NEW YORK--(BUSINESS WIRE)--Hess Corporation (NYSE: HES) today announced a significant oil discovery on the Stabroek Block offshore Guyana at Whiptail. The Whiptail-1 well encountered 246 feet (75 meters) of net pay in high quality oil bearing sandstone reservoirs. Drilling is also ongoing at the Whiptail-2 well, which is located 3 miles northeast of Whiptail-1 and has encountered 167 feet (51 meters) of net pay in high quality oil bearing sandstone reservoirs. Drilling continues at both wells to test deeper targets, and results will be evaluated for future development.
The Whiptail discovery is located approximately 4 miles southeast of the Uaru-1 discovery that was announced in January 2020 and approximately 3 miles west of the Yellowtail field. Whiptail-1 is being drilled in 5,889 feet (1,795 meters) of water by the Stena DrillMAX. Whiptail-2 is currently being drilled in 6,217 feet (1,895 meters) of water by the Noble Don Taylor.
CEO John Hess said: “Whiptail is a significant new oil discovery that will add to the discovered recoverable resource estimate of approximately 9 billion barrels of oil equivalent and could underpin a future oil development in the southeast area of the Stabroek Block.”
The Liza Destiny FPSO is currently producing about 120,000 gross barrels of oil per day. Startup of Liza Phase 2 remains on target for early 2022 utilizing the Liza Unity FPSO with production capacity of approximately 220,000 gross barrels of oil per day. The Unity is expected to sail from Singapore to Guyana in late August.
A third development at the Payara Field was sanctioned in September 2020 that will utilize the Prosperity FPSO with production capacity of 220,000 gross barrels of oil per day; first oil is expected in 2024. The first Payara development well was spudded in June 2021, and the offshore SURF installation will begin in the third quarter. The hull for the Prosperity FPSO is complete, and topsides construction activities are underway in Singapore.
A fourth development, Yellowtail, is planned with anticipated startup in 2025, pending government approvals and project sanctioning. This project will develop the Yellowtail and Redtail fields, which are located approximately 19 miles (30 kilometers) southeast of the Liza developments, and potentially adjacent resources.
The Stabroek Block is 6.6 million acres. ExxonMobil affiliate Esso Exploration and Production Guyana Limited is operator and holds 45 percent interest in the Stabroek Block. Hess Guyana Exploration Ltd. holds 30 percent interest and CNOOC Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds 25 percent interest.
Hess Corporation is a leading global independent energy company engaged in the exploration and production of crude oil and natural gas. More information on Hess Corporation is available at http://www.hess.com.
Cautionary Statements
This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Words such as “anticipate,” “estimate,” “expect,” “forecast,” “guidance,” “could,” “may,” “should,” “would,” “believe,” “intend,” “project,” “plan,” “predict,” “will,” “target” and similar expressions identify forward-looking statements, which are not historical in nature. Our forward-looking statements may include, without limitation, the expected number, timing and completion of our development projects and estimates of capital and operating costs for these projects; estimates of our crude oil and natural gas resources and levels of production; and our future financial and operational results. Forward-looking statements are based on our current understanding, assessments, estimates and projections of relevant factors and reasonable assumptions about the future. Forward-looking statements are subject to certain known and unknown risks and uncertainties that could cause actual results to differ materially from our historical experience and our current projections or expectations of future results expressed or implied by these forward-looking statements. The following important factors could cause actual results to differ materially from those in our forward-looking statements: fluctuations in market prices or demand for crude oil, NGLs and natural gas, including due to the global COVID-19 pandemic or the outbreak of any other public health threat, or due to the impact of competing or alternative energy products and political conditions and events; potential failures or delays in increasing oil and gas reserves and in achieving expected production levels, including as a result of unsuccessful exploration activity, drilling risks and unforeseen reservoir conditions; inherent uncertainties in estimating quantities of proved reserves and resources; changes in laws, regulations and governmental actions applicable to our business, including legislative and regulatory initiatives regarding environmental concerns, such as measures to limit greenhouse gas emissions and flaring; the ability of our contractual counterparties to satisfy their obligations to us, including the operation of joint ventures which we may not control; unexpected changes in technical requirements for constructing, modifying or operating exploration and production facilities and/or the inability to timely obtain or maintain necessary permits; potential disruption or interruption of our operations due to catastrophic events, including the global COVID-19 pandemic; and other factors described in Item 1A—Risk Factors in our Annual Report on Form 10-K and any additional risks described in our other filings with the Securities and Exchange Commission. As and when made, we believe that our forward-looking statements are reasonable. However, given these risks and uncertainties, caution should be taken not to place undue reliance on any such forward-looking statements since such statements speak only as of the date when made and there can be no assurance that such forward-looking statements will occur and actual results may differ materially from those contained in any forward-looking statement we make. Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events or otherwise.
We use certain terms in this release relating to resources other than proved reserves, such as unproved reserves or resources. Investors are urged to consider closely the oil and gas disclosures in Hess Corporation’s Form 10-K, File No. 1-1204, available from Hess Corporation, 1185 Avenue of the Americas, New York, New York 10036 c/o Corporate Secretary and on our website at www.hess.com. You can also obtain this form from the SEC on the EDGAR system.
Investor Contact:
Jay Wilson
(212) 536-8940
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Media Contact:
Lorrie Hecker
(212) 536-8250
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Advent’s Systems Can Result in Fast Decarbonization of the Oil and Gas Industry
BOSTON--(BUSINESS WIRE)--Advent Technologies Holdings, Inc. (NASDAQ: ADN) (“Advent” or the “Company”), an innovation-driven leader in the fuel cell and hydrogen technology space, today announced the launch of the M-ZERØ™ family of products.
The Advent M-ZERØ™ products, designed specifically to generate power in remote environments, will offer the ability to drop methane emissions to effectively zero where they replace methane polluting pneumatic injection technology. The overall methane emissions related to wellheads approaches 40 million tons of carbon dioxide emissions per year, which is equivalent to the carbon footprint of more than eight million passenger cars. M-ZERØ™ will initially be featured mainly in Canada and the United States with the aim of providing remote power to up to 185,000 oil and gas wellheads.
In the winter, fuel cell systems are expected to operate at extreme freezing temperatures, powering the electronic injection of methanol (process power) and the Supervisory Control and Data Acquisition (“SCADA”) monitoring hardware of each wellhead. Until now, remote wellheads have relied on a pneumatic injection of methanol -- a process that vents approximately six tons of methane per wellhead per year.
The family of products includes the M-ZERØ™ 50W and 150W models with plans for power levels up to 400W by the end of 2022. Advent has additional plans, pending the closing of the acquisition referenced below, to develop alongside Serenergy A/S ("SerEnergy") an M-ZERØ™ 5kW fuel cell system to be rolled out in 2022. The M-ZERØ™ 50-400 systems include advanced features from Advent’s subsidiary UltraCell’s new Reformed Methanol Fuel Cell (“RMFC”) technology, which allows the system to run on methanol. Methanol is used in the oil and gas industry as a gas line antifreeze and is already available at each wellhead.
As the oil and gas industry continues to move to cleaner energy solutions, demand is increasing for electric systems and sensors to help drive down methane emissions, increase well productivity and safety, and decrease maintenance costs. Advent’s M-ZERØ™ solution will help the industry align with Canada’s 2025 target to cut emissions by 40 – 45% from 2012 levels. In addition, by 2023, all wellhead controllers must be non-emitting or low bleed and emit less than six standard cubic feet per hour (“SCFH”), or vent gas that is captured and combusted (including 100% of new wellhead controllers non-emitting in British Columbia and 90% of new wellhead controllers non-emitting in Alberta).
Meeting these requirements poses challenges for Canada’s oil and gas industry, especially as onshore drilling continues to grow in off-the-grid, remote areas. These efforts become even more challenging due to the fact that the standard solar-plus-battery storage solution does not perform well either in freezing conditions or in hard-to-reach areas, including mountains and forested regions.
Advent’s fuel-cell generators guarantee power to well sites year-round – offering a perfect “Any Fuel. Anywhere.” solution. The M-ZERØ™ fuel cells can work throughout the year, including during the winter (when temperatures can drop to -40oC), and only need to be refueled as infrequently as once a year.
Advent’s Chairman and CEO Dr. Vasilis Gregoriou noted, “The M-ZERØ™ family of products has shown the value of Advent’s flexible "Any Fuel. Anywhere." option. Our technology provides constant remote power in hard-to-reach locations with extreme conditions where batteries have simply failed. We are especially proud of the potential of this solution to drive methane emissions to zero in the oil and gas industry and move towards our goal of a cleaner world. Our remote power solutions are a real game changer for the oil and gas industry and the global market of off-grid power.”
Advent estimates that the global market for fuel cell solutions in oil and gas wellheads has the potential to be a substantial growth market, with a significant part of the opportunity in North America. Advent expects to expand its remote power generation solutions for wellheads, mines, telecom towers, construction sites and other critical infrastructure remote locations with the addition, upon the acquisition’s closing, of SerEnergy’s 5kW fuel cell systems based on the same high-temperature polymer electrolyte membrane (“HT-PEM”) technology.
The next key step in bringing fuel cells to well sites includes agreements to trial 10 50W systems in Alberta with oil and gas companies, with an initial deployment in Canada by October 2021 and mass deployment by 2022-2023.
Advent entered into a definitive agreement late June to acquire the fuel cell systems businesses of fischer Group, including SerEnergy, based in Aalborg, Denmark, and fischer eco solutions GmbH, (“FES”), based in Achern, Germany. SerEnergy is a leading manufacturer of HT-PEM fuel cells globally, with thousands of systems shipped around the world. FES provides fuel-cell stack assembly and testing as well as the production of critical fuel cell components, including membrane electrode assemblies (“MEAs”), bipolar plates, and reformers. The transaction, pending regulatory approval and standard closing conditions, is expected to accelerate the implementation of Advent’s business plan and to expand the company’s growing revenue base in full fuel cell stacks and systems.
The Advent Solution allows for the below key benefits:
Advantages that fuel cells bring to well sites:
About Advent Technologies Holdings, Inc.
Advent Technologies Holdings, Inc. is a US corporation that develops, manufactures, and assembles critical components for fuel cells and advanced energy systems in the renewable energy sector. Advent is headquartered in Boston, Massachusetts, with offices in the San Francisco Bay Area and Europe. With 120-plus patents issued (or pending) for its fuel cell technology, Advent holds the IP for next-generation high-temperature proton exchange membranes (HT-PEM) that enable various fuels to function at high temperatures under extreme conditions – offering a flexible "Any Fuel. Anywhere." option for the automotive, maritime, aviation, and power generation sectors. For more information, visit www.Advent.energy.
Cautionary Note Regarding Forward-Looking Statements
This press release includes forward-looking statements. These forward-looking statements generally can be identified by the use of words such as “anticipate,” “expect,” “plan,” “could,” “may,” “will,” “believe,” “estimate,” “forecast,” “goal,” “project,” and other words of similar meaning. Each forward-looking statement contained in this press release is subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statement. Applicable risks and uncertainties include, among others, the Company’s ability to realize the benefits from the business combination; the Company’s ability to maintain the listing of the Company’s common stock on Nasdaq; future financial performance; public securities’ potential liquidity and trading; impact from the outcome of any known and unknown litigation; ability to forecast and maintain an adequate rate of revenue growth and appropriately plan its expenses; expectations regarding future expenditures; future mix of revenue and effect on gross margins; attraction and retention of qualified directors, officers, employees and key personnel; ability to compete effectively in a competitive industry; ability to protect and enhance our corporate reputation and brand; expectations concerning our relationships and actions with our technology partners and other third parties; impact from future regulatory, judicial and legislative changes to the industry; ability to locate and acquire complementary technologies or services and integrate those into the Company’s business; future arrangements with, or investments in, other entities or associations; and intense competition and competitive pressure from other companies worldwide in the industries in which the Company will operate; and the risks identified under the heading “Risk Factors” in our Annual Report on Form 10-K/A filed with the Securities and Exchange Commission on May 20, 2021, as well as the other information we file with the SEC. We caution investors not to place considerable reliance on the forward-looking statements contained in this press release. You are encouraged to read our filings with the SEC, available at www.sec.gov, for a discussion of these and other risks and uncertainties. The forward-looking statements in this press release speak only as of the date of this document, and we undertake no obligation to update or revise any of these statements. Our business is subject to substantial risks and uncertainties, including those referenced above. Investors, potential investors, and others should give careful consideration to these risks and uncertainties.
Advent Technologies Holdings, Inc.
Elisabeth Maragoula
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HOUSTON--(BUSINESS WIRE)--Hess Midstream LP (NYSE: HESM) (“Hess Midstream”), today announced that the Board of Directors of its general partner (the “Board”) approved an approximate 11% increase in its quarterly distribution per Class A share for the second quarter of 2021 as compared to the first quarter of 2021. This increase consists of a 10% immediate increase in Hess Midstream’s distribution level per Class A share in addition to its targeted 5% annualized increase in distributions per Class A share. The Board also approved a $750 million unit repurchase by Hess Midstream’s subsidiary, Hess Midstream Operations LP, from affiliates of Hess Corporation and Global Infrastructure Partners, Hess Midstream’s sponsors, at a price of $24.00 per unit.
“With this announcement, we are demonstrating our financial flexibility to deliver immediate, accretive and meaningful return of capital to our shareholders,” said Jonathan Stein, Chief Financial Officer of Hess Midstream. “The unit repurchase optimizes our capital structure to our conservative 3.0x Debt/Adjusted EBITDA target by providing accretion to shareholders, while the distribution increase returns free cash flow to our shareholders on an ongoing basis while maintaining 1.4x coverage. Following the distribution increase and the unit repurchase, we expect to continue to have financial flexibility, including expected ongoing free cash flow after distributions and leverage declining below our 3.0x Debt/Adjusted EBITDA target as early as 2022, allowing for potential future accretive opportunities, including incremental return of capital to shareholders.”
The distribution increase represents an increase in distributions per Class A share by 10% relative to previously targeted distributions. The $750 million unit repurchase is consistent with Hess Midstream’s targeted 3.0x Debt / Adjusted EBITDA level on a full-year 2021 basis and is expected to be approximately 8% accretive on a distributable cash flow per Class A share basis. The unit repurchase is expected to result in distribution savings to Hess Midstream of approximately $30 million in the second half of 2021 on a consolidated basis.
Distribution Increase Summary
The Board declared a quarterly cash distribution of $0.5042 per Class A share for the quarter ended June 30, 2021. The distribution represents an approximate 11% increase compared to the distribution for the first quarter of 2021, consisting of a 10% announced increase in addition to a quarterly increase consistent with Hess Midstream’s targeted 5% growth in annual distributions per Class A share.
Hess Midstream continues to target annual distribution per Class A share growth of at least 5% through 2023 from this new higher level and expected annual distribution coverage of greater than 1.4x.
The quarterly distribution will be payable on August 13, 2021 to Class A shareholders of record as of the close of business on August 9, 2021.
Unit Repurchase Summary
Hess Midstream Operations LP, Hess Midstream’s consolidated subsidiary, agreed to repurchase approximately 31 million Class B units of Hess Midstream Operations LP, equal to approximately 11% of the consolidated company, held by affiliates of Hess Corporation and Global Infrastructure Partners for an aggregate purchase price of $750 million. The purchase price per Class B unit is $24.00, representing an approximate 4% discount to the 30-day volume weighted average trading price of Hess Midstream Class A shares through July 27, 2021. As a result of the unit repurchase transaction, public ownership of Hess Midstream on a consolidated basis will increase to approximately 9.5%. The terms of the proposed unit repurchase transaction was unanimously approved by the Board, based on the approval and recommendation of its conflicts committee composed solely of independent directors. The unit repurchase is anticipated to close in August 2021, following the record date for the quarterly distribution for the quarter ended June 30, 2021, such that Sponsors will receive the quarterly distribution on their currently outstanding Class B units. Hess Midstream expects to fund the unit repurchase through debt financing.
About Hess Midstream
Hess Midstream LP is a fee-based, growth-oriented midstream company that operates, develops and acquires a diverse set of midstream assets to provide services to Hess Corporation and third-party customers. Hess Midstream owns oil, gas and produced water handling assets that are primarily located in the Bakken and Three Forks Shale plays in the Williston Basin area of North Dakota. More information is available at www.hessmidstream.com.
Cautionary Note Regarding Forward-looking Information
This press release contains “forward-looking statements” within the meaning of U.S. federal securities laws. Words such as “anticipate,” “estimate,” “expect,” “forecast,” “guidance,” “could,” “may,” “should,” “would,” “believe,” “intend,” “project,” “plan,” “predict,” “will,” “target” and similar expressions identify forward-looking statements, which are not historical in nature. Our forward-looking statements may include, without limitation: our future financial and operational results, including our ability to increase our distributions or achieve our targeted distribution growth rate or reduce leverage below our debt/Adjusted EBITDA target; our business strategy and profitability; the expected timing and completion of the Class B unit repurchase from Hess and GIP; and our ability to execute future accretive opportunities, including incremental return of capital to shareholders.
Forward-looking statements are based on our current understanding, assessments, estimates and projections of relevant factors and reasonable assumptions about the future. Forward-looking statements are subject to certain known and unknown risks and uncertainties that could cause actual results to differ materially from our historical experience and our current projections or expectations of future results expressed or implied by these forward-looking statements. The following important factors could cause actual results to differ materially from those in our forward-looking statements: the direct and indirect effects of the COVID-19 global pandemic and other public health developments on our business and those of our business partners, suppliers and customers, including Hess; the ability of Hess and other parties to satisfy their obligations to us, including Hess’ ability to meet its drilling and development plans on a timely basis or at all and the operation of joint ventures that we may not control; our ability to generate sufficient cash flow to pay current and expected levels of distributions; reductions in the volumes of crude oil, natural gas, natural gas liquids (“NGLs”) and produced water we gather, process, terminal or store; fluctuations in the prices and demand for crude oil, natural gas and NGLs, including as a result of the COVID-19 global pandemic; changes in global economic conditions and the effects of a global economic downturn on our business and the business of our suppliers, customers, business partners and lenders; our ability to comply with government regulations or make capital expenditures required to maintain compliance, including our ability to obtain or maintain permits necessary for capital projects in a timely manner, if at all, or the revocation or modification of existing permits; our ability to successfully identify, evaluate and timely execute our capital projects, investment opportunities and growth strategies, whether through organic growth or acquisitions; our ability to satisfy the closing conditions of the Class B unit repurchase, including obtaining necessary debt financing; costs or liabilities associated with federal, state and local laws, regulations and governmental actions applicable to our business, including legislation and regulatory initiatives relating to environmental protection and safety, such as spills, releases, pipeline integrity and measures to limit greenhouse gas emissions; our ability to comply with the terms of our credit facility, indebtedness and other financing arrangements, which, if accelerated, we may not be able to repay; reduced demand for our midstream services, including the impact of weather or the availability of the competing third-party midstream gathering, processing and transportation operations; potential disruption or interruption of our business due to catastrophic events, such as accidents, severe weather events, labor disputes, information technology failures, constraints or disruptions and cyber-attacks; any limitations on our ability to access debt or capital markets on terms that we deem acceptable, including as a result of weakness in the oil and gas industry or negative outcomes within commodity and financial markets; liability resulting from litigation; and other factors described in Item 1A—Risk Factors in our Annual Report on Form 10-K and any additional risks described in our other filings with the Securities and Exchange Commission.
As and when made, we believe that our forward-looking statements are reasonable. However, given these risks and uncertainties, caution should be taken not to place undue reliance on any such forward-looking statements since such statements speak only as of the date when made and there can be no assurance that such forward-looking statements will occur and actual results may differ materially from those contained in any forward-looking statement we make. Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events or otherwise.
Non-GAAP Measures
In addition to our financial information presented in accordance with U.S. generally accepted accounting principles (“GAAP”), management utilizes certain additional non GAAP measures to facilitate comparisons of past performance and future periods. “Adjusted EBITDA” presented in this release is defined as reported net income (loss) before net interest expense, income tax expense, depreciation and amortization and our proportional share of depreciation of our equity affiliates, as further adjusted to eliminate the impact of certain items that we do not consider indicative of our ongoing operating performance, such as transaction costs, other income and other non-cash, non-recurring items, if applicable. “Distributable cash flow” or “DCF” is defined as Adjusted EBITDA less net interest, excluding amortization of deferred financing costs, cash paid for federal and state income taxes and maintenance capital expenditures. DCF does not reflect changes in working capital balances. We believe that investors’ understanding of our performance is enhanced by disclosing these measures as they may assist in assessing our operating performance as compared to other publicly traded companies in the midstream energy industry, without regard to historical cost basis or, in the case of Adjusted EBITDA, financing methods, and assessing the ability of our assets to generate sufficient cash flow to make distributions to our shareholders. These measures are not, and should not be viewed as, a substitute for GAAP net income or cash flow from operating activities and should not be considered in isolation.
Investor Contact:
Jennifer Gordon
(212) 536-8244
Media Contact:
Robert Young
(346) 319 8783
Seasoned Global Commercial Executive to Spearhead Company’s Expansion in Asian Markets
TORONTO--(BUSINESS WIRE)--Li-Cycle Corp. ("Li-Cycle" or "the Company"), an industry leader in lithium-ion battery resource recovery and the leading lithium-ion battery recycler in North America, today announced the appointment of Dawei Li to the role of VP of Asia, effective immediately. Focused on the Asian market, Mr. Li will oversee Li-Cycle’s team, business development, and commercial lithium-ion battery recycling facility rollout across the continent.
Mr. Li brings more than 15 years of experience in strategy development and leading growth in untapped markets at international companies to his role at Li-Cycle. He joins Li-Cycle at a critical inflection point as the Company approaches its debut as a publicly traded company in the U.S. and expands its operations into Asia, in addition to other regions around the globe. Mr. Li reports directly to Li-Cycle co-founder and Chief Executive Officer, Ajay Kochhar.
"The Asian lithium-ion battery market is the world’s largest, presenting a considerable supply of battery manufacturing scrap as well as lithium-ion batteries that are approaching their end-of-life and will need to be recycled,” said Mr. Kochhar, Li-Cycle’s CEO. “I am excited to welcome Mr. Li to Li-Cycle as he will play a major role in our global growth plans by spearheading our expansion in Asia. Asia is one of the key components of our broader global rollout plan over the next five years and beyond.”
“Li-Cycle’s leadership, commercial technology, and vision are all best-in-class and I am thrilled to be in a position to make a significant, positive impact on a Company that is poised to rapidly deploy its capabilities,” said Mr. Li. “I have a keen understanding of the Asian market’s landscape and plan on leveraging my experience with directing global teams to facilitate Li-Cycle’s expansion in a region that is experiencing prolific growth of electrification and lithium-ion batteries.”
Prior to joining Li-Cycle, Mr. Li served as the Global Business Director for Lithium Carbonate at the Albemarle Corporation, where he developed the battery grade strategy and executed on business development plans in key regions resulting in robust performance. Previously, Mr. Li was a Global Segment Marketing Manager for Eastman Chemical Company leading corporate growth initiatives and launching efforts to generate demand for existing products while commercializing novel ones. Mr. Li began his career in Shanghai, China working for PwC.
Mr. Li holds his BBA in Marketing from Shanghai University of Finance and Economics and an MBA from the Darden School of Business at the University of Virginia.
About Li-Cycle Corp.
Li-Cycle is on a mission to leverage its innovative Spoke & Hub Technologies™ to provide a customer-centric, end-of-life solution for lithium-ion batteries, while creating a secondary supply of critical battery materials. Lithium-ion rechargeable batteries are increasingly powering our world in automotive, energy storage, consumer electronics, and other industrial and household applications. The world needs improved technology and supply chain innovations to better manage battery manufacturing waste and end-of-life batteries and to meet the rapidly growing demand for critical and scarce battery-grade raw materials through a closed-loop solution. For more information, visit https://li-cycle.com/.
On February 16, 2021, Li-Cycle announced its entry into a definitive business combination agreement with Peridot Acquisition Corp. (NYSE: PDAC) ("Peridot"). Upon the closing of the business combination, which is expected in the third quarter of 2021, the combined company will be named Li-Cycle Holdings Corp.
ADDITIONAL INFORMATION AND WHERE TO FIND IT
In connection with the proposed transaction involving Li-Cycle and Peridot, Li-Cycle Holdings Corp. ("Newco") has prepared and filed with the SEC a registration statement on Form F-4 that includes both a prospectus of Newco and a proxy statement of Peridot (the "Proxy Statement/Prospectus"). Once effective, Peridot will mail the Proxy Statement/Prospectus to its shareholders and file other documents regarding the proposed transaction with the SEC. This communication is not a substitute for any proxy statement, registration statement, proxy statement/prospectus or other documents Peridot or Newco may file with the SEC in connection with the proposed transaction. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ CAREFULLY AND IN THEIR ENTIRETY THE PROXY STATEMENT/PROSPECTUS WHEN IT BECOMES AVAILABLE, ANY AMENDMENTS OR SUPPLEMENTS TO THE PROXY STATEMENT/PROSPECTUS, AND OTHER DOCUMENTS FILED BY PERIDOT OR NEWCO WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTION BECAUSE THESE DOCUMENTS WILL CONTAIN IMPORTANT INFORMATION. Investors and security holders will be able to obtain free copies of the Proxy Statement/Prospectus and other documents filed with the SEC by Peridot or Newco through the website maintained by the SEC at www.sec.gov.
Investors and securityholders will also be able to obtain free copies of the documents filed by Peridot and/or Newco with the SEC on Peridot's website at www.peridotspac.com or by emailing This email address is being protected from spambots. You need JavaScript enabled to view it..
PARTICIPANTS IN THE SOLICITATION
Li-Cycle, Peridot, Newco, and certain of their respective directors, executive officers and employees may be deemed to be participants in the solicitation of proxies in connection with the proposed transaction. Information regarding the persons who may, under the rules of the SEC, be deemed participants in the solicitation of proxies in connection with the proposed transaction, including a description of their direct or indirect interests, by security holdings or otherwise, is set forth in the Proxy Statement/Prospectus. Information regarding the directors and executive officers of Peridot is contained in Peridot's Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on March 26, 2021 and certain of its Current Reports filed on Form 8-K. These documents can be obtained free of charge from the sources indicated above.
NO OFFER OR SOLICITATION
This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities of Peridot or Newco or a solicitation of any vote or approval. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
Certain statements contained in this communication may be considered forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21 of the Securities Exchange Act of 1934, as amended, including statements regarding the proposed transaction involving Li-Cycle and Peridot and the ability to consummate the proposed transaction. Forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as "may," "will," “should,” “would,” “expect,” “anticipate,” “plan,” “likely”, “believe,” “estimate,” “project,” “intend,” and other similar expressions among others. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties and are not guarantees of future performance. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors, including, without limitation: (i) the risk that the conditions to the closing of the proposed transaction are not satisfied, including the failure to timely or at all obtain shareholder approval for the proposed transaction or the failure to timely or at all obtain any required regulatory clearances, including under the Hart-Scott Rodino Antitrust Improvements Act; (ii) uncertainties as to the timing of the consummation of the proposed transaction and the ability of each of Li-Cycle and Peridot to consummate the proposed transaction; (iii) the possibility that other anticipated benefits of the proposed transaction will not be realized, and the anticipated tax treatment of the combination; (iv) the occurrence of any event that could give rise to termination of the proposed transaction; (v) the risk that stockholder litigation in connection with the proposed transaction or other settlements or investigations may affect the timing or occurrence of the proposed transaction or result in significant costs of defense, indemnification and liability; (vi) changes in general economic and/or industry specific conditions; (vii) possible disruptions from the proposed transaction that could harm Li-Cycle’s business; (viii) the ability of Li-Cycle to retain, attract and hire key personnel; (ix) potential adverse reactions or changes to relationships with customers, employees, suppliers or other parties resulting from the announcement or completion of the proposed transaction; (x) potential business uncertainty, including changes to existing business relationships, during the pendency of the proposed transaction that could affect Li-Cycle’s financial performance; (xi) legislative, regulatory and economic developments; (xii) unpredictability and severity of catastrophic events, including, but not limited to, acts of terrorism, outbreak of war or hostilities and any epidemic, pandemic or disease outbreak (including COVID-19), as well as management’s response to any of the aforementioned factors; and (xiii) other risk factors as detailed from time to time in Peridot’s reports filed with the SEC, including Peridot’s annual report on Form 10-K, periodic quarterly reports on Form 10-Q, periodic current reports on Form 8-K and other documents filed with the SEC. The foregoing list of important factors is not exclusive. Neither Li-Cycle nor Peridot can give any assurance that the conditions to the proposed transaction will be satisfied. Except as required by applicable law, neither Li-Cycle nor Peridot undertakes any obligation to revise or update any forward-looking statement, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.
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PARIS & ARNHEM, the Netherlands & NEW YORK--(BUSINESS WIRE)--Allego Holding B.V. (“Allego” or “the “Company”), a leading pan-European electric vehicle charging network, today announced a business combination with Spartan Acquisition Corp. III (“Spartan”) (NYSE: SPAQ), a publicly-listed special purpose acquisition company. The transaction will create a leading publicly traded pan-European electric vehicle (EV) charging company.
Upon completion of the proposed transaction, the combined company will operate under the Allego name, and will be listed on the New York Stock Exchange under the ticker symbol “ALLG”. The transaction values Allego at a pro forma equity value of approximately $3.14 billion. Expected total gross proceeds of $702 million will fund the Company’s future growth through the deployment of additional public EV charging sites, as it focuses on delivering fast and ultra-fast chargers and continues to build its technology moat.
Overview of Allego
Founded in 2013, Allego is a leading electric vehicle, or EV, charging company in Europe and has deployed over 26,000 charging ports across 12,000 public and private locations, spanning 12 European countries. In 2018, the Company was acquired by Meridiam, a global long-term sustainable infrastructure developer and investor, which provided necessary capital to enable the expansion of Allego’s existing global network, services and technologies. The Company’s charging network includes fast, ultra-fast, and AC charging equipment. The Company takes a two-pronged approach to delivering charging solutions, providing an owned and operated public charging network with 100% renewable energy in addition to charging solutions for business to business customers, including leading retail and auto brands. The Company’s charging solutions business provides design, installation, operations and maintenance of chargers owned by third parties. Allego’s chargers are open to all EV brands, with the ability to charge light vehicles, vans and e-trucks, which promotes increasing utilization rates across its locations. Allego has developed a rich portfolio of partnerships with strategic partners, including municipalities, more than 50 real estate owners and 15 OEMs. As additional fleets shift to EVs, Allego expects to leverage its expansive network of fast and ultra-fast chargers to service these customers, which see above average use-rates.
Allego’s proprietary suite of software, developed to help identify and assess locations and provide uptime optimization with payment solutions, underpins the Company’s competitive advantage. Allamo™ allows the Company to select premium charging sites to add to its network by analyzing traffic statistics and proprietary databases to forecast EV charging demand using over 100 factors, including local EV density, driving behavior and EV technology development. This allows a predictable, cutting-edge tool to optimize those locations that are best positioned for higher utilization rates.
Allego EV Cloud™ is a sophisticated customer payment tool that provides essential services to owned and third-party customers, including authorization and billing, smart charging and load balancing, analysis and customer support. This service offering is integral to fleet operators’ operations and enables the Company to provide insight and value to the customer, in addition to driving increased margins through third-party service contracts and operational and maintenance margins.
Allego continues to benefit from a European EV market that is nearly twice the size of the United States’ EV market, with an expected 46% CAGR from 2020 to 2025. Based on this projection, the number of EVs in Europe is expected to grow to nearly 20 million by 2025, as compared to 3 million today. The combination of a high urbanization rate and a scarcity of in-home parking means European EV drivers require fast, public EV charging locations that provide reliable and convenient charging. As part of the Company’s expansion plans, Allego will focus on fast and ultra-fast charging locations, which maximize utilization rates, carry higher gross margins and are required for fleet operators and EV drivers.
Additionally, stringent European CO2 regulations for internal combustion engines (ICE) and highly favorable incentives for electric vehicle purchases are expected to continue to drive adoption rates of EV over ICE vehicles. With a first mover advantage, a robust pipeline of over 500 committed premium sites to be equipped with fast and ultra-fast chargers, and an additional pipeline of another 500 sites, the Company is well positioned to execute its growth objectives and drive value creation for shareholders.
Through a diverse set of partnerships with leading OEMs, fleets, corporations, municipalities, and hosts, the Company has delivered significant revenue growth in recent years, including a 100% revenue CAGR from 2017-2020, and achieved positive operational EBITDA2 at the end of 2020.
Management Commentary
Mathieu Bonnet, Chief Executive Officer of Allego, commented, “We are excited to announce our strategic partnership with Spartan, which will provide capital to accelerate our leadership position within the European charging market, all while maintaining a strong financial position throughout the growth phase. Europe has one of the largest populations of EVs in the world, which is continuing to grow at a greater pace than many other major growth markets, including the United States. Supported by these tailwinds and bolstered by the capital we are raising, we are well positioned to expand our footprint as EVs increasingly replace traditional internal combustion engines.”
Olivia Wassenaar, Director of Spartan and Senior Partner and Co-Lead of Natural Resources at Apollo Global Management, Inc. (“Apollo”) added, “At Spartan and Apollo, we are committed to advancing ESG-focused business models. We are excited to work with Allego as they execute against their compelling pipeline of growth opportunities and help eliminate emissions from the environment.”
Geoffrey Strong, Chairman and Chief Executive Officer of Spartan and Senior Partner and Co-Lead of Infrastructure and Natural Resources at Apollo added, “We are excited to work together with Mathieu, Meridiam and the entire Allego team. We believe Europe is an extremely attractive market for EV charging and Allego is well-positioned to capitalize on its innovative technology, a strong leadership position in Europe, and supportive macro trends buoying the EV charging market.”
Transaction Summary
The business combination values Allego at an implied $3.14 billion pro forma equity value. The combined company is expected to receive approximately $702 million of gross proceeds from a combination of a fully committed common stock PIPE offering of $150 million at $10.00 per share, along with approximately $552 million of cash held in trust, assuming no redemptions. The proceeds from the business combination will be used to fund EV station capex and for general corporate purposes.
Fisker, designer of advanced sustainable electric vehicles and mobility solutions, will make a $10 million private investment in the PIPE. Fisker is the exclusive electric vehicle automaker in the PIPE and, in parallel, has agreed to terms on a strategic partnership to deliver a range of charging options for its customers in Europe.
The PIPE is anchored by additional strategic partners, including Landis+Gyr, as well as institutional investors, including funds and accounts managed by Hedosophia and ECP. Investment funds managed by affiliates of Apollo Global Management, Inc., which own the sponsor behind Spartan, and by Meridiam, as long-term owner of Allego, also participated in the PIPE.
The boards of directors of both Allego and Spartan have unanimously approved the proposed business combination, which is expected to be completed in the fourth quarter of 2021 subject to, among other things, the approval by Spartan stockholders and the satisfaction or waiver of other customary closing conditions.
Meridiam, the existing shareholder of Allego, will roll 100% of its equity and, together with management and former advisors, will retain 75% of the combined entity. Meridiam will continue to be a long-term strategic partner to the combined company. Additionally, the European Investment Bank will maintain its role as capital provider to Allego.
Additional information about the proposed transaction, including a copy of the business combination agreement and investor presentation, will be provided in a Current Report on Form 8-K to be filed by Spartan today with the Securities and Exchange Commission and will be available at www.sec.gov.
Advisors
Credit Suisse is serving as sole financial advisor and capital markets advisor to Allego. Weil, Gotshal & Manges LLP and NautaDutilh are serving as legal advisors to Allego. Barclays is serving as sole financial advisor and capital markets advisor to Spartan. Credit Suisse and Barclays are serving as co-lead placement agent on the PIPE offering. Citi and Apollo Global Securities are serving as co-placement agents. Vinson & Elkins L.L.P. is serving as legal advisor to Spartan. Latham & Watkins LLP is serving as legal advisor to the placement agents.
Webcast and Conference Call Information
Allego and Spartan will host a joint investor conference call to discuss the business and the proposed transaction today, July 28, 2021 at 8:30 AM ET.
To listen to the conference call via telephone dial (877) 407-9716 (U.S.) or (201) 493-6779 (international callers/U.S. toll) and enter the conference ID number 13722064. To listen to the webcast, please click here. A telephone replay will be available until Wednesday, August 11, 2021 at (844) 512-2921 and Conference ID number 13722064.
About Allego
Allego delivers charging solutions for electric cars, motors, buses and trucks, for consumers, businesses and cities. Allego’s end-to-end charging solutions make it easier for businesses and cities to deliver the infrastructure drivers need, while the scalability of our solutions makes us the partner of the future. Founded in 2013, Allego is a leader in charging solutions, with an international charging network comprised of more than 26,000 charge points operational throughout Europe – and growing rapidly. Our charging solutions are connected to our proprietary platform, EV-Cloud, which gives us and our customers a full portfolio of features and services to meet and exceed market demands. We are committed to providing independent, reliable and safe charging solutions, agnostic of vehicle model or network affiliation. At Allego, we strive every day to make EV charging easier, more convenient and more enjoyable for all.
About Spartan Acquisition Corp. III
Spartan Acquisition Corp. III is a special purpose acquisition entity focused on the energy value-chain and was formed for the purpose of entering into a merger, amalgamation, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. Spartan is sponsored by Spartan Acquisition Sponsor III LLC, which is owned by a private investment fund managed by an affiliate of Apollo Global Management, Inc. (NYSE: APO). For more information, please visit www.spartanspaciii.com.
Forward-Looking Statements.
This communication includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Spartan Acquisition Corp. III’s (“Spartan”) and Allego Holding B.V.’s, a Dutch private limited liability company (“Allego”), actual results may differ from their expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions (or the negative versions of such words or expressions) are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, Spartan’s and Allego’s expectations with respect to future performance and anticipated financial impacts of the proposed business combination, the satisfaction or waiver of the closing conditions to the proposed business combination, and the timing of the completion of the proposed business combination.
These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially, and potentially adversely, from those expressed or implied in the forward-looking statements. Most of these factors are outside Spartan’s and Allego’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: (i) the occurrence of any event, change, or other circumstances that could give rise to the termination of the Business Combination Agreement and Plan of Reorganization (the “BCA”); (ii) the outcome of any legal proceedings that may be instituted against Athena Pubco B.V., a Dutch limited liability company (the “Company”) and/or Allego following the announcement of the BCA and the transactions contemplated therein; (iii) the inability to complete the proposed business combination, including due to failure to obtain approval of the stockholders of Spartan, certain regulatory approvals, or the satisfaction of other conditions to closing in the BCA; (iv) the occurrence of any event, change, or other circumstance that could give rise to the termination of the BCA or could otherwise cause the transaction to fail to close; (v) the impact of the COVID-19 pandemic on Allego’s business and/or the ability of the parties to complete the proposed business combination; (vi) the inability to obtain or maintain the listing of the Company’s common shares on the New York Stock Exchange following the proposed business combination; (vii) the risk that the proposed business combination disrupts current plans and operations as a result of the announcement and consummation of the proposed business combination; (viii) the ability to recognize the anticipated benefits of the proposed business combination, which may be affected by, among other things, competition, the ability of Allego to grow and manage growth profitably, and to retain its key employees; (ix) costs related to the proposed business combination; (x) changes in applicable laws or regulations; and (xi) the possibility that Allego, Spartan or the Company may be adversely affected by other economic, business, and/or competitive factors. The foregoing list of factors is not exclusive. Additional information concerning certain of these and other risk factors is contained in Spartan’s most recent filings with the SEC and will be contained in the registration statement on Form F-4 (the “Form F-4”), including the proxy statement/prospectus forming a part thereof expected to be filed in connection with the proposed business combination. All subsequent written and oral forward-looking statements concerning Spartan, Allego or the Company, the transactions described herein or other matters and attributable to Spartan, Allego, the Company or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements above. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Each of Spartan, Allego and the Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in their expectations with respect thereto or any change in events, conditions, or circumstances on which any statement is based, except as required by law.
No Offer or Solicitation.
This communication is not a proxy statement or solicitation of a proxy, consent, or authorization with respect to any securities or in respect of the proposed business combination and shall not constitute an offer to sell or a solicitation of an offer to buy the securities of Spartan, the Company or Allego, nor shall there be any sale of any such securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended, or exemptions therefrom.
Important Information About the Proposed Business Combination and Where to Find It.
In connection with the proposed business combination, a registration statement on Form F-4 is expected to be filed by the Company with the SEC. The Form F-4 will include preliminary and definitive proxy statements to be distributed to holders of Spartan’s common stock in connection with Spartan’s solicitation for proxies for the vote by Spartan’s stockholders in connection with the proposed business combination and other matters as described in the Form F-4, as well as a prospectus of the Company relating to the offer of the securities to be issued in connection with the completion of the business combination. Spartan, Allego and the Company urge investors, stockholders and other interested persons to read, when available, the Form F-4, including the proxy statement/prospectus incorporated by reference therein, as well as other documents filed with the SEC in connection with the proposed business combination, as these materials will contain important information about Allego, Spartan, and the proposed business combination. Such persons can also read Spartan’s final prospectus dated February 8, 2021 (SEC File No. 333-252866), for a description of the security holdings of Spartan’s officers and directors and their respective interests as security holders in the consummation of the proposed business combination. After the Form F-4 has been filed and declared effective, the definitive proxy statement/prospectus will be mailed to Spartan’s stockholders as of a record date to be established for voting on the proposed business combination. Stockholders will also be able to obtain copies of such documents, without charge, once available, at the SEC’s website at www.sec.gov, or by directing a request to: Spartan Acquisition Corp. III, 9 West 57th Street, 43rd Floor, New York, NY 10019, or (212) 515-3200. These documents, once available, can also be obtained, without charge, at the SEC’s web site (http://www.sec.gov).
INVESTMENT IN ANY SECURITIES DESCRIBED HEREIN HAS NOT BEEN APPROVED OR DISAPPROVED BY THE SEC OR ANY OTHER REGULATORY AUTHORITY NOR HAS ANY AUTHORITY PASSED UPON OR ENDORSED THE MERITS OF THE OFFERING OR THE ACCURACY OR ADEQUACY OF THE INFORMATION CONTAINED HEREIN. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
Participants in the Solicitation.
Spartan, Allego, the Company and their respective directors, executive officers and other members of their management and employees, under SEC rules, may be deemed to be participants in the solicitation of proxies of Spartan’s stockholders in connection with the proposed business combination. Investors and security holders may obtain more detailed information regarding the names, affiliations and interests of Spartan’s directors and executive officers in Spartan’s final prospectus dated February 8, 2021 (SEC File No. 333-252866), which was filed with the SEC on February 10, 2021. Information regarding the persons who may, under SEC rules, be deemed participants in the solicitation of proxies of Spartan’s stockholders in connection with the proposed business combination will be set forth in the proxy statement/prospectus for the proposed business combination when available. Information concerning the interests of Spartan’s, the Company’s and Allego’s participants in the solicitation, which may, in some cases, be different than those of Spartan’s, the Company’s and Allego’s equity holders generally, will be set forth in the proxy statement/prospectus relating to the proposed business combination when it becomes available.
1 Gross proceeds; not inclusive of estimated transaction expenses
2 Operational EBITDA means EBITDA further adjusted for reorganization costs, certain business optimization costs, lease buyouts, anticipated board compensation costs and director and officer insurance costs and anticipated transaction costs.
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Sold to Mexico-based FINSA, the $145,500,000 Transaction Signals a Shift from California to Texas as a Desired Point of US Entry
PHILADELPHIA--(BUSINESS WIRE)--#binswanger--Binswanger Commercial Real Estate Services, an innovator in commercial real estate since 1931, today announced that it has secured a buyer for the Oradel Industrial Center located at Bulevar World Trade Center 101 Pte, Parque Industrial Oradel, Nuevo Laredo, Mexico. The property sits less than ten miles from the Gateway to the Americas International Bridge which accounts for 40% of US-Mexican trade –the most trafficked American trade route. FINSA purchased a 2.6 million square foot portion of the park for $145,500,000. The balance of the portfolio, which is four buildings and roughly 500,000 SF, is slated to close by the end of the year with an anticipated value of roughly $50,000,000. Oradel is the largest portfolio sale along the Texas border.
The Binswanger team responsible for the transaction was comprised of five brokers –three from the United States out of Binswanger’s Headquarters in Philadelphia, PA (David Binswanger, Josh Haber, and Jason Kramer), and two from Binswanger Mexico (Luis Manuel Gerard and Karl Binderberger).
“We were extremely pleased to see the level of interest from around the world for this portfolio,” said Josh Haber, Senior Vice President & Partner, Binswanger. “As global corporations rethink their manufacturing and distribution strategies to get products to the customer as quickly and cost-effectively as possible, a portfolio like this garnered significant attention from a variety of multi-national prospective buyers.”
In late 2020, Binswanger was named exclusive agent to market the Oradel Industrial and Rail Park Portfolio. The property consists of 16 Class-A industrial buildings totaling 3,300,000 Square Feet. The complex houses companies from a variety of business sectors including the medical industry (47%), logistics (14%), automotive (14%) and manufacturing (8%). The multi-national tenants include Medline, Caterpillar, and Smurfit Kappa.
“Most deals like this, offering border access to the US market, border California, not Texas,” said Luis Manuel Gerard, Chairman, Binswanger Mexico. “Oradel’s proximity to the NAFTA Highway affords international companies in Mexico more efficient access to customers on the eastern seaboard than California. With its excellent road and rail connections, qualified labor force, and proximity to the US border, Nuevo Laredo is an excellent location to service the US market. FINSA clearly understands the growth potential of Nuevo Laredo.”
Over the last 10 years, Nuevo Laredo has shown constant growth with single-digit vacancy rates and an inventory 13 million square feet at the end of 2020.
Oradel represents one of the most important Class-A industrial properties in Mexico. The nearby border crossing accounts for $324 Billion in annual trade with more than 14,000 trucks and 1,800 rail car crossings each day.
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About Binswanger
Binswanger, a global leader in full-service commercial real estate, has been helping its clients realize their full real estate potential since 1931. Founded by real estate innovator and pioneer, Frank Binswanger Sr., the company operates with the understanding that real estate has the ability to strengthen businesses and transform communities. The company offers a variety of services benefitting both owners and occupiers including global real estate brokerage, location consulting, investment sales, tenant representation, corporate advisory, strategic consulting, and a variety of management services. Having worked with more than half of the Fortune 500, the employee-owned company has long been known as the industry leader in the acquisition and disposition of industrial and commercial facilities around the globe. For more information, please visit www.binswanger.com.
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LOS ANGELES--(BUSINESS WIRE)--#EVs--Fisker Inc. (NYSE: FSR) ("Fisker") – passionate creator of the world's most sustainable electric vehicles and advanced mobility solutions – today announced it will make a $10 million private investment in public equity (PIPE) supporting the planned merger of leading European EV charging network, Allego B.V. (“Allego”) with Spartan Acquisition Corp. III (NYSE: SPAQ), a publicly-listed special purpose acquisition company. Fisker is the exclusive electric vehicle automaker in the PIPE and, in parallel, has agreed to terms on a strategic partnership to deliver a range of charging options for its customers in Europe.
"Allego has been a long-standing pioneer in the push to create a seamless pan-European electric vehicle charging network," said Fisker Chairman and CEO, Henrik Fisker. "Our investment in the PIPE is motivated by strategic and tactical considerations, ensuring we have a stake in the future of EV charging networks while delivering tangible benefits to our customers."
Through the Fisker-Allego partnership announced today, the two companies are collaborating on offering electric vehicle charging and related services across multiple European markets. Included in that partnership is the provision that fleet and private customers buying or leasing a Fisker Ocean SUV between Jan. 1, 2023 and March 31, 2024 will benefit from one year of free charging (from original date of registration) on the Allego network. Further, the two companies are working on future plans to deliver a seamless charging experience for Fisker customers using the Allego ‘Plug & Charge’ service that utilizes the Allego Fast and Ultra-Fast charger network.
“Having Fisker both invest in our PIPE, and at the same time form a commercial partnership is a significant vote of confidence in our growth plans,” said Mathieu Bonnet, CEO of Allego. “Both Fisker and Allego have a common connection through the 'Spartan' franchise of SPACs sponsored by funds managed by affiliates of Apollo Global Management, and I want to recognize the leadership of Geoffrey Strong and his team at Spartan who are constantly creating new investment opportunities across the clean mobility sector.”
Founded in 2013, Allego is a leading EV charging network in Europe and has deployed more than 26,000 charging ports across 12,000 public and private locations, spanning 12 European countries. Allego’s charging network includes fast, ultra-fast and AC charging solutions delivered through either owned or operated public charging networks, in addition to charging solutions for B2B customers. Allego has developed a rich portfolio of partnerships with strategic partners including municipalities, more than 50 real estate owners and more than 15 automakers.
Fisker intends to start production and deliveries on its first vehicle, the Ocean electric SUV, from Nov. 17, 2022 – and unveil a production-intent prototype at the LA Auto Show® later this year. The Fisker Ocean will enter the U.S. market at a starting MSRP of $37,499 (excluding EV-related subsidies) and below €32,000 in Germany (including taxes and EV-related subsidies). Including fleet orders from companies such as Credit Agricole Consumer Finance, Onto and Viggo, Fisker has more than 62,000 hand-raisers and 17,300 paid reservations for the Ocean.
“With this new funding, we are confident that Allego will be well equipped to introduce the most advanced charging technologies, continue to expand their network and be able to deliver a seamless charging experience for our customers,” added Mr. Fisker.
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About Fisker Inc.
California-based Fisker Inc. is revolutionizing the automotive industry by developing the most emotionally desirable and eco-friendly electric vehicles on Earth. Passionately driven by a vision of a clean future for all, the company is on a mission to become the No. 1 e-mobility service provider with the world's most sustainable vehicles. To learn more, visit www.FiskerInc.com – and enjoy exclusive content across Fisker's social media channels: Facebook, Instagram, Twitter, YouTube and LinkedIn.
Download the revolutionary new Fisker mobile app from the App Store or Google Play store.
About Allego
Allego delivers charging solutions for electric cars, motors, buses and trucks, for consumers, businesses and cities. Allego’s end-to-end charging solutions make it easier for businesses and cities to deliver the infrastructure drivers need, while the scalability of our solutions makes us the partner of the future. Founded in 2013, Allego is a leader in charging solutions, with an international charging network comprised of more than 26,000 charge points operational throughout Europe – and growing rapidly. Our charging solutions are connected to our proprietary platform, EV-Cloud, which gives us and our customers a full portfolio of features and services to meet and exceed market demands. We are committed to providing independent, reliable and safe charging solutions, agnostic of vehicle model or network affiliation. At Allego, we strive every day to make EV charging easier, more convenient and more enjoyable for all.
Forward-Looking Statements
This press release includes forward-looking statements, which are subject to the "safe harbor" provisions of the US Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as "feel," "believes," expects," "estimates," "projects," "intends," "should," "is to be," or the negative of such terms, or other comparable terminology and include, among other things, the quotations of our Chief Executive Officer and statements regarding the planned start of production and MSRP of the Ocean, the Company's future performance and other future events that involve risks and uncertainties. Such forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, which could cause actual results to differ materially from the forward-looking statements contained herein due to many factors, including, but not limited to: Fisker's limited operating history; Fisker's ability to enter into additional manufacturing and other contracts with Magna, or other OEMs or tier-one suppliers in order to execute on its business plan; the risk that OEM and supply partners do not meet agreed upon timelines or experience capacity constraints; Fisker may experience significant delays in the design, manufacture, regulatory approval, launch and financing of its vehicles; Fisker's ability to execute its business model, including market acceptance of its planned products and services; Fisker's inability to retain key personnel and to hire additional personnel; competition in the electric vehicle market; Fisker's inability to develop a sales distribution network; and the ability to protect its intellectual property rights; and those factors discussed in Fisker's Annual Report on Form 10-K, as amended, under the heading "Risk Factors," filed with the Securities and Exchange Commission (the "SEC"), as supplemented by Quarterly Reports on Form 10-Q, and other reports and documents Fisker files from time to time with the SEC. Any forward-looking statements speak only as of the date on which they are made, and Fisker undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.
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TULSA, Okla.--(BUSINESS WIRE)--Williams (NYSE: WMB) announced today the release of its 2020 Sustainability Report, a comprehensive review of environmental, social and governance (ESG) performance metrics as the company meets growing demand for clean, affordable and reliable energy while protecting the environment and building strong communities. An electronic version of the report is available at www.williams.com.
“Our 2020 Sustainability Report outlines the important role natural gas plays today in a viable and sustainable low-carbon future and how natural gas is critical to addressing and slowing climate change,” said Williams President and CEO Alan Armstrong. “As this report details, we are making headway on critical ESG-related fronts; for example, becoming the first North American midstream company to set a near-term climate goal based on right here, right now emissions reduction opportunities and driving progress toward diversifying our workforce and leadership team. We’re also looking to the future as our nationwide infrastructure footprint is well-suited and adaptable to renewable energy sources like clean hydrogen and RNG blending. Williams’ ongoing focus on sustainable operations positions us well to meet clean energy demand for generations to come.”
Highlights of Williams’ 2020 Sustainability Report include the following:
Williams’ 2020 Sustainability Report was prepared in accordance with the Global Reporting Initiative (GRI) Standards and references the Sustainability Accounting Standards Board (SASB) Oil & Gas – Midstream Standard and Task Force on Climate-related Financial Disclosures (TCFD) and the United Nations Sustainable Development Goals (SDGs). In addition, Williams’ 2020 Sustainability Report received independent assurance from ERM Certification and Verification Services (ERM CVS) related to greenhouse gas emissions, safety data and pipeline integrity.
About Williams
Williams (NYSE: WMB) is committed to being the leader in providing infrastructure that safely delivers natural gas products to reliably fuel the clean energy economy. Headquartered in Tulsa, Oklahoma, Williams is an industry-leading, investment grade C-Corp with operations across the natural gas value chain including gathering, processing, interstate transportation and storage of natural gas and natural gas liquids. With major positions in top U.S. supply basins, Williams connects the best supplies with the growing demand for clean energy. Williams owns and operates more than 30,000 miles of pipelines system wide – including Transco, the nation’s largest volume and fastest growing pipeline – and handles approximately 30 percent of the natural gas in the United States that is used every day for clean-power generation, heating and industrial use. www.williams.com
Portions of this document may constitute “forward-looking statements” as defined by federal law. Although the company believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. Any such statements are made in reliance on the “safe harbor” protections provided under the Private Securities Reform Act of 1995. Additional information about issues that could lead to material changes in performance is contained in the company’s annual and quarterly reports filed with the Securities and Exchange Commission.
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INVESTOR CONTACT:
Danilo Juvane
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Grace Scott
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EVANSVILLE, Ind.--(BUSINESS WIRE)--Today, Berry Global Group, Inc. (NYSE: BERY) announced the approval of projects that will help the Company achieve its new milestone goal to eliminate 100 million kilowatt hours (kWh) of electricity from its operations. Berry surpassed its initial target to eliminate 1 million kWh from the Company’s operations in 2020 and is leveraging that success to reach its 100 million kWh goal. With an original deadline of September 2021, Berry is ahead of schedule in achieving these project approvals.
Through the sharing of best practices, Berry team members collaborated across 324 energy saving projects to achieve record energy reduction. In addition, five million kWh were saved through improvements that did not require capital investment. These reductions in energy directly reduce Berry’s scope 1 and 2 emissions, which inherently reduce customer’s scope 3 emissions.
The emissions saved from this remarkable reduction in energy is equal to the CO2 emissions to power over 8,500 homes for one year, charge 8.6 billion smartphones, and greenhouse gas emissions of 15,000 passenger vehicles for one year.1
“In line with our Science-Based Targets to minimize our environmental impacts, we are closely evaluating our energy usage as an important step toward a net-zero economy. Achieving a goal such as this requires the collective expertise of team members at all of our 285 facilities working toward the same goal of lower carbon emissions,” said Tom Salmon, Chairman and CEO of Berry Global.
Accomplished through hundreds of small projects, team members from around the world led initiatives to decrease energy use in Berry’s facilities. Just one example can be seen in Berry’s Terno d’Isola, Italy, facility, where team members implemented programming to automatically shut off equipment when not needed, eliminating 70 minutes of energy every day. Through implementation of the Terno d’Isola’s energy project, the site saved a total of 45,000 kWh, equaling a total of 31.9 MT in carbon emissions, or enough energy to fuel 7 cars for one year.1
“The one million kWh challenge was just a reminder of the little things we can all do in our plants and offices to reduce kWh consumption, like turning off the lights, turning off conveyors, and taking advantage of free cooling, but the transition to the 100 million kWh challenge in 2021 was an effort to highlight the results we can realize when we work together with the specific purpose of reducing energy consumption,” said Rodgers Greenawalt, EVP Operations for Berry Global.
Combining its global presence and local agility to solve this 285 site-wide challenge, Berry leveraged employee ideas for saving energy and brought them to life on a global scale, highlighting what can be accomplished when working together toward a common goal.
1Calculated using: https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator
About Berry
At Berry Global Group, Inc. (NYSE:BERY), we create innovative packaging and engineered products that we believe make life better for people and the planet. We do this every day by leveraging our unmatched global capabilities, sustainability leadership, and deep innovation expertise to serve customers of all sizes around the world. Harnessing the strength in our diversity and industry leading talent of 47,000 global employees across more than 285 locations we partner with customers to develop, design, and manufacture innovative products with an eye toward the circular economy. The challenges we solve and the innovations we pioneer benefit our customers at every stage of their journey. For more information, visit our website, or connect with us on LinkedIn or Twitter.
Berry Media Contact:
Amy Waterman
+1 812 306 2435
This email address is being protected from spambots. You need JavaScript enabled to view it.
New HY-OPTIMA™ 5000 Series Provides Real-Time, Continuous Hydrogen Measurement with No Ongoing Calibration Needed
VALENCIA, Calif.--(BUSINESS WIRE)--H2scan, a leading provider of proven, proprietary hydrogen sensors and technologies for the hydrogen economy, announced today it has started shipping prototypes of its new HY-OPTIMA™ 5000 Series designed for process industries.
The HY-OPTIMA 5000 Series analyzer provides the most accurate, tolerant, and affordable hydrogen process gas measurement solution for industrial markets. It is optimized for emerging cost-sensitive applications like the power-to-gas market (hydrogen blending into natural gas pipeline), electrolyzers and other process applications, including laboratories, alternative energy, hydrogen-cooled generators and turbines.
HY-OPTIMA 5000 sensors are based on the same patented autocalibration technology as H2scan’s successful GRIDSCAN 5000 and legacy sensors. H2scan has sold and delivered more than 15,000 transformer sensors worldwide and no sensor has needed recalibration since its launch in 2012.
The HY-OPTIMA 5000 Series uses a solid-state, non-consumable sensor for direct hydrogen measurement in process gas streams. The HY-OPTIMA 5000 sensor package is available in a compact form factor weighing 1 pound and is 5.9 inches long and 1.6 inches wide/deep. This small size is due to H2scan’s groundbreaking 1.2 million-transistor application specific integrated circuit (ASIC). The HY-OPTIMA 5000 is IP68 rated, can be submerged in up to 30 feet of water for 14 days and is marine compatible.
The inline hydrogen process analyzer prototype features the first ever auto calibration capability and is ideal for stand-alone or OEM integration into existing analyzers. It can be used in gas streams where real-time, hydrogen-specific measurements can enhance process plant efficiencies, improve yields, reduce maintenance costs, and enable the green hydrogen economy.
Once installed and field calibrated, H2scan’s patented auto calibration feature eliminates drift and the need for periodic calibrations. No other maintenance is necessary. Communication with the unit is via serial communication using Modbus RTU over RS485.
The general purpose-rated analyzer measures hydrogen directly in process gas streams with no cross sensitivity to other gases. Hazardous area rated products are planned for release in 2022.
The HY-OPTIMA 5000 models include the model 5031, 5033, and 5034 analyzers, all of which are intended for use in non-condensing gas streams and work with or without hydrogen present.
“Innovation in hydrogen sensors is critical to the measurement and safety needs of the hydrogen economy, and the HY-OPTIMA 5000 offers groundbreaking accuracy, is maintenance free and has a small size,” said Dennis Reid, President and CEO of H2scan. “The HY-OPTIMA 5000 is designed for low-cost use in power-to-gas, hydrogen metering in homes, measuring purity for electrolyzers and a number of other emerging applications. We are looking forward to the ongoing trials and continued collaboration with large gas suppliers, manufacturers of electrolyzers, pipeline manufacturers and others in order to be the defacto hydrogen sensor technology used in all hydrogen-related applications.”
Reid went on to say, “I’m also excited about the HY-ALERTA 5000 safety systems that will soon be delivered. When that product ships, H2scan will have the only hydrogen safety sensor for this market, that I know of, that needs no calibration or maintenance for up to 10 years.”
Availability
H2scan has begun shipping prototypes to key customers and partners. To get more information about general availability of the HY-OPTIMA 5000 sensor click here: https://signup.e2ma.net/signup/1949550/34312/
For more information on H2scan, visit https://h2scan.com.
About H2scan Corporation
H2scan was founded in 2002, and has its headquarters, sales, production and marketing staff in Valencia, California. The Company provides the most accurate, tolerant and affordable hydrogen leak detection and process gas monitoring solutions for industrial markets. H2scan enables the accurate monitoring and control functions for a wide range of applications, including control systems, safety monitoring and alarm systems. H2scan supplies its hydrogen process analyzer and hydrogen leak detectors to utility, petrochemical, refinery, and gas line companies, nuclear power plants, fuel cell, petroleum and other industrial organizations through distribution, or long- term supply agreements. H2scan helps its customers meet safety, regulatory and process control requirements while doing critical hydrogen monitoring. H2scan’s customer base includes some of the largest manufacturing enterprises in the world including: General Electric, DOD, ABB, Siemens, ExxonMobil, Shell, Chevron, NASA, Proctor & Gamble and more.
H2scan now holds 33 patents on its core technology, software and electronics and its products are sold in over 50 countries worldwide. For more information, please visit http://www.h2scan.com.
David Rodewald, 805/494-9508
This email address is being protected from spambots. You need JavaScript enabled to view it.
Key Developments:
Second Quarter 2021 Highlights:
Guidance:
HOUSTON--(BUSINESS WIRE)--$HESM--Hess Midstream LP (NYSE: HESM) (“Hess Midstream”) today reported second quarter 2021 net income of $162.0 million compared with net income of $107.8 million for the second quarter of 2020. After deduction for noncontrolling interests, net income attributable to Hess Midstream was $11.0 million, or $0.44 per Class A share. Hess Midstream generated Adjusted EBITDA of $230.2 million. Distributable Cash Flow (“DCF”) for the second quarter of 2021 was $207.5 million and Adjusted Free Cash Flow was $162.6 million.
“Hess Midstream delivered another strong quarter, marked by higher gas capture and lower than expected costs,” said John Gatling, President and Chief Operating Officer of Hess Midstream. “Looking ahead, we are poised for organic growth and continued adjusted free cash flow as Hess Corporation adds a third rig in September. Furthermore, our decision to return capital to shareholders underscores our confidence in Hess Midstream’s financial stability and trajectory for future volume growth.”
Hess Midstream’s results contained in this release are consolidated to include the noncontrolling interests in Hess Midstream Operations LP owned by affiliates of Hess Corporation (“Hess”) and Global Infrastructure Partners (“GIP”). We refer to certain results as “attributable to Hess Midstream LP,” which exclude the noncontrolling interests in Hess Midstream Operations LP owned by Hess and GIP.
Financial Results
Revenues and other income in the second quarter of 2021 were $294.8 million compared with $269.8 million in the prior-year quarter. Second quarter 2021 revenues included $18.6 million of pass-through rail transportation, electricity, produced water trucking and disposal costs and $18.7 million of shortfall fee payments related to minimum volume commitments compared with $46.0 million and $3.1 million, respectively, in the prior-year quarter. Second quarter 2021 revenues and other income were up $25.0 million compared to the prior-year quarter primarily due to higher minimum volume commitment levels and tariff rates, partially offset by lower pass-through transportation revenues. Total costs and expenses in the second quarter of 2021 were $109.2 million, down from $138.0 million in the prior-year quarter. The decrease was primarily attributable to lower pass-through transportation costs.
Net income for the second quarter of 2021 was $162.0 million, or $0.44 per Class A share, after deduction for noncontrolling interests. Substantially all of income tax expense was attributed to earnings of Class A shares reflective of our organizational structure. Net cash provided by operating activities for the second quarter of 2021 was $224.6 million.
Adjusted EBITDA for the second quarter of 2021 was $230.2 million. Relative to distributions, DCF for the second quarter of 2021 of $207.5 million resulted in an approximately 1.4x distribution coverage ratio. Adjusted Free Cash Flow for the second quarter of 2021 was $162.6 million.
Operational Highlights
Throughput volumes increased 6% for gas gathering and 5% for gas processing in the second quarter of 2021 compared with the second quarter of 2020 driven by higher gas capture of Hess volumes. Throughput volumes decreased 21% for crude oil gathering and 19% for crude oil terminaling in the second quarter of 2021 compared with the second quarter of 2020 due to reduced drilling activity. The impact of the reduction in crude oil physical volumes in the second quarter of 2021 compared to the second quarter of 2020 was offset by higher tariff rates and shortfall fee payments related to minimum volume commitments. Water gathering volumes increased 12% compared with the year-ago quarter reflecting continued steady organic growth of our water handling business. Third parties comprised approximately 15% of crude oil gathering and 10% of gas gathering volumes for the second quarter of 2021.
Capital Expenditures
Capital expenditures for the second quarter of 2021 totaled $46.4 million, including $44.9 million of expansion capital expenditures and $1.5 million of maintenance capital expenditures, and were primarily attributable to continued expansion of our compression capacity. Capital expenditures in the prior-year quarter were $78.8 million, including $77.8 million of expansion capital expenditures and $1.0 million of maintenance capital expenditures, and were primarily attributable to construction and fabrication activities for the Tioga Gas Plant expansion.
Quarterly Cash Distributions
Our general partner’s board of directors declared a quarterly cash distribution of $0.5042 per Class A share for the second quarter of 2021. The distribution represents an approximate 11% increase compared to the distribution for the first quarter of 2021, consisting of a 10% announced increase in addition to a quarterly increase consistent with Hess Midstream’s targeted 5% growth in annual distribution per Class A share. The distribution is expected to be paid on August 13, 2021 to shareholders of record as of the close of business on August 9, 2021.
Unit Repurchase
As separately announced today, Hess Midstream Operations LP, Hess Midstream’s consolidated subsidiary, agreed to repurchase approximately 31 million Class B units of Hess Midstream Operations LP from Hess and GIP for an aggregate purchase price of $750 million, resulting in public ownership of Hess Midstream, on a consolidated basis, increasing to approximately 9.5%. The unit repurchase is expected to close in August 2021 and is expected to be funded through debt financing, maintaining targeted leverage of 3x debt / Adjusted EBITDA on a full-year 2021 basis.
Updated 2021 Guidance
Hess Midstream continues to target annual distribution per share growth of at least 5% through 2023 from the new higher distribution per share level with expected annual distribution coverage greater than 1.4x. In 2021 and 2022, Hess Midstream expects revenues that are 95% protected by minimum volume commitments. Hess Midstream is updating its full year 2021 guidance based primarily on strong year-to-date results as follows:
|
|
Year Ending |
|
|
|
December 31, 2021 |
|
|
|
(Unaudited) |
|
Financials (in millions) |
|
|
|
Net income |
|
$ |
590 - 610 |
Adjusted EBITDA |
|
$ |
880 - 900 |
Distributable cash flow |
|
$ |
765 - 785 |
Expansion capital expenditures |
|
$ |
165 |
Maintenance capital expenditures |
|
$ |
15 |
Adjusted free cash flow |
|
$ |
600 - 620 |
|
|
Year Ending |
|
|
|
December 31, 2021 |
|
|
|
(Unaudited) |
|
Throughput volumes |
|
|
|
Gas gathering - MMcf of natural gas per day |
|
300 - 310 |
|
Crude oil gathering - MBbl of crude oil per day |
|
110 – 120 |
|
Gas processing - MMcf of natural gas per day |
|
285 - 295 |
|
Crude terminals - MBbl of crude oil per day |
|
120 – 130 |
|
Water gathering - MBbl of liquids per day |
|
70 - 80 |
Investor Webcast
Hess Midstream will review second quarter financial and operating results and other matters on a webcast today at 12:00 p.m. Eastern Time. The live audio webcast is accessible on the Investor page of our website www.hessmidstream.com. Conference call numbers for participation are 866-395-9624, or 213-660-0871 for international callers. The passcode number is 7419849. A replay of the conference call will be available at the same location following the event.
About Hess Midstream
Hess Midstream LP is a fee‑based, growth-oriented midstream company that operates, develops and acquires a diverse set of midstream assets to provide services to Hess and third‑party customers. Hess Midstream owns oil, gas and produced water handling assets that are primarily located in the Bakken and Three Forks Shale plays in the Williston Basin area of North Dakota. More information is available at www.hessmidstream.com.
Reconciliation of U.S. GAAP to Non‑GAAP Measures
In addition to our financial information presented in accordance with U.S. generally accepted accounting principles (“GAAP”), management utilizes certain additional non‑GAAP measures to facilitate comparisons of past performance and future periods. “Adjusted EBITDA” presented in this release is defined as reported net income (loss) before net interest expense, income tax expense, depreciation and amortization and our proportional share of depreciation of our equity affiliates, as further adjusted to eliminate the impact of certain items that we do not consider indicative of our ongoing operating performance, such as transaction costs, other income and other non‑cash, non‑recurring items, if applicable. “Distributable Cash Flow” or “DCF” is defined as Adjusted EBITDA less net interest, excluding amortization of deferred financing costs, cash paid for federal and state income taxes and maintenance capital expenditures. DCF does not reflect changes in working capital balances. We define “Adjusted Free Cash Flow” as DCF less expansion capital expenditures and ongoing contributions to equity investments. We believe that investors’ understanding of our performance is enhanced by disclosing these measures as they may assist in assessing our operating performance as compared to other publicly traded companies in the midstream energy industry, without regard to historical cost basis or, in the case of Adjusted EBITDA, financing methods, and assessing the ability of our assets to generate sufficient cash flow to make distributions to our shareholders. These measures are not, and should not be viewed as, a substitute for GAAP net income or cash flow from operating activities and should not be considered in isolation. Reconciliations of Adjusted EBITDA, DCF and Adjusted Free Cash Flow to reported net income (GAAP) and net cash provided by operating activities (GAAP), are provided below. Hess Midstream is unable to project net cash provided by operating activities with a reasonable degree of accuracy because this metric includes the impact of changes in operating assets and liabilities related to the timing of cash receipts and disbursements that may not relate to the period in which the operating activities occur. Therefore, Hess Midstream is unable to provide projected net cash provided by operating activities, or the related reconciliation of projected Adjusted Free Cash Flow to projected net cash provided by operating activities without unreasonable effort.
|
|
Second Quarter |
|
|||||
|
|
(unaudited) |
|
|||||
|
|
2021 |
|
|
2020 |
|
||
|
|
|
|
|
|
|
|
|
(in millions, except ratio and per-share data) |
|
|
|
|
|
|
|
|
Reconciliation of Adjusted EBITDA and Distributable Cash Flow to net income: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
162.0 |
|
|
$ |
107.8 |
|
Plus: |
|
|
|
|
|
|
|
|
Depreciation expense |
|
|
40.4 |
|
|
|
38.9 |
|
Proportional share of equity affiliates' depreciation |
|
|
1.3 |
|
|
|
1.2 |
|
Interest expense, net |
|
|
22.9 |
|
|
|
23.3 |
|
Income tax expense (benefit) |
|
|
3.6 |
|
|
|
1.7 |
|
Loss (gain) on sale of property, plant and equipment |
|
|
- |
|
|
|
(0.1 |
) |
Adjusted EBITDA |
|
|
230.2 |
|
|
|
172.8 |
|
Less: |
|
|
|
|
|
|
|
|
Interest, net(1) |
|
|
21.2 |
|
|
|
21.8 |
|
Maintenance capital expenditures |
|
|
1.5 |
|
|
|
1.0 |
|
Distributable cash flow |
|
$ |
207.5 |
|
|
$ |
150.0 |
|
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted EBITDA, Distributable Cash Flow and Adjusted Free Cash Flow to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
$ |
224.6 |
|
|
$ |
177.4 |
|
Changes in assets and liabilities |
|
|
(15.5 |
) |
|
|
(24.4 |
) |
Amortization of deferred financing costs |
|
|
(1.7 |
) |
|
|
(1.7 |
) |
Proportional share of equity affiliates' depreciation |
|
|
1.3 |
|
|
|
1.2 |
|
Interest expense, net |
|
|
22.9 |
|
|
|
23.3 |
|
Earnings from equity investments |
|
|
2.9 |
|
|
|
0.9 |
|
Distribution from equity investments |
|
|
(4.0 |
) |
|
|
(3.8 |
) |
Other |
|
|
(0.3 |
) |
|
|
(0.1 |
) |
Adjusted EBITDA |
|
$ |
230.2 |
|
|
$ |
172.8 |
|
Less: |
|
|
|
|
|
|
|
|
Interest, net(1) |
|
|
21.2 |
|
|
|
21.8 |
|
Maintenance capital expenditures |
|
|
1.5 |
|
|
|
1.0 |
|
Distributable cash flow |
|
$ |
207.5 |
|
|
$ |
150.0 |
|
Less: |
|
|
|
|
|
|
|
|
Expansion capital expenditures |
|
|
44.9 |
|
|
|
77.8 |
|
Adjusted free cash flow(2) |
|
$ |
162.6 |
|
|
$ |
72.2 |
|
Distributed cash flow |
|
|
143.5 |
|
|
|
124.1 |
|
Distribution coverage ratio |
|
|
1.4 |
x |
|
|
1.2 |
x |
Distribution per Class A share |
|
$ |
0.5042 |
|
|
$ |
0.4363 |
|
(1) Excludes amortization of deferred financing costs. |
(2) Adjusted Free Cash Flow as reported in this release reflects Hess Midstream’s definition of Adjusted Free Cash Flow, which is DCF less expansion capital expenditures and ongoing contributions to equity investments, adopted in the fourth quarter of 2020 to conform to definitions used by other publicly traded midstream energy companies. Prior period calculations of Adjusted Free Cash Flow have been recast to conform to the new presentation, as applicable. |
|
Guidance |
|
||
|
Year Ending |
|
||
|
December 31, 2021 |
|
||
|
(Unaudited) |
|
||
(in millions) |
|
|
|
|
Reconciliation of Adjusted EBITDA, Distributable Cash Flow and Adjusted Free Cash Flow to net income: |
|
|
|
|
Net income |
$ |
590 – 610 |
|
|
Plus: |
|
|
|
|
Depreciation expense* |
|
|
165 |
|
Interest expense, net |
|
|
110 |
|
Income tax expense |
|
|
15 |
|
Adjusted EBITDA |
$ |
880 – 900 |
|
|
Less: |
|
|
|
|
Interest, net, and maintenance capital expenditures |
|
|
115 |
|
Distributable cash flow |
$ |
765 – 785 |
|
|
Less: |
|
|
|
|
Expansion capital expenditures |
|
|
165 |
|
Adjusted free cash flow |
$ |
600 – 620 |
|
|
*Includes proportional share of equity affiliates' depreciation |
|
|
|
|
Cautionary Note Regarding Forward-looking Information
This press release contains “forward-looking statements” within the meaning of U.S. federal securities laws. Words such as “anticipate,” “estimate,” “expect,” “forecast,” “guidance,” “could,” “may,” “should,” “would,” “believe,” “intend,” “project,” “plan,” “predict,” “will,” “target” and similar expressions identify forward-looking statements, which are not historical in nature. Our forward-looking statements may include, without limitation: our future financial and operational results; our business strategy; our industry; our expected revenues; our future profitability; our maintenance or expansion projects; our projected budget and capital expenditures and the impact of such expenditures on our performance; the expected timing and completion of the Class B unit repurchase from Hess and GIP; and future economic and market conditions in the oil and gas industry.
Forward-looking statements are based on our current understanding, assessments, estimates and projections of relevant factors and reasonable assumptions about the future. Forward-looking statements are subject to certain known and unknown risks and uncertainties that could cause actual results to differ materially from our historical experience and our current projections or expectations of future results expressed or implied by these forward-looking statements. The following important factors could cause actual results to differ materially from those in our forward-looking statements: the direct and indirect effects of the COVID-19 global pandemic and other public health developments on our business and those of our business partners, suppliers and customers, including Hess; the ability of Hess and other parties to satisfy their obligations to us, including Hess’ ability to meet its drilling and development plans on a timely basis or at all and the operation of joint ventures that we may not control; our ability to generate sufficient cash flow to pay current and expected levels of distributions; reductions in the volumes of crude oil, natural gas, natural gas liquids (“NGLs”) and produced water we gather, process, terminal or store; fluctuations in the prices and demand for crude oil, natural gas and NGLs, including as a result of the COVID-19 global pandemic; changes in global economic conditions and the effects of a global economic downturn on our business and the business of our suppliers, customers, business partners and lenders; our ability to comply with government regulations or make capital expenditures required to maintain compliance, including our ability to obtain or maintain permits necessary for capital projects in a timely manner, if at all, or the revocation or modification of existing permits; our ability to successfully identify, evaluate and timely execute our capital projects, investment opportunities and growth strategies, whether through organic growth or acquisitions; our ability to satisfy the closing conditions of the Class B unit repurchase, including obtaining necessary debt financing; costs or liabilities associated with federal, state and local laws, regulations and governmental actions applicable to our business, including legislation and regulatory initiatives relating to environmental protection and safety, such as spills, releases, pipeline integrity and measures to limit greenhouse gas emissions; our ability to comply with the terms of our credit facility, indebtedness and other financing arrangements, which, if accelerated, we may not be able to repay; reduced demand for our midstream services, including the impact of weather or the availability of the competing third-party midstream gathering, processing and transportation operations; potential disruption or interruption of our business due to catastrophic events, such as accidents, severe weather events, labor disputes, information technology failures, constraints or disruptions and cyber-attacks; any limitations on our ability to access debt or capital markets on terms that we deem acceptable, including as a result of weakness in the oil and gas industry or negative outcomes within commodity and financial markets; liability resulting from litigation; and other factors described in Item 1A—Risk Factors in our Annual Report on Form 10-K and any additional risks described in our other filings with the Securities and Exchange Commission.
As and when made, we believe that our forward-looking statements are reasonable. However, given these risks and uncertainties, caution should be taken not to place undue reliance on any such forward-looking statements since such statements speak only as of the date when made and there can be no assurance that such forward-looking statements will occur and actual results may differ materially from those contained in any forward-looking statement we make. Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events or otherwise.
HESS MIDSTREAM LP |
||||||||||||
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED) |
||||||||||||
(IN MILLIONS) |
||||||||||||
|
|
Second |
|
|
Second |
|
|
First |
|
|||
|
|
Quarter |
|
|
Quarter |
|
|
Quarter |
|
|||
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|||
Statement of operations |
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Affiliate services |
|
$ |
294.8 |
|
|
$ |
269.8 |
|
|
$ |
288.8 |
|
Total revenues |
|
|
294.8 |
|
|
|
269.8 |
|
|
|
288.8 |
|
Costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Operating and maintenance expenses (exclusive of depreciation shown separately below) |
|
|
63.6 |
|
|
|
95.0 |
|
|
|
59.8 |
|
Depreciation expense |
|
|
40.4 |
|
|
|
38.9 |
|
|
|
40.2 |
|
General and administrative expenses |
|
|
5.2 |
|
|
|
4.1 |
|
|
|
6.3 |
|
Total costs and expenses |
|
|
109.2 |
|
|
|
138.0 |
|
|
|
106.3 |
|
Income from operations |
|
|
185.6 |
|
|
|
131.8 |
|
|
|
182.5 |
|
Income from equity investments |
|
|
2.9 |
|
|
|
0.9 |
|
|
|
2.7 |
|
Interest expense, net |
|
|
22.9 |
|
|
|
23.3 |
|
|
|
23.1 |
|
Gain from sale of property, plant and equipment |
|
|
- |
|
|
|
0.1 |
|
|
|
- |
|
Income before income tax expense (benefit) |
|
|
165.6 |
|
|
|
109.5 |
|
|
|
162.1 |
|
Income tax expense (benefit) |
|
|
3.6 |
|
|
|
1.7 |
|
|
|
2.5 |
|
Net income |
|
$ |
162.0 |
|
|
$ |
107.8 |
|
|
$ |
159.6 |
|
Less: Net income attributable to noncontrolling interest |
|
|
151.0 |
|
|
|
102.5 |
|
|
|
151.0 |
|
Net income attributable to Hess Midstream LP |
|
$ |
11.0 |
|
|
$ |
5.3 |
|
|
$ |
8.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Hess Midstream LP per Class A share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.44 |
|
|
$ |
0.29 |
|
|
$ |
0.45 |
|
Diluted |
|
$ |
0.44 |
|
|
$ |
0.29 |
|
|
$ |
0.43 |
|
Weighted average Class A shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
25.0 |
|
|
|
18.0 |
|
|
|
19.3 |
|
Diluted |
|
|
25.1 |
|
|
|
18.1 |
|
|
|
19.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HESS MIDSTREAM LP |
||||||||
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED) |
||||||||
(IN MILLIONS) |
||||||||
|
|
Six Months Ended June 30, |
|
|||||
|
|
2021 |
|
|
2020 |
|
||
Statement of operations |
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
Affiliate services |
|
$ |
583.6 |
|
|
$ |
560.4 |
|
Other income |
|
|
- |
|
|
|
0.2 |
|
Total revenues |
|
|
583.6 |
|
|
|
560.6 |
|
Costs and expenses |
|
|
|
|
|
|
|
|
Operating and maintenance expenses (exclusive of depreciation shown separately below) |
|
|
123.4 |
|
|
|
186.9 |
|
Depreciation expense |
|
|
80.6 |
|
|
|
77.4 |
|
General and administrative expenses |
|
|
11.5 |
|
|
|
11.7 |
|
Total costs and expenses |
|
|
215.5 |
|
|
|
276.0 |
|
Income from operations |
|
|
368.1 |
|
|
|
284.6 |
|
Income from equity investments |
|
|
5.6 |
|
|
|
3.6 |
|
Interest expense, net |
|
|
46.0 |
|
|
|
48.1 |
|
Gain on sale of property, plant and equipment |
|
|
- |
|
|
|
0.1 |
|
Income before income tax expense (benefit) |
|
|
327.7 |
|
|
|
240.2 |
|
Income tax expense (benefit) |
|
|
6.1 |
|
|
|
3.4 |
|
Net income |
|
$ |
321.6 |
|
|
$ |
236.8 |
|
Less: Net income attributable to noncontrolling interest |
|
|
302.0 |
|
|
|
225.0 |
|
Net income attributable to Hess Midstream LP |
|
$ |
19.6 |
|
|
$ |
11.8 |
|
|
|
|
|
|
|
|
|
|
Net income attributable to Hess Midstream LP per Class A share: |
|
|
|
|
|
|
|
|
Basic: |
|
$ |
0.89 |
|
|
$ |
0.66 |
|
Diluted: |
|
$ |
0.87 |
|
|
$ |
0.64 |
|
Weighted average Class A shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
|
22.2 |
|
|
|
18.0 |
|
Diluted |
|
|
22.3 |
|
|
|
18.1 |
|
HESS MIDSTREAM LP |
||||||||||||||||||||
SUPPLEMENTAL FINANCIAL DATA (UNAUDITED) |
||||||||||||||||||||
(IN MILLIONS) |
||||||||||||||||||||
|
|
Second Quarter 2021 |
|
|||||||||||||||||
|
|
Gathering |
|
|
Processing
|
|
|
Terminaling
|
|
|
Interest
|
|
|
Total |
|
|||||
Statement of operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Affiliate services |
|
$ |
154.6 |
|
|
$ |
105.3 |
|
|
$ |
34.9 |
|
|
$ |
- |
|
|
$ |
294.8 |
|
Total revenues |
|
|
154.6 |
|
|
|
105.3 |
|
|
|
34.9 |
|
|
|
- |
|
|
|
294.8 |
|
Costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating and maintenance expenses (exclusive of depreciation shown separately below) |
|
|
34.8 |
|
|
|
24.2 |
|
|
|
4.6 |
|
|
|
- |
|
|
|
63.6 |
|
Depreciation expense |
|
|
25.2 |
|
|
|
11.2 |
|
|
|
4.0 |
|
|
|
- |
|
|
|
40.4 |
|
General and administrative expenses |
|
|
2.2 |
|
|
|
1.2 |
|
|
|
0.2 |
|
|
|
1.6 |
|
|
|
5.2 |
|
Total costs and expenses |
|
|
62.2 |
|
|
|
36.6 |
|
|
|
8.8 |
|
|
|
1.6 |
|
|
|
109.2 |
|
Income (loss) from operations |
|
|
92.4 |
|
|
|
68.7 |
|
|
|
26.1 |
|
|
|
(1.6 |
) |
|
|
185.6 |
|
Income from equity investments |
|
|
- |
|
|
|
2.9 |
|
|
|
- |
|
|
|
- |
|
|
|
2.9 |
|
Interest expense, net |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
22.9 |
|
|
|
22.9 |
|
Income before income tax expense (benefit) |
|
|
92.4 |
|
|
|
71.6 |
|
|
|
26.1 |
|
|
|
(24.5 |
) |
|
|
165.6 |
|
Income tax expense (benefit) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
3.6 |
|
|
|
3.6 |
|
Net income (loss) |
|
|
92.4 |
|
|
|
71.6 |
|
|
|
26.1 |
|
|
|
(28.1 |
) |
|
|
162.0 |
|
Less: Net income (loss) attributable to noncontrolling interest |
|
|
84.3 |
|
|
|
65.3 |
|
|
|
23.7 |
|
|
|
(22.3 |
) |
|
|
151.0 |
|
Net income (loss) attributable to Hess Midstream LP |
|
$ |
8.1 |
|
|
$ |
6.3 |
|
|
$ |
2.4 |
|
|
$ |
(5.8 |
) |
|
$ |
11.0 |
|
For Hess Midstream LP
Investor:
Jennifer Gordon
(212) 536-8244
Media:
Robert Young
(713) 496-6076
HALIFAX, Nova Scotia--(BUSINESS WIRE)--Emera Inc. (TSX: EMA) is pleased to join the Energy Impact Partners Elevate Future Fund as a founding limited partner.
Energy Impact Partners, a global investment platform focused on a sustainable energy future, established the Elevate Future Fund to help address the disparity in access to capital for companies led by entrepreneurs from underrepresented groups.
“We’re proud to be part of this important initiative to connect innovative energy companies with essential capital, helping to break down barriers all while growing and supporting a lower-carbon economy,” says Karen Hutt, Executive Vice President Business Development and Strategy, Emera Inc. “Our Environmental, Social and Governance commitments are core to Emera’s strategy and the Elevate Future Fund aligns with our focus on helping to build stronger, more innovative communities that are more diverse and equitable for everyone.”
Investments from the Fund will focus on start-up companies that are founded or led by diverse talent, or that provide meaningful employment for underserved communities. The companies will also drive innovation in the areas of decarbonization, electrification, tech enabled infrastructure, reliability and resilience, and intelligent demand.
“We know innovation and new technology are critical to building a clean energy future that’s also affordable and reliable for customers,” says Hutt. “We look forward to enabling promising start-ups to make significant contributions to the energy transition in our local jurisdictions, and beyond.”
Emera is committed to leveraging the already strong business and innovation networks in the areas where we operate by working with community partners to better understand the local start-up landscape, spread awareness of the Fund, and facilitate connections.
“I look forward to working with Emera on creating a more equitable, diverse and inclusive energy transition through the Elevate Future Fund,” said Anthony Oni, Managing Partner of the Elevate Future Fund at Energy Impact Partners. “With the creation of the Elevate Future Fund we are addressing the need for the venture capital community to come together to provide better opportunities for underserved communities in our industry, and Emera’s commitment will help us address this need.”
The Fund has already made three investments in diverse companies focused on the energy transition. This includes Los Angeles-based ChargerHelp! that has developed a mobile application and web-based platform for rapid, on-demand repair of electric vehicle charging stations; Project Canary, an international environmental standards company based in Denver; and HopSkipDrive, an innovative, safe, and dependable youth transportation solution for schools, districts, government agencies and families.
About Emera
Emera Inc. is a geographically diverse energy and services company headquartered in Halifax, Nova Scotia, with approximately $31 billion in assets and 2020 revenues of more than $5.5 billion. The company primarily invests in regulated electricity generation and electricity and gas transmission and distribution with a strategic focus on transformation from high carbon to low carbon energy sources. Emera has investments in Canada, the United States and in four Caribbean countries. Emera’s common and preferred shares are listed on the Toronto Stock Exchange and trade respectively under the symbol EMA, EMA.PR.A, EMA.PR.B, EMA.PR.C, EMA.PR.E, EMA.PR.F, EMA.PR.H and EMA.PR.J. Depositary receipts representing common shares of Emera are listed on the Barbados Stock Exchange under the symbol EMABDR and on The Bahamas International Securities Exchange under the symbol EMAB. Additional information can be accessed at www.emera.com or at www.sedar.com.
About Energy Impact Partners
Energy Impact Partners, LP (EIP) is a global investment platform leading the transition to a sustainable energy future. EIP brings together entrepreneurs and the world's most forward-looking energy and industrial companies to advance innovation. With over $2.0 billion in assets under management, EIP invests globally across venture, growth, credit and infrastructure – and has a team of more than 50 professionals based in its offices in New York, San Francisco, Palm Beach, London, and Cologne. For more information on EIP, please visit www.energyimpactpartners.com.
Media:
Dina Seely
Emera Corporate Communications
902-478-0080
This email address is being protected from spambots. You need JavaScript enabled to view it.
Key Developments:
Second Quarter Financial and Operational Highlights:
2021 Revised Full Year Guidance:
NEW YORK--(BUSINESS WIRE)--Hess Corporation (NYSE: HES) today reported a net loss of $73 million, or $0.24 per common share, in the second quarter of 2021, compared with a net loss of $320 million, or $1.05 per common share, in the second quarter of 2020. On an adjusted basis, net income in the second quarter of 2021 was $74 million, or $0.24 per common share. The improvement in adjusted after-tax results compared with the prior-year period primarily reflects higher realized selling prices in the second quarter of 2021.
“Our company is uniquely positioned to deliver industry leading cash flow growth over the next decade,” CEO John Hess said. “In July, we paid down half of our $1 billion term loan maturing in March 2023 and, depending on market conditions, we plan to repay the balance in 2022. This debt reduction, combined with increasing cash flows from our Guyana developments, will allow us to significantly increase cash returns to shareholders in the coming years through dividend increases and opportunistic share repurchases."
After-tax income (loss) by major operating activity was as follows:
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
(In millions, except per share amounts) |
||||||||||||||
Net Income (Loss) Attributable to Hess Corporation |
|
|
|
|
|||||||||||
Exploration and Production |
$ |
(25) |
|
|
$ |
(249) |
|
|
$ |
283 |
|
|
$ |
(2,620) |
|
Midstream |
76 |
|
|
51 |
|
|
151 |
|
|
112 |
|
||||
Corporate, Interest and Other |
(124) |
|
|
(122) |
|
|
(255) |
|
|
(245) |
|
||||
Net income (loss) attributable to Hess Corporation |
$ |
(73) |
|
|
$ |
(320) |
|
|
$ |
179 |
|
|
$ |
(2,753) |
|
Net income (loss) per common share (diluted) |
$ |
(0.24) |
|
|
$ |
(1.05) |
|
|
$ |
0.58 |
|
|
$ |
(9.04) |
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Adjusted Net Income (Loss) Attributable to Hess Corporation |
|
|
|
|
|||||||||||
Exploration and Production |
$ |
122 |
|
|
$ |
(249) |
|
|
$ |
430 |
|
|
$ |
(369) |
|
Midstream |
76 |
|
|
51 |
|
|
151 |
|
|
112 |
|
||||
Corporate, Interest and Other |
(124) |
|
|
(122) |
|
|
(255) |
|
|
(245) |
|
||||
Adjusted net income (loss) attributable to Hess Corporation |
$ |
74 |
|
|
$ |
(320) |
|
|
$ |
326 |
|
|
$ |
(502) |
|
Adjusted net income (loss) per common share (diluted) |
$ |
0.24 |
|
|
$ |
(1.05) |
|
|
$ |
1.06 |
|
|
$ |
(1.65) |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average number of shares (diluted) |
307.5 |
|
|
305.0 |
|
|
308.7 |
|
|
304.5 |
|
||||
|
|
|
|
|
|
|
|
||||||||
Exploration and Production:
E&P net loss was $25 million in the second quarter of 2021, compared with a net loss of $249 million in the second quarter of 2020. On an adjusted basis, E&P's second quarter 2021 net income was $122 million. The Corporation’s average realized crude oil selling price, including the effect of hedging, was $59.79 per barrel in the second quarter of 2021, compared with $38.46 per barrel in the prior-year quarter. The average realized natural gas liquids (NGL) selling price in the second quarter of 2021 was $23.12 per barrel, compared with $7.32 per barrel in the prior-year quarter, while the average realized natural gas selling price was $4.05 per mcf, compared with $2.41 per mcf in the second quarter of 2020.
Net production, excluding Libya, was 307,000 boepd in the second quarter of 2021, compared with 334,000 boepd in the second quarter of 2020, or 322,000 boepd pro forma for assets sold. Net production for Libya was 21,000 boepd in the second quarter of 2021 compared with zero in the second quarter of 2020 due to force majeure declared by the Libyan National Oil Corporation.
Cash operating costs, which include operating costs and expenses, production and severance taxes, and E&P general and administrative expenses, were $11.63 per boe (excluding Libya: $12.16 per boe) in the second quarter of 2021, compared with $8.81 per boe (excluding Libya: $8.64 per boe) in the prior-year quarter. The increase was due to higher maintenance and workover activity and production and severance taxes. The increase in the effective tax rate in the second quarter of 2021 compared with the year-ago period was primarily driven by higher production in Libya.
Operational Highlights for the Second Quarter of 2021:
Bakken (Onshore U.S.): Net production from the Bakken was 159,000 boepd compared with 194,000 boepd in the prior-year quarter, primarily due to lower drilling activity caused by a reduction in rig count from six to one last year, and lower NGL and natural gas volumes received under percentage of proceeds contracts due to higher commodity prices. Net oil production was 79,000 barrels of oil per day (bopd) in the second quarter of 2021 and 108,000 bopd in the prior year quarter. NGL and natural gas volumes received under percentage of proceeds contracts were 14,000 boepd in the second quarter of 2021 compared with 22,000 boepd in the second quarter of 2020 due to higher realized NGL prices lowering volumes received as consideration for gas processing fees. The Corporation added a second rig in February 2021 and drilled 17 wells, completed 9 wells, and brought 9 new wells online during the second quarter. In September, the Corporation plans to add a third rig in the field.
In April, the Corporation completed the sale of its Little Knife and Murphy Creek nonstrategic acreage interests in the Bakken for net proceeds of $297 million, after closing adjustments. The sale consisted of approximately 78,700 net acres, which were located in the southernmost portion of the Corporation's Bakken position and not connected to Hess Midstream LP infrastructure.
Gulf of Mexico (Offshore U.S.): Net production from the Gulf of Mexico was 52,000 boepd, compared with 68,000 boepd in the prior-year quarter, primarily due to the sale of the Corporation's interest in the Shenzi Field in the fourth quarter of 2020. Net production from the Shenzi Field was 12,000 boepd in the second quarter of 2020.
Guyana (Offshore): At the Stabroek Block (Hess – 30%), the operator, Esso Exploration and Production Guyana Limited, announced a significant new oil discovery at Whiptail. The Whiptail-1 well encountered 246 feet (75 meters) of net pay in high quality oil bearing sandstone reservoirs. Drilling is also ongoing at the Whiptail-2 well, which is located 3 miles northeast of Whiptail-1 and has encountered 167 feet (51 meters) of net pay in high quality oil bearing sandstone reservoirs. Drilling continues at both wells to test deeper targets, and results will be evaluated for future development. The Whiptail discovery is located approximately 4 miles southeast of the Uaru-1 discovery that was announced in January 2020 and approximately 3 miles west of the Yellowtail Field.
The Corporation’s net production from the Liza Field was 26,000 bopd in the second quarter of 2021 compared with 22,000 bopd in the prior-year quarter. Startup of Phase 2 of the Liza Field development, which will utilize the Liza Unity floating production, storage and offloading vessel (FPSO) with an expected capacity of 220,000 gross bopd, remains on track for early 2022. The third development, Payara, will utilize the Prosperity FPSO with an expected capacity of 220,000 gross bopd; first oil is expected in 2024. A fourth development, Yellowtail, has been identified on the Stabroek Block with anticipated startup in 2025, pending government approvals and project sanctioning. The Mako-2 appraisal well completed in the second quarter confirmed the quality, thickness and areal extent of the reservoir. When integrated with the previously announced results at Uaru-2, the combined discovered resource at Mako and Uaru is expected to support a fifth FPSO on the Stabroek Block. We expect to have at least six FPSOs on the Stabroek Block by 2027 with the potential for up to 10 FPSOs to develop the current discovered recoverable resource base.
The Longtail-3 well encountered 230 feet of net pay, including newly identified, high quality hydrocarbon bearing reservoirs below the original Longtail-1 discovery intervals. The well was drilled in more than 6,100 feet of water and is located approximately 2 miles south of the Longtail-1 well.
The Koebi-1 exploration well was drilled to a depth of 20,700 feet and did not encounter commercial quantities of hydrocarbons. Second quarter results include a charge of $12 million in exploration expenses for well costs incurred.
The Stena DrillMax is continuing drilling operations at Whiptail-1 and the Noble Don Taylor is continuing drilling operations at Whiptail-2. The Stena Carron is performing a drill stem test on the Uaru-1 well. The Noble Tom Madden, the Noble Bob Douglas and the Noble Sam Croft are drilling and completing Phase 2 development wells.
South East Asia (Offshore): Net production at the North Malay Basin and JDA was 66,000 boepd, compared with 44,000 boepd in the prior-year quarter, reflecting higher natural gas nominations due to a recovery in economic activity.
Midstream:
The Midstream segment had net income of $76 million in the second quarter of 2021, compared with net income of $51 million in the prior-year quarter, primarily due to higher revenue from minimum volume commitments and tariff rates.
Hess Midstream LP today announced an agreement to purchase approximately 31 million Class B units of its consolidated subsidiary, Hess Midstream Operations LP, from its sponsors, Hess Corporation and Global Infrastructure Partners, for approximately $750 million. The Corporation is expected to receive net proceeds of approximately $375 million. After giving effect to this transaction, which is expected to be completed in the third quarter of 2021, the Corporation will own an approximate 45% interest in Hess Midstream LP, on a consolidated basis.
Corporate, Interest and Other:
After-tax expense for Corporate, Interest and Other was $124 million in the second quarter of 2021, compared with $122 million in the second quarter of 2020.
Capital and Exploratory Expenditures:
E&P capital and exploratory expenditures were $429 million in the second quarter of 2021 compared with $453 million in the prior-year quarter, primarily due to lower drilling activity in the Bakken and Gulf of Mexico, partially offset by increased exploration and development activity in Guyana. Midstream capital expenditures were $47 million in the second quarter of 2021, down from $79 million in the prior-year quarter.
Liquidity:
Excluding the Midstream segment, Hess Corporation had cash and cash equivalents of $2.42 billion and debt and finance lease obligations totaling $6.6 billion at June 30, 2021. The Midstream segment had cash and cash equivalents of $6 million and total debt of $1.8 billion at June 30, 2021. The Corporation’s debt to capitalization ratio as defined in its debt covenants was 47.2% at June 30, 2021 and 47.5% at December 31, 2020. The Corporation has no material near-term debt maturities aside from the $1.0 billion term loan, which matures in March 2023. In July 2021, the Corporation prepaid $500 million principal amount of the term loan, which was classified as current maturities of long-term debt, in the consolidated balance sheet at June 30, 2021.
Net cash provided by operating activities was $785 million in the second quarter of 2021, up from $266 million in the second quarter of 2020 primarily due to higher realized selling prices. Net cash provided by operating activities before changes in operating assets and liabilities2 was $659 million in the second quarter of 2021, compared with $301 million in the prior-year quarter. Changes in operating assets and liabilities increased cash flow from operating activities by $126 million during the second quarter of 2021 and decreased cash flow from operating activities by $35 million during the prior-year quarter.
Items Affecting Comparability of Earnings Between Periods:
The following table reflects the total after-tax income (expense) of items affecting comparability of earnings between periods:
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
(In millions) |
||||||||||||||
Exploration and Production |
$ |
(147) |
|
|
$ |
— |
|
|
$ |
(147) |
|
|
$ |
(2,251) |
|
Midstream |
— |
|
|
— |
|
|
— |
|
|
— |
|
||||
Corporate, Interest and Other |
— |
|
|
— |
|
|
— |
|
|
— |
|
||||
Total items affecting comparability of earnings between periods |
$ |
(147) |
|
|
$ |
— |
|
|
$ |
(147) |
|
|
$ |
(2,251) |
|
Second Quarter 2021: E&P results include a charge of $147 million ($147 million after income taxes) in connection with estimated future abandonment obligations of Fieldwood Energy LLC in the West Delta 79/86 field (West Delta Field) in the Gulf of Mexico. In June 2021, the U.S. Bankruptcy Court approved Fieldwood’s bankruptcy plan which includes discharging decommissioning obligations, subject to conditions precedent, for certain of Fieldwood’s assets. Those obligations will transfer to former owners of the properties, including Hess with respect to the West Delta Field, which Hess sold in 2004. Potential recoveries from other parties that previously owned an interest in the West Delta Field have not been recognized as of June 30, 2021.
2. “Net cash provided by (used in) operating activities before changes in operating assets and liabilities” is a non-GAAP financial measure. The definition of this non-GAAP measure and a reconciliation to its nearest GAAP equivalent measure appears on pages 7 and 8.
Reconciliation of U.S. GAAP to Non-GAAP measures:
The following table reconciles reported net income (loss) attributable to Hess Corporation and adjusted net income (loss):
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
(In millions) |
||||||||||||||
Net income (loss) attributable to Hess Corporation |
$ |
(73) |
|
|
$ |
(320) |
|
|
$ |
179 |
|
|
$ |
(2,753) |
|
Less: Total items affecting comparability of earnings between periods |
(147) |
|
|
— |
|
|
(147) |
|
|
(2,251) |
|
||||
Adjusted net income (loss) attributable to Hess Corporation |
$ |
74 |
|
|
$ |
(320) |
|
|
$ |
326 |
|
|
$ |
(502) |
|
The following table reconciles reported net cash provided by (used in) operating activities from net cash provided by (used in) operating activities before changes in operating assets and liabilities:
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
(In millions) |
||||||||||||||
Net cash provided by (used in) operating activities before changes in operating assets and liabilities |
$ |
659 |
|
|
$ |
301 |
|
|
$ |
1,474 |
|
|
$ |
803 |
|
Changes in operating assets and liabilities |
126 |
|
|
(35) |
|
|
(98) |
|
|
(92) |
|
||||
Net cash provided by (used in) operating activities |
$ |
785 |
|
|
$ |
266 |
|
|
$ |
1,376 |
|
|
$ |
711 |
|
Hess Corporation will review second quarter financial and operating results and other matters on a webcast at 10 a.m. today (EDT). For details about the event, refer to the Investor Relations section of our website at www.hess.com.
Hess Corporation is a leading global independent energy company engaged in the exploration and production of crude oil and natural gas. More information on Hess Corporation is available at www.hess.com.
Forward-looking Statements
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Words such as “anticipate,” “estimate,” “expect,” “forecast,” “guidance,” “could,” “may,” “should,” “would,” “believe,” “intend,” “project,” “plan,” “predict,” “will,” “target” and similar expressions identify forward-looking statements, which are not historical in nature. Our forward-looking statements may include, without limitation: our future financial and operational results; our business strategy; estimates of our crude oil and natural gas reserves and levels of production; benchmark prices of crude oil, NGL and natural gas and our associated realized price differentials; our projected budget and capital and exploratory expenditures; expected timing and completion of our development projects, proposed asset sale and the Midstream Class B unit repurchase; and future economic and market conditions in the oil and gas industry.
Forward-looking statements are based on our current understanding, assessments, estimates and projections of relevant factors and reasonable assumptions about the future. Forward-looking statements are subject to certain known and unknown risks and uncertainties that could cause actual results to differ materially from our historical experience and our current projections or expectations of future results expressed or implied by these forward-looking statements. The following important factors could cause actual results to differ materially from those in our forward-looking statements: fluctuations in market prices of crude oil, NGL and natural gas and competition in the oil and gas exploration and production industry, including as a result of the global COVID-19 pandemic; reduced demand for our products, including due to the global COVID-19 pandemic or the outbreak of any other public health threat, or due to the impact of competing or alternative energy products and political conditions and events; potential failures or delays in increasing oil and gas reserves, including as a result of unsuccessful exploration activity, drilling risks and unforeseen reservoir conditions, and in achieving expected production levels; changes in tax, property, contract and other laws, regulations and governmental actions applicable to our business, including legislative and regulatory initiatives regarding environmental concerns, such as measures to limit greenhouse gas emissions and flaring as well as fracking bans; disruption or interruption of our operations due to catastrophic events, such as accidents, severe weather, geological events, shortages of skilled labor, cyber-attacks or health measures related to the COVID-19 pandemic; the ability of our contractual counterparties to satisfy their obligations to us, including the operation of joint ventures under which we may not control; the ability to satisfy the closing conditions of the proposed asset sale and the Midstream Class B unit repurchase; unexpected changes in technical requirements for constructing, modifying or operating exploration and production facilities and/or the inability to timely obtain or maintain necessary permits; availability and costs of employees and other personnel, drilling rigs, equipment, supplies and other required services; any limitations on our access to capital or increase in our cost of capital, including as a result of weakness in the oil and gas industry or negative outcomes within commodity and financial markets; liability resulting from litigation, including heightened risks associated with being a general partner of Hess Midstream LP; and other factors described in Item 1A—Risk Factors in our Annual Report on Form 10-K and any additional risks described in our other filings with the Securities and Exchange Commission (SEC).
As and when made, we believe that our forward-looking statements are reasonable. However, given these risks and uncertainties, caution should be taken not to place undue reliance on any such forward-looking statements since such statements speak only as of the date when made and there can be no assurance that such forward-looking statements will occur and actual results may differ materially from those contained in any forward-looking statement we make. Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events or otherwise.
Non-GAAP financial measures
The Corporation has used non-GAAP financial measures in this earnings release. “Adjusted net income (loss)” presented in this release is defined as reported net income (loss) attributable to Hess Corporation excluding items identified as affecting comparability of earnings between periods. “Net cash provided by (used in) operating activities before changes in operating assets and liabilities” presented in this release is defined as Net cash provided by (used in) operating activities excluding changes in operating assets and liabilities. Management uses adjusted net income (loss) to evaluate the Corporation’s operating performance and believes that investors’ understanding of our performance is enhanced by disclosing this measure, which excludes certain items that management believes are not directly related to ongoing operations and are not indicative of future business trends and operations. Management believes that net cash provided by (used in) operating activities before changes in operating assets and liabilities demonstrates the Corporation’s ability to internally fund capital expenditures, pay dividends and service debt. These measures are not, and should not be viewed as, a substitute for U.S. GAAP net income (loss) or net cash provided by (used in) operating activities. A reconciliation of reported net income (loss) attributable to Hess Corporation (U.S. GAAP) to adjusted net income (loss), and a reconciliation of net cash provided by (used in) operating activities (U.S. GAAP) to net cash provided by (used in) operating activities before changes in operating assets and liabilities are provided in the release.
Cautionary Note to Investors
We use certain terms in this release relating to resources other than proved reserves, such as unproved reserves or resources. Investors are urged to consider closely the oil and gas disclosures in Hess Corporation’s Form 10-K, File No. 1-1204, available from Hess Corporation, 1185 Avenue of the Americas, New York, New York 10036 c/o Corporate Secretary and on our website at www.hess.com. You can also obtain this form from the SEC on the EDGAR system.
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
|
|||||||||||
|
Second
|
|
Second
|
|
First
|
||||||
Income Statement |
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
Revenues and non-operating income |
|
|
|
|
|
||||||
Sales and other operating revenues |
$ |
1,579 |
|
|
$ |
833 |
|
|
$ |
1,898 |
|
Other, net |
19 |
|
|
9 |
|
|
21 |
|
|||
Total revenues and non-operating income |
1,598 |
|
|
842 |
|
|
1,919 |
|
|||
Costs and expenses |
|
|
|
|
|
||||||
Marketing, including purchased oil and gas |
322 |
|
|
56 |
|
|
518 |
|
|||
Operating costs and expenses |
315 |
|
|
294 |
|
|
265 |
|
|||
Production and severance taxes |
44 |
|
|
16 |
|
|
37 |
|
|||
Exploration expenses, including dry holes and lease impairment |
48 |
|
|
31 |
|
|
33 |
|
|||
General and administrative expenses |
84 |
|
|
89 |
|
|
94 |
|
|||
Interest expense |
118 |
|
|
119 |
|
|
117 |
|
|||
Depreciation, depletion and amortization |
385 |
|
|
509 |
|
|
396 |
|
|||
Impairment and other |
147 |
|
|
— |
|
|
— |
|
|||
Total costs and expenses |
1,463 |
|
|
1,114 |
|
|
1,460 |
|
|||
Income (loss) before income taxes |
135 |
|
|
(272) |
|
|
459 |
|
|||
Provision (benefit) for income taxes |
122 |
|
|
(9) |
|
|
123 |
|
|||
Net income (loss) |
13 |
|
|
(263) |
|
|
336 |
|
|||
Less: Net income (loss) attributable to noncontrolling interests |
86 |
|
|
57 |
|
|
84 |
|
|||
Net income (loss) attributable to Hess Corporation |
$ |
(73) |
|
|
$ |
(320) |
|
|
$ |
252 |
|
For Hess Corporation
Investor Contact:
Jay Wilson
(212) 536-8940
Media Contacts:
Lorrie Hecker
(212) 536-8250
Jamie Tully
Sard Verbinnen & Co
(917) 679-7908
Energy Impact Partners’ new “Elevate” fund supports clean energy companies owned by diverse and underrepresented groups in the industry
MINNEAPOLIS--(BUSINESS WIRE)--Xcel Energy announced today that it is co-chairing and investing in Energy Impact Partners’ Elevate Future Fund (“Elevate”) as a founding, limited partner. Energy Impact Partners is a global investment platform that supports the development of new, clean energy technologies, and Xcel Energy is a long-time investor in the company. The new Elevate fund aims to create a more diverse founder community and an inclusive venture capital ecosystem within the clean energy transition.
“Xcel Energy is deeply committed to building an energy future that reflects the rich diversity of the communities that we serve. We are pleased and proud to have the opportunity to both invest in and co-chair the Elevate Fund,” said Ben Fowke, CEO and chairman of Xcel Energy. “The goals of this fund align with our own and we are excited to support both the development of clean energy technologies and the diverse founders of the companies doing this critical work.”
The Elevate fund has already invested in three diverse companies, including Los Angeles-based ChargerHelp!, a Black women-owned started up that developed a mobile application and web-based platform for rapid, on-demand repair of electric vehicle charging stations. Elevate will help ChargerHelp! Expand its service and improve its technology. The fund has also invested in Project Canary, an international environmental standards company based in Denver, and in a company called HopSkipDrive, which offers innovative, safe and dependable youth transportation for schools, districts, government agencies and families.
“I look forward to working with Xcel Energy in creating a more equitable, diverse and inclusive energy transition through the Elevate Future Fund,” said Anthony Oni, managing partner of the Fund at Energy Impact Partners. “With the creation of the Elevate Future Fund, we are addressing the need for the venture capital community to come together to provide better opportunities for underserved communities in our industry. Xcel Energy’s commitment will help us address this need.”
About Xcel Energy
Xcel Energy (NASDAQ: XEL) provides the energy that powers millions of homes and businesses across eight Western and Midwestern states. Headquartered in Minneapolis, the company is an industry leader in responsibly reducing carbon emissions and producing and delivering clean energy solutions from a variety of renewable sources at competitive prices. For more information, visit xcelenergy.com or follow us on Twitter and Facebook.
About Energy Impact Partners
Energy Impact Partners, LP (EIP) is a global investment platform leading the transition to a sustainable energy future. EIP brings together entrepreneurs and the world's most forward-looking energy and industrial companies to advance innovation. With over $2.0 billion in assets under management, EIP invests globally across venture, growth, credit and infrastructure – and has a team of more than 50 professionals based in its offices in New York, San Francisco, Palm Beach, London, and Cologne. For more information on EIP, please visit www.energyimpactpartners.com.
Xcel Energy Media Relations
414 Nicollet Mall, 401-7
Minneapolis, MN 55401
(612) 215-5300
www.xcelenergy.com
Second Quarter 2021
Full-Year 2021 Forecast
MIAMI--(BUSINESS WIRE)--Ryder System, Inc. (NYSE: R), a leader in supply chain, dedicated transportation, and fleet management solutions, reported results for the three months ended June 30 as follows:
(In millions, except EPS) |
Earnings (Loss)
|
|
Earnings (Loss) |
|
Diluted Earnings
|
||||||||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||||||
Continuing operations (GAAP) |
$ |
203.6 |
|
|
$ |
(94.8) |
|
|
$ |
149.6 |
|
|
$ |
(73.7) |
|
|
$ |
2.78 |
|
|
$ |
(1.41) |
|
Comparable (non-GAAP) |
$ |
175.6 |
|
|
$ |
(64.0) |
|
|
$ |
129.1 |
|
|
$ |
(49.5) |
|
|
$ |
2.40 |
|
|
$ |
(0.95) |
|
Total and operating revenue for the three months ended June 30 were as follows:
(In millions) |
Total Revenue |
|
Operating Revenue
|
||||||||||||||
|
2021 |
|
2020 |
|
Change |
|
2021 |
|
2020 |
|
Change |
||||||
Total |
$ |
2,382 |
|
|
1,895 |
|
|
26% |
|
$ |
1,923 |
|
|
1,623 |
|
|
18% |
Fleet Management Solutions (FMS) |
$ |
1,408 |
|
|
1,198 |
|
|
18% |
|
$ |
1,225 |
|
|
1,074 |
|
|
14% |
Supply Chain Solutions (SCS) |
$ |
776 |
|
|
519 |
|
|
49% |
|
$ |
535 |
|
|
405 |
|
|
32% |
Dedicated Transportation Solutions (DTS) |
$ |
355 |
|
|
294 |
|
|
21% |
|
$ |
256 |
|
|
228 |
|
|
12% |
CEO Comment
Commenting on the company's results and outlook, Ryder Chairman and CEO Robert Sanchez said, "Our team delivered strong second quarter results that exceeded our expectations, driven by significant improvement in FMS results due to higher gains on used vehicles sold as well as strong lease and rental performance. We're excited to see strong sales activity across all segments, reflecting continued strength in secular growth trends. Our innovative technology offerings, such as RyderShare™, are strategic differentiators for us, as our customers seek expanded supply chain and transportation capabilities and increased resiliency.
"We continue to make significant progress on our longer-term return initiatives and now anticipate achieving ROE of 16% - 17% this year while generating strong free cash flow. We expect these results to be driven by improved used vehicle sales results from strong demand and limited market inventory, better pricing in our lease and commercial rental businesses, and strong demand in commercial rental as the economic outlook continues to improve. Given our outlook for a strong freight environment going into 2022, we expect continued favorable performance in FMS driven by lease, rental, and used vehicle sales. We now expect nearly all of our leases to perform above target returns. In SCS and DTS, we are on track to meet or exceed our revenue growth targets, but we anticipate returns to be impacted by increased labor and insurance costs as well as strategic investments in new technologies, new locations in our Ryder Last Mile network, and our Ever better™ brand awareness campaign.
"Based on this outlook and the actions we have implemented to enhance returns over the long term, we have significantly increased our forecast and expect to deliver comparable EPS of $7.20 - $7.50 compared to a loss of $0.27 in 2020. In addition, we're raising our free cash flow forecast for the year. Our balance sheet remains strong and leverage is near the bottom end of our target range, providing opportunity for future strategic acquisitions and/or share repurchases."
Outlook
|
Full Year 2021 |
FY21 GAAP EPS |
$7.40 - $7.70 |
FY21 Comparable EPS (non-GAAP) |
$7.20 - $7.50 |
YOY Earnings Benefit from Lower Depreciation Impact (excl. UVS, net) |
~$180M |
|
|
ROE (1) |
16% - 17% |
Cash from Operating Activities |
~$2.2B |
Free Cash Flow (non-GAAP) |
$650M - $750M |
Capital Expenditures |
$2.2B - $2.3B |
Debt-to-Equity |
Below 250% |
|
|
|
Third Quarter 2021 |
3Q21 GAAP EPS |
$1.94 - $2.04 |
3Q21 Comparable EPS (non-GAAP) |
$1.95 - $2.05 |
YOY Earnings Benefit from Lower Depreciation Impact (excl. UVS, net) |
~$40M |
|
|
(1) The non-GAAP elements of the calculation have been reconciled to the corresponding GAAP measures. A numerical reconciliation of net earnings to adjusted net earnings and average shareholders' equity to ROE is provided in the Appendix - Non-GAAP Financial Measures at the end of this release. |
|
Second Quarter Business Segment Operating Results
Fleet Management Solutions: Higher Earnings Reflect Improved Used Vehicle Sales, Rental, and Lease Results
(In millions) |
2Q21 |
|
2Q20 |
|
Change |
|||
Total Revenue |
$ |
1,408 |
|
|
1,198 |
|
|
18% |
Operating Revenue (1) |
$ |
1,225 |
|
|
1,074 |
|
|
14% |
|
|
|
|
|
|
|||
Earnings Before Tax (EBT) (2) |
$ |
158 |
|
|
(104 |
) |
|
NM |
FMS EBT as a % of FMS total revenue |
11.3% |
|
(8.7)% |
|
NM |
|||
FMS EBT as a % of FMS operating revenue (1) |
12.9% |
|
(9.7)% |
|
NM |
|||
|
|
|
|
|
|
|||
Rolling 12-months EBT as % of total and operating revenue |
2Q21 |
|
2Q20 |
|
Change |
|||
FMS EBT as a % of FMS total revenue |
5.5% |
|
(7.6)% |
|
NM |
|||
FMS EBT as a % of FMS operating revenue (1) |
6.3% |
|
(8.8)% |
|
NM |
|||
|
|
|
|
|
|
|||
(1) Non-GAAP financial measure excluding fuel and lease liability insurance revenue. |
||||||||
(2) EBT in 2Q21 and 2Q20 included $23M and $154M of depreciation expense, respectively, from the impact of policy and accelerated depreciation and used vehicle sales results due to prior residual values estimate changes. |
||||||||
NM - Not Meaningful |
||||||||
FMS revenue increased due to higher rental and ChoiceLease revenue. Total revenue also increased from higher fuel pricing.
FMS EBT increased by $262 million reflecting higher gains on used vehicles sold and a declining impact of depreciation expense from prior vehicle residual value estimate changes, which together totaled $131 million. Used vehicle pricing on trucks and tractors increased 72% and 73%, respectively, from the prior year, and ending inventory levels declined to 4,300 vehicles, well below our target range of 7,000 - 9,000 vehicles. Rental results benefited from a 13% increase in pricing and better utilization. Rental power fleet utilization increased to 80% (up from 56% in the prior year) on a 2% smaller average power fleet. Prior-year rental results were negatively impacted by COVID-19. Lease results benefited from higher lease pricing and increased miles driven, partially offset by a smaller lease fleet. FMS EBT as a percentage of FMS operating revenue surpassed the company's long-term target of high single digits; however, it was below the target for the trailing twelve-month period, reflecting depreciation from residual value estimate changes in prior quarters.
Supply Chain Solutions: Higher Earnings from Revenue Growth, Partially Offset by Higher Overhead Including Strategic Investments
(In millions) |
2Q21 |
|
2Q20 |
|
Change |
|||
Total Revenue |
$ |
776 |
|
|
519 |
|
|
49% |
Operating Revenue (1) |
$ |
535 |
|
|
405 |
|
|
32% |
|
|
|
|
|
|
|||
Earnings Before Tax (EBT) |
$ |
41 |
|
|
37 |
|
|
11% |
EBT as a % of total revenue |
5.3% |
|
7.1% |
|
(180) bps |
|||
EBT as a % of operating revenue (1) |
7.7% |
|
9.1% |
|
(140) bps |
|||
|
|
|
|
|
|
|||
Rolling 12-months EBT as % of total and operating revenue |
2Q21 |
|
2Q20 |
|
Change |
|||
EBT as a % of total revenue |
5.8% |
|
5.6% |
|
20 bps |
|||
EBT as a % of operating revenue (1) |
8.2% |
|
7.5% |
|
70 bps |
|||
|
|
|
|
|
|
|||
(1) Non-GAAP financial measure excluding fuel and subcontracted transportation. |
||||||||
SCS total revenue and operating revenue increased due to higher automotive revenues, reflecting increased volumes and prior-year COVID-19 impacts. Total and operating revenue also increased by double-digit percentages due to new business and higher volumes in other industry verticals.
SCS EBT benefited from revenue growth, primarily in automotive, and were partially offset by strategic investments in marketing and technology, as well as increased incentive compensation and medical costs. SCS EBT as a percentage of SCS operating revenue is below the company's long-term target of high single digits, but it is at target for the trailing twelve-month period.
Dedicated Transportation Solutions: Earnings from Strong Revenue Growth More Than Offset by Higher Labor Costs, Insurance Expense, and Strategic Investments
(In millions) |
2Q21 |
|
2Q20 |
|
Change |
|||
Total Revenue |
$ |
355 |
|
|
294 |
|
|
21% |
Operating Revenue (1) |
$ |
256 |
|
|
228 |
|
|
12% |
|
|
|
|
|
|
|||
Earnings Before Tax (EBT) |
$ |
13 |
|
|
21 |
|
|
(38)% |
EBT as a % of total revenue |
3.7% |
|
7.2% |
|
(350) bps |
|||
EBT as a % of operating revenue (1) |
5.1% |
|
9.3% |
|
(420) bps |
|||
|
|
|
|
|
|
|||
Rolling 12-months EBT as % of total and operating revenue |
2Q21 |
|
2Q20 |
|
Change |
|||
EBT as a % of total revenue |
5.2% |
|
5.2% |
|
— bps |
|||
EBT as a % of operating revenue (1) |
6.9% |
|
7.3% |
|
(40) bps |
|||
|
|
|
|
|
|
|||
(1) Non-GAAP financial measure excluding fuel and subcontracted transportation. |
||||||||
DTS total and operating revenue increased due to new business and higher volumes. Revenue growth from new business can be largely attributed to wins from competitors and private fleet conversions.
DTS EBT decreased primarily due to increased labor costs, higher insurance costs, and strategic investments. DTS EBT as a percentage of DTS operating revenue is below the company's long-term target of high single digits.
Corporate Financial Information
Unallocated Central Support Services (CSS)
Unallocated CSS costs were $18 million as compared to $11 million in the prior year, primarily due to higher incentive compensation-related expenses reflecting significantly improved company performance.
Income Taxes
Our effective income tax rate from continuing operations was an expense of 26.5% as compared to a benefit of 22.2% in the prior year. The prior-year tax rate was impacted by a reduction in earnings due to accelerated depreciation charges and COVID-19 effects.
Capital Expenditures, Cash Flow, and Leverage
Year-to-date capital expenditures increased to $963 million in 2021 compared with $597 million in 2020 primarily due to higher planned investments in the rental fleet.
Year-to-date operating cash flow remained at $1.1 billion, reflecting higher earnings, offset by higher working capital needs. Free cash flow (a non-GAAP measure) was $602 million, down from $612 million in 2020 due an increase in cash paid for capital expenditures, partially offset by higher proceeds from the sale of revenue earning equipment and operating property and equipment. We forecast full-year 2021 cash from operating activities of approximately $2.2 billion and free cash flow of $650 million - $750 million, which is at the high end of our previous forecast range and primarily reflects a cash flow benefit from OEM vehicle delivery delays.
Debt-to-equity as of June 30, 2021 declined to 258% from 293% at year-end 2020, and is within the company's long-term target of 250 - 300%. The decrease in debt-to-equity from year-end 2020 was driven by lower debt as a result of higher free cash flow.
Supplemental Company Information
Second Quarter Net Earnings
(In millions, except EPS) |
Earnings |
|
Diluted EPS |
||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||
Earnings (loss) from continuing operations |
$ |
149.6 |
|
|
(73.7 |
) |
|
$ |
2.78 |
|
|
(1.41 |
) |
Discontinued operations |
(0.5 |
) |
|
(0.4 |
) |
|
(0.01 |
) |
|
(0.01 |
) |
||
Net earnings (loss) |
$ |
149.1 |
|
|
(74.1 |
) |
|
$ |
2.77 |
|
|
(1.42 |
) |
|
|
|
|
|
|
||||
Year-to-Date Operating Results |
|
|
|
|
|
||||
|
|
|
|
|
|
||||
(In millions, except EPS) |
Six months ended June 30, |
||||||||
|
2021 |
|
2020 |
|
Change |
||||
Total revenue |
$ |
4,603.9 |
|
|
4,056.6 |
|
|
13 |
% |
Operating revenue (non-GAAP) |
$ |
3,740.2 |
|
|
3,394.5 |
|
|
10 |
% |
|
|
|
|
|
|
||||
|
|
|
|
|
|
||||
Earnings (loss) from continuing operations |
$ |
201.2 |
|
|
(182.8 |
) |
|
NM |
|
Comparable earnings (loss) from continuing operations (non-GAAP) |
$ |
187.3 |
|
|
(121.6 |
) |
|
NM |
|
Net earnings (loss) |
$ |
199.9 |
|
|
(183.7 |
) |
|
NM |
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
||||
Earnings (loss) per common share (EPS) - Diluted |
|
|
|
|
|
||||
Continuing operations |
$ |
3.75 |
|
|
(3.50 |
) |
|
NM |
|
Comparable (non-GAAP) |
$ |
3.49 |
|
|
(2.33 |
) |
|
NM |
|
Net earnings (loss) |
$ |
3.73 |
|
|
(3.52 |
) |
|
NM |
|
Business Description
Ryder System, Inc. is a leading supply chain, dedicated transportation, and fleet management solutions company. Ryder’s stock (NYSE: R) is a component of the Dow Jones Transportation Average and the S&P MidCap 400® index. The company’s financial performance is reported in the following three, inter-related business segments:
For more information on Ryder System, Inc., visit investors.ryder.com and ryder.com.
Note: Regarding Forward-Looking Statements
Certain statements and information included in this news release are “forward-looking statements” under the Federal Private Securities Litigation Reform Act of 1995, including our forecast, expectations regarding market trends and economic environment; impact of the COVID-19 pandemic on market conditions, e-commerce trends, freight environment, earnings, depreciation, commercial rental demand and utilization, and used vehicle sales volume and pricing, expected benefits from our strategic investments and initiatives, including our multi-year maintenance cost-savings initiatives; expected benefits of lease pricing initiatives; implementation of our asset management strategy; performance, including sales and revenue growth, in our product lines and segments; residual values and depreciation expense; used vehicle inventory; rental utilization; free cash flow; operating cash flow; capital expenditures; fleet growth; and profitability of our Ryder Last Mile operations. Our forward-looking statements also include our estimates of the impact of our changes to residual value estimates on earnings and depreciation expense. The expected impact of the change in residual value estimates is based on our current assessment of the residual values and useful lives of revenue-earning equipment based on multi-year trends and our outlook for the expected near- and long-term used vehicle market. Our assessment is subject to risks, uncertainties, and assumptions as to future events that may not prove to be accurate. Factors that could cause actual results related to vehicle residual values to materially differ from estimates include changes in supply and demand, competitor pricing, regulatory requirements, driver shortages, changes in customer requirements and preferences, as well as changes in underlying assumption factors.
All of our forward-looking statements should be evaluated by considering the many risks and uncertainties inherent in our business that could cause actual results and events to differ materially from those in the forward-looking statements. Important factors that could cause such differences include, the effect of the COVID-19 pandemic; our ability to adapt to changing market conditions, lower than expected contractual sales, decreases in commercial rental demand or utilization or poor acceptance of rental pricing, declining market demand for or excess supply of used vehicles impacting current or estimated pricing and our anticipated proportion of retail versus wholesale sales; declining customer demand for our services; higher than expected maintenance costs; lower than expected benefits from our cost-savings initiatives; lower than expected benefits from our sales, marketing and new product initiatives; higher than expected costs related to our ERP implementation; setbacks in the economic market or in our ability to retain profitable customer accounts; impact of changing laws and regulations, difficulty in obtaining adequate profit margins for our services; inability to maintain current pricing levels due to soft economic conditions, business interruptions or expenditures due to labor disputes, severe weather or natural occurrences; competition from other service providers and new entrants; driver and technician shortages resulting in higher procurement costs and turnover rates; impact of worldwide semiconductor shortage, higher than expected bad debt reserves or write-offs; decrease in credit ratings; increased debt costs; adequacy of accounting estimates; higher than expected reserves and accruals particularly with respect to pension, taxes, insurance and revenue; impact of changes in our residual value estimates and accounting policies, including our depreciation policy; unanticipated changes in fuel prices; unanticipated currency exchange rate fluctuations; our ability to manage our cost structure; and the risks described in our filings with the Securities and Exchange Commission (SEC). The risks included here are not exhaustive. New risks emerge from time to time and it is not possible for management to predict all such risk factors or to assess the impact of such risks on our business. Accordingly, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Note: Regarding Non-GAAP Financial Measures
This news release includes certain non-GAAP financial measures as defined under SEC rules. Refer to Appendix - Non-GAAP Financial Measure Reconciliations at the end of the tables following this press release for reconciliations of the non-GAAP financial measures contained in this release to the nearest GAAP measure and why management believes that presentation of each measure provides useful information to investors. Additional information regarding non-GAAP financial measures as required by Regulation G and Item 10(e) of Regulation S-K can be found in our most recent Form 10-K, Form 10-Q and our Form 8-K filed as of the date of this release with the SEC, which are available at http://investors.ryder.com.
CONFERENCE CALL AND WEBCAST INFORMATION
Ryder’s earnings conference call and webcast is scheduled for July 28, 2021 at 11:00 a.m. ET. To join, click here.
LIVE AUDIO VIA PHONE
Toll Free Number: 888-352-6803
USA Toll Number: 323-701-0225
Audio Passcode: Ryder
Conference Leader: Bob Brunn
AUDIO REPLAY VIA PHONE
An audio replay of the call will be available one hour after call ends for 30 days.
Toll Free Number: 888-203-1112
USA Toll Number: 719-457-0820
Replay Passcode: 1420126
AUDIO REPLAY VIA MP3 DOWNLOAD
A podcast will be available within 24 hours after the end of the call. Click here then select Financials/Quarterly Reports and the date.
AUDIO & SLIDE REPLAY VIA INTERNET
An audio replay including the slide presentation will be available on the Internet within two hours following the call. Click here then select Financials/Quarterly Reports and the date.
Financial = ryder-financial
USA = ryder-usa
RYDER SYSTEM, INC. AND SUBSIDIARIES |
|||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - UNAUDITED |
|||||||||||||
Periods ended June 30, 2021 and 2020 |
|||||||||||||
(In millions, except per share amounts) |
|||||||||||||
|
Three Months |
|
Six Months |
||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||
|
|
|
|
|
|
|
|
||||||
Lease & related maintenance and rental revenues |
$ |
986.7 |
|
|
868.7 |
|
|
$ |
1,927.1 |
|
|
1,796.4 |
|
Services revenue |
1,276.1 |
|
|
942.3 |
|
|
2,441.6 |
|
|
2,054.5 |
|
||
Fuel services revenue |
119.4 |
|
|
84.4 |
|
|
235.1 |
|
|
205.7 |
|
||
Total revenues |
2,382.2 |
|
|
1,895.3 |
|
|
4,603.9 |
|
|
4,056.6 |
|
||
|
|
|
|
|
|
|
|
||||||
Cost of lease & related maintenance and rental |
708.7 |
|
|
775.4 |
|
|
1,438.9 |
|
|
1,593.6 |
|
||
Cost of services |
1,091.7 |
|
|
793.4 |
|
|
2,091.5 |
|
|
1,747.8 |
|
||
Cost of fuel services |
109.5 |
|
|
78.0 |
|
|
224.2 |
|
|
198.4 |
|
||
Other operating expenses |
33.5 |
|
|
29.8 |
|
|
67.4 |
|
|
63.4 |
|
||
Selling, general and administrative expenses |
269.3 |
|
|
208.6 |
|
|
511.0 |
|
|
432.7 |
|
||
Non-operating pension costs, net |
(0.4 |
) |
|
0.9 |
|
|
(0.4 |
) |
|
2.2 |
|
||
Used vehicle sales, net |
(51.6 |
) |
|
9.5 |
|
|
(80.5 |
) |
|
30.2 |
|
||
Interest expense |
54.2 |
|
|
67.3 |
|
|
108.9 |
|
|
129.9 |
|
||
Miscellaneous (income) loss, net |
(43.8 |
) |
|
(9.9 |
) |
|
(49.2 |
) |
|
(1.3 |
) |
||
Restructuring and other items, net |
7.7 |
|
|
37.2 |
|
|
18.3 |
|
|
68.1 |
|
||
|
2,178.7 |
|
|
1,990.1 |
|
|
4,330.0 |
|
|
4,265.0 |
|
||
|
|
|
|
|
|
|
|
||||||
Earnings (loss) from continuing operations before income taxes |
203.6 |
|
|
(94.8 |
) |
|
273.8 |
|
|
(208.4 |
) |
||
Provision for (benefit from) income taxes |
54.0 |
|
|
(21.1 |
) |
|
72.7 |
|
|
(25.6 |
) |
||
Earnings (loss) from continuing operations |
149.6 |
|
|
(73.7 |
) |
|
201.2 |
|
|
(182.8 |
) |
||
Loss from discontinued operations, net of tax |
(0.5 |
) |
|
(0.4 |
) |
|
(1.2 |
) |
|
(0.9 |
) |
||
Net earnings (loss) |
$ |
149.1 |
|
|
(74.1 |
) |
|
$ |
199.9 |
|
|
(183.7 |
) |
|
|
|
|
|
|
|
|
||||||
Earnings (loss) per common share — Diluted |
|
|
|
|
|
|
|
||||||
Continuing operations |
$ |
2.78 |
|
|
(1.41 |
) |
|
$ |
3.75 |
|
|
(3.50 |
) |
Discontinued operations |
(0.01 |
) |
|
(0.01 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
||
Net earnings (loss) |
$ |
2.77 |
|
|
(1.42 |
) |
|
$ |
3.73 |
|
|
(3.52 |
) |
|
|
|
|
|
|
|
|
||||||
Earnings (loss) available to common shareholders |
|
|
|
|
|
|
|
||||||
Earnings (loss) from continuing operations |
$ |
149.6 |
|
|
(73.7 |
) |
|
$ |
201.2 |
|
|
(182.8 |
) |
Less: Distributed and undistributed earnings allocated to unvested stock |
(0.7 |
) |
|
(0.1 |
) |
|
(0.9 |
) |
|
(0.2 |
) |
||
Earnings (loss) from continuing operations available to common stockholders |
$ |
148.9 |
|
|
(73.8 |
) |
|
$ |
200.2 |
|
|
(183.1 |
) |
|
|
|
|
|
|
|
|
||||||
Weighted average common shares outstanding — Diluted |
53.6 |
|
|
52.4 |
|
|
53.4 |
|
|
52.3 |
|
||
|
|
|
|
|
|
|
|
||||||
EPS from continuing operations |
$ |
2.78 |
|
|
(1.41 |
) |
|
$ |
3.75 |
|
|
(3.50 |
) |
Non-operating pension costs, net |
(0.02 |
) |
|
— |
|
|
(0.03 |
) |
|
— |
|
||
Restructuring and other, net |
0.06 |
|
|
0.30 |
|
|
0.10 |
|
|
0.48 |
|
||
ERP implementation costs |
0.07 |
|
|
0.16 |
|
|
0.18 |
|
|
0.30 |
|
||
Gains on sale of properties |
(0.50 |
) |
|
— |
|
|
(0.52 |
) |
|
— |
|
||
Tax adjustments, net |
0.01 |
|
|
— |
|
|
0.01 |
|
|
0.39 |
|
||
Comparable EPS from continuing operations * |
$ |
2.40 |
|
|
(0.95 |
) |
|
$ |
3.49 |
|
|
(2.33 |
) |
|
|
|
|
|
|
|
|
||||||
* Non-GAAP financial measure. A reconciliation of GAAP EPS from continuing operations to comparable EPS from continuing operations is set forth in this table. |
|||||||||||||
Note: Amounts may not be additive due to rounding. |
|||||||||||||
RYDER SYSTEM, INC. AND SUBSIDIARIES |
||||||
CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED |
||||||
(In millions) |
||||||
|
June 30,
|
|
December 31,
|
|||
|
|
|
|
|||
Assets: |
|
|
|
|||
Cash and cash equivalents |
$ |
268.0 |
|
|
151.3 |
|
Other current assets |
1,520.9 |
|
|
1,444.2 |
|
|
Revenue earning equipment, net |
8,531.1 |
|
|
8,777.0 |
|
|
Operating property and equipment, net |
932.5 |
|
|
927.1 |
|
|
Other assets |
1,650.5 |
|
|
1,632.4 |
|
|
|
$ |
12,903.0 |
|
|
12,932.0 |
|
|
|
|
|
|||
Liabilities and shareholders' equity: |
|
|
|
|||
Current liabilities |
$ |
1,693.4 |
|
|
1,536.6 |
|
Total debt (including current portion) |
6,235.7 |
|
|
6,610.2 |
|
|
Other non-current liabilities (including deferred income taxes) |
2,555.8 |
|
|
2,529.6 |
|
|
Shareholders' equity |
2,418.2 |
|
|
2,255.6 |
|
|
|
$ |
12,903.0 |
|
|
12,932.0 |
|
SELECTED KEY RATIOS AND METRICS |
|||||
|
June 30,
|
|
December 31,
|
||
|
|
|
|
||
Debt to equity |
258 |
% |
|
293 |
% |
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||
|
|
|
|
|
|
|
|
||||||
Comparable EBITDA * |
$ |
624.1 |
|
|
547.6 |
|
|
$ |
1,191.5 |
|
|
1,065.3 |
|
Effective interest rate (average cost of debt) |
3.4 |
% |
|
3.3 |
% |
|
3.4 |
% |
|
3.2 |
% |
||
Media:
Amy Federman
(305) 500-4989
Investor Relations:
Bob Brunn
(305) 500-4053
TULSA, Okla.--(BUSINESS WIRE)--Williams’ (NYSE: WMB) board of directors has approved a regular dividend of $0.41 per share, or $1.64 annualized, on the company’s common stock, payable on Sept. 27, 2021, to holders of record at the close of business on Sept. 10, 2021.
The dividend is consistent with the second-quarter 2021 dividend and is a 2.5% increase from Williams’ third-quarter 2020 quarterly dividend of $0.40 per share, paid in September 2020.
Some portion of this distribution may be considered a return of capital for tax purposes. Additional information regarding return of capital distributions is available at Williams’ investor relations website.
Williams has paid a common stock dividend every quarter since 1974.
About Williams
Williams (NYSE: WMB) is committed to being the leader in providing infrastructure that safely delivers natural gas products to reliably fuel the clean energy economy. Headquartered in Tulsa, Oklahoma, Williams is an industry-leading, investment grade C-Corp with operations across the natural gas value chain including gathering, processing, interstate transportation and storage of natural gas and natural gas liquids. With major positions in top U.S. supply basins, Williams connects the best supplies with the growing demand for clean energy. Williams owns and operates more than 30,000 miles of pipelines system wide – including Transco, the nation’s largest volume and fastest growing pipeline – and handles approximately 30 percent of the natural gas in the United States that is used every day for clean-power generation, heating and industrial use. www.williams.com
Portions of this document may constitute “forward-looking statements” as defined by federal law. Although the company believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. Any such statements are made in reliance on the “safe harbor” protections provided under the Private Securities Reform Act of 1995. Additional information about issues that could lead to material changes in performance is contained in the company’s annual and quarterly reports filed with the Securities and Exchange Commission.
MEDIA:
This email address is being protected from spambots. You need JavaScript enabled to view it.
(800) 945-8723
INVESTOR CONTACT:
Danilo Juvane
(918) 573-5075
Grace Scott
(918) 573-1092
BUFFALO, N.Y.--(BUSINESS WIRE)--Viridi Parente, Inc., a developer of innovative battery technology that can be safely installed and operated in nearly any environment or location, announced today that Steve Finch is joining the company as president of manufacturing and community engagement. Finch, a Buffalo native and well-known business and civic leader throughout Western New York, will leverage more than 40 years of automotive operations and management experience with General Motors (GM) to guide the manufacturing of green technology that generates employment and training opportunities while fostering strong community relationships.
“Steve has the extraordinary ability to focus on complex problems and lead organizations through constantly changing environments while continuing to make sure his team and the community have opportunities to grow and develop. His approach will benefit Viridi Parente as we continue innovating green tech solutions that benefit all our stakeholders,” said Jon M. Williams, founder and CEO of Viridi Parente.
Finch established his expertise in all facets of automotive manufacturing over four decades with GM, working his way up from the assembly plant floor to management positions. He most recently served as plant manager of GM’s Powertrain plant in his hometown of Tonawanda, N.Y., where he served from 2007 until his retirement in 2017. During this timeframe, he oversaw a team of more than 1,600 employees through economic downturns, new engine design initiatives and a multi-billion-dollar plant renovation. Before returning to Tonawanda, Finch managed GM’s engine plant in Flint, Mich.
Following his retirement from GM, Finch was appointed senior vice president of automotive services for AAA Western and Central New York, a not-for-profit organization that provides its members with travel, insurance, driver training, and automotive services. He served on the Auto Club’s board of directors from 2011-2018.
Throughout Western New York, Finch is a highly respected community leader, advocate, and role model. He currently serves as chair of the board of directors for the Buffalo Urban League, a nonprofit that empowers African Americans, other minorities, and disadvantaged individuals. He is also a former board chair for United Way of Buffalo & Erie County. In 2003, Finch earned the Award of Excellence from Buffalo Black Achievers and was declared Buffalo’s 34th most influential person in 2017.
Finch earned a bachelor’s degree in electrical engineering from Kettering University (formerly the General Motors Institute) in Flint, Mich. While pursuing his education, Finch was a member of the Engineering Society of Detroit and a board member of the Michigan Technical Education Center at Mott Community College.
Viridi Parente deploys safe lithium-ion battery technology into applications that have been historically dominated by fossil fuel energy sources. The company’s architecture for its Green Machine mobile energy solution for the industrial market and its Volta Energy Products energy storage system for industrial, medical, commercial, municipal, and residential users is the only design in the market that can be safely installed and operated in nearly any environment or location. The company’s 42-acre campus, a former GM manufacturing facility, is bringing green jobs and workforce training opportunities to one of the nation’s most impoverished zip codes while also serving as a model of how adaptive reuse projects can spur the economy and revitalize communities.
To view Steve Finch’s headshot, please visit https://www.dropbox.com/sh/yky25wpsvgtjwrg/AADkcSuXAgbrVfTqeiYknvIsa?dl=0
About Viridi Parente
Viridi Parente (Viridi) is a disruptive energy company in Buffalo, New York, that is changing the way we use energy, improving systems, communities, and lives. Viridi deploys safe battery technology into applications that have been historically dominated by fossil fuel energy sources. Its innovative architecture is constructed from materials used for aerospace and military applications and is the only design in the market that can be safely installed and operated in nearly any environment or location. Through its subsidiary, Green Machine Equipment, Viridi is bringing quiet, fully renewable mobile energy solutions to products in construction equipment, waste disposal, last-mile delivery, and other portable industrial markets. Through its subsidiary, Volta Energy Products, Viridi brings stationary, point-of-use storage technology that is safe, locatable, and reliable to industrial, medical, commercial, municipal, and residential building applications. Learn more at: www.viridiparente.com.
Media Contact:
Mercom Communications
Wendy Prabhu
Tel: 1-512-215-4452
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Operator’s Flex Alert Requests Voluntary Conservation from 4 p.m. to 9 p.m. Today
You Can Take Simple Actions to Protect Grid Reliability
SAN FRANCISCO--(BUSINESS WIRE)--With higher than normal temperatures forecast in some parts of California today, the state’s power grid operator is asking residents statewide to voluntarily conserve electricity this afternoon and evening when the grid is most stressed due to higher demand and energy supplies are tighter.
The Flex Alert, called by the California Independent System Operator (CAISO), was issued yesterday and will be in effect today from 4 p.m. to 9 p.m. The grid operator is predicting an increase in electricity demand, primarily from air conditioning use.
The grid operator is asking all Californians to reduce electricity use during a Flex Alert to prevent further emergency measures, including rotating power outages.
Saving Energy at Home
Here are ways Pacific Gas and Electric Company (PG&E) customers can cut their power use and help keep the lights (and air conditioning) on for everyone:
Saving Energy at Your Office or Business
If you’re working in an office setting, CAISO recommends the following:
PG&E’s Demand Response programs offer incentives for business owners and residential customers who curtail their energy use during times of peak demand. PG&E has several of these programs, totaling about 261,000 enrolled PG&E customers.
PG&E’s website includes detailed information on these programs, which allow residential customers and business customers to save energy and money.
PG&E is prepared for the heat and, based on forecasts, doesn’t anticipate issues meeting increased demand for power.
Also, at this time, the grid operator has not indicated that it plans to call for rotating outages. PG&E does not project a need for a Public Safety Power Shutoff due to this weather, but the company’s meteorology team will continuously monitor conditions.
PG&E also urges customers to stay safe during extreme heat. The company funds cooling centers throughout its service area to help customers escape the heat and cool off. To find a center near you click here or call 1-877-474-3266.
About PG&E
Pacific Gas and Electric Company, a subsidiary of PG&E Corporation (NYSE:PCG), is a combined natural gas and electric utility serving more than 16 million people across 70,000 square miles in Northern and Central California. For more information, visit pge.com and pge.com/news.
Media Relations:
415-973-5930
New bio-based surfactant TegraSurf displays versatility while reducing harmful chemicals
CRESSON, Texas--(BUSINESS WIRE)--Integrity BioChem (IBC), a technology-driven company developing next-generation biopolymers, today announced the release of TegraSurf, a renewable line of water-based bio-based surfactants engineered for energy, mining, agricultural, water treatment and other industrial applications. Built with sustainable vegetative materials, this first-of-its-kind technology improves the carbon footprint of production without compromising product performance.
TegraSurf functions as effectively as a synthetic (mineral oil-based) surfactant and is produced faster and at larger volumes with lower costs than other bio-based offerings in the market. TegraSurf is used in formulations to reduce or replace leading non-ionic surfactants, such as nonylphenols and alcohol ethoxylates. The product reports a Renewable Carbon Index (RCI) greater than 90% and is certified Readily Biodegradable by OECD 301B protocol. TegraSurf does not exist in the environment after 90 days, which allows for safer and healthier conditions for nearby communities and enables formulators to meet industry sustainability standards.
“Each time formulators add TegraSurf to a blend, large amounts of synthetic chemistry are removed, helping manufacturers replace untold gallons of harmful products with gallons of environmentally friendly products,” said Jimmy Jett, CEO of IBC. “TegraSurf performs like a synthetic with all the environmental benefits of a bio-based surfactant – it’s a game-changer in the biochemical industry.”
“TegraSurf is a product that checks a lot of boxes for our sustainability efforts, and we’re happy to be a partner of IBC,” said Greg McKee, Director of Supply Chain at Liberty Oilfield Services.
In addition to being sustainably manufactured, TegraSurf is a more versatile and efficient product than many synthetic alternatives. With a hydrophilic-lipophilic balance (HLB) tunable from 7 to 19, TegraSurf can be used in a wide variety of applications, something bio-based surfactants do not commonly have the ability to do. This versatility, paired with its cost-effective production process, positions TegraSurf as a valuable asset at an affordable price point.
TegraSurf was engineered alongside EdenSurf, IBC’s bio-based surfactant for the personal care and household industries. The development of these two technologies reflects increasing customer demand for sustainable solutions, and IBC is proud to lead this market with its renewable innovations.
About Integrity BioChem
Founded in 2017, Integrity Bio-Chemicals (IBC) is a technology-driven company with a deep bench of industry experts producing next-generation modified biopolymers for the energy, mining, industrial, and household and personal care markets using renewable and sustainable practices. IBC is first to market with a new category of patent-pending, high-performance surfactants, created with natural sources and capable of faster production cycles at larger scales and lower costs. Our commitment to transparency and innovation brings world-class service to our customers worldwide.
Chad Hall
Vice President, Production Enhancement
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HOUSTON--(BUSINESS WIRE)--Safe Marine Transfer, LLC. (SMT) announced that LiquidPower Specialty Products Inc. (LSPI) has taken an equity interest in SMT and has entered a strategic alliance to deliver LSPI’s market leading drag reducing agents (DRA) subsea via SMT’s patented all electric dual barrier subsea storage and delivery technologies. Drag reducing agents (DRA), also known as flow improvers, are long-chain hydrocarbon polymers that act as turbulence inhibitors along the pipe wall to decrease the amount of energy lost in turbulent activity.
The introduction of DRA at the subsea well/drill center has the potential to significantly increase production in a cost-effective manner, by increasing flow rates in existing subsea production lines, subsea gathering lines, and subsea trunk lines. Marina Kaplan, LSPI’s Vice President of Strategy and Corporate Development, “SMT presents LSPI with a unique opportunity to leverage over four decades of pioneering technology, product development and global delivery to a completely new market where we have the potential to significantly increase subsea well tieback production.”
Additionally, SMT announced that Subsea 7 has taken minority equity interest in SMT and entered a Cooperation Agreement to assist in the delivery of SMT’s services and LSPI DRA on a global basis. Mr. Graeme Kinnell, Subsea 7 Board Observer, “Subsea 7 is pleased to be positioned to offer new and unique services to our subsea oil company clients via our relationship with SMT and LSPI. This investment helps support our vision to lead the way in the delivery of offshore projects and services for the energy industry.”
SMT’s CEO and co-founder Art J. Schroeder, Jr., “We are very pleased that these two world-class companies have chosen SMT as a partner to expand their range of products and services. LSPI, as a global leader in drag reduction technology, brings a proven value-add product. Subsea 7, with its global fleet of marine equipment, marine support, manufacturing, and assembly sites offers an established global delivery team. We look forward to jointly working with our subsea oil company customers to deliver additional value in their subsea tiebacks.”
About LiquidPower Specialty Products Inc. (LSPI)
LiquidPower Specialty Products Inc. (LSPI), a Berkshire Hathaway Company, is the global leader in the science and application of drag reduction, with over 40 years of experience. LSPI specializes in DRA technology by maximizing the flow potential of pipelines, increasing operational flexibility and throughput capacity. Through its partnership with SMT, LSPI will provide DRA for subsea application to significantly increase production by creating higher flow rates in existing subsea production lines, subsea gathering lines, and subsea trunk lines. For more information, visit www.liquidpower.com
About Subsea 7
Subsea 7 is a global leader in the delivery of offshore projects and services for the evolving energy industry. Subsea 7 creates sustainable value by being the industry’s partner and employer of choice in delivering the efficient offshore solutions the world needs. For more information, visit www.Subsea7.com
About SMT
Founded in Houston, Texas, in 2012 by Jim Chitwood and Art Schroeder, SMT grew out of a need identified by the oil company driven DeepStar® consortium. Initial partial funding was provided by the National Energy Technology Laboratory (NETL), United States Department of Energy through the Research Partnership to Secure Energy for America (RPSEA), DeepStar® in-kind contributions, and generous industry support. SMT is now focused exclusively on DRA delivery with partners LSPI and Subsea 7. For more information, please visit www.SafeMarineTransfer.com
Fernanda Soares
Marketing Communications Manager, LiquidPower Specialty Products Inc. (LSPI)
281-948-4981 | This email address is being protected from spambots. You need JavaScript enabled to view it.
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