The state is constructing tens of thousands of new buildings that cost more to build and lock in higher CO2 emissions all amid growing efforts to accelerate emission reductions
DENVER--(BUSINESS WIRE)--A report commissioned by Community Energy finds that the upfront cost to build new residential buildings with all-electric space and water heating is roughly 25% less expensive than comparable equipment powered by natural gas. Similar, but smaller percentage savings arise for new all-electric commercial buildings. This shift to all-electric has not yet occurred, however, principally because current electricity rates and rebate programs for all-electric systems in Colorado produce higher total costs.
Prepared by Group14 Engineering, the report further concludes that once buildings are constructed, the economics of retrofitting from natural gas to all-electric are far more difficult — bordering on cost prohibitive. As a result, Colorado is currently building tens of thousands of new residential and commercial buildings that both cost more and lock in higher CO2 emissions for the majority of a building’s +50-year life.
“Colorado spent over $16 billion on new residential and commercial construction in 2019, with the overwhelming majority of these new buildings relying on natural gas,” said Eric Blank, Co-Founder and Director of Community Energy, Inc. “Colorado has a near-term opportunity to modify its energy rates and rebate programs to encourage building electrification and accelerate the clean energy transition.”
Through a detailed economic case study of an individual single-family residence and commercial building in Colorado, the report shows that the state can quickly modify its rates and rebates to make all-electric the most cost-effective choice. This would begin to move new construction toward all-electric, enabling a low-carbon future.
“Simple changes today can make a large difference in realizing the low-hanging fruit of electrifying new building construction and reducing carbon emissions, all while providing comparable comfort and service,” said the report’s lead author Celeste Cizik, Principal at Group14 Engineering.
------------------------------------------------------------------------------------------------------------------------------------------
About Community Energy:
For more than twenty years, Community Energy has partnered with utilities, Fortune 500 companies and local communities to develop roughly 2,000 MW of wind and solar, representing a close to $4 Billion investment. As an early entrant in commercializing clean energy, Community Energy leverages emerging technologies and resources to support decarbonization of our energy systems and promote fuel-free approaches. Headquartered in Radnor, Pennsylvania, with offices in Boulder, Colorado and Chapel Hill, North Carolina, Community Energy has a strong presence in diverse geographical markets. For more information about Community Energy please visit www.communityenergyinc.com.
About Group14 Engineering:
Group14 Engineering is a nationally recognized engineering and sustainability consulting firm delivering technical expertise, practical solutions and innovative best practices in the built environment that benefit developers, building owners, their occupants and society throughout the life-cycle of the building. Group14’s mission is to transform the built environment to realize a more resilient future. Based in Denver and in business since 1992, Group14 Engineering brings solutions to projects throughout the United States. For more information about Group14 Engineering, please visit www.group14eng.com.
The Full Report is available at www.communityenergyinc.com/COelec
Antenna Group on behalf of Community Energy
Regan Keller
415-977-1933
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Landmark agreement with EDF Renewables North America will see Masdar expand its footprint in the US to California and Nebraska, and grow presence in Texas
The clean energy assets include wind, solar PV, and battery storage projects with a total combined capacity of 1.6 GW
SAN DIEGO & ABU DHABI, United Arab Emirates--(BUSINESS WIRE)--EDF Renewables North America and Masdar, one of the world’s leading clean energy developers and a subsidiary of Mubadala Investment Company, today announced Masdar’s second strategic investment in the United States (US) in a deal with EDF Renewables North America that will see it acquire a 50 percent stake in a 1.6-gigawatt (GW) clean-energy portfolio.
Under the terms of the agreement, Masdar has acquired a 50 percent interest in three utility-scale wind farms in Nebraska and Texas totalling 815 megawatts (MW), and five photovoltaic (PV) solar projects in California – two of which include battery energy storage systems – totalling 689 MW of solar and 75 MW of lithium-ion battery energy storage.
The 243 MW Coyote wind project is located in Scurry County, Texas; the 273 MW Las Majadas wind project is in Willacy County, Texas; and the 300 MW Milligan 1 wind project is in Saline County, Nebraska. All three wind projects are currently under construction and expected to begin commercial operations in the fourth quarter of 2020.
In Riverside County, California, the Desert Harvest 1 and Desert Harvest 2 PV projects total 213 MW of solar and 35 MW / 140 MWh of battery storage. Also in Riverside County are the 173 MW Maverick 1 and 136 MW Maverick 4 solar PV projects. These four projects are also under construction and slated for commercial operations in the fourth quarter of 2020. The final project in the portfolio is Big Beau, a 166 MW solar PV and 40 MW/160 MWh battery energy storage project, which is in Kern County and will reach commercial operation in 2021. All solar projects utilize horizontal single-axis tracking technology.
Power from the diversified portfolio projects will be sold under long-term contracts to a variety of offtakers, including utilities, hedge providers and community choice aggregators (CCAs).
In total, the eight projects have created more than 2,000 jobs in the country’s clean energy sector, and will displace more than 3 million metric tons of carbon dioxide annually*.
“As the second largest renewable energy producer in the world in terms of installed power capacity, the US offers considerable scope for further growth and diversification of our renewable energy portfolio,” said Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar. “We are delighted to expand our presence there through this landmark deal to invest in eight clean energy assets in California, Nebraska and Texas, and to further strengthen our global partnership with EDF Renewables.”
Masdar made its first entry into the US market last year, acquiring a 50 percent interest in two wind farms in Texas and New Mexico.
Tristan Grimbert, President and CEO, EDF Renewables North America, commented, “EDF’s collaboration with Masdar runs deep in the Middle East and North Africa already. This deal writes a new chapter of cooperation between our two companies focused on the North American market. I would like to highlight the exceptional quality of work for both the Masdar and EDF Renewables North America teams over the last year to execute this transaction in particularly troubled times.”
The transaction is expected to close in the fourth quarter of 2020 as it is subject to customary regulatory approvals. BofA Securities is acting as exclusive financial adviser to Masdar.
*According to United States Environmental Protection Agency Greenhouse Gas Equivalencies Calculator based on estimated energy production. https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator
About EDF Renewables
EDF Renewables is a leading international player in renewable energies, with gross installed capacity of 13.3 GW worldwide. Its development is mainly focused on wind and solar photovoltaic power. EDF Renewables operates mostly in Europe and North America but is continuing to grow by moving into promising emerging regions such as Brazil, China, India, South Africa and the Middle East. The company has strong positions in offshore wind power, but also in other areas of the renewable energies industry such as energy storage. EDF Renewables develops, builds, operates and maintains renewable energies projects, both for itself and for third parties. Most of its international subsidiaries bear the EDF Renewables brand. EDF Renewables is the EDF Group subsidiary specialising in developing solar and wind power. For more information, visit: https://www.edf-renouvelables.com/en/
Follow us on LinkedIn: https://www.linkedin.com/company/edf-renewables and on Twitter (@EDF_RE in French and @EDF_Renewables in English).
EDF Renewables North America is a market leading independent power producer and service provider with 35 years of expertise in renewable energy. The Company delivers grid-scale power: wind (onshore and offshore), solar photovoltaic, and storage projects; distributed solutions: solar, solar+storage, EV charging and energy management; and asset optimization: technical, operational, and commercial skills to maximize performance of generating projects. EDF Renewables’ North American portfolio consists of 16 GW of developed projects and 11 GW under service contracts. EDF Renewables is a subsidiary of EDF Renouvelables, the dedicated renewable energy affiliate of the EDF Group. For more information visit: www.edf-re.com. Connect with us on LinkedIn, Facebook and Twitter.
About Masdar
Abu Dhabi’s renewable energy company Masdar is advancing the commercialization and deployment of renewable energy, sustainable urban development and clean technologies to address global sustainability challenges. Wholly owned by Mubadala Investment Company, the strategic investment company of the Government of Abu Dhabi, our mandate is to help maintain the UAE’s leadership in the global energy sector, while supporting the diversification of both its economy and energy sources for the benefit of future generations. Today, Masdar is active in more than 30 countries, including the UAE, Jordan, Saudi Arabia, Mauritania, Egypt, Morocco, the UK, the US, Australia, Spain, Serbia, India, Indonesia, Uzbekistan, and many more. For more information please visit: http://www.masdar.ae and connect: facebook.com/masdar.ae and twitter.com/masdar
EDFR Contacts:
UNITED STATES:
Sandi Briner This email address is being protected from spambots. You need JavaScript enabled to view it.
FRANCE:
Manon de Cassini-Hérail, +33 (0)1 40 90 48 22, This email address is being protected from spambots. You need JavaScript enabled to view it.
MASDAR Contacts:
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
Tel enquiries in Arabic: +971 2 653 3333
Tel enquiries in English: +971 2 653 6014
DUBLIN--(BUSINESS WIRE)--The "Motor Soft Starters - Global Market Trajectory & Analytics" report has been added to ResearchAndMarkets.com's offering.
The publisher brings years of research experience to the 6th edition of this report. The 204-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 Motor Soft Starters Market to Reach $2.1 Billion by 2027
Amid the COVID-19 crisis, the global market for Motor Soft Starters estimated at US$1.5 Billion in the year 2020, is projected to reach a revised size of US$2.1 Billion by 2027, growing at a CAGR of 4.9% over the analysis period 2020-2027.
Oil & Gas, one of the segments analyzed in the report, is projected to record a 4.6% CAGR and reach US$745.1 Million 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 Mining segment is readjusted to a revised 5.4% CAGR for the next 7-year period.
The U.S. Market is Estimated at $405.1 Million, While China is Forecast to Grow at 7.5% CAGR
The Motor Soft Starters market in the U.S. is estimated at US$405.1 Million in the year 2020. China, the world`s second largest economy, is forecast to reach a projected market size of US$426.7 Million by the year 2027 trailing a CAGR of 7.5% over the analysis period 2020 to 2027. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 2.7% and 4.4% respectively over the 2020-2027 period. Within Europe, Germany is forecast to grow at approximately 3.1% CAGR.
Power Segment to Record 5.1% CAGR
In the global Power segment, USA, Canada, Japan, China and Europe will drive the 4.7% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$213.5 Million in the year 2020 will reach a projected size of US$294.2 Million 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$279.2 Million by the year 2027, while Latin America will expand at a 6.2% CAGR through the analysis period.
Competitors identified in this market include, among others:
Key Topics Covered:
I. INTRODUCTION, METHODOLOGY & REPORT SCOPE
II. EXECUTIVE SUMMARY
1. MARKET OVERVIEW
2. FOCUS ON SELECT PLAYERS
3. MARKET TRENDS & DRIVERS
4. GLOBAL MARKET PERSPECTIVE
III. MARKET ANALYSIS
IV. COMPETITION
Total Companies Profiled: 57
For more information about this report visit https://www.researchandmarkets.com/r/v8icak
ResearchAndMarkets.com
Laura Wood, Senior Press Manager
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For E.S.T Office Hours Call 1-917-300-0470
For U.S./CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900
DUBLIN--(BUSINESS WIRE)--The "The EU Green Deal & Energy Transition in Southeast Europe" report has been added to ResearchAndMarkets.com's offering.
In the age of a necessary urgent climate and sustainability action, now further amplified by the COVID-19 health crisis and the economic slump which it entails, the decade ahead and the EU's Green Deal is pivotal for the SEE energy sector's transformation and the region's economic recovery as a whole.
This report gives insights on the region's progress towards sustainable energy and assesses the risks stemming from this transformation. It also provides two case-studies on corporate green investments to support decision-makers who seek to leverage on green energy to make sustainable investments.
The report includes:
The report covers 12 economies in SEE:
The financial analysis of the coal industry covers 11 markets (excluding Moldova) and is based on several factors, including:
Key Topics Covered
1. The Road from EE's 20/20/20 Targets to the Green Deal and the 2030 Decade
2. Energy Transition Plans of EE Member States in SEE
3. Energy Transition in the Western Balkans
4. The Business Case for Corporate Green Investments
5. Love Affair with Coal in Time of Green Deal
6. COVID-19 and the Green Deal
Companies Mentioned
For more information about this report visit https://www.researchandmarkets.com/r/ha7iku
ResearchAndMarkets.com
Laura Wood, Senior Press Manager
This email address is being protected from spambots. You need JavaScript enabled to view it.
For E.S.T Office Hours Call 1-917-300-0470
For U.S./CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900
HOUSTON--(BUSINESS WIRE)--Calpine Corporation:
Summary of Second Quarter 2020 Financial Results (in millions): |
||||||||||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|||||||||||||||||||
|
2020 |
|
2019 |
|
% Change |
|
2020 |
|
2019 |
|
% Change |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operating Revenues |
$ |
1,744 |
|
|
$ |
2,599 |
|
|
(32.9 |
)% |
|
$ |
4,036 |
|
|
$ |
5,198 |
|
|
(22.4 |
)% |
|
Income from operations |
$ |
312 |
|
|
$ |
444 |
|
|
(29.7 |
)% |
|
$ |
661 |
|
|
$ |
802 |
|
|
(17.6 |
)% |
|
Cash provided by operating activities |
$ |
221 |
|
|
$ |
278 |
|
|
(20.5 |
)% |
|
$ |
434 |
|
|
$ |
519 |
|
|
(16.4 |
)% |
|
Net Income1 |
$ |
163 |
|
|
$ |
266 |
|
|
(38.7 |
)% |
|
$ |
291 |
|
|
$ |
441 |
|
|
(34.0 |
)% |
|
Commodity Margin2 |
$ |
723 |
|
|
$ |
752 |
|
|
(3.9 |
)% |
|
$ |
1,311 |
|
|
$ |
1,531 |
|
|
(14.4 |
)% |
|
Adjusted Unlevered Free Cash Flow2 |
$ |
319 |
|
|
$ |
360 |
|
|
(11.4 |
)% |
|
$ |
545 |
|
|
$ |
779 |
|
|
(30.0 |
)% |
|
Adjusted Free Cash Flow2 |
$ |
182 |
|
|
$ |
203 |
|
|
(10.3 |
)% |
|
$ |
262 |
|
|
$ |
467 |
|
|
(43.9 |
)% |
|
1 Reported as Net Income attributable to Calpine on our Consolidated Condensed Statements of Operations.
2 Non-GAAP financial measure, see “Regulation G Reconciliations” for further details.
Calpine Corporation today reported Net Income of $163 million for the second quarter of 2020 compared to $266 million in the prior year period. The period-over-period decrease in Net Income was primarily due to a decrease in Commodity Margin2 driven in large part by a reduction in capacity revenue received in the ISO-NE and PJM markets and a decrease in non-cash, mark-to-market earnings on our commodity hedge positions for the three months ended June 30, 2020, compared to the same period in 2019. The decrease was partially offset by a favorable period-over-period change in our income taxes resulting from the partial release of our valuation allowance associated with our NOLs during the second quarter of 2020. Cash provided by operating activities for the second quarter of 2020 was $221 million compared to $278 million in the prior year period. The decrease in Cash provided by operating activities, after adjusting for non-cash items, was primarily due to the decrease in Commodity Margin,2 as previously discussed, and an increase in working capital employed primarily resulting from a period-over-period change in energy margin posting requirements due to the return of cash collateral to a counterparty in exchange for a letter of credit during the second quarter of 2020.
Net Income for the first half of 2020 was $291 million compared to Net Income of $441 million in the prior year period. The period-over-period decrease in Net Income was primarily due to a decrease in Commodity Margin2 driven in large part by a reduction in capacity revenue received in the ISO-NE and PJM markets as well as a reduction in contribution from hedges as a result of milder weather in the first quarter of 2020. Cash provided by operating activities for the first half of 2020 was $434 million compared to $519 million in the prior year period. The period-over-period decrease in cash provided by operating activities was primarily due to the decrease in Commodity Margin,2 as previously discussed, partially offset by a decrease in working capital employed primarily resulting from a period-over-period net decrease in energy margin posting requirements and lower inventory purchases.
REGIONAL SEGMENT REVIEW OF RESULTS
Table 1: Commodity Margin by Segment (in millions) |
||||||||||||||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||||||||||
|
|
2020 |
|
2019 |
|
Variance |
|
2020 |
|
2019 |
|
Variance |
||||||||||||
West |
|
$ |
269 |
|
|
$ |
251 |
|
|
$ |
18 |
|
|
$ |
503 |
|
|
$ |
515 |
|
|
$ |
(12 |
) |
Texas |
|
172 |
|
|
173 |
|
|
(1 |
) |
|
285 |
|
|
335 |
|
|
(50 |
) |
||||||
East |
|
193 |
|
|
235 |
|
|
(42 |
) |
|
343 |
|
|
500 |
|
|
(157 |
) |
||||||
Retail |
|
89 |
|
|
93 |
|
|
(4 |
) |
|
180 |
|
|
181 |
|
|
(1 |
) |
||||||
Total |
|
$ |
723 |
|
|
$ |
752 |
|
|
$ |
(29 |
) |
|
$ |
1,311 |
|
|
$ |
1,531 |
|
|
$ |
(220 |
) |
West Region
Second Quarter: Commodity Margin in our West segment increased by $18 million in the second quarter of 2020 compared to the prior year period. Primary drivers were:
+ higher resource adequacy revenue,
+ increased contribution from higher generation driven in part by the restart of our South Point Energy Center during the second half of 2019, and
+ the acquisition on January 28, 2020 of the 25% noncontrolling interest of Russell City Energy Company, LLC which was previously owned by a third party.
Year-to-Date: Commodity Margin in our West segment decreased by $12 million in the first half of 2020 compared to the prior year period. Primary drivers were:
– lower market spark spreads in January and February 2020 resulting largely from lower natural gas prices in Southern California, and
– lower contribution from hedging activity, partially offset by
+ higher resource adequacy revenue, and
+ increased contribution from higher generation driven in part by the restart of our South Point Energy Center during the second half of 2019.
Texas Region
Second Quarter: Commodity Margin in our Texas segment decreased by $1 million in the second quarter of 2020 compared to the prior year period. Primary drivers were:
– lower contribution from hedging activity largely offset by
+ modestly higher market spark spreads.
Year-to-Date: Commodity Margin in our Texas segment decreased by $50 million in the first half of 2020 compared to the prior year period, primarily due to lower contribution from hedging activity.
East Region
Second Quarter: Commodity Margin in our East segment decreased by $42 million in the second quarter of 2020 compared to the prior year period. Primary drivers were:
– lower regulatory capacity revenue in ISO-NE and PJM and
– the sale of our Garrison and RockGen Energy Centers in July 2019.
Year-to-Date: Commodity Margin in our East segment decreased by $157 million in the first half of 2020 compared to the prior year period. Primary drivers were:
– lower regulatory capacity revenue in ISO-NE and PJM,
– the sale of our Garrison and RockGen Energy Centers in July 2019, and
– lower contribution from hedging activity resulting from milder weather during the first quarter of 2020, partially offset by
+ the commencement of commercial operations at our 828 MW York 2 Energy Center in March 2019.
Retail
Second Quarter: Commodity Margin in our Retail segment remained largely unchanged in the second quarter of 2020 compared to the prior year period.
Year-to-Date: Commodity Margin in our Retail segment remained largely unchanged in the first half of 2020 compared to the prior year period.
LIQUIDITY, CASH FLOW AND CAPITAL RESOURCES
Table 2: Liquidity (in millions) |
||||||||
|
June 30, 2020 |
|
December 31, 2019 |
|||||
Cash and cash equivalents, corporate(1) |
$ |
574 |
|
|
$ |
1,072 |
|
|
Cash and cash equivalents, non-corporate |
103 |
|
|
59 |
|
|||
Total cash and cash equivalents |
677 |
|
|
1,131 |
|
|||
Restricted cash |
241 |
|
|
345 |
|
|||
Corporate Revolving Facility availability(2) |
1,534 |
|
|
1,392 |
|
|||
CDHI revolving facility availability(3) |
1 |
|
|
1 |
|
|||
Other facilities availability(4) |
37 |
|
|
3 |
|
|||
Total current liquidity availability(5) |
$ |
2,490 |
|
|
$ |
2,872 |
|
|
(1) Our ability to use corporate cash and cash equivalents is unrestricted. On January 21, 2020, we used the remaining cash on hand from the issuance of our 2028 First Lien Notes and 2028 Senior Unsecured Notes to redeem approximately $1,052 million aggregate principal amount of our 2022 and 2024 First Lien Notes and 2023 Senior Unsecured Notes.
(2) Our ability to use availability under our Corporate Revolving Facility is unrestricted. At June 30, 2020, the approximately $2.0 billion in total capacity under our Corporate Revolving Facility is comprised of $462 million in letters of credit outstanding, no borrowings outstanding and $1,534 million in remaining available capacity.
(3) Our CDHI revolving facility is restricted to support certain obligations under PPAs and power transmission and natural gas transportation agreements as well as fund the construction of our Washington Parish Energy Center.
(4) On April 9, 2020, we amended one of our unsecured letter of credit facilities to partially extend the maturity of $100 million in commitments from June 20, 2020 to June 20, 2022. On June 9, 2020, we entered into the GPC Term Loan which provides for $200 million in letter of credit facilities.
(5) Includes $23 million and $127 million of margin deposits posted with us by our counterparties at June 30, 2020 and December 31, 2019, respectively.
Liquidity was approximately $2.5 billion as of June 30, 2020. Cash, cash equivalents and restricted cash decreased by $558 million during the first half of 2020, largely due to the redemption of the remaining $1.1 billion aggregate principal amount of our 2022 and 2024 First Lien Notes and our 2023 Senior Unsecured Notes on January 21, 2020, as further discussed below, partially offset by cash provided by operating activities.
Table 3: Cash Flow Activities (in millions) |
||||||||
|
Six Months Ended June 30, |
|||||||
|
2020 |
|
2019 |
|||||
Beginning cash, cash equivalents and restricted cash |
$ |
1,476 |
|
|
$ |
406 |
|
|
Net cash provided by (used in): |
|
|
|
|||||
Operating activities |
434 |
|
|
519 |
|
|||
Investing activities |
(304 |
) |
|
(315 |
) |
|||
Financing activities |
(688 |
) |
|
(51 |
) |
|||
Net increase (decrease) in cash, cash equivalents and restricted cash |
(558 |
) |
|
153 |
|
|||
Ending cash, cash equivalents and restricted cash |
$ |
918 |
|
|
$ |
559 |
|
|
Cash provided by operating activities for six months ended June 30, 2020 was $434 million compared to $519 million in the prior year period. The period-over-period decrease in cash provided by operating activities is primarily driven by the reduction in Commodity Margin for the six months ended June 30, 2020, when compared to the same period in 2019. This reduction is partially offset by a reduction in cash employed for working capital driven by a reduction in energy margin posting requirements and lower inventory purchases.
Cash used in investing activities was $304 million for six months ended June 30, 2020 compared to $315 million in the prior year period. The period-over period decrease in cash used is primarily attributable to a decrease in capital expenditures associated with the completion of construction of our York 2 Energy Center in March 2019 as well as timing differences in normal, recurring maintenance projects.
Cash used in financing activities was $688 million during the six months ended June 30, 2020 compared to $51 million in the prior period. The cash used during the first half of 2020 is primarily attributable to the redemption of the outstanding aggregate principal amount of $623 million of our 2023 Senior Unsecured Notes, $245 million of our 2022 First Lien Notes and $184 million of our 2024 First Lien Notes with the proceeds from our 2028 Senior Unsecured Notes and 2028 First Lien Notes issued in December of 2019. In addition, we issued our $900 million Geysers Power Company, LLC (GPC) Term Loan in June 2020 and used a portion of the proceeds to repay approximately $348 million in aggregate principal amount of project debt. We also acquired the 25% noncontrolling interest in Russell City Energy Center, LLC for $35 million plus working capital adjustments of approximately $14 million for a total purchase price of approximately $49 million in January 2020.
COVID-19 Pandemic Update
In March 2020, the World Health Organization categorized the novel coronavirus disease 2019 (COVID-19) as a pandemic, and the President declared the COVID-19 outbreak a national emergency. COVID-19 continues to spread throughout the United States and other countries across the world negatively affecting the global economy, disrupting global supply chains and workforce participation and resulting in significant volatility and disruption of financial markets. While we have noted recovery in certain key geographic areas where we own generation facilities, we continue to closely monitor the impact of the COVID-19 outbreak on all aspects of our business, including how it has affected and continues to affect our employees, customers, suppliers and the communities in which we operate.
Our first priority with regard to the COVID-19 outbreak is to ensure the health and safety of our employees and contractors. As one of the largest independent power producers in the U.S., we are designated as an “essential business” and have an obligation to operate our fleet of power plants to sustain the bulk electric system and manage retail customer power delivery obligations. To ensure the continued reliable operations of our generation fleet and delivery of power to our retail customers, we continue to abide by a set of safety and health measures as a means to ensure we are able to provide reliable energy to the markets we serve. These measures include restricting access at our power plants to only mission-critical individuals and adherence to social distancing protocols wherever possible. Additionally, our commercial and retail operations, including all support staff such as legal, accounting, finance, information technology and human resources, continue to work remotely.
To date, the COVID-19 outbreak has not had a material adverse effect on our operations, financial condition or cash flows. While the ultimate determination depends on the length and severity of the crisis, at this time, we anticipate our cash flows from operations and our available sources of liquidity will be sufficient to meet our current cash requirements during this period. As the impact of the COVID-19 outbreak on the economy and our operations evolves, we will continue to assess and manage our liquidity needs.
The ultimate extent to which the COVID-19 pandemic may impact our business, operating results, financial condition or liquidity will depend on future developments, including the duration of the outbreak, continued business and workforce disruptions, the effectiveness of actions taken to contain and treat the disease and the lasting effect on the economy, especially in the geographic areas where we own and operate power generating facilities and serve retail customers. Given the uncertainty concerning the overall impact of the COVID-19 outbreak, while we do not anticipate the effect of the outbreak to have a material adverse effect on our financial condition, results of operations or cash flows for the year ended December 31, 2020, we are unable to predict the ultimate impact of the outbreak on our future results. For further discussion, see “Item 1A. Risk Factors” in Part II of our Form 10-Q for the quarterly period ended June 30, 2020.
Portfolio Management
On January 28, 2020, we completed the acquisition of the 25% noncontrolling interest of Russell City Energy Company, LLC for $35 million plus working capital adjustments of approximately $14 million for a total purchase price of approximately $49 million. Prior to the acquisition, we accounted for the third party ownership interest as a noncontrolling interest.
Balance Sheet Management
On January 21, 2020, we redeemed the outstanding aggregate principal amount of $245 million of our 2022 First Lien Notes, $184 million of our 2024 First Lien Notes and $623 million of our 2023 Senior Unsecured Notes, which were included in debt, current portion on our Consolidated Condensed Balance Sheet at December 31, 2019, with the proceeds from the 2028 First Lien Notes and 2028 Senior Unsecured Notes that we issued in December 2019, which were included in cash and cash equivalents on our Consolidated Condensed Balance Sheet at December 31, 2019.
On June 9, 2020, GPC and the guarantors party thereto entered into a seven-year $900 million first lien senior secured term loan facility and three senior secured revolving letter of credit facilities totaling $200 million. The GPC Term Loan is certified under the Climate Bonds Standard. Any letters of credit issued under the GPC Term Loan letter of credit facilities must be at the request of and for the account of GPC. The GPC Term Loan bears interest, at GPC’s option, at either (i) the Base Rate, equal to the highest of (a) the Federal Funds Rate plus 0.50% per annum, (b) the prime rate published in the Wall Street Journal, or (c) 1.0% plus an applicable margin of 1.0%, increasing by 0.125% every three years, or (ii) LIBOR plus an applicable margin of 2.0% per annum, increasing by 0.125% every three years. The GPC Term Loan matures on June 9, 2027, but may be prepaid at any time upon irrevocable notice to the Administrative Agent. We used a portion of the proceeds from the GPC Term Loan to repay approximately $348 million of project debt.
The GPC Term Loan is secured by certain real and personal property of GPC consisting primarily of the Geysers Assets. The GPC Term Loan is not guaranteed by Calpine Corporation and is without recourse to Calpine Corporation or any of our non-GPC subsidiaries or assets; however, GPC generates a portion of its cash flows from an intercompany tolling agreement with Calpine Energy Services, L.P. and has various service agreements in place with other subsidiaries of Calpine Corporation.
On August 10, 2020, we issued $650 million in aggregate principal amount of 4.625% senior unsecured notes due 2029 and $850 million in aggregate principal amount of 5.000% senior unsecured notes due 2031 in private placements. The 2029 Senior Unsecured Notes bear interest at 4.625% per annum and the 2031 Senior Unsecured Notes bear interest at 5.000% per annum with interest payable on both series of notes semi-annually on February 1 and August 1 of each year, beginning on February 1, 2021. The 2029 Senior Unsecured Notes and 2031 Senior Unsecured Notes mature on February 1, 2029 and February 1, 2031, respectively.
On August 10, 2020, we utilized proceeds from our 2029 Senior Unsecured Notes and 2031 Senior Unsecured Notes, together with cash on hand, to purchase approximately $255 million and $1,045 million in aggregate principal amount of our 2024 Senior Unsecured Notes and 2025 Senior Unsecured Notes, respectively. On August 12, 2020, we redeemed the remaining amounts outstanding under our 2024 Senior Unsecured Notes and 2025 Senior Unsecured Notes.
PG&E Bankruptcy
On July 1, 2020, PG&E and PG&E Corporation emerged from bankruptcy. Under PG&E's plan of reorganization, our PPAs were assumed and any restrictions on our projects arising from the bankruptcy were cured.
We currently have several power plants that provide energy and energy-related products to PG&E under PPAs, many of which have PG&E collateral posting requirements. Subsequent to the bankruptcy filing, we received all material payments under the PPAs, either directly or through the application of collateral. We also currently have numerous other agreements with PG&E related to the operation of our power plants in Northern California, under which PG&E continued to provide service subsequent to its bankruptcy filing.
ABOUT CALPINE
Calpine Corporation is America’s largest generator of electricity from natural gas and geothermal resources with operations in competitive power markets. Our fleet of 78 power plants in operation or under construction represents over 26,000 megawatts of generation capacity. Through wholesale power operations and our retail businesses Calpine Energy Solutions and Champion Energy, we serve customers in 23 states, Canada and Mexico. Our clean, efficient, modern and flexible fleet uses advanced technologies to generate power in a low-carbon and environmentally responsible manner. We are uniquely positioned to benefit from the secular trends affecting our industry, including the abundant and affordable supply of clean natural gas, environmental regulation, aging power generation infrastructure and the increasing need for dispatchable power plants to successfully integrate intermittent renewables into the grid. Please visit www.calpine.com to learn more about how Calpine is creating power for a sustainable future.
Calpine’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, will be filed with the Securities and Exchange Commission (SEC) and will be available on the SEC’s website at www.sec.gov.
FORWARD-LOOKING INFORMATION
In addition to historical information, this release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act, and Section 21E of the Exchange Act. Forward-looking statements may appear throughout this release. We use words such as “believe,” “intend,” “expect,” “anticipate,” “plan,” “may,” “will,” “should,” “estimate,” “potential,” “project” and similar expressions to identify forward-looking statements. Such statements include, among others, those concerning our expected financial performance and strategic and operational plans, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. We believe that the forward-looking statements are based upon reasonable assumptions and expectations. However, you are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties could cause actual results to differ materially from those anticipated in the forward-looking statements. Such risks and uncertainties include, but are not limited to:
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Conversion is expected to reduce the plant’s greenhouse gas emissions by 50%
HOUSTON--(BUSINESS WIRE)--Phillips 66 (NYSE: PSX), a diversified energy manufacturing and logistics company, announced today that it plans to reconfigure its San Francisco Refinery in Rodeo, California, to produce renewable fuels. The plant would no longer produce fuels from crude oil, but instead would make fuels from used cooking oil, fats, greases and soybean oils.
The Phillips 66 Rodeo Renewed project would produce 680 million gallons annually of renewable diesel, renewable gasoline, and sustainable jet fuel. Combined with the production of renewable fuels from an existing project in development, the plant would produce greater than 800 million gallons a year of renewable fuels, making it the world’s largest facility of its kind.
The project scope includes the construction of pre-treatment units and the repurposing of existing hydrocracking units to enable production of renewable fuels. The plant will utilize its flexible logistics infrastructure to bring in cooking oil, fats, greases and soybean oils from global sources and supply renewable fuels to the California market. This capital efficient investment is expected to deliver strong returns through the sale of high value products while lowering the plant’s operating costs.
“Phillips 66 is taking a significant step with Rodeo Renewed to support demand for renewable fuels and help California meet its low carbon objectives,” said Greg Garland, chairman and CEO of Phillips 66. “We believe the world will require a mix of fuels to meet the growing need for affordable energy, and the renewable fuels from Rodeo Renewed will be an important part of that mix. This project is a great example of how Phillips 66 is making investments in the energy transition that will create long term value for our shareholders.”
If approved by Contra Costa County officials and the Bay Area Air Quality Management District, renewable fuels production is expected to begin in early 2024. Once reconfigured, the plant will no longer transport or process crude oil.
The plant is expected to employ more than 400 jobs and up to 500 construction jobs, using local union labor, including the Contra Costa County Building & Construction Trades.
Phillips 66 also announced plans to shut down the Rodeo Carbon Plant and Santa Maria refining facility in Arroyo Grande, California, in 2023. Associated crude oil pipelines will be taken out of service in phases starting in 2023.
To learn more about the project, visit www.RodeoRenewed.com.
About Phillips 66
Phillips 66 is a diversified energy manufacturing and logistics company. With a portfolio of Midstream, Chemicals, Refining, and Marketing and Specialties businesses, the company processes, transports, stores and markets fuels and products globally. Phillips 66 Partners, the company's master limited partnership, is integral to the portfolio. Headquartered in Houston, the company has 14,500 employees committed to safety and operating excellence. Phillips 66 had $55 billion of assets as of June 30, 2020. For more information, visit http://www.phillips66.com or follow us on Twitter @Phillips66Co.
CAUTIONARY STATEMENT FOR THE PURPOSES OF THE “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This presentation contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Words and phrases such as “is anticipated,” “is estimated,” “is expected,” “is planned,” “is scheduled,” “is targeted,” “believes,” “continues,” “intends,” “will,” “would,” “objectives,” “goals,” “projects,” “efforts,” “strategies” and similar expressions are used to identify such forward-looking statements. However, the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements included in this presentation are based on management’s expectations, estimates and projections as of the date they are made. These statements are not guarantees of future performance and you should not unduly rely on them as they involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Factors that could cause actual results or events to differ materially from those described in the forward-looking statements include the inability to timely obtain or maintain permits necessary for capital projects, including the Rodeo Renewed project; changes to worldwide government policies relating to renewable fuels and greenhouse gas emissions that adversely affect programs like the renewable fuel standards program, low carbon fuel standards and tax credits for biofuels; fluctuations in NGL, crude oil, and natural gas prices, and petrochemical and refining margins; unexpected changes in costs for constructing, modifying or operating our facilities, including the Rodeo Renewed project; unexpected difficulties in manufacturing, refining or transporting our products; risks and uncertainties with respect to the actions of actual or potential competitive suppliers and transporters of refined petroleum products, renewable fuels or specialty products; lack of, or disruptions in, adequate and reliable transportation for our NGL, crude oil, natural gas, and refined products; potential liability from litigation or for remedial actions, including removal and reclamation obligations under environmental regulations; limited access to capital or significantly higher cost of capital related to illiquidity or uncertainty in the domestic or international financial markets; potential disruption of our operations due to accidents, weather events, including as a result of climate change, terrorism or cyberattacks; general economic and political developments including: armed hostilities; expropriation of assets; changes in governmental policies relating to NGL, crude oil, natural gas, refined petroleum products, or renewable fuels pricing, regulation or taxation; political, economic or diplomatic developments, including those caused by public health issues, outbreaks of diseases and pandemics, including the COVID-19 pandemic and other economic, business, competitive and / or regulatory factors affecting Phillips 66’s businesses generally as set forth in our filings with the Securities and Exchange Commission. Phillips 66 is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.
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Through a partnership with Loma Linda University Health, virtual medical group HubMD P.C. acquires additional expertise from top tier specialists, improving the quality and reach of its service to safety-net populations in the region.
REDLANDS, Calif.--(BUSINESS WIRE)--#InlandEmpire--HubMD P.C., a virtual medical group comprised of fully-credentialed and licensed, board-certified specialist physicians, is proud to announce its partnership with Loma Linda University Health, effective July 1.
The Loma Linda University Health Faculty Medical Group (LLUHFMG) is comprised of 544 physicians across 72 specialties in 62 office locations. By joining HubMD, LLUHFMG spurs the expansion of the virtual medical group and fuels its purpose—to improve access to specialty care for safety-net and vulnerable populations.
“Our Faculty Medical Group is built up from a profound knowledge base and rich set of experiences from skilled specialists,” remarked Dr. Anthony Hilliard, Chief Operating Officer; LLUHFMG. “We are thrilled to be joining HubMD in collectively channeling skills and efforts to improve specialty care access among medically underserved populations in the region.”
HubMD specialists offer their expertise to primary care physicians (PCPs) and patients in programs including VideoConsults and eConsult. Short for "electronic consultation," eConsult is a virtual care process that enables PCPs to message specialists regarding patient care and the need for specialty referral. A secure web-based application facilitates this message exchange, allowing specialists to respond, usually within a day, to PCPs’ questions. Through this PCP-specialist dialog, all patients gain virtual access to specialty care and can obtain referrals in a quicker, more efficient manner.
134 carefully selected HubMD specialists covering over 20 specialties have reached hundreds of thousands of patients through safety net hospitals, physicians, health systems, and health plans. HubMD’s recent partnership with the Inland Empire Health Plan (IEHP) allows HubMD specialists to communicate with 530+ primary care physicians across 93 clinics via eConsult through the IEHP-funded Multi-County eConsult Initiative (MCeI). Through this work, HubMD specialists are helping to facilitate access to specialty care for over 1.25 million safety-net patients.
Over 30 LLUHFMG specialists in cardiology, hepatology, pulmonology, infectious diseases, and endocrinology have already been working with HubMD. The newly signed contract holds that HubMD will continue to work with LLUHFMG to fill any needed gaps among safety net physicians for which LLUHFMG possesses unique expertise, such as transplant hematology and nephrology.
“With the addition of the Loma Linda Health Faculty Medical Group’s expansive specialty expertise, HubMD will continue its work for IEHP and expand access to other safety net providers,” said HubMD CEO Dr. Stanley Frencher Jr.
About HubMD P.C.
HubMD P.C. is a virtual care medical group of physician specialists transforming how healthcare is delivered. Enabling virtual care and telehealth through professional services provided by fully-credentialed and licensed, board-certified doctors, HubMD's primary mission lies in improving access to quality care for vulnerable patients—those who are geographically isolated in rural communities, socially isolated in correctional facilities, as well as economically disadvantaged in often racially and ethnically segregated communities. 100 carefully selected specialists covering over 20 specialties have reached hundreds of thousands of patients through HubMD’s work with safety net hospitals, physicians, health systems, and health plans. HubMD specialists offer their expertise to primary care physicians and patients in programs like eConsult and VideoConsults.
Together, HubMD and WISE Healthcare are broadening their reach and ability to impact patient lives through innovative means. Activating collaborative ethics, HubMD specialists are shaping a future where both access and delivery of healthcare prove flexible, mindful, and, most of all, empowering to patients and to clinicians alike.
For more information, please visit www.HubMD.org
About Loma Linda University Health
Loma Linda University Health includes Loma Linda University's eight professional schools, Loma Linda University Medical Center's six hospitals and more than 1,200 faculty physicians located in the Inland Empire of Southern California. Established in 1905, Loma Linda University Health is a global leader in education, research and clinical care. It offers over 100 academic programs and provides quality health care to over 40,000 inpatients and 1.5 million outpatients each year.
For more information, please visit https://lluh.org/
WISE Healthcare
Lisa Aubry
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HubMD
Dr. Stanley Frencher Jr.
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More than 1,400 additional crew members arriving in region to join restoration effort
CHICAGO--(BUSINESS WIRE)--ComEd has restored power to more than 625,000 families and businesses, or nearly 80 percent of the customers affected by the derecho that slammed northern Illinois on Monday afternoon causing significant damage across the entire region. The storm brought hurricane force winds with gusts higher than 90 miles per hour, extensive lighting, golf ball-sized hail and seven confirmed tornados. About 171,000 customers remain without power.
More than 1,900 ComEd employees and contractors have been working around the clock since Monday afternoon to restore power to customers quickly and safely. More than 1,400 additional mutual assistance workers began arriving from across the country today to join the restoration effort.
In spite of the extensive damage caused by the tornados and derecho, ComEd restored power to 540,000 customers within a day, the fastest restoration of 500,000 customers in the company’s history. This is due in large part to the smart grid investments ComEd has made since 2012, including in technologies that automatically detect outages and reroute power around problem areas, avoiding significant outages that otherwise would have occurred.
“As we saw from fallen trees that crushed cars and homes, the derecho with multiple tornados was a rare and destructive storm,” said Joe Dominguez, CEO of ComEd. “We’re grateful to municipal leaders and other first responders for their partnership as we work with them to clear roads and debris so that we can safely restore power to affected areas. Especially in a pandemic, our customers are dependent on reliable power at home, and we appreciate the 6,000 women and men of ComEd and the crews that traveled hundreds of miles here to help get the power flowing for families and businesses as fast as possible.”
Restoration efforts are ahead of schedule, and ComEd now expects to restore power to over 95 percent of customers by Friday night, with nearly 80 percent of customers already restored. Hundreds of additional customers are being restored each hour, but outages in areas where tornados or other intense storm events occurred could take longer to restore.
In the city of Chicago, which had some of the highest concentrations of customer outages, ComEd has restored service to 121,000 of the more than 144,000 customers who lost power.
ComEd offers the following tips and information for customers to stay safe following severe weather:
ComEd urges customers to contact the company immediately if they experience a power outage. Customers can text OUT to 26633 (COMED) to report an outage and receive restoration information, and can follow the company on Twitter @ComEd or on Facebook at Facebook.com/ComEd. Customers can also call 1-800 EDISON1 (1-800-334-7661), or report outages via the website at www.ComEd.com/report. Spanish-speaking customers should call 1-800-95-LUCES (1-800-955-8237).
ComEd has introduced a mobile app for iPhone and Android® smart phones that gives customers the ability to report power outages and manage their accounts; download the app at www.ComEd.com/app.
ComEd has an interactive outage map on its website at www.ComEd.com/map, which allows customers to easily find information on the location and size of outages and get estimated power restoration times.
ComEd is a unit of Chicago-based Exelon Corporation (NASDAQ: EXC), a Fortune 100 energy company with approximately 10 million electricity and natural gas customers – the largest number of customers in the U.S. ComEd powers the lives of more than 4 million customers across northern Illinois, or 70 percent of the state’s population. For more information visit ComEd.com and connect with the company on Facebook, Twitter, Instagram and YouTube.
ComEd Media Relations
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DUBLIN--(BUSINESS WIRE)--The "Drilling Waste Management - Global Market Trajectory & Analytics" report has been added to ResearchAndMarkets.com's offering.
The publisher brings years of research experience to the 6th edition of this report. The 173-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 Drilling Waste Management Market to Reach $6.4 Billion by 2027
Amid the COVID-19 crisis, the global market for Drilling Waste Management estimated at US$4.7 Billion in the year 2020, is projected to reach a revised size of US$6.4 Billion by 2027, growing at a CAGR of 4.6% over the analysis period 2020-2027.
Treatment & Disposal, one of the segments analyzed in the report, is projected to record a 4.4% CAGR and reach US$2.7 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 Containment & Handling segment is readjusted to a revised 4.1% CAGR for the next 7-year period.
The U.S. Market is Estimated at $1.4 Billion, While China is Forecast to Grow at 4.3% CAGR
The Drilling Waste Management market in the U.S. is estimated at US$1.4 Billion in the year 2020. China, the world's second largest economy, is forecast to reach a projected market size of US$1.1 Billion by the year 2027 trailing a CAGR of 4.3% over the analysis period 2020 to 2027. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 4.3% and 3.6% respectively over the 2020-2027 period. Within Europe, Germany is forecast to grow at approximately 3.8% CAGR.
Solids Control Segment to Record 5.2% CAGR
In the global Solids Control segment, USA, Canada, Japan, China and Europe will drive the 5.2% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$1.2 Billion in the year 2020 will reach a projected size of US$1.7 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$731.5 Million by the year 2027.
Competitors identified in this market include, among others:
Key Topics Covered:
I. INTRODUCTION, METHODOLOGY & REPORT SCOPE
II. EXECUTIVE SUMMARY
1. MARKET OVERVIEW
2. FOCUS ON SELECT PLAYERS
3. MARKET TRENDS & DRIVERS
4. GLOBAL MARKET PERSPECTIVE
III. MARKET ANALYSIS
IV. COMPETITION
Total Companies Profiled: 41
For more information about this report visit https://www.researchandmarkets.com/r/mbtc73
ResearchAndMarkets.com
Laura Wood, Senior Press Manager
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Company is on Target as Installation of Stronger Poles, Thicker Power Lines Reach Half-Way Point for 2020
SAN FRANCISCO--(BUSINESS WIRE)--Mile-by-mile, Pacific Gas and Electric Company (PG&E) is transforming its electric system in high fire-threat areas to make it more resilient and resistant to wildfires. Known as system hardening, this work will benefit customers directly in terms of improved reliability and increased safety.
The ongoing work will happen every day over the next several years as 7,100 miles of PG&E’s distribution circuits are hardened. That’s nearly the distance from San Francisco to Sydney, Australia. PG&E crews and contractors will remove existing poles and install stronger poles, often made of composite materials. Thin, bare power lines are being are replaced with thicker, insulated lines that are more resistant to weather, wind and broken branches. And, in some locations, the electric infrastructure is being buried underground, completely avoiding issues with wind and trees.
“The steps PG&E is taking to address the growing wildfire threat in our state is unlike any effort in the company’s history. While there is no single solution, both immediate actions to minimize wildfire risks today, as well as longer-term efforts to rebuild our electric system for the future are necessary and underway,” said Matt Pender, PG&E’s director of the Community Wildfire Safety Program. “We will continue until these hardening upgrades are complete for both the safety and reliability of our customers and communities facing the highest risk of wildfire.”
This is heavy construction work that requires extensive advanced planning, customer engagement in various languages and then the use of trucks, cranes and bulldozers to get the job done. Through late July, more than half of the hardening work planned for this year has been completed.
That includes:
In total, through late July, PG&E has hardened 138 miles and remains on track to reinforce infrastructure across 241 miles this year. That follows the 171 miles that were hardened in 2019, which surpassed the company’s target of 150 miles last year.
System hardening is just one small slice of the comprehensive work being done as part of PG&E’s Community Wildfire Safety Program, which includes doing more work to keep trees away from power lines, adding high-definition cameras and weather stations to provide more detailed real-time information on conditions and adding microgrids that will be able to provide temporary power when and where needed.
For more information on PG&E’s wildfire mitigations and efforts to reduce the impacts of PSPS events, please visit pge.com/wildfiresafety.
About PG&E
Pacific Gas and Electric Company, a subsidiary of PG&E Corporation (NYSE:PCG), is one of the largest combined natural gas and electric energy companies in the United States. Based in San Francisco with more than 23,000 employees, the company delivers some of the nation's cleanest energy to 16 million people in Northern and Central California. For more information, please visit pge.com and pge.com/news.
Forward-Looking Statements
This news release includes forward-looking statements that are not historical facts, including statements about the beliefs, expectations, estimates, future plans and strategies of PG&E Corporation and Pacific Gas and Electric Company, including but not limited to statements regarding PG&E’s plans to harden its electric system over the next several years and its Community Wildfire Safety Program. These statements are based on current expectations and assumptions, which management believes are reasonable, and on information currently available to management, but are necessarily subject to various risks and uncertainties. In addition to the risk that these assumptions prove to be inaccurate, factors that could cause actual results to differ materially from those contemplated by the forward-looking statements include factors disclosed in PG&E Corporation and Pacific Gas and Electric Company’s joint Annual Report on Form 10-K for the year ended December 31, 2019, their joint Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, and their subsequent reports filed with the Securities and Exchange Commission. Additional factors include, but are not limited to, those associated with the Chapter 11 cases of PG&E Corporation and Pacific Gas and Electric Company that commenced on January 29, 2019. PG&E Corporation and Pacific Gas and Electric Company undertake no obligation to publicly update or revise any forward-looking statements, whether due to new information, future events or otherwise, except to the extent required by law.
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DULUTH, Minn.--(BUSINESS WIRE)--ALLETE Clean Energy, a wholly owned subsidiary of ALLETE (NYSE: ALE), announced today a $50,000 grant in partnership with GE Renewable Energy and Wanzek to the Mill Creek School District in Mill Creek, Oklahoma.
The school district will use most of the money to purchase about 70 iPads for students and 16 laptops for teachers. With the grant money in hand, in addition to a $33,000 federal grant, the school district can afford to supply all K-12 students and teachers with the devices and curriculum they need for remote learning.
“We have a long tradition at ALLETE Clean Energy of working with our partners to donate to communities near our wind sites, which deliver clean energy while also supporting local communities and economies. We saw a timely grant to equip the school district with the tools it needs to conduct remote classes, and to keep students and staff safer at home, as the most meaningful way we could help during COVID-19,” said ALLETE Clean Energy President Allan S. Rudeck Jr. “Anything we can do to sustain students’ engagement and learning during this challenging time will help keep their education on track. We appreciate GE and Wanzek as strong partners who share our values, and are happy to have their support as we make a difference in our host communities.”
ALLETE Clean Energy owns and is developing the nearby Diamond Spring wind project, which will supply Walmart, Starbucks and Smithfield Foods with renewable energy. Diamond Spring, which is expected to be operational this fall, will be capable of producing 303 megawatts of electricity, enough to power about 110,000 homes. GE Renewable Energy supplied 112 2.X MW turbines for Diamond Spring, and Wanzek is the engineering, procurement and construction contractor at the site.
“Wanzek enters every project with the understanding that we are simply guests in the local community,” said Diamond Spring Senior Project Manager Brendon Lamppa. “Part of our planning process is to find creative ways to integrate ourselves into these communities while we are in the area. When the opportunity to partner up with ALLETE Clean Energy to assist a local school in their time of need amidst the current pandemic presented itself, Wanzek was on board without hesitation. Wanzek team members truly believe that leaving a positive and lasting memory that exists long after our departure is of the utmost importance.”
Vikas Anand, GE Renewable Energy’s CEO for Onshore Wind, Americas, said, “GE Renewable Energy is a proud partner with ALLETE Clean Energy on the Diamond Spring wind project. Together with ALLETE and Wanzek, we’re happy to support the Mill Creek School District and local community with critical technology necessary for students and teachers during these unprecedented times.”
The donation is a relief to Mill Creek School administrators facing the daunting task of educating students during a pandemic.
“These companies have never been in this school nor have I met their people and they were so willing to help,” said School Superintendent Lorinda Chancellor. “I look forward to the day we can meet soon and I can personally thank them for this amazing donation. We are so grateful and blessed!”
ALLETE Clean Energy acquires, develops and operates clean and renewable energy projects. ALLETE Clean Energy owns, operates and has in advanced construction approximately 1,300 megawatts of nameplate capacity wind energy generation in seven states that is contracted under PSAs of various durations. ALLETE Clean Energy also engages in the development of wind energy facilities to operate under long-term PSAs or for sale to others upon completion.
ALLETE Inc. is an energy company headquartered in Duluth, Minnesota. In addition to its electric utilities, Minnesota Power and Superior Water, Light and Power of Wisconsin, ALLETE owns ALLETE Clean Energy, based in Duluth; BNI Energy in Bismarck, North Dakota; and has an eight percent equity interest in the American Transmission Co. More information about ALLETE is available at www.allete.com. ALE-CORP
The statements contained in this release and statements that ALLETE may make orally in connection with this release that are not historical facts, are forward-looking statements. Actual results may differ materially from those projected in the forward-looking statements. These forward-looking statements involve risks and uncertainties and investors are directed to the risks discussed in documents filed by ALLETE with the Securities and Exchange Commission.
Amy Rutledge
Manager - Corporate Communications
Minnesota Power/ALLETE
218-723-7400
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Expands Capabilities in Multi-Domain ISR and Integrated c-UAS Systems and Solutions
ARLINGTON, Va.--(BUSINESS WIRE)--CACI International Inc (NYSE: CACI) announced today it has acquired Ascent Vision Technologies, LLC (AVT), a leading provider of technology and solutions that support multi-domain intelligence, surveillance, and reconnaissance (ISR), unmanned aircraft system (UAS), air defense, and counter-unmanned aircraft system (c-UAS) operations.
AVT provides low size, weight, power and cost (SWAP-C) electro-optical, infrared (EO/IR) imaging systems designed for airborne, ground, and maritime platforms, delivering effective ISR and target acquisition capabilities for day and night operations.
This proprietary imaging technology is utilized in AVT’s X-MADIS system, an on-the-move, mobile and fixed site, c-UAS solution that detects, locates, tracks, identifies, and defeats UAS threats. X-MADIS integrates radar, AVT’s gyro-stabilized optical sensors, and non-kinetic electronic warfare capabilities to provide a comprehensive solution to combating the threat of hostile UAS and near-peer airborne threats. X-MADIS can also provide ground and surface surveillance, counter-IED, hostile fire location, and integrated kinetic capabilities. In addition, AVTs gyro-stabilized optics, c-UAS Software Suite and Graphical User Interface are key components integrated into the USMC MADIS family of systems.
The combining of AVT’s EO/IR and X-MADIS technologies with CACI’s signals intelligence, electronic warfare, and CORIAN capabilities will deliver continued differentiation to customers. Our open-source, system-of-systems architectures provides interoperability and speeds new capabilities to customers in the defense and security markets. AVT adds to CACI’s U.S. Army and Navy presence with the U.S. Air Force and Marine Corps, as well as international customers.
Dr. J.P. (Jack) London, CACI Executive Chairman and Chairman of the Board, noted, “CACI has an outstanding track record of successful acquisitions that deliver distinctive benefits for our customers and employees while providing long-term value to our shareholders. The cultures of CACI and AVT are aligned with an unwavering commitment to integrity, ethics, and innovation.”
According to John Mengucci, CACI President and Chief Executive Officer, “The combination of CACI and AVT brings unique advantages to our defense and national security customers with critical ISR and c-UAS missions. Their accomplished leadership team, led by founder and CEO Tim Sheehy, and highly skilled technical employee population drives a unique culture of agile innovation and differentiated performance. The synergies between AVT and CACI’s offerings establish unapparelled technologies and capabilities in this growing area of ISR and c-UAS within CACI’s business. We welcome the talented and mission-focused AVT employees to CACI.”
SheppardMullin served as CACI’s legal advisor in connection with the transaction. Jefferies LLC served as exclusive financial advisor to Ascent Vision Technologies and Holland & Hart LLP served as legal advisor in connection with the transaction.
CACI’s 23,000 talented employees are vigilant in providing the unique expertise and distinctive technology that address our customers’ greatest enterprise and mission challenges. Our culture of good character, innovation, and excellence drives our success and earns us recognition as a Fortune World’s Most Admired Company. As a member of the Fortune 1000 Largest Companies, the Russell 1000 Index, and the S&P MidCap 400 Index, we consistently deliver strong shareholder value. Visit us at www.caci.com.
There are statements made herein which do not address historical facts, and therefore could be interpreted to be forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are subject to factors that could cause actual results to differ materially from anticipated results. The factors that could cause actual results to differ materially from those anticipated include, but are not limited to, the risk factors set forth in CACI’s Annual Report on Form 10-K for the fiscal year ended June 30, 2019, and other such filings that CACI makes with the Securities and Exchange Commission from time to time. Any forward-looking statements should not be unduly relied upon and only speak as of the date hereof.
CACI-Company News
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DUBLIN--(BUSINESS WIRE)--The "Industrial Pump Rentals - 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 290-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 Industrial Pump Rentals Market to Reach $3.9 Billion by 2027
Amid the COVID-19 crisis, the global market for Industrial Pump Rentals estimated at US$2.5 Billion in the year 2020, is projected to reach a revised size of US$3.9 Billion by 2027, growing at a CAGR of 7% over the analysis period 2020-2027.
Bypass Pumping, one of the segments analyzed in the report, is projected to record a 7.5% CAGR and reach US$1.7 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 Dewatering segment is readjusted to a revised 6.7% CAGR for the next 7-year period.
The U.S. Market is Estimated at $664.4 Million, While China is Forecast to Grow at 10.7% CAGR
The Industrial Pump Rentals market in the U.S. is estimated at US$664.4 Million in the year 2020. China, the world's second largest economy, is forecast to reach a projected market size of US$868.8 Million by the year 2027 trailing a CAGR of 10.7% over the analysis period 2020 to 2027. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 3.8% and 6.3% respectively over the 2020-2027 period. Within Europe, Germany is forecast to grow at approximately 4.5% CAGR.
Large Volume Pumping Segment to Record 6.4% CAGR
In the global Large Volume Pumping segment, USA, Canada, Japan, China and Europe will drive the 5.9% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$605.4 Million in the year 2020 will reach a projected size of US$905.9 Million 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$538.8 Million by the year 2027, while Latin America will expand at a 7.7% CAGR through the analysis period.
Competitors identified in this market include, among others:
Key Topics Covered:
I. INTRODUCTION, METHODOLOGY & REPORT SCOPE
II. EXECUTIVE SUMMARY
1. MARKET OVERVIEW
2. FOCUS ON SELECT PLAYERS
3. MARKET TRENDS & DRIVERS
4. GLOBAL MARKET PERSPECTIVE
III. MARKET ANALYSIS
IV. COMPETITION
Total Companies Profiled: 47
For more information about this report visit https://www.researchandmarkets.com/r/6yjwjm
ResearchAndMarkets.com
Laura Wood, Senior Press Manager
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Project to bring 300 megawatts of clean energy and jobs to the community, in collaboration with GRID Alternatives, the community college and other local job training programs
PUEBLO, Colo.--(BUSINESS WIRE)--#cleanenergy--In September 2019, Xcel Energy and Lightsource bp announced that they had signed a long-term power contract for a new solar power facility in Pueblo, Colorado. One of the largest solar infrastructure projects in the state, the 300 megawatt Bighorn Solar project is being developed and financed by Lightsource bp, who will be the long-term owner and operator.
McCarthy to begin construction this fall
McCarthy Building Companies’ Renewable Energy & Storage team was named by Lightsource bp as the Engineer, Procure, and Construction (EPC) Contractor for the Bighorn Solar project, which will include the installation of nearly 750,000 Canadian Solar crystalline solar panels and NEXTracker single-axis trackers. The project is primarily located on 1,800 acres of land on EVRAZ Rocky Mountain Steel property in Pueblo, making it the largest on-site solar facility dedicated to a single customer in the country. Xcel Energy, as the electrical provider for the steel mill, will purchase the electricity wholesale from Lightsource bp to sell to EVRAZ Rocky Mountain Steel, providing cost effective and predictable electricity rates that are helping ensure that the steel mill that employs 1,000 local workers is able to remain in Pueblo as well as expand their operations.
“Colorado and the Pueblo community continue to advance a bold national model about how to take advantage and harness the power of the clean energy economy. This project is the latest example of the sweeping benefits of investing in renewable energy, including cutting pollution, and increasing local job growth.” - Governor Jared Polis |
Local job and training opportunities
“We selected the McCarthy team as our EPC contractor both for their track record in successfully building large utility-scale projects here in Colorado as well as their commitment to hiring a local workforce. This project is a great example of how innovative partnerships can maximize the economic benefits that clean energy projects bring to local communities. At Lightsource bp, we’re excited to partner with organizations that will help us be a leader in a transition to low carbon energy that includes everyone.”
- Kevin Smith
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In addition to the local economic benefits that Bighorn Solar is bringing to Pueblo through its contribution to the economics of the steel mill and its new expansion, the project will create approximately 300 direct jobs on site, the majority of which will be hired from the local community, for the 12-14 month construction period beginning this fall. Bighorn Solar is expected to complete in late 2021.
Area residents interested in working on the Bighorn Solar project should visit www.McCarthy.com/careers/search, and enter “solar” to find job postings for positions ranging from entry level to experienced, including laborer, operator, crew lead, electrician, and journeyman electrician.
To train entry level laborers and craft workers new to the growing solar industry, McCarthy is implementing principles of Training Within Industry (TWI), a program originally developed by United States Department of War in the 1940s to help re-train workers quickly and reliably on moderately complex tasks. Through its TWI solar program, McCarthy applies its "Learn. Perform. Repeat” methodology and offers highly effective and efficient training to workers with little or no experience in solar installations. By deploying TWI and lean construction principles on solar projects from coast to coast, McCarthy is overcoming the biggest challenge faced by the construction industry today and successfully training its craft workforce.
“Knowing the significant impact that Bighorn Solar will have on the community of Pueblo, Colorado makes it extremely rewarding to be part of building the project. The renewable energy sector is helping communities around the country to benefit from jobs and meeting their clean energy goals. Our workforce training program is designed to do exactly that, along with helping more people begin to develop careers in renewable energy.”
- Scott Canada
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Making solar jobs accessible to community members most in need
Lightsource bp is a corporate sponsor of GRID Alternatives, a national non-profit making renewable energy technology and job training accessible to low-income communities and communities of color. Through this partnership, Lightsource bp is sponsoring economic development programs in the state of Colorado, including a free solar training program for un- and underemployed workers in Pueblo. While the primary goal of the program is to train participants for the solar industry, graduates leave with valuable experiences that are transferable to the general construction, electrical, and mechanical trades. Lightsource bp is also a sponsor of an upcoming event with GRID Alternatives in Pueblo that highlights the installation of a community solar project benefitting low-income residents.
McCarthy looks forward to supporting Lightsource bp's partnership with GRID Alternatives and plans use their training program to assist with identifying local workers for the Bighorn Solar project construction.
Media contact: Mary Grikas at This email address is being protected from spambots. You need JavaScript enabled to view it.
-- Preparing for a New Climate Reality, JetBlue Begins Offsetting Emissions for All Domestic Flights and Investing in Sustainable Aviation Fuel, Significantly Reducing its Contribution to the Climate Crisis --
-- Recognizing the Critical Role Renewable Fuel Options Will Play in the Aviation Industry’s Transition to Lower-Carbon Operations, JetBlue Starts Flying with Neste’s Sustainable Aviation Fuel on Flights from San Francisco --
NEW YORK--(BUSINESS WIRE)--JetBlue (Nasdaq: JBLU) today announced it has followed through on its commitment to go carbon neutral on all domestic flights. Earlier this year, JetBlue became the first major U.S. airline to commit to this critical and measurable step toward reducing its contribution to global warming, and is now the first U.S. airline to achieve carbon neutrality on all domestic flying.
On July 1, the airline began offsetting its carbon dioxide emissions (CO2) from jet fuel for all domestic JetBlue-operated flights. JetBlue views carbon offsetting as a bridge to other industry-wide environmental improvements like fuel with lower emissions. Therefore, JetBlue is also investing in sustainable aviation fuel (SAF) and to start, the airline is fueling flights from San Francisco International Airport (SFO) with SAF.
Carbon neutrality is just one way JetBlue is preparing for a changing climate and ensuring a more sustainable business for its crewmembers, customers, shareholders and communities. JetBlue’s carbon reduction strategy focuses on reducing emissions in the first place. This includes investments to shrink its impact through fuel-saving technologies and aircraft, and advocating for a more fuel-efficient air traffic control system. JetBlue has achieved reductions in emissions on an intensity basis since 2015, and most recently improved 2.2 percent per available seat mile (ASM) from 2018 to 2019. Offsetting all remaining emissions from domestic flights and investing in SAF will help JetBlue move toward the lower-carbon economy for which aviation and all sectors must plan.
“The global pandemic reinforces the need to mitigate risks that threaten the health of our business. Our commitment to sustainability has only become more important as we prepare our business for a new climate reality,” said Joanna Geraghty, president and chief operating officer, JetBlue. “Even with a long recovery ahead following the COVID-19 pandemic, JetBlue remains focused on short- and long-term environmental opportunities, particularly lessening our largest impact – carbon emissions – and more fuel efficient flying.”
Offsetting emissions from all domestic flights
Since 2008, JetBlue has been offsetting CO2 emissions from jet fuel with programs to balance customer flying, including a month of carbon neutral flying network-wide in 2015 and again in 2019. Offsetting all domestic flying expands those efforts in a bigger and more impactful way. Prior to this announcement, JetBlue had already offset more than 2.6 billion pounds of CO2 emissions in partnership with CarbonFund.org Foundation—a leading U.S. based nonprofit carbon reduction and climate solutions organization. JetBlue’s new carbon offsetting partners include two experts in climate solutions and carbon offsetting – South Pole and EcoAct, in addition to Carbonfund.org.
JetBlue will offset all emissions from jet fuel for domestic routes and expects to ramp up to offset 15-17 billion pounds (7 to 8 million metric tons) of CO2 emissions each year – the annual equivalent of removing more than 1.5 million passenger vehicles from the road.
As part of its offsetting program, JetBlue selects projects around the globe that will balance the emissions from its jet fuel. Many projects operate in developed countries where a bigger community impact can be made. Emissions reduction projects reduce the amount of greenhouse gas in the atmosphere in at least one of three ways – avoiding greenhouse gas emissions in favor of renewable sources, removing emissions from the atmosphere, and destroying emissions when possible.
JetBlue’s sustainable aviation fuel program begins on flights from San Francisco
JetBlue has started purchasing and flying on sustainable aviation fuel (SAF) from Neste, the world’s third most sustainable company and the largest producer of renewable diesel and SAF made from waste and residue materials, starting in July 2020 for flights from San Francisco International Airport (SFO). Neste’s SAF will contribute to JetBlue’s efforts to reach its climate goals, providing an immediate reduction in greenhouse gas emissions from any aircraft using the fuel.
“Neste is proud to be supplying and working with JetBlue, an airline with a strong track record of sustainability leadership," says Chris Cooper, Vice President for Renewable Aviation at Neste North America. "We are bringing additional SAF production capacity online and stand ready to provide JetBlue with even more of this low-emission, high-quality fuel to help them achieve carbon neutral growth. Our work with JetBlue is sending a clear signal to anyone wondering what the future of air travel is - it will be lower-emission, it will be more sustainable, and it will be increasingly powered by SAF.”
Neste is now successfully delivering SAF to SFO via pipeline, a milestone the airport has called a “climate quantum leap”. Once Neste’s SAF enters SFO’s fuel consortium storage, it is available to the commercial, cargo or business aviation entities that operate at the airport. JetBlue was a first mover in adopting Neste’s SAF at SFO, recently taking delivery of the fuel at the airport. With agreements like this, JetBlue is helping to kick-start the SAF market by improving the economics and increasing the use of these lower carbon fuels.
Neste’s SAF is produced from 100 percent renewable and sustainably sourced waste and residue materials. Over the lifecycle and in neat form, it has up to 80 percent smaller carbon footprint compared to fossil jet fuel whilst also emitting less particulate matter, SOX, and other pollutants. The fuel is shipped via the fuel pipeline, and is fully compatible with the existing jet engine technology and fuel distribution infrastructure when blended with fossil jet fuel. Safety is JetBlue’s number one priority, and the fuel is used alongside regular fuel without any changes in safety or impact.
How carbon offsetting works – When projects that reduce CO₂ emissions are developed, every ton of emissions reduced results in the creation of one carbon offset or carbon credit. A carbon credit is a tradeable certificate that represents the avoidance or removal of one ton of carbon dioxide emissions. Buying carbon credits means investing in emission reduction projects that require carbon offsets financing in order to take place (a.).
JetBlue will support carbon offsets projects focused on but not limited to:
All of JetBlue’s purchased carbon offsets are audited, verified and retired on the airline’s behalf. These projects are audited to confirm the carbon reductions are permanent and ongoing. The sale of carbon offsets help to finance the projects. (b.)
JetBlue’s focus on climate leadership – JetBlue’s environmental social governance (ESG) strategy focuses on issues that have the potential to impact its business and the industry in the long-term. Customers, crewmembers and community, as well as stakeholders, are key to JetBlue's climate and sustainability strategy. Demand from these groups for responsible service is one of the motivations to further reduce the airline’s environmental impact. Shareholders, including many crewmembers, have demanded that JetBlue’s ESG strategy benefit stakeholders and the airline’s financial position. Tying ESG to its treasury function, including cash investments and a sustainability-linked loan with some terms dependent on the airline’s ESG scores, further demonstrates JetBlue’s commitment to combat climate change.
Carbon offsetting is just one example of how JetBlue is mitigating its contribution to climate change in response to public and market demand. JetBlue’s 2019 Environmental Social Governance (ESG) Report identifies key sustainability factors that affect the airline’s business and financial performance. For more information, visit jetblue.com/sustainability.
About JetBlue
JetBlue is New York's Hometown Airline®, and a leading carrier in Boston, Fort Lauderdale-Hollywood, Los Angeles, Orlando, and San Juan. JetBlue carries customers across the U.S., Caribbean, and Latin America. For more information, visit jetblue.com.
About Neste:
Neste (NESTE, Nasdaq Helsinki) creates sustainable solutions for transport, business, and consumer needs. Our wide range of renewable products enable our customers to reduce climate emissions. We are the world's largest producer of renewable diesel refined from waste and residues, introducing renewable solutions also to the aviation and plastics industries. We are also a technologically advanced refiner of high-quality oil products. We want to be a reliable partner with widely valued expertise, research, and sustainable operations. In 2019, Neste's revenue stood at EUR 15.8 billion. In 2020, Neste placed 3rd on the Global 100 list of the most sustainable companies in the world. Learn more about Neste and its mission to fight climate change at Neste.com. Follow Neste on twitter: @Neste_NA and on LinkedIn.
(a.) |
Sourced with permission from www.southpole.com/carbon-offsets-explained |
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(b.) |
Carbon Offsets Project Certification – JetBlue has purchased high-quality carbon credits that adhere to a strict set of standards. Projects are registered with a third-party internationally recognized verification standard, including the Gold Standard, Verra's Verified Carbon Standard (VCS), Social Carbon and Climate, Community and Biodiversity Standards (CCBS), or standards verified by the UNFCCC. These standards also help highlight different benefits while ensuring that the project is real, verified, permanent and additional. |
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Projects certified under each standard means that they have been developed following the rules and requirements of the particular standard; have been independently audited and verified; follow defined GHG emission reduction quantification methodology; and carbon credits are assigned serial numbers and are issued, transferred and permanently retired in publicly accessible emission registries. |
JetBlue follows the below principles when selecting projects:
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Technology Ventures Team Identifies Zap Energy
HOUSTON--(BUSINESS WIRE)--Chevron Corporation (NYSE: CVX) today announced a Series A investment in Zap Energy Inc., a Seattle-based start-up company developing a next-generation modular nuclear reactor with an innovative approach to advancing cost-effective, flexible, and commercially scalable fusion.
Chevron Technology Ventures’ investment in fusion is an opportunity to enhance the company’s focus on a diverse portfolio of low-carbon energy resources with the capacity to provide communities across the globe access to affordable, reliable, and ever-cleaner energy.
Conventional nuclear power uses nuclear fission which involves the splitting of a large unstable nucleus into smaller elements and generates long-lived radioactive waste. Nuclear fusion occurs when nuclei of lightweight elements (typically hydrogen) collide with enough force to fuse and form a heavier element – a process that releases substantial amounts of energy with no greenhouse gas emissions and limited long-lived radioactive waste.
Founded in 2018, Zap Energy’s technology stabilizes plasma using sheared flows to confine and compress the plasma.
“We see fusion technology as a promising low-carbon future energy source,” said Barbara Burger, president of Chevron Technology Ventures. “Our Future Energy Fund investment in Zap Energy adds to Chevron’s portfolio of companies we believe are likely to have a role in the energy transition.”
This investment marks the 10th investment by Chevron’s Future Energy Fund, which was launched in 2018 to explore breakthrough technologies that enable macro decarbonization, the mobility-energy nexus, and energy decentralization.
“Our Future Energy Fund investments provide us with strategic insight into power generation markets and potentially disruptive impacts of innovative approaches, like fusion, geothermal, wind, and solar, on the conventional power value chain,” said Burger.
Zap Energy will use the funds raised in this round to continue technology development and grow their development team.
About Chevron Technology Ventures
Chevron Technology Ventures (CTV) pursues externally developed technologies and new business solutions that have the potential to enhance the way Chevron produces and delivers affordable, reliable, and ever-cleaner energy. CTV leverages innovative companies and technologies to strengthen Chevron’s core operations and identifies new opportunities to shape the future of energy. For more information, visit www.chevron.com/technology/technology-ventures.
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CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This news release contains forward-looking statements relating to Chevron's operations that are based on management's current expectations, estimates and projections about the petroleum, chemicals and other energy-related industries. Words or phrases such as “anticipates,” “expects,” “intends,” “plans,” “targets,” “forecasts,” “projects,” “believes,” “seeks,” “schedules,” “estimates,” “positions,” “pursues,” “may,” “could,” “should,” “will,” “budgets,” “outlook,” “trends,” “guidance,” “focus,” “on schedule,” “on track,” “is slated,” “goals,” “objectives,” “strategies,” “opportunities,” “poised” “potential” and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, many of which are beyond the company's control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. The reader should not place undue reliance on these forward-looking statements, which speak only as of the date of this news release. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are: changing crude oil and natural gas prices and demand for our products, and production curtailments due to market conditions; crude oil production quotas or other actions that might be imposed by the Organization of Petroleum Exporting Countries and other producing countries; public health crises, such as pandemics (including coronavirus (COVID-19)) and epidemics, and any related government policies and actions; changing economic, regulatory and political environments in the various countries in which the company operates; general domestic and international economic and political conditions; changing refining, marketing and chemicals margins; the company's ability to realize anticipated cost savings, expenditure reductions and efficiencies associated with enterprise transformation initiatives; actions of competitors or regulators; timing of exploration expenses; timing of crude oil liftings; the competitiveness of alternate-energy sources or product substitutes; technological developments; the results of operations and financial condition of the company's suppliers, vendors, partners and equity affiliates, particularly during extended periods of low prices for crude oil and natural gas during the COVID-19 pandemic; the inability or failure of the company's joint-venture partners to fund their share of operations and development activities; the potential failure to achieve expected net production from existing and future crude oil and natural gas development projects; potential delays in the development, construction or start-up of planned projects; the potential disruption or interruption of the company's operations due to war, accidents, political events, civil unrest, severe weather, cyber threats, terrorist acts, or other natural or human causes beyond the company's control; the potential liability for remedial actions or assessments under existing or future environmental regulations and litigation; significant operational, investment or product changes required by existing or future environmental statutes and regulations, including international agreements and national or regional legislation and regulatory measures to limit or reduce greenhouse gas emissions; the potential liability resulting from pending or future litigation; the ability to successfully receive the requisite approvals and consummate the proposed acquisition of Noble Energy, Inc.; the ability to successfully integrate the operations of Chevron and Noble Energy and achieve the anticipated benefits from the transaction; the company's other future acquisitions or dispositions of assets or shares or the delay or failure of such transactions to close based on required closing conditions; the potential for gains and losses from asset dispositions or impairments; government-mandated sales, divestitures, recapitalizations, industry-specific taxes, tariffs, sanctions, changes in fiscal terms or restrictions on scope of company operations; foreign currency movements compared with the U.S. dollar; material reductions in corporate liquidity and access to debt markets; the receipt of required Board authorizations to pay future dividends; the effects of changed accounting rules under generally accepted accounting principles promulgated by rule-setting bodies; the company's ability to identify and mitigate the risks and hazards inherent in operating in the global energy industry; and the factors set forth under the heading “Risk Factors” on pages 18 through 21 of the company's 2019 Annual Report on Form 10-K and in subsequent filings with the U.S. Securities and Exchange Commission. Other unpredictable or unknown factors not discussed in this news release could also have material adverse effects on forward-looking statements.
Mary Murrin, This email address is being protected from spambots. You need JavaScript enabled to view it., +1 713-372-0105
Renewable Properties breaks ground on Silveira Ranch solar project
SAN FRANCISCO--(BUSINESS WIRE)--#SEIA--Renewable Properties, a developer and investor of small-scale utility and community solar energy projects throughout the U.S., begins construction on the Silveira Ranch Solar Project, the largest community solar array in Marin County to date, after months of development, planning and preparation.
Renewable Properties developed the utility-scale solar project to supply Marin Clean Energy (MCE), California’s first Community Choice Aggregation Program, with 3 MWac of in-service area solar electricity. This is the firm’s first project in Marin County, and third overall developed for MCE to deliver clean, locally-produced electricity to its customers through a 20-year power purchase agreement.
“Climate change is a global problem requiring creative local solutions like the collaborative effort behind this solar installation,” said Aaron Halimi, President of Renewable Properties. “We appreciate the opportunity to continue our work with MCE to supply affordable, locally sourced solar energy to its customers throughout the North Bay, and are especially grateful to the local landowners for making it all possible by leasing us a portion of their cattle ranch to house this project.”
The community-scale solar array will occupy 11 acres of a larger 41-acre site privately owned by a local cattle ranching family. Portions of the site will continue to be grazed by cattle to meet county requirements for the project to include continued on-site agricultural use.
“We’re grateful to have partners like Renewable Properties we can work with on energy infrastructure projects that lower our carbon footprint,” said Kate Sears, Marin County Third District Supervisor and Board Chair of MCE. “Knowing the concerns around COVID-19 and the economy, these solar projects will not only provide necessary upgrades to our aging grid infrastructure and reduce our dependence on traditional energy sources, but also keep local crews employed in outdoor physically-distanced working conditions when unemployment rates are climbing.”
“The Silveira Ranch solar project is a continuation of MCE’s mission to reduce energy-related greenhouse gas emissions with renewable energy at cost-competitive rates,” said Dawn Weisz, CEO of MCE. “We are grateful to work again with the team at Renewable Properties, who have been excellent partners on several other local projects. Successful partnerships like this allow MCE to further our workforce development efforts with local, fair-wage jobs while increasing the amount of local renewable energy available to our customers.”
Using a fixed tilt racking technology and more than 8,604 bifacial solar photovoltaic (PV) modules, the installation will produce enough clean electricity to power 800 single-family homes in Marin County annually. This is equivalent to avoiding more than 4,723 metric tons of CO₂ emissions annually which is similar to the volume of greenhouse gases emitted from 1,020 passenger vehicles driven over the course of one year1.
Like the recently announced Soscol Ferry Road Solar Project in neighboring Napa County, Silveira Ranch Solar is the first community-scale solar installation in Marin County to include a pollinator plant meadow; the result of a collaboration with San Francisco-based Pollinator Partnership, the world’s largest nonprofit devoted solely to the health of all pollinators.
1 According to US EPA Greenhouse Gas Equivalencies calculations.
About Renewable Properties:
Founded in 2017, Renewable Properties specializes in developing and investing in small-scale utility and community solar energy projects throughout the U.S. Led by experienced renewable energy professionals with development and investment experience, Renewable Properties works closely with communities, developers, landowners, utilities and financial institutions looking to invest in large solar energy systems. For more information about Renewable Properties, visit www.renewprop.com.
About MCE:
As California’s first Community Choice Aggregation Program, MCE is a groundbreaking, not-for-profit, public agency that has been setting the standard for energy innovation in our communities since 2010. MCE offers cleaner power at stable rates, significantly reducing energy-related greenhouse emissions and enabling millions of dollars of reinvestment in local energy programs. MCE is a load-serving entity supporting a 1,000 MW peak load. MCE provides electricity service to more than 480,000 customer accounts and more than one million residents and businesses in 34 member communities across four Bay Area counties: Contra Costa, Napa, Marin and Solano. For more information about MCE, visit mceCleanEnergy.org.
Philip Hall
310-430-1091
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LEAWOOD, KS--(BUSINESS WIRE)--Tortoise Essential Assets Income Term Fund (NYSE: TEAF) provides an update on the fund’s direct investments, portfolio asset allocation, structure types and impact statistics as of July 31, 2020 on the company website here. Updates will continue to be posted on a monthly basis until the fund reaches its target of 60% direct investments.
In addition, on a monthly basis, details on each private deal that has taken place over the prior month will be published here. The list includes all deals completed since the fund’s inception through July 31, 2020.
About Tortoise Essential Assets Income Term Fund
TEAF is managed with a long-term focus on essential assets through public and direct investments across social infrastructure, sustainable infrastructure and energy infrastructure. These assets tend to be uncorrelated assets that have attractive potential for high total return with an emphasis on current income as well as a relatively inelastic demand profile.
About Tortoise
Tortoise invests in essential assets – those assets and services that are indispensable to the economy and society. With a steady wins approach and a long-term perspective, Tortoise strives to make a positive impact on clients and communities. For additional information, please visit tortoiseadvisors.com.
Tortoise Capital Advisors, L.L.C. is the adviser to Tortoise Essential Assets Income Term Fund. Ecofin Advisors Limited is a sub-adviser to Tortoise Essential Assets Income Term Fund.
Safe harbor statement
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains certain statements that may include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are "forward-looking statements." Although the fund and Tortoise Capital Advisors believe that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the fund’s reports that are filed with the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required by law, the fund and Tortoise Capital Advisors do not assume a duty to update this forward-looking statement.
Maggie Zastrow
(913) 981-1020
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DUBLIN--(BUSINESS WIRE)--ResearchAndMarkets.com published a new article on the electric boat industry "A Seattle Based Startup Zin Boats is Looking to Prove That Electric Boats Can be a Practical Alternative to Traditional Boats."
The maritime industry has traditionally viewed electric boats as impractical. This is due mainly to concerns that an electric motor would not be able to supply the increased amount of power needed to move a boat versus a car as well as fears that electric boats would not have the range to cover long distances. However, these attitudes are beginning to change with improvements in lithium ion battery technology along with an increased focus on sustainable alternatives to fossil fuels.
Yamaha recently launched a trial of its new HARMO system on the Otaru Canal in Hokkaido, Japan. HARMO integrates a twin electric boat motor with a next generation steering control system. Yamaha hopes to bring the HARMO system to the European market which is affected by increasing restrictions on the use of fossil fuel powered crafts on inland waterways. A Seattle based startup Zin Boats is also looking to prove that electric boats can be a practical and sustainable alternative to traditional boats. The Z2T and Z2R models use an all carbon fiber construction making them half the weight of a comparable craft while the BMW batteries offer a fast recharge and an 100 mile average range.
To see the full article and a list of related reports on the market, visit "A Seattle Based Startup Zin Boats is Looking to Prove That Electric Boats Can be a Practical Alternative to Traditional Boats"
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TORONTO--(BUSINESS WIRE)--Superior Plus Corp. (“Superior”) (TSX:SPB) announced today the financial and operating results for the second quarter ended June 30, 2020. Unless otherwise expressed, all financial figures are expressed in Canadian dollars.
“Overall, we are pleased with the second quarter results, which were 13% higher than the prior year based on Adjusted EBITDA, driven primarily by strong unit margins and cost reductions in our U.S. and Canadian propane distribution businesses,” said Luc Desjardins, President and CEO. “Our sales volumes in our Specialty Chemicals and Energy Distribution businesses were lower than the prior year quarter, and the operational teams have done an excellent job adjusting the cost structure for the reduced volumes. We made great progress on reducing our debt during the second quarter, and the closing of the Brookfield Investment in the third quarter further enhances our liquidity and our ability to grow through acquisitions. Subsequent to quarter end, we acquired the retail propane distribution assets of Champagne’s Energy, our second tuck-in acquisition of 2020 and first since the Brookfield Investment closed.”
COVID-19 Update
As a result of the various impacts of the novel Coronavirus (“COVID-19”) pandemic, we have made a number of adjustments to our operating facilities and how we operate to ensure the safety of our customers, vendors, employees and the communities we serve. The duration and impact of the COVID-19 outbreak are still unknown at this time, and it is difficult to estimate the full impact on our operations, the markets for our products and our financial results. At the current time, we do expect a modest impact to our business as it relates to our customers that operate in industries governments have classified as non-essential and customers required to operate at reduced capacity.
Luc Desjardins further stated, “The safety, health and well-being of our employees and the communities in which we operate remain our primary focus. Our goal is to operate safely and to mitigate potential exposure. As such, we implemented physical distancing strategies, increased cleaning and disinfection at our facilities and offices, provided personal protective equipment as required, executed remote working policies, and eliminated all non-essential travel.”
2020 Adjusted EBITDA and Leverage Guidance Update
Based on management’s evaluation of the anticipated impacts from the COVID-19 pandemic and reduced oil and gas drilling activity in North America, as well as the impact from the significantly warmer weather in the first quarter, Superior continues to expect 2020 Adjusted EBITDA to remain within the previously disclosed guidance range of $475 million to $515 million, albeit near the lower end of the range, based on current estimates. Average weather, as measured by degree days for the remainder of 2020 is anticipated to be consistent with the five-year average for Canada and the U.S.
On June 8, 2020, Superior updated its previously communicated expected Total Debt to Adjusted EBITDA guidance at December 31, 2020 from a range of 3.6x to 4.0x to a range of 3.0x to 3.5x, consistent with Superior’s long-term target range. The decrease reflects the proceeds of the Brookfield Investment being used to reduce debt. Superior continues to expect Total Debt to Adjusted EBITDA as at December 31, 2020 to be in the range of 3.0x to 3.5x, based on current estimates.
Business and Financial Highlights
Financial Overview |
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Three Months Ended |
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Six Months Ended |
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June 30 |
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June 30 |
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(millions of dollars, except per share amounts) |
2020 |
2019 |
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2020 |
2019 |
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Revenue (1) |
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450.8 |
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545.8 |
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1,291.0 |
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1,581.8 |
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Gross Profit (1) |
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219.8 |
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223.7 |
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619.0 |
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652.0 |
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Net earnings |
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7.5 |
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(29.3) |
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18.9 |
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127.3 |
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Net earnings per share, basic and diluted (2) |
$ |
0.04 |
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$ |
(0.17) |
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$ |
0.11 |
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$ |
0.73 |
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EBITDA from operations (3) |
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76.9 |
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71.4 |
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300.8 |
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320.7 |
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Adjusted EBITDA (3) |
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67.7 |
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59.7 |
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287.0 |
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299.6 |
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Net cash flows from operating activities |
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187.6 |
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163.5 |
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272.4 |
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275.7 |
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Net cash flows from operating activities per share basic and diluted (2) |
$ |
1.07 |
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$ |
0.93 |
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$ |
1.55 |
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$ |
1.58 |
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AOCF before transaction and other costs (3)(4) |
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40.8 |
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31.0 |
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228.7 |
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242.0 |
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AOCF before transaction and other costs per share, basic and diluted(2)(3)(4) |
$ |
0.23 |
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$ |
0.18 |
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$ |
1.30 |
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$ |
1.38 |
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AOCF (3) |
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35.7 |
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17.8 |
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218.3 |
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223.8 |
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AOCF per share, basic and diluted (2)(3) |
$ |
0.20 |
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$ |
0.10 |
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$ |
1.25 |
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$ |
1.28 |
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Cash dividends declared |
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31.8 |
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31.5 |
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63.0 |
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63.0 |
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Cash dividends declared per share |
$ |
0.18 |
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$ |
0.18 |
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$ |
0.36 |
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$ |
0.36 |
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(1) |
Revenue and gross profit have been presented excluding realized gains and losses on commodity derivative instruments and the comparative figures have been restated. These gains and losses are included in gains (losses) on derivatives and foreign currency translation of borrowings in the unaudited condensed interim consolidated financial statements. For purposes of determining margin per litre, gross profit has been adjusted to include realized gains and losses on commodity derivative instruments. See “Non-GAAP Financial Measures”. |
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(2) |
The weighted average number of shares outstanding for the three and six months ended June 30, 2020 is 175.6 million and 175.3 million, respectively (three and six months ended June 30, 2019 –174.9 million). There were no dilutive instruments with respect to AOCF and AOCF before transaction and other costs per share for the three months and six months ended June 30, 2020 and 2019. |
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(3) |
EBITDA from operations, Adjusted EBITDA and AOCF are non-GAAP measures. Refer to “Non-GAAP Financial Measures” for further details and the First Quarter Management Discussion & Analysis (“MD&A”) for reconciliations. |
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(4) |
Transaction and other costs for the three and six months ended June 30, 2020 and 2019 are related to acquisition activity and the integration of acquisitions. See “Transaction and Other Costs” for further details. |
| Segmented Information |
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Three Months Ended |
Six Months Ended |
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June 30 |
June 30 |
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(millions of dollars) |
2020 |
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2019 |
2020 |
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2019 |
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EBITDA from operations(1) |
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Canadian Propane Distribution |
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21.2 |
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20.0 |
107.8 |
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104.3 |
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U.S. Propane Distribution |
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27.1 |
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12.8 |
130.5 |
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138.2 |
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Specialty Chemicals |
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28.6 |
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38.6 |
62.5 |
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78.2 |
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76.9 |
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71.4 |
300.8 |
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320.7 |
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(1) |
See “Non-GAAP Financial Measures”. |
Brookfield Investment
On July 13, 2020, Superior announced the issuance of 260,000 perpetual exchangeable preferred shares (the “Preferred Shares”) in its wholly owned subsidiary Superior Plus US Holdings Inc. for gross proceeds of US$260 million (the “Brookfield Investment”) to an affiliate of Brookfield Asset Management Inc. (“Brookfield”), on a private placement basis. The Preferred Shares entitle the holders to a monthly dividend at a current rate of 7.25% per annum through to the end of Superior’s second fiscal quarter in 2027, and may be exchanged, at Brookfield’s option, into common shares of Superior at an exchange price of US $8.67 per common share. On an as-exchanged basis, the Brookfield Investment currently represents approximately 15% of the pro forma fully diluted outstanding common shares.
Superior used the proceeds of the Brookfield Investment to immediately reduce the credit facility debt, and expects to use the available liquidity to accelerate its retail propane distribution asset acquisition strategy with a primary focus in the U.S. Pro forma the Brookfield Investment, Superior’s Total Debt to Adjusted EBITDA leverage ratio was 3.0x based on the trailing twelve months ended June 30, 2020.
Dividend Reinvestment Program
Superior reinstated its Dividend Reinvestment Program (the “DRIP”) with the February 2020 dividend paid on March 13, 2020. On June 15, 2020, after the Brookfield Investment announcement, Superior suspended the DRIP. Superior’s DRIP program will remain in place should Superior elect to reactivate the DRIP, subject to regulatory approval, at a future date.
Business Development and Acquisition Update
On August 3, 2020, Superior acquired the propane distribution assets of an independent propane distributor in Maine for total consideration of US $27.3 million (CDN $36.5 million). The purchase price was paid primarily with cash from Superior’s credit facility, as well as deferred payments.
Debt Management and Leverage Update
Superior remains focused on managing both its debt and its leverage ratio. Superior’s Total Debt to Adjusted EBITDA leverage ratio for the trailing twelve months ended June 30, 2020 was 3.7x, consistent with the leverage ratio at December 31, 2019.
Superior’s Total Debt as at June 30, 2020, was $1,881.7 million, a decrease of $74.4 million from December 31, 2019 primarily due to cash generated from operations used to repay debt, partially offset by the impact of the weaker Canadian dollar on U.S. denominated debt, the acquisition of Western Propane completed in January 2020 and new leases.
Superior is well within its covenants under its credit facility agreement and unsecured note indentures. Superior’s Senior Debt to Credit Facility EBITDA ratio was 3.6x as at June 30, 2020, and cannot exceed 5.0x. Superior also had available liquidity of $357.8 million available under the credit facility as at June 30, 2020. Pro forma the Brookfield Investment, Superior has less than $100 million drawn on the credit facility and over $650 million in capacity.
MD&A and Financial Statements
Superior’s MD&A, the unaudited Interim Consolidated Financial Statements and the Notes to the Interim Consolidated Financial Statements for the three and six months ended June 30, 2020 provide a detailed explanation of Superior’s operating results. These documents are available online at Superior’s website at www.superiorplus.com under the Investor Relations section and on SEDAR under Superior’s profile at www.sedar.com.
2020 Second Quarter Conference Call
Superior will be conducting a conference call and webcast for investors, analysts, brokers and media representatives to discuss the Second Quarter Results at 10:30 a.m. 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.
Non-GAAP Financial Measures
Throughout the second quarter earnings release, Superior has used the following terms that are not defined by International Financial Reporting Standards (“Non-GAAP Financial Measures”), but are used by management to evaluate the performance of Superior and its business: AOCF before and after transaction and other costs, earnings before interest, taxes, depreciation and amortization (“EBITDA”) from operations, Adjusted Gross Profit, Adjusted EBITDA, Senior Debt, Credit Facility EBITDA and Senior Debt to Credit Facility EBITDA leverage ratio. These measures may also be used by investors, financial institutions and credit rating agencies to assess Superior’s performance and ability to service debt. Non-GAAP financial measures do not have standardized meanings prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other companies. Securities regulations require that Non-GAAP financial measures are clearly defined, qualified and reconciled to their most comparable GAAP financial measures. Except as otherwise indicated, these Non-GAAP financial measures are calculated and disclosed on a consistent basis from period to period. Specific items may only be relevant in certain periods. See “Non-GAAP Financial Measures” in the MD&A for a discussion of Non-GAAP financial measures and certain reconciliations to GAAP financial measures.
The intent of Non-GAAP financial measures is to provide additional useful information to investors and analysts, and the measures do not have any standardized meaning under IFRS. The measures should not, therefore, be considered in isolation or used in substitute for measures of performance prepared in accordance with IFRS. Other issuers may calculate Non-GAAP financial measures differently. Investors should be cautioned that AOCF, EBITDA from operations, Adjusted EBITDA and Credit Facility EBITDA should not be construed as alternatives to net earnings, cash flow from operating activities or other measures of financial results determined in accordance with GAAP as an indicator of Superior’s performance. Non-GAAP financial measures are identified and defined as follows:
Adjusted Operating Cash Flow and Adjusted Operating Cash Flow per Share
AOCF is equal to cash flow from operating activities as defined by IFRS, adjusted for changes in non-cash working capital, other expenses, non-cash interest expense, current income taxes and finance costs. Superior may deduct or include additional items in its calculation of AOCF; these items would generally, but not necessarily, be infrequent in nature and could distort the analysis of trends in business performance. Excluding these items does not imply they are non-recurring. AOCF and AOCF per share are presented before and after transaction and other costs.
AOCF per share before transaction and other costs is calculated by dividing AOCF before transaction and other costs by the weighted average number of shares outstanding. AOCF per share is calculated by dividing AOCF by the weighted average number of shares outstanding.
AOCF is a performance measure used by management and investors to evaluate Superior’s ongoing performance of its businesses and ability to generate cash flow. AOCF represents cash flow generated by Superior that is available for, but not necessarily limited to, changes in working capital requirements, investing activities and financing activities of Superior. AOCF is also used as one component in determining short-term incentive compensation for certain management employees.
The seasonality of Superior’s individual quarterly results must be assessed in the context of annualized AOCF. Adjustments recorded by Superior as part of its calculation of AOCF include, but are not limited to, the impact of the seasonality of Superior’s businesses, principally the Energy Distribution segment, by adjusting for non-cash working capital items, thereby eliminating the impact of the timing between the recognition and collection/payment of Superior’s revenues and expenses, which can differ significantly from quarter to quarter. AOCF is reconciled to cash flow from operating activities. Please refer to the Financial Overview section of the MD&A for the reconciliation.
Adjusted Gross Profit
Adjusted gross profit represents revenue less cost of sales adjusted for realized gains and losses on commodity derivative instruments related to risk management. Management uses Adjusted Gross Profit to set margin targets and measure results. Unrealized gains and losses on commodity derivative instruments are excluded because of the accounting mis-match that exists as a result of the customer contract not being included in the determination of the fair value for this risk management activity.
Adjusted EBITDA
Adjusted EBITDA represents earnings before interest, taxes, depreciation, amortization, losses (gains) on disposal of assets, finance expense, restructuring costs, transaction and other costs, and unrealized gains (losses) on derivative financial instruments. Adjusted EBITDA is used by Superior and investors to assess its consolidated results and ability to service debt. Adjusted EBITDA is reconciled to net earnings before income taxes.
EBITDA from operations
EBITDA from operations is defined as Adjusted EBITDA excluding costs that are not considered representative of Superior’s underlying core operating performance, including gains and losses on foreign currency hedging contracts, corporate costs and transaction and other costs. Management uses EBITDA from operations to set targets for Superior (including annual guidance and variable compensation targets). EBITDA from operations is reconciled to net earnings before income taxes. Please refer to the Results of Operating Segments in the MD&A for the reconciliations.
Operating Expenses
Operating expenses include wages and benefits for employees, drivers, service and administrative labour, fleet maintenance and operating costs, freight and distribution expenses excluded from cost of sales, along with the costs associated with owning and maintaining land, buildings and equipment, such as rent, repairs and maintenance, environmental, utilities, insurance and property tax costs. Operating expenses exclude gains or losses on disposal of assets, depreciation and amortization and non-recurring expenses, such as transaction, restructuring and integration costs.
Operating expenses are defined as SD&A expenses adjusted for amortization and depreciation, gains or losses on disposal of assets, impairments and transaction, restructuring and other costs.
Non-GAAP Financial Measures Used for bank covenant purposes
Senior Debt
Senior Debt includes total borrowing before deferred financing fees and vehicle lease obligations, and excludes the remaining lease obligations. Senior Debt is used by Superior to calculate its debt covenants and other credit information.
Credit Facility EBITDA
Credit Facility EBITDA is defined as Adjusted EBITDA calculated on a 12-month trailing basis giving pro forma effect to acquisitions and dispositions adjusted to the first day of the calculation period, and excludes the impact from the adoption of IFRS 16 and EBITDA from undesignated subsidiaries.
Beth Summers Executive Vice President and Chief Financial Officer
Phone: (416) 340-6015
Rob Dorran Vice President, Investor Relations and Treasurer
Phone: (416) 340-6003
Toll Free: 1-866-490-PLUS (7587)
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