Business Wire News

Xos’ planned delivery of 120 electric vehicles to FedEx Corp Independent Service Providers (ISPs) in 2021 and 2022 to support further electrification of FedEx fleet

LOS ANGELES & BOCA RATON, Fla.--(BUSINESS WIRE)--Xos, Inc. (“Xos”), a leading manufacturer of fully electric Class 5 to Class 8 commercial vehicles that has announced a planned business combination with NextGen Acquisition Corporation (NASDAQ: NGAC, “NextGen”), today announced that Xos has signed agreements with FedEx Ground operators to deliver 120 zero emission electric trucks across 35 different FedEx Ground operators based in California, New York, New Jersey, Massachusetts, and Texas. Delivery of these vehicles is expected to occur in Q4 2021 and 2022. Discussions regarding additional vehicle deliveries in 2022 and 2023 to these customers, as well as additional FedEx Ground operators in these and other states, are ongoing.



“Working with FedEx Ground operators, who operate every day within FedEx’s global delivery and logistics network, both validates our business model and our innovative, cost-efficient, zero emission and operationally ready products, which are tailored for commercial fleets focusing on last-mile delivery,” said Dakota Semler, Xos’ Co-Founder and CEO. “We are pleased to support the electrification of FedEx’s medium duty pickup-and-delivery fleet across several U.S. states as FedEx continues to advance sustainability efforts and work toward achieving carbon emissions goals across its global business. We are thrilled with our current FedEx Ground relationships and look forward to expanding them further among the 4,000 FedEx Ground operators who support the FedEx network.”

“We are delighted to provide our FedEx Ground customers with our best-in-class electric trucks. We look forward to continuing to support them in meeting their site infrastructure and charging needs at vehicle depots in addition to offering Fleet-as-a-Service and financing alternatives to streamline their purchasing, maintenance, and operating experience,” said Gio Sordoni, Xos’ Co-Founder and COO.

Shareholder Meeting Set for August 18, 2021

NextGen recently announced that its extraordinary general meeting of shareholders to approve, among other things, the proposed business combination, will be held in a virtual format and physically at the offices of Skadden, Arps, Slate, Meagher & Flom LLP located at One Manhattan West, New York, NY 10001 on August 18, 2021 at 9:00 a.m. Eastern Time or virtually via live webcast at https://www.cstproxy.com/nextgenacq/sm2021. The Board of Directors of NextGen recommends that shareholders of record who owned NextGen’s shares as of July 2, 2021 – even if they have since sold their shares – vote by 11:59 p.m. Eastern Time on August 17, 2021 to ensure the deal proceeds in a timely manner. More information on how to vote can be found at https://www.nextgenacq.com/vote.html.

About Xos, Inc.

Xos, Inc. is an electric mobility company dedicated to making fleets more efficient. Xos designs and develops fully electric battery mobility systems specifically for commercial fleets. The company’s primary focus is on medium- and heavy-duty commercial vehicles that travel on “last mile” routes (i.e. predictable routes that are less than 200 miles per day). The company leverages its proprietary technologies to provide commercial fleets zero emission vehicles that are easier to maintain and more cost-efficient on a total cost of ownership (TCO) basis than their internal combustion engine and commercial EV counterparts. For more information, please visit www.xostrucks.com.

About NextGen

NextGen Acquisition Corporation is a blank check company whose business purpose is to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. NextGen is led by George Mattson, a former Partner at Goldman, Sachs & Co., and Gregory Summe, former Chairman and CEO of Perkin Elmer and Vice Chairman of the Carlyle Group. NextGen is listed on NASDAQ under the ticker symbol "NGAC." For more information, please visit www.nextgenacq.com.

IMPORTANT LEGAL INFORMATION

Additional Information and Where to Find It

This document relates to a proposed transaction between Xos and NextGen. This document is not a proxy statement or solicitation of a proxy, consent or authorization with respect to any securities or in respect of the potential transaction and shall not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. In connection with the proposed transaction, NextGen filed a registration statement on Form S-4 with the SEC on May 14, 2021, as amended on June 25, 2021, July 22, 2021, July 28, 2021 and July 29, 2021, which was declared effective by the SEC on July 30, 2021 and includes a document that serves as a prospectus and proxy statement of NextGen (the “proxy statement/prospectus”). A definitive proxy statement/prospectus has been mailed to all NextGen’s shareholders of record as of July 2, 2021, the record date established for the extraordinary general meeting of shareholders relating to the proposed transaction. NextGen also will file other documents regarding the proposed transaction with the SEC. Before making any voting decision, investors and security holders of NextGen are urged to read the registration statement, the proxy statement/prospectus included therein and all other relevant documents filed or that will be filed with the SEC in connection with the proposed transaction as they become available because they will contain important information about the proposed transaction. Investors and security holders may obtain free copies of the registration statement, the proxy statement/prospectus included therein and all other relevant documents filed or that will be filed with the SEC by NextGen through the website maintained by the SEC at www.sec.gov. The documents filed by NextGen with the SEC also may be obtained free of charge at NextGen’s website at https://www.nextgenacq.com/nextgen-i.html or upon written request to 2255 Glades Road, Suite 324A, Boca Raton, Florida 33431.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the federal securities laws with respect to the proposed transaction between Xos and NextGen, including statements regarding the anticipated timing of the transaction and the products, customers and markets of Xos. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: (i) the risk that the transaction may not be completed in a timely manner or at all, which may adversely affect the price of NextGen’s securities, (ii) the risk that the transaction may not be completed by NextGen’s business combination deadline and the potential failure to obtain an extension of the business combination deadline if sought by NextGen, (iii) the failure to satisfy the conditions to the consummation of the transaction, including the adoption of the Merger Agreement by the shareholders of NextGen, the availability of the minimum amount of cash available in the trust account in which substantially all of the proceeds of NextGen's initial public offering and private placements of its warrants have been deposited following redemptions by NextGen’s public shareholders and the receipt of certain governmental and regulatory approvals, (iv) the lack of a third party valuation in determining whether or not to pursue the proposed transaction, (v) the inability to complete the PIPE investment in connection with the transaction, (vi) the occurrence of any event, change or other circumstance that could give rise to the termination of the Merger Agreement, (vii) the effect of the announcement or pendency of the transaction on Xos’s business relationships, operating results, and business generally, (viii) risks that the proposed transaction disrupts current plans and operations of Xos and potential difficulties in Xos employee retention as a result of the transaction, (ix) the outcome of any legal proceedings that may be instituted against Xos or against NextGen related to the Merger Agreement or the proposed transaction, (x) the ability to maintain the listing of NextGen’s securities on a national securities exchange, (xi) the price of NextGen’s securities may be volatile due to a variety of factors, including changes in the seven competitive and regulated industries in which NextGen plans to operate or Xos operates, variations in operating performance across competitors, changes in laws and regulations affecting NextGen’s or Xos’ business, Xos’ inability to implement its business plan or meet or exceed its financial projections and changes in the combined capital structure, (xii) the ability to implement business plans, forecasts, and other expectations after the completion of the proposed transaction, and identify and realize additional opportunities, and (xiii) the risk of downturns and a changing regulatory landscape in the highly competitive electric vehicle industry. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of NextGen’s registration statement on Form S-1 (File No. 333-248921), the registration statement on Form S-4 discussed above, the definitive proxy statement/prospectus and other documents filed or that may be filed by NextGen from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward looking statements, and Xos and NextGen assume no obligation and do not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Neither Xos nor NextGen gives any assurance that either Xos or NextGen, or the combined company, will achieve its expectations.


Contacts

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NextGen
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DUBLIN--(BUSINESS WIRE)--The "Global Floating Rigs Market (Value, Volume): Analysis By Type (Drillship, Semisubmersible), Application, By Region, By Country (2021 Edition): Market Insights, Covid -19 Impact, Competition and Forecast (2021-2026)" report has been added to ResearchAndMarkets.com's offering.


The Global Floating Rigs Market was valued at USD 61940.35 Million in the year 2020.

The report presents the analysis of Floating Rigs market for the historical period of 2016-2020 and the forecast period of 2021-2026.

The global Floating Rigs market is witnessing lucrative growth owing to stringent regulatory standards regarding environment conservation, supportive government policies on energy conservation, as well as growing consumer awareness about product quality. The continuous rise in demand of oil and gas in Asia Pacific region is driving the demand of rigs from last few years.

Owing to low production cost in Asian countries backed with rising industrialisation, manufacturers are investing in economies such as India and China which is propelling the market growth.

The market is also expected to register a boom in demand post Covid-19 pandemic situation attributable to the demand for the oil and gas slightly increased in August 2020, as several leading manufacturers started production of the offshore drilling. Additionally, growth in the rig industry due to technological advancements, rise in population, and increase in demand of crude oil and natural gas are major factors expected to drive the Floating Rigs market during the forecast period.

Ultra-Deepwater is considered to be anything more than midwater (7000-12000 ft or 2134-3658 meters). Ultra-Deepwater Floaters are equipped with high-pressure mud pumps and are capable of drilling in water depths of 7,500 feet or greater.

Ultra-deepwater is expected to be the most rapid source of future demand growth for floating MDUs (Mobile Drilling Units). Ultra-deep fields are increasingly explored and developed and it is anticipated that a greater share of floaters will be deployed in deeper water, maximising their capabilities.

The report tracks competitive developments, strategies, mergers and acquisitions and new product development. The companies analysed in the report include Baker Hughes, Schlumberger Limited, Aban Offshore Limited, Diamond Offshore Drilling, Ensco Plc, Noble Corporation, Transocean, Halliburton, Maersk Drilling, Keppel Offshore & Marine.

Key Target Audience

  • Floating Rigs Vendors
  • Oil and Gas Companies
  • Consulting and Advisory Firms
  • Government and Policy Makers
  • Regulatory Authorities

Key Topics Covered:

1. Report Scope and Methodology

1.1 Scope of the Report

1.2 Research Methodology

1.3 Executive Summary

2. Strategic Recommendations

3. Floating Rigs Market: Product Overview

4. Floating Rigs Market: Sizing and Forecast

4.1 Market Size, By Value, Year 2016-2020

4.2 Market Size, By Value, Year 2021-2026

4.3 Market Size, By Volume, Year 2016-2020

4.4 Market Size, By Volume, Year 2021-2026

4.5 Impact of COVID-19 on Global Floating Rigs Market

4.6 Global Economic & Industrial Outlook

5. Floating Rigs Market Segmentation, By Type (Value)

5.1 Global Floating Rigs Market: Segment Analysis

5.2 Competitive Scenario of Global Floating Rigs Market: By Type (2020 & 2026)

5.3 By Drillship Market Size and Forecast (2016-2026)

5.4 By Semisubmersible- Market Size and Forecast (2016-2026)

6. Floating Rigs Market Segmentation, By Application (Value)

6.1 Global Floating Rigs Market: Segment Analysis

6.2 Competitive Scenario of Global Floating Rigs Market: By Application (2020 & 2026)

6.3 By Shallow Water - Market Size and Forecast (2016-2026)

6.4 By Deepwater - Market Size and Forecast (2016-2026)

6.5 By Ultra-Deepwater - Market Size and Forecast (2016-2026)

7. Global Floating Rigs Market: Regional Analysis

7.1 Competitive Scenario of Global Floating Rigs Market: By Region (2020 & 2026)

8. Americas Floating Rigs Market: An Analysis

9. Europe Floating Rigs Market: An Analysis

10. Asia Pacific Floating Rigs Market: An Analysis

11. Global Floating Rigs Market Dynamics

11.1 Global Floating Rigs Market Drivers

11.2 Global Floating Rigs Market Restraints

11.3 Global Floating Rigs Market Trends

12. Market Attractiveness and Strategic Analysis

12.1 Market Attractiveness

12.1.1 Market Attractiveness Chart of Global Floating Rigs Market - By Type (Year 2026)

12.1.2 Market Attractiveness Chart of Global Floating Rigs Market - By Application (Year 2026)

12.1.3 Market Attractiveness Chart of Global Floating Rigs Market - By Region (Year 2026)

13. Competitive Landscape

13.1 Global Leading Floating Rigs company market share, 2019

14. Company Profiles (Business Description, Financial Analysis, Business Strategy)

14.1 Baker Hughes

14.2 Schlumberger Limited

14.3 Aban Offshore Limited

14.4 Diamond Offshore Drilling, Inc.

14.5 Ensco Plc

14.6 Noble Corporation

14.7 Transocean

14.8 Halliburton

14.9 Maersk Drilling

14.10 Keppel Offshore & Marine

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


Contacts

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  • Fund will focus on early-stage ESG investments in decarbonization, renewable natural gas, hydrogen and other clean energy solutions, along with transformative digital capabilities for natural gas local distribution companies
  • Initial close of $45M in capital commitments from five publicly-traded natural gas and diversified utilities
  • ECV’s general partners include experienced corporate and strategic venture capital professionals as well as leading utility sector investment bankers with longstanding industry relationships
  • ECV is led by Vic Pascucci III, whose venture capital career includes numerous multi-billion dollar unicorn investments and leading venture programs for Fortune 100 corporations as well as institutional venture capital firms

CHICAGO--(BUSINESS WIRE)--, the only strategic venture capital fund purpose-built for driving environmental, social and governance innovation and digital transformation for the natural gas distribution industry, today announced it has closed on $45 million in capital commitments from five leading publicly-traded natural gas utility and multi-line utility companies.


ECV will concentrate on sustainability, reliability and resilience imperatives for the natural gas utility sector. The fund will work collaboratively with its corporate limited partners to identify the top founders and innovators that bring strategic value to its limited partners. This collaborative approach will also provide value-add support and industry access to ECV’s portfolio companies.

This is the first tranche of capital toward a larger fund targeting additional natural gas and diversified utilities, companies participating in and along the natural gas value chain, as well as traditional institutional limited partners who appreciate the ESG imperatives of the fund and the principals’ strong track record, according to ECV managing general partner Vic Pascucci III.

“I’m excited and honored to support our fantastic limited partners in their innovation journeys as we look to the entrepreneurial community to solve their ESG and digital transformation strategic priorities,” Pascucci said. “The opportunity to provide a platform to foster innovation and collaboration for our strategic partners who play such a critical role in our country’s energy transformation is truly amazing.”

Pascucci, a successful venture capitalist and top-performing investor, has led numerous investments in multibillion-dollar companies and category-defining startups. His previous investments include Personal Capital (acquired by Empower Retirement), ID.me, MX, Extend, TRUECar (NASDAQ: TRUE), Care.com (NYSE: CRCM), Coinbase (NASDAQ: COIN) and Clearcover.

Leading Utility Companies Join Fund as Limited Partners

The cornerstone of ECV’s partnership model is customization of the engagement to each limited partner’s strategic priorities, internal processes, resource availability, culture and business imperatives. The founding limited partners are Avista Utilities (NYSE: AVA), Black Hills Corporation (NYSE: BKH), NiSource (NYSE: NI), Southwest Gas (NYSE: SWX) and Spire (NYSE: SR). ECV has a tightly integrated and customized customer service approach toward advancing the industry. With leading natural gas utility companies as limited partners, ECV provides entrepreneurs with immediate access to commercial opportunities and first-hand industry insight.

“Innovation within the energy industry is essential to achieving a clean energy future. New technologies must emerge and evolve to propel us forward. Innovation is in Avista’s DNA. We’ve been innovating for more than 130 years, most recently through Avista’s Energy Innovation Lab,” said Avista President and CEO Dennis Vermillion. “By investing in Energy Capital Ventures, we’re also supporting and enabling the innovation of other companies that could bring new technologies to market to help advance our energy industry. By working together, we can move forward toward the clean energy future we all want.”

“Continually innovating to deliver leading technologies is critical to being ready to serve the future energy needs of our customers and communities,” said Linn Evans, President and CEO of Black Hills Corp. “This collaborative investment in Energy Capital Ventures in a cleaner energy future through safe and reliable natural gas technologies aligns with our ambition to make tomorrow even better than today.”

“As we prepare for the energy needs of future generations, investment in innovation is fundamental. At NiSource, we take a balanced approach to sustainability, which enables our customers to pursue their energy preferences safely, reliably, and affordably,” NiSource President and CEO Joe Hamrock said. “A fund dedicated to the ESG goals and technology advancement of our industry is a transformative enabler that helps us partner with innovative startups to serve our customers and community better.”

“Southwest Gas is committed to helping our customers and the communities we serve to build a sustainable energy future that is clean, affordable and reliable. We know natural gas service will have an essential role in our nation’s energy future and are proud to fund innovations that will propel our industry forward sustainably,” said John P. Hester, President and CEO of Southwest Gas. “Joining forces with industry peers through ECV, we believe our investment will lead to transformational technologies which will benefit both the environment and customers for generations to come.”

“Advancing through innovation is how we work every day at Spire. That’s why we are excited to be a part of ECV, supporting breakthrough innovations to transform how energy is delivered to customers and truly advance our industry,” said Spire CEO Suzanne Sitherwood. “By matching innovative entrepreneurs with established corporations, ECV can push the boundaries of what’s possible in delivering the affordable, reliable, clean natural gas customers depend on.”

ECV General Partners and Strategic Advisory Board Feature Notable Names in the Utility Sector

Joining Pascucci as general partners are Jeff Yingling and Ray O’Connor, two career-long energy sector investment bankers with billions of dollars in completed transaction volume combining for over 70 years of experience. Also joining as a general partner is successful Insurtech investor Rick Viton, who is also a partner with IA Capital, one of the largest strategic Insurtech fund managers with over 15 insurance company limited partner investors. ECV will leverage IA Capital’s strategic investment philosophy as well as the numerous synergistic relationships, technologies, market dynamics and innovation trends between Insurtech/Fintech and the utility industry, including AI technology for workforce and industrial safety, leak detection, IoT, risk management, cyber and climate risk solutions.

ECV has assembled a diverse and accomplished Strategic Board of Advisors to drive natural gas ESG innovation and digital transformation. ECV’s Advisors include active and retired corporate executives, regulators, global energy consultants and civic leaders, including:

  • Paul Addison, former Board Member and Finance Committee, First Energy Corp
  • David Carroll, President & CEO, Gas Technology Institute (GTI); former President, International Gas Union; Board Member, National Fuel Gas Company
  • Paul Dabbar, former Undersecretary for Science, Department of Energy
  • Rod Goldstein, former Chairman and Managing Partner, Frontenac
  • Chris Gould, EVP and Chief Sustainability Officer, California Resources Corporation; former Head of Corporate Strategy and Chief Innovation Officer, Exelon
  • Brad Henderson, Chief Executive Officer, P33 Chicago
  • Mike Huebsch, former Commissioner, Public Service Commission of Wisconsin and former State of Wisconsin - Secretary, Department of Administration, State Representative, Assembly Speaker, Majority Leader
  • Andy Lerner, Founder and Managing Partner, IA Capital
  • Allen Leverett, former CEO, WEC Energy Group
  • Margaret MacLean, former President, International, MacLean Power Systems
  • Bill Rogers, former EVP & CFO, CenterPoint Energy
  • Timothy Simon, former Chairperson NARUC Gas Committee, Chair LNG NARUC/DOE partnership; Chairman of the Board of Directors, California African American Chamber of Commerce, former California PUC, Director, Energy Imbalance Market
  • Jan Vrins, Managing Director/ Global Energy Practice Leader, Guidehouse
  • Mahvash Yazdi, former SVP and Chief Information Officer, Edison International & So. California Edison

About Energy Capital Ventures

Energy Capital Ventures (ECV) is a strategic venture capital firm focusing on the ESG imperatives, clean energy solutions and digital transformation of the natural gas utility sector. ECV specializes in decarbonization, renewable natural gas and other sustainability solutions for natural gas local distribution companies. Headquartered in Chicago with a presence in New York, ECV takes a customer-centric, ESG perspective on innovation for the industry as it deals with impending paradigm shifts. Learn more at energycapitalventures.com.


Contacts

Treble
Ethan Parker
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DUBLIN--(BUSINESS WIRE)--The "Air Separation Plant Market by Process (Cryogenic, Non-cryogenic), Gas (Nitrogen, Oxygen, Argon, Others), End-Use Industry (Iron & Steel, Oil & Gas, Chemical, Healthcare, Others) and Region - Global Forecast to 2026" report has been added to ResearchAndMarkets.com's offering.


The global market for air separation plants was valued at USD 4.5 billion in 2021 and is projected to reach USD 5.9 billion by 2026, at a CAGR of 4.9% between 2021 and 2026.

The global market for air separation plants is driven by strong growth in demand, especially from the iron & steel, oil & gas, chemical, healthcare, and other end-use industries.

The cryogenic process is the largest segment of the global air separation plant market, by the process.

Cryogenic technology was commercialized in 1902 and has since been used extensively by companies across multiple industries that require gases such as nitrogen, oxygen, and others. Being the oldest air separation technology available, it has evolved considerably over the years, resulting in improved efficiency and high purity of yield gases. The growing demand for fabricated metals and alloys across the globe, the increasing dependency on pure gases for enhancing metal properties, and rapid industrialization are expected to drive the air separation plant market during the next five years.

Nitrogen is the largest segment of the air separation plant market, by gas.

Cryogenic technology was commercialized in 1902 and has since been used extensively by companies across multiple industries that require gases such as nitrogen, oxygen, and others. Being the oldest air separation technology available, it has evolved considerably over the years, resulting in improved efficiency and high purity of yield gases. The growing demand for fabricated metals and alloys across the globe, the increasing dependency on pure gases for enhancing metal properties, and rapid industrialization are expected to drive the air separation plant market during the next five years.

Iron & Steel is the largest segment of the air separation plant market, by end-use industry.

Iron & steel are used in cars, appliances, roads, bridges, ships, airplanes, and in engineering and construction applications. Hence, with the development and growth of any country, the production and consumption of iron & steel increase proportionately. Countries such as China, the US, Japan, Russia, Italy, Germany, India and Brazil lead in the production and consumption of steel.

The Asia Pacific is projected to lead the air separation plant market during the forecast period.

Market growth in the Asia Pacific region can be attributed to the increasing metal production, fabrication, and consumption in countries such as Japan, China, and India. The Asia Pacific region accounts for the highest production and consumption of steel in the world, along with one of the highest oil refining capacities. It is also the manufacturing hub of the world, with abundant heavy machinery and equipment manufacturing companies.

Market Dynamics

Drivers

  • Growing Demand for Industrial Gases from Dynamic Manufacturing Sectors
  • Increased Demand for Medical Oxygen due to COVID-19

Restraints

  • High Costs Associated with Fabrication, Component Assembly, and Operations

Opportunities

  • Demand for Industrial Oxygen in the African Region due to COVID-19
  • Emerging Applications in Glass, Gasification, and Gas-To-Liquid Industries

Challenges

  • Development of Affordable as Well as Effective Technologies
  • Hazards Associated with Cryogenic Air Separation Technology

Companies Mentioned

  • Air Liquide S.A.
  • Air Products and Chemicals, Inc.
  • Air Water Inc.
  • AMCS Corporation
  • China National Air Separation Plant Corporation
  • Cryotec Anlagenbau GmbH
  • Daesung Industrial Co., Ltd.
  • Enerflex Ltd.
  • Gas Engineering, LLC
  • Hangzhou Hangyang Co., Ltd.
  • Inox Air Products Private Limited
  • Linde plc
  • Messer Group GmbH
  • Nikkiso Cosmodyne, LLC
  • Novair Sas
  • Phoenix Equipment Corporation
  • Ranch Cryogenics, Inc.
  • Siad Macchine Impianti S.P.A.
  • Taiyo Nippon Sanso Corporation
  • Technex Limited
  • Universal Industrial Gases, Inc.
  • Universal Ing. L. & A. Boschi Plants Private Limited
  • Yingde Gases Group Co., Ltd.

For more information about this report visit https://www.researchandmarkets.com/r/z71nl


Contacts

ResearchAndMarkets.com
Laura Wood, Senior Press Manager
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Through implementing smart metering infrastructure, city officials will be able to more accurately capture metered water consumption and potential increases in water and sewer billing revenues.

FRAMINGHAM, Mass. & BELLMEAD, Texas--(BUSINESS WIRE)--#cleanenergy--Ameresco, Inc. (NYSE: AMRC), a leading cleantech integrator specializing in energy efficiency and renewable energy, today announced its partnership with the City of Bellmead, Texas for a comprehensive smart metering infrastructure improvement project.



The project will include the installation of solid-state water meters and an advanced metering infrastructure (AMI) system. As part of the new AMI system installation, Ameresco will replace 3,797 water meters throughout the city, as well as recommissioning recently installed meters.

By implementing an AMI system, city officials will be able to more accurately capture metered water consumption and potential increases in water and sewer billing revenues. As a result, the automation of Bellmead’s billing system will improve meter accessibility issues and reduce billing errors. Customers will also be able to visit a customer web portal that will allow them to see their historical utility consumption data.

“We are deeply invested in improving the day-to-day lives of our community members. Our partnership with Ameresco on this metering infrastructure improvement project is only the latest demonstration of our commitment to fostering a sustainable future that’s not only good for the environment, but for our citizens as well,” said Yost Zakhary, Bellmead City Manager.

The City of Bellmead will also benefit from the improvement of IT infrastructure necessary to manage water consumption and distribution at a more advanced level, as well as strengthen its ability to provide enhanced customer service to the local community.

“We’re excited to announce this partnership with the City of Bellmead as their leadership takes steps to improve the sustainability of their community,” said Bob Georgeoff, executive vice president, Ameresco. “We’re honored to have been selected to lead this project and look forward to enhancing customer transparency throughout the city. Together, we’ll reduce the city’s overall operational costs and address its long-term meter reading operational needs.”

Construction is expected to be completed in early 2022.

To learn more about the energy efficiency solutions offered by Ameresco, visit www.ameresco.com/energy-efficiency/.

About Ameresco, Inc.

Founded in 2000, Ameresco, Inc. (NYSE:AMRC) is a leading cleantech integrator and renewable energy asset developer, owner and operator. Our comprehensive portfolio includes energy efficiency, infrastructure upgrades, asset sustainability and renewable energy solutions delivered to clients throughout North America and the United Kingdom. Ameresco’s sustainability services in support of clients’ pursuit of Net Zero include upgrades to a facility’s energy infrastructure and the development, construction, and operation of distributed energy resources. Ameresco has successfully completed energy saving, environmentally responsible projects with Federal, state and local governments, healthcare and educational institutions, housing authorities, and commercial and industrial customers. With its corporate headquarters in Framingham, MA, Ameresco has more than 1,000 employees providing local expertise in the United States, Canada, and the United Kingdom. For more information, visit www.ameresco.com.

About City of Bellmead, Texas

Bellmead, Texas is a small City located just 10 minutes Northeast of Waco, TX, and strategically positioned off 3 major highways. Bellmead is proud to house almost 11,000 residents that make up a very welcoming community, as well as partner with nearby well-known institutions such as Baylor University, Texas State Technical College, and McClennan Community College. Bellmead shares a Northern Border with the L3 Harris Technologies Airport, and is also conveniently located just 10 minutes from the Waco Municipal Airport. While visiting Bellmead you’ll have easy access to the many attractions nearby, including but not limited to, kayaking on the beautiful Brazos River, visiting Cameron Park Zoo, shopping at the Magnolia Silos, experiencing the Barefoot Ski Ranch (BSR) Cable Park, browsing for gifts at Spice Village, and much more. Make sure to stop by our famous Collin Street Bakery located nearby Bellmead’s various hotels to grab a few sweets before you head home! For more information visit www.Bellmead.com.

The announcement of a customer’s entry into a project contract is not necessarily indicative of the timing or amount of revenue from such contract, of the company’s overall revenue for any particular period or of trends in the company’s overall total project backlog. This project was included in our previously reported contracted backlog as of June 30, 2021.


Contacts

Media Contact:
Ameresco: Leila Dillon, 508-661-2264, This email address is being protected from spambots. You need JavaScript enabled to view it.

 Investment will expand Phillips 66’s presence in the battery supply chain and advance NOVONIX’s production of synthetic graphite for high-performance lithium-ion batteries

HOUSTON & BRISBANE, Australia--(BUSINESS WIRE)--Phillips 66 (NYSE: PSX) today announced it has entered into an agreement to acquire a 16% stake in NOVONIX Limited (ASX: NVX, OTC: NVNXF), a Brisbane, Australia-based company that develops and supplies in-demand materials for lithium-ion batteries.

This strategic investment enables Phillips 66 to directly support the development of the U.S. battery supply chain,” said Greg Garland, Chairman and CEO of Phillips 66. “It advances our commitment to pursue lower-carbon solutions while leveraging our leadership position and expertise in the specialty coke market and supporting NOVONIX’s emerging position in U.S.-based anode production.”


Phillips 66 is a leading global manufacturer of specialty coke, a key precursor in the production of batteries that power electric vehicles, personal electronics, medical devices and energy storage units. NOVONIX, a leading producer of synthetic graphite, processes specialty coke to make high-performance anode material for these batteries. The investment supports the development of a fully domestic supply chain for sales into the U.S. electric vehicle and energy storage system markets.

We’re excited by Phillips 66’s vision for a sustainable future and confidence in our business plan and management team,” said NOVONIX CEO and co-founder Chris Burns, Ph.D. “Phillips 66’s investment will provide us with the capital needed to support growth and ongoing R&D as we continue to scale our synthetic graphite production and develop new technologies for higher-performance energy storage applications. We look forward to continuing to build our relationship with Phillips 66 as both a strategic partner and investor.”

Under the terms of the agreement, Phillips 66 will subscribe for 77,962,578 ordinary shares of NOVONIX for a total purchase price of US$150 million. Additionally, Phillips 66 will nominate one director to NOVONIX’s Board of Directors. The transaction is subject to approval by NOVONIX shareholders, as well as other customary closing conditions. This investment is driven by Phillips 66’s Emerging Energy organization, which is tasked with building a lower-carbon business platform.

NOVONIX’s anode materials business is based in Chattanooga, Tennessee, where it is increasing capacity to produce 10,000 metric tons per year of synthetic graphite by 2023. The investment by Phillips 66 will support a capacity expansion of an additional 30,000 mt/year, which is expected to be completed by 2025.

About Phillips 66

Phillips 66 is a diversified energy manufacturing and logistics company. With a portfolio of Midstream, Chemicals, Refining, and Marketing and Specialties businesses, the company processes, transports, stores and markets fuels and products globally. Phillips 66 Partners, the company’s master limited partnership, is integral to the portfolio. Headquartered in Houston, the company has 14,000 employees committed to safety and operating excellence. Phillips 66 had $57 billion of assets as of June 30, 2021. For more information, visit www.phillips66.com or follow us on Twitter @Phillips66Co.

About NOVONIX

NOVONIX Limited is an integrated developer and supplier of high-performance materials, equipment and services for the global lithium-ion battery industry with operations in the U.S. and Canada and sales in more than 14 countries. NOVONIX's mission is to enable a clean energy future by producing longer-life and lower-cost battery materials and technologies.

CAUTIONARY STATEMENT FOR THE PURPOSES OF THE “SAFE HARBOR” PROVISIONS

OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

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, which are intended to be covered by the safe harbors created thereby. Forward-looking statements may be identified by the use of words like “plans,” “expects,” “will,” “anticipates,” “believes,” “intends,” “projects,” “targets,” “estimates” or other words of similar meaning. Forward-looking statements are based on certain assumptions and expectations of future events which may not be accurate or realized, and involve risks and uncertainties, many of which are beyond Phillips 66’s control, including but not limited to regulatory approvals and market conditions. A discussion of factors that may affect future results is included in Phillips 66’s filings with the Securities and Exchange Commission. Phillips 66 disclaims and does not undertake any obligation to update or revise any forward-looking statement, except as required by applicable law.


Contacts

For Phillips 66:

Jeff Dietert (investors)
832-765-2297
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Shannon Holy (investors)
832-765-2297
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Bernardo Fallas (media)
855-841-2368
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For NOVONIX Limited:

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Ian Pemberton (media)
+61 402 256 576
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PRINCETON, N.J.--(BUSINESS WIRE)--NRG Energy, Inc. (NYSE:NRG) intends to commence an offering of $1.1 billion in aggregate principal amount of senior notes due 2032 (the “New Notes”). The New Notes will be senior unsecured obligations of NRG and will be guaranteed by each of NRG’s current and future subsidiaries that guarantee indebtedness under NRG’s credit agreement. The New Notes are being issued under NRG’s Sustainability-Linked Bond Framework, which sets out certain sustainability targets, including reducing greenhouse gas emissions.

NRG intends to use the net proceeds from the offering, together with cash on hand and borrowings under one or more of its liquidity facilities, to repurchase, pursuant to NRG’s concurrent exercise of its optional redemption rights, (i) all of the $1.0 billion outstanding aggregate principal amount of its 7.25% senior notes due 2026 (the “2026 Notes”) and (ii) $355 million of the $1.23 billion outstanding aggregate principal amount of its 6.625% senior notes due 2027 (the “2027 Notes”), and to pay fees and expenses incurred in connection with the repurchase of the 2026 Notes and 2027 Notes.

The New Notes and related guarantees are being offered only to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), or, outside the United States, to persons other than “U.S. persons” in compliance with Regulation S under the Securities Act. The New Notes and related guarantees have not been registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release does not constitute an offer to sell any security, including the New Notes, nor a solicitation for an offer to purchase any security, including the New Notes, the 2026 Notes or the 2027 Notes.

About NRG

At NRG, we’re bringing the power of energy to people and organizations by putting customers at the center of everything we do. We generate electricity and provide energy solutions and natural gas to millions of customers through our diverse portfolio of retail brands. A Fortune 500 company, operating in the United States and Canada, NRG delivers innovative solutions while advocating for competitive energy markets and customer choice, working towards a sustainable energy future.

Forward-Looking Statements

This communication contains forward-looking statements that may state NRG’s or its management’s intentions, beliefs, expectations or predictions for the future. Such forward-looking statements are subject to certain risks, uncertainties and assumptions, and typically can be identified by the use of words such as “will,” “expect,” “estimate,” “anticipate,” “forecast,” “plan,” “believe” and similar terms. Although NRG believes that its expectations are reasonable, it can give no assurance that these expectations will prove to have been correct, and actual results may vary materially. Factors that could cause actual results to differ materially from those contemplated above include, among others, risks and uncertainties related to the capital markets generally and whether NRG will offer the New Notes or consummate the offering, the anticipated terms of the New Notes and the anticipated use of proceeds.

The foregoing review of factors that could cause NRG’s actual results to differ materially from those contemplated in the forward-looking statements included herein should be considered in connection with information regarding risks and uncertainties that may affect NRG’s future results included in NRG’s filings with the SEC at www.sec.gov.


Contacts

Investors:
Kevin L. Cole, CFA
609.524.4526
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Media:
Candice Adams
609.524.5428
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DUBLIN--(BUSINESS WIRE)--The "Global Butene-1 Market Outlook to 2026" report has been added to ResearchAndMarkets.com's offering.


Global Butene-1 market is expected to witness a moderate growth rate during the forecast period. The market is likely to grow at a CAGR of around 4%.

The main factor driving the market is the high demand for polyethylene due to the numerous applications of plastics in our day-to-day activities. Butene-1 is used for the manufacturing of LDPE and HDPE. There are other polymers available, but the low cost of butene-1 gives the manufacturers an economic advantage.

However, polyethylene is non-biodegradable, and it pollutes the environment. In many countries, governments are taking stringent measures to reduce the use of plastics. This may hinder the growth of the market. Research and development are continuously going on to make biodegradable plastics, which can be a threat to the market. Still, its impact may not be evident soon because the feasibility and viability of the products should be considered. The ongoing Covid-19 pandemic has fueled the demand for PPE, which can be an opportunity for the market.

The Asia-Pacific region is likely to dominate the Butene-1 market in the forecast period owing to the increasing demand for polyethylene. The ease of availability of raw materials and low-cost manufacturing is a significant advantage and many industries are setting up their manufacturing bases in India or China.

The global Butene-1 market is partially fragmented. The major players in the global Butene-1 market are Exxon Mobil Corporation, Shell Chemical, SABIC, Mitsui Chemicals, Inc, Sumitomo Chemical, among others.

In November 2020, Axens announced that Arcanum Infrastructure, LLC and Axens NA Inc. successfully began ongoing operations and production of Butene-1 at Raven Butene-1, LLC, which is an asset, based on Axens AlphaButol technology located in Texas, USA.

Key Topics Covered:

1. Executive Summary

2. Research Scope and Methodology

2.1 Aim & Objective of the study

2.2 Market Definition

2.3 Study Information

2.4 General Study Assumptions

2.5 Research Phases

3. Market Analysis

3.1 Introduction

3.2 Market Dynamics

3.2.1 Drivers

3.2.2 Restraints

3.3 Market Trends & Developments

3.4 Market Opportunities

3.5 Feedstock Analysis

3.6 Regulatory Policies

3.7 Analysis of Covid-19 Impact

4. Industry Analysis

4.1 Supply Chain Analysis

4.2 Porter's Five Forces Analysis

5. Market Segmentation & Forecast

5.1 By Method of production

5.1.1 Butane dehydrogenation

5.1.2 Ethylene dimerization

5.1.3 Separation of crude C4

5.2 By Application

5.2.1 Butadiene

5.2.2 Maleic anhydride

5.2.3 Polyethylene

5.2.4 Secondary butyl alcohol/methyl ethyl ketone

5.2.5 Other Applications

6. Regional Market Analysis

6.1 North America

6.1.1 United States of America

6.1.2 Canada

6.1.3 Mexico

6.2 Europe

6.2.1 UK

6.2.2 Germany

6.2.3 France

6.2.4 Italy

6.2.5 Spain

6.2.6 Russia

6.2.7 Rest of Europe

6.3 Asia-Pacific

6.3.1 China

6.3.2 South Korea

6.3.3 Japan

6.3.4 India

6.3.5 ASEAN countries

6.3.6 Rest of Asia-Pacific

6.4 South America

6.4.1 Brazil

6.4.2 Argentina

6.4.3 Rest of South America

6.5 Middle East & Africa

6.5.1 Saudi Arabia

6.5.2 South Africa

6.5.3 Rest of Middle East & Africa

7. Key Company Profiles

7.1 Daelim Industrial

7.2 Exxon Mobil Corporation

7.3 Chevron Phillips Chemical Company

7.4 Bangkok Synthetics Co., Ltd

7.5 Evonik Industries

7.6 Jam Petrochemical Company

7.7 Mitsui Chemicals, Inc

7.8 LyondellBasell Industries

7.9 Lorestan Petrochemical Co.

7.10 SABIC

7.11 TPC Group

7.12 Shell Chemical

7.13 Praxair

7.14 Sumitomo Chemical

7.15 Tonen Chemical

7.16 The Idemitsu Kosan Company

8. Competitive Landscape

8.1 List of Notable Players in the Market

8.2 M&A, JV, and Agreements

8.3 Market Share Analysis

8.4 Strategies of Key Players

9. Conclusions and Recommendations

For more information about this report visit https://www.researchandmarkets.com/r/7frh7l


Contacts

ResearchAndMarkets.com
Laura Wood, Senior Press Manager
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KANSAS CITY, Mo.--(BUSINESS WIRE)--CorEnergy Infrastructure Trust, Inc. (NYSE: CORR, CORRPrA) ("CorEnergy" or the "Company") today announced financial results for the second quarter, ended June 30, 2021.


Second Quarter 2021 and Recent Highlights

  • Reported consolidated revenue of $32.3 million for the three months ended June 30, 2021, the first full quarter of consolidated financial statements following the Company's transaction with Crimson Midstream Holdings.
  • Increased tariffs 10% on substantially all of Crimson's regulated pipelines, with all rate increases effective on or before August 1, 2021.
  • Simplified the company’s capitalization with (i) the conversion of the right held by Crimson Class A-2 Unit holders to exchange into Series B Preferred Stock to the right to exchange into Class B Common Stock, (ii) the internalization the Company’s external manager in exchange for Company securities, and (iii) the right held by Crimson Class A-1 Unit holders to receive Series C Preferred Stock was converted to the right to receive Series A Perpetual Preferred Stock pursuant to the terms of the Crimson Transaction. The combination of these actions effectively eliminated the potential of the Series C and Series B Preferred from being issued by the Company.

Management Commentary

"During the second quarter we made significant progress following our transaction with Crimson Midstream Holdings," said Dave Schulte, Chief Executive Officer. "In addition to ongoing integration activities at the corporate and asset levels, our stockholders approved the proposal to issue equity contemplated in the transaction. A substantial portion of this equity is to be held by management and subordinated to our common shares, evidencing our confidence in the future financial performance of the business and creating even greater alignment with the interest of our stockholders. As a result of these transactions, we have created an industry leading platform to own and operate or lease infrastructure assets with desirable REIT characteristics in order to provide stockholders with dividend stability and prospects for modest long-term growth."

"The second quarter represented our first full quarter of activity with our Crimson assets. Production volumes in California are improving but have not yet returned to pre-COVID levels. Nonetheless, we expect revenue in the last half of the year to improve from the second quarter and are maintaining our common stock dividend at $0.20 annualized per share. Volume benefits from a return to pre-COVID market conditions in California, near-term commercial opportunities and the realization of acquisition efficiencies could enable us to increase our dividend coverage. We are also actively evaluating additional transactions to deploy capital in further asset and platform-level expansion opportunities that we believe would create value for our stockholders through enhanced scale and diversification. Finally, we are evaluating economically leveraging our footprint and capabilities to participate in the ongoing energy transition."

Second Quarter Performance Summary

Second quarter 2021 reflects full impact of the activity from Crimson. Second quarter financial highlights are as follows:

 

For the Three Months Ended

 

June 30, 2021

 

 

 

Per Share

 

Total

 

Basic

 

Diluted

Net Loss (Attributable to Common Stockholders)

$

(1,897,133)

 

 

$

(0.14)

 

 

$

(0.14)

 

Net Cash Provided by Operating Activities

$

4,358,342

 

 

 

 

 

Adjusted Net Income1

$

3,026,061

 

 

 

 

 

Cash Available for Distribution (CAD)1

$

(1,005,387)

 

 

 

 

 

Adjusted EBITDA2

$

9,965,109

 

 

 

 

 

 

 

 

 

 

 

Dividends Declared to Common Stockholders

 

 

$

0.05

 

 

 

1 Adjusted Net Income excludes special items of $338 thousand which are not representative of on-going operations; however CAD has not been so adjusted. Reconciliations of Adjusted Net Income and CAD, as presented, to Net Income (Loss) and Net Cash Provided by Operating Activities are included at the end of this press release. See Note 1 for additional information.

2 Adjusted EBITDA excludes special items of $338 thousand which are not representative of on-going operations. Reconciliation of Adjusted EBITDA, as presented, to Net Income (Loss) is included at the end of this press release. See Note 2 for additional information.

Outlook

CorEnergy reaffirmed its 2021 outlook and expects to provide its 2022 outlook no later than in connection with the filing of its Form 10-K for 2021.

Dividend and Distribution Declarations

The Company currently expects all of its 2021 Common Stock and Preferred Stock dividends will be characterized as Return of Capital for tax purposes.

Common Stock: A second quarter 2021 dividend of $0.05 per share was declared for CorEnergy's common stock. The dividend will be paid on August 31, 2021, to stockholders of record on August 17, 2021.

Preferred Stock: For the Company's 7.375% Series A Cumulative Redeemable Preferred Stock, a cash dividend of $0.4609375 per depositary share was declared. The preferred stock dividend, which equates to an annual dividend payment of $1.84375 per depositary share, will be paid on August 31, 2021, to stockholders of record on August 17, 2021.

Class A-1 Units: For the Company's Series C Preferred stock, as if they were outstanding, a cash dividend of $0.5625 per share was declared, prorated through the June 30, 2021 conversion date. The Class A-1 holders will also receive a prorated cash distribution, for the period June 30, 2021 to August 31, 2021 based on the declared Series A Preferred dividend. The Series C Preferred Stock will no longer be treated as outstanding after the Class A-1 Units became exchangeable into Series A Preferred Stock.

Class A-2 Units: For the Company's Series B Preferred stock, as if they were outstanding, an in-kind dividend of $0.25 was declared. prorated through the June 30, 2021 conversion date. The Class A-2 unit holders will be eligible for a Class B Common Stock dividend starting with the third quarter of 2021. The Series B Preferred Stock will no longer be treated as though outstanding after the July 7, 2021 shareholder approval to convert the right of A-2 Units to exchange into Series B Preferred Stock to now being exchangeable into Class B Common Stock.

Class A-3 Units: For the Company's Class B Common Stock, as if they were outstanding, no dividend was declared.

Second Quarter Results Call

CorEnergy will host a conference call on Monday, August 9, 2021 at 1:00 p.m. Central Time to discuss its financial results. Please dial into the call at +1-201-689-8035 at least five minutes prior to the scheduled start time. The call will also be webcast in a listen-only format. A link to the webcast will be accessible at corenergy.reit.

A replay of the call will be available until 2:00 p.m. Central Time on September 8, 2021, by dialing +1-919-882-2331. The Conference ID is 40741. A webcast replay of the conference call will also be available on the Company’s website, corenergy.reit.

About CorEnergy Infrastructure Trust, Inc.

CorEnergy Infrastructure Trust, Inc. (NYSE: CORR, CORRPrA) is a real estate investment trust that owns and operates or leases regulated natural gas transmission and distribution lines and crude oil gathering, storage and transmission pipelines and associated rights-of-way. For more information, please visit corenergy.reit.

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 CorEnergy believes 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, among others, failure to realize the anticipated benefits of the Transaction or Internalization; the risk that CPUC approval is not obtained, is delayed or is subject to unanticipated conditions that could adversely affect CorEnergy or the expected benefits of the Transaction, risks related to the uncertainty of the projected financial information with respect to Crimson, CorEnergy’s ability realize the projected benefits of the Internalization, and those factors discussed in CorEnergy’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, CorEnergy does not assume a duty to update any forward-looking statement. In particular, any distribution paid in the future to our stockholders will depend on the actual performance of CorEnergy, its costs of leverage and other operating expenses and will be subject to the approval of CorEnergy’s Board of Directors and compliance with leverage covenants.

Notes

1 Management uses CAD as a measure of long-term sustainable performance. Adjusted Net Income and CAD are non-GAAP measures. Adjusted Net Income represents net income (loss) adjusted for loss on impairment of leased property; loss on impairment and disposal of property; loss on termination of lease; loss on extinguishment of debt; non-cash lease expense; gain on sale of equipment and transaction-related costs. CAD represents Adjusted Net Income adjusted for depreciation, amortization and ARO accretion (cash flows) and income tax expense (benefit) less transaction costs; maintenance capital expenditures; preferred dividend requirements and mandatory debt amortization. Reconciliations of Adjusted Net Income and CAD to Net Income (Loss) and Net Cash Provided By Operating Activities are included in the additional financial information attached to this press release.

2 Management uses Adjusted EBITDA as a measure of operating performance. Adjusted EBITDA represents net income (loss) adjusted for items such as loss on impairment of leased property; loss on impairment disposal of leased property; loss on termination of lease; gain on extinguishment of debt; gain on sale of equipment; and transaction-related costs. Adjusted EBITDA is further adjusted for depreciation, amortization and ARO accretion expense; income tax expense (benefit) and interest expense. The reconciliation of Adjusted EBITDA to Net Income (Loss) is included in the additional financial information attached to this press release.

Consolidated Balance Sheets

 

 

 

 

 

 

 

June 30, 2021

 

December 31, 2020

 

Assets

(Unaudited)

 

 

 

Property and equipment, net of accumulated depreciation of $28,973,654 and $22,580,810 (Crimson VIE: $338,930,724, and $0, respectively)

$

443,457,382

 

 

$

106,224,598

 

 

Leased property, net of accumulated depreciation of $237,579 and $6,832,167

1,288,449

 

 

64,938,010

 

 

Financing notes and related accrued interest receivable, net of reserve of $600,000 and $600,000

1,149,245

 

 

1,209,736

 

 

Cash and cash equivalents (Crimson VIE: $2,989,319 and $0, respectively)

17,695,458

 

 

99,596,907

 

 

Accounts and other receivables (Crimson VIE: $11,434,113 and $0, respectively)

14,389,085

 

 

3,675,977

 

 

Due from affiliated companies (Crimson VIE: $1,154,499 and $0, respectively)

1,163,633

 

 

 

 

Deferred costs, net of accumulated amortization of $155,353 and $2,130,334

986,994

 

 

1,077,883

 

 

Inventory (Crimson VIE: $1,512,398 and $0, respectively)

1,625,464

 

 

87,940

 

 

Prepaid expenses and other assets (Crimson VIE: $4,018,467 and $0, respectively)

10,939,625

 

 

2,054,804

 

 

Operating right-of-use assets (Crimson VIE: $5,844,591 and $0, respectively)

5,914,710

 

 

85,879

 

 

Deferred tax asset, net

4,173,754

 

 

4,282,576

 

 

Goodwill

1,718,868

 

 

1,718,868

 

 

Total Assets

$

504,502,667

 

 

$

284,953,178

 

 

Liabilities and Equity

 

 

 

 

Secured credit facilities, net of debt issuance costs of $1,580,091 and $0

$

104,419,909

 

 

$

 

 

Unsecured convertible senior notes, net of discount and debt issuance costs of $2,713,020 and $3,041,870

115,336,979

 

 

115,008,130

 

 

Asset retirement obligation

 

 

8,762,579

 

 

Accounts payable and other accrued liabilities (Crimson VIE: $11,454,583 and $0, respectively)

20,780,331

 

 

4,628,847

 

 

Management fees payable

304,770

 

 

971,626

 

 

Due to affiliated companies (Crimson VIE: $970,469 and $0, respectively)

979,603

 

 

 

 

Operating lease liability (Crimson VIE: $5,609,946 and $0, respectively)

5,651,002

 

 

56,441

 

 

Unearned revenue (Crimson VIE $315,000 and $0, respectively)

6,147,990

 

 

6,125,728

 

 

Total Liabilities

$

253,620,584

 

 

$

135,553,351

 

 

Commitments and Contingencies

 

 

 

 

Equity

 

 

 

 

Series A Cumulative Redeemable Preferred Stock 7.375%, $125,270,350 and $125,270,350 liquidation preference ($2,500 per share, $0.001 par value), 10,000,000 authorized; 50,108 and 50,108 issued and outstanding at June 30, 2021 and December 31, 2020, respectively

$

125,270,350

 

 

$

125,270,350

 

 

Common stock, non-convertible, $0.001 par value; 13,673,326 and 13,651,521 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively (100,000,000 shares authorized)

13,673

 

 

13,652

 

 

Additional paid-in capital

333,890,657

 

 

339,742,380

 

 

Retained deficit

(327,513,586

)

 

(315,626,555

)

 

Total CorEnergy Equity

131,661,094

 

 

149,399,827

 

 

Non-controlling interest (Crimson)

119,220,989

 

 

 

 

Total Equity

250,882,083

 

 

149,399,827

 

 

Total Liabilities and Equity

$

504,502,667

 

 

$

284,953,178

 

 

Consolidated Statements of Operations (Unaudited)

 

 

 

 

 

For the Three Months Ended

 

June 30, 2021

 

June 30, 2020

Revenue

 

 

 

Transportation and distribution revenue

$

28,100,343

 

 

$

4,382,706

 

Pipeline loss allowance subsequent sales

2,915,533

 

 

 

Lease revenue

701,525

 

 

5,554,368

 

Other revenue

579,177

 

 

29,913

 

Total Revenue

32,296,578

 

 

9,966,987

 

Expenses

 

 

 

Transportation and distribution expenses

15,363,410

 

 

1,222,135

 

Pipeline loss allowance subsequent sales cost of revenue

2,223,646

 

 

 

General and administrative

5,381,654

 

 

4,325,924

 

Depreciation, amortization and ARO accretion expense

3,748,453

 

 

3,662,926

 

Loss on impairment and disposal of leased property

 

 

146,537,547

 

Loss on termination of lease

 

 

458,297

 

Total Expenses

26,717,163

 

 

156,206,829

 

Operating Income (Loss)

$

5,579,415

 

 

$

(146,239,842

)

Other Income (Expense)

 

 

 

Other income

$

299,293

 

 

$

102,038

 

Interest expense

(3,295,703

)

 

(2,920,424

)

Gain on extinguishment of debt

 

 

11,549,968

 

Total Other Expense

(2,996,410

)

 

8,731,582

 

Income (Loss) before income taxes

2,583,005

 

 

(137,508,260

)

Taxes

 

 

 

Current tax expense (benefit)

20,374

 

 

(2,431

)

Deferred tax expense (benefit)

135,222

 

 

(71,396

)

Income tax expense (benefit), net

155,596

 

 

(73,827

)

Net income (Loss)

2,427,409

 

 

(137,434,433

)

Less: Net income attributable to non-controlling interest

2,014,870

 

 

 

Net income (Loss) attributable to CorEnergy Stockholders

$

412,539

 

 

$

(137,434,433

)

Preferred dividend requirements

2,309,672

 

 

2,309,672

 

Net loss attributable to Common Stockholders

$

(1,897,133

)

 

$

(139,744,105

)

 

 

 

 

Loss Per Common Share:

 

 

 

Basic

$

(0.14

)

 

$

(10.24

)

Diluted

$

(0.14

)

 

$

(10.24

)

Weighted Average Shares of Common Stock Outstanding:

 

 

 

Basic

13,659,667

 

 

13,651,521

 

Diluted

13,659,667

 

 

13,651,521

 

Dividends declared per share

$

0.050

 

 

$

0.050

 

Consolidated Statements of Cash Flows (Unaudited)

 

 

 

 

 

For the Six Months Ended

 

June 30, 2021

 

June 30, 2020

Operating Activities

 

 

 

Net loss

$

(8,266,854

)

 

$

(299,476,801

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

Deferred income tax, net

108,822

 

 

298,525

 

Depreciation, amortization and ARO accretion

7,427,544

 

 

9,963,908

 

Loss on impairment of leased property

 

 

140,268,379

 

Loss on impairment and disposal of leased property

5,811,779

 

 

146,537,547

 

Loss on termination of lease

165,644

 

 

458,297

 

Deferred rent receivable write-off, noncash

 

 

30,105,820

 

(Gain) loss on extinguishment of debt

861,814

 

 

(11,549,968

)

Non-cash lease expense

439,246

 

 

 

Gain on sale of equipment

 

 

(3,542

)

Changes in assets and liabilities:

 

 

 

Deferred rent receivable

 

 

(247,718

)

Accounts and other receivables

541,580

 

 

1,216,469

 

Financing note accrued interest receivable

(9,926

)

 

(4,671

)

Inventory

144,113

 

 

 

Prepaid expenses and other assets

(2,788,545

)

 

85,197

 

Due from affiliated companies, net

(184,030

)

 

 

Management fee payable

(666,856

)

 

(8,299

)

Accounts payable and other accrued liabilities

1,740,265

 

 

(613,391

)

Operating lease liability

(673,516

)

 

 

Unearned revenue

(292,738

)

 

(607,951

)

Net cash provided by operating activities

$

4,358,342

 

 

$

16,421,801

 

Investing Activities

 

 

 

Acquisition of Crimson Midstream Holdings, net of cash acquired

(69,002,053

)

 

 

Purchases of property and equipment, net

(9,275,334

)

 

(85,144

)

Proceeds from sale of property and equipment

79,600

 

 

7,500

 

Proceeds from insurance recovery

60,153

 

 

 

Principal payment on financing note receivable

70,417

 

 

43,333

 

Net cash used in investing activities

$

(78,067,217

)

 

$

(34,311

)

Financing Activities

 

 

 

Debt financing costs

(2,735,922

)

 

 

Repurchases of Series A preferred stock

 

 

(161,997

)

Dividends paid on Series A preferred stock

(4,619,344

)

 

(4,623,452

)

Dividends paid on Common Stock

(1,232,357

)

 

(10,921,216

)

Cash paid for extinguishment of convertible notes

 

 

(1,676,000

)

Cash paid for maturity of convertible notes

 

 

(1,316,250

)

Cash paid for settlement of Pinedale Secured Credit Facility

 

 

(3,074,572

)

Distributions to non-controlling interest

(604,951

)

 

 

Advances on revolving line of credit

8,000,000

 

 

 

Payments on revolving line of credit

(7,000,000

)

 

 

Principal payments on secured credit facilities

 

 

(1,764,000

)

Net cash used in financing activities

$

(8,192,574

)

 

$

(23,537,487

)

Net change in Cash and Cash Equivalents

$

(81,901,449

)

 

$

(7,149,997

)

Cash and Cash Equivalents at beginning of period

99,596,907

 

 

120,863,643

 

Cash and Cash Equivalents at end of period

$

17,695,458

 

 

$

113,713,646

 

Supplemental Disclosure of Cash Flow Information

 

 

 

Interest paid

$

5,750,876

 

 

$

5,392,894

 

Income taxes paid (net of refunds)

(1,286

)

 

(466,407

)

 

 

 

 

Non-Cash Investing Activities

 

 

 

Proceeds from sale of leased property provided directly to secured lender

$

 

 

$

18,000,000

 

In-kind consideration for the Grand Isle Gathering System provided as partial consideration for the Crimson Midstream Holdings acquisition

48,873,169

 

 

 

Crimson Credit Facility assumed and refinanced in connection with the Crimson Midstream Holdings acquisition

105,000,000

 

 

 

Equity consideration attributable to non-controlling interest holder in connection with the Crimson Midstream Holdings acquisition

116,205,762

 

 

 

Purchases of property, plant and equipment in accounts payable and other accrued liabilities

386,009

 

 

110,000

 

 

 

 

 

Non-Cash Financing Activities

 

 

 

Change in accounts payable and accrued expenses related to debt financing costs

$

235,198

 

 

$

 

Common Stock issued upon exchange and conversion of convertible notes

 

 

419,129

 

Proceeds from sale of leased property used in settlement of Pinedale Secured Credit Facility

 

 

(18,000,000

)

Crimson A-2 Units dividends payment in kind

406,000

 

 

 

Non-GAAP Financial Measurements (Unaudited)

The following table presents a reconciliation of Net Income (Loss), as reported in the Consolidated Statements of Operations, to Adjusted Net Income (Loss) and CAD:

 

 

For the Three Months Ended

 

June 30, 2021

 

June 30, 2020

Net Income (Loss)

$

2,427,409

 

 

$

(137,434,433

)

Add:

 

 

 

Loss on impairment and disposal of leased property

 

 

146,537,547

 

Loss on termination of lease

 

 

458,297

 

Gain on extinguishment of debt

 

 

(11,549,968

)

Non-cash lease expense

260,704

 

 

 

Gain on the sale of equipment

 

 

(7,500

)

Transaction costs

337,948

 

 

92,293

 

Adjusted Net Income (Loss), excluding special items

$

3,026,061

 

 

$

(1,903,764

)

Add:

 

 

 

Depreciation, amortization and ARO accretion (Cash Flows)

4,160,510

 

 

3,988,592

 

Income tax expense (benefit), net

155,596

 

 

(73,827

)

Less:

 

 

 

Transaction costs

337,948

 

 

92,293

 

Maintenance capital expenditures

2,182,155

 

 

 

Preferred dividend requirements - Series A

2,309,672

 

 

2,309,672

 

Preferred dividend requirements - Non-controlling interest

1,517,779

 

 

 

Mandatory debt amortization

2,000,000

 

 

882,000

 

Cash Available for Distribution (CAD)

$

(1,005,387

)

 

$

(1,272,964

)

The following table reconciles net cash provided by operating activities, as reported in the Consolidated Statements of Cash Flows to CAD:

 

For the Three Months Ended

 

June 30, 2021

 

June 30, 2020

Net cash provided by operating activities

$

6,839,503

 

 

$

4,654,089

 

Changes in working capital

144,342

 

 

(2,732,950

)

Current tax expense (benefit)

20,374

 

 

(2,431

)

Maintenance capital expenditures

(2,182,155

)

 

 

Preferred dividend requirements

(2,309,672

)

 

(2,309,672

)

Preferred dividend requirements - Non-controlling interest

(1,517,779

)

 

 

Mandatory debt amortization included in financing activities

(2,000,000

)

 

(882,000

)

Cash Available for Distribution (CAD)

$

(1,005,387

)

 

$

(1,272,964

)

 

 

 

 

Other Special Items:

 

 

 

Transaction costs

$

337,948

 

 

$

92,293

 

 

 

 

 

Other Cash Flow Information:

 

 

 

Net cash used in investing activities

$

(5,519,635

)

 

$

(53,780

)

Net cash used in financing activities

(2,464,404

)

 

(9,941,070

)

The following table presents a reconciliation of Net Income (Loss), as reported in the Consolidated Statements of Operations, to Adjusted EBITDA:

 

For the Three Months Ended

 

June 30, 2021

 

June 30, 2020

Net Income (Loss)

$

2,427,409

 

 

$

(137,434,433

)

Add:

 

 

 

Loss on impairment and disposal of leased property

 

 

146,537,547

 

Loss on termination of lease

 

 

458,297

 

Gain on extinguishment of debt

 

 

(11,549,968

)

Gain on sale of equipment

 

 

(7,500

)

Transaction costs

337,948

 

 

92,293

 

Depreciation, amortization and ARO accretion expense

3,748,453

 

 

3,662,926

 

Income tax expense (benefit), net

155,596

 

 

(73,827

)

Interest expense, net

3,295,703

 

 

2,920,424

 

Adjusted EBITDA

$

9,965,109

 

 

$

4,605,759

 

 Source: CorEnergy Infrastructure Trust, Inc.


Contacts

CorEnergy Infrastructure Trust, Inc.
Investor Relations
Debbie Hagen or Matt Kreps
877-699-CORR (2677)
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NEW YORK--(BUSINESS WIRE)--Golar LNG Partners LP, an indirect subsidiary of New Fortress Energy Inc. (NASDAQ: NFE), has declared a cash distribution of $0.546875 per unit of 8.75% Series A Cumulative Redeemable Preferred Units for the period from May 15, 2021 through August 13, 2021. This will be payable on August 16, 2021 to all Series A preferred unitholders of record as of August 9, 2021.


About New Fortress Energy Inc.

New Fortress Energy Inc. (NASDAQ: NFE) is a global energy infrastructure company founded to help accelerate the world’s transition to clean energy. The company funds, builds and operates natural gas infrastructure and logistics to rapidly deliver fully integrated, turnkey energy solutions that enable economic growth, enhance environmental stewardship and transform local industries and communities.


Contacts

IR:
Joshua Kane
(516) 268-7455
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Media:
Jake Suski
(516) 268-7403
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LITTLE ROCK, Ark. & PASO ROBLES, Calif.--(BUSINESS WIRE)--Montrose Environmental Group, Inc. (“Montrose”) (NYSE: MEG) today announced the acquisition of SensibleIoT, LLC (“Sensible”), an IoT (“Internet of Things”) and software platform that interfaces with multiple air, water and soil data sources to provide an integrated environmental solution with advanced data analytics capabilities. Terms of the transaction were not disclosed.


Founded in 2018 by Charles Beach, Sensible has helped private and public sector clients visualize, calibrate and interact with data to develop meaningful environmental insights.

“In combining Montrose’s environmental solutions with Sensible’s platform, we are able to offer further integrated services and data analytics that will help our clients meet their environmental goals,” said Jose Revuelta, Chief Strategy Officer of Montrose Environmental Group. “Charles has been successful in working with various public-private partnerships, such as the City of Denver’s Love My Air initiative, and he has developed several cutting-edge environmental solutions for many of our clients. The application of technology and software to the environmental industry is core to our strategy, and we are excited to have Charles on our team so we can further our mission of helping protect the air we breathe, the water we drink and the soil that feeds us.”

About Montrose

Montrose is a leading environmental solutions company focused on supporting commercial and government organizations as they deal with the challenges of today, and prepare for what’s coming tomorrow. With more than 2,000 employees across over 70 locations around the world, Montrose combines deep local knowledge with an integrated approach to design, engineering, and operations, enabling the Company to respond effectively and efficiently to the unique requirements of each project. From comprehensive air measurement and laboratory services to regulatory compliance, emergency response, permitting, engineering, and remediation, Montrose delivers innovative and practical solutions that keep its clients on top of their immediate needs – and well ahead of the strategic curve. For more information, visit www.montrose-env.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may be identified by the use of words such as “intend,” “expect”, and “may”, and other similar expressions that predict or indicate future events or that are not statements of historical matters. Forward-looking statements are based on current information available at the time the statements are made and on management’s reasonable belief or expectations with respect to future events, and are subject to risks and uncertainties, many of which are beyond the Company’s control, that could cause actual performance or results to differ materially from the belief or expectations expressed in or suggested by the forward-looking statements. Further, many of these factors are, and may continue to be, amplified by the COVID-19 pandemic. Additional factors or events that could cause actual results to differ may also emerge from time to time, and it is not possible for the Company to predict all of them. Forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to update any forward-looking statement to reflect future events, developments or otherwise, except as may be required by applicable law. Investors are referred to the Company’s filings with the Securities and Exchange Commission for additional information regarding the risks and uncertainties that may cause actual results to differ materially from those expressed in any forward-looking statement.


Contacts

Investor Relations:
Rodny Nacier
(949) 988-3383
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Media Relations:
Doug Donsky
(646) 677-1844
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SANTA CLARITA, Calif.--(BUSINESS WIRE)--California Resources Corporation (NYSE: CRC), an independent oil and natural gas company committed to energy transition in the sector, today reported second quarter 2021 operational and financial results.


“CRC continued to deliver on its strategy with strong second quarter results driven by robust financial and operational performance, resulting in an increase in 2021 free cash flow1 guidance to $400 to $500 million. Given our financial strength and low stock valuation relative to fundamentals, we are increasing our Share Repurchase Program from $150 million to $250 million," said Mac McFarland, President and Chief Executive Officer. "I am also pleased to announce an acquisition of the 90% working interest in the joint venture wells held by our partner as well as a planned divestiture of our non-core Ventura operations. These strategic A&D transactions will simplify our business model, lower our overall operating costs and provide positive net cash proceeds."

Mr. McFarland continued, "We continued to make strides on our ESG strategy and are pleased to announce we have identified approximately one billion metric tons of CO2 permanent storage capacity as well as up to 1,000 megawatts (MW) of front-of-the-meter solar opportunities which will help contribute to the decarbonization of California. As a first step, we are submitting permits for an ~40 million metric ton permanent storage CCS project, Carbon TerraVault I. Further, we are advancing arrangements with SunPower for an initial 12 MW and up to 45 MW of behind-the-meter solar projects.

"I'm also excited to announce the appointment of Nicole Neeman Brady to our Board and look forward to her contributions, particularly on the Sustainability Committee."

Second Quarter 2021 Highlights

Financial

  • Reported a net loss attributable to common stock of $111 million, or $1.34 per diluted share. Adjusted net income1 was $78 million, or $0.94 per diluted share
  • Generated net cash provided by operating activities of $127 million, adjusted EBITDAX1 of $169 million and free cash flow1 of $77 million
  • Closed the quarter with $151 million of cash on hand, an undrawn credit facility and $518 million of liquidity2
  • Sustained non-energy operating costs and general and administrative (G&A) expense improvements achieved earlier in 2021

Operational

  • Produced an average of 101,000 net barrels of oil equivalent (BOE) per day, including 61,000 barrels per day of oil, with quarterly capital expenditures of $50 million
  • Operated two drilling rigs in the San Joaquin Basin and drilled 21 wells (21 online in 2Q21)
  • Operated 35 maintenance rigs
  • Completed 48 capital workovers

Transactional

  • Signed agreements to divest operations in the Ventura basin for total cash consideration of up to $102 million plus additional earn-out consideration that is linked to future commodity prices
  • Post quarter end, acquired the working interest in the joint venture wells held by Macquarie Infrastructure and Real Assets, Inc. (“MIRA”) for $53 million
  • Post quarter end, filing permits for an ~40 MMT CO2 permanent storage CCS project, Carbon TerraVault I
  • Advancing a 12 MW behind-the-meter solar project with SunPower for CRC's Mt. Poso field which is expected to be Low Carbon Fuel Standard ("LCFS") eligible; construction is expected to begin in early 2022

Guidance

  • Raised 2021 free cash flow1 guidance to $400 to $500 million
  • Optimized CRC investment dollars by shifting an additional $20 million from drilling and completions to downhole maintenance projects which provide efficiencies and faster payouts
  • Raised the Share Repurchase Program ("SRP") to $250 million from $150 million; repurchased 1.4 million shares for $45 million in 2Q21

2021 Guidance & Capital Program

Given the strength of the second quarter results, CRC has raised its full year 2021 free cash flow1 guidance to $400 to $500 million from $250 to $350 million, adjusted EBITDAX1 guidance to $725 to $825 million from $625 to $725 million and production guidance to 97 to 100 MBOE per day from 96 to 99 MBOE per day. Recognizing capital efficiency improvements and faster payouts on downhole maintenance projects, CRC revised its full year 2021 operating cost and capital guidance by shifting an additional $20 million of drilling capital to these opportunities. In addition to this shift from capital to operating costs, an increase in natural gas prices further raises expected operating costs by approximately $35 million, which is more than offset by increased natural gas revenues as CRC is net long natural gas on the whole. These two items result in revised full year 2021 capital guidance of $170 to $190 million from $185 to $210 million and revised full year 2021 operating cost guidance of $670 to $695 million from $615 to $630 million.

CRC made $77 million of capital investments in the first half of 2021. The current capital program anticipates that CRC will maintain a consistent level of investment throughout the remainder of the year. If commodity prices decline significantly from current levels. CRC may need to decrease the size of its capital program in response to market conditions. The Company's capital program will be dynamic in response to oil market volatility while focusing on maintaining its oil production, strong liquidity and maximizing its free cash flow.

 

 

 

 

 

 

 

Prior

 

Revised

2021E TOTAL YEAR GUIDANCE

 

Total Year 2021E

 

Total Year 2021E

 

 

 

 

 

Total Production (Mboe/d)

 

96 - 99

 

97 - 100

Oil Production (Mbbl/d)

 

60 - 62

 

60 - 62

Operating Costs ($ millions)

 

$615 - $630

 

$670 - $695

General and administrative expenses ($ millions)

 

$180 - $190

 

$180 - $190

Capital ($ millions)

 

$185 - $210

 

$170 - $190

Adj. EBITDAX1 ($ millions)

 

$625 - $725

 

$725 - $825

Free cash flow1 ($ millions)

 

$250 - $350

 

$400 - $500

Increasing the Share Repurchase Program

In August 2021, CRC's Board of Directors increased the Share Repurchase Program by $100 million to $250 million through March 31, 2022.

Acquisitions and Divestitures

In the second quarter of 2021, CRC entered into agreements to sell its Ventura basin operations for expected cash consideration of up to $102 million plus additional earn-out consideration that is linked to future commodity prices. The consideration includes $82 million of cash to be paid at closing and up to $20 million of potential additional consideration if the buyer does not perform certain abandonment obligations with respect to the divested properties. These transactions will simplify CRC's business model, lower its overall operating costs and decrease its asset retirement obligations. For the three months ending June 30, 2021, CRC's Ventura basin operations were producing 3,600 BOE per day (~65% oil). The closing of the transaction is subject to customary closing conditions, including satisfaction of land and environmental due diligence and third-party consents.

In August 2021, CRC continued to demonstrate its focus on core areas by acquiring the 90% working interest in the joint venture wells held by MIRA for $53 million, before transaction costs. The acquisition of MIRA’s working interest would have added oil production of 1,600 BOE per day (~100% oil) for the first half of 2021 with minimal integration costs and underground risk.

CRC’s full year guidance will be updated upon the closing of the Ventura basin transactions which are expected in the second half of 2021.

Sustainability Update

According to internal and third party estimates, CRC has some of the lowest carbon intensity production in the U.S. CRC aims to build upon this position through investment in decarbonization projects and other emissions reducing projects to help advance energy transition in California. As part of an initial review, CRC has the potential to permanently store up to 1 billion metric tons of CO2 in its oil and gas reservoirs as well as the opportunity to generate 300 to 1,000 MW of front-of-the-meter solar power for the grid by utilizing CRC's vast surface land footprint. In addition to these opportunities, CRC has the potential for up to 45 MW of behind-the-meter solar development projects with its partner SunPower.

Building on CRC's carbon capture opportunity, CRC is applying for Class VI EPA permits for a project with a capability of up to 40 million metric tons of permanent CO2 storage, referred to as Carbon TerraVault I. Injection for this project could begin in the 2025 time frame with the injection of approximately 1 million metric tons per year, equivalent to the annual emissions of approximately 200,000 passenger vehicles. CRC is proud to be a first mover of CCS operations in California and to help the state make progress on its carbon neutrality goals.

CRC has a dedicated Sustainability Committee chaired by William B. Roby, with members Nicole Neeman Brady and Andrew B. Bremner along with a dedicated corporate function under the executive leadership of Chris Gould as EVP and Chief Sustainability Officer.

Board Enhancement

On August 5, 2021, CRC's Board of Directors elected one new Board member, Nicole Neeman Brady.

Ms. Neeman Brady has over 20 years of experience as an entrepreneur, executive, investor and community leader with global water, energy, and agricultural expertise. She serves as the Chief Executive Officer and a director of Sustainable Development Acquisition Corp. since December 2020. She also served as Principal and Chief Operating Officer at Renewable Resources Group LLC, as well as a member of the Investment Committee and a board member of several of its portfolio companies. Her experience also includes a deep understanding of and passion for the public sector, including board service on the Colorado River Board of California and currently, as a Commissioner on the Los Angeles Department of Water and Power, a Board member of Blue Ocean Mariculture and a Board member of the Library Foundation of Los Angeles. Please see www.crc.com for more details.

Fresh Start Accounting and Predecessor and Successor Periods

CRC qualified and adopted fresh start accounting upon emergence from bankruptcy on October 27, 2020, at which point CRC became a new entity for financial reporting purposes. CRC adopted an accounting convenience date of October 31, 2020 for the application of fresh start accounting. As a result of the application of fresh start accounting and the effects of the implementation of the joint plan of reorganization, the financial statements after October 31, 2020 may not be comparable to the financial statements prior to that date. Accordingly, “black-line” financial statements are presented to distinguish between the Predecessor and Successor companies. References to "Predecessor” refer to the Company for periods ended on or prior to October 31, 2020 and references to “Successor” refer to the Company for periods subsequent to October 31, 2020.

Second Quarter 2021 Results

 

Successor

Predecessor

 

2nd Quarter

2nd Quarter

($ and shares in millions, except per share amounts)

2021

2020

 

 

 

Statements of Operations:

 

 

Revenues

 

 

Total revenues

$

304

 

$

276

 

 

 

 

Costs

 

 

Total costs

394

 

391

 

Operating Loss

$

(90

)

$

(115

)

Net Loss Attributable to Common Stock

$

(111

)

$

(271

)

 

 

 

Net loss attributable to common stock per share - basic and diluted

$

(1.34

)

$

(5.47

)

Adjusted net income (loss)

$

78

 

$

(202

)

Adjusted net income (loss) per share - basic

$

0.94

 

$

(4.08

)

Weighted-average common shares outstanding - basic

83.1

 

49.5

 

Adjusted EBITDAX

$

169

 

$

19

 

 

Successor

Predecessor

 

2nd Quarter

2nd Quarter

($ in millions)

2021

2020

Cash Flow Data:

 

 

Net cash provided by operating activities

$

127

 

$

(135

)

Net cash used in investing activities

$

(43

)

$

(15

)

Net cash (used in) provided by financing activities

$

(63

)

$

199

 

Six-Month 2021 Results

 

Successor

Predecessor

 

Six Months

Six Months

($ and shares in millions, except per share amounts)

2021

2020

 

 

 

Statements of Operations:

 

 

Revenues

 

 

Total revenues

$

667

 

$

849

 

 

 

 

Costs

 

 

Total costs

830

 

2,613

 

Operating Loss

$

(163

)

$

(1,764

)

Net Loss Attributable to Common Stock

$

(205

)

$

(2,067

)

 

 

 

Net loss attributable to common stock per share - basic and diluted

$

(2.46

)

$

(41.84

)

Adjusted net income (loss)

$

180

 

$

(210

)

Adjusted net income (loss) per share - basic

$

2.16

 

$

(4.25

)

Weighted-average common shares outstanding - basic

83.2

 

49.4

 

Adjusted EBITDAX

$

358

 

$

270

 

 

Successor

Predecessor

 

Six Months

Six Months

($ in millions)

2021

2020

Cash Flow Data:

 

 

Net cash provided by operating activities

$

274

 

$

93

 

Net cash used by investing activities

$

(63

)

$

(27

)

Net cash (used) provided by financing activities

$

(88

)

$

43

 

Review of Operating and Financial Results

Total daily net production volumes decreased 10% from 112,000 BOE per day for the second quarter of 2020 to 101,000 BOE per day for the second quarter of 2021. The decrease from the same period in 2020 was primarily due to limited drilling activity and capital investment during the prior twelve months and natural decline rates. Total daily net production volumes decreased 15% from 117,000 BOE per day for the six months ended June 30, 2020 to 100,000 BOE per day for the same period in 2021. Production sharing type contracts (PSC-type) at CRC's Long Beach assets negatively impacted oil production by approximately 5,000 and 4,000 barrels per day in the three and six months ended June 30, 2021, respectively, compared to the same prior-year period. See Attachment 3 for further information on production.

Realized oil prices, including the effect of settled hedges, increased by $23.28 per barrel from $30.82 per barrel in the second quarter of 2020 to $54.10 per barrel in the second quarter of 2021. For the six months ended June 30, 2021, realized oil prices, including the effect of settled hedges, increased by $10.15 to $53.91 from $43.76 in the same period of 2020. Realized oil prices were higher in the second quarter of 2021 compared to the same prior-year period as oil demand recovered from its COVID-19 driven lows. See Attachment 4 for further information on prices.

Adjusted EBITDAX1 for the second quarter of 2021 was $169 million and net cash provided by operating activities was $127 million. Internally funded capital invested during the second quarter of 2021 was $50 million. Free cash flow1 was $77 million. Adjusted EBITDAX1 for the six months ended June 30, 2021 was $358 million and net cash provided by operating activities was $274 million. For the first half of 2021, internally funded capital invested was $77 million. Free cash flow1 was $197 million.

FREE CASH FLOW

 

 

 

 

 

Management uses free cash flow, which is defined by us as net cash provided by operating activities less capital investments, as a measure of liquidity. The following table presents a reconciliation of our net cash provided by operating activities to free cash flow. We have excluded one-time costs for bankruptcy related fees during 2021 and 2020 as a supplemental measure of free cash flow.

 

 

 

 

 

 

Successor

Predecessor

Successor

Predecessor

 

2nd Quarter

2nd Quarter

Six Months

Six Months

($ millions)

2021

2020

2021

2020

 

 

 

 

 

Net cash provided by operating activities

$

127

 

$

(135

)

$

274

 

$

93

 

Capital investments

(50

)

(3

)

(77

)

(33

)

Free cash flow

77

 

(138

)

197

 

60

 

One-time bankruptcy related fees

2

 

42

 

4

 

47

 

Free cash flow, after special items

$

79

 

$

(96

)

$

201

 

$

107

 

Operating costs for the second quarter of 2021 were $169 million compared to $127 million for the second quarter of 2020. Operating costs for the six months ended June 30, 2021 were $333 million compared to $319 million for the same period in 2020. The increase was primarily attributable to higher downhole maintenance activity in 2021 which was deferred in 2020 as CRC shut-in wells. Additionally, operating costs increased in 2021 due to higher energy costs and natural gas prices as compared to 2020. Partially offsetting these increases were lower compensation-related costs from streamlining CRC's operations, which included headcount reductions in late 2020 and early 2021. CRC's second quarter 2020 reflect cost savings for reduced work hours and reduced management salaries in response to the industry downturn and the COVID-19 pandemic. Although higher natural gas and electricity prices in 2021 increased CRC's operating costs, higher prices have a net positive effect on operating results due to higher revenue from sales of these commodities which CRC also produces.

Operating costs per BOE are presented below:

OPERATING COSTS PER BOE

 

 

 

   

 

   

 

   

 

The reporting of our PSC-type contracts creates a difference between reported operating costs, which are for the full field, and reported volumes, which are only our net share, inflating the per barrel operating costs. The following table presents operating costs after adjusting for the excess costs attributable to PSC-type contracts.

 

 

 

   

 

   

 

   

 

 

 

Successor

   

Predecessor

   

Successor

   

Predecessor

 

 

2nd Quarter

   

2nd Quarter

   

Six Months

   

Six Months

($ per Boe)

 

2021

   

2020

   

2021

   

2020

Energy operating costs (a)

 

$

4.70

 

   

$

3.51

 

   

$

4.70

 

   

$

3.61

 

Gas processing costs

 

0.66

 

   

0.46

 

   

0.60

 

   

$

0.57

 

Non-energy operating costs (b)

 

13.12

 

   

8.45

 

   

13.10

 

   

10.81

 

Operating costs

 

$

18.48

 

   

$

12.42

 

   

$

18.40

 

   

$

14.99

 

Excess costs attributable to PSC-type contracts

 

(1.73

)

   

(0.42

)

   

(1.66

)

   

(0.66

)

Operating costs, excluding effects of PSC-type contracts

 

$

16.75

 

   

$

12.00

 

   

$

16.74

 

   

$

14.33

 

(a) Energy operating costs include purchases of fuel gas used to generate electricity, purchased electricity and internal costs to produce electricity used in our operations.

(b) Non-energy operating costs equal total operating costs less energy operating costs and gas processing costs. Purchases of fuel gas to generate steam which is then used in our steamfloods is included in non-energy operating costs.

G&A expenses were $48 million for the second quarter of 2021, compared to $69 million in the same prior-year period. For the six months ended June 30, 2021, G&A expenses were $96 million compared to $129 million in the same prior-year period. The decrease in G&A expenses reflects lower compensation-related costs primarily due to workforce reductions that occurred in the second half of 2020 and the first quarter of 2021 as well as benefit reductions in the second quarter of 2021. CRC's second quarter 2020 results include savings from reduced work hours and reduced management salaries in response to the industry downturn and the COVID-19 pandemic. The remaining decrease between comparative periods was primarily due to cost saving efforts which resulted in lower spend across a number of cost categories. The decrease was partially offset by stock-based compensation expense related to awards granted to executives and directors in 2021.

Balance Sheet and Liquidity Update

CRC's aggregate commitment under the Revolving Credit Facility was $492 million as of June 30, 2021. The borrowing base for the Revolving Credit Facility is redetermined around April and October of each year and was most recently set at $1.2 billion in May 2021. The amount CRC is able to borrow under the Revolving Credit Facility is limited to the amount of the commitment described above.

In May 2021, CRC amended its Revolving Credit Facility to provide further strategic flexibility with respect to CRC's minimum and maximum hedging restrictions and to increase CRC's capacity to make certain restricted payments, including paying dividends on its common stock and repurchasing its common stock.

As of June 30, 2021, CRC had liquidity of $518 million, which consisted of $151 million in unrestricted cash and $367 million of available borrowing capacity under its Revolving Credit Facility after accounting for $125 million in outstanding letters of credit.

CRC anticipates the preferred interest in a development joint venture held by Benefit Street Partners ("BSP") could be automatically redeemed in the second half of 2021. We anticipate the remaining distributions to BSP will approximate $20 million.

CRC may begin paying income taxes in early 2022 if Brent prices remain at current levels for a sustained period. CRC's tax paying status depends on a number of factors, including but not limited to, the amount and type of CRC's capital spend, cost structure and activity levels. Potential legislation could also limit tax incentives for fossil fuels.

Operational Update

During the second quarter of 2021, CRC operated an average of two drilling rigs in the San Joaquin Basin, drilled 21 net wells, 19 of which were brought online in addition to the two that were brought online from the first quarter totaling 21 online wells. The San Joaquin basin produced 74,500 net BOE per day. The Los Angeles basin produced 19,200 net BOE per day, the Ventura basin produced 3,600 net BOE per day and the Sacramento basin produced 3,300 net BOE per day.

September 2021 Investor Conferences

CRC's executives will be participating in the Barclays CEO Energy-Power Conference on September 8-10. Mac McFarland, President and CEO, and Francisco Leon, EVP and CFO, will also be presenting on September 10th at 10:55 a.m. ET.

CRC’s presentation materials will be available the day of the event on the Earnings and Presentations page in the Investor Relations section on www.crc.com.

Conference Call Details

To participate in the conference call scheduled for later today at 5:00 p.m. Eastern Time, please dial (877) 328-5505 (International calls please dial +1 (412) 317-5421) or access via webcast at www.crc.com 15 minutes prior to the scheduled start time to register. Participants may also pre-register for the conference call at https://dpregister.com/sreg/10157220/e9185e9690. A digital replay of the conference call will be archived for approximately 90 days and supplemental slides for the conference call will be available online in the Investor Relations section of www.crc.com.

1 See Attachment 2 for the non-GAAP financial measures of adjusted EBITDAX, operating costs per BOE (excluding effects of PSC-type contracts), adjusted net income (loss) and free cash flow, including reconciliations to their most directly comparable GAAP measure, where applicable. For the full year 2021 estimates of the non-GAAP measures of adjusted EBITDAX and free cash flow, including reconciliations to their most directly comparable GAAP measure, see Attachment 7.
2 Calculated as $151 million of cash plus $492 million of capacity on CRC's Revolving Credit Facility less $125 million in outstanding letters of credit.

About California Resources Corporation

California Resources Corporation (CRC) is an independent oil and natural gas company committed to energy transition in the sector. CRC has some of the lowest carbon intensity production in the U.S. and we are focused on maximizing the value of our land, mineral and technical resources for decarbonization by developing Carbon Capture and Sequestration (CCS) and other emissions reducing projects. For more information about CRC, please visit www.crc.com.

Forward-Looking Statements

The information included herein contains forward-looking statements that involve risks and uncertainties that could materially affect CRC's expected results of operations, liquidity, cash flows and business prospects. Such statements include those regarding CRC's expectations as to its future:

  • financial position, liquidity, cash flows and results of operations
  • business prospects
  • transactions and projects
  • operating costs and general and administrative expenses
  • operations and operational results including production, hedging and capital investment
  • budgets and maintenance capital requirements
  • reserves and reservoir characteristics
  • type curves
  • expected synergies fro

Contacts

Joanna Park (Investor Relations)
818-661-3731
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Richard Venn (Media)
818-661-6014
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Official start of delivery of Muskrat Falls block of energy to Nova Scotia marks key milestone in the Maritime Link project.


HALIFAX, Nova Scotia--(BUSINESS WIRE)--NSP Maritime Link Inc. (NSPML) announced today that Nalcor Energy will commence delivery of the ‘Nova Scotia Block’ of clean energy from the Muskrat Falls hydroelectric project through the Maritime Link transmission system to Nova Scotia by August 15, 2021.

"We constructed the Maritime Link transmission project as part of a long-term vision for a regional energy transition,” said Rick Janega, Emera’s Chief Operating Officer, Canada and Caribbean. “This transformative project will deliver clean, renewable energy to customers for generations to come and it is the first step in the regional transmission interconnections that will move us toward achieving net zero CO2 emissions by 2050 in Nova Scotia.”

“We are committed to delivering cleaner and reliable energy that is affordable to our customers and this is an important step in our transition away from coal,” says NS Power President & CEO, Peter Gregg. “With the arrival of the NS Block, we are on track to generate approximately 60% of our electricity from renewable sources by 2022 and this will help us achieve our shared goal of 80% renewable by 2030.”

The Maritime Link project was completed on time and within budget. The Link is a 500-megawatt transmission system comprised of overland and subsea components and includes the longest submarine electricity connection in North America, running from Cape Ray, Newfoundland & Labrador to Point Aconi, Nova Scotia. Construction of the project received regulatory approval in 2013 and was completed in 2017, with the transmission system placed into service in January 2018.

“Given its size and scope, we could never have reached this goal without the hard work, commitment and collaboration of our many partners and stakeholders,” continued Janega. “We have many people to thank for ensuring we delivered this project’s value to the region, including our Indigenous partners, Nalcor, the federal government, the provincial governments in Newfoundland and Labrador and Nova Scotia, our many local, regional and national stakeholders, and our team of employees, contractors and suppliers.”

With delivery of the Nova Scotia Block of energy scheduled to begin, NSPML will file its final Project Capital Cost application with the Nova Scotia Utility and Review Board (NSUARB) today.

Forward Looking Information

This news release contains forward-looking information within the meaning of applicable securities laws. By its nature, forward-looking information requires Emera to make assumptions and is subject to inherent risks and uncertainties. These statements reflect Emera management’s current beliefs and are based on information currently available to Emera management. There is a risk that predictions, forecasts, conclusions and projections that constitute forward-looking information will not prove to be accurate, that Emera’s assumptions may not be correct and that actual results may differ materially from such forward-looking information. Additional detailed information about these assumptions, risks and uncertainties is included in Emera’s securities regulatory filings, including under the heading “Business Risks and Risk Management” in Emera’s annual Management’s Discussion and Analysis, and under the heading “Principal Risks and Uncertainties” in the notes to Emera’s annual and interim financial statements, which can be found on SEDAR at www.sedar.com.

About the Maritime Link Project

The Maritime Link is a 500 MW high voltage direct current (HVdc) transmission interconnection. The Project includes two 170 km subsea cables across the Cabot Strait, with almost 50 km of overland transmission in Nova Scotia and more than 300 km of overland transmission on the island of Newfoundland.

About Emera

Emera Inc. is a geographically diverse energy and services company headquartered in Halifax, Nova Scotia, with approximately $31 billion in assets and 2020 revenues of more than $5.5 billion. The company primarily invests in regulated electricity generation and electricity and gas transmission and distribution with a strategic focus on transformation from high carbon to low carbon energy sources. Emera has investments throughout North America, and in four Caribbean countries. Emera’s common and preferred shares are listed on the Toronto Stock Exchange and trade respectively under the symbol EMA, EMA.PR.A, EMA.PR.B, EMA.PR.C, EMA.PR.E, EMA.PR.F and EMA.PR.H. Depositary receipts representing common shares of Emera are listed on the Barbados Stock Exchange under the symbol EMABDR and on The Bahamas International Securities Exchange under the symbol EMAB. Additional Information can be accessed at www.emera.com or at www.sedar.com.


Contacts

Media contact
Jennifer Parker
(902) 222-3601
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RICHMOND, Va.--(BUSINESS WIRE)--The Board of Directors of NewMarket Corporation (NYSE: NEU) declared a quarterly dividend in the amount of $2.10 per share on the common stock of the Corporation. The dividend is payable October 01, 2021 to NewMarket shareholders of record at the close of business on September 15, 2021.

NewMarket Corporation, through its subsidiaries Afton Chemical Corporation and Ethyl Corporation, develops, manufactures, blends, and delivers chemical additives that enhance the performance of petroleum products. From custom-formulated additive packages to market-general additives, the NewMarket family of companies provides the world with the technology to make engines run smoother, machines last longer, and fuels burn cleaner.

Some of the information contained in this press release constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although NewMarket’s management believes its expectations are based on reasonable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that actual results will not differ materially from expectations.

Factors that could cause actual results to differ materially from expectations include, but are not limited to, the availability of raw materials and distribution systems; disruptions at production facilities, including single-sourced facilities; hazards common to chemical businesses; the ability to respond effectively to technological changes in our industry; failure to protect our intellectual property rights; sudden or sharp raw material price increases; competition from other manufacturers; current and future governmental regulations; the gain or loss of significant customers; failure to attract and retain a highly-qualified workforce; an information technology system failure or security breach; the occurrence or threat of extraordinary events, including natural disasters, terrorist attacks, and health-related epidemics such as the COVID-19 pandemic; risks related to operating outside of the United States; political, economic, and regulatory factors concerning our products; the impact of substantial indebtedness on our operational and financial flexibility; the impact of fluctuations in foreign exchange rates; resolution of environmental liabilities or legal proceedings; limitation of our insurance coverage; our inability to realize expected benefits from investment in our infrastructure or from recent or future acquisitions, or our inability to successfully integrate recent or future acquisitions into our business; the underperformance of our pension assets resulting in additional cash contributions to our pension plans; and other factors detailed from time to time in the reports that NewMarket files with the Securities and Exchange Commission, including the risk factors in Item 1A. “Risk Factors” of our 2020 Annual Report on Form 10-K, which is available to shareholders upon request.

You should keep in mind that any forward-looking statement made by NewMarket in the foregoing discussion speaks only as of the date on which such forward-looking statement is made. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect the Company. We have no duty to, and do not intend to, update or revise the forward-looking statements in this discussion after the date hereof, except as may be required by law. In light of these risks and uncertainties, you should keep in mind that the events described in any forward-looking statement made in this discussion, or elsewhere, might not occur.


Contacts

Brian D. Paliotti
Investor Relations
Phone: 804.788.5555
Fax: 804.788.5688

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Sustainable grid solutions reduce costs by 65% and support the delivery of low-cost, renewable power

PITTSBURGH--(BUSINESS WIRE)--Emerson (NYSE: EMR) today announced the completion of a digital transformation project to increase the reliability of clean energy generation at Golden Valley Electric Association’s (GVEA) Eva Creek wind farm. The project improves the management of Alaska’s largest wind farm.


Rural Alaskan communities are on the front line of climate change, given the region’s extreme weather. As the largest electric utility serving northern Alaska, GVEA and its Eva Creek wind farm supply nearly 25MW of reliable, low-cost electricity to customers, while reducing fossil fuel usage.

Emerson’s sustainable grid solutions have delivered fast results, increasing the reliability of GVEA’s wind turbines and contributing to a 65% reduction in operations and maintenance costs.

“Emerson is a key collaborator in our goal to increase access to clean energy for our customers in northern Alaska,” said Frank Perkins, GVEA vice president of power supply. “Our investment in a common automation platform helps us efficiently incorporate more renewable energy and minimize our carbon footprint.”

Emerson’s solutions simplify management of the Eva Creek wind farm and provide more accurate equipment diagnostics and analytics for forecasting and dispatch. The end-to-end solution incorporates Emerson’s Ovation™ automation platform and OSI monarch™ software to expertly help utilities achieve a more resilient, responsible and smarter power grid.

“Increased visibility into Eva Creek operations enables GVEA to further safeguard the reliable operation of this critical source of renewable energy for northern Alaska,” said Bob Yeager, president of Emerson’s power and water solutions business. “With Emerson’s comprehensive portfolio of sustainable grid solutions, GVEA is well positioned to optimize operations across its entire power system, from generation to meter.”

Emerson has been ranked as the leading distributed control systems provider for the global power generation industry, according to Omdia.1

1Omdia, Distributed Control Systems Report, 2020. Market share based on revenue. Results are not an endorsement of Emerson. Any reliance on these results is at the third-party’s own risk.

About Emerson

Emerson (NYSE: EMR), headquartered in St. Louis, Missouri (USA), is a global technology and engineering company providing innovative solutions for customers in industrial, commercial and residential markets. Our Automation Solutions business helps process, hybrid and discrete manufacturers maximize production, protect personnel and the environment while optimizing their energy and operating costs. Our Commercial and Residential Solutions business helps ensure human comfort and health, protect food quality and safety, advance energy efficiency and create sustainable infrastructure. For more information visit Emerson.com.

Additional resources:


Contacts

Emerson
Denise Clarke
512-587-5879
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WINONA, Minn.--(BUSINESS WIRE)--As the commercial trucking industry moves forward in developing alternative fuel equipment, Fastenal is helping to drive innovation. Since early 2020, the supply chain organization has participated in a long-term test program of two battery electric Freightliner eM2 box trucks within its Los Angeles metro area operations. In that same spirit of environmental sustainability and innovation, the company also recently completed a short-term pilot of a pre-series battery electric Class 8 truck, the Freightliner eCascadia.


The participation stemmed from a collaboration between Penske Truck Leasing and Daimler Trucks North America to test commercial electric trucks in real-world situations and drive future improvements to the technology. Fastenal, which supports business partners with last-mile logistics as part of its supply chain management services, has been a valuable test case.

Fastenal has been a tremendous partner in the testing of these electric vehicle (EV) units,” said Paul Rosa, senior vice president of procurement and fleet planning at Penske Truck Leasing. “Their sustainability goals and efforts along with their innovative way of thinking and approaching the future of our industry made them a natural fit to run EVs. We look forward to continuing to work together with Fastenal towards a more sustainable future.”

The program is helping us understand where electric vehicles might fit into our future,” said Dan Florness, Fastenal’s president and CEO. “It also gives us a chance to help accelerate the development of commercial EV technology.”

For over a year, Fastenal has been utilizing the two eM2 box trucks to run daily delivery routes from its Santa Fe Springs trucking terminal to surrounding branches and customer-specific Onsite locations. Together the trucks travel nearly 900 miles per week to service 16 Fastenal locations spanning from Inglewood in the west, to Santa Ana in the south, to Ontario in the east.

The eM2 vehicles have performed well for us,” said Kevin Larson, Fastenal’s VP of transportation. “Our drivers really like the instant torque and performance, and the trucks have proven to be highly reliable over time, with very few downtime days.”

Fastenal was running the eCascadia tractor on a roughly 120-mile daily line haul normally run by a diesel tractor. The vehicle took off from Santa Fe Springs in the morning, headed north to pick up a full trailer in Valencia, then returned to Santa Fe Springs, where the load was broken up into multiple local routes (two of which are run by the eM2s). With the eCascadia test now complete, Penske can continue to focus on program development and Fastenal will continue to be a partner in this space as they work together on more sustainable transportation options.

The Penske and Daimler commercial EV testing program is supported by the South Coast Air Quality Management District (South Coast AQMD), whose $15.7 million grant helped fund the program. South Coast AQMD focuses on improving air quality in large portions of Los Angeles, Orange County, Riverside and San Bernardino counties, including the Coachella Valley.

About Penske Truck Leasing

Penske Truck Leasing is a Penske Transportation Solutions company headquartered in Reading, Pennsylvania. A leading global transportation services provider, Penske Truck Leasing operates more than 349,000 vehicles and serves customers from more than 1,300 locations in North America, South America, Europe, Australia and Asia. Product lines include full-service truck leasing, contract maintenance, commercial and consumer truck rentals, used truck sales, transportation and warehousing management and supply chain management solutions. Visit www.pensketruckleasing.com to learn more.

About Fastenal

Fastenal helps customers simplify and realize product and process savings across their supply chain. We sell a broad offering of products spanning more than nine major product lines – from fasteners and tools to safety and janitorial supplies. These products are efficiently distributed to manufacturing facilities, job sites, and other customer locations through local service teams and point-of-use FMI® (Fastenal Managed Inventory) solutions, including industrial vending technology and bin stock programs. Our distribution system supports over 3,200 in-market locations (a combination of branches and customer-specific Onsite locations), primarily in North America but also in Asia, Europe, and Central and South America, each providing tailored inventory, flexible service, and custom solutions to drive the unique goals of local customers. These in-market servicing locations are supported by sixteen regional distribution centers, a captive logistics fleet, robust sourcing, quality and manufacturing resources, and multiple teams of industry specialists and support personnel – all working toward Fastenal’s common goal of Growth Through Customer Service®.

Additional information regarding Fastenal is available on the Fastenal Company website at www.fastenal.com.

FAST-G


Contacts

Ellen Stolts
Director of Accounting - Reporting and Reconciliation
507.313.7282

LEMONT, Ill.--(BUSINESS WIRE)--As climate change drives more frequent extreme weather events, companies must find ways to adapt and plan for the future. But how can they know how changes in climate will impact their assets and their business strategy? And what can they do to identify and address issues before they affect customers?


The largest state public power entity in the U.S., the New York Power Authority (NYPA), is addressing these challenges by assessing how its ability to generate, transmit and deliver electricity may be affected by climate change. For the first time, NYPA is evaluating its comprehensive climate risk with the help of the U.S. Department of Energy’s (DOE) Argonne National Laboratory. Also in collaboration with the Electric Power Research Institute (EPRI) and the Columbia Center on Global Energy Policy, the study will help NYPA plan investments in its infrastructure and strengthen its resilience against all hazards, including major weather events.

Using state-of-the-art climate and infrastructure system modeling techniques, and a powerful supercomputer, Argonne’s interdisciplinary team of scientists and engineers will determine the risks a changing climate poses to NYPA’s infrastructure and investment strategy.

Argonne’s experts will also develop a climate resiliency plan that will inform how NYPA mitigates any potential risks. By addressing these issues now, NYPA can protect and position its business so it can continue to reliably produce and deliver power to New Yorkers.

“Large power utilities like NYPA need to anticipate and prepare for the possible impacts of extreme weather events to better address and harden our infrastructure and to better inform our business decisions,” said Adrienne Lotto, vice president, chief risk and resilience officer at NYPA. ​

Argonne is a world leader in creating hyperlocal climate model simulation datasets and has the most detailed climate projections available in the U.S. Argonne’s approach uses historical climate data and some of the world’s best climate models to project future climate in a very localized area — down to the size of a neighborhood — up to 50 years in the future.

While most climate models can only look at changes over a large area — typically 100 square kilometers — Argonne’s models assess climate risks at the scale needed for businesses to understand, for example, how specific buildings and equipment could be damaged by flooding or high winds.

To learn more, contact This email address is being protected from spambots. You need JavaScript enabled to view it.. Read the full release here.


Contacts

Christopher J. Kramer
Head of Media Relations
Argonne National Laboratory
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Office: 630.252.5580

HOUSTON--(BUSINESS WIRE)--Geospace Technologies (NASDAQ: GEOS) today announced a net loss of $0.8 million, or $(0.06) per diluted share, on revenue of $23.1 million for its third quarter ended June 30, 2021. This compares with a net loss of $2.3 million, or ($0.17) per diluted share, on revenue of $22.7 million for the third quarter of the prior year period.


For the nine-months ended June 30, 2021, the Company recorded revenue of $75.4 million compared to revenue of $66.3 million during the prior year period. The Company reported a net loss of $9.0 million, or $(0.67) per diluted share compared to a net loss of $15.4 million, or $(1.14) per diluted share for the prior year period.

Walter R. (“Rick”) Wheeler, President and CEO of Geospace Technologies (the “Company”) said, “With all aspirations and best efforts directed toward a global economic recovery from the COVID-19 pandemic, it is encouraging to see that revenue in our third fiscal quarter, ended June 30, 2021, slightly exceeded last year’s third quarter. Even more encouraging, in these first nine months of fiscal year 2021, our combined revenue reflects an increase of almost 14% over last year's similar period. The increases come despite a significant reduction in both periods of revenue received from rentals of our OBX marine nodal recording systems. As previously reported, certain follow-on surveys that intended to utilize our OBX systems were delayed or canceled due to COVID-19 restrictions and lockdowns, leaving these systems underutilized. Notably however, rental revenue in this third quarter more than doubled in comparison to the preceding quarter, providing some indication of OBX demand improving as new projects go forward.”

Wheeler continued, “In opposition to lower revenue from our Oil and Gas Markets segment, revenue from our Adjacent Markets segment represents major year-over-year increases for both the three- and nine-month periods ended June 30, 2021. The respective increases of 84% and 30% for the three- and nine-month periods can be attributed in both periods to a variety of factors, including stronger sales of our smart water meter cables and connectors, higher utilization of our contract manufacturing services, and greater demand for our graphic imaging products. When recovery from the COVID-19 pandemic gains traction, we believe demand for these products will maintain an upward climb. We believe, the steady overall growth exhibited in our Adjacent Markets segment is evidence that our deep-rooted expertise in innovative engineering and manufacturing continues to bring ever-increasing technological value to an expanding market. Our recently announced acquisition of Aquana, LLC further bolsters our commitment to deliver state-of-the-art IoT technology solutions to the diversified, yet highly aligned industry of ‘smart-city’ initiatives. The cloud-based control and data management provided by the Aquana platform helps both water utilities and property managers conserve critical water resources and reduce their costs. Our Quantum Technology Sciences subsidiary, which forms our Emerging Markets segment, contributed $1.1 million to third quarter revenue, bringing the nine-month year-to-date total to $10.0 million. The majority of revenue for both periods is from completion efforts toward the contract awarded to Quantum by the Department of Homeland Security in April of 2020. The contract called for providing the U.S. Border Patrol with a highly effective border and perimeter security solution utilizing our sophisticated sensor-based systems in conjunction with ultra-advanced analytics. Taken together, our Adjacent and Emerging Markets segments combined to generate 45% of revenue in both the three- and nine-month periods ended June 30, 2021.”

Oil and Gas Markets Segment

The Company’s Oil and Gas Markets segment generated $12.6 million in revenue for the three-months ended June 30, 2021, compared to $17.5 million during the equivalent year ago period, a decrease of 27.8%. For the nine-month period ended June 30, 2021, revenue from this segment totaled $41.5 million compared to $47.5 million during the equivalent year-ago period, a decrease of 12.5%. The decreases for both periods are the result of reduced rentals of the Company’s wireless OBX nodal marine systems and reduced demand for our traditional marine products. The three-month period decrease of revenue is partially offset by a $2.9 million sale of the Company’s land-based wireless seismic products. The nine-month period’s decrease is partially offset by the recognition of revenue from the sale of a $12.5 million land-based wireless recording system, delivered to a customer one year ago, a $9.9 million sale of used OBX rental equipment to the former lessee of the equipment and a $2.9 million third quarter sale of the Company’s land-based wireless seismic products.

For the three- and nine-month periods ended June 30, 2021, the Company’s traditional seismic products generated $2.0 million and $3.7 million respectively, reflecting a 66.8% increase for the three-month period and a 32.7% decrease for the nine-month period one year ago. The Company does not believe the increase in revenue for the three-months period ending June 30, 2021, is necessarily a sign of recovery of demand for these products. Demand for the Company’s traditional seismic products for the nine-month period declined due to reductions in seismic exploration by oil and gas companies. The reduction of demand for oil and gas is a consequence of the impacts from COVID-19 on travel and overall economic activity that continues to negatively affect demand for these products.

For the three- and nine-month periods ended June 30, 2021, the Company’s wireless seismic products generated revenue of $9.6 million and $36.1 million respectively. These figures represent a respective decrease of 40.1% and 12.0% when compared to $16.1 million and $41.1 million for the equivalent three- and nine-month periods a year ago. Reduction in revenue for the recent three- and nine-month periods are both due to lower utilization of our OBX rental fleet caused by effects from the COVID-19 pandemic. Offsetting the reduction for the three-month period is a $2.9 million sale of land-based wireless seismic products. The reduction in revenue for the nine-month period is largely offset by the recognition of $12.5 million of revenue related to land-based wireless seismic products delivered to a customer in the prior year, a $9.9 million sale of used OBX rental equipment to the former lessee of the equipment and the $2.9 million third quarter sale of land-based wireless seismic products. The Company believes as worldwide COVID-19 related lockdowns and travel restrictions come to an end, higher levels of utilization of the Company’s OBX rental equipment will be achieved, as planned projects will be resumed or commenced.

For the three- and nine-month periods ended June 30, 2021, the Company’s reservoir seismic products generated revenue of $1.1 million and $1.7 million respectively. This reflects increases of $0.8 million for both periods when compared to the three- and nine-month periods last year. The increase in both periods is due to a higher level of performed engineering services. The Company believes the foremost opportunity for meaningful revenue from these products resides in future contracts for the design, manufacture, and deployment of permanent reservoir monitoring (PRM) systems. The Company is engaged in several discussions at various stages with multiple oil and gas producers regarding PRM systems. The Company believes that increased energy demands, brought on by a global recovery from the COVID-19 pandemic, will help increase demand for oil and gas, and that its PRM systems provide the preeminent tool for oil and gas companies to maximize production from existing assets at lower costs and reduced carbon footprint.

Adjacent Markets Segment

For the three- and nine-month periods ended June 30, 2021, revenue from the Company’s Adjacent Markets segment totaled $9.4 million and $23.9 million respectively. These figures represent an increase of 83.6% and 30.4% respectively when compared with $5.1 million and $18.3 million for the three- and nine-month periods one year ago. The increase in both periods is largely the result of increased sales of the Company’s smart water meter cable and connector products, higher demand for its contract manufacturing services, and increased demand in imaging products. The Company is encouraged by the increased demand for our products but cannot reasonably determine if this marks the beginning of a recovery from the impact of the COVID-19 pandemic for this operating segment.

Emerging Markets Segment

For the three- and nine-month periods ended June 30, 2021, the Company’s Emerging Markets segment generated revenue of $1.1 million and $10.0 million respectively. This compares with $88,000 and $557,000 in the equivalent three- and nine-month periods a year ago. The increase in revenue in both periods with respect to last year is the result of fulfilling much of the contract with the Customs and Border Protection, U.S. Border Patrol. The contract, awarded in April 2020 to the Company’s Quantum subsidiary, provides an advanced technology border and perimeter security solution to the Department of Homeland Security. The Company believes additional contracts will follow as the efficacy and value of its unique seismic acoustic technologies and innovative data analytics are fully deployed and demonstrated. Management further believes its systems are fully aligned and complimentary to the U.S. government’s stated intentions of deploying high technology means and methods to protect U.S. borders.

Balance Sheet and Liquidity

For the nine months ended June 30, 2021, the Company used $7.5 million in cash and cash equivalents from operating activities. The Company used $1.7 million of cash for investment activities that included $10.0 million in proceeds from the sale of used rental equipment and $2.1 million in proceeds from the sale of an investment in a debt security, which were offset by $9.7 million, net, used for the purchase of short-term investments and $4.0 million used for investments to property, plant, and equipment and rental equipment. The Company used $3.6 million in financing activities for purchases of treasury stock pursuant to a stock buyback program authorized by the Company’s Board of Directors. The stock buyback program authorizes the Company to repurchase up to $5.0 million of its common shares in the open market. As of August 4, 2021, the Company has repurchased a total of 553,588 shares for approximately $4.7 million since the adoption of the program. The Company has authorized an additional $2.5 million for the stock buyback program. On June 30, 2021, Geospace had $30.0 million in cash, cash equivalents, and short-term investments compared with $32.7 million on September 30, 2020. In addition, on June 30, 2021, the Company had $17.7 million in available borrowing from its credit agreement with Frost Bank, of which no borrowed amounts were outstanding. Thus, the Company’s total liquidity as of June 30, 2021, was $47.7 million. The Company additionally owns unencumbered property and real estate in both domestic and international locations.

Wheeler concluded, “Recoveries from the effects of the COVID-19 pandemic have made great progress in many parts of the world. However, the emergence of the Delta variant and increasing case numbers in many areas pose some caution to hard optimism. Nonetheless, we are encouraged by the results achieved in the first nine months of the fiscal year. Demand for our OBX systems shows incremental improvement, even though some project opportunities have moved further out in time. In addition, progress has been made in our discussions with major oil and gas producers for Permanent Reservoir Monitoring (PRM) systems, and we believe a tender for a PRM system could be released before the end of our fiscal year. The growing interest of oil and gas producers in using our PRM systems to better manage their fields has never been higher, and the depth of investigative inquiry brought about in these discussions reflects serious opportunities over the next several years. Meanwhile, we continue to expand the growing profile of advanced products and services offered in our Adjacent Markets segment. We believe the integration of Aquana’s innovations with our existing technology catalog creates multiple opportunities for future growth in this segment. And in our Emerging Markets segment, we believe additional contracts will follow for our Quantum subsidiary as the deployed systems for the U.S. Border Patrol begin to demonstrate their profound value. In light of these opportunities, in conjunction with our strong debt-free balance sheet, our outlook on the future remains positive and optimistic.”

Conference Call Information

Geospace Technologies will host a conference call to review its fiscal year 2021 third quarter financial results on August 6, 2021, at 10:00 a.m. Eastern Time (9 a.m. Central). Participants can access the call at (877) 876-9176 (US) or (785) 424-1670 (International). Please reference the conference ID: GEOSQ321 prior to the start of the conference call. A replay will be available for approximately 60 days and may be accessed through the Investor Relations tab of our website at www.geospace.com.

About Geospace Technologies

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

Forward Looking Statements

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

GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share amounts)

(unaudited)

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

June 30, 2021

 

June 30, 2020

 

June 30, 2021

 

June 30, 2020

Revenue:

 

 

 

 

 

 

 

 

Products

 

$

17,679

 

 

$

6,975

 

 

$

66,005

 

 

$

25,575

 

Rental

 

 

5,404

 

 

 

15,728

 

 

 

9,430

 

 

 

40,740

 

Total revenue

 

 

23,083

 

 

 

22,703

 

 

 

75,435

 

 

 

66,315

 

Cost of revenue:

 

 

 

 

 

 

 

 

Products

 

 

12,907

 

 

 

8,660

 

 

 

47,492

 

 

 

28,285

 

Rental

 

 

4,549

 

 

 

5,979

 

 

 

14,744

 

 

 

19,564

 

Total cost of revenue

 

 

17,456

 

 

 

14,639

 

 

 

62,236

 

 

 

47,849

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

5,627

 

 

 

8,064

 

 

 

13,199

 

 

 

18,466

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

Selling, general and administrative

 

 

5,243

 

 

 

5,704

 

 

 

16,075

 

 

 

17,767

 

Research and development

 

 

3,658

 

 

 

4,014

 

 

 

10,943

 

 

 

12,535

 

Change in estimated fair value of contingent consideration

 

 

(795

)

 

 

662

 

 

 

(1,713

)

 

 

1,634

 

Bad debt expense

 

 

(40

)

 

 

248

 

 

 

(32

)

 

 

406

 

Total operating expenses

 

 

8,066

 

 

 

10,628

 

 

 

25,273

 

 

 

32,342

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

 

(2,439

)

 

 

(2,564

)

 

 

(12,074

)

 

 

(13,876

)

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

Interest expense

 

 

 

 

 

(8

)

 

 

 

 

 

(31

)

Interest income

 

 

151

 

 

 

574

 

 

 

1,284

 

 

 

924

 

Gain on investments, net

 

 

1,727

 

 

 

 

 

 

1,996

 

 

 

 

Foreign exchange gains (losses), net

 

 

(49

)

 

 

307

 

 

 

64

 

 

 

283

 

Other, net

 

 

(8

)

 

 

(21

)

 

 

(3

)

 

 

(78

)

Total other income, net

 

 

1,821

 

 

 

852

 

 

 

3,341

 

 

 

1,098

 

 

 

 

 

 

 

 

 

 

Loss before income taxes

 

 

(618

)

 

 

(1,712

)

 

 

(8,733

)

 

 

(12,778

)

Income tax expense

 

 

169

 

 

 

573

 

 

 

288

 

 

 

2,600

 

Net loss

 

$

(787

)

 

$

(2,285

)

 

$

(9,021

)

 

$

(15,378

)

 

 

 

 

 

 

 

 

 

Loss per common share:

 

 

 

 

 

 

 

 

Basic

 

$

(0.06

)

 

$

(0.17

)

 

$

(0.67

)

 

$

(1.14

)

Diluted

 

$

(0.06

)

 

$

(0.17

)

 

$

(0.67

)

 

$

(1.14

)

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

13,353,254

 

 

 

13,545,340

 

 

 

13,464,177

 

 

 

13,517,387

 

Diluted

 

 

13,353,254

 

 

 

13,545,340

 

 

 

13,464,177

 

 

 

13,517,387

 

GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands except share amounts)

(unaudited)

 

 

 

 

 

 

 

 

June 30, 2021

 

 September 30, 2020

 

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

20,070

 

 

$

32,686

 

Short-term investments

 

 

9,900

 

 

 

 

Trade accounts and financing receivables, net

 

 

18,981

 

 

 

13,778

 

Unbilled receivables

 

 

1,561

 

 

 

 

Inventories, net

 

 

15,170

 

 

 

16,933

 

Asset held for sale

 

 

606

 

 

 

587

 

Prepaid expenses and other current assets

 

 

1,951

 

 

 

953

 

Total current assets

 

 

68,239

 

 

 

64,937

 

 

 

 

 

 

Non-current financing receivables

 

 

2,154

 

 

 

 

Non-current inventories, net

 

 

18,151

 

 

 

16,930

 

Rental equipment, net

 

 

41,862

 

 

 

54,317

 

Property, plant and equipment, net

 

 

29,449

 

 

 

29,874

 

Operating right-of-use assets

 

 

1,249

 

 

 

 

Goodwill

 

 

4,337

 

 

 

4,337

 

Other intangible assets, net

 

 

7,032

 

 

 

8,331

 

Deferred cost of revenue and other assets

 

 

238

 

 

 

8,119

 

Total assets

 

$

172,711

 

 

$

186,845

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable trade

 

$

2,973

 

 

$

1,593

 

Contingent consideration

 

 

2,317

 

 

 

 

Operating lease liabilities

 

 

221

 

 

 

 

Deferred revenue and other current liabilities

 

 

8,766

 

 

 

8,753

 

Total current liabilities

 

 

14,277

 

 

 

10,346

 

 

 

 

 

 

Non-current contingent consideration

 

 

6,932

 

 

 

10,962

 

Non-current operating lease liabilities

 

 

1,073

 

 

 

 

Non-current deferred revenue and other liabilities

 

 

26

 

 

 

4,567

 

Total liabilities

 

 

22,308

 

 

 

25,875

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

Preferred stock, 1,000,000 shares authorized, no shares issued and outstanding

 

 

 

 

 

 

Common Stock, $.01 par value, 20,000,000 shares authorized; 13,739,096 and 13,670,639 shares issued, respectively; and 13,315,097 and 13,670,639 shares

 

 

 

 

outstanding, respectively

 

 

137

 

 

 

137

 

Additional paid-in capital

 

 

92,475

 

 

 

90,965

 

Retained earnings

 

 

77,545

 

 

 

86,566

 

Accumulated other comprehensive loss

 

 

(16,166

)

 

 

(16,698

)

Treasury stock, at cost, 423,999 shares at June 30, 2021

 

 

(3,588

)

 

 

 

Total stockholders’ equity

 

 

150,403

 

 

 

160,970

 

Total liabilities and stockholders’ equity

 

$

172,711

 

 

$

186,845

GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

 

 

 

 

 

Nine Months Ended

 

 

June 30, 2021

 

June 30, 2020

Cash flows from operating activities:

 

 

 

 

Net loss

 

$

(9,021

)

 

$

(15,378

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

 

 

 

 

Deferred income tax expense (benefit)

 

 

(3

)

 

 

195

 

Rental equipment depreciation

 

 

11,332

 

 

 

13,643

 

Property, plant and equipment depreciation

 

 

2,956

 

 

 

3,029

 

Amortization of intangible assets

 

 

1,299

 

 

 

1,299

 

Accretion of discounts on short-term investments

 

 

45

 

 

 

 

Stock-based compensation expense

 

 

1,510

 

 

 

1,682

 

Bad debt expense (recovery)

 

 

(32

)

 

 

406

 

Inventory obsolescence expense

 

 

1,702

 

 

 

2,853

 

Change in estimate of collectability of rental revenue

 

 

 

 

 

7,993

 

Change in estimated fair value of contingent consideration

 

 

(1,713

)

 

 

1,634

 

Gross profit from sale of used rental equipment

 

 

(6,546

)

 

 

(698

)

Loss (gain) on disposal of property, plant and equipment

 

 

6

 

 

 

(151

)

Realized gain on sale of investments, net

 

 

(1,996

)

 

 

 

Effects of changes in operating assets and liabilities:

 

 

 

 

Trade accounts and notes receivables

 

 

(4,621

)

 

 

2,059

 

Unbilled receivables

 

 

(1,561

)

 

 

 

Inventories

 

 

(4,920

)

 

 

898

 

Deferred cost of revenue and other assets

 

 

6,756

 

 

 

(8,178

)

Accounts payable trade

 

 

1,372

 

 

 

(1,654

)

Deferred revenue and other liabilities

 

 

(4,080

)

 

 

2,811

 

Net cash provided by (used in) operating activities

 

 

(7,515

)

 

 

12,443

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

Purchase of property, plant and equipment

 

 

(2,451

)

 

 

(2,559

)

Proceeds from the sale of property, plant and equipment

 

 

3

 

 

 

204

 

Investment in rental equipment

 

 

(1,528

)

 

 

(5,448

)

Proceeds from the sale of used rental equipment

 

 

9,994

 

 

 

3,258

 

Purchases of short-term investments

 

 

(10,844

)

 

 

 

Proceeds from the sale of short-term investments

 

 

1,100

 

 

 

 

Proceeds from sale of investment in debt security

 

 

2,069

 

 

 

 

Net cash used in investing activities

 

 

(1,657

)

 

 

(4,545

)

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

Purchase of treasury stock

 

 

(3,588

)

 

 

 

Net cash used in financing activities

 

 

(3,588

)

 

 

 

 

 

 

 

 

Effect of exchange rate changes on cash

 

 

144

 

 

 

(154

)

Decrease in cash and cash equivalents

 

 

(12,616

)

 

 

7,744

 

Cash and cash equivalents, beginning of fiscal year

 

 

32,686

 

 

 

18,925

 

Cash and cash equivalents, end of fiscal period

 

$

20,070

 

 

$

26,669

 

 

 

 

 

 

SUPPLEMENTAL CASH FLOW INFORMATION:

 

 

 

 

Cash paid for interest

 

$

 

 

$

31

 

Cash paid for income taxes

 

 

284

 

 

 

2,454

 

Inventory transferred to rental equipment

 

 

3,777

 

 

 

6,220

 


Contacts

Rick Wheeler
President and CEO
TEL: 713.986.4444
FAX: 713.986.4445


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Company to Contribute $300,000 to Red Cross for Shelter Activations and Other Services for Displaced, Impacted Residents

SAN FRANCISCO--(BUSINESS WIRE)--As drought-fueled wildfires continue to burn across several western states including California, the American Red Cross is deploying volunteers and opening shelters to provide services to displaced and impacted residents and communities. Pacific Gas and Electric Company (PG&E) is continuing its longtime partnership with the Red Cross, providing $750,000 to the organization for emergency preparedness and disaster response. As part of this contribution, $300,000 will support wildfire relief and recovery efforts in PG&E’s service area this fire season, including current wildfire response in Butte, Lassen, Nevada, Placer, Plumas and Trinity counties.

“Responding to disasters is a team effort and no single organization can do it alone,” said Jennifer Adrio, Regional CEO for the American Red Cross Northern California Coastal Region. “That’s why our partnership with PG&E is so vitally important. As part of the world’s largest humanitarian organization, the Red Cross has the unique ability to utilize PG&E’s generous donation to reach more people in need, more quickly.”

In addition to the funding for Red Cross services for wildfire evacuees, PG&E is also contributing $50,000 to support local nonprofit relief efforts. This includes $5,000 in support of Lost Sierra Food Project in Plumas County, where some evacuated residents are beginning to return home; and $10,000 in support of the Almanor Foundation Wildfire Relief Fund, which is providing emergency relief and support through grants to nonprofits and agencies, primarily for residents impacted by wildfires.

“Our hearts are with every member of our communities who has lost their home or business to wildfire in recent days, and with those who have had to evacuate their homes for safety. As this wildfire season continues to test us all, we are so grateful for the American Red Cross and its compassionate volunteers who provide the basic needs of food and shelter to our neighbors in their time of need. We are so thankful for the many nonprofit organizations and volunteers who work tirelessly to care for those impacted by wildfires,” said PG&E Corporation Chief Executive Officer Patti Poppe.

These charitable donations will come from PG&E shareholders, not PG&E customers.

How You Can Help

Financial gifts of any amount support the Red Cross mission to help people affected by disasters big and small. Donations for wildfire relief help the Red Cross to shelter families, serve meals, support emergency responders, deliver relief supplies, provide medical care, and create recovery plans. To support current or ongoing wildfire relief and recovery efforts in California, donors can contribute online here, or send checks to the Red Cross designated to “Western Wildfires.”

PG&E’s partnership with the Red Cross began in 1986. Last year, PG&E and The PG&E Corporation Foundation contributed a total of $750,000 to the Red Cross for emergency preparedness and disaster response, including wildfire relief and recovery efforts. Funding included support for the Red Cross California Wildfires Relief Fund for evacuation shelters and community support, which included a place to sleep, warm meals, health services and support services counseling.

About PG&E

Pacific Gas and Electric Company, a subsidiary of PG&E Corporation (NYSE:PCG), is a combined natural gas and electric utility serving more than 16 million people across 70,000 square miles in Northern and Central California. For more information, visit pge.com and pge.com/news.


Contacts

MEDIA RELATIONS:
415-973-5930

HOUSTON--(BUSINESS WIRE)--Whiting USA Trust II (the “Trust”) (OTC:WHZT) announced today that the Trust will make a distribution to unitholders in the third quarter of 2021, which relates to net profits generated during the second quarterly payment period of 2021. Unitholders of record on August 19, 2021 will receive a distribution of $0.180407 per unit, which is payable on or before August 27, 2021 (the “August 2021 distribution”).

As of the date of this press release, 99.9% of the Trust’s total 18,400,000 units outstanding were held by Cede & Co. (The Depository Trust Corporation’s nominee) as the official unitholder of record. The record date of August 19, 2021 for this distribution is only applicable to unitholders of record such as Cede & Co., and the ex-date, as set by The Financial Industry Regulatory Authority, Inc., or FINRA, actually determines which street name holders will be eligible to receive the August 2021 distribution.

Sales volumes, net profits and selected performance metrics for the quarterly payment period (mainly affected by April 2021 through June 2021 oil prices and March 2021 through May 2021 gas prices) were:

 

Sales volumes:

 

 

 

 

Oil (Bbl)(1)(2)

 

 

205,721

 

 

Natural gas (Mcf)

 

 

188,289

 

 

Total (BOE)

 

 

237,103

 

 

Gross proceeds:

 

 

 

 

Oil sales(1)

 

$

12,241,725

 

 

Natural gas sales

 

 

624,653

 

 

Total gross proceeds(3)

 

$

12,866,378

 

 

Costs:

 

 

 

 

Lease operating expenses

 

$

6,686,393

 

 

Production taxes(4)

 

 

648,716

 

 

Development costs(5)

 

 

447,448

 

 

Cash settlements on commodity derivatives(6)

 

 

-

 

 

Total costs

 

$

7,782,557

 

 

Net profits

 

$

5,083,821

 

 

Percentage allocable to Trust’s Net Profits Interest

 

 

90

 

%

Total cash available for the Trust

 

$

4,575,439

 

 

Proceeds from sale of oil and gas properties

 

 

-

 

 

Provision for estimated Trust expenses(7)

 

 

(1,250,000

)

 

Montana state income taxes withheld

 

 

(5,949

)

 

Net cash proceeds available for distribution

 

$

3,319,490

 

 

Trust units outstanding

 

 

18,400,000

 

 

Cash distribution per Trust unit

 

$

0.180407

 

 

Selected performance metrics:

 

 

 

 

Crude oil average realized price (per Bbl)(1)

 

$

59.51

 

 

Natural gas average realized price (per Mcf)

 

$

3.32

 

 

Lease operating expenses (per BOE)

 

$

28.20

 

 

Production tax rate (percent of total gross proceeds)(4)

 

 

5.0

 

%

__________

(1)

Oil includes natural gas liquids.

(2)

Oil volumes increased 3% during the second quarterly payment period of 2021 as compared to the first quarterly payment period of 2021 primarily due to differences in the timing of receiving revenues associated with non-operated properties.

(3)

Total gross proceeds increased $3.1 million (or 32%) during the second quarterly payment period of 2021 as compared to the first quarterly payment period of 2021. The increase in gross proceeds between periods was primarily due to higher average realized oil and natural gas prices between periods and differences in the timing associated with revenues received from non-operated properties, as discussed above.

(4)

Production taxes are typically calculated as a percentage of oil and gas revenues. Production taxes as a percentage of revenues decreased slightly from 5.1% during the first quarterly payment period of 2021 to 5.0% for the second quarterly payment period of 2021. Overall production taxes increased $0.2 million (or 31%) primarily due to the increases in gross proceeds discussed above.

(5)

Development costs increased $0.2 million during the second quarterly payment period of 2021 as compared to the first quarterly payment period of 2021. The increase was primarily due to increased activity on several non-operated properties.

(6)

All costless collar hedge contracts terminated as of December 31, 2014, and no additional hedges are allowed to be placed on Trust assets. Consequently, there are no further cash settlements on commodity hedges for inclusion in the Trust’s computation of net profits (or net losses, as the case may be), and the Trust has increased exposure to oil and natural gas price volatility.

(7)

The provision for estimated Trust expenses increased $1.0 million during the second quarterly payment period of 2021 as compared to the first quarterly payment period of 2021. The Trustee determined it was necessary to establish a $1.0 million reserve to ensure that the Trust has sufficient cash available to pay its general and administrative expenses through its termination date, which includes periods after the termination of the net profits interest when no net proceeds will be generated. The Trustee may increase or decrease this reserve at any time without advance notice to the unitholders. Any such reserve that exceeds the Trust’s actual general and administrative expenses in future periods will be returned to Trust unitholders in future distributions. The remaining $0.3 million provision for estimated Trust expenses is expected to be utilized for the Trust’s general and administrative expenses during the third quarter.

The Trust’s net profits interest (“NPI”), which is the only asset of the Trust other than cash reserves held for future Trust expenses, represents the right to receive 90% of the net proceeds from Whiting’s interests in certain existing oil and natural gas properties located primarily in the Rocky Mountains, Permian Basin, Gulf Coast and Mid-Continent regions of the United States until the NPI terminates on December 31, 2021.

Status of the Trust

Although oil and gas prices have improved since the lows experienced during 2020, oil and gas prices have historically been volatile and may fluctuate widely in the future. The Trust is unable to predict future commodity prices or future performance and distributions to unitholders are significantly impacted by low oil and natural gas prices and may be reduced to zero, as was the case during the second, third and fourth quarters of 2020 and first quarter of 2021. Additionally, in the current commodity price environment, the Trust’s distributions have increased sensitivity to fluctuations in operating and capital expenditures and commodity price differentials.

Trust Termination

After the NPI terminates on December 31, 2021, it is anticipated that the Trust will make a final quarterly distribution, if any, no later than March 1, 2022, to the Trust unitholders of record on the 50th day following December 31, 2021, and the Trust will wind up its affairs and terminate. After the termination of the Trust, it will pay no further distributions. Consequently, after the payment of the August 2021 distribution, the Trust expects to make only two further distributions, one in November 2021 and the final one in March 2022.

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

Forward-Looking Statements

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


Contacts

Whiting USA Trust II
The Bank of New York Mellon Trust Company, N.A., as Trustee
Sarah Newell
(512) 236-6555

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