ADELAIDE, Australia--(BUSINESS WIRE)--Sunverge Energy, provider of an industry-leading distributed energy resource (DER) control, orchestration, and aggregation platform, and ENGIE announced the deployment of a vehicle-to-grid (V2G) virtual power plant (VPP) that will support Flinders University’s electric vehicle business fleet. The project consists of Wallbox Quasar bi-directional EV charging systems, most of which will be aggregated to utilize the V2G services and the remaining to be used for fast-charging EV solutions. The project was developed by ENGIE to demonstrate the commercial application of bi-directional EV smart charging systems in support of the university’s business fleet electrification, microgrid operations, wholesale market participation, as well as wider market adoption. ENGIE received funding from the South Australian Government’s EV Smart Charging and V2G Trials Program as part of the development of the project.
“We’re very excited to partner with Flinders University and Sunverge on this groundbreaking and innovative project,” said Greg Schumann, Director of Transport & Green Mobility, ENGIE Australia & New Zealand. “This V2G VPP showcases the flexibility and reliability that V2X services can provide for fleet operators and grid operators alike.”
In addition to serving the transportation needs of the university’s faculty and students, the project leverages Sunverge’s DER control, orchestration, and aggregation platform to operate in the AEMO market as a multi-service VPP that delivers a variety of grid services including wholesale price arbitrage, peak demand management, and optimization of behind-the-meter generation supply and local demand.
“The electrification of fleets promises to not only decarbonize much of the transportation sector, but also provide new sources of value for fleet operators and the electric grid through the control, optimization and aggregation of DERs, in this case fleet of electric vehicle batteries and solar energy,” said Martin Milani, CEO of Sunverge. “As government, businesses, and other organizations continue to electrify large fleets, this project demonstrates the commercial potential of aggregating and utilizing this new and game changing source of DERs.”
About ENGIE
ENGIE Australia & New Zealand, a joint venture with Mitsui & Co Ltd, is accelerating the transition to a carbon-neutral economy by providing innovative, sustainable energy solutions to households, businesses, communities and cities. We have 1,100MW of low-carbon generation capacity and more than 2,00MW of renewable energy under development supporting the Group’s ambition of 50 GW in 2025. Our retail business, Simply Energy, has more than 740,000 gas and electricity customer accounts. We’re also delivering sustainability solutions to cities, precincts, and universities through our ENGIE Net Zero Energy Solutions team. ENGIE’s trading arm, Global Energy Management & Sales (GEMS) provides long-energy supply agreements, energy trading, risk management and asset management services to business customers across the ENGIE ANZ portfolio.
About Sunverge
Sunverge Energy provides the leading open dynamic platform for Virtual Power Plants (VPP), a grid-aware and dynamic power source built from the aggregation of behind-the-meter DERs (distributed energy resources). The Sunverge real time DER control, orchestration and aggregation platform is unique in providing dynamic multi-objective optimization of services on both sides of the meter, helping customers with intelligent management of their own renewable energy generation and utilities with greater flexibility in managing their infrastructure investments, reducing generation costs, increasing system reliability and meeting their renewable energy goals. Together with the Sunverge Infinity edge controller, the Sunverge VPP platform provides intelligent dynamic near real-time control over decentralized energy resources that is efficient, reliable, and responsive to utilities and their customers. For more information, please visit http://www.sunverge.com/.
Jared Blanton
Antenna
This email address is being protected from spambots. You need JavaScript enabled to view it.
415.712.1417
HARTFORD, Conn. & BOSTON--(BUSINESS WIRE)--Eversource Energy (NYSE: ES) today reported earnings in the third quarter of 2022 of $349.4 million, or $1.00 per share, compared with earnings of $283.2 million, or $0.82 per share, in the third quarter of 2021. Eversource Energy earnings totaled $1,084.7 million, or $3.13 per share, in the first nine months of 2022, compared with earnings of $913.8 million, or $2.65 per share, in the first nine months of 2021.
Results for the third quarter of 2022 included $2.2 million of after-tax transition and transaction-related charges, primarily related to the October 2020 acquisition of the assets of the former Columbia Gas of Massachusetts. Those costs totaled $13 million in the first nine months of 2022. After-tax transition charges totaled $4.3 million in the third quarter of 2021 and $17.3 million in the first nine months of 2021. Additionally, third quarter 2021 results included after-tax charges related to the settlement of multiple regulatory dockets concerning Eversource Energy’s subsidiary, The Connecticut Light and Power Company (CL&P). Those after-tax charges totaled $63.2 million in the third quarter of 2021 and $85.8 million through the first nine months of 2021. Excluding the charges noted above, Eversource Energy earned $351.6 million1, or $1.01 per share1, in the third quarter of 2022 and $1,097.7 million1, or $3.17 per share1, in the first nine months of 2022. Excluding the charges noted above, Eversource earned $350.7 million1, or $1.02 per share1, in the third quarter of 2021 and $1,016.9 million1, or $2.95 per share1, in the first nine months of 2021.
Eversource Energy today reaffirmed its 2022 earnings per share (EPS) projection of $4.04 to $4.14 per share, which excludes the 2022 charges noted above. Eversource Energy also today reaffirmed its long-term EPS growth rate from its existing regulated businesses in the upper half of 5-7 percent, using the $3.86 per share1 earned in 2021 as a base.
“Operationally, we’ve had an excellent first nine months of 2022. Our financial performance has been consistent with our projection for the year, despite increased pressures from rising interest rates, and our reliability indices remain among the top in the industry,” said Joe Nolan, Eversource Energy president and chief executive officer. “In addition, our safety ratings are strong, and our diversity and sustainability metrics are favorable.”
Electric Transmission
Eversource Energy’s transmission segment earned $155.8 million in the third quarter of 2022 and $455.8 million in the first nine months of 2022, compared with earnings of $139.4 million in the third quarter of 2021 and $412.4 million in the first nine months of 2021. Transmission segment results improved due to a higher level of investment in Eversource’s electric transmission system.
Electric Distribution
Eversource Energy’s electric distribution segment earned $225.1 million in the third quarter of 2022 and $495 million in the first nine months of 2022, compared with earnings of $213.6 million1 in the third quarter of 2021 and $451.2 million1 in the first nine months of 2021, excluding the 2021 CL&P charges noted above. Improved third-quarter results were due primarily to higher revenues and lower pension expense, partially offset by higher non-tracked operation and maintenance (O&M) expense, property taxes and depreciation expense.
Natural Gas Distribution
Eversource Energy’s natural gas distribution segment lost $24.6 million in the third quarter of 2022 and earned $147.2 million in the first nine months of 2022, compared with a loss of $22 million in the third quarter of 2021 and earnings of $129.6 million in the first nine months of 2021. Lower third-quarter results were primarily due to higher non-tracked O&M, property taxes, depreciation and interest expense, partially offset by higher revenues and lower pension expense.
Water Distribution
Eversource’s water distribution segment earned $16.7 million in the third quarter of 2022 and $29.4 million in the first nine months of 2022, compared with earnings of $17.5 million in the third quarter of 2021 and $30 million in the first nine months of 2021. Lower results were primarily due to higher O&M driven by the increased cost of water treatment chemicals.
Eversource Parent and Other Companies
Eversource parent and other companies, excluding transaction and transition-related costs, lost $21.4 million1 in the third quarter of 2022 and $29.7 million1 in the first nine months of 2022, compared with earnings of $2.2 million1 in the third quarter of 2021 and a loss of $6.3 million1 in the first nine months of 2021. Lower results primarily reflect higher interest expense and a higher effective income tax rate.
The following table reconciles 2022 and 2021 third quarter and first nine months earnings per share:
|
|
Third Quarter |
First Nine Months |
|||||||
2021 |
Reported GAAP EPS |
$0.82 |
|
$2.65 |
|
|||||
|
Higher electric transmission earnings in 2022, net of dilution |
0.04 |
|
0.12 |
|
|||||
Higher natural gas revenues and lower pension expense in 2022, offset by higher O&M, property taxes, depreciation and interest, net of dilution |
(0.01 |
) |
0.05 |
|||||||
Higher electric distribution revenues and lower pension expense in 2022, partially offset by higher O&M, depreciation, and property taxes, net of dilution |
0.03 |
0.12 |
||||||||
|
Parent & Other, including a higher effective income tax rate |
(0.07 |
) |
(0.07 |
) |
|||||
|
Absence in 2022 of CL&P regulatory settlement charges |
0.19 |
|
0.25 |
|
|||||
|
Charges related to transactions in 2022, compared with 2021 |
0.00 |
|
0.01 |
|
|||||
2022 |
Reported GAAP EPS |
$1.00 |
|
$3.13 |
|
|||||
Financial results by segment for the third quarter and first nine months of 2022 and 2021 are noted below:
Three months ended:
(in millions, except EPS) |
September 30,
|
September 30,
|
Increase/
|
2022 EPS1 |
||||
Electric Transmission |
$155.8 |
|
$139.4 |
|
$16.4 |
|
$0.44 |
|
Electric Distribution, ex. 2021 settlement1 |
225.1 |
|
213.6 |
|
11.5 |
|
0.65 |
|
Natural Gas Distribution |
(24.6 |
) |
(22.0 |
) |
(2.6 |
) |
(0.07 |
) |
Water Distribution |
16.7 |
|
17.5 |
|
(0.8 |
) |
0.05 |
|
Eversource Parent and Other Companies1 |
(21.4 |
) |
2.2 |
|
(23.6 |
) |
(0.06 |
) |
Charges related to 2021 regulatory settlement |
0.0 |
|
(63.2 |
) |
63.2 |
|
0.00 |
|
Transition/transaction-related charges |
(2.2 |
) |
(4.3 |
) |
2.1 |
|
(0.01 |
) |
Reported Earnings |
$349.4 |
|
$283.2 |
|
$66.2 |
|
$1.00 |
|
Nine months ended:
(in millions, except EPS) |
September 30,
|
September 30,
|
Increase/
|
2022 EPS1 |
||||
Electric Transmission |
$455.8 |
|
$412.4 |
|
$43.4 |
|
$1.32 |
|
Electric Distribution, ex. 2021 settlement1 |
495.0 |
|
451.2 |
|
43.8 |
|
1.43 |
|
Natural Gas Distribution |
147.2 |
|
129.6 |
|
17.6 |
|
0.42 |
|
Water Distribution |
29.4 |
|
30.0 |
|
(0.6 |
) |
0.09 |
|
Eversource Parent and Other Companies1 |
(29.7 |
) |
(6.3 |
) |
(23.4 |
) |
(0.09 |
) |
Charges related to 2021 regulatory settlement |
0.0 |
|
(85.8 |
) |
85.8 |
|
0.00 |
|
Transition/transaction-related charges |
(13.0 |
) |
(17.3 |
) |
4.3 |
|
(0.04 |
) |
Reported Earnings |
$1,084.7 |
|
$913.8 |
|
$170.9 |
|
$3.13 |
|
Eversource Energy has approximately 348 million common shares outstanding and operates New England’s largest energy delivery system. It serves approximately 4.4 million electric, natural gas and water customers in Connecticut, Massachusetts and New Hampshire.
Note: Eversource Energy will webcast a conference call with senior management on November 3, 2022, beginning at 9 a.m. Eastern Time. The webcast and associated slides can be accessed through Eversource Energy’s website at www.eversource.com. |
1 All per-share amounts in this news release are reported on a diluted basis. The only common equity securities that are publicly traded are common shares of Eversource Energy. The earnings and EPS of each business do not represent a direct legal interest in the assets and liabilities of such business, but rather represent a direct interest in Eversource Energy's assets and liabilities as a whole. EPS by business is a financial measure that is not recognized under generally accepted accounting principles (non-GAAP) and is calculated by dividing the net income or loss attributable to common shareholders of each business by the weighted average diluted Eversource Energy common shares outstanding for the period. Earnings discussions also include non-GAAP financial measures referencing 2022 and 2021 earnings and EPS excluding certain transaction and transition costs, and 2021 earnings and EPS excluding charges at CL&P related to an October 2021 settlement agreement that included credits to customers and funding of various customer assistance initiatives and a 2021 storm performance penalty imposed on CL&P by the PURA. Eversource Energy uses these non-GAAP financial measures to evaluate and provide details of earnings results by business and to more fully compare and explain 2022 and 2021 results without including these items. This information is among the primary indicators management uses as a basis for evaluating performance and planning and forecasting of future periods. Management believes the impacts of transaction and transition costs, the CL&P October 2021 settlement agreement in Connecticut and the 2021 storm performance penalty imposed on CL&P by the PURA, are not indicative of Eversource Energy’s ongoing costs and performance. Management views these charges as not directly related to the ongoing operations of the business and therefore not an indicator of baseline operating performance. Due to the nature and significance of the effect of these items on net income attributable to common shareholders and EPS, management believes that the non-GAAP presentation is a more meaningful representation of Eversource Energy’s financial performance and provides additional and useful information to readers in analyzing historical and future performance of the business. These non-GAAP financial measures should not be considered as alternatives to Eversource Energy’s consolidated net income attributable to common shareholders or EPS determined in accordance with GAAP as indicators of Eversource Energy’s operating performance.
This document includes statements concerning Eversource Energy’s expectations, beliefs, plans, objectives, goals, strategies, assumptions of future events, future financial performance or growth and other statements that are not historical facts. These statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Generally, readers can identify these forward-looking statements through the use of words or phrases such as “estimate,” “expect,” “anticipate,” “intend,” “plan,” “project,” “believe,” “forecast,” “should,” “could” and other similar expressions. Forward-looking statements involve risks and uncertainties that may cause actual results or outcomes to differ materially from those included in the forward-looking statements. Factors that may cause actual results to differ materially from those included in the forward-looking statements include, but are not limited to: cyberattacks or breaches, including those resulting in the compromise of the confidentiality of our proprietary information and the personal information of our customers; disruptions in the capital markets or other events that make our access to necessary capital more difficult or costly; the negative impacts of the novel coronavirus (COVID-19) pandemic, including any new or emerging variants, on our customers, vendors, employees, regulators, and operations; changes in economic conditions, including impact on interest rates, tax policies, and customer demand and payment ability; ability or inability to commence and complete our major strategic development projects and opportunities; acts of war or terrorism, physical attacks or grid disturbances that may damage and disrupt our electric transmission and electric, natural gas, and water distribution systems; actions or inaction of local, state and federal regulatory, public policy and taxing bodies; substandard performance of third-party suppliers and service providers; fluctuations in weather patterns, including extreme weather due to climate change; changes in business conditions, which could include disruptive technology or development of alternative energy sources related to our current or future business model; contamination of, or disruption in, our water supplies; changes in levels or timing of capital expenditures; changes in laws, regulations or regulatory policy, including compliance with environmental laws and regulations; changes in accounting standards and financial reporting regulations; actions of rating agencies; and other presently unknown or unforeseen factors.
Other risk factors are detailed in Eversource Energy’s reports filed with the Securities and Exchange Commission (SEC). They are updated as necessary and available on Eversource Energy’s website at www.eversource.com and on the SEC’s website at www.sec.gov. All such factors are difficult to predict and contain uncertainties that may materially affect Eversource Energy’s actual results, many of which are beyond our control. You should not place undue reliance on the forward-looking statements, as each speaks only as of the date on which such statement is made, and, except as required by federal securities laws, Eversource Energy undertakes no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events.
| EVERSOURCE ENERGY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) |
|||||||||||
|
|
|
|
||||||||
|
For the Three Months Ended September 30, |
|
For the Nine Months Ended September 30, |
||||||||
(Thousands of Dollars, Except Share Information) |
2022 |
|
2021 |
|
2022 |
|
2021 |
||||
|
|
|
|
|
|
|
|
||||
Operating Revenues |
$ |
3,215,645 |
|
$ |
2,432,794 |
|
$ |
9,259,596 |
|
$ |
7,381,172 |
|
|
|
|
|
|
|
|
||||
Operating Expenses: |
|
|
|
|
|
|
|
||||
Purchased Power, Fuel and Transmission |
|
1,388,041 |
|
|
880,639 |
|
|
3,718,278 |
|
|
2,529,217 |
Operations and Maintenance |
|
454,289 |
|
|
389,065 |
|
|
1,378,897 |
|
|
1,265,754 |
Depreciation |
|
302,143 |
|
|
276,846 |
|
|
885,711 |
|
|
822,197 |
Amortization |
|
111,287 |
|
|
45,236 |
|
|
418,644 |
|
|
158,860 |
Energy Efficiency Programs |
|
162,545 |
|
|
143,796 |
|
|
498,708 |
|
|
460,814 |
Taxes Other Than Income Taxes |
|
240,047 |
|
|
213,881 |
|
|
683,441 |
|
|
623,827 |
Total Operating Expenses |
|
2,658,352 |
|
|
1,949,463 |
|
|
7,583,679 |
|
|
5,860,669 |
Operating Income |
|
557,293 |
|
|
483,331 |
|
|
1,675,917 |
|
|
1,520,503 |
Interest Expense |
|
178,174 |
|
|
147,962 |
|
|
491,509 |
|
|
431,162 |
Other Income, Net |
|
89,831 |
|
|
43,768 |
|
|
255,253 |
|
|
124,588 |
Income Before Income Tax Expense |
|
468,950 |
|
|
379,137 |
|
|
1,439,661 |
|
|
1,213,929 |
Income Tax Expense |
|
117,661 |
|
|
94,091 |
|
|
349,305 |
|
|
294,461 |
Net Income |
|
351,289 |
|
|
285,046 |
|
|
1,090,356 |
|
|
919,468 |
Net Income Attributable to Noncontrolling Interests |
|
1,880 |
|
|
1,880 |
|
|
5,639 |
|
|
5,639 |
Net Income Attributable to Common Shareholders |
$ |
349,409 |
|
$ |
283,166 |
|
$ |
1,084,717 |
|
$ |
913,829 |
|
|
|
|
|
|
|
|
||||
Basic Earnings Per Common Share |
$ |
1.01 |
|
$ |
0.82 |
|
$ |
3.13 |
|
$ |
2.66 |
|
|
|
|
|
|
|
|
||||
Diluted Earnings Per Common Share |
$ |
1.00 |
|
$ |
0.82 |
|
$ |
3.13 |
|
$ |
2.65 |
|
|
|
|
|
|
|
|
||||
Weighted Average Common Shares Outstanding: |
|
|
|
|
|
|
|
||||
Basic |
|
347,297,411 |
|
|
344,023,846 |
|
|
346,115,823 |
|
|
343,848,905 |
Diluted |
|
347,762,693 |
|
|
344,669,782 |
|
|
346,573,101 |
|
|
344,480,056 |
The data contained in this report is preliminary and is unaudited. This report is being submitted for the sole purpose of providing information to shareholders about Eversource Energy and Subsidiaries and is not a representation, prospectus, or intended for use in connection with any purchase or sale of securities. |
Jeffrey R. Kotkin
(860) 665-5154
DUBLIN--(BUSINESS WIRE)--The "Global Biofuel from Sugar Crops Market 2022-2026" report has been added to ResearchAndMarkets.com's offering.
The biofuel from sugar crops market is poised to grow by $635.34 mn during 2022-2026, accelerating at a CAGR of 3.93% during the forecast period. The report on the biofuel from sugar crops market provides a holistic analysis, market size and forecast, trends, growth drivers, and challenges, as well as vendor analysis covering around 25 vendors.
The report offers an up-to-date analysis regarding the current global market scenario, the latest trends and drivers, and the overall market environment. The market is driven by increased adoption of renewable sources of energy, environment, and energy security concerns, and increasing government support.
The biofuel from sugar crops market analysis includes application segment and geographic landscape.
The biofuel from the sugar crops market is segmented as below:
By Application
By Geographical Landscape
This study identifies the rising need for cleaner fuels as one of the prime reasons driving the biofuel from sugar crops market growth during the next few years. Also, increased investments in biofuels and increasing efficiency of airlines will lead to sizable demand in the market.
The report on biofuel from the sugar crops market covers the following areas:
Key Topics Covered:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by Application
6 Customer Landscape
7 Geographic Landscape
8 Drivers, Challenges, and Trends
9 Vendor Landscape
10 Vendor Analysis
11 Appendix
Companies Mentioned
For more information about this report visit https://www.researchandmarkets.com/r/jfhlev
ResearchAndMarkets.com
Laura Wood, Senior Press Manager
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– Adjusted EBITDA Growth of 11% Led by Strong Engineered Structures Performance
– Consolidated Year-Over-Year Adjusted EBITDA Margin Expanded Despite Inflationary Cost Pressures
– Completed $275 Million Divestiture of Storage Tanks Business in October Advancing Portfolio Simplification and Providing Capital to Reinvest in Growth Businesses
DALLAS--(BUSINESS WIRE)--Arcosa, Inc. (NYSE: ACA) (“Arcosa,” the “Company,” “We,” or “Our”), a provider of infrastructure-related products and solutions, today announced results for the third quarter ended September 30, 2022.
Third Quarter Highlights (All comparisons are versus the prior year quarter unless noted otherwise)
“We delivered another quarter of double-digit Adjusted EBITDA growth, meeting our overall expectations for the third quarter,” said Antonio Carrillo, President and Chief Executive Officer. “Demand conditions in our growth businesses remained favorable, and we continued to execute well in our cyclically challenged businesses. During the quarter, we took proactive pricing actions across our portfolio of businesses to counter inflationary pressures leading to higher overall margins and free cash flow compared to last year.
“Our third quarter performance was led by Engineered Structures, generating an impressive 42% increase in Adjusted Segment EBITDA with a 360 basis point expansion in segment margins. Consistent grid modernization and electrification demand drivers within utility structures along with strategic pricing measures to combat high steel prices improved year-over-year profitability within the segment.
“During the quarter, overall construction activity was healthy, and the outlook for public infrastructure and non-residential spending remains very positive. Pricing momentum continued to be strong in the third quarter, offsetting inflationary cost pressures, leading to margins consistent with the second quarter. In certain markets, wet weather and limitations on cement availability delayed projects and constrained volumes. In addition, a deceleration in single-family residential activity, which aligned with the sharp rise in mortgage rates during the quarter, impacted our natural aggregates volumes. As a result, Adjusted Segment EBITDA for Construction Products came in relatively flat compared to last year.
“Our cyclical businesses performed in-line with our expectations. As anticipated, improved profitability in our steel components businesses serving the North American railcar market was offset by lower profitability in our barge and wind towers businesses. Order inquiries in our barge business increased consistent with the positive outlook for a dry barge replacement cycle, though the actual level of orders received during the quarter remained constrained by high steel prices.
“The passage of the Inflation Reduction Act in August, which included a long-term extension of the Production Tax Credit that expired at the end of 2021, is a significant catalyst for our wind towers business. However, the lapse in the PTC has created a near-term lull in projects as the wind industry supply chain takes time to recalibrate. As a result, we anticipate 2023 will be a transition year while we prepare for an expected strong multi-year rebound in volumes beginning in 2024.”
Carrillo continued, “On October 3rd, we completed the divestiture of our storage tanks business for $275 million, representing an important milestone that reflects our ongoing commitment to portfolio simplification. The divestiture is an excellent example of improving a business and preparing it for monetization when market conditions are supportive, enabling Arcosa to realize significant value to ultimately reinvest in our growth businesses. We continue to make solid progress on the organic growth projects we have underway in Construction Products and Engineered Structures and look forward to their positive contributions in 2023 and beyond.”
2022 Outlook and Guidance
The Company made the following adjustments to its full year guidance to reflect the completion of the divestiture of its storage tanks business on October 3, 2022:
Commenting on the outlook, Carrillo noted, “Based on strong year-to-date results and the successful completion of the storage tanks divestiture, we are revising our 2022 Adjusted EBITDA guidance to remove storage tanks’ expected fourth quarter contribution. We continue to anticipate robust year-over-year growth in 2022 and now expect full-year Adjusted EBITDA to increase 15% at the mid-point of our range.”
Carrillo concluded, “Arcosa continues to execute successfully on our strategy, building long-term shareholder value by allocating capital efficiently and focusing on higher-return businesses where we maintain sustainable, competitive advantages. Supported by our strengthened balance sheet and improved cash flow, Arcosa has ample flexibility to expand our market opportunity through organic growth initiatives and opportunistic acquisitions.”
Third Quarter 2022 Results and Commentary
Construction Products
Engineered Structures
Transportation Products
Corporate and Other Financial Notes
Cash Flow and Liquidity
Non-GAAP Financial Information
This earnings release contains financial measures that have not been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Reconciliations of non-GAAP financial measures to the closest GAAP measure are included in the accompanying tables to this earnings release.
Conference Call Information
A conference call is scheduled for 8:30 a.m. Eastern Time on November 3, 2022 to discuss third quarter 2022 results. To listen to the conference call webcast, please visit the Investor Relations section of Arcosa’s website at https://ir.arcosa.com. A slide presentation for this conference call will be posted on the Company’s website in advance of the call at https://ir.arcosa.com. The audio conference call number is 877-830-2591 for domestic callers and 785-424-1738 for international callers. The conference ID is ARCOSA and the passcode is 36987. An audio playback will be available through 11:59 p.m. Eastern Time on November 17, 2022, by dialing 800-839-9886 for domestic callers and 402-220-2191 for international callers. A replay of the webcast will be available for one year on Arcosa’s website at https://ir.arcosa.com/news-events/events-presentations.
About Arcosa
Arcosa, Inc. (NYSE:ACA), headquartered in Dallas, Texas, is a provider of infrastructure-related products and solutions with leading positions in construction, engineered structures, and transportation markets. Arcosa reports its financial results in three principal business segments: Construction Products, Engineered Structures, and Transportation Products. For more information, visit www.arcosa.com.
Some statements in this release, which are not historical facts, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements about Arcosa’s estimates, expectations, beliefs, intentions or strategies for the future. Arcosa uses the words “anticipates,” “assumes,” “believes,” “estimates,” “expects,” “intends,” “forecasts,” “may,” “will,” “should,” “guidance,” “outlook,” “strategy,” “plans,” and similar expressions to identify these forward-looking statements. Forward-looking statements speak only as of the date of this release, and Arcosa expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein, except as required by federal securities laws. Forward-looking statements are based on management’s current views and assumptions and involve risks and uncertainties that could cause actual results to differ materially from historical experience or our present expectations, including but not limited to assumptions, risks and uncertainties regarding the impact of the COVID-19 pandemic on Arcosa’s customer demand for Arcosa’s products and services, Arcosa’s supply chain, Arcosa’s employees’ ability to work because of COVID-19 related illness, the health and safety of our employees, the effect of governmental regulations imposed in response to the COVID-19 pandemic; assumptions, risks and uncertainties regarding achievement of the expected benefits of Arcosa’s spin-off from Trinity; tax treatment of the spin-off; failure to successfully integrate acquisitions or divest any business, or failure to achieve the expected benefits of acquisitions or divestitures; market conditions and customer demand for Arcosa’s business products and services; the cyclical nature of, and seasonal or weather impact on, the industries in which Arcosa competes; competition and other competitive factors; governmental and regulatory factors; changing technologies; availability of growth opportunities; market recovery; ability to improve margins; the impact of inflation and costs of materials; and Arcosa’s ability to execute its long-term strategy, and such forward-looking statements are not guarantees of future performance. For further discussion of such risks and uncertainties, see "Risk Factors" and the "Forward-Looking Statements" section of "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Arcosa's Form 10-K for the year-ended December 31, 2021 and as may be revised and updated by Arcosa's Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
TABLES TO FOLLOW
Arcosa, Inc. |
||||||||||||
Condensed Consolidated Statements of Operations |
||||||||||||
(in millions, except per share amounts) |
||||||||||||
(unaudited) |
||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||
|
|
2022 |
|
|
|
2021 |
|
|
2022 |
|
|
2021 |
Revenues |
$ |
603.9 |
|
|
$ |
559.1 |
|
$ |
1,742.5 |
|
$ |
1,514.6 |
Operating costs: |
|
|
|
|
|
|
|
|||||
Cost of revenues |
|
487.1 |
|
|
|
459.1 |
|
|
1,404.9 |
|
|
1,237.6 |
Selling, general, and administrative expenses |
|
67.8 |
|
|
|
62.5 |
|
|
196.7 |
|
|
185.3 |
|
|
554.9 |
|
|
|
521.6 |
|
|
1,601.6 |
|
|
1,422.9 |
Operating profit |
|
49.0 |
|
|
|
37.5 |
|
|
140.9 |
|
|
91.7 |
|
|
|
|
|
|
|
|
|||||
Interest expense |
|
8.6 |
|
|
|
7.3 |
|
|
23.5 |
|
|
16.0 |
Other, net (income) expense |
|
(0.2 |
) |
|
|
0.1 |
|
|
1.1 |
|
|
0.3 |
|
|
8.4 |
|
|
|
7.4 |
|
|
24.6 |
|
|
16.3 |
Income before income taxes |
|
40.6 |
|
|
|
30.1 |
|
|
116.3 |
|
|
75.4 |
Provision for income taxes |
|
8.6 |
|
|
|
6.4 |
|
|
25.1 |
|
|
15.0 |
Net income |
$ |
32.0 |
|
|
$ |
23.7 |
|
$ |
91.2 |
|
$ |
60.4 |
|
|
|
|
|
|
|
|
|||||
Net income per common share: |
|
|
|
|
|
|
|
|||||
Basic |
$ |
0.66 |
|
|
$ |
0.49 |
|
$ |
1.88 |
|
$ |
1.25 |
Diluted |
$ |
0.66 |
|
|
$ |
0.49 |
|
$ |
1.87 |
|
$ |
1.23 |
Weighted average number of shares outstanding: |
|
|
|
|
|
|
|
|||||
Basic |
|
48.3 |
|
|
|
48.2 |
|
|
48.2 |
|
|
48.1 |
Diluted |
|
48.5 |
|
|
|
48.6 |
|
|
48.5 |
|
|
48.6 |
Arcosa, Inc. |
|||||||||||||||
Condensed Segment Data |
|||||||||||||||
(in millions) |
|||||||||||||||
(unaudited) |
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
Revenues: |
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Aggregates and specialty materials |
$ |
216.8 |
|
|
$ |
202.3 |
|
|
$ |
620.9 |
|
|
$ |
519.1 |
|
Construction site support |
|
27.4 |
|
|
|
25.1 |
|
|
|
80.7 |
|
|
|
66.0 |
|
Construction Products |
|
244.2 |
|
|
|
227.4 |
|
|
|
701.6 |
|
|
|
585.1 |
|
|
|
|
|
|
|
|
|
||||||||
Utility, wind, and related structures |
|
211.2 |
|
|
|
189.4 |
|
|
|
608.5 |
|
|
|
545.0 |
|
Storage tanks |
|
65.8 |
|
|
|
60.7 |
|
|
|
187.6 |
|
|
|
154.6 |
|
Engineered Structures |
|
277.0 |
|
|
|
250.1 |
|
|
|
796.1 |
|
|
|
699.6 |
|
|
|
|
|
|
|
|
|
||||||||
Inland barges |
|
50.9 |
|
|
|
58.4 |
|
|
|
151.7 |
|
|
|
165.3 |
|
Steel components |
|
31.8 |
|
|
|
23.2 |
|
|
|
93.1 |
|
|
|
64.7 |
|
Transportation Products |
|
82.7 |
|
|
|
81.6 |
|
|
|
244.8 |
|
|
|
230.0 |
|
|
|
|
|
|
|
|
|
||||||||
Segment Totals before Eliminations |
|
603.9 |
|
|
|
559.1 |
|
|
|
1,742.5 |
|
|
|
1,514.7 |
|
Eliminations |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.1 |
) |
Consolidated Total |
$ |
603.9 |
|
|
$ |
559.1 |
|
|
$ |
1,742.5 |
|
|
$ |
1,514.6 |
|
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
Operating profit (loss): |
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Construction Products |
$ |
27.6 |
|
|
$ |
26.8 |
|
|
$ |
72.4 |
|
|
$ |
60.5 |
|
Engineered Structures |
|
37.1 |
|
|
|
23.6 |
|
|
|
106.9 |
|
|
|
70.2 |
|
Transportation Products |
|
1.0 |
|
|
|
1.5 |
|
|
|
7.2 |
|
|
|
6.9 |
|
Segment Totals before Corporate Expenses |
|
65.7 |
|
|
|
51.9 |
|
|
|
186.5 |
|
|
|
137.6 |
|
Corporate |
|
(16.7 |
) |
|
|
(14.4 |
) |
|
|
(45.6 |
) |
|
|
(45.9 |
) |
Consolidated Total |
$ |
49.0 |
|
|
$ |
37.5 |
|
|
$ |
140.9 |
|
|
$ |
91.7 |
|
Backlog: |
September 30,
|
|
September 30,
|
||
Engineered Structures: |
|
|
|
||
Utility, wind, and related structures |
$ |
370.4 |
|
$ |
465.9 |
Storage tanks(1) |
$ |
15.9 |
|
$ |
20.8 |
Transportation Products: |
|
|
|
||
Inland barges |
$ |
128.9 |
|
$ |
130.2 |
(1) On October 3, 2022, the Company sold the storage tanks business and its related backlog. |
Arcosa, Inc. |
|||||||
Condensed Consolidated Balance Sheets |
|||||||
(in millions) |
|||||||
(unaudited) |
|||||||
|
September 30, 2022 |
|
December 31, 2021 |
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
112.2 |
|
|
$ |
72.9 |
|
Receivables, net of allowance |
|
326.1 |
|
|
|
310.8 |
|
Inventories |
|
328.8 |
|
|
|
324.5 |
|
Assets held for sale |
|
114.8 |
|
|
|
20.4 |
|
Other |
|
40.9 |
|
|
|
39.3 |
|
Total current assets |
|
922.8 |
|
|
|
767.9 |
|
|
|
|
|
||||
Property, plant, and equipment, net |
|
1,171.4 |
|
|
|
1,201.9 |
|
Goodwill |
|
958.6 |
|
|
|
934.9 |
|
Intangibles, net |
|
261.4 |
|
|
|
220.3 |
|
Deferred income taxes |
|
8.7 |
|
|
|
13.2 |
|
Other assets |
|
57.7 |
|
|
|
49.9 |
|
|
$ |
3,380.6 |
|
|
$ |
3,188.1 |
|
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
221.6 |
|
|
$ |
184.7 |
|
Accrued liabilities |
|
135.2 |
|
|
|
145.9 |
|
Advance billings |
|
16.0 |
|
|
|
18.6 |
|
Liabilities held for sale |
|
36.7 |
|
|
|
— |
|
Current portion of long-term debt |
|
13.9 |
|
|
|
14.8 |
|
Total current liabilities |
|
423.4 |
|
|
|
364.0 |
|
|
|
|
|
||||
Debt |
|
696.6 |
|
|
|
664.7 |
|
Deferred income taxes |
|
154.1 |
|
|
|
134.0 |
|
Other liabilities |
|
75.2 |
|
|
|
72.1 |
|
|
|
1,349.3 |
|
|
|
1,234.8 |
|
Stockholders' equity: |
|
|
|
||||
Common stock |
|
0.5 |
|
|
|
0.5 |
|
Capital in excess of par value |
|
1,708.6 |
|
|
|
1,692.6 |
|
Retained earnings |
|
363.3 |
|
|
|
279.5 |
|
Accumulated other comprehensive loss |
|
(15.8 |
) |
|
|
(19.3 |
) |
Treasury stock |
|
(25.3 |
) |
|
|
— |
|
|
|
2,031.3 |
|
|
|
1,953.3 |
|
|
$ |
3,380.6 |
|
|
$ |
3,188.1 |
|
Arcosa, Inc. |
|||||||
Consolidated Statements of Cash Flows |
|||||||
(in millions) |
|||||||
(unaudited) |
|||||||
|
Nine Months Ended
|
||||||
|
|
2022 |
|
|
|
2021 |
|
Operating activities: |
|
|
|
||||
Net income |
$ |
91.2 |
|
|
$ |
60.4 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation, depletion, and amortization |
|
116.9 |
|
|
|
107.0 |
|
Stock-based compensation expense |
|
15.5 |
|
|
|
12.8 |
|
Provision for deferred income taxes |
|
19.7 |
|
|
|
9.7 |
|
Gains on disposition of property and other assets |
|
(6.5 |
) |
|
|
(9.0 |
) |
(Increase) decrease in other assets |
|
2.3 |
|
|
|
6.5 |
|
Increase (decrease) in other liabilities |
|
(18.7 |
) |
|
|
(17.6 |
) |
Other |
|
(3.6 |
) |
|
|
(6.3 |
) |
Changes in current assets and liabilities: |
|
|
|
||||
(Increase) decrease in receivables |
|
(52.0 |
) |
|
|
(76.9 |
) |
(Increase) decrease in inventories |
|
(39.1 |
) |
|
|
(36.1 |
) |
(Increase) decrease in other current assets |
|
(3.0 |
) |
|
|
(9.8 |
) |
Increase (decrease) in accounts payable |
|
57.9 |
|
|
|
60.7 |
|
Increase (decrease) in advance billings |
|
(2.6 |
) |
|
|
(26.2 |
) |
Increase (decrease) in accrued liabilities |
|
4.6 |
|
|
|
1.6 |
|
Net cash provided by operating activities |
|
182.6 |
|
|
|
76.8 |
|
Investing activities: |
|
|
|
||||
Proceeds from disposition of property and other assets |
|
31.5 |
|
|
|
14.9 |
|
Capital expenditures |
|
(85.9 |
) |
|
|
(60.8 |
) |
Acquisitions, net of cash acquired |
|
(75.1 |
) |
|
|
(523.4 |
) |
Net cash required by investing activities |
|
(129.5 |
) |
|
|
(569.3 |
) |
Financing activities: |
|
|
|
||||
Payments to retire debt |
|
(59.8 |
) |
|
|
(4.2 |
) |
Proceeds from issuance of debt |
|
80.0 |
|
|
|
500.0 |
|
Shares repurchased |
|
(15.0 |
) |
|
|
(9.4 |
) |
Dividends paid to common stockholders |
|
(7.4 |
) |
|
|
(7.4 |
) |
Purchase of shares to satisfy employee tax on vested stock |
|
(9.8 |
) |
|
|
(9.6 |
) |
Debt issuance costs |
|
— |
|
|
|
(6.6 |
) |
Net cash (required) provided by financing activities |
|
(12.0 |
) |
|
|
462.8 |
|
Net increase (decrease) in cash and cash equivalents |
|
41.1 |
|
|
|
(29.7 |
) |
Cash and cash equivalents at beginning of period |
|
72.9 |
|
|
|
95.8 |
|
Cash and cash equivalents at end of period (1) |
$ |
114.0 |
|
|
$ |
66.1 |
|
(1) Ending cash as of September 30, 2022 includes $1.8 million of cash presented within assets held for sale on the Consolidated Balance Sheet. |
Arcosa, Inc. |
|||||||||||
Reconciliation of Adjusted Net Income and Adjusted Diluted EPS |
|||||||||||
(unaudited) |
|||||||||||
GAAP does not define “Adjusted Net Income” and it should not be considered as an alternative to earnings measures defined by GAAP, including net income. We use this metric to assess the operating performance of our consolidated business. We adjust net income for certain items that are not reflective of the normal operations of our business to provide investors with what we believe is a more consistent comparison of earnings performance from period to period. |
|||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
(in millions) |
||||||||||
Net Income |
$ |
32.0 |
|
$ |
23.7 |
|
$ |
91.2 |
|
$ |
60.4 |
Impact of acquisition and divestiture-related expenses, net of tax(1) |
|
1.7 |
|
|
4.1 |
|
|
4.3 |
|
|
14.1 |
Adjusted Net Income |
$ |
33.7 |
|
$ |
27.8 |
|
$ |
95.5 |
|
$ |
74.5 |
GAAP does not define “Adjusted Diluted EPS” and it should not be considered as an alternative to earnings measures defined by GAAP, including diluted EPS. We use this metric to assess the operating performance of our consolidated business. We adjust diluted EPS for certain items that are not reflective of the normal operations of our business to provide investors with what we believe is a more consistent comparison of earnings performance from period to period. |
|||||||||||
Three Months Ended
|
|
Nine Months Ended
|
|||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
(in dollars per share) |
||||||||||
Diluted EPS |
$ |
0.66 |
|
$ |
0.49 |
|
$ |
1.87 |
|
$ |
1.23 |
Impact of acquisition and divestiture-related expenses(1) |
|
0.04 |
|
|
0.08 |
|
|
0.09 |
|
|
0.29 |
Adjusted Diluted EPS |
$ |
0.70 |
|
$ |
0.57 |
|
$ |
1.96 |
|
$ |
1.52 |
(1) Expenses associated with acquisitions and divestitures, including the cost impact of the fair value markup of acquired inventory, advisory and professional fees, integration, separation, and other transaction costs. |
Arcosa, Inc. |
|||||||||||||||||||||||
Reconciliation of Adjusted EBITDA |
|||||||||||||||||||||||
($ in millions) |
|||||||||||||||||||||||
(unaudited) |
|||||||||||||||||||||||
|
|||||||||||||||||||||||
“EBITDA” is defined as net income plus interest, taxes, depreciation, depletion, and amortization. “Adjusted EBITDA” is defined as EBITDA adjusted for certain items that are not reflective of the normal earnings of our business. GAAP does not define EBITDA or Adjusted EBITDA and they should not be considered as alternatives to earnings measures defined by GAAP, including net income. We use Adjusted EBITDA to assess the operating performance of our consolidated business, as a metric for incentive-based compensation, as a measure within our lending arrangements, and as a basis for strategic planning and forecasting as we believe that it closely correlates to long-term shareholder value. As a widely used metric by analysts, investors, and competitors in our industry, we believe Adjusted EBITDA also assists investors in comparing a company's performance on a consistent basis without regard to depreciation, depletion, amortization, and other items which can vary significantly depending on many factors. “Adjusted EBITDA Margin” is defined as Adjusted EBITDA divided by Revenues. |
|||||||||||||||||||||||
Three Months Ended
|
|
Nine Months Ended
|
|
Full Year
|
|||||||||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
Low |
|
High |
||||
Revenues |
$ |
603.9 |
|
|
$ |
559.1 |
|
|
$ |
1,742.5 |
|
|
$ |
1,514.6 |
|
|
$ |
2,200.0 |
|
|
$ |
2,250.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income |
|
32.0 |
|
|
|
23.7 |
|
|
|
91.2 |
|
|
|
60.4 |
|
|
|
239.5 |
|
|
|
252.3 |
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest expense, net |
|
8.6 |
|
|
|
7.3 |
|
|
|
23.4 |
|
|
|
15.9 |
|
|
|
32.5 |
|
|
|
32.5 |
|
Provision for income taxes |
|
8.6 |
|
|
|
6.4 |
|
|
|
25.1 |
|
|
|
15.0 |
|
|
|
71.5 |
|
|
|
71.2 |
|
Depreciation, depletion, and amortization expense(2) |
|
39.6 |
|
|
|
39.0 |
|
|
|
116.9 |
|
|
|
107.0 |
|
|
|
155.0 |
|
|
|
160.0 |
|
EBITDA |
|
88.8 |
|
|
|
76.4 |
|
|
|
256.6 |
|
|
|
198.3 |
|
|
|
498.5 |
|
|
|
516.0 |
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gain on storage tanks divestiture |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(190.0 |
) |
|
|
(198.0 |
) |
Impact of acquisition and divestiture-related expenses(3) |
|
2.2 |
|
|
|
5.5 |
|
|
|
5.6 |
|
|
|
18.7 |
|
|
|
11.5 |
|
|
|
12.0 |
|
Other, net (income) expense(4) |
|
(0.2 |
) |
|
|
0.1 |
|
|
|
1.2 |
|
|
|
0.4 |
|
|
|
— |
|
|
|
— |
|
Adjusted EBITDA |
$ |
90.8 |
|
|
$ |
82.0 |
|
|
$ |
263.4 |
|
|
$ |
217.4 |
|
|
$ |
320.0 |
|
|
$ |
330.0 |
|
Adjusted EBITDA Margin |
|
15.0 |
% |
|
|
14.7 |
% |
|
|
15.1 |
% |
|
|
14.4 |
% |
|
|
14.5 |
% |
|
|
14.7 |
% |
INVESTOR CONTACTS
Gail M. Peck
Chief Financial Officer
Erin Drabek
Director of Investor Relations
T 972.942.6500
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David Gold
ADVISIRY Partners
T 212.661.2220
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MEDIA CONTACT
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FRAMINGHAM, Mass.--(BUSINESS WIRE)--#carbonreduction--Ameresco, Inc. (NYSE:AMRC), a leading clean technology integrator specializing in energy efficiency and renewable energy, today announced that members of its management team will attend the following investor conferences:
About Ameresco, Inc.
Founded in 2000, Ameresco, Inc. (NYSE:AMRC) is a leading independent clean technology integrator of comprehensive services, energy efficiency, infrastructure upgrades, asset sustainability and renewable energy solutions for businesses and organizations throughout North America and Europe. Ameresco’s sustainability services include upgrades to a facility’s energy infrastructure and the development, construction and operation of renewable energy plants. Ameresco has successfully completed energy saving, environmentally responsible projects with Federal, state and local governments, healthcare and educational institutions, housing authorities, and commercial and industrial customers. With its corporate headquarters in Framingham, MA, Ameresco has more than 1,000 employees providing local expertise in the United States, Canada, and the United Kingdom. For more information, visit www.ameresco.com.
Media Relations
Leila Dillon, 508.661.2264, This email address is being protected from spambots. You need JavaScript enabled to view it.
Investor Relations
Eric Prouty, Advisiry Partners, 212.750.5800, This email address is being protected from spambots. You need JavaScript enabled to view it.
Lynn Morgen, Advisiry Partners, 212.750.5800, This email address is being protected from spambots. You need JavaScript enabled to view it.
Strong Operational Performance and Wide Energy Spreads Drive Record Results
Company to Collaborate with ExxonMobil on Landmark Carbon Capture Project
Board Authorizes New $3 Billion Share Repurchase Program
DEERFIELD, Ill.--(BUSINESS WIRE)--CF Industries Holdings, Inc. (NYSE: CF), a leading global manufacturer of hydrogen and nitrogen products, today announced results for the first nine months and third quarter ended September 30, 2022.
Highlights
“The CF Industries team continues to deliver outstanding results as we work safely, run our plants extremely well and leverage our distribution and logistics capabilities to serve customers in North America and around the world,” said Tony Will, president and chief executive officer, CF Industries Holdings, Inc. “The conditions that have supported nitrogen prices for the last year - reduced global supply availability from lower operating rates due to high energy costs for marginal production in Europe and Asia - show no signs of abating. As a result, we expect the global nitrogen supply-demand balance to remain tight with attractive margin opportunities for low-cost producers further into the future.”
Nitrogen Market Outlook
Management expects the global nitrogen supply-demand balance will remain tight into 2025 due to agriculture-led demand and forward energy curves that point to persistently high energy prices in Europe and Asia.
The need to replenish global grains stocks, which has supported high prices for corn, wheat and canola, continues to drive global nitrogen demand. Below-trend yields are expected in key growing regions, including the U.S., due to unfavorable weather during 2022, preventing any meaningful increase to global grains stocks this year. Management believes that it will take at least two more seasons at trend yield to fully replenish global grains stocks, supporting strong grains plantings and incentivizing nitrogen fertilizer application over this time period.
Global nitrogen supply availability remains constrained as high energy prices in Europe and Asia have led to substantial curtailments of ammonia production in these regions. During the third quarter of 2022, an estimated 60% of ammonia capacity in Europe did not operate. For facilities able to do so, production economics continue to favor importing ammonia to manufacture upgraded products.
Forward energy curves suggest that production economics in Europe and Asia are likely to remain challenged for at least the next two years. Additionally, the forward curves point to an extended period of wide energy differentials between Europe and Asia and low-cost regions. As a result, the Company believes the global nitrogen cost curve will be steeper for longer, supporting increased margin opportunities for low-cost North American producers.
Operations Overview
The Company continues to operate safely and efficiently across its network. As of September 30, 2022, the 12-month rolling average recordable incident rate was 0.29 incidents per 200,000 work hours, significantly better than industry benchmarks.
Gross ammonia production for the first nine months and third quarter of 2022 was approximately 7.4 million tons and 2.3 million tons, respectively. The Company expects that gross ammonia production for 2022 will be in the range of 9.5 to 10.0 million tons.
Financial Results Overview
First Nine Months 2022 Financial Results
For the first nine months of 2022, net earnings attributable to common stockholders were $2.49 billion, or $12.04 per diluted share, and EBITDA was $4.30 billion, which include the impact of pre-tax impairment and restructuring charges of $257 million related to the Company’s UK operations; adjusted EBITDA was $4.58 billion. These results compare to the first nine months of 2021 net earnings attributable to common stockholders of $212 million, or $0.98 per diluted share and EBITDA of $984 million, which included the impact of pre-tax impairment charges of $495 million related to the Company’s UK operations; and adjusted EBITDA of $1.49 billion.
Net sales in the first nine months of 2022 were $8.58 billion compared to $4.00 billion in the first nine months of 2021. Average selling prices for the first nine months of 2022 were higher than the first nine months of 2021 across all segments due to decreased global supply availability, as higher global energy costs reduced global operating rates and geopolitical factors disrupted the global fertilizer supply chain. Sales volumes in the first nine months of 2022 were higher than the first nine months of 2021 due to greater supply availability from higher production in 2022 compared to 2021.
Cost of sales for the first nine months of 2022 was higher compared to the first nine months of 2021 due primarily to higher natural gas costs.
In the first nine months of 2022, the average cost of natural gas reflected in the Company’s cost of sales was $7.28 per MMBtu compared to the average cost of natural gas in cost of sales of $3.51 per MMBtu in the first nine months of 2021.
Third Quarter 2022 Financial Results Overview
For the third quarter of 2022, net earnings attributable to common stockholders were $438 million, or $2.18 per diluted share, and EBITDA was $826 million, which include the impact of pre-tax impairment and restructuring charges of $95 million related to the Company’s UK operations; and adjusted EBITDA was $983 million. These results compare to 2021 net loss attributable to common stockholders of $185 million, or a net loss of $0.86 per diluted share and EBITDA loss of $10 million, which included the impact of pre-tax impairment charges of $495 million related to the Company’s UK operations; and adjusted EBITDA of $488 million.
Net sales in the third quarter of 2022 were $2.32 billion compared to $1.36 billion in 2021. Average selling prices for 2022 were higher than 2021 across all segments due to decreased global supply availability, as higher global energy costs reduced global operating rates and geopolitical factors disrupted the global fertilizer supply chain. Sales volumes in the third quarter of 2022 were higher than 2021 due to greater supply availability from higher production as well as higher starting inventories in the third quarter of 2022 compared to 2021.
Cost of sales for the third quarter of 2022 was higher compared to 2021 primarily due to higher natural gas costs.
In the third quarter of 2022, the average cost of natural gas reflected in the Company’s cost of sales was $8.35 per MMBtu compared to the average cost of natural gas in cost of sales of $4.21 per MMBtu in 2021.
Capital Management
Capital Expenditures
Capital expenditures in the third quarter and first nine months of 2022 were $190 million and $319 million, respectively, which incorporates expenditures related to the Company’s clean energy initiatives, including the purchase of property on the west bank of Ascension Parish, Louisiana, to facilitate potential growth of blue ammonia production capacity. Management projects capital expenditures for full year 2022 will be in a range of $500 million.
Share Repurchase Programs
The Company repurchased approximately 12.7 million shares for $1.12 billion during the first nine months of 2022. As of September 30, 2022, the Company had completed approximately 75% of the $1.5 billion share repurchase authorization that went into effect January 1, 2022, and is effective through the end of 2024.
On November 2, 2022, the Board of Directors of CF Industries Holdings, Inc., authorized a new $3 billion share repurchase program. The program will commence upon completion of the current share repurchase program and runs through the end of 2025.
CHS Inc. Distribution
CHS Inc. (CHS) is entitled to semi-annual distributions resulting from its minority equity investment in CF Industries Nitrogen, LLC (CFN). The estimate of the partnership distribution earned by CHS, but not yet declared, for the third quarter of 2022 is $106 million.
Clean Energy Initiatives
CF Industries continues to advance its plans to support the global hydrogen and clean fuel economy, which is expected to grow significantly over the next decade, through the production of blue ammonia (ammonia produced with the corresponding CO2 byproduct removed through carbon capture and sequestration) and green ammonia (ammonia produced from carbon-free sources).
Joint Venture with Mitsui & Co., Ltd.
CF Industries and Mitsui & Co., Ltd. have initiated a front-end engineering and design (FEED) study for their proposed joint venture to construct an export-oriented greenfield blue ammonia facility in Ascension Parish, Louisiana. The companies had previously signed a joint development agreement that provides the framework for the FEED study.
CF Industries and Mitsui have signed an agreement with thyssenkrupp UHDE to conduct the FEED study. Additionally, CF Industries acquired land during the third quarter of 2022 on the west bank of Ascension Parish, Louisiana, on which the proposed facility would be constructed should the companies agree to move forward. CF Industries and Mitsui expect to make a final investment decision on the proposed facility in the second half of 2023. Construction and commissioning of a new world-scale capacity ammonia plant typically takes approximately 4 years from that point.
Carbon Capture and Sequestration Agreement to Enable Blue Ammonia Production at Donaldsonville Complex
CF Industries has entered into the largest-of-its-kind commercial agreement with ExxonMobil to capture and permanently store up to 2 million tons of CO2 emissions annually from its Donaldsonville Complex in Louisiana. As previously announced, CF Industries is investing $200 million to build a CO2 dehydration and compression unit at the facility to enable captured CO2 to be transported and stored. Under the agreement, ExxonMobil will then transport and permanently store the captured CO2 in secure geologic storage it owns in Vermilion Parish, Louisiana. As part of the project, ExxonMobil has signed an agreement with EnLink Midstream to use EnLink’s transportation network to deliver CO2 to permanent geologic storage. Start-up for the project is scheduled for early 2025.
Donaldsonville Green Ammonia Project
The Donaldsonville green ammonia project, which involves installing an electrolysis system at Donaldsonville to generate carbon-free hydrogen from water that will then be supplied to an existing ammonia plant to produce green ammonia, continues to progress. Major equipment is being fabricated and site work has begun for installation of the new electrolyzer unit and integration into Donaldsonville’s existing operations. Once complete, the project will enable the Company to produce approximately 20,000 tons of green ammonia per year.
___________________________________________________ |
|
(1) |
Certain items recognized during the first nine months and third quarter of 2022 impacted our financial results and their comparability to the prior year period. See the table accompanying this release for a summary of these items. |
(2) |
EBITDA is defined as net earnings attributable to common stockholders plus interest expense—net, income taxes and depreciation and amortization. See reconciliations of EBITDA and adjusted EBITDA to the most directly comparable GAAP measures in the tables accompanying this release. |
(3) |
Free cash flow is defined as net cash from operating activities less capital expenditures and distributions to noncontrolling interest. See reconciliation of free cash flow to the most directly comparable GAAP measure in the table accompanying this release. |
Consolidated Results
|
Three months ended September 30, |
|
Nine months ended September 30, |
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
(dollars in millions, except per share and per MMBtu amounts) |
||||||||||||||
Net sales |
$ |
2,321 |
|
|
$ |
1,362 |
|
|
$ |
8,578 |
|
|
$ |
3,998 |
|
Cost of sales |
|
1,405 |
|
|
|
922 |
|
|
|
3,973 |
|
|
|
2,766 |
|
Gross margin |
$ |
916 |
|
|
$ |
440 |
|
|
$ |
4,605 |
|
|
$ |
1,232 |
|
Gross margin percentage |
|
39.5 |
% |
|
|
32.3 |
% |
|
|
53.7 |
% |
|
|
30.8 |
% |
|
|
|
|
|
|
|
|
||||||||
Net earnings (loss) attributable to common stockholders |
$ |
438 |
|
|
$ |
(185 |
) |
|
$ |
2,486 |
|
|
$ |
212 |
|
Net earnings (loss) per diluted share |
$ |
2.18 |
|
|
$ |
(0.86 |
) |
|
$ |
12.04 |
|
|
$ |
0.98 |
|
|
|
|
|
|
|
|
|
||||||||
EBITDA(1) |
$ |
826 |
|
|
$ |
(10 |
) |
|
$ |
4,296 |
|
|
$ |
984 |
|
Adjusted EBITDA(1) |
$ |
983 |
|
|
$ |
488 |
|
|
$ |
4,584 |
|
|
$ |
1,485 |
|
|
|
|
|
|
|
|
|
||||||||
Tons of product sold (000s) |
|
4,408 |
|
|
|
3,784 |
|
|
|
13,867 |
|
|
|
13,522 |
|
|
|
|
|
|
|
|
|
||||||||
Natural gas supplemental data (per MMBtu): |
|
|
|
|
|
|
|
||||||||
Cost of natural gas used for production in cost of sales(2) |
$ |
8.35 |
|
|
$ |
4.21 |
|
|
$ |
7.28 |
|
|
$ |
3.51 |
|
Average daily market price of natural gas Henry Hub (Louisiana) |
$ |
7.96 |
|
|
$ |
4.27 |
|
|
$ |
6.66 |
|
|
$ |
3.52 |
|
Average daily market price of natural gas National Balancing Point (United Kingdom) |
$ |
32.54 |
|
|
$ |
15.98 |
|
|
$ |
26.26 |
|
|
$ |
10.63 |
|
|
|
|
|
|
|
|
|
||||||||
Unrealized net mark-to-market loss (gain) on natural gas derivatives |
$ |
11 |
|
|
$ |
(12 |
) |
|
$ |
(39 |
) |
|
$ |
(18 |
) |
Depreciation and amortization |
$ |
221 |
|
|
$ |
203 |
|
|
$ |
652 |
|
|
$ |
650 |
|
Capital expenditures |
$ |
190 |
|
|
$ |
201 |
|
|
$ |
319 |
|
|
$ |
382 |
|
|
|
|
|
|
|
|
|
||||||||
Production volume by product tons (000s): |
|
|
|
|
|
|
|
||||||||
Ammonia(3) |
|
2,283 |
|
|
|
2,186 |
|
|
|
7,366 |
|
|
|
6,897 |
|
Granular urea |
|
1,187 |
|
|
|
987 |
|
|
|
3,418 |
|
|
|
3,139 |
|
UAN (32%) |
|
1,381 |
|
|
|
1,311 |
|
|
|
4,879 |
|
|
|
4,628 |
|
AN |
|
358 |
|
|
|
332 |
|
|
|
1,162 |
|
|
|
1,256 |
|
_______________________________________________________________________________ |
|
(1) |
See reconciliations of EBITDA and adjusted EBITDA to the most directly comparable GAAP measures in the tables accompanying this release. |
(2) |
Includes the cost of natural gas used for production and related transportation that is included in cost of sales during the period under the first-in, first-out inventory cost method. Includes realized gains and losses on natural gas derivatives settled during the period. Excludes unrealized mark-to-market gains and losses on natural gas derivatives. For the nine months ended September 30, 2021, excludes the $112 million gain on net settlement of certain natural gas contracts with suppliers due to Winter Storm Uri in February 2021. |
(3) |
Gross ammonia production, including amounts subsequently upgraded into other products. |
Ammonia Segment
CF Industries’ ammonia segment produces anhydrous ammonia (ammonia), which is the base product that the Company manufactures, containing 82 percent nitrogen and 18 percent hydrogen. The results of the ammonia segment consist of sales of ammonia to external customers for its nitrogen content as a fertilizer, in emissions control and in other industrial applications. In addition, the Company upgrades ammonia into other nitrogen products such as urea, UAN and AN.
|
Three months ended September 30, |
|
Nine months ended September 30, |
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
(dollars in millions, except per ton amounts) |
||||||||||||||
Net sales |
$ |
531 |
|
|
$ |
344 |
|
|
$ |
2,286 |
|
|
$ |
1,009 |
|
Cost of sales |
|
353 |
|
|
|
262 |
|
|
|
1,075 |
|
|
|
675 |
|
Gross margin |
$ |
178 |
|
|
$ |
82 |
|
|
$ |
1,211 |
|
|
$ |
334 |
|
Gross margin percentage |
|
33.5 |
% |
|
|
23.8 |
% |
|
|
53.0 |
% |
|
|
33.1 |
% |
|
|
|
|
|
|
|
|
||||||||
Sales volume by product tons (000s) |
|
643 |
|
|
|
690 |
|
|
|
2,405 |
|
|
|
2,409 |
|
Sales volume by nutrient tons (000s)(1) |
|
528 |
|
|
|
566 |
|
|
|
1,973 |
|
|
|
1,976 |
|
|
|
|
|
|
|
|
|
||||||||
Average selling price per product ton |
$ |
826 |
|
|
$ |
499 |
|
|
$ |
951 |
|
|
$ |
419 |
|
Average selling price per nutrient ton(1) |
|
1,006 |
|
|
|
608 |
|
|
|
1,159 |
|
|
|
511 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted gross margin(2): |
|
|
|
|
|
|
|
||||||||
Gross margin |
$ |
178 |
|
|
$ |
82 |
|
|
$ |
1,211 |
|
|
$ |
334 |
|
Depreciation and amortization |
|
35 |
|
|
|
41 |
|
|
|
119 |
|
|
|
138 |
|
Unrealized net mark-to-market loss (gain) on natural gas derivatives |
|
4 |
|
|
|
(4 |
) |
|
|
(6 |
) |
|
|
(6 |
) |
Adjusted gross margin |
$ |
217 |
|
|
$ |
119 |
|
|
$ |
1,324 |
|
|
$ |
466 |
|
Adjusted gross margin as a percent of net sales |
|
40.9 |
% |
|
|
34.6 |
% |
|
|
57.9 |
% |
|
|
46.2 |
% |
|
|
|
|
|
|
|
|
||||||||
Gross margin per product ton |
$ |
277 |
|
|
$ |
119 |
|
|
$ |
504 |
|
|
$ |
139 |
|
Gross margin per nutrient ton(1) |
|
337 |
|
|
|
145 |
|
|
|
614 |
|
|
|
169 |
|
Adjusted gross margin per product ton |
|
337 |
|
|
|
172 |
|
|
|
551 |
|
|
|
193 |
|
Adjusted gross margin per nutrient ton(1) |
|
411 |
|
|
|
210 |
|
|
|
671 |
|
|
|
236 |
|
_______________________________________________________________________________ |
|
(1) |
Nutrient tons represent the tons of nitrogen within the product tons. |
(2) |
Adjusted gross margin, adjusted gross margin as a percent of net sales and adjusted gross margin per product ton and per nutrient ton are non-GAAP financial measures. Adjusted gross margin is defined as gross margin excluding depreciation and amortization and unrealized net mark-to-market (gain) loss on natural gas derivatives. A reconciliation of adjusted gross margin, adjusted gross margin as a percent of net sales and adjusted gross margin per product ton and per nutrient ton to gross margin, the most directly comparable GAAP measure, is provided in the table above. See “Note Regarding Non-GAAP Financial Measures” in this release. |
Comparison of 2022 to 2021 first nine months periods:
Granular Urea Segment
CF Industries’ granular urea segment produces granular urea, which contains 46 percent nitrogen. Produced from ammonia and carbon dioxide, it has the highest nitrogen content of any of the Company’s solid nitrogen products.
|
Three months ended September 30, |
|
Nine months ended September 30, |
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
(dollars in millions, except per ton amounts) |
||||||||||||||
Net sales |
$ |
689 |
|
|
$ |
386 |
|
|
$ |
2,287 |
|
|
$ |
1,218 |
|
Cost of sales |
|
394 |
|
|
|
200 |
|
|
|
1,024 |
|
|
|
705 |
|
Gross margin |
$ |
295 |
|
|
$ |
186 |
|
|
$ |
1,263 |
|
|
$ |
513 |
|
Gross margin percentage |
|
42.8 |
% |
|
|
48.2 |
% |
|
|
55.2 |
% |
|
|
42.1 |
% |
|
|
|
|
|
|
|
|
||||||||
Sales volume by product tons (000s) |
|
1,262 |
|
|
|
860 |
|
|
|
3,539 |
|
|
|
3,272 |
|
Sales volume by nutrient tons (000s)(1) |
|
580 |
|
|
|
396 |
|
|
|
1,628 |
|
|
|
1,505 |
|
|
|
|
|
|
|
|
|
||||||||
Average selling price per product ton |
$ |
546 |
|
|
$ |
449 |
|
|
$ |
646 |
|
|
$ |
372 |
|
Average selling price per nutrient ton(1) |
|
1,188 |
|
|
|
975 |
|
|
|
1,405 |
|
|
|
809 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted gross margin(2): |
|
|
|
|
|
|
|
||||||||
Gross margin |
$ |
295 |
|
|
$ |
186 |
|
|
$ |
1,263 |
|
|
$ |
513 |
|
Depreciation and amortization |
|
79 |
|
|
|
58 |
|
|
|
213 |
|
|
|
179 |
|
Unrealized net mark-to-market loss (gain) on natural gas derivatives |
|
4 |
|
|
|
(3 |
) |
|
|
(4 |
) |
|
|
(5 |
) |
Adjusted gross margin |
$ |
378 |
|
|
$ |
241 |
|
|
$ |
1,472 |
|
|
$ |
687 |
|
Adjusted gross margin as a percent of net sales |
|
54.9 |
% |
|
|
62.4 |
% |
|
|
64.4 |
% |
|
|
56.4 |
% |
|
|
|
|
|
|
|
|
||||||||
Gross margin per product ton |
$ |
234 |
|
|
$ |
216 |
|
|
$ |
357 |
|
|
$ |
157 |
|
Gross margin per nutrient ton(1) |
|
509 |
|
|
|
470 |
|
|
|
776 |
|
|
|
341 |
|
Adjusted gross margin per product ton |
|
300 |
|
|
|
280 |
|
|
|
416 |
|
|
|
210 |
|
Adjusted gross margin per nutrient ton(1) |
|
652 |
|
|
|
609 |
|
|
|
904 |
|
|
|
456 |
|
_______________________________________________________________________________ |
|
(1) |
Nutrient tons represent the tons of nitrogen within the product tons. |
(2) |
Adjusted gross margin, adjusted gross margin as a percent of net sales and adjusted gross margin per product ton and per nutrient ton are non-GAAP financial measures. Adjusted gross margin is defined as gross margin excluding depreciation and amortization and unrealized net mark-to-market (gain) loss on natural gas derivatives. A reconciliation of adjusted gross margin, adjusted gross margin as a percent of net sales and adjusted gross margin per product ton and per nutrient ton to gross margin, the most directly comparable GAAP measure, is provided in the table above. See “Note Regarding Non-GAAP Financial Measures” in this release. |
Comparison of 2022 to 2021 first nine months periods:
UAN Segment
CF Industries’ UAN segment produces urea ammonium nitrate solution (UAN). UAN is a liquid product with nitrogen content that typically ranges from 28 percent to 32 percent and is produced by combining urea and ammonium nitrate in solution.
|
Three months ended September 30, |
|
Nine months ended September 30, |
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
(dollars in millions, except per ton amounts) |
||||||||||||||
Net sales |
$ |
736 |
|
|
$ |
390 |
|
|
$ |
2,727 |
|
|
$ |
1,056 |
|
Cost of sales |
|
414 |
|
|
|
233 |
|
|
|
1,102 |
|
|
|
759 |
|
Gross margin |
$ |
322 |
|
|
$ |
157 |
|
|
$ |
1,625 |
|
|
$ |
297 |
|
Gross margin percentage |
|
43.8 |
% |
|
|
40.3 |
% |
|
|
59.6 |
% |
|
|
28.1 |
% |
|
|
|
|
|
|
|
|
||||||||
Sales volume by product tons (000s) |
|
1,644 |
|
|
|
1,283 |
|
|
|
5,098 |
|
|
|
4,746 |
|
Sales volume by nutrient tons (000s)(1) |
|
519 |
|
|
|
405 |
|
|
|
1,610 |
|
|
|
1,493 |
|
|
|
|
|
|
|
|
|
||||||||
Average selling price per product ton |
$ |
448 |
|
|
$ |
304 |
|
|
$ |
535 |
|
|
$ |
223 |
|
Average selling price per nutrient ton(1) |
|
1,418 |
|
|
|
963 |
|
|
|
1,694 |
|
|
|
707 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted gross margin(2): |
|
|
|
|
|
|
|
||||||||
Gross margin |
$ |
322 |
|
|
$ |
157 |
|
|
$ |
1,625 |
|
|
$ |
297 |
|
Depreciation and amortization |
|
73 |
|
|
|
56 |
|
|
|
208 |
|
|
|
188 |
|
Unrealized net mark-to-market loss (gain) on natural gas derivatives |
|
4 |
|
|
|
(3 |
) |
|
|
(4 |
) |
|
|
(5 |
) |
Adjusted gross margin |
$ |
399 |
|
|
$ |
210 |
|
|
$ |
1,829 |
|
|
$ |
480 |
|
Adjusted gross margin as a percent of net sales |
|
54.2 |
% |
|
|
53.8 |
% |
|
|
67.1 |
% |
|
|
45.5 |
% |
|
|
|
|
|
|
|
|
||||||||
Gross margin per product ton |
$ |
196 |
|
|
$ |
122 |
|
|
$ |
319 |
|
|
$ |
63 |
|
Gross margin per nutrient ton(1) |
|
620 |
|
|
|
388 |
|
|
|
1,009 |
|
|
|
199 |
|
Adjusted gross margin per product ton |
|
243 |
|
|
|
164 |
|
|
|
359 |
|
|
|
101 |
|
Adjusted gross margin per nutrient ton(1) |
|
769 |
|
|
|
519 |
|
|
|
1,136 |
|
|
|
322 |
|
Media
Chris Close
Director, Corporate Communications
847-405-2542 - This email address is being protected from spambots. You need JavaScript enabled to view it.
Investors
Martin Jarosick
Vice President, Treasury and Investor Relations
847-405-2045 - This email address is being protected from spambots. You need JavaScript enabled to view it.
KILGORE, Texas--(BUSINESS WIRE)--Martin Midstream Partners L.P. (Nasdaq:MMLP) ("MMLP" or the "Partnership") today announced its financial results for the third quarter of 2022.
Bob Bondurant, President and Chief Executive Officer of Martin Midstream GP LLC, the general partner of the Partnership, stated, "During the third quarter, which is typically the Partnership’s weakest quarter due to seasonal lows in the fertilizer and butane businesses, both the Transportation and the Terminalling and Storage segments continued to outperform our internal projections. In the Transportation segment, demand for reliable, experienced tank truck hauling continues to be strong and our expansion in Florida has been positive. On the marine side, rates have now recovered to pre-pandemic levels and asset utilization has improved. In the Terminalling and Storage segment, the underlying drivers of the lubricants and specialty products businesses are positive resulting in higher than anticipated sales volumes. However, the Sulfur and Natural Gas Liquids segments experienced volatility during the third quarter. In the Sulfur segment, both the fertilizer and sulfur groups faced pricing instability resulting in lower fertilizer sales volumes. In addition, the pure sulfur business was impacted by unplanned maintenance expense related to the marine assets deployed in support of the business. Finally, within the NGL segment the butane blending market was negatively impacted by steeply falling prices in September, resulting in a significant non-cash inventory value adjustment.
“Although the markets and the factors that influence them are unpredictable at this time, the Partnership has been able to improve our financial results year over year. However, as commodity prices continue to move erratically from the risk of a global recession and fears of weak oil demand, we are revising our fourth quarter adjusted EBITDA guidance to between $19 and $24 million, resulting in a range of $116 to $121 million for full year 2022.”
THIRD QUARTER 2022 OPERATING RESULTS BY BUSINESS SEGMENT
TERMINALLING AND STORAGE (“T&S”)
T&S Operating Income for the three months ended September 30, 2022 and 2021 was $5.6 million and $4.4 million, respectively.
Adjusted segment EBITDA for T&S was $12.3 million and $11.2 million, for the three months ended September 30, 2022 and 2021, respectively, reflecting continued strength in our lubricant and specialty products divisions.
TRANSPORTATION
Transportation Operating Income for the three months ended September 30, 2022 and 2021 was $12.1 million and $3.9 million, respectively.
Adjusted segment EBITDA for Transportation was $15.1 million and $7.6 million for the three months ended September 30, 2022 and 2021, respectively, reflecting robust demand for land transportation services coupled with improving marine fleet utilization and higher day rates.
SULFUR SERVICES
Sulfur Services Operating Income (Loss) for the three months ended September 30, 2022 and 2021 was $(6.7) million, including a $(3.3) million inventory valuation write down, and $2.3 million, respectively.
Adjusted segment EBITDA for Sulfur Services was $(4.2) million and $4.9 million for the three months ended September 30, 2022 and 2021, respectively, reflecting decreased fertilizer sales volumes related to pricing instability and higher operating expenses in the sulfur business due to marine asset maintenance expense.
NATURAL GAS LIQUIDS (“NGL”)
NGL Operating Income (Loss) for the three months ended September 30, 2022 and 2021 was $(19.0) million, including an $(18.5) million inventory valuation write down, and $1.6 million, respectively, as the butane blending market was negatively impacted by steeply falling prices in September 2022.
Adjusted segment EBITDA for NGL was $(0.2) million and $1.8 million for the three months ended September 30, 2022 and 2021, respectively, primarily reflecting decreased NGL sales volumes and margins.
UNALLOCATED SELLING, GENERAL AND ADMINISTRATIVE EXPENSE (“USGA”)
USGA expenses included in operating income for the three months ended September 30, 2022 and 2021 were $4.3 million and $4.1 million, respectively.
USGA expenses included in adjusted EBITDA for the three months ended September 30, 2022 and 2021 were $4.2 million and $4.0 million, respectively, primarily reflecting an increase in employee related expenses.
CAPITALIZATION
At September 30, 2022, the Partnership had $547 million of total debt outstanding, including $202 million drawn on its $275 million revolving credit facility, $54 million of senior secured 1.5 lien notes due 2024 and $291 million of senior secured second lien notes due 2025. At September 30, 2022, the Partnership had liquidity of approximately $44 million from available capacity under its revolving credit facility. The Partnership’s adjusted leverage ratio, as calculated under the revolving credit facility, was 3.63 times and 3.46 times on September 30, 2022 and June 30, 2022, respectively. The Partnership was in compliance with all debt covenants as of September 30, 2022.
The Partnership’s revolving credit facility matures on August 31, 2023, therefore the outstanding borrowings under the facility are presented as a current liability on the September 30, 2022 financial statements. The Partnership is in the process of refinancing the credit facility, and although no assurance of success can be given, management presently believes the measures being taken will enable the Partnership to successfully extend the maturity of the credit facility.
RESULTS OF OPERATIONS
The Partnership had a net loss for the three months ended September 30, 2022 of $28.0 million, a loss of $0.71 per limited partner unit. The Partnership had a net loss for the three months ended September 30, 2021 of $6.9 million, a loss of $0.17 per limited partner unit. Adjusted EBITDA for the three months ended September 30, 2022 was $18.8 million compared to $21.5 million for the three months ended September 30, 2021. Net cash provided by (used in) operating activities for the three months ended September 30, 2022 was ($45.2) million, compared to $(18.5) million for the three months ended September 30, 2021. Distributable cash flow for the three months ended September 30, 2022 was $(3.5) million compared to $5.2 million for the three months ended September 30, 2021.
Revenues for the three months ended September 30, 2022 were $229.3 million compared to $211.3 million for the three months ended September 30, 2021.
The Partnership had a net loss for the nine months ended September 30, 2022 of $10.0 million, a loss of $0.25 per limited partner unit. The Partnership had a net loss for the nine months ended September 30, 2021 of $11.0 million, a loss of $0.28 per limited partner unit. Adjusted EBITDA for the nine months ended September 30, 2022 was $97.1 million compared to $74.9 million for the nine months ended September 30, 2021. Net cash provided by (used in) operating activities for the nine months ended September 30, 2022 was $(16.8) million, compared to $(12.4) million for the nine months ended September 30, 2021. Distributable cash flow for the nine months ended September 30, 2022 was $39.6 million compared to $25.3 million for the nine months ended September 30, 2021.
Revenues for the nine months ended September 30, 2022 were $775.5 million compared to $596.5 million for the nine months ended September 30, 2021.
EBITDA, adjusted EBITDA, distributable cash flow and adjusted free cash flow are non-GAAP financial measures which are explained in greater detail below under the heading "Use of Non-GAAP Financial Information." The Partnership has also included below a table entitled "Reconciliation of EBITDA, Adjusted EBITDA, Distributable Cash Flow and Adjusted Free Cash Flow" in order to show the components of these non-GAAP financial measures and their reconciliation to the most comparable GAAP measurement.
An attachment included in the Current Report on Form 8-K to which this announcement is included contains a comparison of the Partnership’s adjusted EBITDA for the third quarter 2022 to the Partnership's adjusted EBITDA for the third quarter 2021.
2022 REVISED FINANCIAL GUIDANCE
The Partnership now expects to generate adjusted EBITDA between $116 million and $121 million for full-year 2022, compared to the previously revised adjusted EBITDA guidance of between $126 million and $135 million. This decreased guidance reflects our expectation that the seasonal uplift in commodity prices, specifically normal butane prices as a percentage of crude oil, will be lower than historical patterns at least through year-end 2022.
Distributable cash flow is now expected to be between $38 million and $43 million for full-year 2022, compared to the previous distributable cash flow guidance of between $53 million and $62 million. Adjusted free cash flow is now expected to be between $29 million and $34 million, compared to the previous adjusted free cash flow guidance of between $44 million and $53 million.
MMLP does not intend at this time to provide financial guidance beyond 2022.
The Partnership has not provided comparable GAAP financial information on a forward-looking basis because it would require the Partnership to create estimated ranges on a GAAP basis, which would entail unreasonable effort as the adjustments required to reconcile forward-looking non-GAAP measures cannot be predicted with a reasonable degree of certainty but may include, among others, costs related to debt amendments and unusual charges, expenses and gains. Some or all of those adjustments could be significant.
Investors' Conference Call
Date: Thursday, November 3 2022
Time: 8:00 a.m. CT (please dial in by 7:55 a.m.)
Dial In #: (888) 330-2384
Conference ID: 8536096
Replay Dial In # (800) 770-2030 – Conference ID: 8536096
A webcast of the conference call along with the Third Quarter 2022 Earnings Summary and Revised Guidance Presentation will also be available by visiting the Events and Presentations section under Investor Relations on our website at www.MMLP.com.
About Martin Midstream Partners
MMLP, headquartered in Kilgore, Texas, is a publicly traded limited partnership with a diverse set of operations focused primarily in the Gulf Coast region of the United States. MMLP’s four primary business lines include: (1) terminalling, processing, storage, and packaging services for petroleum products and by-products, including the refining of naphthenic crude oil; (2) land and marine transportation services for petroleum products and by-products, chemicals, and specialty products; (3) sulfur and sulfur-based products processing, manufacturing, marketing and distribution; and (4) natural gas liquids marketing, distribution, and transportation services. To learn more, visit www.MMLP.com. Follow Martin Midstream Partners L.P. on LinkedIn and Facebook.
Forward-Looking Statements
Statements about the Partnership’s outlook and all other statements in this release other than historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements and all references to financial estimates rely on a number of assumptions concerning future events and are subject to a number of uncertainties, including (i) the current and potential impacts of the COVID-19 pandemic generally (including variants of the virus), on an industry-specific basis, and on the Partnership’s specific operations and business, (ii) the effects of the continued volatility of commodity prices and the related macroeconomic and political environment, and (iii) other factors, many of which are outside its control, which could cause actual results to differ materially from such statements. While the Partnership believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties in anticipating or predicting certain important factors. A discussion of these factors, including risks and uncertainties, is set forth in the Partnership’s annual and quarterly reports filed from time to time with the Securities and Exchange Commission (the “SEC”). The Partnership disclaims any intention or obligation to revise any forward-looking statements, including financial estimates, whether as a result of new information, future events, or otherwise except where required to do so by law.
Use of Non-GAAP Financial Information
To assist the Partnership's management in assessing its business, it uses the following non-GAAP financial measures: earnings before interest, taxes, and depreciation and amortization ("EBITDA"), adjusted EBITDA (as defined below) distributable cash flow available to common unitholders (“distributable cash flow”), and free cash flow after growth capital expenditures and principal payments under finance lease obligations ("adjusted free cash flow"). The Partnership's management uses a variety of financial and operational measurements other than its financial statements prepared in accordance with United States Generally Accepted Accounting Principles ("GAAP") to analyze its performance.
Certain items excluded from EBITDA and adjusted EBITDA are significant components in understanding and assessing an entity's financial performance, such as cost of capital and historical costs of depreciable assets.
EBITDA and Adjusted EBITDA. The Partnership defines adjusted EBITDA as EBITDA before unit-based compensation expenses, gains and losses on the disposition of property, plant and equipment, impairment and other similar non-cash adjustments. Adjusted EBITDA is used as a supplemental performance and liquidity measure by the Partnership's management and by external users of its financial statements, such as investors, commercial banks, research analysts, and others, to assess:
The GAAP measures most directly comparable to adjusted EBITDA are net income (loss) and net cash provided by (used in) operating activities. Adjusted EBITDA should not be considered an alternative to, or more meaningful than, net income (loss), operating income (loss), net cash provided by (used in) operating activities, or any other measure of financial performance presented in accordance with GAAP. Adjusted EBITDA may not be comparable to similarly titled measures of other companies because other companies may not calculate adjusted EBITDA in the same manner.
Adjusted EBITDA does not include interest expense, income tax expense, and depreciation and amortization. Because the Partnership has borrowed money to finance its operations, interest expense is a necessary element of its costs and its ability to generate cash available for distribution. Because the Partnership has capital assets, depreciation and amortization are also necessary elements of its costs. Therefore, any measures that exclude these elements have material limitations. To compensate for these limitations, the Partnership believes that it is important to consider net income (loss) and net cash provided by (used in) operating activities as determined under GAAP, as well as adjusted EBITDA, to evaluate its overall performance.
Distributable Cash Flow. The Partnership defines distributable cash flow as net cash provided by (used in) operating activities less cash received (plus cash paid) for closed commodity derivative positions included in accumulated other comprehensive income (loss), plus changes in operating assets and liabilities which (provided) used cash, less maintenance capital expenditures and plant turnaround costs. Distributable cash flow is a significant performance measure used by the Partnership's management and by external users of its financial statements, such as investors, commercial banks and research analysts, to compare basic cash flows generated by us to the cash distributions it expects to pay unitholders. Distributable cash flow is also an important financial measure for the Partnership's unitholders since it serves as an indicator of its success in providing a cash return on investment. Specifically, this financial measure indicates to investors whether or not the Partnership is generating cash flow at a level that can sustain or support an increase in its quarterly distribution rates. Distributable cash flow is also a quantitative standard used throughout the investment community with respect to publicly-traded partnerships because the value of a unit of such an entity is generally determined by the unit's yield, which in turn is based on the amount of cash distributions the entity pays to a unitholder.
Adjusted Free Cash Flow. The Partnership defines adjusted free cash flow as distributable cash flow less growth capital expenditures and principal payments under finance lease obligations. Adjusted free cash flow is a significant performance measure used by the Partnership's management and by external users of its financial statements and represents how much cash flow a business generates during a specified time period after accounting for all capital expenditures, including expenditures for growth and maintenance capital projects. The Partnership believes that adjusted free cash flow is important to investors, lenders, commercial banks and research analysts since it reflects the amount of cash available for reducing debt, investing in additional capital projects, paying distributions, and similar matters. The Partnership's calculation of adjusted free cash flow may or may not be comparable to similarly titled measures used by other entities.
The GAAP measure most directly comparable to distributable cash flow and adjusted free cash flow is net cash provided by (used in) operating activities. Distributable cash flow and adjusted free cash flow should not be considered alternatives to, or more meaningful than, net income (loss), operating income (loss), net cash provided by (used in) operating activities, or any other measure of liquidity presented in accordance with GAAP. Distributable cash flow and adjusted free cash flow have important limitations because they exclude some items that affect net income (loss), operating income (loss), and net cash provided by (used in) operating activities. Distributable cash flow and adjusted free cash flow may not be comparable to similarly titled measures of other companies because other companies may not calculate these non-GAAP metrics in the same manner. To compensate for these limitations, the Partnership believes that it is important to consider net cash provided by (used in) operating activities determined under GAAP, as well as distributable cash flow and adjusted free cash flow, to evaluate its overall liquidity.
MMLP-F
MARTIN MIDSTREAM PARTNERS L.P. CONSOLIDATED AND CONDENSED BALANCE SHEETS (Dollars in thousands)
|
|||||||
|
September 30,
|
|
December 31,
|
||||
|
(Unaudited) |
|
(Audited) |
||||
Assets |
|
|
|
||||
Cash |
$ |
45 |
|
|
$ |
52 |
|
Accounts and other receivables, less allowance for doubtful accounts of $448 and $311, respectively |
|
77,148 |
|
|
|
84,199 |
|
Inventories |
|
135,638 |
|
|
|
62,120 |
|
Due from affiliates |
|
2,393 |
|
|
|
14,409 |
|
Other current assets |
|
17,134 |
|
|
|
12,908 |
|
Total current assets |
|
232,358 |
|
|
|
173,688 |
|
|
|
|
|
||||
Property, plant and equipment, at cost |
|
904,159 |
|
|
|
898,770 |
|
Accumulated depreciation |
|
(578,277 |
) |
|
|
(553,300 |
) |
Property, plant and equipment, net |
|
325,882 |
|
|
|
345,470 |
|
|
|
|
|
||||
Goodwill |
|
16,823 |
|
|
|
16,823 |
|
Right-of-use assets |
|
33,817 |
|
|
|
21,861 |
|
Deferred income taxes, net |
|
16,210 |
|
|
|
19,821 |
|
Other assets, net |
|
2,895 |
|
|
|
2,198 |
|
Total assets |
$ |
627,985 |
|
|
$ |
579,861 |
|
|
|
|
|
||||
Liabilities and Partners’ Capital (Deficit) |
|
|
|
||||
Current installments of long-term debt and finance lease obligations |
$ |
200,651 |
|
|
$ |
280 |
|
Trade and other accounts payable |
|
74,056 |
|
|
|
70,342 |
|
Product exchange payables |
|
711 |
|
|
|
1,406 |
|
Due to affiliates |
|
13,777 |
|
|
|
1,824 |
|
Income taxes payable |
|
613 |
|
|
|
385 |
|
Other accrued liabilities |
|
21,020 |
|
|
|
29,850 |
|
Total current liabilities |
|
310,828 |
|
|
|
104,087 |
|
|
|
|
|
||||
Long-term debt, net |
|
342,566 |
|
|
|
498,871 |
|
Finance lease obligations |
|
— |
|
|
|
9 |
|
Operating lease liabilities |
|
25,485 |
|
|
|
15,704 |
|
Other long-term obligations |
|
8,323 |
|
|
|
9,227 |
|
Total liabilities |
|
687,202 |
|
|
|
627,898 |
|
|
|
|
|
||||
Commitments and contingencies |
|
|
|
||||
Partners’ capital (deficit) |
|
(59,217 |
) |
|
|
(48,853 |
) |
Accumulated other comprehensive income (loss) |
|
— |
|
|
|
816 |
|
Total partners’ capital (deficit) |
|
(59,217 |
) |
|
|
(48,037 |
) |
Total liabilities and partners' capital (deficit) |
$ |
627,985 |
|
|
$ |
579,861 |
|
MARTIN MIDSTREAM PARTNERS L.P. CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS (Unaudited) (Dollars in thousands, except per unit amounts)
|
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
September 30, |
|
September 30, |
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Revenues: |
|
|
|
|
|
|
|
||||||||
Terminalling and storage * |
$ |
20,007 |
|
|
$ |
18,980 |
|
|
$ |
59,859 |
|
|
$ |
56,060 |
|
Transportation * |
|
58,993 |
|
|
|
39,079 |
|
|
|
161,535 |
|
|
|
103,820 |
|
Sulfur services |
|
3,085 |
|
|
|
2,950 |
|
|
|
9,253 |
|
|
|
8,849 |
|
Product sales: * |
|
|
|
|
|
|
|
||||||||
Natural gas liquids |
|
80,891 |
|
|
|
91,764 |
|
|
|
299,034 |
|
|
|
257,081 |
|
Sulfur services |
|
25,783 |
|
|
|
27,887 |
|
|
|
135,691 |
|
|
|
95,109 |
|
Terminalling and storage |
|
40,546 |
|
|
|
30,598 |
|
|
|
110,130 |
|
|
|
75,606 |
|
|
|
147,220 |
|
|
|
150,249 |
|
|
|
544,855 |
|
|
|
427,796 |
|
Total revenues |
|
229,305 |
|
|
|
211,258 |
|
|
|
775,502 |
|
|
|
596,525 |
|
|
|
|
|
|
|
|
|
||||||||
Costs and expenses: |
|
|
|
|
|
|
|
||||||||
Cost of products sold: (excluding depreciation and amortization) |
|
|
|
|
|
|
|
||||||||
Natural gas liquids * |
|
94,668 |
|
|
|
85,137 |
|
|
|
293,350 |
|
|
|
225,862 |
|
Sulfur services * |
|
25,230 |
|
|
|
20,266 |
|
|
|
100,078 |
|
|
|
65,657 |
|
Terminalling and storage * |
|
32,289 |
|
|
|
24,167 |
|
|
|
87,267 |
|
|
|
58,895 |
|
|
|
152,187 |
|
|
|
129,570 |
|
|
|
480,695 |
|
|
|
350,414 |
|
Expenses: |
|
|
|
|
|
|
|
||||||||
Operating expenses * |
|
66,158 |
|
|
|
50,098 |
|
|
|
186,735 |
|
|
|
142,045 |
|
Selling, general and administrative * |
|
10,273 |
|
|
|
9,739 |
|
|
|
31,420 |
|
|
|
29,308 |
|
Depreciation and amortization |
|
13,721 |
|
|
|
13,945 |
|
|
|
43,007 |
|
|
|
42,862 |
|
Total costs and expenses |
|
242,339 |
|
|
|
203,352 |
|
|
|
741,857 |
|
|
|
564,629 |
|
|
|
|
|
|
|
|
|
||||||||
Other operating income (loss), net |
|
790 |
|
|
|
61 |
|
|
|
1,050 |
|
|
|
(610 |
) |
Gain on involuntary conversion of property, plant and equipment |
|
— |
|
|
|
186 |
|
|
|
— |
|
|
|
186 |
|
Operating income (loss) |
|
(12,244 |
) |
|
|
8,153 |
|
|
|
34,695 |
|
|
|
31,472 |
|
|
|
|
|
|
|
|
|
||||||||
Other income (expense): |
|
|
|
|
|
|
|
||||||||
Interest expense, net |
|
(13,906 |
) |
|
|
(14,110 |
) |
|
|
(39,181 |
) |
|
|
(40,372 |
) |
Other, net |
|
(2 |
) |
|
|
— |
|
|
|
(4 |
) |
|
|
(1 |
) |
Total other expense |
|
(13,908 |
) |
|
|
(14,110 |
) |
|
|
(39,185 |
) |
|
|
(40,373 |
) |
|
|
|
|
|
|
|
|
||||||||
Net loss before taxes |
|
(26,152 |
) |
|
|
(5,957 |
) |
|
|
(4,490 |
) |
|
|
(8,901 |
) |
Income tax expense |
|
(1,891 |
) |
|
|
(954 |
) |
|
|
(5,469 |
) |
|
|
(2,111 |
) |
Net loss |
|
(28,043 |
) |
|
|
(6,911 |
) |
|
|
(9,959 |
) |
|
|
(11,012 |
) |
Less general partner's interest in net loss |
|
561 |
|
|
|
138 |
|
|
|
199 |
|
|
|
220 |
|
Less loss allocable to unvested restricted units |
|
90 |
|
|
|
20 |
|
|
|
39 |
|
|
|
30 |
|
Limited partners' interest in net loss |
$ |
(27,392 |
) |
|
$ |
(6,753 |
) |
|
$ |
(9,721 |
) |
|
$ |
(10,762 |
) |
|
|
|
|
|
|
|
|
||||||||
Net loss per unit attributable to limited partners - basic |
$ |
(0.71 |
) |
|
$ |
(0.17 |
) |
|
$ |
(0.25 |
) |
|
$ |
(0.28 |
) |
Net loss per unit attributable to limited partners - diluted |
$ |
(0.71 |
) |
|
$ |
(0.17 |
) |
|
$ |
(0.25 |
) |
|
$ |
(0.28 |
) |
Weighted average limited partner units - basic |
|
38,726,388 |
|
|
|
38,687,874 |
|
|
|
38,725,933 |
|
|
|
38,689,434 |
|
Weighted average limited partner units - diluted |
|
38,726,388 |
|
|
|
38,687,874 |
|
|
|
38,725,933 |
|
|
|
38,689,434 |
|
*Related Party Transactions Shown Below |
|||||||||||||||
Sharon Taylor - Vice President & Chief Financial Officer
(877) 256-6644
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Loop Energy reports:
VANCOUVER, British Columbia--(BUSINESS WIRE)--$LPEN--Loop Energy™ (TSX: LPEN), a designer and manufacturer of hydrogen fuel cells for commercial mobility, today reported consolidated financial results for the third quarter ending September 30, 2022.
Loop Energy Chief Financial Officer, Damian Towns said “We have continued to build on our history of executing with record quarterly and annual revenues driven by our strong growth in purchase orders and customer base. A highlight of the excellent progress made in achieving our stated objective for 2022 is reducing unit costs by 25%, which currently stands at 39% for the first nine months of the year. Our team has also continued to deliver with the launch of our 120 kW product, which uses our next-generation bipolar plate technology. Overall, we remain very upbeat about the progress made not only during Q3 but also the year to date.”
Q3 2022 Highlights
Commercial
Financial
2022 Outlook
Loop Energy’s financial results and MD&A are available at loopenergy.com/investors/
Conference Call Details
Loop Energy will host a conference call on Thursday, November 3, at 8:00 am PT (11:00 am ET) to discuss its financial results for the third quarter of 2022.
To join the call, please dial:
1-877-375-7930 (toll-free)
1 (646) 960-0203 (international)
Following the call’s completion, the recording will be made available on Loop Energy’s investor site.
About Loop Energy Inc.
Loop Energy is a leading designer and manufacturer of hydrogen fuel cell systems targeted for the electrification of commercial vehicles, including light commercial vehicles, transit buses and medium and heavy-duty trucks. Loop Energy’s products feature the company’s proprietary eFlow™ technology in the fuel cell stack’s bipolar plates. At the core of this innovation is its modified geometry that delivers improved uniform current density across the entire active area and increases gas velocity throughout the plate to enhance performance and water management. This innovative design provides OEMs and fleet operators with new levels of fuel efficiency, peak power and durability. For more information about how Loop Energy is driving towards a zero-emissions future, visit www.loopenergy.com.
Forward Looking Information
This press release contains forward-looking information within the meaning of applicable securities legislation, which reflect management’s current expectations and projections regarding future events. Particularly, statements regarding the Company’s expectations of future results, performance, achievements, prospects or opportunities or the markets in which we operate is forward-looking information, including without limitation, our 2022 and 2023 purchase order, cost reduction and revenue targets; our future growth prospects and business outlook including without limitation the expected demand for our products, the planned growth of our customer base and the expected growth of our operations globally. Forward-looking information is based on a number of assumptions (including without limitation assumptions with respect the current and future performance of the Company’s products, growth in demand for the Company’s products, the Company’s ability to execute on its strategy, achieve its targets and progress existing and future customers through the Customer Adoption Cycle in a timely way, and is subject to a number of risks and uncertainties, many of which are beyond the Company’s control and could cause actual results and events to vary materially from those that are disclosed, or implied, by such forward‐looking information. Such risks and uncertainties include, but are not limited to, the realization of electrification of transportation and hydrogen adoption rates, the elimination of diesel fuel and ongoing government support of such developments, the expected growth in demand for fuel cells for the commercial transportation market, our ability to obtain future patent grants for our proprietary technology and the effectiveness of current and future patents in protecting our technology and the factors discussed under “Risk Factors” in the Company’s Annual Information Form dated March 23, 2022. Loop disclaims any obligation to update these forward-looking statements.
Investor Inquiries:
Investor Relations | Tel: +1 604.222.3400 | This email address is being protected from spambots. You need JavaScript enabled to view it.
Laine Yonker | Tel: +1 646.653.7035 | This email address is being protected from spambots. You need JavaScript enabled to view it.
Media Inquiries:
Lucas Schmidt | Tel: +1.604.222.3400 Ext. 603 | This email address is being protected from spambots. You need JavaScript enabled to view it.
SANTA CRUZ, Calif.--(BUSINESS WIRE)--Joby Aviation, Inc. (NYSE: JOBY), a California-based company developing all-electric aircraft for commercial passenger service, today announced its financial results for third quarter 2022. Please visit the Joby investor relations website https://ir.jobyaviation.com/ to view the third quarter 2022 shareholder letter. Today the company will host a live audio webcast of its conference call to discuss the results at 2:00 p.m. PT (5:00 p.m. ET).
Additional Webcast Details:
What: Joby Third Quarter 2022 Earnings Webcast
When: Wednesday, November 2, 2022
Time: 2:00 p.m. PT (5:00 p.m. ET)
Webcast: Upcoming Events section of the company website (www.jobyaviation.com)
If unable to attend the webcast, to listen by phone, please dial 1-877-407-3982 or 1-201-493-6780. A replay of the webcast will be available on the company website following the event.
About Joby Aviation
Joby Aviation, Inc. (NYSE: JOBY) is a California-based transportation company developing an all-electric vertical take-off and landing aircraft which it intends to operate as part of a fast, quiet, and convenient service in cities around the world. To learn more, visit www.jobyaviation.com.
Forward Looking Statements
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding the development and performance of Joby’s aircraft, the growth of its manufacturing capabilities and its regulatory outlook, progress and timing. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “anticipate”, “estimate”, “expect”, “project”, “plan”, “intend”, “believe”, “may”, “will”, “should”, “can have”, “likely” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially including: Joby’s ability to launch its aerial ridesharing service and the growth of the urban air mobility market generally; Joby’s ability to produce aircraft that meet its performance expectations in the volumes and on the timelines that it projects; the competitive environment in which it operates; its future capital needs; its ability to adequately protect and enforce its intellectual property rights; its ability to effectively respond to evolving regulations and standards relating to its aircraft; its reliance on a third-party suppliers and service partners; uncertainties related to Joby’s estimates of the size of the market for its service and future revenue opportunities; and other important factors discussed in the section titled “Risk Factors” in its Annual Report on Form 10-K, filed with the Securities and Exchange Commission (the “SEC”) on March 28, 2022, and in other reports it files with or furnishes to the SEC. Any such forward-looking statements represent management’s estimates and beliefs as of the date of this press release. While Joby may elect to update such forward-looking statements at some point in the future, it disclaims any obligation to do so, even if subsequent events cause its views to change.
Investors:
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Media:
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NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
TORONTO--(BUSINESS WIRE)--Sherritt International Corporation (“Sherritt”, the “Corporation”, the “Company”) (TSX: S), a world leader in the mining and hydrometallurgical refining of nickel and cobalt from lateritic ores, today reported its financial results for the three and nine months ended September 30, 2022. All amounts are in Canadian currency unless otherwise noted.
“We are very pleased with the progress we have made in meeting key strategic priorities for the year. With the signing of the agreement to address our Cuban receivables, we are pleased to announce that Sherritt’s Board has approved the next phase of our expansion plans at the Moa Joint Venture. We narrowed the scope of our expansion investment to the most critical components resulting in an estimated cost of US$50 million on a 100% basis. This demonstrates our capital discipline in pursuing our most valuable brownfields growth objectives,” said Leon Binedell, President and CEO of Sherritt International Corporation. “Reaching agreement on our Cuban receivables ahead of defining the expansion scope supports our sound capital and joint venture management. The investment, which builds on our previously approved SPP project, will expand mixed sulphide intermediate production by 6,500 tonnes of contained nickel and cobalt at Moa at a low capital intensity of approximately US$13,200 per annual tonne of contained nickel.”
“We continue to be encouraged by strong market fundamentals for our nickel, cobalt and fertilizer products which we expect will continue into Q4,” continued Mr. Binedell. “Equally important, after months of effort and negotiations, we have finalized an agreement with our Cuban partners on what we believe is a mutually beneficial, innovative arrangement to address our Cuban receivables over five years. This arrangement provides the cash we need to pursue our strategic objectives, and continue to fund our growth initiatives and debt obligations. In addition to the receivables agreement, we received government approval for the extension of our power generation contract for an additional 20 years. Concurrently, we finalized an extension to our “Moa swap” payment agreement, thus ensuring that we maintain our interest in this economically beneficial business while ensuring we have access to foreign currency from our Power business on a timely basis.”
SELECTED Q3 2022 DEVELOPMENTS
(1) |
Non-GAAP financial measures. For additional information see the Non-GAAP and other financial measures section of this press release. |
EXPANSION PROJECT UPDATE
LIFE OF MINE/UPDATED 43-101 TECHNICAL REPORT
The work to complete the Economic Cut-Off Grade (ECOG) and Life of Mine (LOM) development continues at the Moa mine.
DEVELOPMENTS SUBSEQUENT TO QUARTER END
Q3 2022 FINANCIAL HIGHLIGHTS
|
For the three months ended |
|
For the nine months ended |
|
|||||||||||
|
2022 |
2021 |
|
2022 |
2021 |
|
|||||||||
$ millions, except per share amount |
September 30 |
September 30 |
Change |
September 30 |
September 30 |
Change |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
Revenue |
$ |
30.2 |
$ |
20.7 |
46% |
$ |
130.2 |
$ |
73.6 |
77% |
|||||
Combined revenue(1) |
|
190.1 |
|
120.2 |
58% |
|
613.8 |
|
414.2 |
48% |
|||||
Earnings (loss) from operations and joint venture |
|
21.3 |
|
(10.8) |
297% |
|
118.8 |
|
(12.0) |
nm(2) |
|||||
Net (loss) earnings from continuing operations |
|
(26.9) |
|
(15.5) |
(74%) |
|
71.0 |
|
(27.8) |
355% |
|||||
Net (loss) earnings for the period |
|
(26.3) |
|
(16.2) |
(62%) |
|
70.5 |
|
(32.5) |
317% |
|||||
Adjusted EBITDA(1) |
|
37.4 |
|
17.6 |
113% |
|
197.9 |
|
65.8 |
201% |
|||||
Net (loss) earnings from continuing operations ($ per share) |
|
(0.07) |
|
(0.04) |
(75%) |
|
0.18 |
|
(0.07) |
357% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash provided by continuing operations for operating activities |
|
18.8 |
|
16.2 |
16% |
|
50.0 |
|
14.7 |
240% |
|||||
Combined free cash flow(1) |
|
0.1 |
|
19.3 |
(99%) |
|
21.9 |
|
40.9 |
(46%) |
|||||
Average exchange rate (CAD/US$) |
|
1.306 |
|
1.260 |
4% |
|
1.283 |
|
1.251 |
3% |
|||||
(1) |
Non-GAAP financial measures. For additional information see the Non-GAAP and other financial measures section of this press release. |
|
(2) |
Not meaningful (nm). |
|
|
|
|
|
2022 |
2021 |
|
|||||
$ millions, as at |
|
|
|
September 30 |
December 31 |
Change |
||||||
|
|
|
|
|
|
|
|
|
|
|
||
Cash and cash equivalents |
|
|
|
|
|
$ |
137.6 |
$ |
145.6 |
(5%) |
||
Loans and borrowings |
|
|
|
|
|
|
398.6 |
|
444.5 |
(10%) |
||
Cash and cash equivalents at September 30, 2022 were $137.6 million, up from $124.6 million at June 30, 2022. The increase in cash was primarily due to continued strong fertilizer pre-buys for fall season sales as a result of a generally successful harvest in western Canada, partly offset by the lack of distributions from the Moa JV during the quarter, and $10.4 million of capital expenditures.
Despite not receiving distributions from the Moa JV in the third quarter of 2022, distributions to the end of the quarter totaled $43.4 million (US$34 million). Distributions from the Moa JV are determined based on available cash in excess of liquidity requirements, including anticipated nickel and cobalt prices, planned spending on capital, working capital needs, and other expected liquidity requirements. Sherritt continues to expect distributions in the second half of 2022 to exceed the amount received in the first half of the year. To date in Q4, Sherritt has received $20.6 million (US$15 million) as its share of distributions from the Moa JV.
Sherritt also received US$12.5 million ($16.2 million) from Energas in Q3 which was used to facilitate foreign currency payments for the Energas operations. Concurrent with the finalization of the Cobalt Swap, Sherritt and its Cuban partners agreed to extend the Energas Payment Agreement to fund the operating and maintenance costs of Energas, as well as to cover future payments that would be owed to Sherritt. Sherritt expects to continue to receive approximately US$4.2 million ($5.6 million) per month under the agreement.
Of the $137.6 million of cash and cash equivalents, $36.9 million was held in Canada, up from $28.6 million as at June 30, 2022, and $95.8 million was held at Energas, up from $91.8 million as at June 30, 2022. The remaining amounts were held in Cuba and other countries.
The Cobalt Swap agreement
As announced on October 13, Sherritt finalized an agreement with its Cuban partners to settle the total outstanding Cuban receivables over five years, beginning January 1, 2023. Under the agreement, the Moa JV will prioritize payment of dividends in the form of finished cobalt to each partner, up to an annual maximum volume of cobalt, with any additional dividends in a given year to be distributed in cash. All of the Cuban partner’s share of these cobalt dividends, and potentially additional cash dividends, will be redirected to Sherritt as payment to settle the receivables until the annual minimum payment amount and cobalt dividend volume, including the collection of any prior year shortfalls, has been reached.
On January 1, 2023, the outstanding receivable amounts owing to Sherritt from Energas S.A. (Energas) and Union Cuba-Petroleo (CUPET) – estimated to total $362 million – will be assumed by General Nickel Company (GNC), Sherritt’s Moa JV partner, who in turn will enter into payment agreements of an equivalent amount, denominated in Cuban pesos, with Energas and CUPET. This amount includes the Energas conditional sales agreement (Energas CSA) receivable of $332.4 million and trade accounts receivables from CUPET of $29.5 million. This reflects the total amount owing to Sherritt from Energas and CUPET rather than only the overdue amounts (US$153.2 million at September 30, 2022) based on scheduled payments. The Energas CSA balance includes the total amount owing, excluding the 33 1/3% elimination reported in Sherritt’s consolidated financial statements.
No interest will accrue on the Energas CSA to ensure repayment within five years; however, in the event that the total outstanding receivables are not fully repaid by December 31, 2027, interest will accrue retroactively at 8% per annum from January 1, 2023 on the unpaid principal amount, and the unpaid principal and interest amounts will become due and payable to Sherritt by GNC.
Over the five-year period beginning January 1, 2023, the Moa JV expects to distribute a maximum of 2,082 tonnes, or approximately 60% of current production (100% basis), of finished cobalt annually to the joint venture partners (finished cobalt dividends). Accordingly, Sherritt expects to receive a maximum of 1,041 tonnes of the finished cobalt dividends per year in respect of its 50% share of the Moa JV. GNC will redirect its 50% share of the finished cobalt dividends, up to 1,041 tonnes per year, to Sherritt as repayment towards the outstanding receivables, provided that the total cobalt volume redirected has a value of at least US$57 million. Any shortfall in the annual minimum payment amount and cobalt dividend volume, will be carried forward to the subsequent year such that full repayment is expected to be made within five years.
Upon receipt of the finished cobalt dividends, the title to both Sherritt and its partner’s redirected cobalt share will be transferred immediately to a Sherritt warehouse in Fort Saskatchewan, from which Sherritt will sell the finished cobalt in the market.
This transaction represents a significant milestone for Sherritt and is expected to provide significant cash flow to deliver on the Corporation’s strategic priorities to reduce debt and actively expand its business through:
The diagram in Appendix 1 summarizes the key components of the Cobalt Swap.
Adjusted net earnings (loss) from continuing operations(1)
|
|
|
2022 |
|
|
2021 |
||||||
For the three months ended September 30 |
$ millions |
$/share |
$ millions |
$/share |
||||||||
|
|
|
|
|
|
|
|
|
||||
Net (loss) earnings from continuing operations |
$ |
(26.9) |
$ |
(0.07) |
$ |
(15.5) |
$ |
(0.04) |
||||
|
|
|
|
|
|
|
|
|
||||
Adjusting items: |
|
|
|
|
|
|
|
|
||||
Sherritt - Unrealized foreign exchange (gain) loss - continuing operations |
|
(4.6) |
|
(0.01) |
|
7.9 |
|
0.02 |
||||
Corporate - Severance and other contractual benefits expense |
|
- |
|
- |
|
3.1 |
|
0.01 |
||||
Corporate - Unrealized losses on commodity put options |
|
- |
|
- |
|
(1.3) |
|
- |
||||
Corporate - Realized loss on commodity put options |
|
- |
|
- |
|
1.7 |
|
0.01 |
||||
Moa Joint Venture - Inventory obsolescence |
|
0.1 |
|
- |
|
1.3 |
|
- |
||||
Fort Site - Inventory obsolescence |
|
- |
|
- |
|
1.0 |
|
- |
||||
Oil and Gas - Gain on disposal of property, plant and equipment |
|
- |
|
- |
|
(1.2) |
|
- |
||||
Oil and Gas - Realized foreign exchange gain due to Cuban currency unification |
|
- |
|
- |
|
(10.0) |
|
(0.03) |
||||
Oil and Gas and Power - trade accounts receivable, net ACL revaluation |
|
(1.1) |
|
- |
|
(1.4) |
|
- |
||||
Power - Energas conditional sales agreement ACL revaluation(2) |
|
48.5 |
|
0.12 |
|
- |
|
- |
||||
Other(3) |
|
- |
|
- |
|
0.7 |
|
- |
||||
Total adjustments, before tax |
$ |
42.9 |
$ |
0.11 |
$ |
1.8 |
$ |
0.01 |
||||
Tax adjustments |
|
(2.1) |
|
(0.01) |
|
0.3 |
|
- |
||||
Adjusted net earnings (loss) from continuing operations |
$ |
13.9 |
$ |
0.03 |
$ |
(13.4) |
$ |
(0.03) |
||||
|
|
|
|
|
||||||||
|
|
|
2022 |
|
|
2021 |
||||||
For the nine months ended September 30 |
$ millions |
$/share |
$ millions |
$/share |
||||||||
|
|
|
|
|
|
|
|
|
||||
Net earnings (loss) from continuing operations |
$ |
71.0 |
$ |
0.18 |
$ |
(27.8) |
$ |
(0.07) |
||||
|
|
|
|
|
|
|
|
|
||||
Adjusting items: |
|
|
|
|
|
|
|
|
||||
Sherritt - Unrealized foreign exchange gain - continuing operations |
|
(9.5) |
|
(0.02) |
|
(3.3) |
|
(0.01) |
||||
Corporate - Gain on repurchase of notes |
|
(13.8) |
|
(0.03) |
|
(2.1) |
|
(0.01) |
||||
Corporate - Transaction finance charges on repurchase of notes |
|
1.2 |
|
- |
|
- |
|
- |
||||
Corporate - Severance and other contractual benefits expense |
|
- |
|
- |
|
5.5 |
|
0.02 |
||||
Corporate - Unrealized losses on commodity put options |
|
(0.9) |
|
- |
|
3.0 |
|
0.01 |
||||
Corporate - Realized losses on commodity put options |
|
0.9 |
|
- |
|
2.5 |
|
0.01 |
||||
Moa Joint Venture - Inventory obsolescence |
|
0.5 |
|
- |
|
1.3 |
|
- |
||||
Fort Site - Inventory obsolescence |
|
- |
|
- |
|
1.2 |
|
- |
||||
Oil and Gas - Gain on disposal of property, plant and equipment |
|
(1.3) |
|
- |
|
(1.2) |
|
- |
||||
Oil and Gas - Realized foreign exchange gain due to Cuban currency unification |
|
- |
|
- |
|
(10.0) |
|
(0.03) |
||||
Oil and Gas and Power - trade accounts receivable, net ACL revaluation |
|
0.4 |
|
- |
|
0.1 |
|
- |
||||
Power - Energas conditional sales agreement ACL revaluation(2) |
|
49.0 |
|
0.12 |
|
2.7 |
|
0.01 |
||||
Other(3) |
|
- |
|
- |
|
(0.4) |
|
- |
||||
Total adjustments, before tax |
$ |
26.5 |
$ |
0.07 |
$ |
(0.7) |
$ |
- |
||||
Tax adjustments |
|
(2.5) |
|
(0.01) |
|
(0.2) |
|
- |
||||
Adjusted net earnings (loss) from continuing operations |
$ |
95.0 |
$ |
0.24 |
$ |
(28.7) |
$ |
(0.07) |
||||
(1) |
A non-GAAP financial measure. For additional information see the Non-GAAP and other financial measures section of this press release. |
|
(2) |
|
Primarily related to the recognition of a $48.5 million non-cash loss on the revaluation of the ACL on the Energas CSA receivable related to the signing of the Cobalt Swap subsequent to period end and in part as a result of the suspension of interest on the Energas CSA over the five-year period of the agreement. |
(3) |
Other items primarily relate to losses in net finance (expense) income. |
In the three and nine months ended September 30, 2022, the net loss and net earnings from continuing operations, respectively, include the recognition of a $48.
For further investor information contact:
Lucy Chitilian, Director, Investor Relations
Telephone: (416) 935-2457
Toll-free: 1 (800) 704-6698
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
Sherritt International Corporation
Bay Adelaide Centre, East Tower
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Toronto, ON M5H 4E3
www.sherritt.com
CHICAGO--(BUSINESS WIRE)--$EXC--Exelon (Nasdaq: EXC) Chief Executive Officer Chris Crane has announced that he will retire from his position as CEO and as a director of the Exelon Board effective Friday, Dec. 30, 2022. The Exelon Board has elected Calvin G. Butler Jr., currently president and chief operating officer (COO), to the role of president and chief executive officer as of Dec. 31, 2022. Butler also will join Exelon’s Board of Directors. The company recently promoted Butler and expanded his responsibilities as a step in the company’s leadership succession plans. Crane accelerated his retirement plans to focus on his health after learning in recent days that he will require treatment for significant spinal and hip issues. He will work with Butler through the end of the year on the transition process.
Crane has been the company’s CEO and a member of the Board of Directors since 2012. During his tenure, Exelon has been an industry leader in improving the reliability and resilience of the grid, as well as combatting climate change through clean energy generation, safety and operational improvements and customer service. Crane established within Exelon and the industry a focus on workforce development in underserved communities, with particular attention on STEM careers for young women and job training and placement for work-ready adults. He is committed to diversity, equity and inclusion, signing the White House Equal Pay Pledge and supporting DACA. He drove diversity, equity and inclusion at all levels of the company, and leaves in place a talented, experienced and highly diverse senior leadership team. Most recently, he led the separation of Exelon and Constellation, unlocking significant value for both companies’ shareholders.
Crane joined Exelon (then ComEd) in 1998 and was named chief nuclear officer in 2004. Crane assumed responsibility for Exelon’s fossil, hydro and renewables facilities, in addition to the nuclear fleet, in 2007. He oversaw a broad range of generation and business development initiatives, including new nuclear development, nuclear operating services, development of the nation's largest urban solar project, innovative decommissioning strategies and asset optimization. Crane was named president of Exelon Generation in 2008, with added responsibility for the Power Team, Exelon's former wholesale power trading and competitive retail organization.
“We are grateful to Chris for his leadership of Exelon and the industry,” said John F. Young, chair of the Exelon Board of Directors. “From building the world’s leading nuclear operating fleet and advocating for the nuclear facilities that provide a significant portion of the nation’s clean energy to building the leading pure transmission and distribution company that Exelon is today, Chris’ focus has been on ensuring a cleaner and brighter future for our customers and communities. On behalf of the Exelon Board, we are grateful for Chris’ more than two decades of service to Exelon. We will support Chris and Calvin during this transition period and look forward to working with Calvin as he begins his role as the new president and chief executive officer of Exelon.”
Crane completed highly successful mergers with Constellation Energy in 2012 and with Pepco Holdings in 2016 to create the nation’s largest energy company by customer count. Exelon’s utilities serve more than 10 million customers today. As CEO, Crane positioned Exelon’s utilities to consistently perform in the top quartile for service reliability and customer satisfaction over the last five years. In its most recent quarter, for example, all Exelon operating companies were in the top quartile for outage duration, a key element of reliability.
Crane is former chair and serves on the board of the Edison Electric Institute. He is a member of the board of directors of AEGIS Insurance Services, and former chair of the Institute of Nuclear Power Operations and the Nuclear Energy Institute, the nation’s nuclear industry trade association. He is immediate past chair of the board of the Museum of Science and Industry, Chicago, and a member of the boards of Get in Chicago and the Economic Club of Washington, DC.
“I’ve spent my entire career in the energy industry and for the last 10 years, I’ve had the privilege of being Exelon’s CEO, working alongside our thousands of employees who are powering a cleaner and brighter future for our customers and communities. The work we do is absolutely vital for the people we serve and the future of our planet,” said Crane. “I truly regret that health challenges are requiring me to step away, but I have great faith in Calvin and his leadership abilities, as well as the rest of the team. Calvin is a man of unquestionable integrity, a talented leader and dedicated to our purpose, our values and ensuring that the benefits of clean energy are shared equitably across all of the communities we serve. While I won’t be at the helm after this year, as Exelon leads the transformation of the energy industry, I know the company and our people are in excellent hands, and I will enjoy watching Exelon’s continued success.”
Prior to being promoted to president and COO in October 2022, Butler had served as senior executive vice president and COO since February 2022. He previously served as Exelon Utilities CEO, with oversight of Exelon’s six electric and gas delivery companies, since 2019.
“Leading Exelon is a privilege and responsibility that I take very seriously,” said Butler. “Chris is a tremendous leader, mentor and friend. As our world has been undergoing significant change, so too has the energy industry, and Chris has been at the forefront of that evolution. At Exelon, we are uniquely positioned to lead the nation and our industry to a clean energy future that is safe, reliable, affordable and equitable for all. I appreciate the Board’s confidence in me and will do everything I can to serve our customers and communities, keep our employees safe and move the energy industry forward.”
Butler joined the company in 2008, is a 14-year veteran of Exelon and has more than 28 years of leadership experience in the utilities industry and in regulatory, legislative and public affairs. Prior to becoming CEO of Baltimore Gas and Electric (BGE) in March 2014, Butler served as BGE’s senior vice president for Regulatory and External Affairs. In addition, he has held various leadership positions at ComEd, including as senior vice president of Corporate Affairs and vice president of Governmental and Legislative Affairs. Before joining Exelon in 2008, he held senior leadership roles in external affairs as well as in manufacturing with the print, digital and supply chain solutions company R.R. Donnelley. Butler spent his early career with Central Illinois Light Company (CILCORP, Inc.), where he worked in government affairs, legal and strategy.
He has been recognized by several organizations for his leadership and community commitment. In 2017, he was named among Black Enterprise Magazine’s “300 Most Powerful Executives in Corporate America,” and “Industrialist of the Year” by the Baltimore Museum of Industry. The Daily Record named Butler one of Maryland’s “Most Admired CEOs” and one of its top 35 “Influential Marylanders,” while Baltimore Magazine named him as one of its “Top Ten Baltimoreans.”
Butler serves as chair of each Exelon operating company board — BGE, ComEd, PECO and PHI. He is the vice chair of the Institute of International Education (IIE) and also serves on the board of M&T Bank Corporation (NYSE: MTB), the board of RLI Corp. (NYSE: RLI) and the boards of several prominent Baltimore-based organizations, including the Baltimore Community Foundation, University of Maryland School of Medicine, Greater Baltimore Committee, Cal Ripken, Sr. Foundation and Caves Valley Golf Club, and on the Board of his undergraduate alma mater, Bradley University. Butler also serves on the James Madison Council of the Library of Congress. He earned a bachelor’s degree from Bradley University; a Juris Doctor degree from Washington University School of Law; and an honorary doctorate of Humane Letters from Morgan State University. He is an active member of the Kappa Alpha Psi Fraternity, Inc.
# # #
Exelon will hold its Q3 2022 earnings call on Thursday, Nov. 3, 2022, at 10 a.m. ET. Exelon expects to reaffirm the midpoint of its 2022 adjusted (non-GAAP) operating earnings* guidance as well as its adjusted operating earnings* growth target of 6-8% from 2021-2025.
Exelon is the nation’s largest energy transmission and distribution company. More information about Exelon is available at exeloncorp.com.
*This non-GAAP financial measure is not a presentation defined under GAAP and may not be comparable to other companies’ presentations. Exelon has provided this non-GAAP financial measure as supplemental information. This non-GAAP measure should not be deemed more useful than, a substitute for, or an alternative to the most comparable GAAP measure. Please refer to the reconciliation of adjusted (non-GAAP) operating earnings measure to net income, which is the most directly comparable GAAP measure, provided with Exelon’s earnings materials for the second quarter filed with the SEC on Aug. 3, 2022.
About Exelon
Exelon (Nasdaq: EXC) is a Fortune 200 company and the nation’s largest energy delivery company, serving more than 10 million customers through six fully regulated transmission and distribution utilities — Atlantic City Electric (ACE), Baltimore Gas and Electric (BGE), Commonwealth Edison (ComEd), Delmarva Power & Light (DPL), PECO Energy Company (PECO), and Potomac Electric Power Company (Pepco). More than 18,000 Exelon employees dedicate their time and expertise to powering a cleaner and brighter future for our customers and communities through reliable, affordable and efficient energy delivery, workforce development, equity, economic development and volunteerism. Follow Exelon on Twitter @Exelon.
Cautionary Statements Regarding Forward-Looking Statements
This Current Report contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties. Words such as “could,” “may,” “expects,” “anticipates,” “will,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “predicts,” “should,” and variations on such words, and similar expressions that reflect our current views with respect to future events and operational, economic, and financial performance, are intended to identify such forward-looking statements.
The factors that could cause actual results to differ materially from the forward-looking statements made by Exelon Corporation (Registrant) include those factors discussed herein, as well as the items discussed in (1) the Registrants’ 2021 Annual Report on Form 10-K filed with the SEC on Feb. 25, 2022 in Part I, ITEM 1A. Risk Factors; (2) the Registrants’ Current Report on Form 8-K filed with the SEC on June 30, 2022 to recast Exelon’s consolidated financial statements and certain other financial information originally included in the 2021 Form 10-K in (a) Part II, ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, and (b) Part II, ITEM 8. Financial Statements and Supplementary Data: Note 17, Commitments and Contingencies; (3) the Registrants’ Third Quarter 2022 Quarterly Report on Form 10-Q (to be filed on Nov. 3, 2022) in (a) Part II, ITEM 1A. Risk Factors, (b) Part I, ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, and (c) Part I, ITEM 1. Financial Statements: Note 13, Commitments and Contingencies; and (4) other factors discussed in filings with the SEC by the Registrants.
Nick Alexopulos
Corporate Communications
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Transaction Positions Cardinal for Growth and Future Bolt-On Opportunities in the Core of the Basin
DALLAS--(BUSINESS WIRE)--Cardinal Midstream Partners (“Cardinal”), an independent midstream energy company based in Dallas, announced today it has signed definitive agreements with Medallion Midstream Services (“Medallion”) to acquire Medallion’s natural gas gathering and processing business in the Delaware Basin in West Texas. The transaction is subject to customary closing conditions and is expected to close in early 2023.
The newly acquired midstream infrastructure includes natural gas gathering and processing solutions for top-tier producer customers in the heart of the Delaware Basin. The system spans Reeves and Loving counties and includes approximately 80 miles of high- and low-pressure natural gas gathering pipelines and a 140 million cubic feet per day (MMcf/d) natural gas processing facility.
CEO Perspective
“This acquisition in the prolific Delaware Basin will serve as the cornerstone of Cardinal’s natural gas gathering and processing business strategy,” said Doug Dormer, Cardinal Chief Executive Officer. “The business is an ideal fit to leverage our team’s core competencies and industry relationships. We look forward to expanding the asset base and providing meaningful midstream solutions to serve area producers’ growth.”
From EnCap Flatrock
“Cardinal was the first management team we backed when we formed EnCap Flatrock in 2008 and Doug has been an incredible partner,” said Billy Lemmons, EnCap Flatrock Managing Partner and Founder. “We’re very excited about this next chapter of the Cardinal story with the acquisition of this high-quality asset, and look forward to Doug and his team continuing their track record of success.”
Advisors
Shearman & Sterling LLP is serving as legal advisor to Cardinal. Locke Lord LLP is serving as legal advisor and Greenhill & Co., LLC. is serving as financial advisor to Medallion.
About Cardinal Midstream
Based in Dallas, Cardinal Midstream Partners was founded in 2022 and is focused on the pursuit of midstream acquisition and development opportunities across North America, specifically natural gas gathering and processing and congruent carbon capture and sequestration. The company is led by four founders: Chief Executive Officer Doug Dormer; Chief Financial Officer Douglas Gale; Chief Commercial Officer Justin Garrity; and Chief Operating Officer Clayton Hewett. With more than 80 years of combined experience in the energy industry, the founders each have built notable careers creating, managing, constructing, and operating successful midstream businesses through full life cycle. For more information, visit cardinalmp.com.
About EnCap Flatrock Midstream
EnCap Flatrock Midstream provides value-added growth capital to proven management teams focused on midstream infrastructure opportunities across North America. The firm was formed in 2008 by a partnership between EnCap Investments L.P. and Flatrock Energy Advisors, LLC. Based in San Antonio with offices in Oklahoma City and Houston, the firm manages investment commitments of nearly $9 billion from a broad group of prestigious institutional investors. EnCap Flatrock Midstream is currently making commitments to new management teams from EFM Fund IV, a $3.25 billion fund. For more information, please visit efmidstream.com.
Meredith Hargrove Howard
Redbird Communications Group
210-737-4478
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Net production at midpoint of guidance; increased 26% quarter-over-quarter
Capturing higher returns with two rigs currently drilling in Webb County Gas area
Closed accretive bolt-on liquids-weighted acquisition in DeWitt and Gonzales counties
Established new dry gas position in Dorado play of Webb County
HOUSTON--(BUSINESS WIRE)--SilverBow Resources, Inc. (NYSE: SBOW) (“SilverBow” or the “Company”) today announced operating and financial results for the third quarter of 2022. Highlights include:
MANAGEMENT COMMENTS
Sean Woolverton, SilverBow’s Chief Executive Officer, commented, “Our strong third quarter results highlight the success of our differentiated strategy to deliver growth while maintaining balance sheet discipline. We increased total production more than 40% year-over-year, with oil production up more than 100%, reflecting the impact of our seven strategic acquisitions over the past five quarters. We are proud of all that we accomplished in the quarter, including the announcement of a new dry gas position in the Dorado play of Webb County, which adds stacked pay development opportunities to our near-term drilling schedule. We also acquired incremental working interest and adjacent properties located at our liquids-weighted Karnes trough area. The enhanced economics and development potential of this area compete for drilling capital within our portfolio and warrant a dedicated drilling rig, which we currently plan to activate during the middle of 2023. The culmination of our acquisitions to date is reflected in our PDP PV-10 of $2.1 billion.”
Mr. Woolverton commented further, “Looking ahead, both our 2023 production and EBITDA are set to increase over 50% year-over-year. We have visibility and have taken significant steps towards reaching a key scale target during 2024 of over 0.5 billion cubic feet equivalent per day of production. Our capital spend range provides SilverBow with the flexibility to adjust our drilling activity in line with commodity prices. Adding a third rig focused on liquids in the second half of 2023 supports our objective of having a 50/50 mix of oil and gas revenue while driving double digit production growth into 2025. As our leverage declines below 1.0x, we have a range of options to deploy capital, including re-investing in the drillbit, financing further in-basin consolidation and implementing a shareholder returns plan. We are pleased with the execution of our disciplined growth strategy and opportunities ahead for SilverBow as we balance organic growth and acquisitions while prioritizing significant cash flow generation."
OPERATIONS HIGHLIGHTS
During the third quarter of 2022, SilverBow drilled 13 net wells and completed and brought online 11 net wells. In its Webb County Gas area, the Company completed and brought online a two-well pad which produced a 30-day average of 30 MMcf/d (100% gas). Of the two wells, one targeted the Austin Chalk formation and represents SilverBow's best performing Austin Chalk well to date. In its Central Oil area, the Company completed and brought online a two-well pad which had been drilled by the previous operator prior to SilverBow taking ownership on June 30, 2022. Performance from the wells has exceeded expectations with a 30-day average of 2,400 Boe/d (94% liquids), however the drilling rig experienced operational delays prior to SilverBow taking ownership and, ultimately, a third well that was drilled on the pad had to be abandoned due to a mechanical failure. The Company also brought online a three-well pad in its Central Oil area early in the fourth quarter with initial results exceeding expectations.
Net equivalent production for the third quarter of 2022 was at the midpoint of guidance. Gas volumes came in at the high-end of guidance, with NGL volumes exceeding guidance. Oil volumes were lower than anticipated due to the mechanical failure on the aforementioned two-well pad and resultant timing delays of the remaining wells drilled during the third quarter. However, as mentioned above, the performance to date from the wells in the Central Oil area remains strong and is exceeding expectations. The rig subsequently returned to expected efficiency levels by the end of July. The Company does not expect any other impact outside of first sales occurring later in the year than what was originally planned. As detailed further in the 2022 guidance section, SilverBow is guiding to estimated production of 315-329 MMcfe/d (70% gas) for the fourth quarter of 2022 and 270-274 MMcfe/d (73% gas) for full year 2022.
SilverBow operated two drilling rigs for the entirety of the third quarter, and the Company intends to continue at this pace for the remainder of 2022. At the beginning of October, SilverBow moved both its drilling rigs to its Webb County Gas area. This decision was based on the continued strong Austin Chalk results in the Dorado play. Combining the third and fourth quarters, the Company will have drilled 16 wells at its Fasken property, with 15 of them targeting the Austin Chalk and 1 targeting the Upper Eagle Ford. The returns SilverBow is generating in the Austin Chalk warranted this shift and much of this development should benefit from strong winter gas prices. In addition, the Company's non-op partner elected not to participate in 12 of the 16 wells which will add an incremental 4.5 net wells to SilverBow's 2022 development as it increases its working interest in those wells from 64% to 100%. Management believes this near-term drilling opportunity will result in significant accretion to reserve PV-10 value and increased gas production beyond 2022, which more than offsets the lower near-term oil production from the recent scheduling changes. As a returns-focused company, SilverBow has continued to benefit from its ability to be nimble and deploy capital where the economics make the largest impact.
SilverBow revised its 2022 capital budget to a range of $320-$340 million. The 5% increase to the capital budget reflects the higher working interest captured across the aforementioned Webb County Gas wells drilled in the fourth quarter and land and leasing spend of approximately $7.5 million. Inflationary pressures remain persistent in the current service market but had previously been factored into SilverBow's 2022 capital budget outlook and were not a primary driver of the updated range. With two fully utilized rigs, the Company has greater line of sight into upcoming activity levels and is addressing cost inflation through enhanced procurement initiatives, pre-ordering key materials and employing a range of short and long-term contracts. As always, SilverBow optimizes its drilling schedule based on commodity prices, returns on investment and strategically proving up additional inventory within the portfolio.
PRODUCTION VOLUMES, OPERATING COSTS AND REALIZED PRICES
SilverBow's total net production for the third quarter of 2022 averaged 299 MMcfe/d. Production mix for the third quarter consisted of 70% natural gas, 17% oil and 13% natural gas liquids (“NGLs”). Natural gas comprised 62% of total oil and gas sales for the third quarter, compared to 63% in the third quarter of 2021.
For the third quarter of 2022, lease operating expenses (“LOE”) were $0.65 per Mcfe, transportation and processing expenses (“T&P”) were $0.35 per Mcfe and production and ad valorem taxes were 5.2% of oil and gas sales. Total production expenses, which include LOE, T&P and production taxes, were $1.46 per Mcfe for the third quarter. Net general and administrative (“net G&A”) expenses for the third quarter of 2022 were $4.3 million, or $0.16 per Mcfe. After deducting $1.2 million of non-cash compensation expense, cash general and administrative (“cash G&A”) (a non-GAAP measure) expenses were $3.2 million for the third quarter of 2022, or $0.11 per Mcfe.
The Company continues to benefit from strong basis pricing in the Eagle Ford. Crude oil and natural gas realizations in the third quarter were 100% of WTI and 95% of Henry Hub, respectively, excluding hedging. SilverBow's average realized natural gas price for the third quarter of 2022, excluding hedging, was $7.81 per thousand cubic feet of natural gas (“Mcf”) compared to $4.14 per Mcf in the third quarter of 2021. The average realized crude oil selling price in the third quarter of 2022, excluding hedging, was $91.93 per barrel compared to $68.54 per barrel in the third quarter of 2021. The average realized NGL selling price in the third quarter, excluding hedging, was $33.34 per barrel (36% of WTI benchmark) compared to $30.92 per barrel (44% of WTI benchmark) in the third quarter of 2021. Please refer to the tables included with today's news release for production volumes and pricing information.
FINANCIAL RESULTS
SilverBow reported total oil and gas sales of $242.2 million for the third quarter of 2022. The Company reported net income of $142.5 million, which includes a net unrealized gain on the value of the SilverBow's derivative contracts and WTI contingency payouts of $89 million.
For the third quarter of 2022, the Company generated Adjusted EBITDA (a non-GAAP measure) of $114.7 million. For the twelve months ended September 30, 2022, SilverBow reported Adjusted EBITDA for Leverage Ratio (a non-GAAP measure) of $495.1 million, which, in accordance with the Leverage Ratio calculation in the Company's Credit Facility, includes contributions from acquired assets prior to their closing dates totaling $139.3 million.
Capital expenditures incurred during the third quarter of 2022 totaled $110.0 million on an accrual basis.
2022 GUIDANCE AND 2023 OUTLOOK
SilverBow is currently running its two rigs in Webb County, which will result in higher gas production and greater returns in 2023. Together, the near-term Webb County drilling and recent leasing activity totals approximately $30 million of incremental spend in 2022. The Company is increasing its full year 2022 capex by $15 million, or 5%, at the midpoint to a range of $320-$340 million. For the fourth quarter of 2022, SilverBow is guiding to estimated production of 315-329 MMcfe/d, with natural gas volumes comprising 218-230 MMcf/d or 70% of total production at the midpoint. For the full year 2022, the Company is guiding to a production range of 270-274 MMcfe/d, with natural gas volumes comprising 73% of total production at the midpoint. Incorporated in the fourth quarter guidance range is previously unscheduled plant maintenance on third party systems. It is anticipated that these maintenance projects will impact dry gas volumes out of Webb County during the quarter.
SilverBow maintains a high degree of flexibility in its drilling and completion schedule. The Company's 2023 capital plan is contingent upon meeting certain thresholds, including a re-investment rate below 75% and a leverage ratio between 0.5x-1.0x. For 2023, SilverBow anticipates running 2 to 2.5 rigs on average. The Company is increasing its production outlook from 380 MMcfe/d to 400-420 MMcfe/d, an 8% increase compared to the Company's prior outlook. The production increase is driven by a higher working interest and a greater gas mix from SilverBow capturing higher returns on its gas development in the near-term. Full year 2023 capital is expected to range between $450-$550 million, with the high end reflecting a third rig added in the second half of 2023.
Additional detail concerning the Company's fourth quarter and full year 2022 guidance can be found in the table included with today's new release and the Corporate Presentation in the Investor Relations section of the SilverBow's website.
HEDGING UPDATE
Hedging continues to be an important element of SilverBow's strategy to protect cash flow. The Company's active hedging program provides greater predictability of cash flows and is structured to preserve exposure to higher commodity prices while staying in compliance with the financial covenants under SilverBow's debt facilities.
As of October 28, 2022, SilverBow has 167 MMcf/d of natural gas production hedged, 8,418 Bbls/d of oil hedged and 3,750 Bbls/d of NGLs hedged for the remainder of 2022. For 2023, the Company has 179 MMcf/d of natural gas production hedged, 7,291 Bbls/d of oil hedged and 3,750 Bbls/d of NGLs hedged. The hedged amounts are inclusive of both swaps and collars.
Please see SilverBow's Corporate Presentation and Form 10-Q filing for the third quarter of 2022, which the Company expects to file on Thursday, November 3, 2022, for a detailed summary of its derivative contracts.
CAPITAL STRUCTURE AND LIQUIDITY
As of September 30, 2022, SilverBow had $1.9 million of cash and $480.0 million of outstanding borrowings under its Credit Facility. The Company's liquidity position was $296.9 million consisting of $1.9 million of cash and $295.0 million of availability under the Credit Facility. SilverBow's net debt as of September 30, 2022 was $628.1 million, calculated as total long-term debt of $630.0 million less $1.9 million of cash.
As of October 28, 2022, SilverBow had 22.3 million total common shares outstanding.
CONFERENCE CALL AND UPDATED INVESTOR PRESENTATION
SilverBow will host a conference call for investors on Thursday, November 3, 2022, at 9:00 a.m. Central Time (10:00 a.m. Eastern Time). Investors and participants can listen to the call by dialing 1-888-415-4465 (U.S.) or 1-646-960-0140 (International) and requesting SilverBow Resource's Third Quarter 2022 Earnings Conference Call or by visiting the Company's website. A simultaneous webcast of the call may be accessed over the internet by visiting SilverBow's website at www.sbow.com, clicking on “Investor Relations” and “Events and Presentations” and then clicking on the “Third Quarter 2022 Earnings Conference Call” link. The webcast will be archived for replay on the Company's website for 14 days. Additionally, an updated Corporate Presentation will be uploaded to the Investor Relations section of SilverBow's website before the conference call.
ABOUT SILVERBOW RESOURCES, INC.
SilverBow Resources, Inc. (NYSE: SBOW) is a Houston-based energy company actively engaged in the exploration, development, and production of oil and gas in the Eagle Ford and Austin Chalk in South Texas. With over 30 years of history operating in South Texas, the Company possesses a significant understanding of regional reservoirs which it leverages to assemble high quality drilling inventory while continuously enhancing its operations to maximize returns on capital invested. For more information, please visit www.sbow.com. Information on our website is not part of this release.
FORWARD-LOOKING STATEMENTS
This release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements represent management's expectations or beliefs concerning future events, and it is possible that the results described in this release will not be achieved. These forward-looking statements are based on current expectations and assumptions and are subject to a number of risks and uncertainties, many of which are beyond our control. All statements, other than statements of historical fact included in this press release, including those regarding our strategy, the benefits of the acquisitions, future operations, guidance and outlook, financial position, well expectations and drilling plans, estimated production levels, expected oil and natural gas pricing, estimated oil and natural gas reserves or the present value thereof, reserve increases, service costs, impacts of inflation, future free cash flow and expected leverage ratio, capital expenditures, budget, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this report, the words “will,” “could,” “believe,” “anticipate,” “intend,” “estimate,” “budgeted,” “guidance,” “expect,” “may,” “continue,” “predict,” “potential,” “plan,” “project” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Important factors that could cause actual results to differ materially from our expectations include, but are not limited to, the following risks and uncertainties: the severity and duration of world health events, including the COVID-19 pandemic, related economic repercussions, including disruptions in the oil and gas industry, supply chain disruptions, and operational challenges including remote work arrangements and protecting the health and well-being of our employees; further actions by the members of the Organization of the Petroleum Exporting Countries, Russia and other allied producing countries with respect to oil production levels and announcements of potential changes in such levels; risk related to recently completed acquisitions; volatility in natural gas, oil and NGL prices; future cash flows and their adequacy to maintain our ongoing operations; liquidity, including our ability to satisfy our short- or long-term liquidity needs; our borrowing capacity future covenant compliance; cash flow and liquidity; operating results; asset disposition efforts or the timing or outcome thereof; ongoing and prospective joint ventures, their structures and substance, and the likelihood of their finalization or the timing thereof; the amount, nature and timing of capital expenditures, including future development costs; timing, cost and amount of future production of oil and natural gas; availability of drilling and production equipment or availability of oil field labor; availability, cost and terms of capital; timing and successful drilling and completion of wells; availability and cost for transportation of oil and natural gas; costs of exploiting and developing our properties and conducting other operations; competition in the oil and natural gas industry; general economic and political conditions, including inflationary pressures, further increases in interest rates, a general economic slowdown or recession, political tensions and war (including future developments in the ongoing Russia-Ukraine conflict); opportunities to monetize assets; our ability to execute on strategic initiatives; effectiveness of our risk management activities, including hedging strategy; environmental liabilities; counterparty credit risk; actions by third parties, including customers, service providers and shareholders; governmental regulation and taxation of the oil and natural gas industry; developments in world oil and natural gas markets and in oil and natural gas-producing countries; uncertainty regarding our future operating results; and other risks and uncertainties discussed in the Company’s reports filed with the SEC, including its Annual Report on Form 10-K for the year ended December 31, 2021 (the “Annual Report”), and subsequent quarterly reports on Form 10-Q and current reports on Form 8-K.
All forward-looking statements speak only as of the date of this news release. You should not place undue reliance on these forward-looking statements. The Company’s capital budget, operating plan, service cost outlook and development plans are subject to change at any time. Although we believe that our plans, intentions and expectations reflected in or suggested by the forward-looking statements we make in this release are reasonable, we can give no assurance that these plans, intentions or expectations will be achieved. The risk factors and other factors noted herein and in the Company's SEC filings could cause its actual results to differ materially from those contained in any forward-looking statement. These cautionary statements qualify all forward-looking statements attributable to us or persons acting on our behalf.
All subsequent written and oral forward-looking statements attributable to us or to persons acting on our behalf are expressly qualified in their entirety by the foregoing. We undertake no obligation to publicly release the results of any revisions to any such forward-looking statements that may be made to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events, except as required by law.
(Footnotes)
1 Leverage ratio is defined as total long-term debt, before unamortized discounts, divided by Adjusted EBITDA for Leverage Ratio (a non-GAAP measure defined and reconciled in the tables included with today's news release) for the trailing twelve-month period.
2 Based on management's estimates of reserve volumes and values using an effective date and SEC prices as of September 30, 2022. Inclusive of acquired assets with closing date on or before September 30, 2022. Figures reported as unaudited.
(Financial Highlights to Follow)
Condensed Consolidated Balance Sheets (Unaudited) SilverBow Resources, Inc. and Subsidiary (in thousands, except share amounts) |
|||||||
|
September 30, 2022 |
|
December 31, 2021 |
||||
ASSETS |
|
|
|
||||
Current Assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
1,924 |
|
|
$ |
1,121 |
|
Accounts receivable, net |
|
102,691 |
|
|
|
49,777 |
|
Fair value of commodity derivatives |
|
33,205 |
|
|
|
2,806 |
|
Other current assets |
|
6,468 |
|
|
|
1,875 |
|
Total Current Assets |
|
144,288 |
|
|
|
55,579 |
|
Property and Equipment: |
|
|
|
||||
Property and equipment, full cost method, including $17,478 and $17,090, respectively, of unproved property costs not being amortized at the end of each period |
|
2,345,317 |
|
|
|
1,611,953 |
|
Less – Accumulated depreciation, depletion, amortization & impairment |
|
(959,139 |
) |
|
|
(869,985 |
) |
Property and Equipment, Net |
|
1,386,178 |
|
|
|
741,968 |
|
Right of use assets |
|
13,669 |
|
|
|
16,065 |
|
Fair value of long-term commodity derivatives |
|
27,410 |
|
|
|
201 |
|
Other long-term assets |
|
18,368 |
|
|
|
5,641 |
|
Total Assets |
$ |
1,589,913 |
|
|
$ |
819,454 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
Current Liabilities: |
|
|
|
||||
Accounts payable and accrued liabilities |
$ |
80,107 |
|
|
$ |
35,034 |
|
Fair value of commodity derivatives |
|
108,618 |
|
|
|
47,453 |
|
Accrued capital costs |
|
54,210 |
|
|
|
7,354 |
|
Accrued interest |
|
2,385 |
|
|
|
697 |
|
Current lease liability |
|
8,579 |
|
|
|
7,222 |
|
Undistributed oil and gas revenues |
|
32,318 |
|
|
|
23,577 |
|
Total Current Liabilities |
|
286,217 |
|
|
|
121,337 |
|
Long-term debt, net |
|
626,351 |
|
|
|
372,825 |
|
Non-current lease liability |
|
5,379 |
|
|
|
9,090 |
|
Deferred tax liabilities |
|
14,012 |
|
|
|
6,516 |
|
Asset retirement obligations |
|
8,255 |
|
|
|
5,526 |
|
Fair value of long-term commodity derivatives |
|
29,950 |
|
|
|
8,585 |
|
Other long-term liabilities |
|
2,764 |
|
|
|
3,043 |
|
Commitments and Contingencies |
|
|
|
||||
Stockholders' Equity: |
|
|
|
||||
Preferred stock, $0.01 par value, 10,000,000 shares authorized, none issued |
|
— |
|
|
|
— |
|
Common stock, $0.01 par value, 40,000,000 shares authorized, 22,663,135 and 16,822,845 shares issued, respectively, and 22,309,740 and 16,631,175 shares outstanding, respectively |
|
227 |
|
|
|
168 |
|
Additional paid-in capital |
|
574,885 |
|
|
|
413,017 |
|
Treasury stock, held at cost, 353,395 and 191,670 shares, respectively |
|
(7,534 |
) |
|
|
(2,984 |
) |
Retained earnings (Accumulated deficit) |
|
49,407 |
|
|
|
(117,669 |
) |
Total Stockholders’ Equity |
|
616,985 |
|
|
|
292,532 |
|
Total Liabilities and Stockholders’ Equity |
$ |
1,589,913 |
|
|
$ |
819,454 |
|
Jeff Magids
Director of Finance & Investor Relations
(281) 874-2700, (888) 991-SBOW
HOUSTON--(BUSINESS WIRE)--Encino Environmental Services, LLC (“Encino”), a leader in emissions performance testing, detection, quantification, and analytics for the Energy sector and other industries, today announced that the U.S. Patent and Trademark Office has approved Encino’s patent application and issued a new patent, further strengthening the company’s intellectual property position and value proposition.
The patent covers Encino’s proprietary technology for providing a visual Continuous Emissions Monitoring System (CEMS) on a mobile platform with an extendable mast that may be mounted to a vehicle or a trailer. Encino’s mobile CEMS capability is the backbone behind the Company’s EmVision™ service offering, which provides for rapid mobilization of accurate continuous emissions monitoring, including methane intensity, flare monitoring & efficiency and flame detection. Additionally, the extendable mast makes on-site deployment in the field fast and simple, without the time and expense of securing fixed camera units at a well site, pipeline location, or production facility.
Encino’s proprietary technology is applicable to remote locations where Energy production and storage, Landfills, and Agricultural operations are typically situated. Mobility also provides a significant cost savings to clients seeking high-quality, real-time visual analysis of their methane emissions profiles by making hyperspectral and multi-spectral imaging technology portable, so it can be mobilized economically to multiple locations.
“This patent demonstrates Encino’s commitment to helping the Energy sector produce cleaner energy using innovative technology,” said Scott McCurdy, Encino’s CEO. “Demand for high-quality, transparent methane emissions monitoring, detection, and analysis solutions is increasing rapidly. Clients using our proprietary mobile continuous monitoring units can dispatch high-definition continuous emissions monitoring cameras to sites quickly and easily, allowing them to use fewer units for meeting tactical compliance requirements and strategic ESG initiatives field-wide.
McCurdy continued, “We have deployed mobile units for nearly twenty clients over the past eighteen months, including upstream and midstream oil and gas operations, oilfield services and landfill operations. This patent validates the uniqueness and innovation of our product offering. We are investing aggressively to grow our fleet and meet accelerating demand from both new and existing clients.”
Encino’s CEMS program, combined with its emissions testing, leak detection and repair, satellite emissions monitoring and emissions reduction products make Encino one of the broadest providers of emissions solutions in the industry. When utilized together, these technologies help Encino clients leverage data from their compliance programs and continuous monitoring initiatives to develop accurate and actionable emissions profiles and a truer picture of their carbon intensity.
Williams, one of the nation’s largest midstream energy companies and an investor in Encino Environmental Services, has been successfully using the Encino technology in its field operations over the past 12 months. “The mobile CEMS systems have provided us with the highest quality visual emissions data, allowing us to quickly make decisions and take action that further reduces our emissions,” said Mark Gebbia, Williams Vice President, Environmental, Regulatory and Permitting and Encino board member. “The CEMS camera data combined with Encino engine testing and leak detection services gives us multiple sources of emissions data, ensuring a complete emissions profile that we can use in pursuit of our climate goals.”
The foundation of Encino’s analytics is trusted, accurate data having a verifiable audit trail, which is required for making tangible and meaningful operational improvements, reducing risk, capitalizing on certified gas markets and differentiating with investors for accessing capital on favorable terms.
About Encino Environmental Services
Formed in 2010 and headquartered in Houston, Texas, Encino Environmental Services, LLC is an emissions performance testing and monitoring firm that specializes in environmental consulting, combustion analysis, LDAR (leak detection and repair), CEMS (continuous emissions monitoring systems), Satellite methane emissions monitoring and advanced environmental data platforms for the measurement and minimization of emissions to support regulatory compliance and ESG strategies and objectives. The Company operates across the U.S. covering all major oil and gas basins and select international markets. Additional information can be found at www.encinoenviron.com.
Encino Environmental Services, LLC
Taylor Hennigan
VP Business Development & Marketing
This email address is being protected from spambots. You need JavaScript enabled to view it.
HOUSTON--(BUSINESS WIRE)--Flame Acquisition Corp. (“Flame”) (NYSE: FLME, FLME.WS), a special purpose acquisition entity focused on the energy industry in North America, today announced an agreement to enter into a business combination with Sable Offshore Corp. (“Sable”). Sable has separately agreed to acquire oil and gas assets as part of the merger. After giving effect to the business combination, the company will be named Sable Offshore Corp.
Additional Information and Where to Find It
This document relates to the proposed Business Combination between Flame and Sable. In connection with the proposed Business Combination, Flame will file with the SEC a proxy statement on Schedule 14A (the “Proxy Statement”). Flame will also file other documents regarding the proposed Business Combination with the SEC. The Proxy Statement will be sent or given to the Flame stockholders and will contain important information about the Business Combination and related matters. INVESTORS ARE URGED TO READ THE PROXY STATEMENT (INCLUDING ALL AMENDMENTS AND SUPPLEMENTS THERETO) AND OTHER RELEVANT DOCUMENTS FILED WITH THE SEC IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION WITH RESPECT TO THE Business Combination AND THE OTHER TRANSACTIONS CONTEMPLATED BY THE BUSINESS COMBINATION AGREEMENT. You may obtain a free copy of the Proxy Statement (if and when it becomes available) and other relevant documents filed by Flame with the SEC at the SEC’s website at www.sec.gov. You may also obtain Flame’s documents on its website at www.Flameacq.com.
Participants in Solicitation
Flame, Sable and certain of their respective directors, executive officers and employees may be deemed to be participants in the solicitation of proxies in connection with certain matters related to the Business Combination and may have direct or indirect interests in the Business Combination. Information about Flame’s directors and executive officers is set forth in Flame’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, filed with the SEC on April 4, 2022, and its other documents filed with the SEC. Other information regarding the participants in the proxy solicitations and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the Proxy Statement and other relevant materials to be filed with the SEC regarding the proposed transaction when they become available. Investors should read the Proxy Statement carefully when it becomes available before making any voting or investment decisions. Investors may obtain free copies of these documents using the sources indicated above.
Gregory Patrinely, CFO // Email: This email address is being protected from spambots. You need JavaScript enabled to view it. // Phone: 713-579-8111
Historic Partnership Supports Poland’s Energy Goals with Proven Reactor Technology
CRANBERRY TOWNSHIP, Pa.--(BUSINESS WIRE)--The Polish government announced today that it has selected Westinghouse Electric Company’s AP1000® nuclear reactor technology to advance the country’s clean and secure energy future.
Poland’s Council of Ministers formally approved a resolution selecting Westinghouse to be the technology supplier for the Polish government’s six to nine GWe nuclear program. This program will start with three reactors at the Lubiatowo-Kopalino site in northern Poland.
U.S. Ambassador to Poland Mark Brzezinski welcomed the announcement by the Government of Poland.
“I am grateful for the leadership that Prime Minister (Mateusz) Morawiecki showed by overseeing the selection of Westinghouse for this historic project. Today, Poland is investing in a clean and secure energy future for all of the Polish people,” said Ambassador Brzezinski.
“This is an historic day for Poland and for Westinghouse. We are honored to partner with the Polish government on the launch of a new era of energy security, one that will bring reliable, affordable carbon-free electricity and economic benefits to the people of Poland,” said Patrick Fragman, Westinghouse President and CEO. “This project will create thousands of jobs during construction and for many decades of operation of the plants.”
Westinghouse announced in September Memoranda of Understanding with 22 additional companies in Poland for cooperation on construction of AP1000 reactors in Poland and at other potential projects in Central Europe. Westinghouse has committed to establishing a major engineering center and is planning various additional industrial investments to support training and development of Poland’s nuclear power talents and workforce. Westinghouse contemplates engaging on a broad scale both the U.S. and European supply chains on this exceptional project, in order to build a fleet of AP1000 reactors in the region.
The AP1000 nuclear reactor is the only operating Generation III+ reactor with fully passive safety systems, modular construction design and has the smallest footprint per MWe on the market. In addition to two AP1000 units being completed at the Vogtle site in the United States, four AP1000 units are currently setting operational performance records in China with four additional units under construction. Westinghouse AP1000 technology also has been selected for two additional units in China, nine units in Ukraine, and is under consideration at multiple other sites in Central and Eastern Europe, the United Kingdom, and in the United States.
###
Westinghouse Electric Company is shaping the future of carbon-free energy by providing safe, innovative nuclear and other clean power technologies globally. Westinghouse supplied the world’s first commercial pressurized water reactor in 1957 and the company’s technology is the basis for nearly one-half of the world's operating nuclear plants. Over 135 years of innovation makes Westinghouse the preferred partner for advanced technologies covering the complete nuclear energy life cycle. For more information, visit www.westinghousenuclear.com and follow us on Facebook, LinkedIn and Twitter.
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Earnings Call to be held 7:30 am CT on Thursday, November 3, 2022
DALLAS--(BUSINESS WIRE)--Texas Pacific Land Corporation (NYSE: TPL) (the “Company” or "TPL") today announced its financial and operating results for the third quarter of 2022.
Third Quarter 2022 Highlights
Nine Months Ended September 30, 2022 Highlights
(1) Reconciliations of Non-GAAP measures are provided in the tables below.
“TPL continues to perform at a high level as each of our business segments benefit directly and indirectly from strong commodity prices and operator development activity in the Permian Basin,” said Tyler Glover, Chief Executive Officer of the Company. “In addition, we continue to pursue new and innovative ways to utilize and monetize our vast surface footprint. As an example, in September, TPL signed an agreement with Samsung Solar Energy 2, LLC to begin evaluating the siting of grid-connected batteries located on TPL surface. These potential battery projects could enhance grid reliability and encourage further renewables development. TPL is thrilled that Samsung Solar Energy 2, LLC is looking to develop these next generation projects on our surface, and we look forward to collaborating to bring these projects to fruition.”
Financial Results for the Third Quarter of 2022
The Company reported net income of $129.8 million for the third quarter of 2022, an increase of 54.9% compared to net income of $83.8 million for the third quarter of 2021.
Our total revenues increased $67.4 million for the third quarter of 2022 compared to the same period of 2021, largely driven by the $51.2 million increase in oil and gas royalty revenue and the $8.9 million combined increase in water sales and produced water royalties. Our share of production was approximately 23.4 thousand barrels of oil equivalent ("Boe") per day for the third quarter of 2022 compared to 19.5 thousand Boe per day for the same period of 2021. The average realized price was $63.42 per Boe for the third quarter of 2022, compared to $46.07 per Boe for the comparable period of 2021. Water sales increased $4.9 million for the third quarter of 2022 compared to the third quarter of 2021 principally due to a 10.3% increase in the number of barrels of sourced and treated water sold. Produced water royalties increased $4.0 million for the third quarter of 2022 compared to the same period of 2021, principally due to increased produced water volumes. Our revenue streams are directly impacted by development and operating decisions in the Permian Basin made by our customers and by commodity prices, among other factors.
Our total operating expenses of $29.1 million for the third quarter of 2022 increased $8.6 million compared to the same period of 2021. The increase in operating expenses during the third quarter of 2022 is principally related to increases in ad valorem taxes, share-based compensation expense, and transfer and treatment expenses related to the 24.9% increase in water sales revenue over the comparable period of 2021.
Financial Results for the Nine Months Ended September 30, 2022
The Company reported net income of $346.6 million for the nine months ended September 30, 2022, an increase of 81.5% compared to net income of $190.9 million for the nine months ended September 30, 2021.
Our total revenues increased $210.9 million for the nine months ended September 30, 2022 compared to the same period of 2021, largely driven by the $168.9 million increase in oil and gas royalty revenue and the $30.1 million combined increase in water sales and produced water royalties. Our share of production was approximately 21.3 thousand Boe per day for the nine months ended September 30, 2022 compared to 17.5 thousand Boe per day for the same period of 2021. The average realized price was $63.93 per Boe for the nine months ended September 30, 2022 compared to $41.01 per Boe for the comparable period of 2021. Our revenue streams are directly impacted by commodity prices and development and operating decisions made by our customers and vary as the pace of development and oil demand varies.
Our total operating expenses of $76.6 million for the nine months ended September 30, 2022 increased $9.4 million compared to the same period of 2021. Operating expenses for 2022 increased principally as a result of the Company recording a $6.9 million accrual for ad valorem taxes. Additionally, transfer and treatment expenses have increased as water sales revenue has increased 45.7% during 2022 compared to 2021. Partially offsetting these increases, salaries and related employee expenses decreased due to the absence of severance costs in 2022. Further, we have benefited from our ongoing investments towards electrifying our water sourcing infrastructure through the reduction of certain expenses, principally fuel and equipment rental.
Quarterly Dividend Declared
On November 1, 2022, the Board declared a quarterly cash dividend of $3.00 per share, payable on December 15, 2022 to stockholders of record at the close of business on December 8, 2022.
Stock Repurchase Program
On November 1, 2022, our board of directors approved a stock repurchase program to purchase up to an aggregate of $250 million of our outstanding common stock to be effective beginning January 1, 2023.
The Company intends to purchase stock under the repurchase program opportunistically with funds generated by cash from operations. This repurchase program may be suspended from time to time, modified, extended or discontinued by the board of directors at any time. Purchases under the stock repurchase program may be made through a combination of open market repurchases in compliance with Rule 10b-18 promulgated under the Securities Exchange Act of 1934, as amended, privately negotiated transactions, and/or other transactions at the Company’s discretion, including under a Rule 10b5-1 trading plan that may be implemented by the Company, and will be subject to market conditions, applicable legal requirements and other factors.
Conference Call and Webcast Information
The Company will hold a conference call on Thursday, November 3, 2022 at 7:30 a.m. Central Time to discuss third quarter results. A live webcast of the conference call will be available on the Investors section of the Company’s website at http://www.TexasPacific.com. To listen to the live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register and install any necessary audio software.
The conference call can also be accessed by dialing 1-877-407-4018 or 1-201-689-8471. The telephone replay can be accessed by dialing 1-844-512-2921 or 1-412-317-6671 and providing the conference ID# 13731406. The telephone replay will be available starting shortly after the call through November 17, 2022.
About Texas Pacific Land Corporation
Texas Pacific Land Corporation is one of the largest landowners in the State of Texas with approximately 880,000 acres of land in West Texas, with the majority of its ownership concentrated in the Permian Basin. The Company is not an oil and gas producer, but its surface and royalty ownership provide revenue opportunities throughout the life cycle of a well. These revenue opportunities include fixed fee payments for use of our land, revenue for sales of materials (caliche) used in the construction of infrastructure, providing sourced water and/or treated produced water, revenue from our oil and gas royalty interests, and revenues related to saltwater disposal on our land. The Company also generates revenue from pipeline, power line and utility easements, commercial leases and temporary permits related to a variety of land uses including midstream infrastructure projects and hydrocarbon processing facilities.
Visit TPL at http://www.TexasPacific.com.
Cautionary Statement Regarding Forward-Looking Statements
This news release may contain 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, that are based on TPL’s beliefs, as well as assumptions made by, and information currently available to, TPL, and therefore involve risks and uncertainties that are difficult to predict. Generally, future or conditional verbs such as “will,” “would,” “should,” “could,” or “may” and the words “believe,” “anticipate,” “continue,” “intend,” “expect” and similar expressions identify forward-looking statements. Forward-looking statements include, but are not limited to, references to strategies, plans, objectives, expectations, intentions, assumptions, future operations and prospects and other statements that are not historical facts. You should not place undue reliance on forward-looking statements. Although TPL believes that plans, intentions and expectations reflected in or suggested by any forward-looking statements made herein are reasonable, TPL may be unable to achieve such plans, intentions or expectations and actual results, and performance or achievements may vary materially and adversely from those envisaged in this news release due to a number of factors including, but not limited to: the potential future impact of COVID-19 on the global and U.S. economies as well as on TPL’s financial condition and business operations; the initiation or outcome of potential litigation; and any changes in general economic and/or industry specific conditions. These risks, as well as other risks associated with TPL are also more fully discussed in our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. You can access TPL’s filings with the SEC through the SEC website at http://www.sec.gov and TPL strongly encourages you to do so. Except as required by applicable law, TPL undertakes no obligation to update any forward-looking statements or other statements herein for revisions or changes after this communication is made.
FINANCIAL AND OPERATIONAL RESULTS (dollars in thousands) (unaudited)
|
||||||||||||
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
Our share of production volumes(1): |
|
|
|
|
|
|
|
|
||||
Oil (MBbls) |
|
|
928 |
|
|
810 |
|
|
2,538 |
|
|
2,139 |
Natural gas (MMcf) |
|
|
3,582 |
|
|
3,111 |
|
|
9,773 |
|
|
8,627 |
NGL (MBbls) |
|
|
626 |
|
|
469 |
|
|
1,660 |
|
|
1,194 |
Equivalents (MBoe) |
|
|
2,151 |
|
|
1,798 |
|
|
5,827 |
|
|
4,771 |
Equivalents per day (MBoe/d) |
|
|
23.4 |
|
|
19.5 |
|
|
21.3 |
|
|
17.5 |
|
|
|
|
|
|
|
|
|
||||
Oil and gas royalty revenue: |
|
|
|
|
|
|
|
|
||||
Oil royalties |
|
$ |
83,374 |
|
$ |
52,081 |
|
$ |
239,021 |
|
$ |
128,907 |
Natural gas royalties |
|
|
26,362 |
|
|
11,528 |
|
|
60,187 |
|
|
26,400 |
NGL royalties |
|
|
20,562 |
|
|
15,489 |
|
|
56,530 |
|
|
31,528 |
Total oil and gas royalties |
|
$ |
130,298 |
|
$ |
79,098 |
|
$ |
355,738 |
|
$ |
186,835 |
|
|
|
|
|
|
|
|
|
||||
Realized prices: |
|
|
|
|
|
|
|
|
||||
Oil ($/Bbl) |
|
$ |
94.03 |
|
$ |
67.32 |
|
$ |
98.62 |
|
$ |
63.12 |
Natural gas ($/Mcf) |
|
$ |
7.96 |
|
$ |
4.01 |
|
$ |
6.66 |
|
$ |
3.31 |
NGL ($/Bbl) |
|
$ |
35.51 |
|
$ |
35.69 |
|
$ |
36.81 |
|
$ |
28.54 |
Equivalents ($/Boe) |
|
$ |
63.42 |
|
$ |
46.07 |
|
$ |
63.93 |
|
$ |
41.01 |
(1) |
Term |
|
Definition |
|
Bbl |
|
One stock tank barrel of 42 U.S. gallons liquid volume used herein in reference to crude oil, condensate or NGLs. |
|
MBbls |
|
One thousand barrels of crude oil, condensate or NGLs. |
|
MBoe |
|
One thousand Boe. |
|
MBoe/d |
|
One thousand Boe per day. |
|
Mcf |
|
One thousand cubic feet of natural gas. |
|
MMcf |
|
One million cubic feet of natural gas. |
|
NGL |
|
Natural gas liquids. Hydrocarbons found in natural gas that may be extracted as liquefied petroleum gas and natural gasoline. |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except share and per share amounts) (unaudited)
|
||||||||||||
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
Revenues: |
|
|
|
|
|
|
|
|
||||
Oil and gas royalties |
|
$ |
130,298 |
|
$ |
79,098 |
|
$ |
355,738 |
|
$ |
186,835 |
Water sales |
|
|
24,426 |
|
|
19,554 |
|
|
65,518 |
|
|
44,983 |
Produced water royalties |
|
|
19,129 |
|
|
15,140 |
|
|
52,668 |
|
|
43,147 |
Easements and other surface-related income |
|
|
14,129 |
|
|
9,832 |
|
|
37,311 |
|
|
27,856 |
Land sales and other operating revenue |
|
|
3,129 |
|
|
69 |
|
|
3,481 |
|
|
959 |
Total revenues |
|
|
191,111 |
|
|
123,693 |
|
|
514,716 |
|
|
303,780 |
|
|
|
|
|
|
|
|
|
||||
Expenses: |
|
|
|
|
|
|
|
|
||||
Salaries and related employee expenses |
|
|
10,697 |
|
|
8,542 |
|
|
29,670 |
|
|
31,792 |
Water service-related expenses |
|
|
6,348 |
|
|
3,650 |
|
|
13,045 |
|
|
10,499 |
General and administrative expenses |
|
|
3,153 |
|
|
2,844 |
|
|
9,858 |
|
|
8,491 |
Legal and professional fees |
|
|
2,106 |
|
|
1,551 |
|
|
4,988 |
|
|
4,904 |
Ad valorem taxes |
|
|
2,835 |
|
|
— |
|
|
6,856 |
|
|
— |
Depreciation, depletion and amortization |
|
|
3,917 |
|
|
3,866 |
|
|
12,223 |
|
|
11,562 |
Total operating expenses |
|
|
29,056 |
|
|
20,453 |
|
|
76,640 |
|
|
67,248 |
|
|
|
|
|
|
|
|
|
||||
Operating income |
|
|
162,055 |
|
|
103,240 |
|
|
438,076 |
|
|
236,532 |
|
|
|
|
|
|
|
|
|
||||
Other income, net |
|
|
1,920 |
|
|
513 |
|
|
2,626 |
|
|
924 |
Income before income taxes |
|
|
163,975 |
|
|
103,753 |
|
|
440,702 |
|
|
237,456 |
Income tax expense |
|
|
34,138 |
|
|
19,916 |
|
|
94,071 |
|
|
46,521 |
Net income |
|
$ |
129,837 |
|
$ |
83,837 |
|
$ |
346,631 |
|
$ |
190,935 |
|
|
|
|
|
|
|
|
|
||||
Net income per share of common stock |
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
16.83 |
|
$ |
10.82 |
|
$ |
44.84 |
|
$ |
24.62 |
Diluted |
|
$ |
16.82 |
|
$ |
10.82 |
|
$ |
44.82 |
|
$ |
24.62 |
|
|
|
|
|
|
|
|
|
||||
Weighted average number of shares of common stock outstanding |
|
|
|
|
|
|
|
|
||||
Basic |
|
|
7,714,796 |
|
|
7,751,329 |
|
|
7,729,866 |
|
|
7,754,439 |
Diluted |
|
|
7,720,221 |
|
|
7,751,329 |
|
|
7,733,505 |
|
|
7,754,439 |
SEGMENT OPERATING RESULTS (in thousands) (unaudited)
|
||||||||||||
|
|
Three Months Ended September 30, |
||||||||||
|
|
2022 |
|
|
2021 |
|||||||
Revenues: |
|
|
|
|
|
|
|
|
||||
Land and resource management: |
|
|
|
|
|
|
|
|
||||
Oil and gas royalty revenue |
|
$ |
130,298 |
|
68 |
% |
|
$ |
79,098 |
|
64 |
% |
Easements and other surface-related income |
|
|
13,788 |
|
7 |
% |
|
|
7,625 |
|
6 |
% |
Land sales and other operating revenue |
|
|
3,129 |
|
2 |
% |
|
|
69 |
|
— |
% |
Total land and resource management revenue |
|
|
147,215 |
|
77 |
% |
|
|
86,792 |
|
70 |
% |
|
|
|
|
|
|
|
|
|
||||
Water services and operations: |
|
|
|
|
|
|
|
|
||||
Water sales |
|
|
24,426 |
|
13 |
% |
|
|
19,554 |
|
16 |
% |
Produced water royalties |
|
|
19,129 |
|
10 |
% |
|
|
15,140 |
|
12 |
% |
Easements and other surface-related income |
|
|
341 |
|
— |
% |
|
|
2,207 |
|
2 |
% |
Total water services and operations revenue |
|
|
43,896 |
|
23 |
% |
|
|
36,901 |
|
30 |
% |
Total consolidated revenues |
|
$ |
191,111 |
|
100 |
% |
|
$ |
123,693 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
||||
Net income: |
|
|
|
|
|
|
|
|
||||
Land and resource management |
|
$ |
108,188 |
|
83 |
% |
|
$ |
65,292 |
|
78 |
% |
Water services and operations |
|
|
21,649 |
|
17 |
% |
|
|
18,545 |
|
22 |
% |
Total consolidated net income |
|
$ |
129,837 |
|
100 |
% |
|
$ |
83,837 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
||||
|
|
Nine Months Ended September 30, |
||||||||||
|
|
2022 |
|
2021 |
||||||||
Revenues: |
|
|
|
|
|
|
|
|
||||
Land and resource management: |
|
|
|
|
|
|
|
|
||||
Oil and gas royalty revenue |
|
$ |
355,738 |
|
69 |
% |
|
$ |
186,835 |
|
62 |
% |
Easements and other surface-related income |
|
|
34,728 |
|
7 |
% |
|
|
24,029 |
|
8 |
% |
Land sales and other operating revenue |
|
|
3,481 |
|
1 |
% |
|
|
959 |
|
— |
% |
Total land and resource management revenue |
|
|
393,947 |
|
77 |
% |
|
|
211,823 |
|
70 |
% |
|
|
|
|
|
|
|
|
|
||||
Water services and operations: |
|
|
|
|
|
|
|
|
||||
Water sales |
|
|
65,518 |
|
13 |
% |
|
|
44,983 |
|
15 |
% |
Produced water royalties |
|
|
52,668 |
|
10 |
% |
|
|
43,147 |
|
14 |
% |
Easements and other surface-related income |
|
|
2,583 |
|
— |
% |
|
|
3,827 |
|
1 |
% |
Total water services and operations revenue |
|
|
120,769 |
|
23 |
% |
|
|
91,957 |
|
30 |
% |
Total consolidated revenues |
|
$ |
514,716 |
|
100 |
% |
|
$ |
303,780 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
||||
Net income: |
|
|
|
|
|
|
|
|
||||
Land and resource management |
|
$ |
285,418 |
|
82 |
% |
|
$ |
150,248 |
|
79 |
% |
Water services and operations |
|
|
61,213 |
|
18 |
% |
|
|
40,687 |
|
21 |
% |
Total consolidated net income |
|
$ |
346,631 |
|
100 |
% |
|
$ |
190,935 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
||||
NON-GAAP PERFORMANCE MEASURES AND DEFINITIONS
In addition to amounts presented in accordance with generally accepted accounting principles in the United States of America (“GAAP”), we also present certain supplemental non-GAAP measurements. These measurements are not to be considered more relevant or accurate than the measurements presented in accordance with GAAP. In compliance with the requirements of the SEC, our non-GAAP measurements are reconciled to net income, the most directly comparable GAAP performance measure. For all non-GAAP measurements, neither the SEC nor any other regulatory body has passed judgment on these non-GAAP measurements.
EBITDA and Adjusted EBITDA
EBITDA is a non-GAAP financial measurement of earnings before interest, taxes, depreciation, depletion and amortization. Its purpose is to highlight earnings without finance, taxes, and depreciation, depletion and amortization expense, and its use is limited to specialized analysis. We calculate Adjusted EBITDA as EBITDA excluding the impact of certain non-cash, non-recurring and/or unusual, non-operating items, including, but not limited to: employee share-based compensation, conversion costs related to our Corporate Reorganization, and severance costs. We have presented EBITDA and Adjusted EBITDA because we believe that both are useful supplements to net income in analyzing operating performance.
The following table presents a reconciliation of net income to EBITDA and Adjusted EBITDA for the three and nine months ended September 30, 2022 and 2021 (in thousands):
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
Net income |
|
$ |
129,837 |
|
$ |
83,837 |
|
$ |
346,631 |
|
$ |
190,935 |
Add: |
|
|
|
|
|
|
|
|
||||
Income tax expense |
|
|
34,138 |
|
|
19,916 |
|
|
94,071 |
|
|
46,521 |
Depreciation, depletion and amortization |
|
|
3,917 |
|
|
3,866 |
|
|
12,223 |
|
|
11,562 |
EBITDA |
|
|
167,892 |
|
|
107,619 |
|
|
452,925 |
|
|
249,018 |
Add: |
|
|
|
|
|
|
|
|
||||
Employee share-based compensation |
|
|
1,910 |
|
|
— |
|
|
4,989 |
|
|
— |
Conversion costs related to our corporate reorganization |
|
|
— |
|
|
— |
|
|
— |
|
|
2,026 |
Severance costs |
|
|
— |
|
|
— |
|
|
— |
|
|
6,680 |
Adjusted EBITDA |
|
$ |
169,802 |
|
$ |
107,619 |
|
$ |
457,914 |
|
$ |
257,724 |
Investor Relations
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With a pilot installation in Italy and phased release in select European countries, the Tigo Energy Intelligence (EI) Residential Solar Solution will be unveiled at the Key Energy conference in Italy.
MONTEVARCHI, Italy--(BUSINESS WIRE)--Tigo Energy, Inc., the solar industry’s leading Flex MLPE (Module Level Power Electronics) supplier, will unveil the Tigo EI Residential Solar Solution for the European market at the Key Energy conference in Rimini, Italy. Starting with rollouts in Czechia, Germany, and Italy, the new solar-plus-storage platform is designed to ensure faster and simpler design, installation, and service, while providing EU installers with flexibility and more efficient energy management. Solar installers and PV professionals are invited to attend the official unveiling of the EI Residential Solar Solution at Key Energy in booth (B7.163) on November 9th at 11:30 am.
The Tigo EI Residential Solar Solution for the European market consists of Tigo TS4 Flex MLPE products, a new line of single-phase and three-phase inverters, modular DC-coupled energy storage components, and the Tigo EI Link, which acts as the communications hub and central connection point for all grid, inverter, PV, and battery connections. Through module-level monitoring, energy data from the EI Residential Storage System is processed by Tigo Energy Intelligence software, allowing installers to monitor and manage their fleet of customer systems with a few mouse clicks. Tigo customers in the EU will also benefit from industry-leading warranties and a skilled, multilingual support team to ensure that installers are never on their own with Tigo products.
“The Tigo EI Residential system again confirms Tigo as a dynamic company that evolves with the market,” said Cinzia Bardiani, marketing manager at Coenergia. “Tigo products have always been reliable and given installers great flexibility; this all-in-one platform is particularly compelling because it makes communication between the components of the entire system seamless. I am also thrilled to have Tigo as the single point of contact–for the entire system–for everything from design and installation support to warranty matters.”
The Tuscany-based solar installation company, Cecconi snc, and Coenergia, a PV distributor with a fifteen-year presence in the Italian market, deployed the first EI Residential system in Italy. The system includes 15kW of solar generation and 12kWh of energy storage.
“To stay close to my customers for service and upgrades, I must have a dependable system that expedites operations and tracks performance at the module level, and Tigo delivers exactly that with the EI solar-plus-storage setup,” said Massimo Cecconi, technical manager and CEO at Cecconi snc. “Tigo’s stackable configuration and flexible handling made the installation of this system brilliantly simple. I particularly like the pre-cabled EI Link box because it centralizes all connections in a single place and a clear connection diagram on the safety lid. Tigo thinks of the powerful combination of the end customer and the installer.”
Key Energy attendees will have access to Tigo executives and technical experts, including the installer who completed the first EI Residential installation in Italy. Following the conference, several roadshow events around Italy during November and December will showcase the Tigo residential solar-plus-storage solution. Roadshow dates and locations will be announced at the conference.
“With the EI Residential Solar Solution, Tigo now offers the European market a complete home energy solution that delivers the unique added value for which our products are known, with the simplicity that empowers our installer partners,” said Mirko Bindi, senior vice president of sales EMEA and MD Europe at Tigo Energy. “I am particularly happy about working with the teams at Coenergia and Cecconi to deploy this first system in Europe. Both are outstanding partners who make valuable contributions to the entire solar value chain for Tigo in Europe, especially the end customers we all share.”
To learn more about Tigo EI Residential Solar Solution and the Tigo Flex MLPE product family, please visit Tigo at Key Energy (Quartiere Fieristico di Rimini, Italy, Pavilion B7, Booth 163) from November 8th to 11th, 2022. For access to product information and collateral that will be available at the show, visit the Tigo at Key Energy Resource Page. And for a more in-depth discussion, schedule an appointment with a Tigo representative ahead of time here.
About Coenergia
Coenergia is an important distribution company based in Italy, specialized in renewable energy products, including photovoltaic, storage systems, electric charging stations, solar systems (thermic-thermodynamic) and air conditioning. Since the beginning, the company has always granted to customers a wide range of products allowing them to choose the best solution according to any specific requirement.
About Tigo Energy
Tigo Energy, the worldwide leader in Flex MLPE (Module Level Power Electronics), designs innovative solar power conversion and storage products that provide customers more choice and flexibility. The Tigo TS4 platform increases solar production, decreases operating costs, and enhances safety. When combined with the Tigo Energy Intelligence (EI) platform, it delivers module, system, and fleet-level insights to maximize solar performance and minimize operating costs. The Tigo EI Residential Solar Solution, a flexible solar-plus-storage solution for home installations, rounds out the Company’s portfolio of solar energy technology. Tigo was founded in Silicon Valley in 2007 to accelerate the adoption of solar energy, and its global team supports customers whose systems reliably produce gigawatt hours of safe solar energy on seven continents. Find us online at www.tigoenergy.com.
Gilberto Lembo
EMEA Marketing Manager at Tigo Energy
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HOUSTON--(BUSINESS WIRE)--Today Western Midstream Partners, LP (NYSE: WES) (“WES” or the “Partnership”) announced third-quarter 2022 financial and operating results. Net income (loss) attributable to limited partners for the third quarter of 2022 totaled $259.5 million, or $0.67 per common unit (diluted), with third-quarter 2022 Adjusted EBITDA(1) totaling $524.8 million, third-quarter 2022 Cash flows provided by operating activities totaling $468.8 million, and third-quarter 2022 Free cash flow(1) totaling $330.4 million.
RECENT HIGHLIGHTS
On November 14, 2022, WES will pay its third-quarter 2022 per-unit distribution of $0.50, which is in line with the prior quarter’s distribution and is consistent with the Partnership’s previously announced annualized regular quarterly distribution (“Base Distribution”) target of $2.00 per unit. Third-quarter 2022 Free cash flow after distributions totaled $132.7 million. Third-quarter 2022 and year-to-date capital expenditures(3) totaled $171.5 million and $382.1 million, respectively.
Third-quarter 2022 total natural-gas throughput(5) averaged 4.3 Bcf/d, remaining flat relative to the prior quarter. Third-quarter 2022 total throughput for crude-oil and NGLs assets(5) averaged 715 MBbls/d, representing a 7-percent sequential-quarter increase. Third-quarter 2022 total throughput for produced-water assets(5) averaged 877 MBbls/d, representing a 2-percent sequential-quarter increase.
“Our well-positioned assets are a competitive advantage that continue to yield results with another record-breaking quarter of natural-gas and produced-water throughput in the Delaware Basin. We expect continued throughput growth in the Delaware Basin into next year as producer activity levels remain strong,” said Michael Ure, President and Chief Executive Officer.
Mr. Ure continued, “Despite volumetric records in the Delaware Basin, our third-quarter Adjusted EBITDA declined on a sequential-quarter basis primarily due to reduced excess natural-gas liquids volumes in combination with lower natural-gas liquids pricing, lower distributions from equity investments, and higher operation and maintenance expense. As expected, our operation and maintenance expense increased sequentially due to higher utility costs, driven by higher natural-gas pricing, and previously disclosed costs from field-level projects associated with our corporate transformation efforts.”
“Our recent M&A activity reflects our team’s focus on strategically pursuing and executing transactions that create substantial value for WES. We are pleased to announce the acquisition of the remaining 50-percent interest in our Ranch Westex joint venture, which adds an incremental 125 MMcf/d of operated natural-gas processing capacity to our West Texas complex. This acquisition is in line with our M&A strategy that focuses on adding processing capacity in our core operating basins, allocating capital efficiently, and generating strong returns for our unitholders. Furthermore, our recently executed agreement to divest our interest in our Cactus II equity investment asset will allow us to return additional capital to our unitholders through our increased unit repurchase program.”
“Additionally, we’re excited to further strengthen our relationship with one of the premier producers in the Delaware Basin by executing amendments to Occidental’s oil gathering and natural-gas processing agreements shortly after quarter end. These amendments increase Occidental’s firm capacities and minimum-volume commitments on our infrastructure and position both organizations for future success.”
UNIT BUYBACK PROGRAM
Previously, the Board authorized a buyback program of up to $1.0 billion of the Partnership’s common units through December 31, 2024 (the “Purchase Program”). On November 1, the Board authorized an increase in the Purchase Program to $1.250 billion.
The common units may be purchased from time to time in the open market at prevailing market prices or in privately negotiated transactions. The timing and amount of purchases under the Purchase Program will be determined based on ongoing assessments of capital needs, WES’s financial performance, the market price of the common units, and other factors, including organic growth and acquisition opportunities and general market conditions. The Purchase Program does not obligate the Partnership to purchase any specific dollar amount or number of units and may be suspended or discontinued at any time.
CONFERENCE CALL TOMORROW AT 1:00 P.M. CT
WES will host a conference call on Thursday, November 3, 2022, at 1:00 p.m. Central Time (2:00 p.m. Eastern Time) to discuss third-quarter 2022 results. To participate, individuals should dial 888-330-2354 (Domestic) or 240-789-2706 (International) fifteen minutes before the scheduled conference call time and enter participant access code 32054. To access the live audio webcast of the conference call, please visit the investor relations section of the Partnership’s website at www.westernmidstream.com. A replay of the conference call also will be available on the website following the call.
For additional details on WES’s financial and operational performance, please refer to the earnings slides and updated investor presentation available at www.westernmidstream.com.
ABOUT WESTERN MIDSTREAM
Western Midstream Partners, LP (“WES”) is a Delaware master limited partnership formed to acquire, own, develop, and operate midstream assets. With midstream assets located in Texas, New Mexico, Colorado, Utah, Wyoming, and Pennsylvania, WES is engaged in the business of gathering, compressing, treating, processing, and transporting natural gas; gathering, stabilizing, and transporting condensate, natural-gas liquids, and crude oil; and gathering and disposing of produced water for its customers. In its capacity as a natural-gas processor, WES also buys and sells natural gas, natural-gas liquids, and condensate on behalf of itself and as an agent for its customers under certain contracts.
For more information about Western Midstream Partners, LP, please visit www.westernmidstream.com.
This news release contains forward-looking statements. WES’s management believes that its expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove correct. A number of factors could cause actual results to differ materially from the projections, anticipated results, or other expectations expressed in this news release. These factors include our ability to meet financial guidance or distribution expectations; our ability to safely and efficiently operate WES’s assets; the supply of, demand for, and price of oil, natural gas, NGLs, and related products or services; our ability to meet projected in-service dates for capital-growth projects; construction costs or capital expenditures exceeding estimated or budgeted costs or expenditures; and the other factors described in the “Risk Factors” section of WES’s most-recent Form 10-K and Form 10-Q filed with the Securities and Exchange Commission and other public filings and press releases. WES undertakes no obligation to publicly update or revise any forward-looking statements.
______________________________________________________________ |
|
(1) |
Please see the definitions of the Partnership’s non-GAAP measures at the end of this release and reconciliation of GAAP to non-GAAP measures. |
(2) |
A reconciliation of the Adjusted EBITDA range to net cash provided by operating activities and net income (loss), and a reconciliation of the Free cash flow range to net cash provided by operating activities, is not provided because the items necessary to estimate such amounts are not reasonably estimable at this time. These items, net of tax, may include, but are not limited to, impairments of assets and other charges, divestiture costs, acquisition costs, or changes in accounting principles. All of these items could significantly impact such financial measures. At this time, WES is not able to estimate the aggregate impact, if any, of these items on future period reported earnings. Accordingly, WES is not able to provide a corresponding GAAP equivalent for the Adjusted EBITDA or Free cash flow ranges. |
(3) |
Accrual-based, includes equity investments, excludes capitalized interest, and excludes capital expenditures associated with the 25% third-party interest in Chipeta. |
(4) |
Subject to Board review and approval on a quarterly basis based on the needs of the business. |
(5) |
Represents total throughput attributable to WES, which excludes (i) the 2.0% Occidental subsidiary-owned limited partner interest in WES Operating and (ii) for natural-gas throughput, the 25% third-party interest in Chipeta, which collectively represent WES’s noncontrolling interests. |
Western Midstream Partners, LP
|
||||||||||||||||
|
||||||||||||||||
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
thousands except per-unit amounts |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Revenues and other |
|
|
|
|
|
|
|
|
||||||||
Service revenues – fee based |
|
$ |
666,555 |
|
|
$ |
650,482 |
|
|
$ |
1,954,105 |
|
|
$ |
1,841,742 |
|
Service revenues – product based |
|
|
91,356 |
|
|
|
28,812 |
|
|
|
202,721 |
|
|
|
88,267 |
|
Product sales |
|
|
79,430 |
|
|
|
84,298 |
|
|
|
314,755 |
|
|
|
227,359 |
|
Other |
|
|
227 |
|
|
|
248 |
|
|
|
703 |
|
|
|
577 |
|
Total revenues and other |
|
|
837,568 |
|
|
|
763,840 |
|
|
|
2,472,284 |
|
|
|
2,157,945 |
|
Equity income, net – related parties |
|
|
41,317 |
|
|
|
48,506 |
|
|
|
139,388 |
|
|
|
159,337 |
|
Operating expenses |
|
|
|
|
|
|
|
|
||||||||
Cost of product |
|
|
106,833 |
|
|
|
83,232 |
|
|
|
328,237 |
|
|
|
250,245 |
|
Operation and maintenance |
|
|
190,514 |
|
|
|
140,838 |
|
|
|
487,643 |
|
|
|
434,198 |
|
General and administrative |
|
|
48,185 |
|
|
|
50,409 |
|
|
|
144,635 |
|
|
|
139,973 |
|
Property and other taxes |
|
|
19,390 |
|
|
|
13,641 |
|
|
|
60,494 |
|
|
|
45,992 |
|
Depreciation and amortization |
|
|
156,837 |
|
|
|
139,002 |
|
|
|
430,455 |
|
|
|
407,404 |
|
Long-lived asset and other impairments |
|
|
4 |
|
|
|
1,594 |
|
|
|
94 |
|
|
|
29,198 |
|
Total operating expenses |
|
|
521,763 |
|
|
|
428,716 |
|
|
|
1,451,558 |
|
|
|
1,307,010 |
|
Gain (loss) on divestiture and other, net |
|
|
(104 |
) |
|
|
(364 |
) |
|
|
(884 |
) |
|
|
278 |
|
Operating income (loss) |
|
|
357,018 |
|
|
|
383,266 |
|
|
|
1,159,230 |
|
|
|
1,010,550 |
|
Interest expense |
|
|
(83,106 |
) |
|
|
(93,257 |
) |
|
|
(249,333 |
) |
|
|
(287,040 |
) |
Gain (loss) on early extinguishment of debt |
|
|
— |
|
|
|
(24,655 |
) |
|
|
91 |
|
|
|
(24,944 |
) |
Other income (expense), net |
|
|
56 |
|
|
|
110 |
|
|
|
117 |
|
|
|
(1,013 |
) |
Income (loss) before income taxes |
|
|
273,968 |
|
|
|
265,464 |
|
|
|
910,105 |
|
|
|
697,553 |
|
Income tax expense (benefit) |
|
|
387 |
|
|
|
1,826 |
|
|
|
3,683 |
|
|
|
4,403 |
|
Net income (loss) |
|
|
273,581 |
|
|
|
263,638 |
|
|
|
906,422 |
|
|
|
693,150 |
|
Net income (loss) attributable to noncontrolling interests |
|
|
7,836 |
|
|
|
7,913 |
|
|
|
25,643 |
|
|
|
20,375 |
|
Net income (loss) attributable to Western Midstream Partners, LP |
|
$ |
265,745 |
|
|
$ |
255,725 |
|
|
$ |
880,779 |
|
|
$ |
672,775 |
|
Limited partners’ interest in net income (loss): |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to Western Midstream Partners, LP |
|
$ |
265,745 |
|
|
$ |
255,725 |
|
|
$ |
880,779 |
|
|
$ |
672,775 |
|
General partner interest in net (income) loss |
|
|
(6,244 |
) |
|
|
(5,527 |
) |
|
|
(19,794 |
) |
|
|
(14,484 |
) |
Limited partners’ interest in net income (loss) |
|
$ |
259,501 |
|
|
$ |
250,198 |
|
|
$ |
860,985 |
|
|
$ |
658,291 |
|
Net income (loss) per common unit – basic |
|
$ |
0.67 |
|
|
$ |
0.61 |
|
|
$ |
2.16 |
|
|
$ |
1.60 |
|
Net income (loss) per common unit – diluted |
|
$ |
0.66 |
|
|
$ |
0.61 |
|
|
$ |
2.15 |
|
|
$ |
1.59 |
|
Weighted-average common units outstanding – basic |
|
|
388,906 |
|
|
|
411,909 |
|
|
|
398,343 |
|
|
|
412,690 |
|
Weighted-average common units outstanding – diluted |
|
|
390,318 |
|
|
|
412,714 |
|
|
|
399,545 |
|
|
|
413,150 |
|
Western Midstream Partners, LP
|
||||||||
thousands except number of units |
|
September 30, 2022 |
|
December 31, 2021 |
||||
Total current assets |
|
$ |
896,300 |
|
|
$ |
684,764 |
|
Net property, plant, and equipment |
|
|
8,539,683 |
|
|
|
8,512,907 |
|
Other assets |
|
|
2,036,599 |
|
|
|
2,075,408 |
|
Total assets |
|
$ |
11,472,582 |
|
|
$ |
11,273,079 |
|
Total current liabilities |
|
$ |
745,923 |
|
|
$ |
1,140,197 |
|
Long-term debt |
|
|
7,027,361 |
|
|
|
6,400,616 |
|
Asset retirement obligations |
|
|
310,500 |
|
|
|
298,275 |
|
Other liabilities |
|
|
383,112 |
|
|
|
338,231 |
|
Total liabilities |
|
|
8,466,896 |
|
|
|
8,177,319 |
|
Equity and partners’ capital |
|
|
|
|
||||
Common units (385,586,841 and 402,993,919 units issued and outstanding at September 30, 2022, and December 31, 2021, respectively) |
|
|
2,868,665 |
|
|
|
2,966,955 |
|
General partner units (9,060,641 units issued and outstanding at September 30, 2022, and December 31, 2021) |
|
|
(1,112 |
) |
|
|
(8,882 |
) |
Noncontrolling interests |
|
|
138,133 |
|
|
|
137,687 |
|
Total liabilities, equity, and partners’ capital |
|
$ |
11,472,582 |
|
|
$ |
11,273,079 |
|
Western Midstream Partners, LP
|
||||||||
|
|
Nine Months Ended September 30, |
||||||
thousands |
|
|
2022 |
|
|
|
2021 |
|
Cash flows from operating activities |
|
|
|
|
||||
Net income (loss) |
|
$ |
906,422 |
|
|
$ |
693,150 |
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities and changes in assets and liabilities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
430,455 |
|
|
|
407,404 |
|
Long-lived asset and other impairments |
|
|
94 |
|
|
|
29,198 |
|
(Gain) loss on divestiture and other, net |
|
|
884 |
|
|
|
(278 |
) |
(Gain) loss on early extinguishment of debt |
|
|
(91 |
) |
|
|
24,944 |
|
Change in other items, net |
|
|
(125,557 |
) |
|
|
(49,424 |
) |
Net cash provided by operating activities |
|
$ |
1,212,207 |
|
|
$ |
1,104,994 |
|
Cash flows from investing activities |
|
|
|
|
||||
Capital expenditures |
|
$ |
(341,505 |
) |
|
$ |
(219,757 |
) |
Acquisitions from third parties |
|
|
(41,018 |
) |
|
|
— |
|
Contributions to equity investments - related parties |
|
|
(8,899 |
) |
|
|
(3,683 |
) |
Distributions from equity investments in excess of cumulative earnings – related parties |
|
|
41,058 |
|
|
|
30,075 |
|
Proceeds from the sale of assets to third parties |
|
|
1,111 |
|
|
|
8,002 |
|
(Increase) decrease in materials and supplies inventory and other |
|
|
(6,999 |
) |
|
|
(1,924 |
) |
Net cash used in investing activities |
|
$ |
(356,252 |
) |
|
$ |
(187,287 |
) |
Cash flows from financing activities |
|
|
|
|
||||
Borrowings, net of debt issuance costs |
|
$ |
1,389,010 |
|
|
$ |
400,000 |
|
Repayments of debt |
|
|
(1,268,548 |
) |
|
|
(1,132,966 |
) |
Increase (decrease) in outstanding checks |
|
|
1,459 |
|
|
|
(11,757 |
) |
Distributions to Partnership unitholders |
|
|
(538,690 |
) |
|
|
(398,896 |
) |
Distributions to Chipeta noncontrolling interest owner |
|
|
(5,020 |
) |
|
|
(2,734 |
) |
Distributions to noncontrolling interest owner of WES Operating |
|
|
(20,177 |
) |
|
|
(9,934 |
) |
Net contributions from (distributions to) related parties |
|
|
1,161 |
|
|
|
6,673 |
|
Unit repurchases |
|
|
(447,075 |
) |
|
|
(104,366 |
) |
Other |
|
|
(10,981 |
) |
|
|
(8,787 |
) |
Net cash provided by (used in) financing activities |
|
$ |
(898,861 |
) |
|
$ |
(1,262,767 |
) |
Net increase (decrease) in cash and cash equivalents |
|
$ |
(42,906 |
) |
|
$ |
(345,060 |
) |
Cash and cash equivalents at beginning of period |
|
|
201,999 |
|
|
|
444,922 |
|
Cash and cash equivalents at end of period |
|
$ |
159,093 |
|
|
$ |
99,862 |
|
Western Midstream Partners, LP
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
WES defines Adjusted gross margin attributable to Western Midstream Partners, LP (“Adjusted gross margin”) as total revenues and other (less reimbursements for electricity-related expenses recorded as revenue), less cost of product, plus distributions from equity investments, and excluding the noncontrolling interest owners’ proportionate share of revenues and cost of product.
WES defines Adjusted EBITDA as net income (loss), plus (i) distributions from equity investments, (ii) non-cash equity-based compensation expense, (iii) interest expense, (iv) income tax expense, (v) depreciation and amortization, (vi) impairments, and (vii) other expense (including lower of cost or market inventory adjustments recorded in cost of product), less (i) gain (loss) on divestiture and other, net, (ii) gain (loss) on early extinguishment of debt, (iii) income from equity investments, (iv) interest income, (v) income tax benefit, (vi) other income, and (vii) the noncontrolling interest owners’ proportionate share of revenues and expenses.
WES defines Free cash flow as net cash provided by operating activities less total capital expenditures and contributions to equity investments, plus distributions from equity investments in excess of cumulative earnings. Management considers Free cash flow an appropriate metric for assessing capital discipline, cost efficiency, and balance-sheet strength. Although Free cash flow is the metric used to assess WES’s ability to make distributions to unitholders, this measure should not be viewed as indicative of the actual amount of cash that is available for distributions or planned for distributions for a given period. Instead, Free cash flow should be considered indicative of the amount of cash that is available for distributions, debt repayments, and other general partnership purposes.
Below are reconciliations of (i) gross margin (GAAP) to Adjusted gross margin (non-GAAP), (ii) net income (loss) (GAAP) and net cash provided by operating activities (GAAP) to Adjusted EBITDA (non-GAAP), and (iii) net cash provided by operating activities (GAAP) to Free cash flow (non-GAAP), as required under Regulation G of the Securities Exchange Act of 1934. Management believes that Adjusted gross margin, Adjusted EBITDA, and Free cash flow are widely accepted financial indicators of WES’s financial performance compared to other publicly traded partnerships and are useful in assessing WES’s ability to incur and service debt, fund capital expenditures, and make distributions. Adjusted gross margin, Adjusted EBITDA, and Free cash flow as defined by WES, may not be comparable to similarly titled measures used by other companies. Therefore, WES’s Adjusted gross margin, Adjusted EBITDA, and Free cash flow should be considered in conjunction with net income (loss) attributable to Western Midstream Partners, LP and other applicable performance measures, such as gross margin or cash flows provided by operating activities.
Western Midstream Partners, LP
|
||||||
Adjusted Gross Margin |
||||||
|
|
Three Months Ended |
||||
thousands |
|
September 30, 2022 |
|
June 30, 2022 |
||
Reconciliation of Gross margin to Adjusted gross margin |
||||||
Total revenues and other |
|
$ |
837,568 |
|
$ |
876,419 |
Less: |
|
|
|
|
||
Cost of product |
|
|
106,833 |
|
|
148,556 |
Depreciation and amortization |
|
|
156,837 |
|
|
139,036 |
Gross margin |
|
|
573,898 |
|
|
588,827 |
Add: |
|
|
|
|
||
Distributions from equity investments |
|
|
58,957 |
|
|
66,016 |
Depreciation and amortization |
|
|
156,837 |
|
|
139,036 |
Less: |
|
|
|
|
||
Reimbursed electricity-related charges recorded as revenues |
|
|
20,741 |
|
|
19,042 |
Adjusted gross margin attributable to noncontrolling interests (1) |
|
|
18,886 |
|
|
19,166 |
Adjusted gross margin |
|
$ |
750,065 |
|
$ |
755,671 |
Adjusted gross margin for natural-gas assets |
|
$ |
521,117 |
|
$ |
528,983 |
Adjusted gross margin for crude-oil and NGLs assets |
|
|
153,225 |
|
|
155,686 |
Adjusted gross margin for produced-water assets |
|
|
75,723 |
|
|
71,002 |
(1) |
For all periods presented, includes (i) the 25% third-party interest in Chipeta and (ii) the 2.0% Occidental subsidiary-owned limited partner interest in WES Operating, which collectively represent WES’s noncontrolling interests. |
Western Midstream Partners, LP
|
||||||||
Adjusted EBITDA |
||||||||
|
|
Three Months Ended |
||||||
thousands |
|
September 30, 2022 |
|
June 30, 2022 |
||||
Reconciliation of Net income (loss) to Adjusted EBITDA |
||||||||
Net income (loss) |
|
$ |
273,581 |
|
|
$ |
315,171 |
|
Add: |
|
|
|
|
||||
Distributions from equity investments |
|
|
58,957 |
|
|
|
66,016 |
|
Non-cash equity-based compensation expense |
|
|
6,464 |
|
|
|
7,038 |
|
Interest expense |
|
|
83,106 |
|
|
|
80,772 |
|
Income tax expense |
|
|
387 |
|
|
|
1,491 |
|
Depreciation and amortization |
|
|
156,837 |
|
|
|
139,036 |
|
Impairments |
|
|
4 |
|
|
|
90 |
|
Other expense |
|
|
165 |
|
|
|
181 |
|
Less: |
|
|
|
|
||||
Gain (loss) on divestiture and other, net |
|
|
(104 |
) |
|
|
(1,150 |
) |
Gain (loss) on early extinguishment of debt |
|
|
— |
|
|
|
91 |
|
Equity income, net – related parties |
|
|
41,317 |
|
|
|
48,464 |
|
Other income |
|
|
58 |
|
|
|
— |
|
Adjusted EBITDA attributable to noncontrolling interests (1) |
|
|
13,406 |
|
|
|
14,072 |
|
Adjusted EBITDA |
|
$ |
524,824 |
|
|
$ |
548,318 |
|
Reconciliation of Net cash provided by operating activities to Adjusted EBITDA |
||||||||
Net cash provided by operating activities |
|
$ |
468,768 |
|
|
$ |
466,981 |
|
Interest (income) expense, net |
|
|
83,106 |
|
|
|
80,772 |
|
Accretion and amortization of long-term obligations, net |
|
|
(1,773 |
) |
|
|
(1,804 |
) |
Current income tax expense (benefit) |
|
|
550 |
|
|
|
703 |
|
Other (income) expense, net |
|
|
(56 |
) |
|
|
45 |
|
Distributions from equity investments in excess of cumulative earnings – related parties |
|
|
15,651 |
|
|
|
15,482 |
|
Changes in assets and liabilities: |
|
|
|
|
||||
Accounts receivable, net |
|
|
(66,875 |
) |
|
|
114,696 |
|
Accounts and imbalance payables and accrued liabilities, net |
|
|
17,840 |
|
|
|
(97,201 |
) |
Other items, net |
|
|
21,019 |
|
|
|
(17,284 |
) |
Adjusted EBITDA attributable to noncontrolling interests (1) |
|
|
(13,406 |
) |
|
|
(14,072 |
) |
Adjusted EBITDA |
|
$ |
524,824 |
|
|
$ |
548,318 |
|
Cash flow information |
|
|
|
|
||||
Net cash provided by operating activities |
|
$ |
468,768 |
|
|
$ |
466,981 |
|
Net cash used in investing activities |
|
|
(185,305 |
) |
|
|
(99,330 |
) |
Net cash provided by (used in) financing activities |
|
|
(221,804 |
) |
|
|
(518,466 |
) |
(1) |
For all periods presented, includes (i) the 25% third-party interest in Chipeta and (ii) the 2.0% Occidental subsidiary-owned limited partner interest in WES Operating, which collectively represent WES’s noncontrolling interests. |
Western Midstream Partners, LP
|
||||||||
Free Cash Flow |
||||||||
|
|
Three Months Ended |
||||||
thousands |
|
September 30, 2022 |
|
June 30, 2022 |
||||
Reconciliation of Net cash provided by operating activities to Free cash flow |
||||||||
Net cash provided by operating activities |
|
$ |
468,768 |
|
|
$ |
466,981 |
|
Less: |
|
|
|
|
||||
Capital expenditures |
|
|
150,148 |
|
|
|
107,386 |
|
Contributions to equity investments – related parties |
|
|
3,859 |
|
|
|
2,970 |
|
Add: |
|
|
|
|
||||
Distributions from equity investments in excess of cumulative earnings – related parties |
|
|
15,651 |
|
|
|
15,482 |
|
Free cash flow |
|
$ |
330,412 |
|
|
$ |
372,107 |
|
Cash flow information |
|
|
|
|
||||
Net cash provided by operating activities |
|
$ |
468,768 |
|
|
$ |
466,981 |
|
Net cash used in investing activities |
|
|
(185,305 |
) |
|
|
(99,330 |
) |
Net cash provided by (used in) financing activities |
|
|
(221,804 |
) |
|
|
(518,466 |
) |
Daniel Jenkins
Director, Investor Relations
This email address is being protected from spambots. You need JavaScript enabled to view it.
832.636.1009
Shelby Keltner
Manager, Investor Relations
This email address is being protected from spambots. You need JavaScript enabled to view it.
832.636.1009
EDINBURGH, Scotland--(BUSINESS WIRE)--One of Japan’s biggest companies is teaming up with Scottish offshore wind developer, Flotation Energy.
Tokyo Electric Power Company (TEPCO) is Japan’s largest electricity utility; and one of the largest in the world. Its subsidiary, TEPCO Renewable Power, has a generating capacity of 9.9 GW of renewable energy in Japan. This is TEPCOs first major venture into offshore wind markets in the UK and overseas. Flotation Energy will become part of the TEPCO Group.
Flotation Energy is headquartered in Edinburgh, Scotland. The Flotation team is well known for pioneering floating offshore wind and energy transition projects. Its founders Allan MacAskill and Lord Nicol Stephen developed Kincardine, the world’s largest floating windfarm. The company is growing quickly, with the focus on delivering more than 12 GW of commercial scale fixed and floating offshore wind farms and has plans to expand into many more key markets. Flotation Energy is already a Joint Venture Partner in the UK Round 4 Morecambe Project; and White Cross 100 MW floating project in the Celtic Sea.
With TEPCO’s experience and its resources, Flotation Energy is in an even stronger position to help decarbonise countries around the globe.
Renewable energy is central to supporting the UK’s ambitions to lead the world in combatting climate change, reducing our reliance on fossil fuels and embracing a future where renewable energy powers our homes and businesses. This new venture will be at the heart of this energy transiton.
Lord Nicol Stephen, CEO & Co-founder of Flotation Energy, said:
“This is a very exciting development for Flotation Energy and recognises the strength and success of our world class team. We have pioneered the growth of floating wind across the globe and have a very significant pipeline of projects in the UK, Ireland, and Asia Pacific.
This new partnership between Scotland and Japan represents a major commitment by TEPCO. It will allow us to move forward quickly with our existing projects and to kick start new opportunities right around the world. Climate change is the biggest challenge facing our planet. A future of clean, green renewable energy has always been our goal.”
Masashi Nagasawa, TEPCO Renewable Power President said:
“We are very pleased and heartened to partner with Flotation Energy, which shares our mission to "deliver clean renewable energy and create a carbon neutral society" as we work together to further develop both companies.
“Flotation Energy’s experience and knowledge of the world's biggest floating offshore wind development and their global network will vastly accelerate the development of our offshore wind business both domestically and internationally.
“Through our collaboration, we will realise our management philosophy of, “Harnessing the Natural Resources to Energy, and further Society” on a global scale.”
ENDS
Notes to Editors:
Flotation Energy is based Edinburgh, Scotland, and has been a significant contributor to building a strong offshore wind industry in the UK and beyond. Flotation Energy has a growing project pipeline of offshore wind projects with more than 12 GW in the UK, Ireland, Taiwan, Japan and Australia; and plans to expand into many more key markets. The expertise of the Flotation Energy team lies in the project and engineering management of large infrastructure projects. Flotation Energy have developed their own projects but also recognise the benefits of collaboration and working in partnership with other developers to deliver proven, cost-effective solutions.
TEPCO Renewable Power (TEPCO RP) is a wholly owned subsidiary of Tokyo Electric Power Company Holdings, Incorporated ("TEPCO Holdings "), the largest power company in Japan. In April 2020, TEPCO RP took its first steps as a company dedicated solely to the renewable energy generation business, the operation of which it assumed from TEPCO Holdings. For many years, TEPCO RP has used a firm business model that covers everything from the planning and construction to the operation & maintenance of hydroelectric and wind power generation facilities. The total capacity of the company's hydroelectric, wind, and solar power facilities is approximately 9.9 giga-watts, and our technical prowess has enabled us to maintain the largest amount of facilities in Japan. In order to seize the significant business opportunities inherent in the global trend towards decarbonization and meet the growing need for CO2-free energy, we aim to significantly expand our renewable generation portfolio globally and contribute to the creation of a clean and sustainable, decarbonized society by harnessing earth's natural resources to the best of our ability in order to provide a stable supply of electricity at low cost.
ENDS
Please direct all media enquiries to:
Kirstine Wood
Communications Manager
Flotation Energy Ltd
Mobile: +44 (0) 7775 697 702
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