DUBLIN--(BUSINESS WIRE)--The "Catalyst Handling Services Market by Service Type (Loading/Unloading, Screening, Transport), End-use Industry (Petroleum Refining, Petrochemical), Region (North America, APAC, Europe, Middle East & Africa, South America) - Global Forecast to 2025" report has been added to ResearchAndMarkets.com's offering.

The global catalyst handling services market size is projected to reach USD 620.5 million by 2025 at a CAGR of 4.0%.

The demand for catalyst handling services in emerging economies, such as APAC, MEA, and South America, is increasing owing to the growth in industrial activities. Increasing consumption of petrochemical products is also driving the market. Increasing demand for electric vehicles and reduction in capex by oil & gas companies are major restraining factors for the market. However, incorporation of new technologies such as robotics and automation in catalyst handling along with increasing demand for biofuels are opportunities for the market. On the other hand, decreasing demand for oil due to COVID-19 is a major challenge for the catalyst handling services market.

The loading/unloading segment is estimated to be the fastest-growing in the overall catalyst handling services market in 2020.

Catalyst unloading is a process where the spent catalysts are unloaded through proper operating procedures such as checking hot spots, build up coke formation, and checking for contamination. Catalyst loading is the process of transferring the catalyst from ground level to inside the reactor. The necessity of this service type in reactor cleaning and catalyst changing operations is driving the market growth. Moreover, growth in increased reactor operation efficiency requirements in oil & gas refineries is also driving the market.

Petroleum refining is expected to be the largest catalyst handling services end-use industry in 2020.

Petroleum refining is the largest market owing to the increasing demand for polymer based materials, liquid fuels and others in sectors such as construction, automotive, aerospace, defense, textile, and so on. Also, the growing demand for catalyst handling services to ensure the highest levels of safety and efficiency while charging and discharging reactors and for using specific techniques to handle pyrophoric catalysts are responsible for high growth. In addition, considerable oil & gas industry size in economies such as Brazil, China, Saudi Arabia, Qatar, and so on are driving market growth for petroleum refining.

APAC is projected to be the fastest-growing catalyst handling services market during the forecast period.

The catalyst handling services market in APAC is projected to register the highest CAGR in terms of value during the forecast period. The region is the fastest-growing market for catalyst handling services attributed to the presence of emerging countries, and their high economic growth rate, the rise in infrastructure and industrial projects, and increasing urbanization. Recently, the pandemic impacted regional growth. Government restrictions on the number of people that can gather at one particular place, severely impacted the industry. However, owing to government stimulus packages to counter the negative effects are expected to boost growth in a post-pandemic scenario.

Market Dynamics

• High Growth Scenario in the Petrochemical Industry

• Increasing Demand for Electric Vehicles
• Reduction in Capex and Opex by End-Use Industry Players

• Incorporation of Automation and Robotics in Catalyst Handling
• Increasing Demand for Biofuel

• Decreasing Demand for Crude Oil due to COVID-19

Companies Mentioned

• Ajaks
• Anabeeb
• Buchen-ics
• Cat Tech International
• Catalyst Handling Resources
• Celvac
• Climbex
• CR Asia
• Dickinson Group of Companies
• Drilldrop
• Group Peeters
• HCI
• Integrity CIS
• Kanooz Industrial Services
• Maviro
• Mourik
• Plant Tech Services
• Polman
• Prior Industrial Services
• Reactor Services International
• Technivac
• Tubemaster
• Turn 2 Speciality Companies
• USA DeBusk
• Veolia Anz

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

ResearchAndMarkets.com
Laura Wood, Senior Press Manager
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DALLAS--(BUSINESS WIRE)--Matador Resources Company (NYSE: MTDR) (“Matador” or the “Company”) today announced its full year 2021 operating plan and market guidance. A slide presentation summarizing the highlights of Matador’s 2021 operating plan and market guidance is also included on the Company’s website at www.matadorresources.com on the Events and Presentations page under the Investor Relations tab. In a separate press release issued today, Matador also reported its financial and operating results for the fourth quarter and full year 2020.

Full Year 2021 Guidance Summary

Matador’s full year 2021 guidance estimates are summarized in the table below.

The full year 2021 guidance estimates presented in the table above are based upon the following key assumptions for 2021 drilling and completions activity and capital expenditures.

• Matador estimates 2021 capital expenditures for drilling, completing and equipping wells (“D/C/E capital expenditures”) of $525 to $575 million, inclusive of an estimated $58 million for non-operated well opportunities, $38 million for artificial lift and other production-related capital expenditures, $18 million of capitalized general and administrative and interest expenses and an average 10% increase in drilling and completion costs in anticipation of increased service costs beginning in the second quarter of 2021. Matador anticipates continued improvement in its capital efficiency in 2021, with drilling and completion costs for operated horizontal wells turned to sales in 2021 expected to average approximately $730 per completed lateral foot.

• Matador began 2021 operating three drilling rigs in the Delaware Basin but plans to add a fourth operated drilling rig beginning in March. The Company then expects to operate four drilling rigs in the Delaware Basin throughout the remainder of 2021.

• Matador expects 49 gross (45.6 net) operated horizontal wells, with an average completed lateral length of 10,400 feet, should be turned to sales during 2021. Matador estimates that 48 wells, or 98%, will have lateral lengths of two miles or greater. Matador anticipates that it will have 83 gross (76.8 net) operated wells in progress at varying times during 2021, 82 of which are expected to have lateral lengths of two miles or greater.

• Matador expects to participate in 76 gross (7.0 net) non-operated well opportunities during 2021, including 68 gross (6.7 net) non-operated wells anticipated to be completed and turned to sales in the Delaware Basin and eight gross (0.3 net) non-operated wells anticipated to be completed and turned to sales in the Haynesville shale. Matador estimates that 72 of these non-operated wells, or 95%, will have lateral lengths greater than one mile, including 51 wells, or 67%, that are expected to have lateral lengths of two miles or greater.

• Matador estimates 2021 midstream capital expenditures of $20 to $30 million. This estimate reflects Matador’s 51% share of San Mateo’s 2021 estimated capital expenditures of $39 to $59 million.

Management Comments Regarding 2021 Operating Plan

Joseph Wm. Foran, Matador’s Chairman and CEO, commented, “The Board, the staff and I are pleased today to provide our 2021 operating plan and market guidance. We believe this year should be particularly exciting for Matador and its shareholders, as we work to continue developing our excellent Delaware Basin assets, transition to free cash flow, pay down debt and institute a dividend to augment our returns to our shareholders.

“We began 2021 operating three drilling rigs in the Delaware Basin and had planned to operate these three rigs there throughout 2021. As a result of recent actions taken by the newly inaugurated Biden administration, we have elected to pick up a fourth operated drilling rig beginning in March to ensure the orderly development of our federal leasehold in the Delaware Basin going forward. As you are most likely aware, in late January 2021, following President Biden’s inauguration, the United States Department of the Interior ordered a 60-day pause limiting the authority of local offices of the Bureau of Land Management (“BLM”) to grant federal drilling permits and certain extensions, sundries, rights-of-way and other necessary approvals for the development of federal oil and natural gas leases. This order did not impact operations on existing valid federal leases, and we have continued active operations on our existing federal properties, such as the Stateline asset area and the Rodney Robinson leasehold, without any difficulties since this order was issued. While we remain optimistic that the BLM will resume its timely approval of such requests on federal leases in late March following this 60-day pause, we cannot be sure as to what, if any, changes may be forthcoming regarding operations on federal properties and our ability to develop our federal leasehold. Thus, we believe it is a prudent action on our part to add a fourth drilling rig, for now, to our 2021 operating plan to accelerate the development of our existing federal permits. Beginning in March 2021, we expect to begin operating four drilling rigs in the Delaware Basin and plan to do so throughout the remainder of 2021, with an increased focus on the development of our federal properties in New Mexico.

“We were pleased to announce yesterday that Matador’s Board of Directors adopted a dividend policy and declared Matador’s first quarterly cash dividend of $0.025 per share, amounting to $0.10 per share, or approximately $12 million, on an annualized basis. Initiation of the dividend policy marks a significant step for Matador in returning value to our shareholders and also indicates our confidence in Matador’s financial strength and ability to generate free cash flow going forward. During the fourth quarter of 2020, Matador achieved adjusted free cash flow, and we expect to generate adjusted free cash flow in aggregate in 2021 as well, even in light of adding the fourth operated drilling rig, given the current outlook for oil and natural gas prices in 2021.

“Matador’s 2021 drilling program will focus on our federal properties, which include some of the best acreage in the Delaware Basin, including the continued development of our Stateline asset area in southern Eddy County, New Mexico, continued drilling of the Rodney Robinson federal leasehold in western Antelope Ridge and further development of the Greater Stebbins Area in the southern portion of our Arrowhead asset area, where all wells we turn to sales in 2021 are anticipated to be two-mile or longer laterals. In fact, the transition to drilling and completing longer laterals throughout our various asset areas in the Delaware Basin, which we began in 2019 and continued in 2020, has been fully realized. In 2021, 98%, or all but one, of the operated horizontal laterals we complete and turn to sales are expected to have lateral lengths of two miles or greater, as compared to 74% in 2020, 9% in 2019 and only one two-mile lateral in 2018. These longer laterals are delivering better well performance and economic returns. In 2021, Matador should also begin receiving performance incentives from our joint venture partner in San Mateo as we execute our operational plan in the Stateline asset area and the Greater Stebbins Area and connect to San Mateo’s gathering and transportation systems. This will further enhance the returns from these wells and provide an additional source of free cash flow to Matador in 2021.

“We are anticipating a number of key milestones in 2021, as we did in 2020, that are expected to add significant value to Matador and its midstream affiliate, San Mateo, while positioning Matador for continued growth and free cash flow in the coming years. The first of these milestones should occur in March 2021 when production from four new Rodney Robinson wells in the western portion of our Antelope Ridge asset area and two wells in our Ranger asset area is turned to sales. The second milestone should be realized in April and May when we turn to sales production from the first 13 Voni wells in our Stateline asset area, all of which are expected to have completed lateral lengths of approximately 12,000 feet, or about 2.3 miles. Given the strong early performance from the first 13 Boros wells turned to sales in September 2020 in the Stateline asset area, we are particularly excited to get this first group of Voni wells on production. During the summer, we expect to reach a third milestone when we turn to sales production from the first four of 13 wells we expect to drill and complete in the Greater Stebbins Area during 2021. The fourth and final key milestone for 2021 should occur in late October and through November when the remaining nine wells in the Greater Stebbins Area, along with the next 13 Boros wells in the Stateline asset area, are expected to be turned to sales. As a result of our operated and non-operated drilling activities in 2021, we anticipate 10 to 12% growth in our oil equivalent production and should exit 2021 well positioned for further growth in 2022. This will not be ‘growth for growth’s sake’ but profitable growth at a measured pace that results from our decision to preserve and bring forward the value of our federal properties for all of Matador’s stakeholders at a time of increasing federal uncertainty and increasing commodity prices.

“San Mateo concluded a record quarter in the fourth quarter of 2020 and a record year in 2020 and is poised to have another record year in 2021. During the fourth quarter of 2020, San Mateo also achieved adjusted free cash flow, as it enjoyed the first full quarter of operations following the completion and successful startup of the expansion of the Black River Processing Plant and related pipeline infrastructure and began gathering and processing natural gas and gathering, transporting and handling oil and produced water from Matador’s Stateline asset area and the Greater Stebbins Area. San Mateo expects to generate adjusted free cash flow throughout 2021, given the current maintenance level of capital expenditures budgeted for 2021. The San Mateo team will be working hard in 2021 to add new non-Matador customers to its ‘three-pipe’ midstream system throughout Eddy County, New Mexico, which, if successful, could require additional capital expenditures in 2021.

“As we execute our 2021 operating plan, Matador will continue to be mindful of our balance sheet as we have always been, and one of our key objectives for 2021 will be continuing to pay down debt under our reserves-based credit facility. As we reported in our fourth quarter 2020 earnings release issued today along with this 2021 guidance release, we have reduced the borrowings outstanding under our reserves-based credit facility by $45 million and under the San Mateo credit facility by $11 million since our previous earnings release in late October 2020. We ended 2020 with a leverage ratio under our reserves-based credit facility of 2.9x, below our expectations of 3.2x at the end of the third quarter and far below our expectations in March and April of 2020 of as high as 3.9x by year-end 2020. The Board and I would like to congratulate and commend the entire Matador team for all the hard work and professionalism they demonstrated in 2020 to allow Matador to successfully weather the many challenges faced by our society and the oil and natural gas industry in 2020 and to position ourselves well for further prosperity in 2021 and going forward.

“The Board, the staff and I are confident in our abilities to execute this 2021 operating plan. We are excited about the milestones in front of us in 2021 and are off to a good start. In short, we believe this 2021 operating plan should generate substantial value growth for our stakeholders in the year ahead and for years to come.”

Federal Acreage and Permits

In light of the Company’s decision to add a fourth rig to its 2021 operated drilling program beginning in March to focus on development of its federal properties, Matador provides the following update on its federal acreage position and federal drilling permits.

Federal Acreage Update

At December 31, 2020, Matador held approximately 124,700 net leasehold and mineral acres in the Delaware Basin in Eddy and Lea Counties, New Mexico and in Loving County, Texas, of which approximately 34,500 net acres, or about 28%, were on federal lands. Approximately 90,200 net acres, or about 72%, of the Company’s Delaware Basin leasehold and mineral position are comprised of private (fee) and state leasehold. In addition, at December 31, 2020, Matador held approximately 26,300 net acres in the Eagle Ford shale play in South Texas and approximately 17,700 net acres in the Haynesville shale play in Northwest Louisiana, the vast majority of which were located on private (fee) and state lands. Including the Company’s South Texas and Northwest Louisiana acreage and mineral positions, at December 31, 2020, only about 21% of Matador’s total net leasehold and mineral acreage was on federal lands, giving the Company considerable options for oil and natural gas development across its acreage position and years of additional drilling inventory, including many “A+ locations,” outside of its federal leasehold position.

A more detailed breakdown of Matador’s federal leasehold position by asset area in the Delaware Basin is provided in the table below.

At December 31, 2020, Matador estimates that approximately 70% of its federal leasehold in the Delaware Basin was held by production, including all 1,200 net acres in the recently drilled Rodney Robinson leasehold and approximately 1,280 net acres in the Stateline asset area. Matador should soon have the entire Stateline asset area held by production when the first 13 Voni wells in the western portion of the Stateline asset area are turned to sales, which is expected to begin in April 2021. Once the Stateline asset area is fully held by production, Matador estimates that approximately 75% of its federal leasehold would then be held by production. Further, approximately 23%, or 7,800 net acres, of Matador’s federal acreage position in the Delaware Basin, or almost all the Company’s remaining federal leasehold in the Delaware Basin, is not subject to expiration before 2028.

Federal Permits Update

The table below summarizes the Company’s undrilled federal drilling permits, approved and in progress, at February 23, 2021.

At February 23, 2021, Matador had secured 177 approved and undrilled federal drilling permits and had 98 additional permits under review by the BLM for future drilling on federal lands across its various asset areas in the Delaware Basin. In addition, at February 23, 2021, Matador had a total of 19 wells undergoing completion operations on its federal leasehold, including 13 Voni wells in the Stateline asset area, four wells on the Rodney Robinson leasehold and two wells in the Ranger asset area, as well as eight (soon to be 13) new Boros wells currently being drilled in the Stateline asset area. These 27 wells are excluded from the 177 approved and undrilled federal permits noted above, although these wells have yet to be turned to sales. Since the Company’s last update of its federal permit status on October 27, 2020, Matador has drilled wells using a total of 12 federal permits—two in its Ranger asset area, two additional permits in its Rodney Robinson leasehold and eight (soon to be 13) Boros permits in the Stateline asset area. A total of 24 federal permits in the Rustler Breaks and Arrowhead asset areas were also allowed to expire prior to December 31, 2020, as these permits were for shorter lateral wells (primarily one-mile laterals) or wells that are not expected to be drilled within the next several years given Matador’s current expectations for its operated drilling program. Matador also received federal permits for three new wells in its Arrowhead asset area during the fourth quarter of 2020.

At February 23, 2021, Matador had received approved drilling permits for all of its planned Boros and Voni wells in the Stateline asset area and all but one of its planned wells on the Rodney Robinson leasehold. The Company also believes that it has secured all necessary surface disturbance, facilities and right-of-way permits necessary to complete its planned development of these asset areas. Matador expects to continue submitting requests for new federal drilling permits, sundries, extensions to existing permits, rights of way and other necessary federal approvals for the development of its federal leases and remains optimistic that the BLM will resume its approval of these requests on existing federal leases in late March following the 60-day pause imposed by the United States Department of the Interior in late January 2021.

2021 Operating Plan

The table below provides Matador’s expectations for operated and non-operated wells to be completed and turned to sales during 2021. Additional details regarding Matador’s drilling and completions program for 2021 are provided in the sections that follow and in the slide presentation accompanying this press release.

Delaware Basin

Matador began 2021 operating three drilling rigs in the Delaware Basin but has recently contracted a fourth operated drilling rig, which is expected to begin drilling operations in the Company’s Stebbins area and surrounding leasehold in the Arrowhead asset area (the “Greater Stebbins Area”) in March 2021. Matador then expects to operate four drilling rigs in the Delaware Basin throughout the remainder of 2021. Two of these rigs are expected to operate full time in the Stateline asset area. The other two rigs are expected to operate in certain of the Company’s other asset areas, including the Greater Stebbins Area, the Wolf asset area, the Ranger asset area and the Rodney Robinson leasehold in the western portion of the Antelope Ridge asset area.

Matador expects to complete and turn to sales 49 gross (45.6 net) operated wells in the Delaware Basin in 2021, as follows.

• Six gross (5.1 net) wells in the first quarter, including four wells in the Rodney Robinson leasehold and two wells in the Ranger asset area;
• 15 gross (14.7 net) wells in the second quarter, including the first 13 Voni wells in the Stateline asset area and two wells in the Wolf asset area;
• Four gross (3.5 net) wells in the third quarter, all in the Greater Stebbins Area; and
• 24 gross (22.3 net) wells in the fourth quarter, including nine wells in the Greater Stebbins Area, 13 additional Boros wells in the Stateline asset area and two wells in the Ranger asset area.

Additional key features of Matador’s 2021 Delaware Basin operating program are noted below.

• 98% of Matador’s gross operated horizontal wells completed and turned to sales in 2021 are expected to have lateral lengths of two miles or greater, as compared to 74% in 2020 and just 9% in 2019. Only one well in the Wolf asset area is expected to be a 1.5-mile lateral. Matador estimates its average completed lateral length for operated wells turned to sales in 2021 should be approximately 10,400 feet, an increase of 18%, as compared to an average completed lateral length of approximately 8,800 feet in 2020.

• Matador expects to complete and turn to sales approximately 508,000 gross lateral feet in its operated horizontal wells in 2021, an increase of 9%, as compared to 465,000 gross lateral feet in 2020. These projected results reflect improvements the Company continues to make in its operating efficiency and overall rig productivity.

• Matador anticipates continued improvement in its capital efficiency, with drilling and completion costs for operated horizontal wells turned to sales in 2021 estimated to average approximately $730 per completed lateral foot. This represents a 14% decline in average drilling and completion costs per completed lateral foot, as compared to $850 per completed lateral foot in 2020, and a decline of 37% from $1,165 per completed lateral foot in 2019. Matador anticipates this continued improvement in capital efficiency in 2021, despite its expectations of an average 10% increase in drilling and completions costs beginning in the second quarter of 2021.

• In addition to the capital efficiencies generated using multi-well pads and other techniques, co-development of formations in Matador’s Stateline asset area, the Rodney Robinson leasehold in western Antelope Ridge and the Greater Stebbins Area should continue to boost the well returns in those areas, as Matador believes this approach should minimize the impact of reservoir drainage, as well as shut-ins and downtime associated with hydraulic fracturing operations in future wells.

• The average working interest of operated wells expected to be completed and turned to sales in the Delaware Basin in 2021 is estimated to be 93%, as compared to 86% in 2020.

• Production growth and capital expenditures are expected to continue to be uneven or “lumpy” on a quarterly basis, similar to what Matador experienced in 2020. Capital expenditures are expected to be highest in the first and third quarters of 2021, as most of the Company’s completion activities for 2021 should occur during those quarters.

Mac Schmitz
Capital Markets Coordinator
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MADISON, Wis.--(BUSINESS WIRE)--MGE Energy, Inc. (Nasdaq: MGEE) today reported financial results for the fourth quarter and full year of 2020.

MGE Energy’s GAAP (Generally Accepted Accounting Principles) earnings for the full year of 2020 were $92.4 million, or $2.60 per share, compared to $86.9 million, or $2.51 per share, for the same period in the prior year. This increase was primarily due to AFUDC equity earned from the construction of Two Creeks and Badger Hollow I and II and savings in operating and maintenance costs. AFUDC equity for the Two Creeks and Badger Hollow I and II solar projects increased $3.3 million compared to the same period in the prior year.

The Two Creeks and Badger Hollow solar projects will provide Madison Gas and Electric (MGE) electric customers with renewable energy, advancing the company’s commitment to achieving net-zero carbon electricity for all customers by 2050. A foundational objective in MGE’s ongoing transition toward deep decarbonization is ensuring all customers benefit from new technologies and greater sustainability. In early February, MGE announced a plan to retire the coal-fired Columbia Energy Center near Portage, Wis. MGE is a minority owner of the plant, which is co-owned by Alliant Energy and Wisconsin Public Service (WPS), a subsidiary of WEC Energy Group. Subject to regulatory approvals, the co-owners intend to retire Unit 1 by the end of 2023 and Unit 2 by the end of 2024. The plan represents another step in MGE's ongoing transition toward greater use of clean energy sources and deep carbon reductions.

COVID-19 and associated governmental regulations led to a reduction of retail sales and negatively impacted electric earnings in 2020. Electric commercial retail sales dropped approximately 7% in 2020 compared to the prior year. However, ongoing remote work arrangements contributed to higher electric residential sales, which partially mitigated the impact of COVID-19. Electric residential sales increased by approximately 6% compared to 2019.

MGE Energy's GAAP earnings for the fourth quarter of 2020 were $15.8 million, or 44 cents per share, compared to $16.7 million, or 48 cents per share, in the fourth quarter of 2019. During the fourth quarter of 2020, electric net income decreased $1.3 million compared to the same period in the prior year. This decrease was primarily attributable to lower electric retail sales.

COVID-19 and associated governmental regulations led to a reduction of electric retail sales and negatively impacted electric earnings in the fourth quarter of 2020. Electric commercial retail sales dropped approximately 7% in the fourth quarter of 2020 compared to the same period in the prior year. Ongoing remote work arrangements partially contributed to an increase in electric residential sales of approximately 2% compared to the fourth quarter of 2019. The negative impact on sales due to COVID-19 was partially mitigated by AFUDC equity earned from the construction of solar projects.

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

The situation around the COVID-19 pandemic remains fluid. We have been subject to and continue to follow local, state and federal public health and safety regulations and guidance to address the pandemic. We have operated continuously throughout the pandemic to ensure no material disruptions in service or employment. Our priority has and continues to be reliable and safe service for our customers. We continue to monitor the situation and manage our response.

About MGE Energy

MGE Energy is a public utility holding company. Its principal subsidiary, Madison Gas and Electric, generates and distributes electricity to 157,000 customers in Dane County, Wis., and purchases and distributes natural gas to 166,000 customers in seven south-central and western Wisconsin counties. MGE's roots in the Madison area date back more than 150 years.

Forward-looking Statements

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

Steve B. Schultz
Corporate Communications Manager
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Ken Frassetto
Investor Relations
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DALLAS--(BUSINESS WIRE)--Pioneer Natural Resources Company (NYSE:PXD) ("Pioneer" or "the Company") today reported financial and operating results for the quarter and year ended December 31, 2020. Pioneer reported fourth quarter net income attributable to common stockholders of $43 million, or $0.26 per diluted share. These results include the effects of noncash mark-to-market adjustments and certain other unusual items. Excluding these items, non-GAAP adjusted income for the fourth quarter was $177 million, or $1.07 per diluted share. Cash flow from operating activities for the fourth quarter was $537 million. For the full year 2020, the Company reported a net loss attributable to common stockholders of $200 million, or $1.21 per diluted share. Cash flow from operating activities for the full year 2020 was $2.1 billion.

Highlights

• Delivered strong fourth quarter and full year 2020 free cash flow¹ of $294 million and $689 million, respectively
• Achieved a reinvestment rate of 69% in 2020, while maintaining full year Permian oil production at 211 thousand barrels of oil per day (MBOPD)
• Returned $521 million of capital to shareholders during 2020, or 76% of full year free cash flow
• Averaged fourth quarter oil production of 204 MBOPD, in the upper half of guidance
• Averaged fourth quarter production of 364 thousand barrels of oil equivalent per day (MBOEPD), in the upper half of guidance
• Initiating a long-term variable dividend² policy that allows for the distribution of up to 75% of free cash flow, after the base dividend is paid, while maintaining a strong balance sheet

CEO Scott D. Sheffield stated, “Pioneer delivered an excellent fourth quarter, generating $294 million in free cash flow and continuing our strong track record of execution. While 2020 was a challenging year, our immediate actions kept our employees safe, protected the balance sheet, generated significant free cash flow and ensure that Pioneer is well positioned for the future.

Pioneer's 2021 plan builds on this success, with a program that is capital efficient and is underpinned by our premier acreage position and scale in the Permian Basin. The highly accretive Parsley transaction further strengthens our investment framework, leading to a plan that is expected to generate $2 billion of free cash flow in 2021. As part of our commitment to return capital to shareholders, we are excited to formalize a new variable dividend policy, augmenting our stable and growing base dividend.

Our compelling investment proposition, coupled with our strong focus on environmental, social and governance initiatives, ensures Pioneer will continue to provide low-cost, environmentally friendly energy to the world, while enhancing value for shareholders."

Financial Highlights

Pioneer continues to maintain a strong balance sheet, with unrestricted cash on hand at the end of the fourth quarter of $1.4 billion and net debt of $1.9 billion. The Company had $2.9 billion of liquidity as of December 31, 2020, comprised of $1.4 billion of unrestricted cash and a $1.5 billion unsecured credit facility (undrawn as of December 31, 2020). After closing the acquisition of Parsley Energy and bond refinancing in January, the Company had net debt of approximately $5.2 billion.

During the fourth quarter, the Company’s drilling, completion and facilities capital expenditures totaled $336 million. The Company’s total capital expenditures³, including water infrastructure, totaled $351 million. For the full year 2020, the Company's drilling, completion and facilities capital expenditures totaled $1.4 billion. The Company's total capital expenditures for the full year, including water infrastructure, totaled $1.5 billion.

Cash flow from operating activities during the fourth quarter and full year 2020 was $537 million and $2.1 billion, respectively, leading to free cash flow of $294 million for the fourth quarter and $689 million for the full year.

The Company's Board of Directors approved an increase to the Company's quarterly cash dividend to $0.56 per share. The 2021 quarterly dividend increase represents the fourth consecutive year that Pioneer has increased its dividend.

In addition to Pioneer's increase in its quarterly cash dividend to $0.56 per share, the Company is initiating a long-term variable dividend policy in 2021 that is expected to increase the Company's return of capital to shareholders. Consistent with Pioneer’s long-term investment framework, the Company expects to annually distribute up to 75% of the prior year’s annual free cash flow, after the payment of the base dividend², assuming the Company’s leverage metrics remain low. Pioneer expects to begin to pay the quarterly variable dividend distributions in 2022. For 2022, the Company expects to distribute up to 50% of 2021 free cash flow, after the payment of base dividends, assuming the average 2021 West Texas Intermediate (WTI) oil price is greater than $42 per barrel.

Pioneer continues to capture synergies from the acquisition of Parsley Energy, Inc. (Parsley) and is increasing the Company's synergy target by $25 million to $350 million of expected total annual synergies. These annual synergies include interest savings of $100 million, G&A savings of $100 million and operational synergies of $150 million.

Financial Results

For the fourth quarter of 2020, the average realized price for oil was $40.94 per barrel. The average realized price for natural gas liquids (NGLs) was $18.51 per barrel, and the average realized price for gas was $2.37 per thousand cubic feet. These prices exclude the effects of derivatives.

Production costs, including taxes, averaged $7.01 per barrel of oil equivalent (BOE). Depreciation, depletion and amortization (DD&A) expense averaged $11.81 per BOE. Exploration and abandonment costs were $12 million. General and administrative (G&A) expense was $64 million. Interest expense was $36 million. The net cash flow impact related to purchases and sales of oil and gas, including firm transportation, was a loss of $32 million. Other expense was $48 million, or $15 million excluding unusual items⁴.

The Company recently identified two marketing contracts that should have been accounted for as derivatives in the Company’s historical consolidated financial statements. The contracts provided for the transportation and sale of purchased oil at lower transport and storage costs as compared to similar costs in the Company’s other contracts. The contracts were executed during the fourth quarter of 2019, but transactions under the contract did not begin until January 2021. The Company plans to restate its consolidated financial statements for the three and nine months ended September 30, 2020 to reflect the noncash mark-to-market corrections related to the derivative treatment of the contracts. The noncash mark-to-market adjustments to the other periods impacted were not material. The adjustments did not impact the Company’s reported cash flows from operating, investing or financing activities for any period. See the attached schedules for a description of the marketing derivatives.

Operations Update

Pioneer continued to deliver strong operational efficiency gains that enabled the Company to place 58 horizontal wells on production during the fourth quarter and 255 wells on production for the full year. During 2020, drilling operations averaged approximately 1,150 drilled feet per day and completion operations averaged approximately 1,850 completed feet per day, an increase 15% and 16%, respectively, when compared to 2019. Pioneer's fully burdened facilities costs per well also continued to decrease as the Company makes further progress on its facilities optimization program that began in 2019. When compared to 2018, Pioneer's facilities cost per well has decreased approximately 40%, from over $1.6 million per well to approximately $1 million per well. The efficiency and cost improvements in drilling, completions and facilities continue to improve the Company’s overall capital efficiency.

The Company's controllable cash costs, inclusive of lease operating expense, G&A and interest expense, continue to trend lower and represent a combined 23% reduction per BOE in 2020 when compared to 2019. As the Company realizes the expected synergies associated with the acquisition of Parsley, controllable cash costs are forecasted to decrease an additional 8% in 2021.

During 2021, the Company plans to operate an average of 18 to 20 horizontal drilling rigs in the Permian Basin, including a one-rig average program in the Delaware Basin and a three-rig average program in the southern Midland Basin joint venture area. The 2021 program is expected to place 385 to 415 wells on production, predominantly in the Midland Basin, with a well mix of approximately 40% Wolfcamp B, 40% Wolfcamp A and 15% Spraberry in the Midland Basin and the remaining 5% in the Delaware Basin. Pioneer will continue to evaluate its drilling and completions program on an economic basis, with future activity levels assessed regularly and governed by its reinvestment framework.

2021 Outlook

The Company expects its 2021 drilling, completions and facilities capital budget to range between $2.4 billion to $2.7 billion, with an additional $100 million budgeted for integration expenses related to the acquisition of Parsley, resulting in a total 2021 capital budget³ range of $2.5 billion to $2.8 billion. The Company expects its capital program to be fully funded within forecasted cash flow⁵ of approximately $4.6 billion.

Pioneer expects 2021 oil production of 307 to 322 MBOPD and total production of 528 to 554 MBOEPD, which excludes Parsley production prior to the Parsley acquisition close date of January 12, 2021, and includes the expected production impact attributable to the recent winter storm of approximately 8 MBOPD and 14 MBOEPD. On a pro forma basis for the Parsley transaction, 2021 oil production and total production ranges are expected to be 310 to 325 MBOPD and 533 to 559 MBOEPD, respectively. The Company continues to monitor the macroeconomic environment and will remain flexible and responsive to changing market conditions to preserve its strong balance sheet.

Pioneer has redefined its investment framework to prioritize free cash flow generation and return of capital to shareholders. This capital allocation strategy is intended to create long-term value by optimizing the reinvestment of cash flow to accelerate the Company's free cash flow profile. At current strip pricing, the Company expects its reinvestment rate to be between 50% to 60%, generating increased free cash flow. Pioneer is targeting a 10% total annual return, inclusive of a strong and growing base dividend, a variable dividend and high-return oil growth. The Company believes this differentiated strategy positions Pioneer to be competitive across industries.

Pioneer continues to maintain substantial oil and gas derivative coverage in order to protect the balance sheet, providing the Company with operational and financial flexibility. The Company’s financial and derivative mark-to-market results and open derivatives positions are outlined in the attached schedules.

First Quarter 2021 Guidance

First quarter 2021 oil production is forecasted to average between 259 to 274 MBOPD and total production is expected to average between 444 to 470 MBOEPD, which excludes Parsley production prior to the Parsley acquisition close date of January 12, 2021, and includes the expected production impact attributable to the recent winter storm of approximately 30 MBOPD and 55 MBOEPD. Production costs are expected to average $6.50 per BOE to $8.00 per BOE. DD&A expense is expected to average $11.25 per BOE to $13.25 per BOE. Total exploration and abandonment expense is forecasted to be $10 million to $20 million. G&A expense is expected to be $65 million to $75 million. Interest expense is expected to be $38 million to $43 million. Other expense is forecasted to be $10 million to $20 million. Accretion of discount on asset retirement obligations is expected to be $2 million to $5 million. The cash flow impact related to purchases and sales of oil and gas, including firm transportation, is expected to be a loss of $30 million to $60 million, based on forward oil price estimates for the first quarter. The Company’s effective income tax rate is expected to be between 21% to 25%. Cash income taxes are expected to be nominal.

Proved Reserves

The Company added proved reserves totaling 357 million barrels of oil equivalent (MMBOE) during 2020, excluding acquisitions and price revisions. These proved reserve additions equate to a drillbit reserve replacement ratio of 263% when compared to Pioneer's full-year 2020 production of 136 MMBOE, including field fuel. The drillbit finding and development (F&D) cost was $4.37 per BOE in 2020, with a drillbit proved developed F&D costs of $4.09 per BOE.

As of December 31, 2020, the Company's total proved reserves were estimated at 1,271 MMBOE, of which 95% are proved developed.

Environmental, Social & Governance (ESG)

Pioneer views sustainability as a multidisciplinary focus that balances economic growth, environmental stewardship and social responsibility. The Company emphasizes developing natural resources in a manner that protects surrounding communities and preserves the environment.

Consistent with Pioneer's sustainable practices, the Company has incorporated greenhouse gas (GHG) and methane emission intensity reduction goals into its ESG strategy, with goals to reduce the Company's GHG emissions intensity by 25% and methane emissions intensity by 40% by 2030, inclusive of the assets Pioneer acquired from Parsley. These emission intensity reduction targets are aligned with the Task Force on Climate-related Financial Disclosures criteria for target setting.

In addition, the Company is building on its leadership position related to minimizing flaring and has formally adopted a goal to maintain the Company's flaring intensity to less than 1% of natural gas produced. Pioneer also plans to end routine flaring, as defined by the World Bank, by 2030 with an aspiration to reach this goal by 2025.

Socially, Pioneer maintains a proactive safety culture, supports a diverse workforce and inspires teamwork to drive innovation. The Board of Directors has a Health, Safety and Environment (HSE) Committee and a Nominating and Corporate Governance Committee to provide director-level oversight of these activities. These committees help to promote a culture of continuous improvement in safety and environmental practices. Consistent with the high priority placed on HSE and ESG, the Board of Directors has increased the executive annual incentive compensation weighting for these metrics from 10% to 20% beginning in 2021.

In addition to the increased weighting towards HSE and ESG metrics, Pioneer's executive incentive compensation continues to be aligned with shareholder interests. Beginning in 2021, return on capital employed (ROCE) has been included along with cash return on capital invested (CROCI), which was added in 2020, with a combined weighting of 20%, while production and reserves goals previously included as incentive compensation metrics have been removed.

Pioneer has amended executive equity compensation as well, with the S&P 500 index being added into the total stockholder return (TSR) peer group for performance awards beginning in 2021, and for the second consecutive year the long-term equity compensation for the Company’s Chief Executive Officer will be 100% in performance awards, with 100% of such awards at risk based on performance relative to the TSR peer group. These updates to Pioneer’s executive incentive and equity compensation programs demonstrate the Company’s continuing commitment to aligning total executive compensation with the interests of our shareholders.

For more details, see Pioneer’s 2020 Sustainability Report at pxd.com/sustainability.

Earnings Conference Call

On Wednesday, February 24, 2021, at 9:00 a.m. Central Time, Pioneer will discuss its financial and operating results for the quarter and full year ended December 31, 2020, with an accompanying presentation. Instructions for listening to the call and viewing the accompanying presentation are shown below.

Internet: www.pxd.com
Select "Investors," then "Earnings & Webcasts" to listen to the discussion, view the presentation and see other related material.

Telephone: Dial (800) 458-4121 and enter confirmation code 7134307 five minutes before the call.

A replay of the webcast will be archived on Pioneer’s website. This replay will be available through March 22, 2021. Click here to register for the call-in audio replay and you will receive the dial-in information.

Pioneer is a large independent oil and gas exploration and production company, headquartered in Dallas, Texas, with operations in the United States. For more information, visit www.pxd.com.

Except for historical information contained herein, the statements in this news release are forward-looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements and the business prospects of Pioneer are subject to a number of risks and uncertainties that may cause Pioneer’s actual results in future periods to differ materially from the forward-looking statements. These risks and uncertainties include, among other things, volatility of commodity prices; product supply and demand; the impact of a widespread outbreak of an illness, such as the COVID-19 pandemic, on global and U.S. economic activity; competition; the ability to obtain environmental and other permits and the timing thereof; the effect of future regulatory or legislative actions on Pioneer or the industries in which it operates, including the risk of new restrictions with respect to development activities; the ability to obtain approvals from third parties and negotiate agreements with third parties on mutually acceptable terms; potential liability resulting from pending or future litigation; the costs and results of drilling and operations; availability of equipment, services, resources and personnel required to perform the Company’s drilling and operating activities; access to and availability of transportation, processing, fractionation, refining, storage and export facilities; Pioneer's ability to replace reserves; implement its business plans or complete its development activities as scheduled; the risk that the Company will not be able to successfully integrate the business of Parsley or fully or timely realize the expected synergies and accretion metrics from the Parsley acquisition; access to and cost of capital; the financial strength of counterparties to Pioneer's credit facility, investment instruments and derivative contracts and purchasers of Pioneer's oil, natural gas liquids and gas production; uncertainties about estimates of reserves; identification of drilling locations and the ability to add proved reserves in the future; the assumptions underlying forecasts, including forecasts of production, well costs, capital expenditures, rates of return, expenses, cash flow and cash flow from purchases and sales of oil and gas, net of firm transportation commitments; sources of funding; tax rates; quality of technical data; environmental and weather risks, including the possible impacts of climate change; cybersecurity risks; the risks associated with the ownership and operation of the Company's oilfield services businesses and acts of war or terrorism. These and other risks are described in Pioneer's Annual Report on Form 10-K for the year ended December 31, 2019, Quarterly Reports on Form 10-Q filed thereafter and other filings with the United States Securities and Exchange Commission. In addition, the Company may be subject to currently unforeseen risks that may have a materially adverse effect on it. Accordingly, no assurances can be given that the actual events and results will not be materially different than the anticipated results described in the forward-looking statements. Pioneer undertakes no duty to publicly update these statements except as required by law.

“Drillbit finding and development cost per BOE,” or “drillbit F&D cost per BOE,” means the summation of exploration and development costs incurred divided by the summation of annual proved reserves, on a BOE basis, attributable to discoveries, extensions and revisions of previous estimates. Revisions of previous estimates exclude price revisions. Consistent with industry practice, future capital costs to develop proved undeveloped reserves are not included in costs incurred.

“Drillbit reserve replacement” is the summation of annual proved reserves, on a BOE basis, attributable to discoveries, extensions and revisions of previous estimates divided by annual production of oil, NGLs and gas, on a BOE basis. Revisions of previous estimates exclude price revisions.

“Proved developed finding and development cost per BOE,” or “proved developed F&D cost per BOE,” means the summation of exploration and development costs incurred (excluding asset retirement obligations) divided by the summation of annual proved reserves, on a BOE basis, attributable to proved developed reserve additions, including (i) discoveries and extensions placed on production during 2020, (ii) transfers from proved undeveloped reserves at year-end 2019 and (iii) technical revisions of previous estimates for proved developed reserves during 2020. Revisions of previous estimates exclude price revisions.

Footnote 1: Free cash flow is a non-GAAP measure. See reconciliation to comparable GAAP number in supplemental schedules.

Footnote 2: The declaration and payment of future dividends is at the discretion of the Company's Board of Directors and will depend on, among other things, the Company's earnings, financial condition and outlook, capital requirements, level of indebtedness, statutory and contractual restrictions applying to the payment of dividends and other considerations that the Board of Directors deems relevant.

Footnote 3: Excludes acquisitions, asset retirement obligations, capitalized interest, geological and geophysical G&A, information technology and corporate facilities.

Footnote 4: Unusual items include the following: (i) a noncash $11 million net increase in estimated deficiency fee obligations associated with the 2019 sale of the Company's Eagle Ford and South Texas assets; (ii) $10 million of transaction costs associated with the acquisition of Parsley in January 2020; (iii) $7 million of idle frac fleet fees, stacked drilling rig charges and drilling rig early termination charges; (iv) $4 million of employee-related charges associated with the Company's 2020 corporate restructuring and (v) $1 million in charges related to sand take or pay deficiency payments. See reconciliation in supplemental schedules.

Footnote 5: The 2021 estimated cash flow number is a non-GAAP financial measure, representing forecasted cash flow (before working capital changes) assuming a WTI oil price of $55 per barrel (assuming a $3 differential to the Brent oil price) and Henry Hub gas price of $3.00 per MCF; represents the midpoint of production guidance. Due to its forward-looking nature, management cannot reliably predict certain of the necessary components of the most directly comparable forward-looking GAAP measure, such as working capital changes.

Pioneer Natural Resources Company Contacts:

Investors
Neal Shah - 972-969-3900
Tom Fitter - 972-969-1821
Michael McNamara - 972-969-3592
Greg Wright - 972-969-1770

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

FRAMINGHAM, Mass.--(BUSINESS WIRE)--#efficiency--Ameresco, Inc. (NYSE:AMRC), a leading energy efficiency and renewable energy company, today announced that members of its management team will attend the following investor conference:

• On February 24, 2021, Ameresco’s Senior Vice President and Chief Financial Officer, Doran Hole, will host a fireside chat at the Baird's 2021 Sustainability Conference at 8.50am ET.

About Ameresco, Inc.

Founded in 2000, Ameresco, Inc. (NYSE:AMRC) is a leading independent provider of comprehensive services, energy efficiency, infrastructure upgrades, asset sustainability and renewable energy solutions for businesses and organizations throughout North America and Europe. Ameresco’s sustainability services include upgrades to a facility’s energy infrastructure and the development, construction and operation of renewable energy plants. 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.

Ameresco: Leila Dillon, 508.661.2264, This email address is being protected from spambots. You need JavaScript enabled to view it.
Investor Relations: Eric Prouty, AdvisIRy Partners, 212.750.5800, This email address is being protected from spambots. You need JavaScript enabled to view it.
Lynn Morgen, AdvisIRy Partners, 212.750.5800, This email address is being protected from spambots. You need JavaScript enabled to view it.

LONDON & PARIS & HOUSTON--(BUSINESS WIRE)--TechnipFMC (NYSE:FTI) (PARIS:FTI) has received a letter of award (LOA) by Energean Israel Limited for the development of the Karish North field, located offshore Israel.

TechnipFMC will design, manufacture, deliver and install subsea equipment including the subsea production system, rigid flowlines and umbilicals as a tieback to the ‘Energean Power’ FPSO as well as the second gas export riser.

Jonathan Landes, President Subsea at TechnipFMC, commented: “We are delighted to partner again with Energean. This LOA demonstrates the value of our in-depth field knowledge and previous experience with Energean through the Karish main development, awarded to TechnipFMC in 2018. Early client engagement, leveraging our iFEED™ capability, as well as our ability to offer a full suite of services and global experience, form part of our unique fully integrated EPCI (iEPCI™) offering. We look forward to further expanding our partnership with Energean through the development of Karish North.”

Important Information for Investors and Securityholders

Forward-Looking Statement

This release contains "forward-looking statements" as defined in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. The words “believe”, “estimated” and other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. Such forward-looking statements involve significant risks, uncertainties and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. For information regarding known material factors that could cause actual results to differ from projected results, please see our risk factors set forth in our filings with the United States Securities and Exchange Commission, which include our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. We caution you not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any of our forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise, except to the extent required by law.

About TechnipFMC

TechnipFMC is a leading technology provider to the traditional and new energies industries; delivering fully integrated projects, products, and services.

With our proprietary technologies and comprehensive solutions, we are transforming our clients’ project economics, helping them unlock new possibilities to develop energy resources while reducing carbon intensity and supporting their energy transition ambitions.

Organized in two business segments — Subsea and Surface Technologies — we will continue to advance the industry with our pioneering integrated ecosystems (such as iEPCI™, iFEED™ and iComplete™), technology leadership and digital innovation.

Each of our approximately 20,000 employees is driven by a commitment to our clients’ success, and a culture of strong execution, purposeful innovation, and challenging industry conventions.

TechnipFMC uses its website as a channel of distribution of material company information. To learn more about how we are driving change in the industry, go to www.TechnipFMC.com and follow us on Twitter @TechnipFMC.

Investor relations
Matt Seinsheimer
Vice President Investor Relations
+1 281 260 3665
This email address is being protected from spambots. You need JavaScript enabled to view it.

James Davis
Senior Manager Investor Relations
+1 281 260 3665
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Media relations
Nicola Cameron
Vice President Corporate Communications
+44 1383 742297
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Brooke Robertson
Public Relations Director
+1 281 591 4108
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“GigNet-1” will be the first new fiber optic cable in over 20 years specifically designed to meet exploding Internet demand in the Mexican Caribbean

CHICAGO--(BUSINESS WIRE)--FB Submarine Partners, LLC, a privately owned developer of international telecommunications projects announced today a 1,200 kilometers advanced subsea fiber optic cable system from Florida to Cancun, Mexico. The GigNet-1 subsea cable system has been in development for the past two years and is expected to be completed in 2022. The Company believes this will be the first new subsea cable from Florida to the Yucatan Peninsula in over 20 years specifically designed to meet the rapidly growing demand for secure, high speed bandwidth for Internet, video streaming, social media, and cloud services.

Development to date has included completion of the desktop route survey, regulatory and permitting feasibility studies for each of Florida and Mexico, market demand and analysis studies, and selection and contracting of key suppliers for the system design, equipment, and installation. A marine route survey will begin in March.

Michael J. Mahoney, CTO, announced that after thorough service provider evaluations, the Company has selected Xtera, an industry leader in subsea network deployments, to serve as the primary EPC contractor for the project. Xtera will provide the subsea plant “wetplant” consisting of the fiber and amplifiers (repeaters), the submarine line terminals in Florida and Mexico, and manage the installation. IT International Telecom, leading experts in subsea cable systems, has already provided the desktop route survey and provide the marine route survey. In cooperation with Xtera, IT International Telecom will install the GigNet-1 cable system. “I truly believe we have assembled an incredible team of experts and partners that will result in the deployment of this cable system on time and on budget. The economic impact of this new subsea cable to the economic development of Quintana Roo and Yucatan will be extraordinary,” said Mr. Mahoney.

In Mexico, the Company will partner with GigNet, Inc. and its wholly-owned operating subsidiary GigNet S.A. de C.V. for access to the beach in Cancun and colocation in GigNet’s Cancun cable landing station. GigNet operates an advanced fiber optic network in the Riviera Maya region serving the hospitality, enterprise and planned development segments, will serve as a major tenant on the subsea cable system, and will provide IP transit and private line connectivity with GigNet-1 throughout the region.

The Mexican Caribbean, encompassing Cancun, Playa del Carmen and Tulum is one of the largest and most popular international tourism destinations in the world, with over 20 million annual visitors (www.GigNetInc.com and www.GigNet.mx).

About Xtera

Xtera is an innovative provider of subsea and telecoms technology. The company supplies both repeatered and unrepeatered systems, using its high-performance optical amplifiers to deliver traffic directly inland to cities and offering flexibility in working with industry partners to provide the optimum solution. Xtera has considerable expertise in the Caribbean region (www.xtera.com).

About IT International Telecom

International Telecom is a marine network installer offering desktop study, marine route survey, engineering design, installation and maintenance services for submarine cable systems worldwide. For over 20 years IT has been recognized as one of the worlds’ finest marine system providers in a unique position to collaborate with customers and their technology partners. IT has extensive experience in the Caribbean region (www. https://www.ittelecom.com/en/company/profile).

About GigNet

GigNet is the Mexican Caribbean brand of GigNet, Inc., a U.S. based international Digital Infrastructure company. Through its Mexico operating subsidiaries, GigNet, S.A. de C.V., and Sanalto Redes Peninsular, S.A.P.I. de C.V., the Company is a fully licensed telecommunications provider in Mexico. GigNet is actively adding customers to its extensive regional fiber-optic network in the Mexican Caribbean, one of the largest and fastest growing tourism destinations in the world, with over 20 million annual visitors. GigNet is a leader in the digital transformation of the region.

Michael Mahoney
Tel +1 312 535 3321
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www.fbsubmarinepartners.com

MIDLAND, Texas--(BUSINESS WIRE)--ProPetro Holding Corp. (“ProPetro” or “the Company”) (NYSE: PUMP) today announced financial and operational results for the full year and fourth quarter of 2020.

Full Year 2020 and Recent Operational Highlights

• Initiated transition towards lower emissions equipment with investment in fully electric DuraStim® and commitment to purchase Tier IV Dynamic Gas Blending (DGB) dual-fuel pumps.
• Set company safety record with Full Year 2020 Total Recordable Incident Rate (TRIR) of 0.49.
• All time company high operational efficiencies in 2020, including record pumping hours per day and record low downtime per day.
• Reduced Hydraulic Horsepower (HHP) emissions footprint through recent commitment to permanently retire 150,000 HHP of Tier II Diesel equipment.

Full Year 2020 Financial Highlights

• Total revenue of $789 million as compared to the $2.1 billion in the full year 2019.
• Net loss of $107 million as compared to net income of $163 million in the full year 2019.
• Net cash provided by operating activities of $139 million as compared to $455 million in the full year 2019.
• Adjusted EBITDA⁽¹⁾ of $141 million as compared to $519 million in the full year 2019.
• Free Cash Flow⁽²⁾ of approximately $45 million as compared to an approximately $40 million loss in 2019.
• Effective Utilization of 10.2 fleets as compared to 23.9 fleets in the full year 2019.
• Capital expenditures incurred⁽³⁾ of $81 million as compared to $401 million in 2019 (capital expenditures paid as shown on the Statement of Cash Flows of $101 million during 2020).

Fourth Quarter 2020 Highlights

• Total revenue of $154 million as compared to the $134 million in the third quarter.
• Net Loss of $44 million as compared to net loss of $29 million in the third quarter.
• Net cash provided by operating activities of $21 million, consistent with the third quarter.
• Adjusted EBITDA⁽¹⁾ increased to $24 million from $17 million in the third quarter.
• Free Cash Flow⁽²⁾ of approximately $9 million as compared to approximately $17 million in the third quarter.
• Effective Utilization of 9.6 fleets compared to 8.5 fleets in the third quarter.
• Impairment expense of $21 million related to the retirement of approximately 150,000 HHP of Tier II diesel pumping equipment.
• Capital expenditures incurred⁽³⁾ were $21 million as compared to $8 million in the third quarter (capital expenditures paid as shown on the Statement of Cash Flows of $14 million during the fourth quarter).

Phillip Gobe, Chief Executive Officer, commented, “I would like to thank our customers and dedicated workforce for their resilience throughout 2020. Our best-in-class operations team steered our company to record efficiencies and safety performance despite a challenging market for oilfield services. We worked with our customers in the depths of a historic disruption to keep their operations going at a level that fit their needs, pulling through the downturn together as our relationships are designed to do. The innovation and teamwork I observed were impressive to say the least, especially considering the uncertainty we faced in our day to day lives. The accomplishments of ProPetro can be directly attributed to the close collaborative efforts of our teammates, customers and supply chain partners.”

Fourth Quarter 2020 Financial Summary

Revenue for the fourth quarter of 2020 was $154 million, or 15% higher than $134 million for the third quarter of 2020. The increase was primarily attributable to increased activity. During the fourth quarter of 2020, 98.1% of total revenue was associated with pressure pumping services, consistent with the third quarter.

Costs of services, excluding depreciation and amortization of approximately $35.4 million, for the fourth quarter of 2020 increased to $116 million from $100 million during the third quarter of 2020 primarily due to increased activity. As a percentage of pressure pumping segment revenues, pressure pumping costs of services increased to 74.5% from 72.7% in the third quarter of 2020 primarily due to reactivation of fleets.

General and administrative expense was $20 million as compared to $22 million in the third quarter of 2020. General and administrative expense, exclusive of $3 million of stock-based compensation and $2 million of other general and administrative expense, was $15 million, or 10% of revenue, for the fourth quarter of 2020.

Net loss for the fourth quarter of 2020 totaled $44 million, or $0.44 per diluted share, versus a net loss of $29 million, or $0.29 per diluted share, for the third quarter of 2020.

Adjusted EBITDA increased to $24 million for the fourth quarter of 2020 from $17 million in the previous quarter.

Liquidity and Capital Spending

As of December 31, 2020, total cash was $69 million, and the Company was debt free. Total liquidity at the end of 2020 was $121 million, including cash and $52 million of available capacity under the Company’s revolving credit facility.

Capital expenditures incurred during the fourth quarter of 2020 were $21 million mainly consisting of maintenance capital. Capital expenditures paid (as would appear in the investing section of the Statement of Cash Flows) in the fourth quarter were $14 million.

Operational Update

Consistent with the Company’s previously announced plans, ProPetro has initiated a transition to lower emissions equipment through its commitment to purchase 50,000 HHP, or one fleet, of Tier IV DGB equipment as well as an additional investment of $17 million to convert legacy Tier II equipment to Tier IV DGB. The Company also plans to permanently retire 150,000 HHP of Tier II conventional equipment resulting in a $21 million impairment in the fourth quarter.

In the fourth quarter of 2020, the Company had an effective utilization of 9.6 fleets. In the first quarter of 2021 the Company now expects effective utilization of 9.5-11 fleets, which includes the recent extreme winter weather events in the Permian Basin.

Outlook

Mr. Gobe concluded, “Notwithstanding recent extreme weather impacts in Texas, we are excited for the opportunities ahead in 2021 as we work to capitalize on our competitive advantages of efficiency and collaboration. Considering the global recovery in commodity prices, ProPetro is well-positioned to benefit from increasing activity and service pricing in the Permian Basin. Importantly, we will strive to enhance our efficiencies and lean on our strong customer relationships to reinvest in technologies that improve the sustainability of our business. Our team is excited to prove, yet again, their ability to adapt and thrive in all conditions. Along with our customers, supply chain partners and stakeholders, we look forward to the opportunity to develop our sustainable, efficient and resilient business model.”

Conference Call Information

The Company will host a conference call at 8:00 AM Central Time on Wednesday, February 24, 2021 to discuss financial and operating results for the full year and fourth quarter of 2020 and recent developments. This call will also be webcast, along with a presentation slide deck on ProPetro’s website at www.propetroservices.com. The slide deck will be published on the website the morning of the call. To access the conference call, U.S. callers may dial toll free 1-844-340-9046 and international callers may dial 1-412-858-5205. Please call ten minutes ahead of the scheduled start time to ensure a proper connection. A replay of the conference call will be available for one week following the call and can be accessed toll free by dialing 1-877-344-7529 for U.S. callers, 1-855-669-9658 for Canadian callers, as well as 1-412-317-0088 for international callers. The access code for the replay is 10151285.

About ProPetro

ProPetro Holding Corp. is a Midland, Texas-based oilfield services company providing pressure pumping and other complementary services to leading upstream oil and gas companies engaged in the exploration and production of North American unconventional oil and natural gas resources. For more information, please visit www.propetroservices.com.

Forward-Looking Statements

Except for historical information contained herein, the statements and information in this news release are forward-looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Statements that are predictive in nature, that depend upon or refer to future events or conditions or that include the words “may,” “could,” “plan,” “project,” “budget,” “predict,” “pursue,” “target,” “seek,” “objective,” “believe,” “expect,” “anticipate,” “intend,” “estimate,” and other expressions that are predictions of, or indicate, future events and trends and that do not relate to historical matters identify forward-looking statements. Our forward-looking statements include, among other matters, statements about our business strategy, industry, future profitability, expected fleet utilization, sustainability efforts, the future performance of newly improved technology (such as our DuraStim® fleets), expected capital expenditures and the impact of such expenditures on our performance and capital programs. A forward-looking statement may include a statement of the assumptions or bases underlying the forward-looking statement. We believe that we have chosen these assumptions or bases in good faith and that they are reasonable.

Although forward-looking statements reflect our good faith beliefs at the time they are made, forward-looking statements are subject to a number of risks and uncertainties that may cause actual events and results to differ materially from the forward-looking statements. Such risks and uncertainties include the volatility of and recent declines in oil prices, the operational disruption and market volatility resulting from the COVID-19 pandemic and other factors described in the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, particularly the “Risk Factors” sections of such filings, and other filings with the Securities and Exchange Commission (the “SEC”). In addition, the Company may be subject to currently unforeseen risks that may have a materially adverse impact on it, including matters related to shareholder litigation and the SEC investigation. Accordingly, no assurances can be given that the actual events and results will not be materially different than the anticipated results described in the forward-looking statements. Readers are cautioned not to place undue reliance on such forward-looking statements and are urged to carefully review and consider the various disclosures made in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other filings made with the SEC from time to time that disclose risks and uncertainties that may affect the Company’s business. The forward-looking statements in this news release are made as of the date of this news release. ProPetro does not undertake, and expressly disclaims, any duty to publicly update these statements, whether as a result of new information, new developments or otherwise, except to the extent that disclosure is required by law.

Non-GAAP Financial Measures

This presentation references “Adjusted EBITDA” and “Free Cash Flow,” which are non-GAAP financial measures. We define EBITDA as our earnings, before (i) interest expense, (ii) income taxes and (iii) depreciation and amortization. We define Adjusted EBITDA as EBITDA, plus (i) loss/(gain) on disposal of assets, (ii) stock-based compensation, and (iii) other unusual or nonrecurring (income)/expenses, such as impairment charges, severance, costs related to asset acquisitions, costs related to SEC investigation and class action lawsuits and one-time professional and advisory fees. Free cash flow (FCF) is defined as net cash flow provided by operating activities less net cash used in investing activities. These non-GAAP financial measures are not intended to be an alternative to any measure calculated in accordance with GAAP. We believe the presentation of Adjusted EBITDA and Free Cash Flow provide useful information to investors in assessing our financial condition and results of operations. Net income is the GAAP measure most directly comparable to Adjusted EBITDA. Net cash flow provided from operating activities is the GAAP measure most directly comparable to Free Cash Flow. Non-GAAP financial measures have important limitations as analytical tools because they exclude some, but not all, items that affect the most directly comparable GAAP financial measures. You should not consider these non-GAAP financial measures in isolation or as a substitute for an analysis of our results as reported under GAAP. Further, Adjusted EBITDA and Free Cash Flow may be defined differently by other companies in our industry, and our definitions of Adjusted EBITDA and Free Cash Flow may not be comparable to similarly titled measures of other companies, thereby diminishing their utility. Reconciliations of non-GAAP financial measures to the most directly comparable measures calculated in accordance with GAAP, are set forth in the Appendix hereto.

ProPetro Holding Corp
Sam Sledge, 432-688-0012
Chief Strategy and Administrative Officer
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Recognition Adds to Recent Company Distinctions for Excellence in Corporate Responsibility

TOLEDO, Ohio--(BUSINESS WIRE)--Owens Corning (NYSE: OC) has been recognized by the Ethisphere Institute as one of the 2021 World’s Most Ethical Companies.

This marks the fourth consecutive year Owens Corning has been recognized with this honor. The company is one of only two honorees in the Construction and Building Materials industry, underscoring its commitment to leading with integrity and prioritizing ethical business practices. In 2021, the Ethisphere Institute honored 135 companies from 22 countries and 47 industries.

The Ethisphere Institute is a global leader in defining and advancing the standards of ethical business practices.

“Owens Corning is honored to again be recognized by the Ethisphere Institute for our uncompromising standards for ethical business practices,” said Chairman and Chief Executive Officer Brian Chambers. “Our inclusion on this distinguished list speaks to our company’s purpose and reflects the actions of our 19,000 employees who demonstrate the highest standards for integrity in serving our customers, suppliers and other stakeholders.”

Methodology & Scoring

Grounded in Ethisphere’s Ethics Quotient^®, the World’s Most Ethical Companies assessment process includes more than 200 questions on culture, environmental and social practices, ethics and compliance activities, governance, diversity and initiatives to support a strong value chain. The process serves as an operating framework to capture and codify the leading practices of organizations across industries and around the globe. This year’s question set was expanded to gauge how applicants are adapting and responding to the global health pandemic; environmental, social and governance factors; safety; equity; and social justice.

Honorees

The complete list of the 2021 World’s Most Ethical Companies can be found at: https://worldsmostethicalcompanies.com/honorees.

Ethisphere Recognition Adds to Recent Company Distinctions

The Ethisphere recognition is one of several honors Owens Corning has earned for its corporate leadership this year. Additional recent distinctions include:

• Earning Gold Class distinction from S&P Global, the organization’s highest honor for excellence in sustainability performance, for the eighth consecutive year. Owens Corning was the sole Gold Class awardee in the Building Products category. S&P Global is a leading provider of credit ratings, benchmarks and analytics in the global capital and commodity markets.
• Ranking among the 100 Most Sustainable Corporations as recognized by Corporate Knights. Owens Corning placed #15 overall and earned the top spot for the Building Materials Industry Group. The ranking is based on publicly disclosed data spanning 24 key performance indicators for corporate environment, social, and governance (ESG) results. Based on the same data, the company also earned a place on the 2021 Clean200 list (published by Corporate Knights in partnership with As You Sow), which recognizes the world’s most significant publicly traded firms according to the size of clean revenue from products and services that provide solutions for the planet and define the clean energy future.
• Debuting at #16 on the U.S. Environmental Protection Agency’s (EPA’s) National Top 100 List of the largest green power users from the Green Power Partnership. The company is also #11 on the list of Green Power Partners from the Fortune 500^®.
• Earning a 17th-consecutive perfect score on the 2021 Corporate Equality Index (CEI) Best Places to Work for LGBTQ Equality. The CEI is a key benchmarking survey and report on corporate policies and practices related to LGBTQ workplace equality.
• Selection to the Forbes list of America’s Best Large Employers of 2021. The company ranked #131 overall and #6 in the manufacturing industry category.
• Inclusion on CDP’s A List for Climate Change for the fifth year in a row, and A List for Water for the second year in row, as well as recognition as a 2020 CDP Supplier Engagement Leader.

About Owens Corning

Owens Corning is a global building and industrial materials leader. The company’s three integrated businesses are dedicated to the manufacture and advancement of a broad range of insulation, roofing and fiberglass composite materials. Leveraging the talents of 19,000 employees in 33 countries, Owens Corning provides innovative products and sustainable solutions that address energy efficiency, product safety, renewable energy, durable infrastructure, and labor productivity. These solutions provide a material difference to the company’s customers and make the world a better place. Based in Toledo, Ohio, USA, the company posted 2020 sales of $7.1 billion. Founded in 1938, it has been a Fortune 500^® company for 66 consecutive years. For more information, please visit www.owenscorning.com.

Owens Corning Company News / Owens Corning Investor Relations News

Media Inquiries:
Todd Romain
419.248.7826

Investor Inquiries:
Amber Wohlfarth
419.248.5639

Fourth Quarter 2020 Summary (all comparisons year-over-year unless otherwise noted; results exclude aluminum products discontinued operations)

• Net sales of $82.1 million decreased 0.2%, including a 1.2% benefit from currency
• GAAP net income of $6.6 million, including $1.5 million in restructuring and other expenses, increased from $1.6 million in the prior year; adjusted net income of $7.7 million increased 35%
• GAAP EPS of $0.24 increased from $0.06; adjusted EPS of $0.27 increased 35%
• Adjusted EBITDA of $13.8 million increased 21.1%; adjusted EBITDA margin of 16.8% increased 290 basis points

Full Year 2020 Summary (all comparisons year-over-year unless otherwise noted; results exclude aluminum products discontinued operations)

• Net sales of $324.8 million decreased 13.0%; 2019 sales included a 2.0% contribution from the Czech recycling operation, which was divested in Q2 of that year
• GAAP net income of $20.8 million, which includes $9.3 million in restructuring and other expenses, improved from $8.7 million in the prior year; adjusted net income of $28.9 million decreased 29%
• GAAP EPS of $0.74 improved from $0.31; adjusted EPS of $1.03 decreased 30%
• Adjusted EBITDA of $53.9 million decreased 19.7%; adjusted EBITDA margin of 16.6% decreased 140 basis points
• Free cash flow of $41.3 million increased from an outflow of $8.1 million

Notable Strategic Updates

• Intent to exit non-strategic aluminum product lines, including Superform; moved to discontinued operations as of the end of 2020
• Board authorization of $25M share repurchase program
• Introducing 2021 adjusted EPS guidance range of $1.05 to $1.25

MANCHESTER, England--(BUSINESS WIRE)--Luxfer Holdings PLC (NYSE: LXFR), a global manufacturer of highly- engineered industrial materials, today announced financial results for the fourth quarter and full year 2020, ending December 31, 2020. The company also announced its intent to divest of non-strategic Aluminum product lines, including Superform, which will be treated as discontinued operations within financial results.

Fourth Quarter 2020 Results (all comparisons year-over-year unless otherwise noted; results exclude discontinued operations)

Consolidated net sales decreased 0.2% to $82.1 million from $82.3 million, including a favorable foreign currency benefit of $1.0 million, or 1.2%. The sales decrease was due to the negative impact of COVID-19 on industrial end markets, partially offset by growth in alternative fuel including CNG and Hydrogen.

GAAP net income increased to $6.6 million, or $0.24 per diluted share, compared to $1.6 million, or $0.06 per diluted share. Results included $1.5 million in restructuring and other charges, compared to restructuring and other charges of $1.4 million in the prior year period.

Adjusted net income increased 35% to $7.7 million from $5.7 million. Adjusted diluted earnings per share increased 35% to $0.27 from $0.20. Adjusted EBITDA of $13.8 million increased 21.1%. Adjusted EBITDA margin of 16.8% expanded 290 basis points

“We are proud of Luxfer’s strong fourth quarter results despite sales being negatively impacted by the ongoing COVID-19 pandemic. I am grateful to all our employees who delivered strong cash and margin performance throughout the year, while continuing to operate safely. During the year, we made significant progress on our transformation plan, including achieving better-than-expected cost savings and the decision to divest non-strategic aluminum product lines. In addition, our Lean working capital initiatives delivered strong annual free cash flow of $41 million. Given the strength of our free cash flow and low debt levels, we will continue to strategically invest in future growth opportunities, while returning cash to shareholders in the form of dividends and share buy backs,” commented Luxfer’s Chief Executive Officer, Alok Maskara.

Full Year 2020 Results (all comparisons year-over-year unless otherwise noted; results exclude aluminum products discontinued operations)

Consolidated net sales decreased 13.0% to $324.8 million, including a 2.0% decrease due to the divestiture of the Czech recycling operation in the second quarter of 2019. The sales decline was broad-based and driven by the impact of the COVID-19 pandemic, which was more pronounced in industrial end markets while transportation and defense end markets saw a relatively smaller decline.

GAAP net income of $20.8 million or $0.74 per diluted share, was up $12.1 million and $0.43 per diluted share, respectively. These results included $9.3 million in restructuring and other charges, compared to restructuring and other charges of $28.4 million in 2019.

Adjusted net income of $28.9 million decreased 29.3%. Adjusted diluted earnings per share of $1.03, decreased 30%. Adjusted EBITDA of $53.9 million decreased 19.7%. Adjusted EBITDA margin of 16.6% decreased 140 basis points.

Segment Results (all comparisons year-over-year unless otherwise noted; results exclude aluminum products discontinued operations)

Elektron Segment

Fourth Quarter 2020

• Net sales of $47.2 million increased 1.3% as foreign currency exchange benefited sales by 1.1%, or $0.5 million
• Adjusted EBITDA increased 24.7% to $9.1 million (19.3% of sales) primarily due to cost actions

Full Year 2020

• Net sales of $182.9 million decreased 16.8%, including a 3.4% decrease due to the divestiture of the Czech recycling operation; the remaining business was primarily affected by the COVID-19 pandemic impact, specifically in industrial and transportation end markets
• Adjusted EBITDA of $32.6 million decreased 27.2% as cost actions partially offset the impact of volume declines

Gas Cylinders Segment

Fourth Quarter 2020

• Net sales of $34.9 million decreased 2.2%; foreign currency exchange benefited sales by $0.5 million, or 1.4%
• Adjusted EBITDA of $4.7 million increased 14.6% as cost savings more than offset the impact of volume declines

Full Year 2020

• Net sales of $141.9 million decreased 7.6%, primarily due to a decline in industrial and transportation end markets
• Adjusted EBITDA of $21.3 million decreased 4.5%, as cost actions partially offset the impact of volume declines

Intent to Divest Certain Aluminum Products, Including Superform

During 2020, the Company made the decision to divest most aluminum product lines, including Superform, which totaled $53 million in revenue for the year. Based on the approval of Luxfer’s Board of Directors to divest these assets and the probability that such divestiture will be consummated, the associated financial results will be presented as discontinued operations in our fourth quarter and full year 2020 financial statements and prior periods will be restated for consistency.

Maskara remarked, “After a thoughtful review of our portfolio of businesses and the future trajectory of Luxfer, we conclude that it is in the best interest of our shareholders, employees and customers to divest these assets. This will enable us to focus our strategic efforts and capital deployment as we invest to grow the Company. The remaining portfolio has stronger margins and growth profile with a narrow focus on high performance Magnesium Alloys, Zirconium Catalysts and high-pressure Composite Cylinders.”

Capital Resources and Liquidity

Free cash flow was $41.3 million for the year, compared to an outflow of $8.1 million in the prior year. Full year cash usage included approximately $4 million for restructuring as part of the Company’s transformation plan, compared to approximately $25 million in the prior year. During the quarter, the Company paid $3.4 million in ordinary dividends, or $0.125 per share. Given strong cash flow, the Company restored normal level of funding for growth and productivity although certain projects remain delayed due to COVID-19.

At quarter end, the Company had $1.5 million in cash and approximately $146 million in an undrawn revolving credit facility. Net debt totaled $51.9 million, resulting in a net debt to EBITDA ratio of 1.0x. During the fourth quarter, the Company used cash on the balance sheet to prepay $25 million of private placement debt due in September 2021.

2021 Guidance

“While significant market uncertainty remains, we have gained more visibility into customer demand patterns and are providing broad financial guidance for 2021. We expect Adjusted EPS to be in the range of $1.05 - $1.25. We have a strong balance sheet and undrawn credit facility, which provides financial flexibility for us continue investing for growth and explore portfolio opportunities to build an even stronger company,” added Maskara.

Conference Call Information

Luxfer has scheduled a conference call at 8:30 a.m. U.S. Eastern Daylight Time on Wednesday, February 24, 2021, during which management will provide a review of the Company’s financial results for the fourth quarter and full year of 2020. U.S. participants may access the conference call by telephoning +1-877-341-8545. Participants from other countries may access the conference call by telephoning +1-908-982-4601. The participant conference ID code is 9578286. The following link provides access to a webcast for the conference call: https://event.on24.com/wcc/r/3009671/B1E4F0D6E1F5AD524F4944AD0BE526C2

A recording of the conference call will be available for replay two hours after the completion of the call and will remain accessible until the next quarterly report is released. To hear the recording, please call +1-855-859-2056 in the U.S. and +1-404-537-3406 in other countries. Enter conference ID code 9578286 when prompted. Slides used in the presentation and a recording of the call will also be available in the Investor Relations section of the Luxfer website at www.luxfer.com.

Non-GAAP Financial Measures

Luxfer Holdings PLC prepares its financial statements using U.S. Generally Accepted Accounting Principles (GAAP). When a company discloses material information containing non-GAAP financial measures, SEC regulations require that the disclosure include a presentation of the most directly comparable GAAP measure and a reconciliation of the GAAP and non-GAAP financial measures. Management’s inclusion of non-GAAP financial measures in this release is intended to supplement, not replace, the presentation of the financial results in accordance with GAAP. Luxfer management believes that these non-GAAP financial measures, when considered together with the GAAP financial measures, provide information that is useful to investors in understanding period- over-period operating results separate and apart from items that may, or could, have a disproportionately positive or negative impact on results in any period. Management also believes that these non-GAAP financial measures enhance the ability of investors to analyze the Company’s business trends and understand the Company’s performance. In addition, management may utilize non-GAAP financial measures as a guide in the Company’s forecasting, budgeting and long-term planning process. Non-GAAP financial measures should be considered in addition to, and not as a substitute for, or superior to, financial measures presented in accordance with GAAP.

Forward-Looking Statements

This release contains certain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements. Examples of such forward-looking statements include, but are not limited to: (i) statements regarding the Company’s results of operations and financial condition; (ii) statements of plans, objectives or goals of the Company or its management, including those related to financing, products or services; (iii) statements of future economic performance; and (iv) statements of assumptions underlying such statements. Words such as “believes,” “anticipates,” “expects,” “intends,” “forecasts,” and “plans,” and similar expressions, are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved. The Company cautions that several important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to: (i) lower than expected future sales; (ii) increasing competitive industry pressures; (iii) general economic conditions or conditions affecting demand for the products and services it offers, both domestically and internationally, including as a result of post-Brexit regulation, being less favorable than expected; (iv) worldwide economic and business conditions and conditions in the industries in which it operates; (v) fluctuations in the cost of raw materials, utilities and other inputs; (vi) currency fluctuations and hedging risks; (vii) its ability to protect its intellectual property; (viii) the significant amount of indebtedness it has incurred and may incur and the obligations to service such indebtedness and to comply with the covenants contained therein; and (ix) risks related to the impact of the global COVID-19 pandemic, such as the scope and duration of the outbreak, government actions and restrictive measures implemented in response, supply chain disruptions and other impacts to the business, and the Company’s ability to execute business continuity plans, as a result of the COVID-19 pandemic. The Company cautions that the foregoing list of important factors is not exhaustive. These factors are more fully discussed in the sections entitled “Forward-Looking Statements” and “Risk Factors” in its Annual Report on Form 10-K for the year ended December 31, 2019, which was filed with the U.S. Securities and Exchange Commission on March 10, 2020. When relying on forward-looking statements to make decisions with respect to the Company, investors and others should carefully consider the foregoing factors and other uncertainties and events. Such forward-looking statements speak only as of the date on which they are made, and the Company does not undertake any obligation to update or revise any of them, whether because of new information, future events or otherwise.

About Luxfer Holdings PLC (“Luxfer”)

Luxfer is a global manufacturer of highly-engineered industrial materials, which focuses on value creation by using its broad array of technical know-how and proprietary technologies. Luxfer’s high-performance materials, components and high-pressure gas containment devices are used in defense and emergency response, healthcare, transportation and general industrial applications. For more information, please visit www.luxfer.com.

Luxfer is listed on the New York Stock Exchange and its ordinary shares trade under the symbol LXFR.