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: Business Wire; Posted On Aug 06, 2020

Ares Management Completes Sale of Aviator Wind – the Largest Single-Phase, Single-Site Wind Project in the U.S.

LOS ANGELES--(BUSINESS WIRE)--Ares Management Corporation (NYSE: ARES) (“Ares”) announced today that funds managed by its Infrastructure and Power strategy have completed the sale of the 525 MW Aviator Wind project, which was owned, constructed and managed by Ares and developed by Apex Clean Energy. In two recent transactions, Ares sold a majority stake in the project to CMS Energy and a minority interest to Kansai Electric Power Co. Ares retains a small minority interest in the project. Terms of the transaction were not disclosed.

Located in Coke County, Texas, Aviator Wind is the largest single-phase, single-site wind project in the U.S. Ares secured turbine equipment and O&M services from GE Renewable Energy and extended its relationship with BHE Renewables with a tax equity commitment for the project. In late 2019, Ares and Apex structured and secured renewable power purchase agreements with Facebook and McDonald’s to have Aviator Wind support each corporation’s renewable energy goals.

Aviator Wind will support Facebook’s operations in Texas and will help the company reach its goal to reduce its greenhouse gas emissions by 75% and support 100% of its operations with renewable energy in 2020. Facebook’s portion of the Aviator Wind project will be 199.76 MW.

McDonald’s partnership with Aviator Wind was the company’s first-ever long-term, large-scale virtual power purchase agreement and will utilize 220 MW of the project. Once online, this renewable energy project will represent progress toward McDonald’s climate action target to partner with franchisees to reduce greenhouse gas emissions related to McDonald’s restaurants and offices by 36% by 2030.

Aviator Wind is expected to start operations by the end of 2020.

“Our sale to CMS and Kansai is an exciting outcome and exemplifies our value-creation approach to developing and building large-scale renewable power projects,” said Keith Derman, Partner and Co-Head of Ares Infrastructure and Power. “Monetizing a project of this scale during the pandemic demonstrates the stability of climate infrastructure assets and delivers an attractive outcome for our investors.”

“We worked with Apex Clean Energy, a successful renewable energy company and long-standing partner, to complete development and build the largest single-phase, single-site wind project in the U.S.,” said Andy Pike, Partner and Co-Head of Ares Infrastructure and Power. “Further, we are thrilled to help companies like McDonald’s and Facebook achieve their long-term sustainability objectives and hope to continue these relationships in the future.”

Over the last three years, Ares Infrastructure and Power has established itself as a leading climate infrastructure strategy, with more than $2 billion invested across 18 transactions. In 2020, Ares is one of the largest builders of wind projects in the U.S., with nearly 1 GW under construction and expected to realize commercial operations this year.

About Ares Management Corporation

Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager operating integrated businesses across Credit, Private Equity and Real Estate. Ares Management’s investment groups collaborate to deliver innovative investment solutions and consistent and attractive investment returns for fund investors throughout market cycles. Ares Management's global platform had approximately $165 billion of assets under management as of June 30, 2020 with more than 1,300 employees operating across North America, Europe, Asia and Australia, pro forma for the acquisition of SSG Capital Holdings Limited which closed on July 1, 2020.

About Ares Infrastructure and Power

Ares Infrastructure and Power (“AIP”) strategy seeks to provide flexible capital for cash-generating assets across the climate infrastructure, natural gas generation, and energy transportation sectors. AIP leverages a broadly skilled and cohesive team of more than 25 investment professionals with deep domain experience and has deployed nearly $9 billion of capital in more than 200 different infrastructure and power assets and companies.

Contacts

Ares Management Corporation
Mendel Communications
Bill Mendel, 212-397-1030
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or
Carl Drake, 678-538-1981
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or
Brittany Cash, 212-301-0347
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: Business Wire; Posted On Aug 06, 2020

Cheniere Reports Second Quarter 2020 Results and Reconfirms Full Year 2020 Guidance

HOUSTON--(BUSINESS WIRE)--Cheniere Energy, Inc. (NYSE American: LNG):

Summary of Second Quarter 2020 Results (in millions, except LNG data)

	Three Months Ended June 30,							Six Months Ended June 30,
	2020		2019			% Change		2020		2019		% Change
Revenues	$	2,402	$	2,292		5	%	$	5,111	$	4,553	12	%
Net income (loss)¹	$	197	$	(114	)	nm		$	572	$	27	nm
Consolidated Adjusted EBITDA²	$	1,393	$	615		127	%	$	2,432	$	1,265	92	%
LNG exported:
Number of cargoes	78		104			(25	)%	206		191		8	%
Volumes (TBtu)	274		361			(24	)%	727		671		8	%
LNG volumes loaded (TBtu)	278		360			(23	)%	733		669		10	%

Summary Full Year 2020 Guidance (in billions)

	2020
Consolidated Adjusted EBITDA²	$	3.8	-	$	4.1
Distributable Cash Flow²	$	1.0	-	$	1.3

Recent Highlights

Strategic

In April 2020, Midship Pipeline Company, LLC, in which we have an equity investment, placed into service the Midship natural gas pipeline and related compression and interconnect facilities.

Operational

As of July 31, 2020, more than 1,175 cumulative LNG cargoes totaling over 80 million tonnes of LNG have been produced, loaded and exported from our liquefaction projects.

Financial

For the six months ended June 30, 2020, we reported net income¹ of $572 million, Consolidated Adjusted EBITDA² of $2.43 billion, and Distributable Cash Flow² of approximately $830 million.
During the six months ended June 30, 2020, we repurchased an aggregate of 2.9 million shares of our common stock for $155 million under our share repurchase program.
In May 2020, the date of first commercial delivery was reached under the 20-year LNG Sale and Purchase Agreements with PT Pertamina (Persero), Naturgy LNG GOM, Limited, Woodside Energy Trading Singapore Pte Ltd, Iberdrola, S.A. and Électricité de France, S.A. relating to Train 2 of the CCL Project (defined below).
In May 2020, Sabine Pass Liquefaction, LLC (“SPL”) issued an aggregate principal amount of $2.0 billion of 4.500% Senior Secured Notes due 2030. Net proceeds of the offering, along with cash on hand, were used to redeem all of SPL’s outstanding 5.625% Senior Secured Notes due 2021.
In June 2020, we entered into a $2.62 billion three-year delayed draw term loan credit agreement (the “Cheniere Term Loan Facility”), which in July 2020 was increased to $2.695 billion. In July 2020, borrowings under the Cheniere Term Loan Facility were used to (1) redeem all of the remaining outstanding principal amount of the 11.0% Convertible Senior Secured Notes due 2025 issued by Cheniere CCH Holdco II, LLC, subsequent to the $300 million redemption in March 2020, with cash at a price of $1,080 per $1,000 principal amount of notes, (2) repurchase $844 million in aggregate principal amount of outstanding 4.875% Convertible Senior Notes due 2021 issued by Cheniere (the “2021 Convertible Notes”) at individually negotiated prices from a small number of investors, and (3) pay related fees and expenses of the Cheniere Term Loan Facility. The remaining borrowing capacity under the Cheniere Term Loan Facility, approximately $372 million, is expected to be used to repay and/or repurchase a portion of the remaining outstanding principal amount of the 2021 Convertible Notes and for the payment of related fees and expenses.

Liquefaction Projects Update

	SPL Project	CCL Project
	Train 6	Train 3
Project Status	Under Construction	Commissioning
Project Completion Percentage ⁽¹⁾	63.9% ⁽²⁾	90.5% ⁽³⁾
Expected Substantial Completion	2H 2022	1H 2021

Note: Projects update excludes Trains in operation

(1) Project completion percentages as of June 30, 2020

(2) Engineering 96.5% complete, procurement 91.1% complete, and construction 25.3% complete

(3) Engineering 100.0% complete, procurement 100.0% complete, and construction 77.5% complete

Cheniere Energy, Inc. (“Cheniere”) (NYSE American: LNG) reported net income¹ of $197 million, or $0.78 per share—basic and diluted for the three months ended June 30, 2020, compared to a net loss of $114 million, or $0.44 per share—basic and diluted, for the comparable 2019 period. Net income increased during the three months ended June 30, 2020 as compared to the comparable 2019 period primarily due to increased total margins³ and decreased net loss related to interest rate derivatives, partially offset by (i) increased income attributable to non-controlling interest, (ii) increased income tax expense, (iii) costs incurred in response to the COVID-19 pandemic, (iv) increased loss on modification or extinguishment of debt, and (v) increased interest expense. Total margins increased during the three months ended June 30, 2020 primarily due to accelerated revenues recognized from LNG cargoes for which customers have notified us that they will not take delivery and an increase in margins per MMBtu of LNG delivered to customers and recognized in income, partially offset by net losses from changes in fair value of commodity derivatives and a decrease in volumes of LNG recognized in income primarily due to cargoes for which long-term customers have not elected delivery.

Cheniere reported net income of $572 million, or $2.27 per share—basic and $2.26 per share—diluted for the six months ended June 30, 2020, compared to $27 million, or $0.11 per share—basic and diluted, for the comparable 2019 period. Net income increased during the six months ended June 30, 2020 as compared to the comparable 2019 period primarily due to increased total margins, partially offset by (i) increased interest expense, (ii) increased income tax expense, (iii) increased operating and maintenance expenses primarily due to additional Trains in operation and costs incurred in response to the COVID-19 pandemic, (iv) increased income attributable to non-controlling interest, and (v) increased loss on modification or extinguishment of debt. Total margins increased during the six months ended June 30, 2020 primarily due to accelerated revenues recognized from LNG cargoes for which customers have notified us that they will not take delivery, an increase in LNG volumes recognized in revenue primarily due to additional Trains in operation, increased net gains from changes in fair value of commodity derivatives, and slightly increased margins per MMBtu of LNG delivered to customers and recognized in income.

Margins per MMBtu of LNG delivered to customers and recognized in income increased during the three and six months ended June 30, 2020 primarily due to an increase in the proportion of volumes sold pursuant to higher-margin long-term contracts, partially offset by a decrease in market pricing for short-term cargoes sold.

Consolidated Adjusted EBITDA was $1.39 billion for the three months ended June 30, 2020, compared to $615 million for the comparable 2019 period. The increase in Consolidated Adjusted EBITDA during the three months ended June 30, 2020 was primarily due to accelerated revenues recognized from LNG cargoes for which customers have notified us that they will not take delivery and increased margins per MMBtu of LNG delivered to customers and recognized in income, partially offset by a decrease in volumes of LNG recognized in income primarily due to cargoes for which long-term customers have not elected delivery.

Consolidated Adjusted EBITDA was $2.43 billion for the six months ended June 30, 2020, compared to $1.27 billion for the comparable 2019 period. The increase in Consolidated Adjusted EBITDA during the six months ended June 30, 2020 was primarily due to accelerated revenues recognized from LNG cargoes for which customers have notified us that they will not take delivery, an increase in LNG volumes recognized in income primarily due to additional Trains in operation, and slightly increased margins per MMBtu of LNG delivered to customers and recognized in income, partially offset by increased operating and maintenance expenses primarily due to additional Trains in operation.

During the three and six months ended June 30, 2020, we recognized $708 million and $761 million, respectively, in revenues associated with LNG cargoes for which customers have notified us that they will not take delivery, of which $458 million would have otherwise been recognized subsequent to June 30, 2020, if the cargoes were lifted pursuant to the delivery schedules with the customers. LNG revenues during the three months ended June 30, 2020 excluded $53 million that would have otherwise been recognized during the quarter if the cargoes were lifted pursuant to the delivery schedules with the customers, as these revenues were recognized during the three months ended March 31, 2020. Excluding the impact of cargo cancellations related to periods subsequent to June 30, 2020 and those received in prior periods for the current periods, our total revenues would have been $2.00 billion and $4.65 billion for the three and six months ended June 30, 2020, respectively.

During the three and six months ended June 30, 2020, 78 and 206 LNG cargoes, respectively, were exported from our liquefaction projects, none of which were commissioning cargoes. One cargo exported from our liquefaction projects and sold on a delivered basis was in transit as of June 30, 2020.

“We delivered strong results for the second quarter of 2020, despite the challenging LNG market environment and continued global impact of the COVID-19 pandemic, which further proves the resiliency and strength of Cheniere’s business model,” said Jack Fusco, Cheniere’s President and Chief Executive Officer.

“Our customers value the flexibilities our long-term contracts provide, which enable LNG buyers to effectively manage their portfolios through various market conditions, while continuing to underpin Cheniere’s financial stability. Despite continued market challenges, our visibility on achieving our financial goals for the year is unchanged, and today we are reconfirming our full year 2020 guidance of $3.8 to $4.1 billion in Consolidated Adjusted EBITDA and $1.0 to $1.3 billion in Distributable Cash Flow.”

LNG Volume Summary

The following table summarizes the volumes of operational and commissioning LNG that were loaded from our liquefaction projects and for which the financial impact was recognized on our Consolidated Financial Statements during the three and six months ended June 30, 2020:

	Three Months Ended			Six Months Ended
	June 30, 2020			June 30, 2020
(in TBtu)	Operational		Commissioning	Operational		Commissioning
Volumes loaded during the current period	278		—	733		—
Volumes loaded during the prior period but recognized during the current period	29		—	33		—
Less: volumes loaded during the current period and in transit at the end of the period	(2	)	—	(2	)	—
Total volumes recognized in the current period	305		—	764		—

In addition, during the three and six months ended June 30, 2020, we recognized the financial impact of 34 TBtu and 48 TBtu of LNG, respectively, on our Consolidated Financial Statements related to LNG cargoes sourced from third parties.

Cargo Cancellation Revenue Summary

The following table summarizes the timing impacts of revenue recognition related to cargoes for which customers elected to not take delivery on our revenues for the three and six months ended June 30, 2020 (in millions):

	Three Months			Six Months
	Ended			Ended
	June 30, 2020			June 30, 2020
Total revenues	$	2,402		$	5,111
Impact of cargo cancellations recognized in the prior period for deliveries scheduled in the current period	53			—
Impact of cargo cancellations recognized in the current period for deliveries scheduled in subsequent periods	(458		)	(458		)
Total revenues excluding the timing impact of cargo cancellations	$	1,997		$	4,653

Additional Discussion and Analysis of Financial Condition and Results

Details Regarding Second Quarter and Year-to-Date June 30, 2020 Results

Our financial results are reported on a consolidated basis. Our ownership interest in Cheniere Energy Partners, L.P. (“Cheniere Partners”) (NYSE American: CQP) as of June 30, 2020 consisted of 100% ownership of the general partner and a 48.6% limited partner interest.

Income from operations increased $505 million and $1.2 billion during the three and six months ended June 30, 2020, respectively, as compared to the comparable 2019 periods, primarily due to increased total margins as detailed above, partially offset by costs incurred in response to the COVID-19 pandemic. During the six months ended June 30, 2020, the increase was also partially offset by increased operating and maintenance expenses primarily due to additional Trains in operation.

Selling, general and administrative expense included share-based compensation expenses of $19 million and $38 million for the three and six months ended June 30, 2020, respectively, compared to $23 million and $43 million for the comparable 2019 period.

Capital Resources

As of June 30, 2020, we had cash and cash equivalents of $2.0 billion on a consolidated basis, of which $1.3 billion was held by Cheniere Partners. In addition, we had current restricted cash of $505 million designated for the following purposes: $167 million for the SPL Project, $101 million for the CCL Project and $237 million for other restricted purposes.

Liquefaction Projects

SPL Project

Through Cheniere Partners, we operate five natural gas liquefaction Trains and are constructing one additional Train for a total production capacity of approximately 30 million tonnes per annum (“mtpa”) of LNG at the Sabine Pass LNG terminal (the “SPL Project”).

CCL Project

We operate two Trains and are commissioning one additional Train for a total production capacity of approximately 15 mtpa of LNG near Corpus Christi, Texas (the “CCL Project”).

Corpus Christi Stage 3

We are developing an expansion adjacent to the CCL Project for up to seven midscale Trains with an expected total production capacity of approximately 10 mtpa of LNG (“Corpus Christi Stage 3”). We expect to commence construction of the Corpus Christi Stage 3 project upon, among other things, entering into an engineering, procurement, and construction contract and additional commercial agreements, and obtaining adequate financing.

Investor Conference Call and Webcast

We will host a conference call to discuss our financial and operating results for the second quarter 2020 on Thursday, August 6, 2020, at 11 a.m. Eastern time / 10 a.m. Central time. A listen-only webcast of the call and an accompanying slide presentation may be accessed through our website at www.cheniere.com. Following the call, an archived recording will be made available on our website.

^{___________________________}
¹	Net income (loss) as used herein refers to Net income (loss) attributable to common stockholders on our Consolidated Statements of Operations.
²	Non-GAAP financial measure. See “Reconciliation of Non-GAAP Measures” for further details.
³	Total margins as used herein refers to total revenues less cost of sales.

About Cheniere

Cheniere Energy, Inc. is the leading producer and exporter of liquefied natural gas (LNG) in the United States, reliably providing a clean, secure, and affordable solution to the growing global need for natural gas. Cheniere is a full-service LNG provider, with capabilities that include gas procurement and transportation, liquefaction, vessel chartering, and LNG delivery. Cheniere has one of the largest liquefaction platforms in the world, consisting of the Sabine Pass and Corpus Christi liquefaction facilities on the U.S. Gulf Coast, with expected total production capacity of approximately 45 million tonnes per annum of LNG operating or under construction. Cheniere is also pursuing liquefaction expansion opportunities and other projects along the LNG value chain. Cheniere is headquartered in Houston, Texas, and has additional offices in London, Singapore, Beijing, Tokyo, and Washington, D.C.

For additional information, please refer to the Cheniere website at www.cheniere.com and Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, filed with the Securities and Exchange Commission.

Forward-Looking Statements

This press release contains certain statements that may include “forward-looking statements” within the meanings of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical or present facts or conditions, included herein are “forward-looking statements.” Included among “forward-looking statements” are, among other things, (i) statements regarding Cheniere’s financial and operational guidance, business strategy, plans and objectives, including the development, construction and operation of liquefaction facilities, (ii) statements regarding expectations regarding regulatory authorizations and approvals, (iii) statements expressing beliefs and expectations regarding the development of Cheniere’s LNG terminal and pipeline businesses, including liquefaction facilities, (iv) statements regarding the business operations and prospects of third parties, (v) statements regarding potential financing arrangements, (vi) statements regarding future discussions and entry into contracts, (vii) statements relating to the amount and timing of share repurchases, and (viii) statements regarding the COVID-19 pandemic and its impact on our business and operating results. Although Cheniere believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Cheniere’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in Cheniere’s periodic reports that are filed with and available from the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required under the securities laws, Cheniere does not assume a duty to update these forward-looking statements.

(Financial Tables Follow)

Cheniere Energy, Inc.
Consolidated Statements of Operations
(in millions, except per share data)⁽¹⁾
(unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2020			2019			2020			2019
Revenues
LNG revenues	$	2,295		$	2,173		$	4,863		$	4,316
Regasification revenues	68			67			135			133
Other revenues	39			52			113			104
Total revenues	2,402			2,292			5,111			4,553

Operating costs and expenses
Cost of sales (excluding items shown separately below)	803			1,277			1,527			2,491
Operating and maintenance expense	355			295			671			516
Development expense	1			3			5			4
Selling, general and administrative expense	73			77			154			150
Depreciation and amortization expense	233			204			466			348
Impairment expense and loss on disposal of assets	—			4			5			6
Total operating costs and expenses	1,465			1,860			2,828			3,515

Income from operations	937			432			2,283			1,038

Other income (expense)
Interest expense, net of capitalized interest	(407		)	(372		)	(819		)	(619		)
Loss on modification or extinguishment of debt	(43		)	—			(44		)	—
Interest rate derivative loss, net	(25		)	(74		)	(233		)	(109		)
Other income, net	5			16			14			32
Total other expense	(470		)	(430		)	(1,082		)	(696		)

Income before income taxes and non-controlling interest	467			2			1,201			342
Income tax provision	(63		)	—			(194		)	(3		)
Net income	404			2			1,007			339
Less: net income attributable to non-controlling interest	207			116			435			312
Net income attributable to common stockholders	$	197		$	(114	)	$	572		$	27

Net income (loss) per share attributable to common stockholders—basic (2)	$	0.78		$	(0.44	)	$	2.27		$	0.11
Net income (loss) per share attributable to common stockholders—diluted (2)	$	0.78		$	(0.44	)	$	2.26		$	0.11

Weighted average number of common shares outstanding—basic	252.1			257.4			252.6			257.3
Weighted average number of common shares outstanding—diluted	252.4			257.4			253.3			258.6

___________________
(1)	Please refer to the Cheniere Energy, Inc. Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, filed with the Securities and Exchange Commission.
(2)	Earnings per share in the table may not recalculate exactly due to rounding because it is calculated based on whole numbers, not the rounded numbers presented.

Cheniere Energy, Inc.
Consolidated Balance Sheets
(in millions, except share data)⁽¹⁾⁽²⁾

	June 30,			December 31,
	2020			2019
ASSETS	(unaudited)
Current assets
Cash and cash equivalents	$	2,039		$	2,474
Restricted cash	505			520
Accounts and other receivables, net	646			491
Inventory	207			312
Derivative assets	284			323
Other current assets	146			92
Total current assets	3,827			4,212

Property, plant and equipment, net	29,950			29,673
Operating lease assets, net	520			439
Non-current derivative assets	589			174
Goodwill	77			77
Deferred tax assets	337			529
Other non-current assets, net	546			388
Total assets	$	35,846		$	35,492

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	26		$	66
Accrued liabilities	735			1,281
Current debt	237			—
Deferred revenue	23			161
Current operating lease liabilities	179			236
Derivative liabilities	239			117
Other current liabilities	25			13
Total current liabilities	1,464			1,874

Long-term debt, net	30,807			30,774
Non-current operating lease liabilities	347			189
Non-current finance lease liabilities	58			58
Non-current derivative liabilities	161			151
Other non-current liabilities	13			11

Commitments and contingencies

Stockholders’ equity
Preferred stock, $0.0001 par value, 5.0 million shares authorized, none issued	—			—
Common stock, $0.003 par value, 480.0 million shares authorized
Issued: 272.9 million shares at June 30, 2020 and 270.7 million shares at December 31, 2019
Outstanding: 252.2 million shares at June 30, 2020 and 253.6 million shares at December 31, 2019	1			1
Treasury stock: 20.7 million shares and 17.1 million shares at June 30, 2020 and December 31, 2019, respectively, at cost	(870		)	(674		)
Additional paid-in-capital	4,227			4,167
Accumulated deficit	(2,936		)	(3,508		)
Total stockholders’ equity (deficit)	422			(14		)
Non-controlling interest	2,574			2,449
Total equity	2,996			2,435
Total liabilities and stockholders’ equity	$	35,846		$	35,492

___________________
(1)	Please refer to the Cheniere Energy, Inc. Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, filed with the Securities and Exchange Commission.
(2)	Amounts presented include balances held by our consolidated variable interest entity, Cheniere Partners. As of June 30, 2020, total assets and liabilities of Cheniere Partners, which are included in our Consolidated Balance Sheets, were $18.9 billion and $18.1 billion, respectively, including $1.3 billion of cash and cash equivalents and $0.2 billion of restricted cash.

Reconciliation of Non-GAAP Measures

Regulation G Reconciliations

In addition to disclosing financial results in accordance with U.S. GAAP, the accompanying news release contains non-GAAP financial measures. Consolidated Adjusted EBITDA and Distributable Cash Flow are non-GAAP financial measures that we use to facilitate comparisons of operating performance across periods. These non-GAAP measures should be viewed as a supplement to and not a substitute for our U.

Contacts

Cheniere Energy, Inc.

Investors
Randy Bhatia, 713-375-5479
Megan Light, 713-375-5492
or
Media Relations
Eben Burnham-Snyder, 713-375-5764
Jenna Palfrey, 713-375-5491

Read full story here

: Business Wire; Posted On Aug 06, 2020

HollyFrontier Corporation Reports Quarterly Results and Announces Regular Cash Dividend

Reported net loss attributable to HollyFrontier stockholders of $(176.7) million, or $(1.09) per diluted share, and adjusted net loss of $(40.8) million, or $(0.25) per diluted share, for the second quarter
Reported EBITDA of $(46.2) million and adjusted EBITDA of $99.7 million for the second quarter
Returned $57.2 million to shareholders through dividends in the second quarter

DALLAS--(BUSINESS WIRE)--HollyFrontier Corporation (NYSE:HFC) (“HollyFrontier” or the “Company”) today reported second quarter net loss attributable to HollyFrontier stockholders of $(176.7) million, or $(1.09) per diluted share, for the quarter ended June 30, 2020, compared to net income of $196.9 million, or $1.15 per diluted share, for the quarter ended June 30, 2019.

The second quarter results reflect special items that collectively decreased net income by a total of $135.9 million. On a pre-tax basis, these items include long-lived asset impairments at the Cheyenne Refinery and PCLI totaling $429.5 million and corporate restructuring, Cheyenne Refinery severance and integration charges totaling $5.4 million. These items were partially offset by a lower of cost or market inventory valuation adjustment of $269.9 million and HollyFrontier's pro-rata share of Holly Energy Partners, L.P.’s gain on sales-type leases of $19.1 million. Excluding these items, net loss for the current quarter was $(40.8) million ($(0.25) per diluted share) compared to $372.3 million ($2.18 per diluted share) for the second quarter of 2019, which excludes certain items that collectively decreased net income by $175.4 million.

HollyFrontier’s President & CEO, Michael Jennings, commented, “During the second quarter, our focus remained on the safety of our employees, contractors and communities as we all continue to face the COVID-19 pandemic. Despite this challenging environment, HollyFrontier demonstrated its financial strength and we have taken prudent steps to preserve cash. Our strong balance sheet and the superior quality of our assets provides us with a competitive advantage through the cycle.

We are capitalizing on these strengths to continue growth in our renewables business. On June 1, we announced plans to convert the Cheyenne Refinery to renewable diesel production and to construct a pre-treatment unit which will provide feedstock flexibility for the previously announced renewable diesel unit at our Navajo Refinery. With the completion of these projects, HollyFrontier will become one of the largest producers of renewable diesel in the U.S., allowing us to capitalize on the increasing consumer demand for renewable fuels.”

The COVID-19 pandemic caused a decline in U.S. and global economic activity starting in the first quarter of 2020. This decrease reduced both volumes and unit margins across the Company's businesses, resulting in lower gross margins and earnings. Over the course of the second quarter, demand for transportation fuels and lubricants stabilized and showed incremental improvement late in the quarter as compared to the end of the first quarter of 2020.

The Refining segment reported adjusted EBITDA of $25.0 million compared to $556.1 million for the second quarter of 2019. This decrease was primarily due to weak demand for refined products, which resulted in lower utilization rates and weaker product margins across our refining system. Refinery gross margin for the second quarter of 2020 was $8.44 per produced barrel, a 57% decrease compared to $19.64 for the second quarter of 2019. Crude oil charge averaged 349,580 barrels per day (“BPD”) for the current quarter compared to 453,030 BPD for the second quarter 2019.

The Lubricants and Specialty Products segment reported adjusted EBITDA of $15.2 million, compared to $28.9 million in the second quarter 2019. This decrease was primarily due to global weakness in demand within the industrial and automotive end markets during the quarter.

Holly Energy Partners, L.P. (“HEP”) reported EBITDA of $112.5 million for the second quarter 2020 compared to $88.6 million in the second quarter of 2019. The second quarter of 2020 includes a gain on sales-type leases of $33.8 million

For the second quarter of 2020, net cash provided by operations totaled $119.2 million. During the period, HollyFrontier declared and paid a dividend of $0.35 per share to shareholders totaling $57.2 million. At June 30, 2020, the Company's cash and cash equivalents totaled $902.5 million, a $6.6 million decrease over cash and cash equivalents of $909.1 million at March 31, 2020. Additionally, the Company's consolidated debt was $2,480.7 million. The Company’s debt, exclusive of HEP debt, which is nonrecourse to HollyFrontier, was $994.1 million at June 30, 2020.

HollyFrontier also announced today that its Board of Directors declared a regular quarterly dividend of $0.35 per share. The dividend will be paid on September 2, 2020 to holders of record of common stock on August 17, 2020.

The Company has scheduled a webcast conference call for today, August 6, 2020, at 8:30 AM Eastern Time to discuss second quarter financial results. This webcast may be accessed at: https://event.on24.com/wcc/r/2395502/D3710FD67F414A527E9C541851C2AE4B. An audio archive of this webcast will be available using the above noted link through August 20, 2020.

HollyFrontier Corporation, headquartered in Dallas, Texas, is an independent petroleum refiner and marketer that produces high value light products such as gasoline, diesel fuel, jet fuel and other specialty products. HollyFrontier owns and operates refineries located in Kansas, Oklahoma, New Mexico and Utah and markets its refined products principally in the Southwest U.S., the Rocky Mountains extending into the Pacific Northwest and in other neighboring Plains states. In addition, HollyFrontier produces base oils and other specialized lubricants in the U.S., Canada and the Netherlands, and exports products to more than 80 countries. HollyFrontier also owns a 57% limited partner interest and a non-economic general partner interest in Holly Energy Partners, L.P., a master limited partnership that provides petroleum product and crude oil transportation, terminalling, storage and throughput services to the petroleum industry, including HollyFrontier Corporation subsidiaries.

The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995: The statements in this press release relating to matters that are not historical facts are “forward-looking statements” based on management’s beliefs and assumptions using currently available information and expectations as of the date hereof, are not guarantees of future performance and involve certain risks and uncertainties, including those contained in our filings with the Securities and Exchange Commission. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot assure you that our expectations will prove correct. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements. Any differences could be caused by a number of factors, including, but not limited to, the extraordinary market environment and effects of the COVID-19 pandemic, including the continuation of a material decline in demand for refined petroleum products in markets the Company serves; risks and uncertainties with respect to the actions of actual or potential competitive suppliers and transporters of refined petroleum products or lubricant and specialty products in the Company’s markets; the spread between market prices for refined products and market prices for crude oil; the possibility of constraints on the transportation of refined products or lubricant and specialty products, the possibility of inefficiencies, curtailments or shutdowns in refinery operations or pipelines, whether due to infection in the workforce or in response to reductions in demand; effects of governmental and environmental regulations and policies, including the effects of current restrictions on various commercial and economic activities in response to the COVID-19 pandemic; the availability and cost of financing to the Company, the effectiveness of the Company’s capital investments and marketing strategies, the Company’s efficiency in carrying out and consummating construction projects, including the Company's ability to complete announced capital projects, such as the conversion of the Cheyenne Refinery to a renewable diesel facility and the construction of the Artesia renewable diesel unit and pretreatment unit, on time and within budget; the Company's ability to timely obtain or maintain permits, including those necessary for operations or capital projects; the ability of the Company to acquire refined or lubricant product operations or pipeline and terminal operations on acceptable terms and to integrate any existing or future acquired operations; the possibility of terrorist or cyberattacks and the consequences of any such attacks; general economic conditions, including uncertainty regarding the timing, pace and extent of an economic recovery in the United States; further deterioration in gross margins or a prolonged economic slowdown due to COVID-19 could result in an impairment of goodwill and / or additional long-lived asset impairments; and other financial, operational and legal risks and uncertainties detailed from time to time in the Company’s Securities and Exchange Commission filings. The forward-looking statements speak only as of the date made and, other than as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.


*RESULTS OF OPERATIONS* Financial Data (all information in this release is unaudited)

	Three Months Ended June 30,						Change from 2019
	2020			2019			Change			Percent
	(In thousands, except per share data)
Sales and other revenues	$	2,062,930		$	4,782,615		$	(2,719,685	)	(57	)%
Operating costs and expenses:
Cost of products sold:
Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment)	1,576,996			3,704,884			(2,127,888		)	(57	)
Lower of cost or market inventory valuation adjustment	(269,904		)	47,801			(317,705		)	(665	)
	1,307,092			3,752,685			(2,445,593		)	(65	)
Operating expenses	303,359			333,252			(29,893		)	(9	)
Selling, general and administrative expenses	75,369			85,317			(9,948		)	(12	)
Depreciation and amortization	130,178			126,908			3,270			3
Long-lived asset and goodwill impairments	436,908			152,712			284,196			186
Total operating costs and expenses	2,252,906			4,450,874			(2,197,968		)	(49	)
Income (loss) from operations	(189,976		)	331,741			(521,717		)	(157	)

Other income (expense):
Earnings of equity method investments	2,156			1,783			373			21
Interest income	1,506			4,588			(3,082		)	(67	)
Interest expense	(32,695		)	(34,264		)	1,569			(5	)
Gain on sales-type leases	33,834			—			33,834			—
Gain on foreign currency transactions	2,285			2,213			72			3
Other, net	1,572			92			1,480			1,609
	8,658			(25,588		)	34,246			(134	)
Income (loss) before income taxes	(181,318		)	306,153			(487,471		)	(159	)
Income tax expense (benefit)	(30,911		)	89,336			(120,247		)	(135	)
Net income (loss)	(150,407		)	216,817			(367,224		)	(169	)
Less net income attributable to noncontrolling interest	26,270			19,902			6,368			32
Net income (loss) attributable to HollyFrontier stockholders	$	(176,677	)	$	196,915		$	(373,592	)	(190	)%

Earnings (loss) per share attributable to HollyFrontier stockholders:
Basic	$	(1.09	)	$	1.16		$	(2.25	)	(194	)%
Diluted	$	(1.09	)	$	1.15		$	(2.24	)	(195	)%
Cash dividends declared per common share	$	0.35		$	0.33		$	0.02		6	%
Average number of common shares outstanding:
Basic	161,889			169,356			(7,467		)	(4	)%
Diluted	161,889			170,547			(8,658		)	(5	)%

EBITDA	$	(46,221	)	$	442,835		$	(489,056	)	(110	)%
Adjusted EBITDA	$	99,711		$	646,985		$	(547,274	)	(85	)%


	Six Months Ended June 30,						Change from 2019
	2020			2019			Change			Percent
	(In thousands, except per share data)
Sales and other revenues	$	5,463,475		$	8,679,862		$	(3,216,387	)	(37	)%
Operating costs and expenses:
Cost of products sold:
Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment)	4,270,722			6,904,089			(2,633,367		)	(38	)
Lower of cost or market inventory valuation adjustment	290,560			(184,545		)	475,105			(257	)
	4,561,282			6,719,544			(2,158,262		)	(32	)
Operating expenses	631,704			664,844			(33,140		)	(5	)
Selling, general and administrative expenses	163,106			173,351			(10,245		)	(6	)
Depreciation and amortization	270,753			248,329			22,424			9
Long-lived asset and goodwill impairments	436,908			152,712			284,196			186
Total operating costs and expenses	6,063,753			7,958,780			(1,895,027		)	(24	)
Income (loss) from operations	(600,278		)	721,082			(1,321,360		)	(183	)

Other income (expense):
Earnings of equity method investments	3,870			3,883			(13		)	—
Interest income	5,579			10,963			(5,384		)	(49	)
Interest expense	(55,334		)	(70,911		)	15,577			(22	)
Gain on sales-type leases	33,834			—			33,834			—
Loss on early extinguishment of debt	(25,915		)	—			(25,915		)	—
Gain (loss) on foreign currency transactions	(1,948		)	4,478			(6,426		)	(144	)
Other, net	3,422			649			2,773			427
	(36,492		)	(50,938		)	14,446			(28	)
Income (loss) before income taxes	(636,770		)	670,144			(1,306,914		)	(195	)
Income tax expense (benefit)	(193,077		)	176,841			(369,918		)	(209	)
Net income (loss)	(443,693		)	493,303			(936,996		)	(190	)
Less net income attributable to noncontrolling interest	37,607			43,333			(5,726		)	(13	)
Net income (loss) attributable to HollyFrontier stockholders	$	(481,300	)	$	449,970		$	(931,270	)	(207	)%

Earnings (loss) per share attributable to HollyFrontier stockholders:
Basic	$	(2.97	)	$	2.64		$	(5.61	)	(213	)%
Diluted	$	(2.97	)	$	2.62		$	(5.59	)	(213	)%
Cash dividends declared per common share	$	0.70		$	0.66		$	0.04		6	%
Average number of common shares outstanding:
Basic	161,882			170,100			(8,218		)	(5	)%
Diluted	161,882			171,264			(9,382		)	(5	)%

EBITDA	$	(353,869	)	$	935,088		$	(1,288,957	)	(138	)%
Adjusted EBITDA	$	368,480		$	928,782		$	(560,302	)	(60	)%


Balance Sheet Data
	June 30,		December 31,
	2020		2019
	(In thousands)
Cash and cash equivalents	$	902,509	$	885,162
Working capital	$	1,470,492	$	1,620,261
Total assets	$	11,063,820	$	12,164,841
Long-term debt	$	2,480,746	$	2,455,640
Total equity	$	5,914,511	$	6,509,426

Segment Information

Our operations are organized into three reportable segments, Refining, Lubricants and Specialty Products and HEP. Our operations that are not included in the Refining, Lubricants and Specialty Products and HEP segments are included in Corporate and Other. Intersegment transactions are eliminated in our consolidated financial statements and are included in Eliminations. Corporate and Other and Eliminations are aggregated and presented under the Corporate, Other and Eliminations column.

The Refining segment includes the operations of our El Dorado, Tulsa, Navajo, Cheyenne and Woods Cross refineries and HollyFrontier Asphalt Company LLC (“HFC Asphalt”) (aggregated as a reportable segment). Refining activities involve the purchase and refining of crude oil and wholesale and branded marketing of refined products, such as gasoline, diesel fuel and jet fuel. These petroleum products are primarily marketed in the Mid-Continent, Southwest and Rocky Mountain regions of the United States. HFC Asphalt operates various terminals in Arizona, New Mexico and Oklahoma.

The Lubricants and Specialty Products segment involves Petro-Canada Lubricants Inc.’s (“PCLI”) production operations, located in Mississauga, Ontario, that include lubricant products such as base oils, white oils, specialty products and finished lubricants and the operations of our Petro-Canada Lubricants business that includes the marketing of products to both retail and wholesale outlets through a global sales network with locations in Canada, the United States, Europe and China. Additionally, the Lubricants and Specialty Products segment includes specialty lubricant products produced at our Tulsa refineries that are marketed throughout North America and are distributed in Central and South America, the operations of Red Giant Oil, one of the largest suppliers of locomotive engine oil in North America and the operations of Sonneborn, a producer of specialty hydrocarbon chemicals such as white oils, petrolatums and waxes with manufacturing facilities in the United States and Europe.

The HEP segment involves all of the operations of HEP, a consolidated variable interest entity, which owns and operates logistics assets consisting of petroleum product and crude oil pipelines, terminals, tankage, loading rack facilities and refinery processing units in the Mid-Continent, Southwest and Rocky Mountain regions of the United States. The HEP segment also includes a 75% interest in UNEV Pipeline, LLC (an HEP consolidated subsidiary), and a 50% ownership interest in each of Osage Pipeline Company, LLC, Cheyenne Pipeline LLC and Cushing Connect Pipeline & Terminal LLC. Revenues from the HEP segment are earned through transactions with unaffiliated parties for pipeline transportation, rental and terminalling operations as well as revenues relating to pipeline transportation services provided for our refining operations. Due to certain basis differences, our reported amounts for the HEP segment may not agree to amounts reported in HEP's periodic public filings.


	Refining			Lubricants and Specialty Products			HEP		Corporate, Other and Eliminations			Consolidated Total
	(In thousands)
Three Months Ended June 30, 2020
Sales and other revenues:
Revenues from external customers	$	1,690,042		$	353,644		$	19,244	$	—		$	2,062,930
Intersegment revenues	37,462			3,643			95,563		(136,668		)	—
	$	1,727,504		$	357,287		$	114,807	$	(136,668	)	$	2,062,930
Cost of products sold (exclusive of lower of cost or market inventory)	$	1,433,437		$	258,347		$	—	$	(114,788	)	$	1,576,996
Lower of cost or market inventory valuation adjustment	$	(269,904	)	$	—		$	—	$	—		$	(269,904	)
Operating expenses	$	239,359		$	47,840		$	34,737	$	(18,577	)	$	303,359
Selling, general and administrative expenses	$	32,811		$	35,919		$	2,535	$	4,104		$	75,369
Depreciation and amortization	$	81,694		$	19,779		$	24,008	$	4,697		$	130,178
Long-lived asset impairment	$	215,242		$	204,708		$	16,958	$	—		$	436,908
Income (loss) from operations	$	(5,135	)	$	(209,306	)	$	36,569	$	(12,104	)	$	(189,976	)
Income (loss) before interest and income taxes	$	(5,135	)	$	(209,257	)	$	73,028	$	(8,765	)	$	(150,129	)
Net income attributable to noncontrolling interest	$	—		$	—		$	650	$	25,620		$	26,270
Earnings of equity method investments	$	—		$	—		$	2,156	$	—		$	2,156
Capital expenditures	$	12,102		$	4,311		$	11,798	$	17,776		$	45,987

Three Months Ended June 30, 2019
Sales and other revenues:
Revenues from external customers	$	4,208,776		$	545,346		$	28,382	$	111		$	4,782,615
Intersegment revenues	88,484			—			102,369		(190,853		)	—
	$	4,297,260		$	545,346		$	130,751	$	(190,742	)	$	4,782,615
Cost of products sold (exclusive of lower of cost or market inventory)	$	3,458,832		$	415,353		$	—	$	(169,301	)	$	3,704,884
Lower of cost or market inventory valuation adjustment	$	47,801		$	—		$	—	$	—		$	47,801
Operating expenses	$	252,715		$	59,122		$	40,608	$	(19,193	)	$	333,252
Selling, general and administrative expenses	$	29,638		$	42,087		$	1,988	$	11,604		$	85,317
Depreciation and amortization	$	76,225		$	23,020		$	24,241	$	3,422		$	126,908
Goodwill impairment	$	—		$	152,712		$	—	$	—		$	152,712
Income (loss) from operations	$	432,049		$	(146,948	)	$	63,914	$	(17,274	)	$	331,741
Income (loss) before interest and income taxes	$	432,049		$	(146,848	)	$	65,807	$	(15,179	)	$	335,829
Net income attributable to noncontrolling interest	$	—		$	—		$	688	$	19,214		$	19,902
Earnings of equity method investments	$	—		$	—		$	1,783	$	—		$	1,783
Capital expenditures	$	33,899		$	9,331		$	7,034	$	6,470		$	56,734

	Refining			Lubricants and Specialty Products			HEP		Corporate, Other and Eliminations			Consolidated Total
	(In thousands)
Six Months Ended June 30, 2020
Sales and other revenues:
Revenues from external customers	$	4,540,662		$	877,143		$	45,670	$	—		$	5,463,475
Intersegment revenues	121,708			6,747			196,991		(325,446		)	—
	$	4,662,370		$	883,890		$	242,661	$	(325,446	)	$	5,463,475
Cost of products sold (exclusive of lower of cost or market inventory)	$	3,902,188		$	649,727		$	—	$	(281,193	)	$	4,270,722
Lower of cost or market inventory valuation adjustment	$	290,560		$	—		$	—	$	—		$	290,560
Operating expenses	$	498,533		$	101,971		$	69,718	$	(38,518	)	$	631,704
Selling, general and administrative expenses	$	63,811		$	84,881		$	5,237	$	9,177		$	163,106
Depreciation and amortization	$	171,873		$	41,828		$	47,986	$	9,066		$	270,753
Long-lived asset impairment	$	215,242		$	204,708		$	16,958	$	—		$	436,908
Income (loss) from operations	$	(479,837	)	$	(199,225	)	$	102,762	$	(23,978	)	$	(600,278	)
Income (loss) before interest and income taxes	$	(479,837	)	$	(198,967	)	$	115,526	$	(23,737	)	$	(587,015	)
Net income attributable to noncontrolling interest	$	—		$	—		$	1,865	$	35,742		$	37,607
Earnings of equity method investments	$	—		$	—		$	3,870	$	—		$	3,870
Capital expenditures	$	65,116		$	13,392		$	30,740	$	20,488		$	129,736

Six Months Ended June 30, 2019
Sales and other revenues:
Revenues from external customers	$	7,581,442		$	1,038,680		$	59,520	$	220		$	8,679,862
Intersegment revenues	163,228			—			205,728		(368,956		)	—
	$	7,744,670		$	1,038,680		$	265,248	$	(368,736	)	$	8,679,862
Cost of products sold (exclusive of lower of cost or market inventory)	$	6,421,372		$	804,370		$	—	$	(321,653	)	$	6,904,089
Lower of cost or market inventory valuation adjustment	$	(184,545	)	$	—		$	—	$	—		$	(184,545	)
Operating expenses	$	517,212		$	112,681		$	78,121	$	(43,170	)	$	664,844
Selling, general and administrative expenses	$	56,615		$	81,806		$	4,608	$	30,322		$	173,351
Depreciation and amortization	$	150,640		$	43,191		$	48,071	$	6,427		$	248,329
Goodwill impairment	$	—		$	152,712		$	—	$	—		$	152,712
Income (loss) from operations	$	783,376		$	(156,080	)	$	134,448	$	(40,662	)	$	721,082
Income (loss) before interest and income taxes	$	783,376		$	(155,843	)	$	138,132	$	(35,573	)	$	730,092
Net income attributable to noncontrolling interest	$	—		$	—		$	2,520	$	40,813		$	43,333
Earnings of equity method investments	$	—		$	—		$	3,883	$	—		$	3,883
Capital expenditures	$	75,662		$	17,190		$	17,752	$	9,865		$	120,469

	Refining			Lubricants and Specialty Products			HEP		Corporate, Other and Eliminations			Consolidated Total
	(In thousands)
June 30, 2020
Cash and cash equivalents	$	15,652		$	189,571		$	18,913	$	678,373		$	902,509
Total assets	$	6,327,809		$	1,910,431		$	2,215,053	$	610,527		$	11,063,820
Long-term debt	$	—		$	—		$	1,486,648	$	994,098		$	2,480,746

December 31, 2019
Cash and cash equivalents	$	9,755		$	169,277		$	13,287	$	692,843		$	885,162
Total assets	$	7,189,094		$	2,223,418		$	2,205,437	$	546,892		$	12,164,841
Long-term debt	$	—		$	—		$	1,462,031	$	993,609		$	2,455,640

Contacts

Richard L. Voliva III, Executive Vice President and Chief Financial Officer
Craig Biery, Director, Investor Relations
HollyFrontier Corporation
214-954-6510

Read full story here

: Business Wire; Posted On Aug 06, 2020

Bloom Energy Corporation Announces Proposed Convertible Senior Notes Offering

SAN JOSE, Calif.--(BUSINESS WIRE)--Bloom Energy Corporation (NYSE: BE) today announced its intention to offer, subject to market and other conditions, $135,000,000 aggregate principal amount of green convertible senior notes due 2025 (the “notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). Bloom Energy also expects to grant the initial purchaser of the notes an option to purchase, for settlement within a period of 13 days from, and including, the date notes are first issued, up to an additional $15,000,000 principal amount of notes.

The notes will be senior, unsecured obligations of Bloom Energy, will accrue interest payable semi-annually in arrears and will mature on August 15, 2025, unless earlier repurchased, redeemed or converted. Noteholders will have the right to convert their notes in certain circumstances and during specified periods. Bloom Energy will settle conversions by paying or delivering, as applicable, cash, shares of its Class A common stock or a combination of cash and shares of its Class A common stock, at Bloom Energy’s election. The notes will be redeemable, in whole or in part, for cash at Bloom Energy’s option at any time, and from time to time, on or after August 21, 2023 and on or before the 26th scheduled trading day immediately before the maturity date, but only if the last reported sale price per share of Bloom Energy’s Class A common stock exceeds 130% of the conversion price for a specified period of time. The redemption price will be equal to the principal amount of the notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. The interest rate, initial conversion rate and other terms of the notes will be determined at the pricing of the offering.

Bloom Energy intends to use the net proceeds to offer to redeem a portion of its outstanding 10% Convertible Promissory Notes due 2021. Bloom Energy intends to use any remaining net proceeds not used for such redemption for other business purposes. In addition, Bloom Energy intends to allocate an amount equal to the net proceeds from the sale of the notes to refinance or finance, in whole or in part, new or on-going projects that meet the “Eligibility Criteria” as defined in the offering disclosure in respect of the notes.

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

About Bloom Energy

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

Forward-Looking Statements

This press release includes forward-looking statements, including statements regarding the completion, timing and size of the proposed offering, the intended use of the proceeds and the terms of the notes being offered. Forward-looking statements represent Bloom Energy’s current expectations regarding future events and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those implied by the forward-looking statements. Among those risks and uncertainties are market conditions, including market interest rates, the trading price and volatility of Bloom Energy’s Class A common stock and risks relating to Bloom Energy’s business, including those described in periodic reports that Bloom Energy files from time to time with the SEC. Bloom Energy may not consummate the proposed offering described in this press release and, if the proposed offering is consummated, cannot provide any assurances regarding the final terms of the offer or the notes or its ability to effectively apply the net proceeds as described above. The forward-looking statements included in this press release speak only as of the date of this press release, and Bloom Energy does not undertake to update the statements included in this press release for subsequent developments, except as may be required by law.

Contacts

Investor Relations:
Mark Mesler
Bloom Energy
+1 (408) 543-1743
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Media:
Erica Osian
Bloom Energy
+1 (401) 714-6883
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: Business Wire; Posted On Aug 06, 2020

Insights on the Flue Gas Treatment Systems Global Market to 2027 - The US Market is Estimated at $16.9 Billion - ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)--The "Flue Gas Treatment Systems - Global Market Trajectory & Analytics" report has been added to ResearchAndMarkets.com's offering.

The publisher brings years of research experience to the 7th edition of this report. The 188-page report presents concise insights into how the pandemic has impacted production and the buy side for 2020 and 2021. A short-term phased recovery by key geography is also addressed.

Global Flue Gas Treatment Systems Market to Reach $80.9 Billion by 2027

Amid the COVID-19 crisis, the global market for Flue Gas Treatment Systems estimated at US$57.5 Billion in the year 2020, is projected to reach a revised size of US$80.9 Billion by 2027, growing at a CAGR of 5% over the analysis period 2020-2027.

Particulate Control, one of the segments analyzed in the report, is projected to record a 4.7% CAGR and reach US$36.7 Billion by the end of the analysis period. After an early analysis of the business implications of the pandemic and its induced economic crisis, growth in the Flue Gas Desulfurization segment is readjusted to a revised 4.8% CAGR for the next 7-year period.

The U.S. Market is Estimated at $16.9 Billion, While China is Forecast to Grow at 4.8% CAGR

The Flue Gas Treatment Systems market in the U.S. is estimated at US$16.9 Billion in the year 2020. China, the world`s second largest economy, is forecast to reach a projected market size of US$14.4 Billion by the year 2027 trailing a CAGR of 4.8% over the analysis period 2020 to 2027. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 4.7% and 4.2% respectively over the 2020-2027 period. Within Europe, Germany is forecast to grow at approximately 4.7% CAGR.

DeNOx Segment to Record 5.4% CAGR

In the global DeNOx segment, USA, Canada, Japan, China and Europe will drive the 5.5% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$7.5 Billion in the year 2020 will reach a projected size of US$10.9 Billion by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$9.1 Billion by the year 2027.

Competitors identified in this market include, among others:

AECOM
ANDRITZ AG
Babcock & Wilcox Enterprises, Inc.
Bilfinger Engineering & Technologies GmbH
Burns & Mcdonnell, Inc.
China Boqi Environmental (Holding) Co., Ltd.
China Everbright International Ltd
Chiyoda Corporation
Clyde Bergemann Power Group
Doosan Lentjes GmbH
Ducon Technologies, Inc.
FLSmidth & Co A/S
Fuel Tech Inc.
General Electric Company
Guodian Technology & Environment Group Corporation Limited
Haldor Topsoe A/S
Hamon Corporation
John Wood Group PLC
Kawasaki Heavy Industries Ltd.
LAB SA
Macrotek Inc.
Marsulex Environmental Technologies
Mitsubishi Hitachi Power Systems Ltd.
Rafako SA
Siemens AG
Steinmuller Babcock Environment GmbH
Thermax Global
Valmet Corporation

Key Topics Covered:

I. INTRODUCTION, METHODOLOGY & REPORT SCOPE

II. EXECUTIVE SUMMARY

1. MARKET OVERVIEW

Global Competitor Market Shares
Flue Gas Treatment Systems Competitor Market Share Scenario Worldwide (in %): 2019 & 2025
Impact of Covid-19 and a Looming Global Recession

2. FOCUS ON SELECT PLAYERS

3. MARKET TRENDS & DRIVERS

4. GLOBAL MARKET PERSPECTIVE

III. MARKET ANALYSIS

IV. COMPETITION

Total Companies Profiled: 38

For more information about this report visit https://www.researchandmarkets.com/r/pmivy8

Contacts

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: Business Wire; Posted On Aug 06, 2020

Global Partners Reports Second-Quarter 2020 Financial Results

WALTHAM, Mass.--(BUSINESS WIRE)--Global Partners LP (NYSE: GLP) today reported financial results for the quarter ended June 30, 2020.

“We delivered strong results in the second quarter, reflecting the extreme contango market structure,” said Eric Slifka, the Partnership’s President and Chief Executive Officer. “Our terminal network enabled us to benefit from a dramatic shift in the forward product pricing curve in Q2, leading to a $73.5 million increase in Wholesale product margin from the same period last year. The Q2 increase sharply contrasts with the nearly $30 million decline in Wholesale segment product margin in the first quarter this year, which reflected less favorable market conditions due in part to the steepening forward curve. In our Gasoline Distribution and Station Operations (GDSO) segment, our second-quarter 2020 results benefited from higher fuel margins that more than offset a year-over-year decline in volume related to COVID-19. Business activity remains below pre-pandemic levels. In comparison with July 2019, in July 2020 retail gas volume was down mid-teens on a percentage basis and convenience store sales were down less than 10%. That said, the extent to which the COVID-19 pandemic may affect our operating results remains uncertain.

“I’m extremely proud of our entire team, which continues to provide essential products and services while ensuring the safety of our guests, customers, suppliers and one another,” Slifka said. “Our office staff has adapted to working remotely and our retail stations and terminals are fully operational.”

Financial Highlights

Net income attributable to the Partnership was $76.3 million, or $2.17 per diluted common limited partner unit, for the second quarter of 2020 compared with net income attributable to the Partnership of $14.5 million, or $0.36 per diluted common limited partner unit, for the same period of 2019.

Earnings before interest, taxes, depreciation and amortization (EBITDA) was $125.7 million in the second quarter of 2020 compared with $64.0 million in the comparable period of 2019.

Adjusted EBITDA was $126.6 million in the second quarter of 2020 versus $62.8 million in the year-earlier period.

Distributable cash flow (DCF) was $95.8 million in the second quarter of 2020 compared with $28.1 million in the same period of 2019.

Gross profit in the second quarter of 2020 was $239.9 million compared with $167.1 million in the second quarter of 2019, primarily due to more favorable market conditions in the Wholesale segment.

Combined product margin, which is gross profit adjusted for depreciation allocated to cost of sales, was $260.1 million in the second quarter of 2020 compared with $188.0 million in the second quarter of 2019.

Combined product margin, EBITDA, Adjusted EBITDA, and DCF are non-GAAP (Generally Accepted Accounting Principles) financial measures, which are explained in greater detail below under “Use of Non-GAAP Financial Measures.” Please refer to Financial Reconciliations included in this news release for reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures for the three and six months ended June 30, 2020 and 2019.

GDSO segment product margin was $145.6 million in the second quarter of 2020 compared with $145.4 million in the same period of 2019, reflecting higher fuel margins largely offset by lower station operations product margins due primarily to the reduction in in-store traffic.

Wholesale segment product margin was $111.5 million in the second quarter of 2020 compared with $38.0 million in the same period of 2019, due to a significant recovery in the supply/demand imbalance at the end of the first quarter and resultant flattening of the forward product pricing curve.

Commercial segment product margin was $3.0 million in the second quarter of 2020 compared with $4.5 million in the second quarter of 2019, primarily reflecting a decrease in bunkering activity.

Sales were $1.5 billion in the second quarter of 2020 compared with $3.5 billion in the second quarter of 2019, due to lower volume and a decrease in prices. Wholesale segment sales were $0.8 billion in the second quarter of 2020 compared with $2.0 billion in the second quarter of 2019. GDSO segment sales were $0.6 billion in the second quarter of 2020 compared with $1.1 billion in the second quarter of 2019. Commercial segment sales were $133.0 million in the second quarter of 2020 compared with $356.8 million in the second quarter of 2019.

Volume in the second quarter of 2020 was 1.2 billion gallons compared with 1.6 billion gallons in the same period of 2019. Wholesale segment volume was 794.4 million gallons in the second quarter of 2020 compared with 1.0 billion gallons in the same period of 2019. GDSO volume was 278.6 million gallons in the second quarter of 2020 compared with 411.0 million gallons in the second quarter of 2019. Commercial segment volume was 125.2 million gallons in the second quarter of 2020 compared with 183.3 million gallons in the second quarter of 2019.

Recent Developments

Global’s Board of Directors announced a quarterly cash distribution of $0.45875 per unit, or $1.835 per unit on an annualized basis, on all of its outstanding common units for the period from April 1 to June 30, 2020. The distribution will be paid August 14, 2020 to unitholders of record as of the close of business on August 10, 2020.

Business Outlook

“There is a continuing uncertainty surrounding the short- and long-term impact of COVID-19 to our businesses. While we believe that our integrated business model, diversified product portfolio and versatile asset base provide us with operating and financial flexibility, our performance in the quarters ahead will be affected by the extent and duration of the pandemic,” Slifka said.

Any COVID-19 related events or conditions, or other unforeseen consequences of COVID-19 could significantly adversely affect our business and financial condition and the business and financial condition of our customers, suppliers and counterparties. The ultimate extent of the impact of COVID-19 on our business, financial condition and results of operations depends in large part on future developments which are uncertain and cannot be predicted at this time. That uncertainty includes the duration (including its potential return) of the COVID-19 pandemic, the geographic regions so impacted, the extent of said impact within specific boundaries of those areas and, lastly, the impact to the local, state and national economies.

Financial Results Conference Call

Management will review the Partnership’s second-quarter 2020 financial results in a teleconference call for analysts and investors today.

Time:	10:00 a.m. ET
Dial-in numbers:	(877) 709-8155 (U.S. and Canada)
	(201) 689-8881 (International)

Due to the expected high demand on our conference call provider, please plan to dial in to the call at least 20 minutes prior to the start time.

The call also will be webcast live and archived on Global’s website, https://ir.globalp.com.

Use of Non-GAAP Financial Measures

Product Margin

Global Partners views product margin as an important performance measure of the core profitability of its operations. The Partnership reviews product margin monthly for consistency and trend analysis. Global Partners defines product margin as product sales minus product costs. Product sales primarily include sales of unbranded and branded gasoline, distillates, residual oil, renewable fuels, crude oil and propane, as well as convenience store sales, gasoline station rental income and revenue generated from logistics activities when the Partnership engages in the storage, transloading and shipment of products owned by others. Product costs include the cost of acquiring products and all associated costs including shipping and handling costs to bring such products to the point of sale as well as product costs related to convenience store items and costs associated with logistics activities. The Partnership also looks at product margin on a per unit basis (product margin divided by volume). Product margin is a non‑GAAP financial measure used by management and external users of the Partnership’s consolidated financial statements to assess its business. Product margin should not be considered an alternative to net income, operating income, cash flow from operations, or any other measure of financial performance presented in accordance with GAAP. In addition, product margin may not be comparable to product margin or a similarly titled measure of other companies.

EBITDA and Adjusted EBITDA

EBITDA and Adjusted EBITDA are non-GAAP financial measures used as supplemental financial measures by management and may be used by external users of Global Partners’ consolidated financial statements, such as investors, commercial banks and research analysts, to assess the Partnership’s:

compliance with certain financial covenants included in its debt agreements;
financial performance without regard to financing methods, capital structure, income taxes or historical cost basis;
ability to generate cash sufficient to pay interest on its indebtedness and to make distributions to its partners;
operating performance and return on invested capital as compared to those of other companies in the wholesale, marketing, storing and distribution of refined petroleum products, gasoline blendstocks, renewable fuels, crude oil and propane, and in the gasoline stations and convenience stores business, without regard to financing methods and capital structure; and
viability of acquisitions and capital expenditure projects and the overall rates of return of alternative investment opportunities.

Adjusted EBITDA is EBITDA further adjusted for gains or losses on the sale and disposition of assets and goodwill and long-lived asset impairment charges. EBITDA and Adjusted EBITDA should not be considered as alternatives to net income, operating income, cash flow from operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA and Adjusted EBITDA exclude some, but not all, items that affect net income, and these measures may vary among other companies. Therefore, EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures of other companies.

Distributable Cash Flow

Distributable cash flow is an important non-GAAP financial measure for the Partnership’s limited partners since it serves as an indicator of success in providing a cash return on their investment. Distributable cash flow as defined by the Partnership’s partnership agreement is net income plus depreciation and amortization minus maintenance capital expenditures, as well as adjustments to eliminate items approved by the audit committee of the board of directors of the Partnership’s general partner that are extraordinary or non-recurring in nature and that would otherwise increase distributable cash flow.

Distributable cash flow as used in our partnership agreement also determines our ability to make cash distributions on our incentive distribution rights. The investment community also uses a distributable cash flow metric similar to the metric used in our partnership agreement with respect to publicly traded partnerships to indicate whether or not such partnerships have generated sufficient earnings on a current or historic level that can sustain distributions on preferred or common units or support an increase in quarterly cash distributions on common units. Our partnership agreement does not permit adjustments for certain non-cash items, such as net losses on the sale and disposition of assets and goodwill and long-lived asset impairment charges.

Distributable cash flow should not be considered as an alternative to net income, operating income, cash flow from operations, or any other measure of financial performance presented in accordance with GAAP. In addition, distributable cash flow may not be comparable to distributable cash flow or similarly titled measures of other companies.

About Global Partners LP

With approximately 1,550 locations primarily in the Northeast, Global Partners is one of the region’s largest independent owners, suppliers and operators of gasoline stations and convenience stores. Global Partners also owns, controls or has access to one of the largest terminal networks in New England and New York, through which it distributes gasoline, distillates, residual oil and renewable fuels to wholesalers, retailers and commercial customers. In addition, Global Partners engages in the transportation of petroleum products and renewable fuels by rail from the mid-continental U.S. and Canada. Global Partners LP, a master limited partnership, trades on the New York Stock Exchange under the ticker symbol “GLP.” For additional information, visit www.globalp.com.

Forward-looking Statements

Certain statements and information in this press release may constitute “forward-looking statements.” The words “believe,” “expect,” “anticipate,” “plan,” “intend,” “foresee,” “should,” “would,” “could” or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. These forward-looking statements are based on Global Partners’ current expectations and beliefs concerning future developments and their potential effect on the Partnership. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting the Partnership will be those that it anticipates. All comments concerning the Partnership’s expectations for future revenues and operating results and otherwise are based on forecasts for its existing operations and do not include the potential impact of any future acquisitions. Forward-looking statements involve significant risks and uncertainties (some of which are beyond the Partnership’s control) including, without limitation, the impact and duration of the COVID-19 pandemic, uncertainty around the timing of an economic recovery in the United States which will impact the demand for the products we sell and the services we provide, uncertainty around the impact of the COVID-19 pandemic to our counterparties and our customers and their corresponding ability to perform their obligations and/or utilize the products we sell and/or services we provide, uncertainty around the impact and duration of federal, state and municipal regulations related to the COVID-19 pandemic, and assumptions that could cause actual results to differ materially from the Partnership’s historical experience and present expectations or projections.

For additional information regarding known material factors that could cause actual results to differ from the Partnership’s projected results, please see Global Partners’ filings with the SEC, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date thereof. The Partnership undertakes no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.


GLOBAL PARTNERS LP
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per unit data)
(Unaudited)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Sales	$	1,469,577	$	3,507,540	$	4,064,670	$	6,487,166
Cost of sales		1,229,630		3,340,397		3,678,985		6,163,179
Gross profit		239,947		167,143		385,685		323,987

Costs and operating expenses:
Selling, general and administrative expenses		59,017		40,968		99,940		82,058
Operating expenses		76,714		86,451		159,267		169,395
Lease exit and termination gain		-		-		-		(493)
Amortization expense		2,713		2,977		5,425		5,953
Net gain on sale and disposition of assets		(811)		(1,128)		(68)		(575)
Long-lived asset impairment		1,724		-		1,724		-
Total costs and operating expenses		139,357		129,268		266,288		256,338

Operating income		100,590		37,875		119,397		67,649

Interest expense		(21,089)		(23,066)		(42,690)		(46,022)

Income before income tax (expense) benefit		79,501		14,809		76,707		21,627

Income tax (expense) benefit		(3,528)		(438)		2,341		(462)

Net income		75,973		14,371		79,048		21,165

Net loss attributable to noncontrolling interest		289		118		490		450

Net income attributable to Global Partners LP		76,262		14,489		79,538		21,615

Less: General partner's interest in net income, including
incentive distribution rights		511		366		533		670
Less: Series A preferred limited partner interest in net income		1,682		1,682		3,364		3,364

Net income attributable to common limited partners	$	74,069	$	12,441	$	75,641	$	17,581

Basic net income per common limited partner unit (1)	$	2.19	$	0.37	$	2.23	$	0.52

Diluted net income per common limited partner unit (1)	$	2.17	$	0.36	$	2.21	$	0.51

Basic weighted average common limited partner units outstanding		33,869		33,755		33,869		33,754

Diluted weighted average limited partner units outstanding		34,204		34,286		34,248		34,259

(1) Under the Partnership's partnership agreement, for any quarterly period, the incentive distribution rights ("IDRs") participate in net income only to the extent of the amount of cash distributions actually declared, thereby excluding the IDRs from participating in the Partnership's undistributed net income or losses. Accordingly, the Partnership's undistributed net income or losses is assumed to be allocated to the common unitholders and to the General Partner's general partner interest. Net income attributable to common limited partners is divided by the weighted average common units outstanding in computing the net income per limited partner unit.


GLOBAL PARTNERS LP
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)


	June 30,		December 31,
	2020		2019
Assets
Current assets:
Cash and cash equivalents	$	10,358	$	12,042
Accounts receivable, net		232,832		413,195
Accounts receivable - affiliates		7,496		7,823
Inventories		344,026		450,482
Brokerage margin deposits		32,296		34,466
Derivative assets		48,571		4,564
Prepaid expenses and other current assets		93,397		81,940
Total current assets		768,976		1,004,512

Property and equipment, net		1,075,084		1,104,863
Right of use assets, net		282,025		296,746
Intangible assets, net		41,340		46,765
Goodwill		323,889		324,474
Other assets		30,964		31,067

Total assets	$	2,522,278	$	2,808,427


Liabilities and partners' equity
Current liabilities:
Accounts payable	$	163,351	$	373,386
Working capital revolving credit facility - current portion		41,700		148,900
Lease liability - current portion		70,622		68,160
Environmental liabilities - current portion		5,009		5,009
Trustee taxes payable		43,739		42,932
Accrued expenses and other current liabilities		94,586		102,802
Derivative liabilities		8,089		12,698
Total current liabilities		427,096		753,887

Working capital revolving credit facility - less current portion		175,000		175,000
Revolving credit facility		188,000		192,700
Senior notes		691,355		690,533
Long-term lease liability - less current portion		223,547		239,349
Environmental liabilities - less current portion		51,290		54,262
Financing obligations		147,400		148,127
Deferred tax liabilities		54,999		42,879
Other long-term liabilities		55,085		52,451
Total liabilities		2,013,772		2,349,188

Partners' equity
Global Partners LP equity		507,422		458,065
Noncontrolling interest		1,084		1,174
Total partners' equity		508,506		459,239

Total liabilities and partners' equity	$	2,522,278	$	2,808,427


GLOBAL PARTNERS LP
FINANCIAL RECONCILIATIONS
(In thousands)
(Unaudited)
	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Reconciliation of gross profit to product margin
Wholesale segment:
Gasoline and gasoline blendstocks	$	57,779	$	29,384	$	66,923	$	56,374
Crude oil		9,203		(798)		4,733		(7,024)
Other oils and related products		44,523		9,415		44,733		23,495
Total		111,505		38,001		116,389		72,845
Gasoline Distribution and Station Operations segment:
Gasoline distribution		96,770		87,874		204,000		175,299
Station operations		48,801		57,552		97,442		108,512
Total		145,571		145,426		301,442		283,811
Commercial segment		3,003		4,546		8,918		11,004
Combined product margin		260,079		187,973		426,749		367,660
Depreciation allocated to cost of sales		(20,132)		(20,830)		(41,064)		(43,673)
Gross profit	$	239,947	$	167,143	$	385,685	$	323,987

Reconciliation of net income to EBITDA and Adjusted EBITDA
Net income	$	75,973	$	14,371	$	79,048	$	21,165
Net loss attributable to noncontrolling interest		289		118		490		450
Net income attributable to Global Partners LP		76,262		14,489		79,538		21,615
Depreciation and amortization, excluding the impact of noncontrolling interest		24,779		25,977		50,447		53,912
Interest expense, excluding the impact of noncontrolling interest		21,089		23,066		42,690		46,022
Income tax expense (benefit)		3,528		438		(2,341)		462
EBITDA		125,658		63,970		170,334		122,011
Net gain on sale and disposition of assets		(811)		(1,128)		(68)		(575)
Long-lived asset impairment		1,724		-		1,724		-
Adjusted EBITDA	$	126,571	$	62,842	$	171,990	$	121,436

Reconciliation of net cash provided by (used in) operating activities to EBITDA and Adjusted EBITDA
Net cash provided by (used in) operating activities	$	24,086	$	53,545	$	162,003	$	(33,492)
Net changes in operating assets and liabilities and certain non-cash items		76,767		(13,069)		(32,300)		108,967
Net cash from operating activities and changes in operating
assets and liabilities attributable to noncontrolling interest		188		(10)		282		52
Interest expense, excluding the impact of noncontrolling interest		21,089		23,066		42,690		46,022
Income tax expense (benefit)		3,528		438		(2,341)		462
EBITDA		125,658		63,970		170,334		122,011
Net gain on sale and disposition of assets		(811)		(1,128)		(68)		(575)
Long-lived asset impairment		1,724		-		1,724		-
Adjusted EBITDA	$	126,571	$	62,842	$	171,990	$	121,436

Reconciliation of net income to distributable cash flow
Net income	$	75,973	$	14,371	$	79,048	$	21,165
Net loss attributable to noncontrolling interest		289		118		490		450
Net income attributable to Global Partners LP		76,262		14,489		79,538		21,615
Depreciation and amortization, excluding the impact of noncontrolling interest		24,779		25,977		50,447		53,912
Amortization of deferred financing fees and senior notes discount		1,306		1,600		2,567		3,327
Amortization of routine bank refinancing fees		(985)		(890)		(1,925)		(1,912)
Maintenance capital expenditures, excluding the impact of noncontrolling interest		(5,546)		(13,060)		(12,826)		(21,066)
Distributable cash flow (1)(2)		95,816		28,116		117,801		55,876
Distributions to Series A preferred unitholders (3)		(1,682)		(1,682)		(3,364)		(3,364)
Distributable cash flow after distributions to Series A preferred unitholders	$	94,134	$	26,434	$	114,437	$	52,512

Reconciliation of net cash provided by (used in) operating activities to distributable cash flow
Net cash provided by (used in) operating activities	$	24,086	$	53,545	$	162,003	$	(33,492)
Net changes in operating assets and liabilities and certain non-cash items		76,767		(13,069)		(32,300)		108,967
Net cash from operating activities and changes in operating
assets and liabilities attributable to noncontrolling interest		188		(10)		282		52
Amortization of deferred financing fees and senior notes discount		1,306		1,600		2,567		3,327
Amortization of routine bank refinancing fees		(985)		(890)		(1,925)		(1,912)
Maintenance capital expenditures, excluding the impact of noncontrolling interest		(5,546)		(13,060)		(12,826)		(21,066)
Distributable cash flow (1)(2)		95,816		28,116		117,801		55,876
Distributions to Series A preferred unitholders (3)		(1,682)		(1,682)		(3,364)		(3,364)
Distributable cash flow after distributions to Series A preferred unitholders	$	94,134	$	26,434	$	114,437	$	52,512

Contacts

Daphne H. Foster
Chief Financial Officer
Global Partners LP
(781) 894-8800

Edward J. Faneuil
Executive Vice President, General Counsel and Secretary
Global Partners LP
(781) 894-8800

Read full story here

: Business Wire; Posted On Aug 06, 2020

CenterPoint Energy Reports Q2 2020 Earnings of $0.11 Per Diluted Share; $0.21 Diluted EPS on a Guidance Basis, with $0.18 Diluted EPS from Utility Operations, Inclusive of $0.06 COVID-19 Impact, and $0.03 Diluted EPS from Midstream Investments

Utilities led company with strong second quarter results in spite of $0.06 COVID-19 impact
Reiterate 2020 Utility EPS guidance range of $1.10 - $1.20 and 5 - 7% Utility EPS CAGR, inclusive of anticipated COVID-19 impacts

HOUSTON--(BUSINESS WIRE)--CenterPoint Energy, Inc. (NYSE: CNP) today reported income available to common shareholders of $59 million, or $0.11 per diluted share, for the second quarter of 2020, compared to income available to common shareholders of $165 million, or $0.33 per diluted share, for the second quarter of 2019.

On a guidance basis, second quarter 2020 earnings were $0.21 per diluted share, with $0.18 per diluted share from utility operations, inclusive of $0.06 unfavorable COVID-19 impact, and $0.03 per diluted share from midstream investments. Second quarter 2019 earnings, on a guidance basis, were $0.23 per diluted share from utility operations and $0.09 per diluted share from midstream investments. See “Reconciliation of Consolidated income (loss) available to common shareholders and diluted earnings (loss) per share (GAAP) to adjusted income and adjusted diluted earnings per share (Non-GAAP)” below.

“Our second quarter results demonstrate our employees’ resilience and dedication to safely serving our customers during these unique and challenging times,” said Dave Lesar, President and Chief Executive Officer of CenterPoint Energy. “I would especially like to thank our operations personnel for their unwavering commitment and tireless efforts to deliver on CenterPoint Energy’s brand promise of being ‘Always There’ for our customers.

"Despite the challenges brought on by COVID-19, our utilities delivered strong second quarter results driven by customer growth, rate relief and disciplined O&M management," said Lesar. "We are reiterating CenterPoint Energy's 2020 Utility EPS guidance range of $1.10 - $1.20 and expected 5 - 7% 5-year guidance basis Utility EPS CAGR, including the anticipated full year impacts of $0.10 - $0.15 related to COVID-19."

Lesar added, "As CEO and also Chairman of the Business Review and Evaluation Committee of the Board (the "Committee"), I am driving a process dedicated to thoroughly assessing opportunities to accomplish the objective of creating sustainable value for our stakeholders. The comprehensive review by the Committee is an on-going and robust process to unlock the potential of our Company, business and investments. Formal recommendations to the Board are expected in October 2020.

"I believe that CenterPoint Energy is a strong company with great regulated assets and attractive opportunities to invest incremental capital across premier organic growth jurisdictions," said Lesar. "I am greatly energized about the future of this company and will work tirelessly to drive maximum value for all of our stakeholders."

Business Segments

Houston Electric - Transmission & Distribution

The Houston electric - transmission & distribution segment reported net income of $87 million for the second quarter of 2020, compared with $100 million for the second quarter of 2019. Net income for the second quarter of 2020 included $2 million of after-tax merger-related expenses. On a guidance basis, second quarter 2020 net income was $89 million, compared with $100 million for the second quarter of 2019. Results for the second quarter of 2020 benefited primarily from customer growth and lower operations and maintenance expense. These benefits were more than offset by lower commercial and industrial usage, primarily due to the effects of COVID-19, increased depreciation and amortization and other taxes expense, lower equity return, primarily due to the annual true-up of transition charges, and lower net revenues as a result of the most recent Houston Electric rate case.

Indiana Electric – Integrated

The Indiana electric - integrated segment reported net income of $19 million for the second quarter of 2020, compared with $16 million for the second quarter of 2019. Results for the second quarter of 2020 benefited primarily from lower operations and maintenance expense, partially offset by lower usage, primarily due to the effects of COVID-19.

Natural Gas Distribution

The natural gas distribution segment reported net income of $33 million for the second quarter of 2020, compared with $23 million for the second quarter of 2019. Net income for the second quarter of 2020 includes $2 million of after-tax merger-related expenses and severance costs. On a guidance basis, second quarter 2020 net income was $35 million, compared with $23 million for the second quarter of 2019. Results for the second quarter of 2020 benefited primarily from rate relief, lower operations and maintenance expense and customer growth. These increases were partially offset by lower usage and miscellaneous fee revenues due to the effects of COVID-19 and increased depreciation and amortization and other taxes expense.

Midstream Investments

The midstream investments segment reported net income of $24 million for the second quarter of 2020, compared with $50 million for the second quarter of 2019. For further detail, please refer to Enable's investor materials provided during its second quarter 2020 earnings call on August 5, 2020.

Corporate and Other

The corporate and other segment reported a net loss of $28 million for the second quarter of 2020, compared with a net loss of $38 million for the second quarter of 2019. The net loss for the second quarter of 2020 included $5 million of after-tax merger-related expenses and severance costs. The net loss for the second quarter of 2019 included $27 million of after-tax merger-related expenses.

Discontinued Operations - Energy Services and Infrastructure Services

Discontinued operations reported a net loss of $30 million for the second quarter of 2020, compared with net income of $44 million for the second quarter of 2019. Results related to discontinued operations are excluded from the company's guidance basis results.

Earnings Outlook

To provide greater transparency on utility earnings, 2020 guidance will be presented in two components, a guidance basis Utility EPS range and a Midstream Investments EPS expected range.

Reiterate 2020 guidance basis Utility EPS range of $1.10 - $1.20
2020 - 2024 target of 5 - 7% compound annual guidance basis Utility EPS growth, using the 2020 range of $1.10 - $1.20 as the starting EPS, assuming the COVID-19 scenario range described below
2020 Midstream Investments EPS expected range is $0.15 - $0.18

Utility EPS Guidance Range

Utility EPS guidance range includes net income from Houston Electric, Indiana Electric and Natural Gas Distribution segments, as well as after tax operating income from the Corporate and Other segment.
The 2020 Utility EPS guidance range considers operations performance to date and assumptions for certain significant variables that may impact earnings, such as customer growth (approximately 2% for electric operations and 1% for natural gas distribution) and usage including normal weather, throughput, recovery of capital invested through rate cases and other rate filings, effective tax rates, financing activities and related interest rates, regulatory and judicial proceedings, anticipated cost savings as a result of the merger and reflects dilution and earnings as if the Series C preferred stock were issued as common stock. In addition, the Utility EPS guidance range incorporates a COVID-19 scenario range of $0.10 - $0.15 which assumes reduced demand levels and miscellaneous revenues with the second quarter as the peak and reflects anticipated deferral and recovery of certain incremental expenses, including bad debt. The COVID-19 scenario range also assumes a gradual re-opening of the economy in CenterPoint Energy's service territories, with anticipated reduced demand and lower miscellaneous revenues over the remainder of 2020. To the extent actual recovery deviates from these COVID-19 scenario range assumptions, the 2020 Utility EPS guidance range may not be met and our projected full-year guidance range may change. The Utility EPS guidance range also assumes an allocation of corporate overhead based upon its relative earnings contribution. Corporate overhead consists of interest expense, preferred stock dividend requirements, income on Enable preferred units and other items directly attributable to the parent along with the associated income taxes.
Utility EPS guidance excludes:
- Certain expenses associated with merger integration and Business Review and Evaluation Committee activities
- Severance costs
- Midstream Investments and allocation of associated corporate overhead
- Results related to Infrastructure Services and Energy Services, including costs and impairment resulting from the sale of those businesses
- Earnings or losses from the change in value of ZENS and related securities

In providing this 2020 guidance, CenterPoint Energy uses a non-GAAP measure of adjusted diluted earnings per share that does not consider the items noted above and other potential impacts such as any changes in accounting standards, impairments or other unusual items, which could have a material impact on GAAP reported results for the applicable guidance period. CenterPoint Energy is unable to present a quantitative reconciliation of forward looking adjusted diluted earnings per share because changes in the value of ZENS and related securities are not estimable as they are highly variable and difficult to predict due to various factors outside of management’s control.

Midstream Investments EPS Expected Range

The 2020 Midstream Investments EPS expected range is $0.15 - $0.18. In providing this EPS range for Midstream Investments, the company assumes a 53.7 percent ownership of Enable's common units and includes the amortization of its basis differential in Enable and assumes an allocation of CenterPoint Energy corporate overhead based upon Midstream Investments relative earnings contribution. The Midstream Investments EPS expected range reflects dilution and earnings as if CenterPoint Energy's Series C preferred stock were issued as common stock. The Midstream Investments EPS expected range takes into account such factors as Enable’s most recent public outlook for 2020 dated August 5, 2020, and effective tax rates. The company does not include other potential impacts such as any changes in accounting standards, impairments or Enable’s unusual items.


Reconciliation of Consolidated income (loss) available to common shareholders and diluted earnings (loss) per share (GAAP) to adjusted income and adjusted diluted earnings per share (Non-GAAP)
Quarter Ended
June 30, 2020
	Utility Operations						Midstream Investments						Corporate and Other ⁽⁶⁾						CES⁽¹⁾ & CIS⁽²⁾(Disc. Operations)						Consolidated
	Dollars in millions			Diluted EPS ⁽³⁾			Dollars in millions			Diluted EPS ⁽³⁾			Dollars in millions			Diluted EPS ⁽³⁾			Dollars in millions			Diluted EPS ⁽³⁾			Dollars in millions			Diluted EPS ⁽³⁾
Consolidated income (loss) available to common shareholders and diluted EPS	$	139		$	0.26		$	24		$	0.04		$	(74	)	$	(0.13	)	$	(30	)	$	(0.06	)	$	59		$	0.11

Timing effects impacting CES ⁽¹⁾:
Mark-to-market (gains) losses (net of taxes of $8)⁽⁴⁾	—			—			—			—			—			—			25			0.05			25			0.05

ZENS-related mark-to-market (gains) losses:
Marketable securities (net of taxes of $15)⁽⁴⁾⁽⁵⁾	—			—			—			—			(60		)	(0.12		)	—			—			(60		)	(0.12		)
Indexed debt securities (net of taxes of $15)⁽⁴⁾	—			—			—			—			61			0.12			—			—			61			0.12

Impacts associated with the Vectren merger (net of taxes of $1, $1)⁽⁴⁾	3			—			—			—			4			0.01			—			—			7			0.01

Severance costs (net of taxes of $0, $0)⁽⁴⁾	1			—			—			—			1			—			—			—			2			—

Impacts associated with the sales of CES⁽¹⁾and CIS⁽²⁾(net of taxes of $38)⁽⁴⁾	—			—			—			—			—			—			4			0.01			4			0.01

Impacts associated with Series C preferred stock
Preferred stock dividend requirement and amortization of beneficial conversion feature	—			—			—			—			16			0.03			—			—			16			0.03
Impact of increased share count on EPS if issued as common stock	—			(0.01		)	—			—			—			—			—			—			—			(0.01		)
Total Series C preferred stock impacts	—			(0.01		)	—			—			16			0.03			—			—			16			0.02

Consolidated on a guidance basis	143			0.25			24			0.04			(52		)	(0.09		)	(1		)	—			114			0.20

Corporate and Other Allocation	(41		)	(0.07		)	(9		)	(0.01		)	52			0.09			(2		)	(0.01		)	—			—

Exclusion of Discontinued Operations⁽⁷⁾	—			—			—			—			—			—			3			0.01			3			0.01

Consolidated on a guidance basis, with allocation of Corporate and Other	$	102		$	0.18		$	15		$	0.03		$	—		$	—		$	—		$	—		$	117		$	0.21

(1) Energy Services segment
(2) Infrastructure Services segment
(3) Quarterly diluted EPS on both a GAAP and guidance basis are based on the weighted average number of shares of common stock outstanding during the quarter, and the sum of the quarters may not equal year-to-date diluted EPS
(4) Taxes are computed based on the impact removing such item would have on tax expense
(5) Comprised of common stock of AT&T Inc. and Charter Communications, Inc.
(6) Corporate and Other segment plus income allocated to preferred shareholders
(7) Results related to discontinued operations are excluded from the company's guidance basis results

Quarter Ended
June 30, 2019
	Utility Operations						Midstream Investments						Corporate and Other ⁽⁶⁾						CES⁽¹⁾ & CIS⁽²⁾(Disc. Operations)						Consolidated
	Dollars in millions			Diluted EPS ⁽³⁾			Dollars in millions			Diluted EPS ⁽³⁾			Dollars in millions			Diluted EPS ⁽³⁾			Dollars in millions			Diluted EPS ⁽³⁾			Dollars in millions			Diluted EPS ⁽³⁾
Consolidated income (loss) available to common shareholders and diluted EPS	$	139		$	0.28		$	50		$	0.10		$	(68	)	$	(0.14	)	$	44		$	0.09		$	165		$	0.33

Timing effects impacting CES⁽¹⁾:
Mark-to-market (gains) losses (net of taxes of $7)⁽⁴⁾	—			—			—			—			—			—			(23		)	(0.05		)	(23		)	(0.05		)

ZENS-related mark-to-market (gains) losses:
Marketable securities (net of taxes of $14)⁽⁴⁾⁽⁵⁾	—			—			—			—			(50		)	(0.10		)	—			—			(50		)	(0.10		)
Indexed debt securities (net of taxes of $15) ⁽⁴⁾	—			—			—			—			53			0.11			—			—			53			0.11

Consolidated on a guidance basis	139			0.28			50			0.10			(65		)	(0.13		)	21			0.04			145			0.29

Impacts associated with the Vectren merger (net of taxes of $8, $2)⁽⁴⁾	—			—			—			—			27			0.05			5			0.01			32			0.06

Consolidated on a guidance basis, excluding impacts associated with the Vectren merger	139			0.28			50			0.10			(38		)	(0.08		)	26			0.05			177			0.35

Corporate and Other Allocation	(22		)	(0.05		)	(6		)	(0.01		)	38			0.08			(10		)	(0.02		)	—			—

Consolidated on a guidance basis, excluding impacts associated with the Vectren merger and with allocation of Corporate and Other	$	117		$	0.23		$	44		$	0.09		$	—		$	—		$	16		$	0.03		$	177		$	0.35

(1) Energy Services segment
(2) Infrastructure Services segment
(3) Quarterly diluted EPS on both a GAAP and guidance basis are based on the weighted average number of shares of common stock outstanding during the quarter, and the sum of the quarters may not equal year-to-date diluted EPS
(4) Taxes are computed based on the impact removing such item would have on tax expense
(5) Comprised of common stock of AT&T Inc. and Charter Communications, Inc.
(6) Corporate and Other segment plus income allocated to preferred shareholders

Filing of Form 10-Q for CenterPoint Energy, Inc.

Today, CenterPoint Energy, Inc. filed with the Securities and Exchange Commission (SEC) its Quarterly Report on Form 10-Q for the quarter ended June 30, 2020. A copy of that report is available on the company’s website, under the Investors section. Investors and others should note that we may announce material information using SEC filings, press releases, public conference calls, webcasts, and the Investor Relations page of our website. In the future, we will continue to use these channels to distribute material information about the company and to communicate important information about the company, key personnel, corporate initiatives, regulatory updates and other matters. Information that we post on our website could be deemed material; therefore we encourage investors, the media, our customers, business partners and others interested in our company to review the information we post on our website.

Webcast of Earnings Conference Call

CenterPoint Energy’s management will host an earnings conference call on Thursday, August 6, 2020, at 10:00 a.m. Central time/11:00 a.m. Eastern time. Interested parties may listen to a live audio broadcast of the conference call on the company’s website under the Investors section. A replay of the call can be accessed approximately two hours after the completion of the call and will be archived on the website for at least one year.

As the only investor owned electric and gas utility based in Texas, CenterPoint Energy, Inc. (NYSE: CNP) is an energy delivery company with electric transmission and distribution, power generation and natural gas distribution operations that serve more than 7 million metered customers in Arkansas, Indiana, Louisiana, Minnesota, Mississippi, Ohio, Oklahoma and Texas. As of June 30, 2020, the company owned approximately $32 billion in assets and also owned 53.7 percent of the common units representing limited partner interests in Enable Midstream Partners, LP, a publicly traded master limited partnership that owns, operates and develops strategically located natural gas and crude oil infrastructure assets. With approximately 9,600 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, visit CenterPointEnergy.com.

This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this news release, the words "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "goal," "intend," "may," "objective," "plan," "potential," "predict," "projection," "should," "target," "will" or other similar words are intended to identify forward-looking statements. These forward-looking statements are based upon assumptions of management which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. Actual events and results may differ materially from those expressed or implied by these forward-looking statements. Any statements in this news release regarding capital investments, future earnings, and future financial performance and results of operations, including, but not limited to earnings guidance, impact of COVID-19, including with respect to regulatory actions and the COVID-19 scenario range discussed in this news release, the Business Review and Evaluation Committee activities and any outcome of its review process, value creation and any other statements that are not historical facts are forward-looking statements. Each forward-looking statement contained in this news release speaks only as of the date of this release.

Risks Related to CenterPoint Energy

Important factors that could cause actual results to differ materially from those indicated by the provided forward-looking information include risks and uncertainties relating to: (1) the performance of Enable Midstream Partners, LP (Enable), the amount of cash distributions CenterPoint Energy receives from Enable, Enable's ability to redeem the Enable Series A Preferred Units in certain circumstances and the value of CenterPoint Energy's interest in Enable, and factors that may have a material impact on such performance, cash distributions and value, including factors such as: (A) competitive conditions in the midstream industry, and actions taken by Enable's customers and competitors, including drilling, production and capital spending decisions of third parties and the extent and timing of the entry of additional competition in the markets served by Enable; (B) the timing and extent of changes in the supply of natural gas and associated commodity prices, particularly prices of natural gas and natural gas liquids (NGLs), the competitive effects of the available pipeline capacity in the regions served by Enable, and the effects of geographic and seasonal commodity price differentials, including the effects of these circumstances on re-contracting available capacity on Enable's interstate pipelines and its commodity risk management activities; (C) economic effects of the recent actions of Saudi Arabia, Russia and other oil-producing countries, which have resulted in a substantial decrease in oil and natural gas prices and the combined impact of these events and COVID-19 on commodity prices; (D) the demand for crude oil, natural gas, NGLs and transportation and storage services; (E) environmental and other governmental regulations, including the availability of drilling permits and the regulation of hydraulic fracturing; (F) recording of goodwill, long-lived asset or other than temporary impairment charges by or related to Enable; (G) the timing of payments from Enable's customers under existing contracts, including minimum volume commitment payments; (H) changes in tax status; and (I) access to debt and equity capital; (2) CenterPoint Energy's expected benefits of the merger with Vectren Corporation (Vectren) and integration, including the outcome of shareholder litigation filed against Vectren that could reduce anticipated benefits of the merger, as well as the ability to successfully integrate the Vectren businesses and to realize anticipated benefits and commercial opportunities; (3) the recording of impairment charges; (4) industrial, commercial and residential growth in CenterPoint Energy's service territories and changes in market demand, including the demand for CenterPoint Energy's non-utility products and services and effects of energy efficiency measures and demographic patterns; (5) timely and appropriate rate actions that allow recovery of costs and a reasonable return on investment; (6) future economic conditions in regional and national markets and their effect on sales, prices and costs; (7) weather variations and other natural phenomena, including the impact of severe weather events on operations and capital; (8) the COVID-19 pandemic and its effect on CenterPoint Energy’s and Enable’s operations, business and financial condition, the industries and communities they serve, U.S. and world financial markets and supply chains, potential regulatory actions and changes in customer and stakeholder behaviors relating thereto; (9) volatility and a substantial recent decline in the markets for oil and natural gas as a result of the actions of crude-oil exporting nations and the Organization of Petroleum Exporting Countries and reduced worldwide consumption due to the COVID-19 pandemic; (10) state and federal legislative and regulatory actions or developments affecting various aspects of CenterPoint Energy's and Enable's businesses, including, among others, energy deregulation or re-regulation, pipeline integrity and safety and changes in regulation and legislation pertaining to trade, health care, finance and actions regarding the rates charged by our regulated businesses; (11) tax legislation, including the effects of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the comprehensive tax reform legislation informally referred to as the Tax Cuts and Jobs Act (which includes but is not limited to any potential changes to tax rates, tax credits and/or interest deductibility) and uncertainties involving state commissions' and local municipalities' regulatory requirements and determinations regarding the treatment of excess deferred income taxes and CenterPoint Energy's rates; (12) CenterPoint Energy's ability to mitigate weather impacts through normalization or rate mechanisms, and the effectiveness of such mechanisms; (13) actions by credit rating agencies, including any potential downgrades to credit ratings; (14) problems with regulatory approval, legislative actions, construction, implementation of necessary technology or other issues with respect to major capital projects that result in delays or cancellation or in cost overruns that cannot be recouped in rates; (15) the availability and prices of raw materials and services and changes in labor for current and future construction projects and operations and maintenance costs, including CenterPoint Energy's ability to control such costs; (16) local, state and federal legislative and regulatory actions or developments relating to the environment, including, among others, those related to global climate change, air emissions, carbon, waste water discharges and the handling and disposal of coal combustion residuals (CCR) that could impact the continued operation, and/or cost recovery of generation plant costs and related assets; (17) the impact of unplanned facility outages or other closures; (18) any direct or indirect effects on CenterPoint Energy's or Enable's facilities, operations and financial condition resulting from terrorism, cyber-attacks, data security breaches or other attempts to disrupt CenterPoint Energy's businesses or the businesses of third parties, or other catastrophic events such as fires, ice, earthquakes, explosions, leaks, floods, droughts, hurricanes, tornadoes, pandemic health events or other occurrences; (19) CenterPoint Energy's ability to invest planned capital and the timely recovery of CenterPoint Energy's investments, including those related to Indiana Electric's Integrated Resource Plan; (20) CenterPoint Energy's ability to successfully construct and operate electric generating facilities, including complying with applicable environmental standards and the implementation of a well-balanced energy and resource mix, as appropriate; (21) the sufficiency of CenterPoint Energy's insurance coverage, including availability, cost, coverage and terms and ability to recover claims; (22) the investment performance of CenterPoint Energy's pension and postretirement benefit plans; (23) changes in interest rates and their impact on CenterPoint Energy's costs of borrowing and the valuation of its pension benefit obligation; (24) commercial bank and financial market conditions, CenterPoint Energy's access to capital, the cost of such capital, and the results of CenterPoint Energy's financing and refinancing efforts, including availability of funds in the debt capital markets; (25) changes in rates of inflation; (26) inability of various counterparties to meet their obligations to CenterPoint Energy; (27) non-payment for CenterPoint Energy's services due to financial distress of its customers; (28) the extent and effectiveness of CenterPoint Energy's and Enable's risk management and hedging activities, including but not limited to, financial and weather hedges; (29) timely and appropriate regulatory actions, which include actions allowing securitization, for any future hurricanes or natural disasters or other recovery of costs; (30) the ability of retail electric providers (REPs), including REP affiliates of NRG Energy, Inc.

Contacts

Media:
Alicia Dixon
Phone: 713.825.9107

Investors:
David Mordy
Phone: 713.207.6500

Read full story here

: Business Wire; Posted On Aug 06, 2020

DXP Enterprises Reports Second Quarter 2020 Results

$78.8 million in cash and cash equivalents
$251.4 million in sales
GAAP diluted EPS of $0.12
Cash flow from operating activities of $63.4 million
Free cash flow for the quarter of $61.6 million

HOUSTON--(BUSINESS WIRE)--DXP Enterprises, Inc. (NASDAQ: DXPE) today announced financial results for the second quarter ended June 30, 2020. The following are results for the three and six months ended June 30, 2020, compared to the three and six months ended June 30, 2019. A reconciliation of the non-GAAP financial measures can be found in the back of this press release.

Second Quarter 2020 financial highlights:

Sales were $251.4 million, compared to $333.3 million for the second quarter of 2019.
Earnings per diluted share for the second quarter was $0.12 based upon 18.6 million diluted shares, compared to $0.73 per share in the second quarter of June 30, 2019, based on 18.4 million diluted shares.
Earnings before interest, taxes, depreciation and amortization (EBITDA) for the second quarter was $12.6 million compared to $28.7 million for the second quarter of 2019.
Free cash flow (cash flow from operating activities less capital expenditures) for the second quarter was $61.6 million, or 489.5% of EBITDA.

David R. Little, Chairman and CEO, commented, "Before turning to our results, I would like to acknowledge our employees' resilience in the face of this historic COVID-19 pandemic and subsequent decline in activity levels in our oil and gas markets. As we have battled the pandemic for the last four months, our DXPeople have shown outstanding adaptability to the new working environment. They have embraced new work practices to mitigate contamination risks, while delivering outstanding product and service quality for our customers. As the pandemic lingers, we will continue to balance both safety and business priorities and strive to capture more market share. I was pleased with our team's execution on maintaining gross margins, cost discipline and our strong free cash flow generation."

Mr. Little continued, "During the second quarter, we achieved $251.4 million in sales, including $4.5 million from acquisitions. In terms of our business segments for the second quarter, sales were $153.8 million for Service Centers, $60.5 million for Innovative Pumping Solutions and $37.1 million for Supply Chain Services. Although the majority of lockdowns have been easing and economic activity is likely near trough levels, visibility on the economic outlook remains extremely limited. Specifically, the risk of a second wave of virus cases, the reinstitution of select geographic lockdowns, the upcoming election and the risk of lingering high unemployment create an uncertain economic environment that likely persists through the rest of 2020 based upon what we know today. Our results demonstrate a significant and sustainable reset to the power of our business to generate positive earnings and free cash flow and capture market share for our future."

Kent Yee, CFO, commented, “DXP's second quarter performance in a tough and unique market shows we can execute quickly and aggressively to deliver financial results and free cash flow despite a severe drop in activity. DXP generated $61.6 million in free cash flow for the quarter. Additionally, DXP paid down debt by $15.6 million. Our second quarter EBITDA for debt covenant purposes was $15.6 million. As of June 30, 2020, we had $78.8 million in cash and cash equivalents on the balance sheet. Our senior leverage was 2.4:1, well under the Q2 covenant limit of 4.5:1."

Financial Strength and Liquidity

Net debt, calculated as long-term debt, net of cash and cash equivalents, on our balance sheet as of June 30, 2020, was down to $149.4 million compared to $221.6 million at June 30, 2019. As of June 30, 2020, DXP has approximately $209.7 million in liquidity, consisting of $78.7 million in cash on hand and approximately $131.0 million in availability under our ABL facility.

We will host a conference call regarding June 30, 2020 second quarter results on the Company’s website (www.dxpe.com) Thursday, August 6, 2020 at 10 am CDT. Web participants are encouraged to go to the Company’s website at least 15 minutes prior to the start of the call to register, download and install any necessary audio software. The online archived replay will be available immediately after the conference call at www.dxpe.com.

Non-GAAP Financial Measures

DXP supplements reporting of net income with non-GAAP measurements, including EBITDA, adjusted EBITDA, free cash flow and net debt. This supplemental information should not be considered in isolation or as a substitute for the unaudited GAAP measurements. Additional information regarding EBITDA and free cash flow referred to in this press release are included below under "Unaudited Reconciliation of Non-GAAP Financial Information."

The Company believes EBITDA provides additional information about: (i) operating performance, because it assists in comparing the operating performance of the business, as it removes the impact of non-cash depreciation and amortization expense as well as items not directly resulting from core operations such as interest expense and income taxes and (ii) the performance and the effectiveness of operational strategies. Additionally, EBITDA performance is a component of a measure of the Company’s financial covenants under its credit facility. Furthermore, some investors use EBITDA as a supplemental measure to evaluate the overall operating performance of companies in the industry. Management believes that some investors’ understanding of performance is enhanced by including this non-GAAP financial measure as a reasonable basis for comparing ongoing results of operations. By providing this non-GAAP financial measure, together with a reconciliation from net income, the Company believes it is enhancing investors’ understanding of the business and results of operations, as well as assisting investors in evaluating how well the Company is executing strategic initiatives.

About DXP Enterprises, Inc.

DXP Enterprises, Inc. is a leading products and service distributor that adds value and total cost savings solutions to industrial customers throughout the United States, Canada, Mexico and Dubai. DXP provides innovative pumping solutions, supply chain services and maintenance, repair, operating and production ("MROP") services that emphasize and utilize DXP’s vast product knowledge and technical expertise in rotating equipment, bearings, power transmission, metal working, industrial supplies and safety products and services. DXP's breadth of MROP products and service solutions allows DXP to be flexible and customer-driven, creating competitive advantages for our customers. DXP’s business segments include Service Centers, Innovative Pumping Solutions and Supply Chain Services. For more information, go to www.dxpe.com.

The Private Securities Litigation Reform Act of 1995 provides a “safe-harbor” for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made by or to be made by the Company) contains statements that are forward-looking. These forward-looking statements include without limitation those about the Company’s expectations regarding the impact of the COVID-19 pandemic and the impact of low commodity prices of oil and gas; the Company’s business, the Company’s future profitability, cash flow, liquidity, and growth. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future; and accordingly, such results may differ from those expressed in any forward-looking statement made by or on behalf of the Company. These risks and uncertainties include, but are not limited to; decreases in oil and natural gas prices; decreases in oil and natural gas industry expenditure levels, which may result from decreased oil and natural gas prices or other factors; ability to obtain needed capital, dependence on existing management, leverage and debt service, domestic or global economic conditions, economic risks related to the impact of COVID-19, ability to manage changes and the continued health or availability of management personnel and changes in customer preferences and attitudes. In some cases, you can identify forward-looking statements by terminology such as, but not limited to, “may,” “will,” “should,” “intend,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “goal,” or “continue” or the negative of such terms or other comparable terminology. For more information, review the Company’s filings with the Securities and Exchange Commission. More information on these risks and other potential factors that could affect the Company’s business and financial results is included in the Company’s filings with the SEC, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.


DXP ENTERPRISES, INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS ($ thousands, except per share amounts)

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

Sales	$	251,401		$	333,318		$	552,384		$	644,543
Cost of sales	181,705			241,331			398,703			468,356
Gross profit	69,696			91,987			153,681			176,187
Selling, general and administrative expenses	62,943			69,140			136,013			138,524
Operating income	6,753			22,847			17,668			37,663
Other expense (income), net	133			185			(701		)	152
Interest expense	3,930			4,885			8,307			9,925
Income before income taxes	2,690			17,777			10,062			27,586
Provision for income taxes	610			4,427			2,334			7,049
Net income	2,080			13,350			7,728			20,537
Net (loss) income attributable to NCI*	(62		)	(109		)	(124		)	(213		)
Net income attributable to DXP Enterprises, Inc.	2,142			13,459			7,852			20,750
Preferred stock dividend	22			22			45			45
Net income attributable to common shareholders	$	2,120		$	13,437		$	7,807		$	20,705
Diluted earnings per share attributable to DXP Enterprises, Inc.	$	0.12		$	0.73		$	0.42		$	1.13
Weighted average common shares and common equivalent shares outstanding	18,575			18,436			18,559			18,421

*NCI represents non-controlling interest

Business segment financial highlights:

Service Centers’ revenue for the second quarter was $153.8 million, a decrease of 23.1 percent year-over-year with a 8.9 percent operating income margin.
Innovative Pumping Solutions’ revenue for the second quarter was $60.5 million, a decrease of 25.4 percent year-over-year with a 14.2 percent operating income margin.
Supply Chain Services’ revenue for the second quarter was $37.1 million, a decrease of 29.1 percent year-over-year with a 9.0 percent operating income margin.

SEGMENT DATA ($ thousands, unaudited)
	Three Months Ended June 30,				Six Months Ended June 30,
Sales	2020		2019		2020		2019
Service Centers	$	153,848	$	199,978	$	336,433	$	386,157
Innovative Pumping Solutions	60,479		81,028		130,500		155,751
Supply Chain Services	37,074		52,312		85,451		102,635
Total DXP Sales	$	251,401	$	333,318	$	552,384	$	644,543


	Three Months Ended June 30,				Six Months Ended June 30,
Operating Income	2020		2019		2020		2019
Service Centers	$	13,717	$	23,230	$	30,643	$	42,210
Innovative Pumping Solutions	8,565		12,028		18,993		18,827
Supply Chain Services	3,353		3,784		7,107		7,870
Total segments operating income	$	25,635	$	39,042	$	56,743	$	68,907


Reconciliation of Operating Income for Reportable Segments ($ thousands, unaudited)
	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Operating income for reportable segments	$	25,635	$	39,042	$	56,743	$	68,907
Adjustment for:
Amortization of intangibles	3,046		3,803		6,243		7,617
Corporate expenses	15,836		12,392		32,832		23,627
Total operating income	$	6,753	$	22,847	$	17,668	$	37,663
Interest expense	3,930		4,885		8,307		9,925
Other income, net	133		185		(701)		152
Income before income taxes	$	2,690	$	17,777	$	10,062	$	27,586


Unaudited Reconciliation of Non-GAAP Financial Information ($ thousands, unaudited) The following table is a reconciliation of EBITDA and adjusted EBITDA, a non-GAAP financial measure, to income before taxes, calculated and reported in accordance with U.S. GAAP.
	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Income before income taxes	2,690		17,777		$	10,062	$	27,586
Plus: interest expense	3,930		4,885		8,307		9,925
Plus: depreciation and amortization	5,965		6,065		11,990		12,271
EBITDA	$	12,585	$	28,727	$	30,359	$	49,782

Plus: NCI loss (gain) income before tax*	221		(145)		303		283
Plus: stock compensation expense	983		524		1,887		1,029
Adjusted EBITDA	$	13,789	$	29,106	$	32,549	$	51,094

* NCI represents non-controlling interest


DXP ENTERPRISES, INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS ($ thousands, except per share amounts)
	As of
	June 30, 2020		December 31, 2019
ASSETS
*Current assets:*
Cash	$	78,678	$	54,203
Restricted cash	91		124
Accounts receivable, net of allowances for doubtful accounts	154,804		187,116
Inventories	131,828		129,364
Costs and estimated profits in excess of billings	30,376		32,455
Prepaid expenses and other current assets	6,120		4,223
Federal income taxes receivable	332		996
*Total current assets*	$	402,229	$	408,481
Property and equipment, net	62,962		63,703
Goodwill	202,502		194,052
Other intangible assets, net of accumulated amortization	50,540		52,582
Operating lease right-of-use assets	61,187		66,191
Other long-term assets	3,710		3,211
Total assets	$	783,130	$	788,220

LIABILITIES AND EQUITY
*Current liabilities:*
Current maturities of long-term debt	$	2,500	$	2,500
Trade accounts payable	82,407		76,438
Accrued wages and benefits	21,789		23,412
Customer advances	5,437		3,408
Billings in excess of costs and estimated profits	3,569		11,871
Current-portion operating lease liabilities	15,879		17,603
Other current liabilities	17,638		12,939
*Total current liabilities*	$	149,219	$	148,171
Long-term debt, less unamortized debt issuance costs	220,107		235,419
Long-term operating lease liabilities	44,158		48,605
Other long-term liabilities	1,027		1,205
Deferred income taxes	10,774		9,872
Total long-term liabilities	$	276,066	$	295,101
Total Liabilities	$	425,285	$	443,272
*Equity:*
*Total DXP Enterprises, Inc. equity*	356,823		343,802
Non-controlling interest	1,022		1,146
*Total Equity*	$	357,845	$	344,948
Total liabilities and equity	$	783,130	$	788,220


Unaudited Reconciliation of Non-GAAP Financial Information ($ thousands, unaudited) The following table is a reconciliation of free cash flow, a non-GAAP financial measure, to cash flow from operating activities, calculated and reported in accordance with U.S. GAAP.
	Three Months Ended June 30,					Six Months Ended June 30,
	2020		2019			2020		2019

Net cash from (used in) operating activities	$	63,376	$	1,850		$	61,764	$	(3,460	)
Less: purchases of property and equipment	1,898		6,272			5,133		8,584
Plus: proceeds from sales of property and equipment	123		5			123		34
Free cash flow	$	61,601	$	(4,417	)	$	56,754	$	(12,010	)

Contacts

Kent Yee, 713-996-4700
Senior Vice President, CFO
www.dxpe.com

: Business Wire; Posted On Aug 06, 2020

Facebook to Purchase Power from Apex’s 300 MW Lincoln Land Wind Project

Multiple Deals Totaling 432 MW Represent Apex’s Largest Corporate Offtake Partnership to Date

CHARLOTTESVILLE, Va.--(BUSINESS WIRE)--#cleanenergy--Apex Clean Energy today announced that Lincoln Land Wind has executed a power purchase agreement with Facebook for approximately 170 MW of renewable power from the Illinois project. With this latest in a series of transactions, Facebook is now Apex’s largest corporate customer by megawatt.

Lincoln Land Wind will help Facebook meet its goal of supporting its operations in the region with 100% renewable energy and reducing greenhouse gas emissions by 75%.

“The clean energy industry has long recognized Facebook as a leader,” said Mark Goodwin, Apex Clean Energy president and CEO. “In its early commitment to utilizing 100% renewable energy, and now its continuing work to fulfill that pledge, Facebook has led from the front of the pack. Apex has a strong track record in enabling corporate clean energy procurement, and we’re excited that the Lincoln Land Wind PPA results in Facebook becoming our largest partner to date.”

“We are thrilled to partner with Apex once again to bring an additional 170 MW of new renewable energy to the grid,” said Urvi Parekh, Head of Renewable Energy at Facebook. “At Facebook, we are committed to not only supporting our operations with 100% renewable energy, but to helping accelerate the transition to renewable energy. With our recent announcement of our new data center in DeKalb, we are excited to bring renewable energy to Illinois.”

The deal marks Apex’s third renewable transaction with Facebook in the past year. In 2019, Facebook signed a 61.6 MW PPA with Altavista Solar, Apex’s largest solar project to date, and a 200 MW PPA with Aviator Wind East, which will be part of the largest single-phase, single-site wind project in the United States when it begins commercial operations in the coming months. The PPA with Lincoln Land Wind will help support the tech company’s operations in the region.

The remaining 130 MW from Lincoln Land Wind will be sold to another corporate offtaker to be announced at a later date.

The project, located in Morgan County, Illinois, will generate approximately $65 million in local tax revenue, $90 million in payments to landowners, nearly 400 full-time local jobs during construction, and nine long-term local operations positions. Lincoln Land Wind is expected to begin operations in 2021.

About Apex Clean Energy

Apex Clean Energy develops, constructs, and operates utility-scale wind and solar power facilities across North America. Our mission-driven team of more than 200 renewable energy experts uses a data-focused approach and an unrivaled portfolio of projects to create solutions for the world’s most innovative and forward-thinking customers. For more information on how Apex is leading the transition to a clean energy future, visit www.apexcleanenergy.com or follow us on Facebook, Twitter, and LinkedIn.

Contacts

Apex Clean Energy
Cat Strumlauf
(434) 227-4196
This email address is being protected from spambots. You need JavaScript enabled to view it.

Facebook
Melanie Roe
(650) 798-7966
This email address is being protected from spambots. You need JavaScript enabled to view it.

: Business Wire; Posted On Aug 06, 2020

Q CELLS to Acquire Geli, Expanding Its Offerings in Integrated Energy Storage Solutions

− Q CELLS has signed an agreement to purchase a 100% stake in Geli, a leading energy storage solutions and software provider

− Combined capabilities provide smart energy solutions to customers

− Acquisition marks Q CELLS’ expansion into the U.S. solar + storage market beyond existing solutions in Europe and Australia

IRVINE, Calif.--(BUSINESS WIRE)--Q CELLS, a renowned total energy solutions provider in solar cell and module, energy storage, downstream project business and energy retail, announced today that it has signed an agreement to acquire a 100% stake in San Francisco-based energy storage solutions company Growing Energy Labs, Inc. (Geli). The transaction is subject to customary closing conditions, including regulatory approvals.

Geli’s end-to-end software platform streamlines the energy storage development process, offering the industry’s leading solution for design, automation, and management of Battery Energy Storage Systems (BESS). Geli’s products, powered by artificial intelligence, determine the optimal size of the BESS, and maximize the stacked revenue potential for customer deployments. Geli is a pioneer in advancing BESS deployments coupled with solar and EV charging infrastructure and co-optimizing these unique assets with any electricity tariff or load profile. Geli’s products leverage an advanced cloud architecture and Industrial IoT technologies that support scalability and extensibility across multiple geographies, market segments, and hardware solutions.

Q CELLS has already launched various integrated energy solutions globally, including in Europe and Australia. Q CELLS’ acquisition of Geli is its first of an energy storage solutions company and marks its entrance into the U.S. C&I distributed energy market. Leveraging Geli’s proprietary artificial intelligence technology for designing, automating, and managing energy storage systems, Q CELLS will be able to provide integrated energy solutions through packaged hardware and software capabilities (solar+storage).

“There is increasing demand in the energy storage space for comprehensive energy solutions. We are excited to welcome the Geli team and work together to strengthen our competitiveness in the global distributed energy market. Q CELLS and Geli’s combined capabilities will allow us to provide smart energy solutions to our customers and together we can unfold the next chapter towards a cleaner tomorrow.” Hee Cheul (Charles) Kim, CEO of Q CELLS said.

“We are excited to join forces with Q CELLS,” Dan Loflin, CEO of Geli said. “Q CELLS shares our vision of the transformative power of renewables and the Internet of Energy to make the planet a cleaner, better place to live. Combining with Q CELLS will accelerate Geli’s product roadmap and strategy, bringing greater value to all of our customers and partners in all of our markets.”

About Q CELLS

Q CELLS is a renowned total energy solutions provider in solar cell and module, energy storage, downstream project business and energy retail. It is headquartered in Seoul, South Korea (Global Executive HQ) and Thalheim, Germany (Technology & Innovation HQ) with operations all over the world. Through its growing global business network spanning Europe, North America, Asia, South America, Africa and the Middle East, Q CELLS provides excellent services and long-term partnerships to its customers in the utility, commercial, governmental and residential markets. For more information, visit: http://www.q-cells.com.

About Geli

Geli, which stands for Growing Energy Labs, Inc., provides software and business solutions for designing, automating, and managing energy storage systems. Geli’s suite of products creates an ecosystem where project developers, OEMs, financiers, and project operators can deploy advanced energy projects using a seamless hardware-agnostic software platform. Geli’s solutions are powered by sophisticated artificial intelligence algorithms and years of industry experience.

Founded in 2010 by Ryan Wartena and Crispell Wagner, Geli’s software actively manages megawatts of projects deployed around the world. Geli is headquartered in San Francisco, CA and has an office in Melbourne, Australia.

Safe-Harbor Statement

This press release contains forward-looking statements. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the quotations from management in this press release and Q CELLS’ operations and business outlook, contain forward-looking statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those expressed in or suggested by the forward-looking statements. Except as required by law, Q CELLS does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contacts

Q CELLS America, Media
Katie Kim
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

: Business Wire; Posted On Aug 06, 2020

GrafTech Reports Second Quarter 2020 Results

BROOKLYN HEIGHTS, Ohio--(BUSINESS WIRE)--GrafTech International Ltd. (NYSE: EAF) (GrafTech or the Company) today announced financial results for the quarter ended June 30, 2020, including net income of $93 million, or $0.35 per share, and Adjusted EBITDA¹ of $151 million.

"GrafTech reported strong cash flow from operating activities totaling $148 million despite historic headwinds created by COVID-19. This cash flow allowed us to execute on our goals of reducing our debt and maintaining balance sheet liquidity, " said David Rintoul, President and Chief Executive Officer. "Our disciplined operational approach enabled us to align production with the current sales environment and resulted in reduced costs."

Second Quarter Results and Key Financial Measures

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(dollars in thousands, except per share amounts)	2020		2019		2020		2019

Net sales	$	280,718	$	480,390	$	599,364	$	955,384
Net income	$	92,776	$	196,368	$	215,044	$	393,804
Earnings per share ⁽²⁾	0.35		$	0.68	$	0.80	$	1.36
Adjusted EBITDA⁽¹⁾	$	151,125	$	284,404	$	330,303	$	568,219

⁽¹⁾ A non-GAAP financial measure, see below for more information and a reconciliation of EBITDA and Adjusted EBITDA to Net income (loss), the most directly comparable financial measure calculated and presented in accordance with GAAP.
⁽²⁾Earnings per share represents diluted earnings per share.

Net sales for the quarter ended June 30, 2020 were $281 million, compared to $480 million in the second quarter of 2019. Lower net sales were driven primarily by reduced sales volumes, reflecting low demand from decreased steel production levels with the impact of the COVID-19 pandemic on the economy.

Net income for the second quarter of 2020 was $93 million, or $0.35 per share, compared to $196 million, or $0.68 per share in the second quarter of 2019. Adjusted EBITDA was $151 million in the second quarter of 2020 compared to $284 million in the second quarter of 2019.

Cash flow from operating activities was $148 million in the second quarter of 2020, compared to $202 million in the comparable period of 2019. We ended the second quarter of 2020 with a strong liquidity position of approximately $435 million, consisting of cash and cash equivalents of $188 million and availability of $247 million under our revolving credit facility.

Key operating metrics

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(in thousands)	2020		2019		2020		2019
Sales volume (MT) ⁽¹⁾	31		45		65		90
Production volume (MT) ⁽²⁾	33		48		66		95
Production capacity excluding St. Marys (MT) ⁽³⁾⁽⁴⁾	51		51		102		102
Capacity utilization excluding St. Marys ⁽³⁾⁽⁵⁾	65	%	94	%	65	%	93	%
Total production capacity (MT) ⁽⁴⁾⁽⁶⁾	58		58		116		116
Total capacity utilization ⁽⁵⁾⁽⁶⁾	57	%	83	%	57	%	82	%

⁽¹⁾		Sales volume reflects only graphite electrodes manufactured by GrafTech.
⁽²⁾		Production volume reflects graphite electrodes we produced during the period.
⁽³⁾		In the first quarter of 2018, our St. Marys facility began graphitizing a limited number of electrodes sourced from our Monterrey, Mexico facility.
⁽⁴⁾		Production capacity reflects expected maximum production volume during the period under normal operating conditions, standard product mix and expected maintenance outage. Actual production may vary.
⁽⁵⁾		Capacity utilization reflects production volume as a percentage of production capacity.
⁽⁶⁾		Includes graphite electrode facilities in Calais, France; Monterrey, Mexico; Pamplona, Spain and St. Marys, Pennsylvania.

Sales volume was 31 thousand metric tons ("MT") in the second quarter of 2020 and consisted of 26 thousand MT shipped under our long-term agreements and 5 thousand MT of spot sales. Production volume was 33 thousand MT in the second quarter of 2020 compared to 48 thousand MT in the same period of 2019.

COVID-19

GrafTech is proactively managing through the COVID-19 crisis. We have quickly adapted to changing situations throughout all the regions of the world in which we operate and conduct business. Our executive-led COVID-19 response team continues to meet three times per week to monitor the situation and adapt as needed. We continue to limit travel and have employees working from home where possible. Our facilities perform temperature measurement upon entry and our team members continue to use personal protective equipment, such as masks and gloves. Daily disinfecting activities are performed and strict adherence to social distancing guidelines is required. All these activities are guided by our "COVID-Safe-Work Playbook" and "Return to Work Protocols" and are closely monitored with daily "check sheets". The result of this hard work is that we have managed to keep 99% of our employees healthy to date.

Commercial Update

GrafTech services customers at over 300 locations across the globe all of which have been impacted by COVID-19. The recovery for some customers has begun, however, each region is impacted and recovering at significantly different rates.

The commercial team worked diligently to achieve solid results in the second quarter. We delivered a total of 31,000 MT in the second quarter, of which 26,000 MT represented deliveries under our long-term agreements ("LTAs") and 5,000 MT were the result of spot sales. Our total deliveries under our LTAs were 55,000 MT for the first half of 2020 and we continue to expect deliveries under the LTAs of 100,000-115,000 MT for the full year.

As anticipated, the spot price of graphite electrodes continued to trend lower during the second quarter. Our average price for non-LTA business in Q2 was approximately $5,500 per MT and we expect further market spot price erosion in the third quarter. The needle coke market continued to soften as well.

The current market continues to challenge our customers including those with LTAs. Over the course of the COVID-19 crisis, we have received force majeure claims from approximately 35 customers. Several customers are struggling to take their committed volumes causing some delays and non-performance including a few arbitrations associated with, among other things, efforts to modify the existing contracts.

We are working hard with our valued customers to develop mutually beneficial solutions to address the current challenging environment, but we will take every measure to ensure that customers fulfill their legal obligations and commitments under these contracts. These negotiations are ongoing and have successfully resulted in modifications with some of our strategic customers to provide near-term relief while extending the term of their contracts.

Operational Update

We have been successful at keeping our plants operational through the COVID-19 crisis. We have aligned our operations to our expected sales and have maintained a 98% on-time delivery rate through these difficult times. Our Seadrift plant recently completed its scheduled maintenance outage on time and on budget.

We have eliminated discretionary spending throughout the organization and adjusted our workforce to match current production levels. We met our goal of reducing fixed production costs by 15% in the second quarter which assisted in achieving a 12% reduction year-to-date when compared to 2019 levels. We continue to manage our capital expenditures in line with our reduced target and expect approximately $35 million for the full year.

Capital Structure and Capital Allocation

During the second quarter we reduced our debt by $103 million. We will continue to prioritize balance sheet flexibility and expect to use the majority of our incremental free cash flow in 2020 to reduce debt, but will continue to examine opportunities to repurchase stock.

Outlook

The second half of 2020 will continue to be challenging as we and our customers face macro-economic headwinds. We foresee a measured recovery in the industry when the pandemic eases as customers work through inventory levels that were elevated prior to the onset of the pandemic. We expect overall demand and pricing to remain low for the remainder of 2020.

We have full confidence in the strengths of the Electric Arc Furnace and graphite electrode businesses. The environmental and economic attributes of these industries are key advantages and position them for continued growth over the longer term.

We believe GrafTech is well positioned to navigate the challenges of the current environment and the opportunities in the future recovery given our leadership position in the industry, our strong cash flows, and our advantaged cost position.

Conference Call

In conjunction with this earnings release, you are invited to listen to our earnings call being held on August 6, 2020 at 4:00 p.m. Eastern Daylight Time. The webcast and accompanying slide presentation will be available at www.GrafTech.com, in the Investors section. The earnings call dial-in number is +1 (844) 437-4785 toll-free in the U.S. and Canada or +1 (607) 598-0105 for overseas calls. A replay of the Conference Call will be available until November 6, 2020 by dialing +1 (866) 215-1112 toll-free in the U.S. and Canada or +1 (725) 223-0887 for overseas calls, conference ID: 57343. A replay of the webcast will also be available on our website until November 6, 2020, at www.GrafTech.com, in the Investors section. GrafTech also makes its complete financial reports that have been filed with the Securities and Exchange Commission (the "SEC") and other information available at www.GrafTech.com. The information in our website is not part of this release or any report we file or furnish to the SEC.

About GrafTech

GrafTech International Ltd. is a leading manufacturer of high-quality graphite electrode products essential to the production of electric arc furnace steel and other ferrous and non-ferrous metals. The Company has a competitive portfolio of low-cost graphite electrode manufacturing facilities, including three of the highest capacity facilities in the world. GrafTech is also the only large-scale graphite electrode producer that is substantially vertically integrated into petroleum needle coke, a key raw material for graphite electrode manufacturing. This unique position provides competitive advantages in product quality and cost.

Special note regarding forward-looking statements

This news release and related discussions may contain forward-looking statements that reflect our current views with respect to, among other things, future events and financial performance. You can identify these forward-looking statements by the use of forward-looking words such as “will,” “may,” “plan,” “estimate,” “project,” “believe,” “anticipate,” “expect,” “foresee”, “intend,” “should,” “would,” “could,” “target,” “goal,” “continue to,” “positioned to,” "are confident", or the negative version of those words or other comparable words. Any forward-looking statements contained in this news release are based upon our historical performance and on our current plans, estimates and expectations considering information currently available to us. The inclusion of this forward-looking information should not be regarded as a representation by us that the future plans, estimates, or expectations contemplated by us will be achieved. Our expectations and targets are not predictions of actual performance and historically our performance has deviated, often significantly, from our expectations and targets. These forward-looking statements are subject to various risks and uncertainties and assumptions relating to our operations, financial results, financial condition, business, prospects, growth strategy and liquidity. Accordingly, there are or will be important factors that could cause our actual results to differ materially from those indicated in these statements. We believe that these factors include, but are not limited to: the ultimate impact that the COVID-19 pandemic has on our business, results of operations, financial condition and cash flows; the cyclical nature of our business and the selling prices of our products may lead to periods of reduced profitability and net losses in the future; the possibility that we may be unable to implement our business strategies, including our ability to secure and maintain longer-term customer contracts, in an effective manner; the risks and uncertainties associated with litigation, arbitration, and like disputes, including disputes related to contractual commitments; the possibility that global graphite electrode overcapacity may adversely affect graphite electrode prices; pricing for graphite electrodes has historically been cyclical and the price of graphite electrodes may continue to decline in the future; the sensitivity of our business and operating results to economic conditions and the possibility others may not be able to fulfill their obligations to us in a timely fashion or at all; our dependence on the global steel industry generally and the electric arc furnace steel industry in particular; the competitiveness of the graphite electrode industry; our dependence on the supply of petroleum needle coke; our dependence on supplies of raw materials (in addition to petroleum needle coke) and energy; the possibility that our manufacturing operations are subject to hazards; changes in, or more stringent enforcement of, health, safety and environmental regulations applicable to our manufacturing operations and facilities; the legal, compliance, economic, social and political risks associated with our substantial operations in multiple countries; the possibility that fluctuation of foreign currency exchange rates could materially harm our financial results; the possibility that our results of operations could deteriorate if our manufacturing operations were substantially disrupted for an extended period, including as a result of equipment failure, climate change, regulatory issues, natural disasters, public health crises, such as the COVID-19 pandemic, political crises or other catastrophic events; our dependence on third parties for certain construction, maintenance, engineering, transportation, warehousing and logistics services; the possibility that we are unable to recruit or retain key management and plant operating personnel or successfully negotiate with the representatives of our employees, including labor unions; the possibility that we may divest or acquire businesses, which could require significant management attention or disrupt our business; the sensitivity of goodwill on our balance sheet to changes in the market; the possibility that we are subject to information technology systems failures, cybersecurity attacks, network disruptions and breaches of data security; our dependence on protecting our intellectual property; the possibility that third parties may claim that our products or processes infringe their intellectual property rights; the possibility that significant changes in our jurisdictional earnings mix or in the tax laws of those jurisdictions could adversely affect our business; the possibility that our indebtedness could limit our financial and operating activities or that our cash flows may not be sufficient to service our indebtedness; the possibility that restrictive covenants in our financing agreements could restrict or limit our operations; the fact that borrowings under certain of our existing financing agreements subjects us to interest rate risk; the possibility of a lowering or withdrawal of the ratings assigned to our debt; the possibility that disruptions in the capital and credit markets could adversely affect our results of operations, cash flows and financial condition, or those of our customers and suppliers; the possibility that highly concentrated ownership of our common stock may prevent minority stockholders from influencing significant corporate decisions; the possibility that we may not pay cash dividends on our common stock in the future; the fact that certain of our stockholders have the right to engage or invest in the same or similar businesses as us; the possibility that the market price of our common stock could be negatively affected by sales of substantial amounts of our common stock in the public markets, including by Brookfield Asset Management Inc. and its affiliates; the fact that certain provisions of our Amended and Restated Certificate of Incorporation and our Amended and Restated By-Laws could hinder, delay or prevent a change of control; the fact that the Court of Chancery of the State of Delaware will be the exclusive forum for substantially all disputes between us and our stockholders; and our status as a "controlled company" within the meaning of the New York Stock Exchange corporate governance standards, which allows us to qualify for exemptions from certain corporate governance requirements.

These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements, including the Risk Factors section included in our Annual Report on Form 10-K, our Quarterly Report on Form 10-Q for the quarterly period March 31, 2020, and other filings with the SEC. The forward-looking statements made in this press release relate only to events as of the date on which the statements are made. We do not undertake any obligation to publicly update or review any forward-looking statement, except as required by law, whether as a result of new information, future developments or otherwise.

Non-GAAP financial measures

In addition to providing results that are determined in accordance with GAAP, we have provided certain financial measures that are not in accordance with GAAP. EBITDA and Adjusted EBITDA are non-GAAP financial measures. We define EBITDA, a non-GAAP financial measure, as net income or loss plus interest expense, minus interest income, plus income taxes, and depreciation and amortization. We define adjusted EBITDA as EBITDA plus any pension and other post-employment benefit ("OPEB") plan expenses, initial and follow-on public offering and related expenses, non-cash gains or losses from foreign currency remeasurement of non-operating assets and liabilities in our foreign subsidiaries where the functional currency is the U.S. dollar, related party Tax Receivable Agreement expense, stock-based compensation, and non-cash fixed asset write-offs. Adjusted EBITDA is the primary metric used by our management and our board of directors to establish budgets and operational goals for managing our business and evaluating our performance.

We monitor adjusted EBITDA as a supplement to our GAAP measures, and believe it is useful to present to investors, because we believe that it facilitates evaluation of our period-to-period operating performance by eliminating items that are not operational in nature, allowing comparison of our recurring core business operating results over multiple periods unaffected by differences in capital structure, capital investment cycles and fixed asset base. In addition, we believe adjusted EBITDA and similar measures are widely used by investors, securities analysts, ratings agencies, and other parties in evaluating companies in our industry as a measure of financial performance and debt-service capabilities. We also monitor the ratio of total debt to adjusted EBITDA, because we believe it is a useful and widely used way to assess our leverage.

Our use of adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:

adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs;
adjusted EBITDA does not reflect our cash expenditures for capital equipment or other contractual commitments, including any capital expenditure requirements to augment or replace our capital assets;
adjusted EBITDA does not reflect the interest expense or the cash requirements necessary to service interest or principal payments on our indebtedness;
adjusted EBITDA does not reflect tax payments that may represent a reduction in cash available to us;
adjusted EBITDA does not reflect expenses relating to our pension and OPEB plans;
adjusted EBITDA does not reflect the non-cash gains or losses from foreign currency remeasurement of non-operating assets and liabilities in our foreign subsidiaries where the functional currency is the U.S. dollar;
adjusted EBITDA does not reflect initial and follow-on public offering and related expenses;
adjusted EBITDA does not reflect related party Tax Receivable Agreement expense;
adjusted EBITDA does not reflect stock-based compensation or the non-cash write-off of fixed assets; and
other companies, including companies in our industry, may calculate EBITDA and adjusted EBITDA differently, which reduces its usefulness as a comparative measure.

In evaluating EBITDA and adjusted EBITDA, you should be aware that in the future, we will incur expenses similar to the adjustments in the reconciliation presented below. Our presentations of EBITDA and adjusted EBITDA should not be construed as suggesting that our future results will be unaffected by these expenses or any unusual or non-recurring items. When evaluating our performance, you should consider EBITDA and adjusted EBITDA alongside other financial performance measures, including our net income (loss) and other GAAP measures.

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in thousands) Unaudited

	As of June 30, 2020			As of December 31, 2019
ASSETS
Current assets:
Cash and cash equivalents	$	187,656		$	80,935
Accounts and notes receivable, net of allowance for doubtful accounts of $8,247 as of June 30, 2020 and $5,474 as of December 31, 2019	181,308			247,051
Inventories	312,298			313,648
Prepaid expenses and other current assets	31,711			40,946
Total current assets	712,973			682,580
Property, plant and equipment	749,575			733,417
Less: accumulated depreciation	246,969			220,397
Net property, plant and equipment	502,606			513,020
Deferred income taxes	49,030			55,217
Goodwill	171,117			171,117
Other assets	97,710			104,230
Total assets	$	1,533,436		$	1,526,164
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	50,862		$	78,697
Short-term debt	8,141			141
Accrued income and other taxes	90,453			65,176
Other accrued liabilities	64,563			48,335
Related party payable - tax receivable agreement	16,168			27,857
Total current liabilities	230,187			220,206

Long-term debt	1,704,521			1,812,682
Other long-term obligations	82,821			72,562
Deferred income taxes	48,142			49,773
Related party payable - tax receivable agreement long-term	42,479			62,014
Stockholders’ equity:
Preferred stock, par value $0.01, 300,000,000 shares authorized, none issued	—			—
Common stock, par value $0.01, 3,000,000,000 shares authorized, 267,188,547 shares issued and outstanding as of June 30, 2020 and 270,485,308 as of December 31, 2019	2,672			2,705
Additional paid-in capital	756,812			765,419
Accumulated other comprehensive loss	(49,442		)	(7,361		)
Accumulated deficit	(1,284,756		)	(1,451,836		)
Total stockholders’ deficit	(574,714		)	(691,073		)

Total liabilities and stockholders’ equity	$	1,533,436		$	1,526,164

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands) Unaudited

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2020			2019			2020			2019
CONSOLIDATED STATEMENTS OF OPERATIONS
Net sales	$	280,718		$	480,390		$	599,364		$	955,384
Cost of sales	130,600			197,047			269,517			392,571
Gross profit	150,118			283,343			329,847			562,813
Research and development	710			713			1,422			1,350
Selling and administrative expenses	16,001			15,394			30,933			30,620
Operating profit	133,407			267,236			297,492			530,843

Other expense (income), net	311			863			(3,003		)	1,330
Related party Tax Receivable Agreement benefit	—			—			(3,346		)	—
Interest expense	20,880			32,969			46,552			66,669
Interest income	(348		)	(731		)	(1,489		)	(1,145		)
Income before provision for income taxes	112,564			234,135			258,778			463,989
Provision for income taxes	19,788			37,767			43,734			70,185
Net income	$	92,776		$	196,368		$	215,044		$	393,804

Basic income per common share:
Net income per share	$	0.35		$	0.68		$	0.80		$	1.36
Weighted average common shares outstanding	267,249,580			290,565,408			268,233,233			290,562,234
Diluted income per common share:
Income per share	$	0.35		$	0.68		$	0.80		$	1.36
Weighted average common shares outstanding	267,260,395			290,574,153			268,243,997			290,571,132

Contacts

Wendy Watson
216-676-2000

Read full story here

: Business Wire; Posted On Aug 06, 2020

Presidio Petroleum Completes Acquisition of Assets from Templar Energy in Partnership with Morgan Stanley Energy Partners

Transaction is the third acquisition by Presidio since 2018 and represents an expansion from the western Anadarko Basin into the STACK play of central Oklahoma

FORT WORTH, Texas--(BUSINESS WIRE)--Presidio Investment Holdings LLC (“Presidio Petroleum”, “Presidio”, or the “Company”) announced today that it has completed the acquisition of substantially all of the oil and natural gas producing properties of Templar Energy LLC and certain affiliates in the Anadarko Basin (“Templar”). Presidio Petroleum is a leading oil and gas efficiency company founded to acquire, operate, and optimize producing oil and natural gas properties in the Anadarko Basin and other established U.S. onshore basins. The Company leverages engineering efficiency and the embedding of technology to improve decision-making, achieve best-in-class operations, and enhance free cash flow in an environmentally and socially responsible manner.

Chris Hammack, Co-Founder and Co-Chief Executive Officer of Presidio Petroleum, said, “We are pleased to expand our Anadarko Basin operations with the addition of Templar’s high quality assets spanning the western Anadarko Basin of Texas and Oklahoma to the STACK play of central Oklahoma. This acquisition is a logical extension of the asset optimization strategy we established upon founding Presidio, and we are excited to apply the knowledge gained from our previous two acquisitions in the Basin and decades of operational experience to unlock value responsibly from the Templar assets. We believe our extensive asset base, further enhanced by this acquisition, makes Presidio the logical consolidator of the Anadarko Basin.”

Will Ulrich, Co-Founder and Co-Chief Executive Officer of Presidio Petroleum, added, “Presidio was founded with a differentiated strategy of pursuing attractive risk-adjusted returns through operational excellence and capital-efficient growth via acquisition, not drilling activity. We are excited to have completed this transaction consistent with that strategy and welcome our new employees from Templar to the Presidio team. At Presidio, we view ourselves as the leading custodians of mature, long-lived oil and gas properties in the U.S., and we are confident in our ability to serve as responsible stewards while also achieving our financial and operational objectives.”

Robert Lee, Managing Director of Morgan Stanley Energy Partners (“MSEP”), said, “We are delighted to make this second follow-on investment in support of further strategic consolidation in the Anadarko Basin. We believe Presidio’s prudent operational and risk management philosophy dating back to its inception has put the Company on solid footing to continue to execute on acquisitions in a highly dislocated energy market. We look forward to supporting the Presidio team as they implement their best-in-class operating practices on these assets.”

Headquartered in Fort Worth, Texas, Presidio Petroleum is a portfolio company majority-owned by investment funds managed by Morgan Stanley Energy Partners, the energy private equity business of Morgan Stanley Investment Management. This transaction represents the second add-on acquisition for the Company since MSEP’s initial investment in May 2018.

About Presidio Petroleum

Headquartered in Fort Worth, Texas, Presidio Petroleum is a leading oil and gas efficiency company with assets located in the Anadarko Basin of Texas, Oklahoma, and Kansas. For further information about Presidio Petroleum, please visit www.presidiopetroleum.com.

About Morgan Stanley Energy Partners

Morgan Stanley Energy Partners is the energy-focused private equity business of Morgan Stanley Investment Management that makes privately negotiated equity and equity-related investments in energy companies located primarily in North America. Morgan Stanley Energy Partners pursues a differentiated investment strategy, focused on the buyout and build-up of strategically attractive, established energy businesses across the energy value chain in partnership with world-class management teams. Morgan Stanley Investment Management together with its investment advisory affiliates has more than 700 investment professionals around the world and $665 billion in assets under management or supervision as of June 30, 2020. For further information about Morgan Stanley Energy Partners, please visit www.morganstanley.com/im/energypartners.

Contacts

Morgan Stanley Media Relations: Lauren Bellmare, 212.761.5303

: Business Wire; Posted On Aug 06, 2020

NRG Energy, Inc. Reports Second Quarter 2020 Results

PRINCETON, N.J.--(BUSINESS WIRE)--$NRG #Earnings--NRG Energy, Inc. (NYSE: NRG) today reported second quarter 2020 income from continuing operations of $313 million, or $1.27 per diluted common share and Adjusted EBITDA for the second quarter of $574 million.

“NRG delivered strong results in the first half of 2020, and our platform continues to demonstrate resilience during these critical summer months,” said Mauricio Gutierrez, NRG President and Chief Executive Officer. “We are excited by the recently announced Direct Energy acquisition and the regional diversity and expanded products and services the combination will bring to our integrated platform.”

Consolidated Financial Results

	Three Months Ended				Six Months Ended
($ in millions)	6/30/2020		6/30/2019		6/30/2020		6/30/2019
Income from Continuing Operations	$	313	$	189	$	434	$	283
Cash provided by Continuing Operations	$	484	$	516	$	692	$	417
Adjusted EBITDA	$	574	$	469	$	922	$	801
Free Cash Flow Before Growth Investments (FCFbG)	$	402	$	230	$	569	$	237

Segments Results
Table 1: Income/(Loss) from Continuing Operations
($ in millions)	Three Months Ended				Six Months Ended
Segment	6/30/2020		6/30/2019		6/30/2020		6/30/2019
Texas	$	350	$	259	$	512	$	409
East	146		60		170		159
West/Other^a	(183)		(130)		(248)		(285)
Income from Continuing Operations^b	$	313	$	189	$	434	$	283
a. Includes Corporate segment b. In accordance with GAAP, 2019 results have been recast to reflect the discontinued operations of the South Central Portfolio and Carlsbad Energy Center.

Second quarter Income from Continuing Operations was $313 million, $124 million higher than second quarter 2019, driven by mark-to-market on hedge positions in 2020 versus 2019 from large movements in gas prices and ERCOT heat rates.

Table 2: Adjusted EBITDA
($ in millions)	Three Months Ended				Six Months Ended
Segment	6/30/2020		6/30/2019		6/30/2020		6/30/2019
Texas	$	378	$	326	$	573	$	505
East	138		93		228		237
West/Other^a	58		50		121		59
Adjusted EBITDA^b,c	$	574	$	469	$	922	$	801
a. Includes Corporate segment b. In accordance with GAAP, 2019 results have been recast to reflect the discontinued operations of the South Central Portfolio and Carlsbad Energy Center. c. See Appendices A-1 through A-2 for Operating Segment Reg G reconciliations.

Texas: Second quarter Adjusted EBITDA was $378 million, $52 million higher than second quarter of 2019. This increase is driven by the acquisition of Stream Energy and lower supply costs resulting from reductions in power and fuel prices.

East: Second quarter Adjusted EBITDA was $138 million, $45 million higher than second quarter of 2019. This increase is driven by the acquisition of Stream Energy, lower supply costs due to reductions in power and natural gas prices and lower operating costs; partially offset by lower capacity revenues.

West/Other: Second quarter Adjusted EBITDA was $58 million, $8 million higher than second quarter of 2019, driven by higher margin from Sunrise facility due to improved availability and an increase in California resource adequacy pricing in 2020; partially offset by Canal 3 completion payment earned in 2019.

Liquidity and Capital Resources
Table 3: Corporate Liquidity
($ in millions)	06/30/20		12/31/19
Cash and Cash Equivalents	$	418	$	345
Restricted Cash	8		8
Total	$	426	$	353
Total credit facility availability	1,782		1,794
Total Liquidity, excluding collateral received	$	2,208	$	2,147

As of June 30, 2020, NRG cash was at $0.4 billion, and $1.8 billion was available under the Company’s credit facilities. Total liquidity was $2.2 billion, including restricted cash. Overall liquidity as of the end of the second quarter 2020 was $61 million higher than at the end of 2019, driven by free cash flow generated by the Company partially offset by share repurchases and the repayment of balances outstanding on NRG's revolver.

NRG Strategic Developments

Acquisition of Direct Energy

On July 24, 2020, the Company entered into a definitive purchase agreement with Centrica plc to acquire Direct Energy, a North American subsidiary of Centrica plc. Direct Energy is a leading retail provider of electricity, natural gas, and home and business energy related products and services in North America, with operations in all 50 U.S. states and 6 Canadian provinces. The acquisition will add over 3 million customers to NRG’s business and build on and complement its integrated model, enabling better matching of power generation with customer demand. It will also broaden the Company’s presence in the Northeast and into states and locales where it does not currently operate, supporting NRG’s objective to diversify its business.

The Company will pay an aggregate purchase price of $3.625 billion in cash, subject to customary purchase price adjustments. The Company expects to fund the purchase price using a combination of cash on hand, approximately $2.4 billion in newly-issued secured and unsecured corporate debt and approximately $750 million in convertible preferred stock or other equity-linked instrument. The Company also expects to increase its collateral facilities by $3.5 billion through a combination of new letter of credit facilities and an increase to its existing Revolving Credit Facility.

The acquisition is subject to approval by the shareholders of Centrica plc, as well as customary closing conditions, consents and regulatory approvals, including the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Act, and the receipt of approvals or expiration of applicable waiting periods under the Federal Power Act and the Canadian Competition Act.

Midwest Generation lease buyout

On July 22, 2020, Midwest Generation, LLC signed purchase agreements to acquire all of the ownership interests in the Powerton facility and Units 7 and 8 of the Joliet facility, which were being leased through 2034 and 2030, respectively, for approximately $260 million. The Company intends to fund the purchase with borrowings under its Revolving Credit Facility in an amount equal to the existing operating lease liability of $148 million as of June 30, 2020, and the remainder from cash-on-hand. The closing is conditioned, among other items, on the receipt of regulatory approvals from FERC and under the Hart-Scott-Rodino Act.

COVID-19

In March 2020, the World Health Organization categorized COVID-19 as a pandemic and the President of the United States declared the COVID-19 outbreak a national emergency. Electricity was deemed a 'critical and essential business operation' under various state and federal governmental COVID-19 mandates. As a result of COVID-19, there has been a reduction in load within the markets in which we operate since the President’s national emergency declaration; however, as state restrictions have been eased or lifted, loads have begun to recover. The rebound in demand has varied across the Company's market footprint, as restrictions vary regionally. The Company expects demand uncertainty to continue in the near future.

NRG had activated its Crisis Management Team ("CMT") in January 2020, which proactively began managing the Company's response to the impacts of COVID-19. The CMT implemented the business continuity plans for the Company and has taken a variety of measures to ensure the ongoing availability of the Company’s services, while maintaining the Company's commitment to its core values of health and safety. Pursuant to the Company’s Infectious Disease & Pandemic Policy, in March 2020, NRG implemented restrictions on business travel and face-to-face sales channels, instituted remote work practices and enhanced cleaning and hygiene protocols in all of its facilities. During the second quarter of 2020, the Company began to evaluate alternatives for return to normal work operations. In addition, in order to effectively serve the Company’s customers, select essential employees and contractors are continuing to report to plant and certain office locations. The Company requires pre-entry screening, including temperature checks, separation of work crews, additional personal protective equipment for employees and contractors when social distancing cannot be maintained, and a ban on all non-essential visitors. As a result of these business continuity measures, the Company has not experienced any material disruptions in its ability to continue its business operations to date.

NRG continues to remain focused on protecting the health and well-being of its employees, while supporting its customers and the communities in which it operates and assuring the continuity of its operations. On April 1, 2020, NRG committed $2 million to COVID-19 relief efforts, including funding for urgently needed safety equipment supporting first responders, as well as funds that aid local communities and teachers. The Company also allocated funding to the NRG Employee Relief Fund, which assists employees adversely impacted by natural disasters and other extraordinary

Reaffirming 2020 and 2021 Guidance

NRG is reaffirming its guidance range for 2020 and 2021 with respect to Adjusted EBITDA, Cash From Operations and Free Cash Flow before Growth Investments (FCFbG) as set forth below.

Table 4: 2020 and 2021 Adjusted EBITDA, Cash from Operations, and FCFbG Guidance
	2020	2021
($ in millions)	Guidance	Guidance
Adjusted EBITDA^a	$1,900-$2,100	$1,900-$2,100
Cash From Operations	$1,440-$1,640	$1,445-$1,645
FCFbG	$1,275-$1,475	$1,275-$1,475

a. Non-GAAP financial measure; see Appendix Tables A-5 for GAAP Reconciliation to Net Income that excludes fair value adjustments related to derivatives. The Company is unable to provide guidance for Net Income due to the impact of such fair value adjustments related to derivatives in a given year

Capital Allocation Update

As part of the Company's long-term capital allocation policy, the return of capital to shareholders during the first half of 2020 was comprised of a quarterly dividend of $0.30 per share, or $148 million, and share repurchases of $228 million through August 6, 2020 at an average price of $33.05 per share.

The Company does not anticipate executing any further share repurchases over the remainder of 2020 and has allocated all of its remaining 2020 excess capital to fund the Direct Energy acquisition.

The Company’s common stock dividend, debt reduction and share repurchases are subject to available capital, market conditions and compliance with associated laws and regulations.

Earnings Conference Call

NRG’s July 24, 2020 business update and conference call served as its second quarter earnings call. The Company provided a comprehensive update and review of its strategy, 2020 & 2021 guidance, capital allocation and preliminary second quarter results. Today's materials and the July 24, 2020 materials and webcast can be found on NRG’s website at http://www.nrg.com and clicking on “Presentations & Webcasts” in the “Investors” section found at the top of the home page.

About NRG

At NRG, we’re bringing the power of energy to people and organizations by putting customers at the center of everything we do. We generate electricity and provide energy solutions and natural gas to more than 3.7 million residential, small business, and commercial and industrial customers through our diverse portfolio of retail brands. A Fortune 500 company, operating in the United States and Canada, NRG delivers innovative solutions while advocating for competitive energy markets and customer choice, and by working towards a sustainable energy future. More information is available at www.nrg.com. Connect with NRG on Facebook, LinkedIn and follow us on Twitter @nrgenergy, @nrginsight.

Forward-Looking Statements

In addition to historical information, the information presented in this press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act. These statements involve estimates, expectations, projections, goals, assumptions, known and unknown risks and uncertainties and can typically be identified by terminology such as “may,” “should,” “could,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “expect,” “intend,” “seek,” “plan,” “think,” “anticipate,” “estimate,” “predict,” “target,” “potential” or “continue” or the negative of these terms or other comparable terminology. Such forward-looking statements include, but are not limited to, statements about the Company’s future revenues, income, indebtedness, capital structure, plans, expectations, objectives, projected financial performance and/or business results and other future events, and views of economic and market conditions.

Although NRG believes that its expectations are reasonable, it can give no assurance that these expectations will prove to be correct, and actual results may vary materially. Factors that could cause actual results to differ materially from those contemplated herein include, among others, the potential impact of COVID-19 or any other pandemic on the Company’s operations, financial position, risk exposure and liquidity, general economic conditions, hazards customary in the power industry, weather conditions, competition in wholesale power markets, the volatility of energy and fuel prices, failure of customers to perform under contracts, changes in the wholesale power markets, changes in government regulations, the condition of capital markets generally, our ability to access capital markets, cyberterrorism and inadequate cybersecurity, unanticipated outages at our generation facilities, adverse results in current and future litigation, failure to identify, execute or successfully implement acquisitions, repowerings or asset sales, our ability to implement value enhancing improvements to plant operations and companywide processes, our ability to achieve margin enhancement under our publicly announced transformation plan, our ability to achieve our net debt targets, our ability to maintain investment grade credit metrics, our ability to proceed with projects under development or the inability to complete the construction of such projects on schedule or within budget, the inability to maintain or create successful partnering relationships, our ability to operate our business efficiently, our ability to retain retail customers, our ability to realize value through our commercial operations strategy, the ability to consummate the Direct Energy acquisition, the ability to successfully integrate businesses of acquired companies including Direct Energy, our ability to realize anticipated benefits of transactions (including expected cost savings and other synergies) or the risk that anticipated benefits may take longer to realize than expected, and our ability to execute our Capital Allocation Plan. Achieving investment grade credit metrics is not a indication of or guarantee that the Company will receive investment grade credit ratings. Debt and share repurchases may be made from time to time subject to market conditions and other factors, including as permitted by United States securities laws. Furthermore, any common stock dividend is subject to available capital and market conditions.

NRG undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. The adjusted EBITDA, free cash flow guidance and excess cash guidance are estimates as of August 6, 2020. These estimates are based on assumptions the company believed to be reasonable as of that date. NRG disclaims any current intention to update such guidance, except as required by law. The foregoing review of factors that could cause NRG’s actual results to differ materially from those contemplated in the forward-looking statements included in this press release should be considered in connection with information regarding risks and uncertainties that may affect NRG's future results included in NRG's filings with the Securities and Exchange Commission at www.sec.gov.

NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
	Three months ended June 30,				Six months ended June 30,
(In millions, except for per share amounts)	2020		2019		2020		2019
Operating Revenues
Total operating revenues	$	2,238	$	2,465	$	4,257	$	4,630
Operating Costs and Expenses
Cost of operations	1,434		1,845		2,891		3,496
Depreciation and amortization	110		85		219		170
Impairment losses	—		1		—		1
Selling, general and administrative costs	208		211		417		405
Reorganization costs	—		2		3		15
Development costs	2		2		5		4
Total operating costs and expenses	1,754		2,146		3,535		4,091
Gain on sale of assets	—		1		6		2
Operating Income	484		320		728		541
Other Income/(Expense)
Equity in earnings/(losses) of unconsolidated affiliates	12		—		1		(21)
Impairment losses on investments	—		—		(18)		—
Other income, net	14		20		41		32
Loss on debt extinguishment, net	—		(47)		(1)		(47)
Interest expense	(96)		(105)		(193)		(219)
Total other expense	(70)		(132)		(170)		(255)
Income from Continuing Operations Before Income Taxes	414		188		558		286
Income tax expense/(benefit)	101		(1)		124		3
Income from Continuing Operations	313		189		434		283
Income from discontinued operations, net of income tax	—		13		—		401
Net Income	313		202		434		684
Less: Net income attributable to redeemable noncontrolling interests	—		1		—		1
Net Income Attributable to NRG Energy, Inc.	$	313	$	201	$	434	$	683
Earnings per Share
Weighted average number of common shares outstanding — basic	245		265		246		272
Income from continuing operations per weighted average common share — basic	$	1.28	$	0.71	$	1.76	$	1.04
Income from discontinued operations per weighted average common share — basic	$	—	$	0.05	$	—	$	1.47
Earnings per Weighted Average Common Share — Basic	$	1.28	$	0.76	$	1.76	$	2.51
Weighted average number of common shares outstanding — diluted	246		267		247		274
Income from continuing operations per weighted average common share — diluted	$	1.27	$	0.70	$	1.76	$	1.03
Income from discontinued operations per weighted average common share — diluted .........................................................................................................	$	—	$	0.05	$	—	$	1.46
Earnings per Weighted Average Common Share — Diluted	$	1.27	$	0.75	$	1.76	$	2.49

NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)
	Three months ended June 30,				Six months ended June 30,
	2020		2019		2020		2019
	(In millions)
Net Income	$	313	$	202	$	434	$	684
Other Comprehensive Income/(Loss)
Foreign currency translation adjustments	13		(1)		(2)		—
Available-for-sale securities	—		1		—		1
Defined benefit plans	—		(3)		—		(6)
Other comprehensive income/(loss)	13		(3)		(2)		(5)
Comprehensive Income	326		199		432		679
Less: Comprehensive income attributable to redeemable noncontrolling interest	—		1		—		1
Comprehensive Income Attributable to NRG Energy, Inc.	$	326	$	198	$	432	$	678

NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS
	June 30, 2020		December 31, 2019
(In millions, except share data)	(Unaudited)		(Audited)
ASSETS
Current Assets
Cash and cash equivalents	$	418	$	345
Funds deposited by counterparties	36		32
Restricted cash	8		8
Accounts receivable, net	1,015		1,025
Inventory	388		383
Derivative instruments	791		860
Cash collateral paid in support of energy risk management activities	136		190
Prepayments and other current assets	284		245
Total current assets	3,076		3,088
Property, plant and equipment, net	2,533		2,593
Other Assets
Equity investments in affiliates	372		388
Operating lease right-of-use assets, net	429		464
Goodwill	579		579
Intangible assets, net	733		789
Nuclear decommissioning trust fund	794		794
Derivative instruments	439		310
Deferred income taxes	3,170		3,286
Other non-current assets	212		240
Total other assets	6,728		6,850
Total Assets	$	12,337	$	12,531
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Current portion of long-term debt	$	7	$	88
Current portion of operating lease liabilities	69		73
Accounts payable	736		722
Derivative instruments	728		781
Cash collateral received in support of energy risk management activities	36		32
Accrued expenses and other current liabilities	581		663
Total current liabilities	2,157		2,359
Other Liabilities
Long-term debt	5,810		5,803
Non-current operating lease liabilities	458		483
Nuclear decommissioning reserve	307		298
Nuclear decommissioning trust liability	478		487
Derivative instruments	299		322
Deferred income taxes	17		17
Other non-current liabilities	1,061		1,084
Total other liabilities	8,430		8,494
Total Liabilities	10,587		10,853
Redeemable noncontrolling interest in subsidiaries	—		20
Commitments and Contingencies
Stockholders' Equity
Common stock; $0.01 par value; 500,000,000 shares authorized; 423,031,777 and 421,890,790 shares issued and 244,137,848 and 248,996,189 shares outstanding at June 30, 2020 and December 31, 2019, respectively	4		4
Additional paid-in-capital	8,505		8,501
Accumulated deficit	(1,331)		(1,616)
Less treasury stock, at cost - 178,893,929 and 172,894,601 shares at June 30, 2020 and December 31, 2019, respectively	(5,234)		(5,039)
Accumulated other comprehensive loss	(194)		(192)
Total Stockholders' Equity	1,750		1,658
Total Liabilities and Stockholders' Equity	$	12,337	$	12,531

NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)	Six months ended June 30,
(In millions)	2020		2019
Cash Flows from Operating Activities
Net Income	$	434	$	684
Income from discontinued operations, net of income tax	—		401
Income from continuing operations	434		283
Adjustments to reconcile net income to cash provided by operating activities:
Distributions from and equity in (earnings)/losses of unconsolidated affiliates.	7		22
Depreciation and amortization	219		170
Accretion of asset retirement obligations.	18		14
Provision for credit losses	48		52
Amortization of nuclear fuel	25		27
Amortization of financing costs and debt discount/premiums	12		13
Loss on debt extinguishment, net	1		47
Amortization of emissions allowances and energy credits	33		14
Amortization of unearned equity compensation	12		10
(Gain)/loss on sale of assets and disposal of assets	(15)		1
Impairment losses	18		1
Changes in derivative instruments	(131)		(22)
Changes in deferred income taxes and liability for uncertain tax benefits	116		(5)
Changes in collateral deposits in support of energy risk management activities	58		125
Changes in nuclear decommissioning trust liability	36		17
Changes in other working capital	(199)		(352)
Cash provided by continuing operations	692		417
Cash provided by discontinued operations	—		8
Net Cash Provided by Operating Activities	692		425
Cash Flows from Investing Activities
Payments for acquisitions of businesses	(5)		(21)
Capital expenditures	(116)		(107)
Net purchases of emission allowances	(4)		(1)
Investments in nuclear decommissioning trust fund securities	(257)		(209)
Proceeds from the sale of nuclear decommissioning trust fund securities	220		191
Proceeds from sale of assets, net of cash disposed and sale of discontinued operations, net of fees	15		1,289
Net distributions from investments in unconsolidated affiliates	2		7
Contributions to discontinued operations	—		(44)
Cash (used)/provided by continuing operations	(145)		1,105
Cash used by discontinued operations	—		(2)
Net Cash (Used)/Provided by Investing Activities	(145)		1,103
Cash Flows from Financing Activities
Payments of dividends to common stockholders	(148)		(16)
Payments for share repurchase activity	(229)		(1,075)
Payments for debt extinguishment costs	—		(24)
Purchase of and distributions to noncontrolling interests from subsidiaries	(2)		(1)
Proceeds from issuance of common stock	1		2
Proceeds from issuance of long-term debt	59		1,833
Payment of debt issuance costs	(1)		(33)
Repayments of long-term debt	(61)		(2,485)
Net repayment of Revolving Credit Facility	(83)		—
Other	(5)		—
Cash used by continuing operations	(469)		(1,799)
Cash provided by discontinued operations	—		43
Net Cash Used by Financing Activities	(469)		(1,756)
Effect of exchange rate changes on cash and cash equivalents	(1)		—
Change in Cash from discontinued operations	—		49
Net Increase/(Decrease) in Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash	77		(277)
Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at Beginning of Period .............................................................................................................................................................................	385		613
Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at End of Period ..............................................................................................................................................................................	$	462	$	336

Contacts

Media:
Candice Adams
609.524.5428

Investors:
Kevin L. Cole, CFA
609.524.4526

Read full story here

: Business Wire; Posted On Aug 06, 2020

Fluence and Quality Wholesale Partner to Expand Inventory of LED Lighting Solutions for Horticulture Throughout Canada

AUSTIN, Texas--(BUSINESS WIRE)--Fluence by OSRAM (Fluence), a leading global provider of energy-efficient LED lighting solutions for commercial cannabis and agriculture production, announced today it has partnered with Burnaby, British Columbia-based Quality Wholesale Ltd., a leading garden wholesaler specializing in the distribution of agricultural products throughout Canada.

Celebrating its 20th year of serving the horticulture industry, Quality Wholesale is regarded for its reliability in supplying the best industry products to growers, from hobby and micro cultivators to large commercial cultivators. Under the partnership, Quality Wholesale will distribute Fluence LED lighting solutions to retail garden centers and commercial growers throughout Canada starting in August.

“Collaborating with Quality Wholesale enables us to expand our footprint and reach more growers across Canada,” said Ron DeKok, vice president of sales for Fluence. “We are proud to partner with a company dedicated to helping customers achieve successful cultivation results that also embodies its namesake by carrying top-of-the-line inventory and offering an experience grounded in quality service.”

As the demand for advanced, high quality LED lighting solutions increases, Fluence and Quality Wholesale are making Fluence products easily and readily available to retailers and licensed producers, helping growers access the latest technology and research.

“We are thrilled to partner with Fluence, a true leader in the lighting industry,” said Michael Montagano of Quality Wholesale. “Fluence’s commitment to exploring science, conducting research and developing technology to increase the efficacy of horticulture lighting thoroughly impressed our team. Our focus is to always provide the highest quality products to our customers. With Fluence, we’re confident that growers are investing in the proven technology that they deserve.”

For more information about Quality Wholesale, visit www.qualitywholesale.ca. For more information about Fluence, visit www.fluence.science.

About Fluence by OSRAM

Fluence Bioengineering, Inc., a wholly-owned subsidiary of OSRAM SYLVANIA, creates powerful and energy-efficient LED lighting solutions for commercial crop production and research applications. Fluence is a leading LED lighting supplier in the global cannabis market and is committed to enabling more efficient crop production with the world’s top vertical farms and greenhouse produce growers. Fluence global headquarters are based in Austin, Texas, with its EMEA headquarters in Rotterdam, Netherlands. For more information about Fluence, visit www.fluence.science.

About Quality Wholesale Ltd.

Quality Wholesale Ltd. is a privately held garden and agricultural wholesaler specializing in distributing horticultural products throughout North America. The company provides unparalleled distribution capabilities and an exceptional service experience. Quality Wholesale is dedicated to offering an industry-leading, innovative, trusted product portfolio to a variety of businesses. Quality Wholesale is celebrating 20 years of serving the horticultural industry, and is based in Burnaby, British Columbia, Canada. For more information about Quality Wholesale, visit www.qualitywholesale.ca.

Contacts

Emma Chase
This email address is being protected from spambots. You need JavaScript enabled to view it.
512-917-4319

: Business Wire; Posted On Aug 06, 2020

Algoma Central Corporation Reports Operating Results for the Three and Six Months Ended June 30, 2020

ST. CATHARINES, Ontario--(BUSINESS WIRE)--Algoma Central Corporation (“Algoma” or “the Company”) (TSX: ALC), a leading provider of marine transportation services, today announced its results for the three and six months ended June 30, 2020.

All amounts reported below are in thousands of Canadian dollars, except for per share data and unless otherwise noted.

Second quarter ended June 30, 2020 highlights include:

Operating earnings were $28,999, an increase of 3% or $916 compared to the same period in 2019. Increases in operating earnings resulting from growth in the size of our Ocean Self-Unloader and Tanker fleets were partially offset by lower dry-bulk volumes caused by the impact of COVID-19 on customers in both our ocean and domestic business units.
Revenues were $151,270 compared to $159,169 for the 2019 quarter. Revenues in all business units were affected by lower fuel cost recovery charges and lower levels of customer demand.
Operating earnings for Domestic Dry-Bulk were $19,429, up 5% compared to $18,570 in 2019, as higher freight rates and cost mitigation actions offset the impact of reduced volumes in certain customer sectors.
Operating earnings for Product Tankers were $8,124, up 14% compared to $7,131 in 2019, primarily as a result of increased revenue days from the addition of the Algoterra, which joined our fleet part way through the second quarter last year.
Operating earnings in Ocean Self-Unloaders were $3,749, down 13% compared to $4,316 for 2019. Decreases in Pool volumes, particularly in the construction sector, and the impact of scheduled dry-dockings drove this decrease, despite the increase in the fleet size.
Net earnings were $17,742 compared to $22,113 for 2019, as higher interest and tax costs, combined with reduced earnings from joint ventures, more than offset the improvement in operating earnings.

Basic earnings per share for the three months ended June 30, 2020 were $0.47 compared to $0.58 for the same period in 2019. For the six months ended June 30, 2020 the basic loss per share was $0.16 compared to a loss of $0.02 for the same period in the prior year.

EBITDA, which includes our share of joint venture EBITDA, for the three months ended June 30, 2020 was $53,951 an increase of 2% or $1,260, compared to the same period in 2019. EBITDA is determined as follows:

	Three Months Ended				Six Months Ended
For the periods ended June 30	2020		2019		2020		2019
Net earnings (loss)	$	17,742	$	22,114	$	(5,884)	$	(687)
Depreciation and amortization	22,696		21,268		45,539		40,122
Interest and taxes	12,294		10,483		8,754		5,118
Foreign exchange loss (gain)	1,219		(1,174)		(64)		1,221
EBITDA	$	53,951	$	52,691	$	48,345	$	45,774

"First and foremost, these solid results demonstrate the resilience of our people," said Gregg Ruhl, President and Chief Executive Officer of Algoma. "Because of their passion for their work, for Algoma and for the customers and industries we serve, our operations never missed a beat even as the impacts of COVID-19 hit just as we were fitting out many of our vessels for the 2020 season." Mr. Ruhl continued, "Our results also demonstrate the resilience of our business model. We were able to right-size our operating fleet quickly in the face of reduced demand, keeping our most efficient and modern tonnage fully and profitably trading by idling older, less profitable vessels. Our pricing also largely remained firm in the face of a sudden supply/demand imbalance, as our book of business is made up primarily of longer term arrangements with our customers."

Outlook
Our dry-bulk businesses are tied closely to the inventory cycles of our key customers. Domestically, our spring business is largely driven by inventory replenishment following a winter in which no raw materials can be delivered to manufacturing facilities. Demand in the summer typically moderates and we expect that impact will be more significant for our 2020 third quarter than is ordinarily the case, as a result of the impact of COVID-19 on our customers' production planning. Our international self-unloaders typically experience modestly higher demand in the summer, driven by the timing of construction and infrastructure projects. We expect this will also be less evident in 2020, as a majority of materials in these sectors is moved into US markets. Concern about a second wave and rising infections adds uncertainty to predictions about all of our markets. While there are some signs of cautious optimism as the economy re-opens, we expect the recovery will have a lagging impact in our markets, perhaps not being felt significantly until later in 2020 or in 2021.

	Three Months Ended				Six Months Ended
For the periods ended June 30	2020		2019		2020		2019

Revenue	$	151,270	$	159,169	$	236,367	$	231,022
Operating expenses	(96,339)		(107,739)		(181,672)		(182,350)
Selling, general and administrative	(7,290)		(6,711)		(15,673)		(15,581)
Depreciation and amortization	(18,642)		(16,636)		(37,456)		(31,600)
Operating earnings	28,999		28,083		1,566		1,491

Interest expense	(5,185)		(4,859)		(10,176)		(8,584)
Interest income	40		336		226		759
Foreign currency (loss) gain	(68)		1,534		174		(604)
	23,786		25,094		(8,210)		(6,938)

Income tax (expense) recovery	(6,139)		(4,203)		3,494		6,230
Net earnings (loss) from investments in joint ventures	95		1,223		(1,168)		21

Net Earnings (Loss)	$	17,742	$	22,114	$	(5,884)	$	(687)

Basic earnings (loss) per share	$	0.47	$	0.58	$	(0.16)	$	(0.02)
Diluted earnings (loss) per share	$	0.45	$	0.55	$	(0.16)	$	(0.02)

	Three Months Ended				Six Months Ended
For the periods ended June 30	2020		2019		2020		2019
Domestic Dry-Bulk
Revenue	$	78,957	$	86,974	$	100,052	$	104,827
Operating earnings (loss)	19,429		18,570		(6,980)		(7,038)
Product Tankers
Revenue	36,021		39,943		60,446		67,015
Operating earnings	8,124		7,131		6,577		8,779
Ocean Self-Unloaders
Revenue	33,518		29,130		69,895		52,569
Operating earnings	3,749		4,316		7,398		5,745
Corporate and Other
Revenue	2,774		3,122		5,974		6,611
Operating loss	(2,303)		(1,934)		(5,429)		(5,995)

The MD&A for the three and six months ended June 30, 2020 includes further details. Full results for the three and six months ended June 30, 2020 can be found on the Company’s website at www.algonet.com/investor-relations and on SEDAR at www.sedar.com.

Normal Course Issuer Bid

On March 19, 2020, the Company renewed its normal course issuer bid with the intention to purchase, through the facilities of the TSX, up to 1,890,457 of its Common Shares ("Shares") representing approximately 5% of the 37,809,143 Shares which were issued and outstanding as at the close of business on March 4, 2020 (the “NCIB”). In order to preserve capital, no common shares were purchased under the NCIB during the second quarter.

Cash Dividends

The Company’s Board of Directors have authorized payment of a quarterly dividend to shareholders of $0.13 per common share. The dividend will be paid on September 1, 2020 to shareholders of record on August 18, 2020.

Use of Non-GAAP Measures

There are measures included in this press release that do not have a standardized meaning under generally accepted accounting principles (GAAP). The Company includes these measures because it believes certain investors use these measures as a means of assessing financial performance. EBITDA is a non-GAAP measure that does not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies. Please refer to the Management’s Discussions and Analysis for the three and six months ended June 30, 2020 for further information regarding non-GAAP measures.

About Algoma Central

Algoma owns and operates the largest fleet of dry and liquid bulk carriers operating on the Great Lakes - St. Lawrence Waterway, including self-unloading dry-bulk carriers, gearless dry-bulk carriers, cement carriers, and product tankers. Algoma also owns ocean self-unloading dry-bulk vessels operating in international markets and a 50% interest in NovaAlgoma, which owns and operates a diversified portfolio of dry-bulk fleets serving customers internationally.

Contacts

Gregg A. Ruhl
President & CEO
905-687-7890

Peter D. Winkley
Chief Financial Officer
905-687-7897

Or visit
www.algonet.com or www.sedar.com

: Business Wire; Posted On Aug 06, 2020

Insights on the Solar Simulators Global Market to 2027 - Featuring Asahi Spectra, Endeas & Newport Among Others - ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)--The "Solar Simulators - Global Market Trajectory & Analytics" report has been added to ResearchAndMarkets.com's offering.

The publisher brings years of research experience to the 8th edition of this report. The 241-page report presents concise insights into how the pandemic has impacted production and the buy side for 2020 and 2021. A short-term phased recovery by key geography is also addressed.

Global Solar Simulators Market to Reach $9.6 Billion by 2027

Amid the COVID-19 crisis, the global market for Solar Simulators estimated at US$6.8 Billion in the year 2020, is projected to reach a revised size of US$9.6 Billion by 2027, growing at a CAGR of 5.1% over the analysis period 2020-2027. Class AAA, one of the segments analyzed in the report, is projected to record a 5.5% CAGR and reach US$4.7 Billion by the end of the analysis period. After an early analysis of the business implications of the pandemic and its induced economic crisis, growth in the Class ABA segment is readjusted to a revised 5.2% CAGR for the next 7-year period.

The U.S. Market is Estimated at $2 Billion, While China is Forecast to Grow at 4.8% CAGR

The Solar Simulators market in the U.S. is estimated at US$2 Billion in the year 2020. China, the world`s second largest economy, is forecast to reach a projected market size of US$1.7 Billion by the year 2027 trailing a CAGR of 4.8% over the analysis period 2020 to 2027. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 4.9% and 4% respectively over the 2020-2027 period. Within Europe, Germany is forecast to grow at approximately 4.1% CAGR.

Class ABB Segment to Record 4% CAGR

In the global Class ABB segment, USA, Canada, Japan, China and Europe will drive the 4% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$1 Billion in the year 2020 will reach a projected size of US$1.4 Billion by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$1.1 Billion by the year 2027.

Competitors identified in this market include, among others:

Abet Technologies, Inc.
Asahi Spectra Co., Ltd.
Endeas Oy
Iwasaki Electric Co., Ltd.
Meyer Burger Technology Ltd.
Newport Corporation
Nisshinbo Mechatronics, Inc.
OAI
Sciencetech-Inc.
Solar Light Company, Inc.
Spectrolab, Inc.
Wacom Electric Co., Ltd.

Key Topics Covered:

I. INTRODUCTION, METHODOLOGY & REPORT SCOPE

II. EXECUTIVE SUMMARY

1. MARKET OVERVIEW

Global Competitor Market Shares
Solar Simulator Competitor Market Share Scenario Worldwide (in %): 2019 & 2025
Impact of Covid-19 and a Looming Global Recession

2. FOCUS ON SELECT PLAYERS

3. MARKET TRENDS & DRIVERS

4. GLOBAL MARKET PERSPECTIVE

III. MARKET ANALYSIS

IV. COMPETITION

Total Companies Profiled: 46

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

Contacts

: Business Wire; Posted On Aug 06, 2020

FLIR Systems Announces Second Quarter 2020 Financial Results

- Second Quarter Revenue of $482.0 Million
- Record Total Backlog of $912.8 Million
- Second Quarter GAAP Diluted Earnings Per Share (“EPS”) of $0.47
- Second Quarter Adjusted Diluted EPS of $0.64

ARLINGTON, Va.--(BUSINESS WIRE)--FLIR Systems, Inc. (NASDAQ: FLIR) (“FLIR” or the “Company”), a world leader in the design, manufacture, and marketing of intelligent sensing technologies, today announced financial results for the second quarter ended June 30, 2020.

Commenting on FLIR’s second quarter results, Jim Cannon, President and Chief Executive Officer, said, “I am extremely pleased with our strong performance and operational execution in the quarter amid unprecedented challenges. This quarter marked the second consecutive quarter of record-breaking total backlog, and we continue to build a robust, sustainable pipeline with several key program wins. Additionally, we are beginning to realize cost savings from the successful execution of Project Be Ready, which aims to better align resources with higher growth opportunities, while reducing costs. We also continue to see demand for our Elevated Skin Temperature—or EST—solutions and we are extremely proud of the role our products and technologies continue to play in helping mitigate the spread of COVID-19. Importantly, our continued emphasis on cash optimization has provided financial flexibility as we enter the second half of the year.”

Mr. Cannon continued, “I am humbled and inspired by the commitment of our employees around the globe and their dedication to our mission to save lives and livelihoods during this crucial time. As we look ahead, we remain focused on ensuring the safety of our employees, delivering the mission-critical products our customers need and continuing to create value for our shareholders. We are confident that the purposeful diversity of our product portfolio will continue to be a competitive strength for FLIR in the quarters ahead. We look forward to emerging from this difficult environment as an even stronger company.”

Summary Results

Revenues for the quarter were $482.0 million, consistent with the prior year quarter. Bookings totaled $546.3 million in the quarter, representing a book-to-bill ratio of 1.13. Backlog at the end of the quarter was a record $912.8 million, reflecting a 12.8% increase relative to the prior year quarter.

GAAP Earnings Results

Gross profit for the quarter was $252.2 million, compared to $233.4 million in the prior year quarter. Gross margin increased to 52.3% from 48.4% in the prior year quarter, primarily attributable to favorable product mix in the Industrial Technologies segment. Earnings from operations for the quarter was $99.8 million, compared to $63.7 million in the prior year quarter. Operating margin increased to 20.7% from 13.2% in the prior year quarter, primarily as a result of higher revenue and gross profit in the Industrial Technologies segment as well as decreases in intangible asset amortization, marketing, travel, and deferred compensation expenses. Diluted EPS was $0.47, compared to $0.34 in the prior year quarter. The weighted average diluted share count for the quarter was 132 million, down from 137 million in the prior year quarter primarily due to stock repurchase activity initiated in the first quarter of 2020.

Non-GAAP Earnings Results

Adjusted gross profit for the quarter was $261.9 million, compared to $246.3 million in the prior year quarter. Adjusted gross margin increased to 54.3% from 51.1% in the prior year quarter, primarily attributable to favorable product mix in the Industrial Technologies segment. Adjusted operating income for the quarter was $126.1 million, compared to $95.8 million in the prior year quarter. Adjusted operating margin increased to 26.2% from 19.9% in the prior year quarter, primarily as a result of higher revenue and gross profit in the Industrial Technologies segment and decreases in marketing, travel, and deferred compensation expenses. Adjusted diluted EPS was $0.64, compared to $0.52 in the prior year quarter.

Segment Results

Industrial Technologies Segment

Industrial Technologies revenues for the quarter were $300.2 million, representing an increase of $15.7 million, or 5.5% compared to the prior year quarter. The revenue increase was primarily attributable to heightened demand for EST solutions as a result of the COVID-19 pandemic, partially offset by lower volume in commercial end markets such as maritime and security products.

Industrial Technologies segment operating income was $107.1 million, compared to $71.6 million in the prior year quarter. Segment operating margin increased to 35.7% from 25.2% in the prior year quarter, primarily attributable to the aforementioned higher revenue and associated gross profit, favorable product mix, and lower marketing, travel, and deferred compensation expenses.

Industrial Technologies bookings totaled $334.0 million for the quarter, representing a book-to-bill ratio of 1.11. Backlog at the end of the quarter was $350.7 million, reflecting a 48.1% increase relative to the prior year quarter, primarily as a result of award timing and increased orders for EST solutions.

Defense Technologies Segment

Defense Technologies revenues for the quarter of $181.8 million decreased by $15.7 million, or 7.9% compared to the prior year quarter. The revenue decrease was primarily attributable to the completion of certain contracts that contributed to revenue in the prior year quarter partially offset by increased volumes for unmanned systems.

Defense Technologies segment operating income was $41.2 million, compared to $45.8 million in the prior year quarter. Segment operating margin decreased to 22.6% from 23.2% in the prior year quarter, primarily attributable to the aforementioned lower revenue and associated gross profit.

Defense Technologies bookings totaled $212.2 million for the quarter, representing a book-to-bill ratio of 1.17. Backlog at the end of the quarter was $562.1 million, reflecting an 1.8% decrease relative to the prior year quarter, primarily as a result of order and subsequent deployment timing for a few major programs.

Balance Sheet and Liquidity

FLIR ended the second quarter of 2020 with $333 million in cash and cash equivalents and approximately $365 million in borrowing capacity under its credit facility based on current profitability levels and leverage covenants.

After the end of the quarter, on July 20, 2020 the Company announced the pricing of a public offering of $500 million aggregate principal amount 2.5% notes due August 1, 2030 (the “Notes”). FLIR expects to receive net proceeds of approximately $494 million, after deducting underwriting discounts and estimated offering expenses. The proceeds from the sale of the Notes are expected to be used to redeem FLIR’s $425 million in aggregate principal amount of 3.125% notes due June 15, 2021 (the “2021 notes”), and for general corporate purposes, which may include funding for working capital, investments in its subsidiaries, capital expenditures, or acquisitions. On August 3, 2020, the Company completed the offering and the Notes were issued. The Company intends to redeem the 2021 notes in full on August 19, 2020.

COVID-19 Update

As previously announced, FLIR’s businesses have been deemed essential for critical infrastructure under the Cybersecurity and Infrastructure Security Agency exemption, and all of its manufacturing facilities remain operational. FLIR has implemented stringent safety protocols and continues to monitor recommendations and guidelines issued by the Centers for Disease Control, the European Centre for Disease Prevention, and the World Health Organization to ensure the health and safety of its employees.

Given the high degree of uncertainty in the current macroeconomic environment resulting from COVID-19, the Company remains focused on cash optimization activities, disciplined capital allocation, and executing Project Be Ready to simplify its product portfolio and better align resources with higher growth opportunities while reducing costs.

Shareholder Return Activity

FLIR’s Board of Directors has declared a quarterly cash dividend of $0.17 per share on FLIR common stock, payable on September 4, 2020, to shareholders of record as of close of business on August 21, 2020.

FLIR expects to continue to provide returns to its stockholders in the form of quarterly dividends. However, in accordance with the Company’s focus on cash optimization activities given the macroeconomic uncertainty resulting from COVID-19, FLIR’s share repurchase program remained paused throughout the second quarter of 2020.

Financial Outlook

The COVID-19 pandemic has generated significant uncertainty, including an overall lack of visibility into future demand trends and economic conditions in the markets in which FLIR operates. The Company is continuing to closely monitor the impact of the pandemic on its operational and financial performance and take action as necessary; however, the magnitude and duration of the outbreak including its impact to FLIR’s operations, supply chain partners and customers remains uncertain. As a result, the Company has withdrawn its previously issued guidance for the full year ending December 31, 2020.

Conference Call

FLIR has scheduled a conference call at 9:00 a.m. Eastern Time today to discuss its results for the quarter. The details for the conference call can be found below. A simultaneous webcast of the conference call and the accompanying summary presentation may be accessed online from a link in the Events & Presentations section of the Company’s Investor Relations website at www.FLIR.com/investor. A replay will be available upon completion of the conference call at this same internet address. Summary second quarter and historical financial data may be accessed online from the Financial Info Database link under the Financials & Filings section of the Company’s Investor Relations website.

Second Quarter Financial Results Conference Call

Date:	Thursday, August 6, 2020
Time:	9:00 a.m. Eastern Time / 6:00 a.m. Pacific Time
Dial-in:	1-877-407-9039 (Domestic) 1-201-689-8470 (International)
Conference ID:	13705998
Webcast:	http://public.viavid.com/index.php?id=140427
Replay:	For those unable to participate during the live broadcast, a replay of the call will also be available from 12:00 p.m. Eastern Time on August 6, 2020 through 11:59 p.m. Eastern Time on August 20, 2020 by dialing 1-844-512-2921 (domestic) and 1-412-317-6671 (international) and referencing the replay pin number: 13705998.

About FLIR Systems, Inc.

Founded in 1978, FLIR Systems is a world-leading industrial technology company focused on intelligent sensing solutions for defense and industrial applications. FLIR Systems’ vision is to be “The World’s Sixth Sense,” creating technologies to help professionals make more informed decisions that save lives and livelihoods. For more information, please visit www.flir.com and follow @flir.

Forward-Looking Statements

Statements, estimates or projections in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that are not statements of historical fact (including statements containing the words “believes,” “plans,” “anticipates,” “expects,” “estimates,” or similar expressions) should be considered to be forward looking statements. Such statements are based on current expectations, estimates, and projections about FLIR’s business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including the following:

risks related to United States government spending decisions and applicable procurement rules and regulations;
negative impacts to operating margins due to reductions in sales or changes in product mix;
impairments in the value of tangible and intangible assets;
unfavorable results of legal proceedings;
risks associated with international sales and business activities, including the regulation of the export and sale of our products worldwide and our ability to obtain and maintain necessary export licenses, as well as the imposition of significant tariffs or other trade barriers;
risks related to subcontractor and supplier performance and financial viability as well as raw material and component availability and pricing;
risks related to currency fluctuations;
adverse general economic conditions or volatility in our primary markets;
our ability to compete effectively and to respond to technological change;
risks related to product defects or errors;
our ability to protect our intellectual property and proprietary rights
cybersecurity and other security threats and technology disruptions
our ability to successfully manage acquisitions, investments and divestiture activities and integrate acquired companies;
our ability to achieve the intended benefits of our strategic restructuring;
our ability to attract and retain key senior management and qualified technical, sales and other personnel;
risks to our supply chain, production facilities or other operations, and changes to general, domestic, and foreign economic conditions, due to the COVID-19 pandemic; and
other risks discussed from time to time in filings and reports filed with the Securities and Exchange Commission.

COVID-19 may exacerbate one or more of the aforementioned and/or other risks, uncertainties and other factors more fully described in the Company’s reports filed with the SEC. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic and international economic conditions. Such forward-looking statements speak only as of the date on which they are made and FLIR does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release, or for changes made to this document by wire services or internet service providers.

Definitions and Non-GAAP Financial Measures

Bookings are defined as contractual agreements awarded during the reporting period. Backlog is defined as total estimated amount of future revenues to be recognized under negotiated contracts.

We report our financial results in accordance with United States generally accepted accounting principles (GAAP). As a supplement to our GAAP financial results, this earnings announcement contains some or all of the following non-GAAP financial measures: (i) adjusted gross profit, (ii) adjusted gross margin (defined as adjusted gross profit divided by revenue), (iii) adjusted operating income, (iv) adjusted operating margin (defined as adjusted operating income divided by revenue), (v) adjusted net earnings, and (vi) adjusted diluted EPS. These non-GAAP measures of financial performance are not prepared in accordance with GAAP and computational methods may differ from those used by other companies. Additionally, these non-GAAP measures should not be considered a substitute for any other performance measure determined in accordance with GAAP, and the Company cautions investors and potential investors to consider these measures in addition to, not as a substitute for, its consolidated financial results as presented in accordance with GAAP. Each of the non-GAAP measures is adjusted from GAAP results as outlined in the "GAAP to Non-GAAP Reconciliation" table included within this earnings release.

In calculating non-GAAP financial measures, we exclude certain items to facilitate a review of the comparability of our core operating performance on a period-to-period basis. Items excluded consist of: (i) separation, transaction, and integration costs, (ii) amortization of acquired intangibles, (iii) restructuring expenses and asset impairment charges, (iv) discrete legal and compliance matters, and (v) discrete tax items. We do not consider these items to be directly related to our core operating performance. Non-GAAP measures are used internally to evaluate the core operating performance of our business, for comparison with forecasts and strategic plans, and as a factor for determining incentive compensation for certain employees. Accordingly, supplementing GAAP financial results with these non-GAAP financial measures enables the comparison of our ongoing operating results in a manner consistent with the metrics reviewed by management. We believe that these non-GAAP measures, when read in conjunction with our GAAP financials, provide useful information to investors by facilitating:

the comparability of our ongoing operating results over the periods presented;
the ability to identify trends in our underlying business; and
the comparison of our operating results against analyst financial models and operating results of other public companies that supplement their GAAP results with non-GAAP financial measures.

The following are explanations of each type of adjustment that we incorporate into non-GAAP financial measures:

Separation, transaction, and integration costs – Represents transaction and integration costs related to divestiture and acquisition initiatives.
Amortization of acquired intangibles – Represents amortization expense associated with acquired intangible assets.
Restructuring expenses and asset impairment charges – Represents employee separation expenses, facility termination costs, and other expenses as well as goodwill, intangible asset, and inventory impairment charges associated with Company restructuring activities.
Discrete legal and compliance matters – Represents costs incurred associated with certain legal and compliance matters that are not representative of ongoing operational costs. These expenses are primarily attributable to an administrative agreement with the U.S. Department of State (the “Consent Agreement”) to address and remediate certain historical practices associated with U.S. and international trade control laws and regulations. Such costs include a Directorate of Defense Trade Controls penalty, expenses associated with retention of a Special Compliance Officer, and remedial actions required by the terms of the Consent Agreement or otherwise necessary to remedy and achieve full compliance with U.S. and international trade control laws and regulations.
Discrete tax items – Represents tax expenses and benefits related to discrete events or transactions that are not representative of the Company’s estimated tax rate related to ongoing operations. These items include charges and reversals of provisions associated with certain unrecognized tax benefits, benefits or charges associated with the windfalls or shortfalls resulting from vesting and exercise activity of share-based compensation, benefits associated with the reversal of previously recorded valuation allowances against certain deferred tax assets, and other discrete items not included in the annual effective tax rate associated with our ongoing operations.

Adjusted net earnings and adjusted diluted EPS include an estimate to reflect the tax effect of the discrete items identified above. The tax effect is calculated by applying the Company’s overall estimated effective tax rate, excluding significant discrete items, to earnings before income taxes.

FLIR Systems, Inc. Consolidated Statements of Income (In thousands, except per share amounts)(Unaudited)

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

Revenue	$	482,015		$	481,998		$	932,938		$	926,734
Cost of goods sold		229,815			248,590			461,370			459,465
Gross profit		252,200			233,408			471,568			467,269

Operating expenses:
Research and development		56,012			52,957			109,859			100,637
Selling, general and administrative		88,676			113,713			204,918			218,203
Restructuring expenses		7,702			3,001			28,486			3,610
Total operating expenses		152,390			169,671			343,263			322,450

Earnings from operations		99,810			63,737			128,305			144,819

Interest expense		6,962			7,272			13,923			12,788
Interest income		(127	)		(438	)		(476	)		(1,495	)
Other expense (income), net		11,081			(1,220	)		9,766			646

Earnings before income taxes		81,894			58,123			105,092			132,880

Income tax provision		20,637			12,005			28,411			25,014

Net earnings	$	61,257		$	46,118		$	76,681		$	107,866

Net earnings per share:
Basic earnings per share	$	0.47		$	0.34		$	0.58		$	0.80
Diluted earnings per share	$	0.47		$	0.34		$	0.57		$	0.79

Weighted average shares outstanding:
Basic		130,831			135,519			132,213			135,530
Diluted		131,687			137,084			133,389			137,105

Note: The Company made certain reclassifications to the prior years' financial statements to conform them to the presentation as of and for the three and six months ended June 30, 2020 that management has determined had no material effect for the periods presented.

FLIR Systems, Inc. Consolidated Balance Sheets (In thousands)(Unaudited)
	June 30,			December 31,
	2020			2019
ASSETS
Current assets:
Cash and cash equivalents	$	332,958		$	284,592
Accounts receivable, net		304,981			318,652
Inventories		433,908			388,762
Prepaid expenses and other current assets		114,429			116,728
Total current assets		1,186,276			1,108,734

Property and equipment, net		255,770			255,905
Deferred income taxes, net		41,393			39,983
Goodwill		1,340,989			1,364,596
Intangible assets, net		222,123			247,514
Other assets		110,746			120,809
Total assets	$	3,157,297		$	3,137,541
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	147,487		$	158,033
Deferred revenue		30,319			28,587
Accrued payroll and related liabilities		79,981			72,476
Accrued product warranties		15,887			14,611
Advance payments from customers		14,142			28,005
Accrued expenses		32,892			40,815
Accrued income taxes		24,273			14,735
Other current liabilities		34,721			27,349
Credit facility		191,000			16,000
Long-term debt, current portion		12,465			12,444
Total current liabilities		583,167			413,055

Long-term debt, net of current portion		643,265			648,419
Deferred income taxes		40,405			53,544
Accrued income taxes		57,243			55,514
Other long-term liabilities		82,516			95,576

Shareholders’ equity:
Preferred stock, $0.01 par value, 10,000 shares authorized; no shares issued at June 30, 2020 and December 31, 2019
Common stock, $0.01 par value, 500,000 shares authorized, 131,106 and 134,394 shares issued at June 30, 2020 and December 31, 2019, respectively, and additional paid-in capital		10,778			16,692
Retained earnings		1,925,732			2,020,686
Accumulated other comprehensive loss		(185,809	)		(165,945	)
Total shareholders' equity		1,750,701			1,871,433

Total liabilities and shareholders' equity	$	3,157,297		$	3,137,541

FLIR Systems, Inc. Consolidated Statements of Cash Flows (In thousands)(Unaudited)
	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2020			2019			2020			2019

Cash flows from operating activities:
Net earnings	$	61,257		$	46,118		$	76,681		$	107,866
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		23,525			32,253			47,750			48,915
Stock-based compensation		13,241			9,188			20,887			17,278
Loss on disposal of assets		594			-			3,585			-
Minority interest impairment charges		4,803			-			4,803			-
Deferred income taxes		(348	)		1,965			(513	)		2,187
Other, net		6,370			(2,292	)		3,218			(3,620	)
Increase (decrease) in cash, net of acquisitions, resulting from changes in:
Accounts receivable		(855	)		6,643			11,263			(19,128	)
Inventories		(32,311	)		(6,132	)		(46,764	)		(23,604	)
Prepaid expenses and other current assets		1,214			(13,431	)		1,596			(11,487	)
Other assets		6,070			(47	)		5,679			3,612
Accounts payable		(12,072	)		427			(10,480	)		26,446
Deferred revenue		(242	)		6,394			1,898			1,863
Accrued payroll and other liabilities		(19,291	)		(5,216	)		(8,207	)		(13,273	)
Accrued income taxes		18,375			(6,163	)		12,116			(7,885	)
Other long term liabilities		(7,181	)		(1,917	)		(9,497	)		(5,869	)
Net cash provided by operating activities		63,149			67,790			114,015			123,301

Cash flows from investing activities:
Additions to property and equipment, net		(14,525	)		(8,641	)		(27,242	)		(17,781	)
Proceeds from sale of assets		-			-			-			2,973
Business acquisitions, net of cash acquired		-			(22,900	)		-			(602,456	)
Minority interest and other investments		304			-			304			(5,000	)
Net cash used in investing activities		(14,221	)		(31,541	)		(26,938	)		(622,264	)

Cash flows from financing activities:
Net proceeds from credit facility and long-term debt, including current portion		-			-			175,000			723,054
Repayment of credit facility and long-term debt		(3,114	)		(3,095	)		(6,135	)		(378,095	)
Repurchase of common stock		-			(24,998	)		(150,000	)		(49,996	)
Dividends paid		(22,278	)		(23,033	)		(45,006	)		(46,064	)
Proceeds from shares issued pursuant to stock-based compensation plans		5,850			7,629			7,309			17,350
Tax paid for net share exercises and issuance of vested restricted stock units		(9,192	)		(9,333	)		(10,071	)		(10,346	)
Other financing activities		-			(103	)		-			(522	)
Net cash (used in) provided by financing activities:		(28,734	)		(52,933	)		(28,903	)		255,381

Effect of exchange rate changes on cash and cash equivalents		4,149			1,206			(9,808	)		323

Net increase (decrease) in cash and cash equivalents		24,343			(15,478	)		48,366			(243,259	)
Cash and cash equivalents, beginning of period		308,615			284,363			284,592			512,144
Cash and cash equivalents, end of period	$	332,958		$	268,885		$	332,958		$	268,885

Contacts

Investor Relations
Lasse Glassen
Addo Investor Relations
This email address is being protected from spambots. You need JavaScript enabled to view it.
(424) 238-6249

Read full story here

: Business Wire; Posted On Aug 06, 2020

Pacific Coast Oil Trust Provides Update on NYSE Delisting

HOUSTON--(BUSINESS WIRE)--PACIFIC COAST OIL TRUST (NYSE: ROYT) today announced that it has received notification from the New York Stock Exchange (“NYSE”) of its determination to suspend trading of the Trust’s units of beneficial interest (the “Trust units”), effective as of the close of trading on August 5, 2020, and to initiate proceedings to delist the Trust units. The determination to commence the delisting proceeding results from the Trust’s inability to satisfy the continued listing compliance standards set forth under Rule 802.01C of the NYSE Listed Company Manual because the average closing price of the Trust units fell below $1.00 over a 30 consecutive trading-day period that ended November 25, 2019, and the Trust was unable to regain compliance with the applicable standards within a cure period that concluded on August 5, 2020.

As a result of the suspension, the Trust expects that the Trust units will begin trading on August 6, 2020 under the symbol “ROYTL” on the OTC Pink Market, which is operated by OTC Markets Group Inc. (“OTC Pink”). To be quoted on OTC Pink, a market maker must sponsor the security and comply with SEC Rule 15c2-11 before it can initiate a quote in a specific security. OTC Pink is a significantly more limited market than the NYSE, and the quotation of the Trust units on OTC Pink may result in a less liquid market available for existing and potential unitholders and could further depress the trading price of the Trust units. There is no assurance that an active market in the Trust units will develop on OTC Pink.

Cautionary Statement Regarding Forward-Looking Information

This press release contains statements that are “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release, other than statements of historical facts, are “forward-looking statements” for purposes of these provisions. These forward-looking statements include the Trust’s expectations regarding the timing of the transition of the quotation of the Trust units to OTC Pink and expectations regarding the trading of the Trust units on OTC Pink. Statements made in this press release are qualified by the cautionary statements made in this press release. The Trustee does not intend, and does not assume any obligation, to update any of the statements included in this press release. An investment in units issued by Pacific Coast Oil Trust is subject to the risks described in the Trust’s Annual Report on Form 10-K for the year ended December 31, 2018 and all of its other filings with the SEC. The Trust’s quarterly and other filed reports are or will be available over the Internet at the SEC’s website at http://www.sec.gov.

Contacts

Pacific Coast Oil Trust
The Bank of New York Mellon Trust Company, N.A., as Trustee
Sarah Newell
1(512) 236-6555

: Business Wire; Posted On Aug 06, 2020

Cheniere Partners Reports Second Quarter 2020 Results and Reconfirms Full Year 2020 Distribution Guidance

HOUSTON--(BUSINESS WIRE)--Cheniere Energy Partners, L.P. (NYSE American: CQP):

Summary of Second Quarter 2020 Results (in millions, except LNG data)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020			2019
Revenues	$	1,470	$	1,705	$	3,188		$	3,454
Net income	$	406	$	232	$	841		$	617
Adjusted EBITDA¹	$	846	$	591	$	1,638		$	1,198
LNG exported:
Number of cargoes	58		85			150		162
Volumes (TBtu)	205		301			530		576
LNG volumes loaded (TBtu)	207		305			534		578

Summary Full Year 2020 Distribution Guidance
					2020
Distribution per Unit					$	2.55	-	$	2.65

Recent Highlights

Operational

As of July 31, 2020, more than 1,025 cumulative LNG cargoes totaling over 70 million tonnes of LNG have been produced, loaded, and exported from the SPL Project (defined below).

Financial

In May 2020, Sabine Pass Liquefaction, LLC (“SPL”) issued an aggregate principal amount of $2.0 billion of 4.500% Senior Secured Notes due 2030. Net proceeds of the offering, along with cash on hand, were used to redeem all of SPL’s outstanding 5.625% Senior Secured Notes due 2021.

Liquefaction Project Update

		SPL Project
		Train 6
Project Status		Under Construction
Project Completion Percentage ⁽¹⁾		63.9% ⁽²⁾
Expected Substantial Completion		2H 2022
Note: Project update excludes Trains in operation
(1) Project completion percentage as of June 30, 2020
(2) Engineering 96.5% complete, procurement 91.1% complete, and construction 25.3% complete

Cheniere Energy Partners, L.P. (“Cheniere Partners”) (NYSE American: CQP) reported net income of $406 million and $841 million, respectively, for the three and six months ended June 30, 2020 compared to $232 million and $617 million for the comparable 2019 periods. The increases in net income for the three and six months ended June 30, 2020 were primarily due to increased total margins²and decreased costs related to certain maintenance and related activities at the SPL Project which occurred in the 2019 periods, partially offset by increased loss on modification or extinguishment of debt and costs incurred in response to the COVID-19 pandemic. The increase in net income for the six months ended June 30, 2020 was further partially offset by increased interest expense and increased operating and maintenance expenses primarily related to additional Trains in operation.

Total margins increased during the three and six months ended June 30, 2020 primarily due to accelerated revenues recognized from LNG cargoes for which customers have notified us that they will not take delivery and an increase in margins per MMBtu of LNG delivered to customers and recognized in income, partially offset by a decrease in volumes of LNG recognized in income primarily due to cargoes for which long-term customers have not elected delivery. During the six months ended June 30, 2020, the increase in total margin was further partially offset by a decrease in net gains from changes in fair value of commodity derivatives. Margins per MMBtu of LNG delivered to customers and recognized in income increased during the three and six months ended June 30, 2020 primarily due to a higher proportion of total volumes sold under higher-margin long-term contracts, partially offset by a decrease in market pricing for short-term cargoes sold.

Adjusted EBITDA¹ was $846 million for the three months ended June 30, 2020, compared to $591 million for the comparable 2019 period, and $1.64 billion for the six months ended June 30, 2020, compared to $1.20 billion for the comparable 2019 period. The increases in Adjusted EBITDA during the three and six months ended June 30, 2020 were primarily due to accelerated revenues recognized from LNG cargoes for which customers have notified us that they will not take delivery and an increase in margins per MMBtu of LNG delivered to customers and recognized in income as detailed above, partially offset by a decrease in volumes of LNG recognized in income primarily due to cargoes for which long-term customers have not elected delivery and costs incurred in response to the COVID-19 pandemic.

During the three and six months ended June 30, 2020, we recognized $388 million and $404 million, respectively, in revenues recognized from LNG cargoes for which customers have notified us that they will not take delivery, of which $244 million would have otherwise been recognized subsequent to June 30, 2020, if the cargoes were lifted pursuant to the delivery schedules with the customers. LNG revenues during the three months ended June 30, 2020 excluded $16 million that would have otherwise been recognized during the quarter if the cargoes were lifted pursuant to the delivery schedules with the customers, as these revenues were recognized during the three months ended March 31, 2020. Excluding the $244 million impact of cargo cancellations related to periods subsequent to June 30, 2020 and those received in prior periods for the current periods, our total revenues would have been $1.24 billion and $2.94 billion for the three and six months ended June 30, 2020, respectively.

During the three and six months ended June 30, 2020, 58 and 150 LNG cargoes, respectively, were exported from the SPL Project, none of which were commissioning cargoes.

Cargo Cancellation Revenue Summary

	Three Months			Six Months
	Ended			Ended
	June 30, 2020			June 30, 2020
Total revenues	$	1,470		$	3,188
Impact of cargo cancellations recognized in the prior period for deliveries scheduled in the current period	16			—
Impact of cargo cancellations recognized in the current period for deliveries scheduled in subsequent periods	(244		)	(244		)
Total revenues excluding the timing impact of cargo cancellations	$	1,242		$	2,944

SPL Project

We operate five natural gas liquefaction Trains and are constructing one additional Train for a total production capacity of approximately 30 million tonnes per annum (“mtpa”) of LNG at the Sabine Pass LNG terminal (the “SPL Project”).

Distributions to Unitholders

We will pay a cash distribution per common and subordinated unit of $0.645 to unitholders of record as of August 7, 2020 and the related general partner distribution on August 14, 2020. The payment of such distribution will result in the conversion of the subordinated units into common units on a one-for-one basis on August 17, 2020.

Investor Conference Call and Webcast

Cheniere Energy, Inc. will host a conference call to discuss its financial and operating results for the second quarter 2020 on Thursday, August 6, 2020, at 11 a.m. Eastern time / 10 a.m. Central time. A listen-only webcast of the call and an accompanying slide presentation may be accessed through our website at www.cheniere.com. Following the call, an archived recording will be made available on our website. The call and accompanying slide presentation may include financial and operating results or other information regarding Cheniere Partners.


¹		Non-GAAP financial measure. See “Reconciliation of Non-GAAP Measures” for further details
²		Total margins as used herein refers to total revenues less cost of sales.

About Cheniere Partners

Cheniere Partners is developing, constructing and operating natural gas liquefaction facilities at the Sabine Pass LNG terminal located in Cameron Parish, Louisiana, on the Sabine-Neches Waterway less than four miles from the Gulf Coast. Cheniere Partners is currently operating five natural gas liquefaction Trains and is constructing one additional Train for a total production capacity of approximately 30 mtpa of LNG at the Sabine Pass terminal. The Sabine Pass LNG terminal has operational regasification facilities that include five LNG storage tanks, two marine berths and vaporizers and an additional marine berth that is under construction. Cheniere Partners also owns the Creole Trail Pipeline, a 94-mile pipeline that interconnects the Sabine Pass LNG terminal with a number of large interstate pipelines.

For additional information, please refer to the Cheniere Partners website at www.cheniere.com and Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, filed with the Securities and Exchange Commission.

Forward-Looking Statements

This press release contains certain statements that may include “forward-looking statements.” All statements, other than statements of historical or present facts or conditions, included herein are “forward-looking statements.” Included among “forward-looking statements” are, among other things, (i) statements regarding Cheniere Partners’ financial and operational guidance, business strategy, plans and objectives, including the development, construction and operation of liquefaction facilities, (ii) statements regarding expectations regarding regulatory authorizations and approvals, (iii) statements expressing beliefs and expectations regarding the development of Cheniere Partners’ LNG terminal and liquefaction business, (iv) statements regarding the business operations and prospects of third parties, (v) statements regarding potential financing arrangements, (vi) statements regarding future discussions and entry into contracts, and (vii) statements regarding the COVID-19 pandemic and its impact on our business and operating results. Although Cheniere Partners believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Cheniere Partners’ actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in Cheniere Partners’ periodic reports that are filed with and available from the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required under the securities laws, Cheniere Partners does not assume a duty to update these forward-looking statements.

(Financial Tables Follow)

Cheniere Energy Partners, L.P.
Consolidated Statements of Income
(in millions, except per unit data)⁽¹⁾
(unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2020			2019			2020			2019
Revenues
LNG revenues	$	1,332		$	1,171		$	2,781		$	2,538
LNG revenues—affiliate	61			455			249			760
Regasification revenues	68			67			135			133
Other revenues	9			12			23			23
Total revenues	1,470			1,705			3,188			3,454

Operating costs and expenses
Cost of sales (excluding items shown separately below)	398			880			1,097			1,759
Cost of sales—affiliate	5			—			5			—
Operating and maintenance expense	165			162			317			300
Operating and maintenance expense—affiliate	48			37			81			66
General and administrative expense	8			3			10			6
General and administrative expense—affiliate	24			27			49			48
Depreciation and amortization expense	138			138			276			252
Impairment expense and loss on disposal of assets	—			3			5			5
Total operating costs and expenses	786			1,250			1,840			2,436

Income from operations	684			455			1,348			1,018

Other income (expense)
Interest expense, net of capitalized interest	(236		)	(230		)	(470		)	(417		)
Loss on modification or extinguishment of debt	(42		)	—			(43		)	—
Other income, net	—			7			6			16
Total other expense	(278		)	(223		)	(507		)	(401		)

Net income	$	406		$	232		$	841		$	617

Basic and diluted net income per common unit	$	0.78		$	0.44		$	1.62		$	1.19

Weighted average number of common units outstanding used for basic and diluted net income per common unit calculation	348.6			348.6			348.6			348.6


(1)		Please refer to the Cheniere Energy Partners, L.P. Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, filed with the Securities and Exchange Commission.

Cheniere Energy Partners, L.P.
Consolidated Balance Sheets
(in millions, except unit data) ⁽¹⁾

	June 30,			December 31,
	2020			2019
ASSETS	(unaudited)
Current assets
Cash and cash equivalents	$	1,341		$	1,781
Restricted cash	167			181
Accounts and other receivables, net	291			297
Accounts receivable—affiliate	2			105
Advances to affiliate	140			158
Inventory	101			116
Derivative assets	20			17
Other current assets	100			51
Other current assets—affiliate	1			1
Total current assets	2,163			2,707

Property, plant and equipment, net	16,584			16,368
Operating lease assets, net	97			94
Debt issuance costs, net	19			15
Non-current derivative assets	37			32
Other non-current assets, net	157			168
Total assets	$	19,057		$	19,384

LIABILITIES AND PARTNERS’ EQUITY
Current liabilities
Accounts payable	$	12		$	40
Accrued liabilities	410			709
Due to affiliates	36			46
Deferred revenue	22			155
Deferred revenue—affiliate	—			1
Current operating lease liabilities	7			6
Derivative liabilities	6			9
Total current liabilities	493			966

Long-term debt, net	17,566			17,579
Non-current operating lease liabilities	90			87
Non-current derivative liabilities	1			16
Other non-current liabilities	1			1
Other non-current liabilities—affiliate	18			20

Partners’ equity
Common unitholders’ interest (348.6 million units issued and outstanding at June 30, 2020 and December 31, 2019)	1,943			1,792
Subordinated unitholders’ interest (135.4 million units issued and outstanding at June 30, 2020 and December 31, 2019)	(937		)	(996		)
General partner’s interest (2% interest with 9.9 million units issued and outstanding at June 30, 2020 and December 31, 2019)	(118		)	(81		)
Total partners’ equity	888			715
Total liabilities and partners’ equity	$	19,057		$	19,384


(1)		Please refer to the Cheniere Energy Partners, L.P. Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, filed with the Securities and Exchange Commission.

Reconciliation of Non-GAAP Measures

Regulation G Reconciliation

In addition to disclosing financial results in accordance with U.S. GAAP, the accompanying news release contains a non-GAAP financial measure. Adjusted EBITDA is a non-GAAP financial measure that is used to facilitate comparisons of operating performance across periods. This non-GAAP measure should be viewed as a supplement to and not a substitute for our U.S. GAAP measures of performance and the financial results calculated in accordance with U.S. GAAP, and the reconciliation from these results should be carefully evaluated.

Adjusted EBITDA is calculated by taking net income before interest expense, net of capitalized interest, changes in the fair value and settlement of our interest rate derivatives, taxes, depreciation and amortization, and adjusting for the effects of certain non-cash items, other non-operating income or expense items and other items not otherwise predictive or indicative of ongoing operating performance, including the effects of modification or extinguishment of debt, changes in the fair value of our commodity derivatives, impairment expense and loss on disposal of assets, and non-recurring costs related to our response to the COVID-19 outbreak which are incremental to and separable from normal operations. Adjusted EBITDA is not intended to represent cash flows from operations or net income as defined by U.S. GAAP and is not necessarily comparable to similarly titled measures reported by other companies.

We believe Adjusted EBITDA provides relevant and useful information to management, investors and other users of our financial information in evaluating the effectiveness of our operating performance in a manner that is consistent with management’s evaluation of business performance. Management believes Adjusted EBITDA is widely used by investors to measure a company’s operating performance without regard to items such as interest expense, taxes, depreciation and amortization which vary substantially from company to company depending on capital structure, the method by which assets were acquired and depreciation policies. Further, the exclusion of certain non-cash items, other non-operating income or expense items and other items not otherwise predictive or indicative of ongoing operating performance enables comparability to prior period performance and trend analysis.

Adjusted EBITDA

The following table reconciles our Adjusted EBITDA to U.S. GAAP results for the three and six months ended June 30, 2020 and 2019 (in millions):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2020			2019			2020			2019
Net income	$	406		$	232		$	841		$	617
Interest expense, net of capitalized interest	236			230			470			417
Loss on modification or extinguishment of debt	42			—			43			—
Other income, net	—			(7		)	(6		)	(16		)
Income from operations	$	684		$	455		$	1,348		$	1,018
Adjustments to reconcile income from operations to Adjusted EBITDA:
Depreciation and amortization expense	138			138			276			252
Gain from changes in fair value of commodity derivatives, net	(9		)	(5		)	(26		)	(77		)
Impairment expense and loss on disposal of assets	—			3			5			5
Incremental costs associated with COVID-19 response	33			—			35			—
Adjusted EBITDA	$	846		$	591		$	1,638		$	1,198

Contacts

Cheniere Energy Partners, L.P.
Investors
Randy Bhatia, 713-375-5479
Megan Light, 713-375-5492
or
Media Relations
Eben Burnham-Snyder, 713-375-5764
Jenna Palfrey, 713-375-5491

: Business Wire; Posted On Aug 06, 2020

Superior Plus Announces August 2020 Cash Dividend and Upcoming Events

TORONTO--(BUSINESS WIRE)--Superior Plus Corp. (TSX: SPB):

August 2020 Cash Dividend - $0.06 per share

Superior Plus Corp. (“Superior”) today announced its cash dividend for the month of August 2020 of $0.06 per share payable on September 15, 2020. The record date is August 31, 2020 and the ex-dividend date will be August 28, 2020. Superior’s annualized cash dividend rate is currently $0.72 per share. This dividend is an eligible dividend for Canadian income tax purposes.

Upcoming Release of 2020 Second Quarter Results and Conference Call

Superior expects to release its 2020 second quarter results on Wednesday, August 12, 2020 after market close. A conference call and webcast to discuss the 2020 second quarter results is scheduled for 10:30 AM EDT on Thursday, August 13, 2020. To participate in the call, dial: 1-844-389-8661. Internet users can listen to the call live, or as an archived call, on Superior's website at: www.superiorplus.com under the Events section.

About the Corporation

Superior consists of three primary operating businesses: Canadian propane distribution includes the distribution of retail propane in Canada and the marketing of wholesale natural gas liquids in Canada and California, U.S. propane distribution includes the distribution of retail propane and other liquid fuels primarily in the Eastern United States, as well as the Midwest and California, and Specialty Chemicals includes the production and distribution of specialty chemicals products.

For further information about Superior, please visit our website at: www.superiorplus.com or contact: Beth Summers, Executive Vice President and Chief Financial Officer, Tel: (416) 340-6015, or Rob Dorran, Vice President, Investor Relations and Treasurer, Tel: (416) 340-6003, E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it., Toll Free: 1-866-490-PLUS (7587).

Forward Looking Information

This news release contains certain forward-looking information and statements that are based on Superior’s current expectations, estimates, projections and assumptions in light of its experience and its perception of historical trends. In this news release, such forward-looking information and statements can be identified by terminology such as “will”, "expects", "annualized", and similar expressions.

In particular, this news release contains forward-looking statements and information relating to: future dividends which may be declared on Superior’s common shares, the dividend payment, the tax treatment thereof, and the receipt of cash dividends. These forward-looking statements are being made by Superior based on certain assumptions that Superior has made in respect thereof as at the date of this news release, regarding, among other things: the success of Superior’s operations; prevailing commodity prices, margins, volumes and exchange rates; that Superior’s future results of operations will be consistent with past performance and management expectations in relation thereto; the continued availability of capital at attractive prices to fund future capital requirements; future operating costs; that any required commercial agreements can be reached; that all required regulatory and environmental approvals can be obtained on the necessary terms in a timely manner. These forward-looking statements are not guarantees of future performance and are subject to a number of known and unknown risks and uncertainties, including, but not limited to: the regulatory environment and decisions; non-performance of agreements in accordance with their terms; the impact of competitive entities and pricing; reliance on key industry partners and agreements; actions by governmental or regulatory authorities including changes in tax laws and treatment, or increased environmental regulation; adverse general economic and market conditions in Canada, North America and elsewhere; fluctuations in operating results; labour and material shortages; and certain other risks detailed from time to time in Superior’s public disclosure documents including, among other things, those detailed under the heading "Risk Factors" in Superior’s management's discussion and analysis and annual information form for the year ended December 31, 2019, which can be found at www.sedar.com.

Accordingly, readers are cautioned that events or circumstances could cause results to differ materially from those predicted, forecasted or projected. Such forward-looking statements are expressly qualified by the above statements. Superior does not undertake any obligation to publicly update or revise any forward looking statements or information contained herein, except as required by applicable laws.

Contacts

Beth Summers
Executive Vice President and Chief Financial Officer
Tel: (416) 340-6015

Rob Dorran
Vice President, Investor Relations and Treasurer
Tel: (416) 340-6003
Toll Free: 1-866-490-PLUS (7587)
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

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