company reported a loss on commodity derivative instruments of $77.6 million for the third quarter of 2021, composed of a $34.1 million loss from realized settlements and a non-cash $43.5 million unrealized loss due to the change in value of Black Stone’s derivative positions during the quarter. Black Stone reported losses of $59.5 million and $21.1 million on commodity derivative instruments for the quarters ended June 30, 2021 and September 30, 2020, respectively.

Lease bonus and other income was $2.3 million for the third quarter of 2021, primarily related to leasing activity in the Haynesville Shale play and proceeds from surface use waivers on Black Stone's mineral acreage supporting solar development. Lease bonus and other income for the quarters ended June 30, 2021 and September 30, 2020 was $7.5 million and $1.4 million, respectively.

There was no impairment for the quarters ended September 30, 2021, June 30, 2021, and September 30, 2020.

The Company reported net income of $16.2 million for the quarter ended September 30, 2021, compared to net income of $15.4 million in the preceding quarter. For the quarter ended September 30, 2020, the Company reported net income of $23.7 million.

Adjusted EBITDA and Distributable Cash Flow

Adjusted EBITDA for the third quarter of 2021 was $76.5 million, which compares to $78.4 million in the second quarter of 2021 and $65.5 million in the third quarter of 2020. Distributable cash flow for the quarter ended September 30, 2021 was $70.2 million. For the quarters ended June 30, 2021 and September 30, 2020, distributable cash flow was $72.1 million and $58.8 million, respectively.

Financial Position and Activities

As of September 30, 2021, Black Stone Minerals had $3.3 million in cash and $99.0 million outstanding under its credit facility. At September 30, 2021, the ratio of total debt to trailing twelve-month Adjusted EBITDA was 0.3x. As of October 29, 2021, $86.0 million was outstanding under the credit facility and the Company had $8.6 million in cash.

Subsequent to quarter-end, Black Stone's borrowing base was reaffirmed at $400 million. Black Stone is in compliance with all financial covenants associated with its credit facility.

During the third quarter of 2021, the Company made no repurchases of units under the Board-approved $75 million unit repurchase program.

Third Quarter 2021 Distributions

As previously announced, the Board approved a cash distribution of $0.25 for each common unit attributable to the third quarter of 2021. The quarterly distribution coverage ratio attributable to the third quarter of 2021 was approximately 1.35x. The distribution attributable to the third quarter was equal to the distribution paid with respect to the second quarter of 2021, and was 67% higher than the distribution attributable to the third quarter of 2020. Distributions will be payable on November 19, 2021 to unitholders of record as of the close of business on November 12, 2021.

Activity Update

Rig Activity

As of September 30, 2021, Black Stone had 59 rigs operating across its acreage position, a slight decrease relative to the 64 rigs on the Company's acreage as of June 30, 2021 and an increase compared to the 29 rigs operating on the Company's acreage as of September 30, 2020.

Shelby Trough Development Update

Aethon has successfully turned to sales the initial two program wells and has commenced operations on four additional wells under the development agreement covering Angelina County. In October 2021, Aethon spud the first three wells under the separate development agreement covering San Augustine County.

Austin Chalk Update

Black Stone has entered into agreements with multiple operators to drill wells in the areas of the Austin Chalk in East Texas where the Company has significant acreage positions. Recent drilling results have shown that advances in fracturing and other completion techniques can dramatically improve well performance in existing Austin Chalk fields. One well has been drilled and turned to sales and five additional wells are currently being drilled under these agreements.

Update to 2021 Guidance

The Company now expects total production for 2021 to be at or near the high end of its previously revised guidance range of 34.5 to 37.0 MBoe/d. The Company expects lease operating expenses and production costs as a percentage of oil and gas revenues to be at the low end of the revised guidance ranges of $10-$12 million and 10%-12%, respectively. Black Stone expects cash and non-cash G&A to be slightly above the revised guidance ranges of $33-$34 million and $10-$12 million, respectively, due primarily to the outperformance of 2021 financial and operating results to date relative to targets.

Update to Hedge Position

Black Stone has commodity derivative contracts in place covering portions of its anticipated production for 2021, 2022, and 2023. The Company's hedge position as of October 29, 2021 is summarized in the following tables:

More detailed information about the Company's existing hedging program can be found in the Quarterly Report on Form 10-Q for the third quarter of 2021, which is expected to be filed on or around November 2, 2021.

Conference Call

Black Stone Minerals will host a conference call and webcast for investors and analysts to discuss its results for the third quarter of 2021 on Tuesday, November 2, 2021 at 9:00 a.m. Central Time. Black Stone recommends participants who do not anticipate asking questions to listen to the call via the live broadcast available at http://investor.blackstoneminerals.com. Analysts and investors who wish to ask questions should dial (877) 447-4732 and use conference code 4659348. A recording of the conference call will be available on Black Stone's website through December 2, 2021.

About Black Stone Minerals, L.P.

Black Stone Minerals is one of the largest owners of oil and natural gas mineral interests in the United States. The Company owns mineral interests and royalty interests in 41 states in the continental United States. Black Stone believes its large, diversified asset base and long-lived, non-cost-bearing mineral and royalty interests provide for stable to growing production and reserves over time, allowing the majority of generated cash flow to be distributed to unitholders.

Forward-Looking Statements

This news release includes forward-looking statements. All statements, other than statements of historical facts, included in this news release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Terminology such as “will,” “may,” “should,” “expect,” “anticipate,” “plan,” “project,” “intend,” “estimate,” “believe,” “target,” “continue,” “potential,” the negative of such terms, or other comparable terminology often identify forward-looking statements. Except as required by law, Black Stone Minerals undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this news release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release. All forward-looking statements are qualified in their entirety by these cautionary statements. These forward-looking statements involve risks and uncertainties, many of which are beyond the control of Black Stone Minerals, which may cause the Company’s actual results to differ materially from those implied or expressed by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, those summarized below:

• the Company’s ability to execute its business strategies;
• the scope and duration of the COVID-19 pandemic and actions taken by governmental authorities and other parties in response to the pandemic;
• the volatility of realized oil and natural gas prices;
• the level of production on the Company’s properties;
• overall supply and demand for oil and natural gas, as well as regional supply and demand factors, delays, or interruptions of production;
• conservation measures, technological advances, and general concern about the environmental impact of the production and use of fossil fuels;
• the Company’s ability to replace its oil and natural gas reserves;
• the Company’s ability to identify, complete, and integrate acquisitions;
• general economic, business, or industry conditions;
• cybersecurity incidents, including data security breaches or computer viruses;
• competition in the oil and natural gas industry; and
• the level of drilling activity by the Company's operators, particularly in areas such as the Shelby Trough where the Company has concentrated acreage positions.

The following table shows the Company’s production, revenues, pricing, and expenses for the periods presented:

Non-GAAP Financial Measures

Adjusted EBITDA and Distributable cash flow are supplemental non-GAAP financial measures used by Black Stone's management and external users of the Company's financial statements such as investors, research analysts, and others, to assess the financial performance of its assets and our ability to sustain distributions over the long term without regard to financing methods, capital structure, or historical cost basis.

The Company defines Adjusted EBITDA as net income (loss) before interest expense, income taxes, and depreciation, depletion, and amortization adjusted for impairment of oil and natural gas properties, accretion of asset retirement obligations, unrealized gains and losses on commodity derivative instruments, non-cash equity-based compensation, and gains and losses on sales of assets. Black Stone defines Distributable cash flow as Adjusted EBITDA plus or minus amounts for certain non-cash operating activities, cash interest expense, and restructuring charges.

Adjusted EBITDA and Distributable cash flow should not be considered an alternative to, or more meaningful than, net income (loss), income (loss) from operations, cash flows from operating activities, or any other measure of financial performance presented in accordance with generally accepted accounting principles ("GAAP") in the United States as measures of the Company's financial performance.

Adjusted EBITDA and Distributable cash flow have important limitations as analytical tools because they exclude some but not all items that affect net income (loss), the most directly comparable U.S. GAAP financial measure. The Company's computation of Adjusted EBITDA and Distributable cash flow may differ from computations of similarly titled measures of other companies.

Black Stone Minerals, L.P. Contacts
Jeff Wood
President and Chief Financial Officer

Evan Kiefer
Vice President, Finance and Investor Relations
Telephone: (713) 445-3200
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The Company leases an additional manufacturing plant in Durant, Oklahoma to add supplementary manufacturing lines to meet demand

NEW YORK--(BUSINESS WIRE)--SG Blocks, Inc. (NASDAQ: SGBX) (“SG Blocks” or the “Company”), a leading designer, innovator and fabricator of modular structures, announced today that SG ECHO has entered into a lease agreement for an additional manufacturing facility in Durant, Oklahoma to add two new production lines, which in turn is expected to triple the Company’s manufacturing capacity.

The Company had previously announced plans to purchase the property but made the decision to pivot to a lease arrangement in order to deploy capital to other area of the business.

SG ECHO plans to hire locally within the Durant area, with a goal of welcoming 75 additional employees to the Waldron facility over a span of two years. “We continue to have a great experience with the local workforce and we’re happy to do our part to add jobs to the community,” Paul Galvin concluded.

The property sits on approximately sixteen acres of land with a 55,000 SF manufacturing facility comprised of two full production lines. The Company intends to utilize this production space during Q2 of 2022 and will manufacture projects for SGB Development Corp. as well as certain commercial projects.

“Having three production lines will allow us much greater flexibility in scheduling projects, and should reduce overhead and create greater effiencies in every aspect of our process. We are looking forward to growing our footprint in Durant with encouragement from both local and state government authorities.” William Rogers, COO of SG Blocks explained.

The Company will provide additional updates as and when available.

About SG Blocks, Inc.

SG Blocks, Inc. is a premier innovator in advancing and promoting the use of code-engineered cargo shipping containers for safe and sustainable construction. The firm offers a product that exceeds many standard building code requirements, and also supports developers, architects, builders and owners in achieving greener construction, faster execution, and stronger buildings of higher value. Each project starts with GreenSteel™, the structural core and shell of an SG Blocks building, and then customized to client specifications. For more information, visit www.sgblocks.com.

Safe Harbor Statement

Certain statements in this press release constitute "forward-looking statements" within the meaning of the federal securities laws. Words such as "may," "might," "will," "should," "believe," "expect," "anticipate," "estimate," "continue," "predict," "forecast," "project," "plan," "intend" or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. These forward-looking statements are based upon current estimates and assumptions and include statements regarding adding two new production lines in Durant, Oklahoma, tripling the Company’s manufacturing capacity, utilizing the production space during Q2 of 2022, manufacturing projects for SGB Development Corp. as well as certain commercial projects, hiring locally within the Durant area, welcoming 75 additional employees to the Waldron facility over a span of two years and reducing overhead and creating greater efficiencies in every aspect of the Company’s process. While SG Blocks believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward-looking statements are subject to various risks and uncertainties, many of which are difficult to predict that could cause actual results to differ materially from current expectations and assumptions from those set forth or implied by any forward-looking statements. Important factors that could cause actual results to differ materially from current expectations include, among others, the Company’s ability to commence manufacturing at the new facility in Durant, Oklahoma as planned, the Company’s ability to reduce overhead and create greater efficiencies with two new production lines, the Company’s ability to position itself for future profitability, the Company’s ability to maintain compliance with the NASDAQ listing requirements, and the other factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 and its subsequent filings with the SEC, including subsequent periodic reports on Forms 10-Q and 8-K. The information in this release is provided only as of the date of this release, and we undertake no obligation to update any forward-looking statements contained in this release on account of new information, future events, or otherwise, except as required by law.

Investors:
Stephen Swett
(203) 682-8377
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OVERLAND PARK, Kan.--(BUSINESS WIRE)--TortoiseEcofin today announced the following unaudited balance sheet information and asset coverage ratio updates for TYG, NTG, TTP, NDP, TPZ and TEAF.

Tortoise Energy Infrastructure Corp. (NYSE: TYG) today announced that as of October 31, 2021, the company’s unaudited total assets were approximately $593.9 million and its unaudited net asset value was $445.7 million, or $37.37 per share.

As of October 31, 2021, the company’s asset coverage ratio under the 1940 Act with respect to senior securities representing indebtedness was 531 percent, and its coverage ratio for preferred shares was 411 percent. For more information on the company’s coverage ratios, please refer to the leverage summary web page at https://cef.tortoiseecofin.com.

Set forth below is a summary of the company’s unaudited balance sheet at October 31, 2021.

Unaudited balance sheet

11.93 million common shares currently outstanding.

Tortoise Midstream Energy Fund, Inc. (NYSE: NTG) today announced that as of October 31, 2021, the company’s unaudited total assets were approximately $294.0 million and its unaudited net asset value was $229.0 million, or $40.59 per share.

As of October 31 2021, the company’s asset coverage ratio under the 1940 Act with respect to senior securities representing indebtedness was 568 percent, and its coverage ratio for preferred shares was 459 percent. For more information on the company’s coverage ratios, please refer to the leverage summary web page at https://cef.tortoiseecofin.com.

Set forth below is a summary of the company’s unaudited balance sheet at October 31, 2021.

Unaudited balance sheet

5.64 million common shares currently outstanding.

Tortoise Pipeline & Energy Fund, Inc. (NYSE: TTP) today announced that as of October 31, 2021, the company’s unaudited total assets were approximately $90.2 million and its unaudited net asset value was $69.2 million, or $31.05 per share.

As of October 31, 2021, the company’s asset coverage ratio under the 1940 Act with respect to senior securities representing indebtedness was 621 percent, and its coverage ratio for preferred shares was 437 percent. For more information on the company’s coverage ratios, please refer to the leverage summary web page at https://cef.tortoiseecofin.com.

Set forth below is a summary of the company’s unaudited balance sheet at October 31, 2021.

Unaudited balance sheet

2.23 million common shares currently outstanding.

TTP has completed its share repurchases under the publicly announced repurchase plan allowing up to $5.0 million through August 31, 2021 which was extended through November 30, 2021. Under the program, TTP has repurchased 276,331 shares of its common stock at an average price of $18.078 and an average discount to NAV of 20.7%.

Tortoise Energy Independence Fund, Inc. (NYSE: NDP) today announced that as of October 31, 2021, the company’s unaudited total assets were approximately $52.5 million and its unaudited net asset value was $49.2 million, or $26.67 per share.

As of October 31, 2021, the company’s asset coverage ratio under the 1940 Act with respect to senior securities representing indebtedness was 1,688 percent. For more information on the company’s coverage ratios, please refer to the leverage summary web page at https://cef.tortoiseecofin.com.

Set forth below is a summary of the company’s unaudited balance sheet at October 31, 2021.

Unaudited balance sheet

1.85 million common shares currently outstanding.

Tortoise Power and Energy Infrastructure Fund, Inc. (NYSE: TPZ) today announced that as of October 31, 2021, the company’s unaudited total assets were approximately $128.7 million and its unaudited net asset value was $103.9 million, or $15.93 per share.

As of October 31, 2021, the company’s asset coverage ratio under the 1940 Act with respect to senior securities representing indebtedness was 533 percent. For more information on the company’s coverage ratios, please refer to the leverage summary web page at https://cef.tortoiseecofin.com.

Set forth below is a summary of the company’s unaudited balance sheet at October 31, 2021.

Unaudited balance sheet

6.53 million common shares currently outstanding.

Ecofin Sustainable and Social Impact Term Fund (NYSE: TEAF) today announced that as of October 31, 2021, the company’s unaudited total assets were approximately $269.7 million and its unaudited net asset value was $238.1 million, or $17.65 per share.

As of October 31, 2021, the company’s asset coverage ratio under the 1940 Act with respect to senior securities representing indebtedness was 878 percent. For more information on the company’s coverage ratios, please refer to the leverage summary web page at https://cef.tortoiseecofin.com.

Set forth below is a summary of the company’s unaudited balance sheet at October 31, 2021.

Unaudited balance sheet

13.49 million common shares outstanding.

The top 10 holdings for TYG, NTG, TTP, NDP, TPZ and TEAF as of the most recent month-end can be found on each fund’s portfolio web page at https://cef.tortoiseecofin.com.

About TortoiseEcofin

TortoiseEcofin focuses on essential assets – those assets and services that are indispensable to the economy and society. We strive to make a positive impact on clients and communities by investing in energy infrastructure and the transition to cleaner energy and by providing capital for social impact projects focused on education and senior living. TortoiseEcofin brings together strong legacies from Tortoise, with expertise investing across the energy value chain for more than 20 years, and from Ecofin, which unites ecology and finance and has roots back to the early 1990s. For additional information, please visit www.TortoiseEcofin.com.

Tortoise Capital Advisors, L.L.C. (also dba TCA Advisors) (“TCA”) is the Adviser to Tortoise Energy Infrastructure Corp., Tortoise Midstream Energy Fund, Inc., Tortoise Pipeline & Energy Fund, Inc., Tortoise Energy Independence Fund, Inc., Tortoise Power and Energy Infrastructure Fund, Inc. and Ecofin Sustainable and Social Impact Term Fund. Ecofin Advisors Limited is a sub-adviser to Ecofin Sustainable and Social Impact Term Fund.

For additional information on these funds, please visit cef.tortoiseecofin.com.

Safe harbor statement

This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains certain statements that may include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, included herein are "forward-looking statements." Although the funds and TCA believe that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the fund’s reports that are filed with the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required by law, the funds and TCA do not assume a duty to update this forward-looking statement.

Maggie Zastrow
(913) 981-1020
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~Acquires Texas MasterCraft~

~Enters Largest Towboat Market in the United States~

~Acquisition Expected to be Accretive in First Full Year~

CLEARWATER, Fla.--(BUSINESS WIRE)--MarineMax, Inc. (NYSE: HZO), the world’s largest recreational boat and yacht retailer, today announced it has acquired the assets of Texas MasterCraft. Texas MasterCraft is a full-service Dallas, Texas area towboat dealer that operates primarily from two locations. The Dallas-area market is the largest towboat market in the United States. Texas MasterCraft generated revenue of over $45 million in 2020. The acquisition is expected to be accretive in its first full twelve months after the closing.

Texas MasterCraft is recognized annually as the largest MasterCraft dealer in the world. Jimmy Harvell launched Texas MasterCraft in 2001, after several years teaching as a waterski pro and working with various other Dallas area dealerships. The dealership benefits from a private lake it owns, which is used for various promotional events and customer demonstration purposes. Mr. Harvell and his team will continue to operate both locations with additional support and resources provided by MarineMax.

W. Brett McGill, Chief Executive Officer and President of MarineMax stated, "We have great appreciation and respect for Jimmy Harvell and his team and admire how effectively they operate their business. Our cultures and passion for customer service, as well as the boating lifestyle, are perfectly aligned. This strategic acquisition allows our existing Dallas area operation to join forces with those of the Texas MasterCraft team, creating the most powerful customer servicing dealership organization in the important north Texas towboat market. We welcome the Texas MasterCraft Team into the MarineMax family and are excited about our future growth.”

Jimmy Harvell, President of Texas MasterCraft stated, “Our Team has always strived to provide the best service and the best experiences for our customers. Joining forces with MarineMax, whom we have known for many years, provides us with extensive resources to better serve our customers and this important market. We are excited about this partnership and the growth opportunities that it creates.”

About MarineMax

MarineMax is the world’s largest recreational boat and yacht retailer, selling new and used recreational boats, yachts and related marine products and services, as well as providing yacht brokerage and charter services. MarineMax has over 100 locations worldwide, including 77 retail dealership locations, which includes 31 marinas or storage operations. Through Fraser Yachts and Northrop and Johnson, the Company also is the largest super-yacht services provider, operating locations across the globe. Cruisers Yachts, a MarineMax company, manufactures boats and yachts with sales through our select retail dealership locations and through independent dealers. MarineMax provides finance and insurance services through wholly owned subsidiaries and operates MarineMax Vacations in Tortola, British Virgin Islands. The Company also operates Boatyard, a pioneering digital platform that enhances the boating experience. MarineMax is a New York Stock Exchange-listed company (NYSE: HZO). For more information, please visit www.marinemax.com.

Forward Looking Statement

Certain statements in this press release are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include this acquisition being accretive; the operation of the Texas MasterCraft dealership and private lake; the combination of the Company's existing Dallas area operations and those of the Texas MasterCraft team; the future growth of Texas MasterCraft; and the benefits of this transaction to customers. These statements are based on current expectations, forecasts, risks, uncertainties and assumptions that may cause actual results to differ materially from expectations as of the date of this release. These risks, assumptions and uncertainties include the Company’s abilities to reduce inventory, manage expenses and accomplish its goals and strategies, the quality of the new product offerings from the Company’s manufacturing partners, the impacts (direct and indirect) of COVID-19 on the Company’s business, the Company’s employees, the Company’s manufacturing partners, and the overall economy, general economic conditions, as well as those within our industry, the level of consumer spending, the Company’s ability to integrate acquisitions into existing operations, and numerous other factors identified in the Company’s Form 10-K for the fiscal year ended September 30, 2020 and other filings with the Securities and Exchange Commission. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Michael H. McLamb
Chief Financial Officer
727-531-1700
Media:
Abbey Heimensen
MarineMax, Inc.
Investors:
Brad Cohen or Dawn Francfort
ICR, LLC
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REYKJAVIK, Iceland--(BUSINESS WIRE)--The Board of DTE ehf. (DTE) (www.dte.ai), a leader in metals intelligence, is pleased to announce the appointment of Margrét Ormslev Ásgeirsdóttir to DTE’s board of directors.

Margrét, currently a Partner at Brunnur Ventures, joined as a Director of the Board of DTE, effective from October 22, 2021. She replaces Árni Blöndal, Managing Partner at Brunnur Ventures. She is also Chairman for Taeknisetur, an Icelandic government owned non-profit company providing core infrastructure and technical support to high tech innovation companies.

For over six years Margrét has held various lead managerial roles at the Icelandic cleantech company Carbon Recycling International, building the company from R&D phase to international growth. She has previously worked in corporate finance and restructuring in the National Bank of Iceland and has held various board and council roles at universities, start-up initiatives and in industry.

Margrét holds degrees in Industrial Engineering and Economics from the University of Iceland, focusing specifically on sustainable energy and energy markets.

Richard MacKellar, Managing Partner at Chrysalix Ventures and Chairman of the Board of DTE, commented, “I’m very pleased to welcome Margrét to the Board. She brings a wealth of experience associated to cleantech, venture investment and successful startup initiatives. Considering her background, she will be major contributor for DTE to realize its purpose and to deliver in one of its major values which is enabling producers and end-user manufacturers to make greener metal products and meet the 1.5-degree challenge.”

About DTE

DTE, Unlocking the Future of Metals^™, is the leading innovator in real-time intelligence from liquid metals, serving customers across the metals production and manufacturing value chain through maximizing value, sustainability, safety, and efficiency for all stakeholders.

Our purpose is advancing human progress with greener, safer, more efficient, and more valuable metals, contributing to the 1.5-degree challenge while driving its digital transformation towards Industry 4.0 with the next generation of IIoT analysis technology. DTE provides tangible financial and environmental business outcomes from the plant floor to the business levels through valuable intelligence and predictive insights from liquid metals.

IREAS^™, DTE’s unique, connected, real-time intelligence from liquid metals solution seamlessly integrates IT and OT, combining chemical composition analysis from molten metals based on liquid-phase laser-induced breakdown spectroscopy (LP-LIBS^™) with an artificial intelligence-based analytics platform and digital metals intelligence services.

For more information, please visit www.dte.ai.

DTE ehf.
Diego Areces, CEO
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Tel: (+354) 698 0173

Joining only seven companies globally, leading independent group validates Ørsted’s 2040 net zero full value chain decarbonization plan

BOSTON--(BUSINESS WIRE)--Ørsted, the global leader in offshore wind energy, is the first energy company in the world to have its net zero commitment validated by the Science Based Targets initiative (SBTi). One of only seven companies globally, Ørsted’s 2040 decarbonization plan was endorsed as part the Science Based Targets initiative’s (SBTi) new net zero standard.

On October 28, 2021, SBTi announced a new science-based net zero corporate standard, including specific near-term and long-term emissions reduction requirements. In establishing this new international standard, SBTi provides a programmatic approach for companies to utilize in building and evaluating net zero plans. SBTi’s framework is the world’s first and only science-based assessment that aligns corporate net-zero targets with climate data.

“As an organization that transformed from a fossil fuel intensive oil and gas company to a 100 percent clean energy business, SBTi’s framework is rooted in our values and mission,” said David Hardy, CEO of Ørsted Offshore North America. “SBTi’s new standard adds an additional layer of science to our decarbonization plan and provides a roadmap for other companies to follow in achieving our shared vision. We’re pleased to be part of this initial group of seven and to be the world’s first energy company with a science-based net zero target.”

SBTi’s new net-zero standard provides a common, comprehensive and science-based definition for corporate net-zero goals. SBTi’s objectives align with slowing global temperature rise to 1.5 degrees Celsius above pre-industrial levels, which is the critical Paris climate agreement threshold to limit the more extreme global warming dangers. While there has been an increase in corporate net zero targets since the Paris agreement was implemented, no clear framework has existed for companies to help achieve the target. As a result, corporate reduction standards have varied and been applied inconsistently.

SBTi’s new framework offers a credible, science-based approach to achieving emissions reduction and corporate net zero plans aligned with slowing temperature rise. Specifically, SBTi’s highlights that rapid action is needed today to halve emissions before 2030 and that deep emissions cuts of 90 – 95 percent are essential before 2050.

Ørsted was one of the first energy companies to set a near-term science-based target for reducing emissions from power and heat generation and has the following global targets:

• Lowering GHG emissions to 10 g CO₂e/kWh by 2025, corresponding to a 98 percent reduction from a 2006 base year (scope 1 and 2).
• Reducing its absolute scope 3 GHG emissions by 50 percent by 2032, compared to a 2018 base year.
• Expanding net zero emissions to include its entire carbon footprint, committing to net-zero emissions across the company’s entire value chain by 2040.

By phasing out coal and accelerating the build out of green energy, Ørsted is fully on track to meet its scope 1 and 2 target. To meet its scope 3 target, Ørsted launched an industry-leading supply chain decarbonization program, closely engaging with suppliers to reduce emissions from the goods and services it sources.

About Ørsted Offshore North America

The Ørsted vision is a world that runs entirely on green energy. Ørsted ranks as the world’s most sustainable energy company in Corporate Knights’ 2021 Global 100 index of the most sustainable corporations and is recognized on the CDP Climate Change A List as a global leader on climate action.

In the United States, Ørsted operates the Block Island Wind Farm, America’s first offshore wind farm, and constructed the two-turbine Coastal Virginia Offshore Wind pilot project – the first turbines to be installed in federal waters. Ørsted has secured over 4,000 megawatts of additional capacity through six projects in the Northeast and Mid-Atlantic. Ørsted Offshore’s North American business is jointly headquartered in Boston, Massachusetts and Providence, Rhode Island and employs more than 150 people. To learn more visit us.orsted.com or follow us on Facebook, Instagram and Twitter (@OrstedUS).

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Outstanding Operational Performance – 99% Revenue Efficiency in the Third Quarter and Year to Date
Contracting Success – Approximately $330 Million of Contract Backlog Added Since Reporting Second Quarter Results and More Than $2.1 Billion Added Year to Date
VALARIS DS-9 Awarded Two-Year Contract and VALARIS DS-4 Awarded 548-Day Contract
Two Rigs Recently Equipped with Emissions Reductions Systems

HAMILTON, Bermuda--(BUSINESS WIRE)--Valaris Limited (NYSE: VAL) ("Valaris" or the "Company") today reported third quarter 2021 results.

Interim President and Chief Executive Officer Anton Dibowitz said, “Valaris' best in class team continues to deliver at a high level for our customers, as demonstrated by achieving 99% revenue efficiency during the third quarter and year to date. This performance, combined with a high quality fleet and deep customer relationships, has enabled us to continue translating our operational leverage into meaningful backlog additions. We have added approximately $330 million of backlog in the past three months and more than $2.1 billion year to date, including recent contract wins for VALARIS DS-4 offshore Brazil as well as DS-9 and DS-10 offshore West Africa, enhancing our presence in these important deepwater markets. Over the past several months, we have secured term backlog on four preservation stacked drillships, highlighting our customers' confidence in our operational capabilities.”

Dibowitz added, “As a part of the value chain that delivers affordable energy, we recognize the importance of delivering that energy responsibly. In our business, emissions from our drilling rigs currently represent the largest contributor of atmospheric CO₂ and are therefore the target of our near-term sustainability effort. While we are early on that journey, we have made great strides. For example, jackup VALARIS 123 is being upgraded with a selective catalytic reduction system that, when in operation, is designed to eliminate almost all NO_X and SO_X emissions from the rig, and drillship VALARIS DS-12 recently became the first vessel in the world to receive the ABS Enhanced Electrical System Notation EHS-E. This system is designed to optimize powerplant performance, enabling operations on fewer generators and thereby reducing emissions.”

Dibowitz concluded, “The market environment for offshore drilling has improved meaningfully in 2021, helped by a strong rebound in demand for hydrocarbons and constructive commodity prices. We have taken advantage of improving market conditions by winning an outsized share of contracts and rig years awarded, providing a platform for increased earnings in 2022 and beyond. Valaris is well-positioned to benefit from the opportunities we see in the market today, and we will continue to take a disciplined approach to capital allocation, with a focus on maximizing earnings and driving free cash flow as the market continues to recover.”

Fresh Start Accounting

Valaris emerged from Chapter 11 bankruptcy protection on April 30, 2021 (the "Effective Date"). Upon emergence, Valaris applied fresh start accounting which resulted in Valaris becoming a new reporting entity for accounting and financial reporting. Accordingly, our financial statements and notes after the Effective Date are not comparable to our financial statements and notes prior to that date. As required by GAAP, results for the second quarter must be presented separately for the predecessor period from April 1, 2021, through April 30, 2021 (the "Predecessor" period) and the successor period from May 1, 2021, through June 30, 2021 (the "Successor" period). However, the Company has combined certain results of the Predecessor and Successor periods ("Combined" results) as non-GAAP measures to compare the third quarter and combined second quarter since we believe it provides the most meaningful basis to analyze our results. The Predecessor and Successor results for the second quarter are more fully discussed in our quarterly report on Form 10-Q for the period ended June 30, 2021 filed with the SEC on August 3, 2021.

Third Quarter Highlights

Revenues increased to $327 million in the third quarter 2021 from $293 million in the Combined second quarter. Excluding reimbursable items, revenues increased to $293 million in the third quarter from $261 in the Combined second quarter primarily due to higher utilization for the floater fleet as VALARIS DS-12 started a new contract early in the third quarter, and VALARIS DS-15 and MS-1 had a full quarter of revenues after commencing contracts in the latter part of the second quarter.

Contract drilling expense increased to $274 million in the third quarter 2021 from $254 million in the Combined second quarter 2021. Excluding reimbursable items, contract drilling expense increased to $255 million in the third quarter from $236 million in the Combined second quarter primarily due to more operating days for the floater fleet. This was partially offset by rig reactivation costs, which declined to $19 million in the third quarter from $24 million in the Combined second quarter.

Depreciation expense declined to $24 million in the third quarter 2021 from $54 million in the Combined second quarter due to a full quarter impact of fresh start accounting adjustments, which significantly reduced the carrying value of property and equipment on the balance sheet. General and administrative expense increased to $27 million in the third quarter 2021 from $19 million in the Combined second quarter primarily due to severance costs related to the departure of three senior executives during the third quarter.

Tax expense was $53 million in the third quarter 2021 compared to a tax benefit of less than $1 million in the Combined second quarter 2021. The third quarter tax provision included $39 million of discrete tax expense primarily related to changes in liabilities for unrecognized tax benefits associated with tax positions taken in prior years. The Combined second quarter tax provision included $12 million of discrete tax benefit primarily related to fresh start accounting adjustments. Adjusted for discrete items, tax expense of $14 million in the third quarter compared to tax expense of $12 million in the Combined second quarter.

Adjusted EBITDA of $30 million in the third quarter 2021 compared to $17 million in the Combined second quarter. Adjusted EBITDAR of $50 million in the third quarter 2021 compared to $41 million in the Combined second quarter.

Segment Highlights

Floaters

Floater revenues increased to $104 million in the third quarter 2021 from $68 million in the Combined second quarter. Excluding reimbursable items, revenues increased to $94 million in the third quarter from $62 million in the Combined second quarter primarily due to higher utilization as VALARIS DS-12 started a new contract early in the third quarter, and VALARIS DS-15 and MS-1 had a full quarter of revenues after commencing contracts in the latter part of the second quarter.

Contract drilling expense increased to $91 million in the third quarter 2021 from $67 million in the Combined second quarter 2021. Excluding reimbursable items, contract drilling expense increased to $83 million in the third quarter from $63 million in the Combined second quarter primarily due to more operating days in the third quarter.

Jackups

Jackup revenues of $186 million in the third quarter 2021 were marginally lower than revenues of $188 million in the Combined second quarter. Excluding reimbursable items, revenues of $168 million in the third quarter were marginally higher than revenues of $167 million in the Combined second quarter.

Contract drilling expense declined to $141 million in the third quarter 2021 from $144 million in the Combined second quarter. Excluding reimbursable items, contract drilling expense of $134 million in the third quarter was consistent with the Combined second quarter.

ARO Drilling

Revenues declined to $118 million in the third quarter 2021 from $125 million in the Combined second quarter 2021 primarily due to out of service days for a special periodic survey for one of ARO's owned rigs and VALARIS 22 completing its lease contract with ARO during the third quarter. Contract drilling expense of $94 million in the third quarter was marginally higher than $93 million in the Combined second quarter. EBITDA was $18 million in the third quarter compared to $28 million in the Combined second quarter.

Other

Revenues of $36 million in the third quarter 2021 were marginally lower than $37 million in the Combined second quarter and contract drilling expense of $14 million in the third quarter was in line with the Combined second quarter. EBITDA was $22 million in the third quarter compared to $23 million in the Combined second quarter.

As previously announced, Valaris will hold its third quarter 2021 earnings conference call at 9:00 a.m. CDT (10:00 a.m. EDT and 2:00 p.m. London) on Tuesday, November 2, 2021. An updated investor presentation will be available on the Valaris website after the call.

About Valaris Limited

Valaris Limited (NYSE: VAL) is the industry leader in offshore drilling services across all water depths and geographies. Operating a high-quality rig fleet of ultra-deepwater drillships, versatile semisubmersibles, and modern shallow-water jackups, Valaris has experience operating in nearly every major offshore basin. Valaris maintains an unwavering commitment to safety, operational excellence, and customer satisfaction, with a focus on technology and innovation. Valaris Limited is a Bermuda exempted company. To learn more, visit the Valaris website at www.valaris.com.

Forward-Looking Statements

Statements contained in this press release that are not historical facts are 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. Forward-looking statements include words or phrases such as "anticipate," "believe," "estimate," "expect," "intend," "plan," "project," "could," "may," "might," "should," "will" and similar words and specifically include statements involving expected financial performance; expected utilization, rig commitments and availability, day rates, revenues, operating expenses including expenses related to reorganization items, cash flow, contract status, terms and duration, contract backlog, capital expenditures, insurance, financing and funding; the offshore drilling market, including supply and demand, customer drilling programs, stacking of rigs, effects of new rigs on the market and effects of declines in commodity prices; synergies and expected additional cost savings; effective tax rates; expected work commitments, letters of intent; scheduled delivery dates for rigs; performance of our joint venture with Saudi Aramco; the timing of delivery, mobilization, contract commencement, relocation or other movement of rigs; our intent to sell or scrap rigs; and general market, business and industry conditions, trends and outlook. The forward-looking statements contained in this press release are subject to numerous risks, uncertainties and assumptions that may cause actual results to vary materially from those indicated, including the effects of the chapter 11 cases on the Company's business, relationships, comparability of our financial results and ability to access financing sources, the COVID-19 outbreak and global pandemic, the related public health measures implemented by governments worldwide, which may, among other things, impact our ability to staff rigs and rotate crews; cancellation, suspension, renegotiation or termination of drilling contracts and programs, including drilling contracts which grant the customer termination rights if final investment decision (FID) is not received with respect to projects for which the drilling rig is contracted; potential additional asset impairments; our failure to satisfy our debt obligations; our ability to obtain financing, service our debt, fund negative cash flow and capital expenditures and pursue other business opportunities; adequacy of sources of liquidity for us and our customers; actions by regulatory authorities, rating agencies or other third parties; actions by our security holders; availability and terms of any financing; commodity price fluctuations, customer demand, new rig supply, downtime and other risks associated with offshore rig operations; severe weather or hurricanes; changes in worldwide rig supply and demand, competition and technology; future levels of offshore drilling activity; governmental action, civil unrest and political and economic uncertainties; terrorism, piracy and military action; risks inherent to shipyard rig construction, repair, maintenance or enhancement; our ability to enter into, and the terms of, future drilling contracts; the cancellation of letters of intent or letters of award or any failure to execute definitive contracts following announcements of letters of intent, letters of award or other expected work commitments; the outcome of litigation, legal proceedings, investigations or other claims or contract disputes; governmental regulatory, legislative and permitting requirements affecting drilling operations; our ability to attract and retain skilled personnel on commercially reasonable terms; environmental or other liabilities, risks or losses; debt restrictions that may limit our liquidity and flexibility; and cybersecurity risks and threats. In particular, the unprecedented nature of the current economic downturn, pandemic, and industry decline may make it particularly difficult to identify risks or predict the degree to which identified risks will impact the Company's business and financial condition. In addition to the numerous factors described above, you should also carefully read and consider "Item 1A. Risk Factors" in Part I and "Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations" in Part II of our most recent annual report on Form 10-K, as updated in our subsequent quarterly reports on Form 10-Q, which are available on the SEC’s website at www.sec.gov or on the Investor Relations section of our website at www.valaris.com. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to update or revise any forward-looking statements, except as required by law.