SCHAFFHAUSEN, Switzerland--(BUSINESS WIRE)--Garmin Ltd. (Nasdaq: GRMN) today announced results for the third quarter ended September 26.

Highlights for third quarter 2020 include:

• Total revenue of over $1.1 billion, a 19% year-over-year increase, led by robust growth in marine, fitness and outdoor
• Gross margin and operating margin were 60.2% and 28.6%, respectively
• Operating income of $317 million, increasing 21% over the prior year quarter
• GAAP diluted EPS was $1.63 and pro forma diluted EPS⁽¹⁾ was $1.58, increasing 24% over the prior year quarter
• Named Manufacturer of the Year by the National Marine Electronics Association for the sixth consecutive year
• Since its launch in 2011, Garmin inReach® has provided remote communication and rescue facilitation in over 5,000 SOS incidents, demonstrating the crucial importance of satellite based two-way messaging wherever our customers need assistance
• Began production shipments of the BMW MGU 2020 computing module, expanding our role as a tier-one supplier for BMW automobiles
• Launched the Garmin Catalyst^™, an industry-first coaching tool to optimize motorsports driving performance
• Garmin Autoland has achieved Federal Aviation Administration (FAA) certification in a total of three aircraft to-date with the latest being the Cirrus Vision Jet, the first jet aircraft to be certified with this game-changing safety technology

Executive Overview from Cliff Pemble, President and Chief Executive Officer:

“Demand for active lifestyle products fueled strong revenue growth resulting in record revenue and profits for the quarter,” said Cliff Pemble, President and CEO of Garmin. “Interest in our products remains high as we move into the important holiday selling season, and we are prepared with a strong lineup of products that offer the innovation and uniqueness that consumers want.”

Marine:

Revenue from the marine segment grew 54% in the third quarter across multiple categories led by chartplotters. Gross margin and operating margin were 61% and 31%, respectively, resulting in 152% operating income growth. For the sixth consecutive year, Garmin was recognized as the Manufacturer of the Year by the National Marine Electronics Association (NMEA) and was also awarded four Product of Excellence awards. We launched the new OnDeck^™ system, Garmin’s first remote connectivity solution for boaters to track, monitor, and remotely control switches on their vessel from virtually anywhere. We also refreshed our Fantom^™ solid-state marine radar offering industry leading power in the solid-state RADAR market.

Fitness:

Revenue from the fitness segment grew 35% in the third quarter driven by strong demand for our advanced wearables and cycling products. Gross margin and operating margin were 54% and 27%, respectively, resulting in 75% operating income growth. We launched the new Forerunner® 745, adding daily suggested workouts helping competitors reach their goals, and the Garmin Clipboard^™ app that offers an integrated solution for coaches to manage team training and performance. We also launched the Venu® Sq, an entry-level smart watch with GPS capability that combines daily style with industry-leading health monitoring.

Outdoor:

Revenue from the outdoor segment grew 30% in the third quarter across all categories led by strong demand for our adventure watches. Gross margin and operating margin were 67% and 44%, respectively, resulting in 40% operating income growth. We recently refreshed the popular Montana® series, combining the flexibility of on or off-road navigation with global messaging and SOS alerts via inReach® satellite technology.

Auto:

Revenue from the auto segment declined 6% during the third quarter as declines in personal navigation devices were partially offset by growth in specialty categories and new OEM programs. Gross and operating margins were 45% and 3%, respectively. We launched Garmin Catalyst, a new product category and an industry-first real-time coaching tool to help drivers achieve their full potential on the track. We began production shipments of the BMW MGU 2020 computing module expanding our role as a tier-one supplier for BMW automobiles. In addition, we began shipments of a complete infotainment solution for the Daimler Vito vehicle.

Aviation:

Revenue from the aviation segment declined 19% in the third quarter due to fewer shipments to OEM customers and reduced contributions from ADS-B products. Gross margin and operating margin were 71% and 19%, respectively. During the quarter, Autoland achieved FAA certification on the Cirrus Vision Jet, becoming the first jet aircraft to incorporate Autoland technology. This latest certification brings the Autoland equipped aircraft to three models including the previously certified Piper M600 and Daher TBM 940.

Additional Financial Information:

Total operating expenses in the third quarter were $351 million, a 15% increase over the prior year. Research and development increased by 18%, primarily due to engineering personnel costs. Selling, general and administrative expenses increased 14%, driven primarily by information technology costs and personnel related expenses. Advertising increased 4%, driven primarily by higher spend in the outdoor segment.

The effective tax rate in the third quarter of 2020 was 6.9% compared to 11.6% in the prior year quarter. The decrease in the effective tax rate is primarily due to the migration of intellectual property ownership from Switzerland to the United States.

In the third quarter of 2020, we generated approximately $236 million of free cash flow⁽¹⁾, and paid a quarterly dividend of approximately $117 million. We ended the quarter with cash and marketable securities of approximately $2.7 billion.

^{(1) See attached Non-GAAP Financial Information for discussion and reconciliation of non-GAAP financial measures, including free cash flow.}

2020 Guidance ⁽²⁾:

We expect full year 2020 revenue of approximately $4.0 billion with growth in the marine, fitness, and outdoor segments partially offset by declines in the auto and aviation segments. We expect our full year pro forma EPS to be approximately $4.70 based upon gross margin of approximately 59.0%, operating margin of approximately 24.0% and a full year pro forma effective tax rate of approximately 10.0%.

^{(2) See attached discussion on Forward-looking Financial Measures}

Webcast Information/Forward-Looking Statements:

The information for Garmin Ltd.’s earnings call is as follows:

An archive of the live webcast will be available until October 28, 2021 on the Garmin website at www.garmin.com. To access the replay, click on the Investors link and click over to the Events Calendar page.

This release includes projections and other forward-looking statements regarding Garmin Ltd. and its business that are commonly identified by words such as “anticipates,” “would,” “may,” “expects,” “estimates,” “plans,” “intends,” “projects,” and other words or phrases with similar meanings. Any statements regarding the Company’s expected fiscal 2020 GAAP and pro forma estimated earnings, EPS, and effective tax rate, and the Company’s expected segment revenue growth rates, consolidated revenue, gross margins, operating margins, potential future acquisitions, currency movements, expenses, pricing, new products to be introduced, statements relating to possible future dividends, statements related to the ongoing impact of the COVID-19 pandemic, and the Company’s plans and objectives are forward-looking statements. The forward-looking events and circumstances discussed in this release may not occur and actual results could differ materially as a result of risk factors and uncertainties affecting Garmin, including, but not limited to, the risk factors that are described in both the Annual Report on Form 10-K for the year ended December 28, 2019 and the Quarterly Report on Form 10-Q for the quarter ended September 26, 2020 filed by Garmin with the Securities and Exchange Commission (Commission file number 0-31983). A copy of Garmin’s 2019 Form 10-K and the Q3 2020 Form 10-Q can be downloaded from https://www.garmin.com/en-US/investors/sec/. All information provided in this release and in the attachments is as of October 28, 2020. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to us on the date hereof. We undertake no duty to update this information unless required by law.

This release and the attachments contain non-GAAP financial measures. A reconciliation to the nearest GAAP measure and a discussion of the Company's use of these measures are included in the attachments.

Garmin, the Garmin logo and the Garmin delta, Forerunner, Venu, inReach and Montana are trademarks of Garmin Ltd. or its subsidiaries and are registered in one or more countries, including the U.S. Garmin Catalyst, Fantom, Garmin OnDeck, and Panoptix, are trademarks of Garmin Ltd. or its subsidiaries. All other brands, product names, company names, trademarks and service marks are the properties of their respective owners. All rights reserved

Non-GAAP Financial Information

To supplement our financial results presented in accordance with GAAP, this release includes the following measures defined by the Securities and Exchange Commission as non-GAAP financial measures: pro forma net income (earnings) per share, pro forma effective tax rate and free cash flow. These non-GAAP measures are not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may be different from non-GAAP measures used by other companies, limiting the usefulness of the measures for comparison with other companies. Management believes providing investors with an operating view consistent with how it manages the Company provides enhanced transparency into the operating results of the Company, as described in more detail by category below.

The tables below provide reconciliations between the GAAP and non-GAAP measures.

Pro forma effective tax rate

The Company’s income tax expense is periodically impacted by discrete tax items that are not reflective of income tax expense incurred as a result of current period earnings. Therefore, management believes disclosure of the effective tax rate and income tax provision before the effect of certain discrete tax items are important measures to permit investors' consistent comparison between periods. In the first 39 weeks of 2019, there were no such discrete tax items identified.

The net release of other uncertain tax position reserves, amounting to approximately $22.9 million and $23.3 million in the 39 weeks ended September 26, 2020 and September 28, 2019, respectively, have not been identified as pro forma adjustments as such items tend to be more recurring in nature.

Pro forma net income (earnings) per share

Management believes that net income (earnings) per share before the impact of foreign currency gains or losses and certain discrete income tax items, as discussed above, is an important measure in order to permit a consistent comparison of the Company’s performance between periods.

Free cash flow

Management believes that free cash flow is an important financial measure because it represents the amount of cash provided by operations that is available for investing and defines it as operating cash flows less capital expenditures for property and equipment.

Investor Relations Contact:
Teri Seck
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Media Relations Contact:
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BILBAO, Spain & NEW YORK--(BUSINESS WIRE)--Accenture (NYSE: ACN) is helping Siemens Gamesa, a global leader in renewable energy, develop and implement a cloud-based state-of-the-art human resources (HR) solution to streamline its HR operations, reduce operating costs and improve the employee experience.

Created from the 2017 merger of Siemens Wind and Gamesa, Siemens Gamesa is one of the world’s largest wind-turbine manufacturers and a leading provider of related services.

As part of its work, Accenture is consolidating Siemens Gamesa’s multiple HR functions and capabilities to create a single integrated HR platform that spans the full employee lifecycle, from recruiting and onboarding to workforce administration, compensation and benefits, pre-payroll activities and performance management.

The solution will integrate a variety of technology tools, including Avature for candidate relationship management and Harqen, a recruiting tool for facilitating video interviews. Accenture will operate and maintain the new platform as part of a multi-year agreement.

“We are transforming, standardizing and digitizing our HR processes while consolidating them into a single, unified global platform,” said Javier Fernandez-Combarro, Siemens Gamesa’s human resources director. “The program will help us drive consistency and efficiency in our HR operations — providing a better employee experience and increased service levels.”

Eric Schaeffer, a senior managing director at Accenture who leads its Industrial practice globally, said, “Siemens Gamesa understands the value that high-quality streamlined HR services can provide to its workforce and its bottom line.”

Patrick Vollmer, a managing director at Accenture who leads its Industrial Equipment practice in Austria, Switzerland, Germany and Russia and serves as global client account lead for Siemens Gamesa, added, “We are excited to work with Siemens Gamesa on this critical project to transform their HR capabilities and services, which are helping them become more efficient and differentiated in terms of their recruitment efforts.”

Accenture’s Industrial Equipment practice — fuelled by the company’s global industrial footprint, ecosystem and cross functional expertise — helps clients re-tool, re-purpose and re-invent themselves in the ever-changing business environment so that they are future-ready and prepared for the Industrial Renaissance. To learn more, visit https://www.accenture.com/us-en/industries/industrial-equipment-index.

About Accenture

Accenture is a global professional services company with leading capabilities in digital, cloud and security. Combining unmatched experience and specialized skills across more than 40 industries, we offer Strategy and Consulting, Interactive, Technology and Operations services—all powered by the world’s largest network of Advanced Technology and Intelligent Operations centers. Our 506,000 people deliver on the promise of technology and human ingenuity every day, serving clients in more than 120 countries. We embrace the power of change to create value and shared success for our clients, people, shareholders, partners and communities. Visit us at www.accenture.com.

Copyright© 2020 Accenture. All rights reserved. Accenture and its logo are trademarks of Accenture.

Youssef Zauaghi
Accenture
+49 175 5766458
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DUBLIN--(BUSINESS WIRE)--The "The Angolan Petroleum Industry 2020" report has been added to ResearchAndMarkets.com's offering.

This report focuses on the petroleum sector in Angola and includes comprehensive information on the country, its upstream and downstream oil sectors, developments and corporate actions and factors that influence the sector.

The Petroleum Sector in Angola:

Angola's oil sector accounted for 29.4% of the country's GDP in the fourth quarter of 2019 and it employs only about 1% of the country's workforce. While oil remains Angola's key export, oil production has been in decline since the oil price slump started in 2014. Since March 2020, when the country was hit hard by the coronavirus pandemic, the outlook for Africa's second largest oil producer has worsened. Despite being a leading oil producer, Angola imports refined oil for its own energy needs. The Angolan government has plans to construct several national refineries to increase its refinery capacity.

Government Plans:

Before the Angolan government announced emergency measures to tackle coronavirus, the Angolan National Petroleum and Gas Agency had revealed plans to auction 50 new oil and gas blocks between 2019 and 2025, and the first 10 were auctioned in 2019.

The government has liberalised regulations in the downstream sector and aims to increase refining and land-based storage capacity, encourage the construction of new gas stations and review and possibly liberalise the regulatory regime in logistics and derivatives distribution. The government's plan to sell state-owned Sonangol's assets, including equity stakes in various private entities, might enable new players to enter the market more easily.

There are profiles of nine companies including the four multinational operators that dominate the oil exploration and production market, Total, Chevron, ExxonMobil and BP. Other profiles include Sonangol, and smaller players such as Pumagol and Norwegian oil company Equinor, which is involved in the country through partnerships with other operators, including Sonangol.

Key Topics Covered:

1. Introduction

2. Country Information

3. Description of the Industry

3.1. Geographic Position

4. Size of the Industry

5. State of the Industry

5.1. Local

5.1.1. Regulations

5.1.2. Enterprise Development and Social Economic Development

5.2. Continental

5.3. International

6. Influencing Factors

6.1. Government Support

6.2. Economic Environment

6.3. Technology, Research and Development (R&D) and Innovation

6.4. Labour

6.5. Social Projects

6.6. Environmental Impact

6.7. Marketing

7. Competition

7.1. Barriers to Entry

8. SWOT Analysis

9. Outlook

10. Industry Associations

11. References

Summary of Notable Players

Company Profiles

• Bp plc
• Chevron Corporation
• Eni Spa
• Equinor Asa
• Exxon Mobil Corporation
• Galp Energia Sgps S.A.
• Pumangol Lda
• Sociedade Nacional De Combustiveis De Angola E.P.
• Total E&P Angola

For more information about this report visit https://www.researchandmarkets.com/r/4eh3i4

ResearchAndMarkets.com
Laura Wood, Senior Press Manager
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For E.S.T Office Hours Call 1-917-300-0470
For U.S./CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900

DUBLIN--(BUSINESS WIRE)--The "Global LPG Market Analysis Plant Capacity, Production, Operating Efficiency, Demand & Supply, End User Industries, Distribution Channel, Regional Demand, 2015-2030" report has been added to ResearchAndMarkets.com's offering.

Global LPG demand stood at 280 million tonnes in 2019 and is anticipated to grow at around CAGR 7.15% during the forecast period

LPG is versatile fuel used across plethora of applications. Due to its high calorific value, LPG is the most commonly used fuel across the residential households for heating and cooking purposes. However, there are also other non-residential uses, such as transportation, commercial and industrial heating, and other non-fuel applications such as petrochemicals production. Due to its ease of transport and affordability, Asia and Middle East LPG hold the largest market potential for LPG adoption across several industries.

Under this subscription you would be able to access global LPG market demand and supply analysis on a cloud-based platform for one year. The data is updated on near real time basis to add any new movement in the industry including but not limited to new plant announcement, plant shutdowns, temporary disruptions in demand or supply, news and deals and much more specific to LPG.

Deliverables

• Production Capacity By Company: Production Capacity at global level along with individual capacity of leading players
• Production By Company: Actual production done by different companies
• Operating Efficiency By Company: Operating Efficiency at which different companies are operating their plants
• Demand By End Use: Demand/Sale of LPG in different end user industries
• Demand By Sales Channel: Demand/Sale of LPG by different sales channels
• Demand By Region: Demand/Sale of LPG in different regions like North America, South America, Europe, Asia, Middle East & Africa
• Demand & Supply Gap: Demand & Supply Gap at global level
• Market Share of Leading Players: Revenue shares of leading players
• News & Deals: Historical & Current News & Deals in LPG market

Years Considered for Analysis:

• Historical Years: 2015 - 2018
• Base Year: 2019
• Estimated Year: 2020
• Forecast Period: 2021 - 2030

For more information about this report visit https://www.researchandmarkets.com/r/b1fb0k

ResearchAndMarkets.com
Laura Wood, Senior Press Manager
This email address is being protected from spambots. You need JavaScript enabled to view it.
For E.S.T Office Hours Call 1-917-300-0470
For U.S./CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900

Key Developments:

• Increased the estimate of gross discovered recoverable resources to approximately 9 billion barrels of oil equivalent (boe) for the Stabroek Block (Hess – 30%), offshore Guyana; announced oil discoveries at the Yellowtail-2 and Redtail-1 wells in September, bringing total discoveries on the Block to 18
• Sanctioned development of Payara, the third oil development on the Stabroek Block, which will have the capacity to produce up to 220,000 gross barrels of oil per day (bopd); first oil is expected in 2024
• Agreed to sell the Corporation's 28% working interest in the Shenzi Field in the deepwater Gulf of Mexico for total consideration of $505 million, with an effective date of July 1, 2020; the sale is expected to close prior to year-end

Third Quarter Financial and Operational Highlights:

• Net loss was $243 million, or $0.80 per common share, compared with a net loss of $212 million, or $0.70 per common share in the third quarter of 2019
• Adjusted net loss¹ was $216 million, or $0.71 per common share, compared with an adjusted net loss of $105 million, or $0.35 per common share in the prior-year quarter
• Oil and gas net production, excluding Libya, averaged 321,000 barrels of oil equivalent per day (boepd), up from 290,000 boepd in the third quarter of 2019; Bakken net production was 198,000 boepd, up 21% from 163,000 boepd in the prior-year quarter
• Crude oil put option contracts are in place for more than 80% of forecast net oil production for the remainder of 2020 with a fair value of approximately $205 million at September 30, 2020; realized settlements on crude oil put option contracts during the first nine months of 2020 were approximately $700 million
• E&P capital and exploratory expenditures were $331 million, compared with $661 million in the prior-year quarter
• Cash and cash equivalents, excluding Midstream, were $1.28 billion at September 30, 2020

2020 Updated Full Year Guidance:

• Net production, excluding Libya, is expected to be approximately 325,000 boepd, down from previous guidance of approximately 330,000 boepd primarily due to hurricane-related downtime in the Gulf of Mexico
• Bakken net production is expected to be approximately 190,000 boepd, up from the previous guidance of approximately 185,000 boepd due to strong year to date performance
• E&P capital and exploratory expenditures are projected to be approximately $1.8 billion, down from previous guidance of approximately $1.9 billion

1. “Adjusted net income (loss)” is a non-GAAP financial measure. The definition of this non-GAAP measure and a reconciliation to its nearest GAAP equivalent measure appears on pages 7 to 9.

NEW YORK--(BUSINESS WIRE)--Hess Corporation (NYSE: HES) today reported a net loss of $243 million, or $0.80 per common share, in the third quarter of 2020, compared with a net loss of $212 million, or $0.70 per common share, in the third quarter of 2019. On an adjusted basis, the Corporation reported a net loss of $216 million, or $0.71 per common share, in the third quarter of 2020, compared with an adjusted net loss of $105 million, or $0.35 per common share, in the prior-year quarter. The decrease in adjusted after-tax results compared with the prior-year period primarily reflects lower realized selling prices and higher exploration expenses.

     “We continue to execute our strategy and achieve strong operational performance while prioritizing the preservation of cash, capability and the long term value of our assets during this low price environment,” CEO John Hess said. “Our differentiated portfolio of assets, including multiple phases of low cost Guyana oil developments, positions us to deliver industry leading cash flow growth and drive our company’s breakeven price to under $40 per barrel Brent by mid decade.”

      After-tax income (loss) by major operating activity was as follows:

Exploration and Production:

      E&P net loss was $182 million in the third quarter of 2020, compared with a net loss of $60 million in the third quarter of 2019. On an adjusted basis, E&P's third quarter 2020 net loss was $156 million, compared with an adjusted net loss of $41 million in the prior-year quarter. The Corporation’s average realized crude oil selling price, excluding the effect of hedging, was $36.17 per barrel in the third quarter of 2020, compared with $55.91 per barrel in the prior-year quarter, reflecting a decrease in benchmark oil prices and widening of crude differentials realized as a result of reduced demand caused by the global coronavirus (COVID-19) pandemic. Realized gains from crude oil hedging activities improved after-tax results by $143 million in the third quarter of 2020 and $2 million in the third quarter of 2019. Including hedging, the Corporation’s average realized crude oil selling price was $45.60 per barrel in the third quarter of 2020, compared with $56.03 per barrel in the year-ago quarter. The average realized natural gas liquids (NGL) selling price in the third quarter of 2020 was $11.63 per barrel, compared with $9.41 per barrel in the prior-year quarter, while the average realized natural gas selling price was $2.94 per mcf, compared with $3.81 per mcf in the third quarter of 2019.

      Net production, excluding Libya, was 321,000 boepd in the third quarter of 2020, up 11% from third quarter 2019 net production of 290,000 boepd. The improved performance primarily resulted from a 21% increase in Bakken production and production from the Liza Field, offshore Guyana, which commenced in December 2019, partially offset by hurricane-related downtime in the Gulf of Mexico and lower production in South East Asia. There was no net production for Libya in the third quarter of 2020 due to the declaration of force majeure by the Libyan National Oil Corporation. Net production for Libya was 22,000 boepd in the third quarter of 2019.

      Cash operating costs, which include operating costs and expenses, production and severance taxes, and E&P general and administrative expenses, were $9.86 per boe excluding items affecting comparability of earnings between periods in the third quarter of 2020, down 19% from $12.13 per boe in the prior-year quarter due to the increased production volumes, lower production and severance taxes and the impact of cost-reduction initiatives.

Operational Highlights for the Third Quarter of 2020:

      Bakken (Onshore U.S.): Net production from the Bakken increased to 198,000 boepd from 163,000 boepd in the prior-year quarter, with net oil production up 13% to 108,000 bopd from 96,000 bopd, primarily due to increased wells online and improved well performance. Natural gas and NGL production also increased from higher wells online, additional natural gas captured and processed, and approximately 6,000 boepd of additional volumes received under percentage of proceeds contracts resulting from lower prices. The Corporation operated one rig in the third quarter, drilled 6 wells, completed 13 wells, and brought 22 new wells online.

      As previously announced in the second quarter, the Corporation chartered three very large crude carriers (VLCCs) to load a total of approximately 6 million barrels of oil in the second and third quarters for sale in Asian markets to enhance cash flow and maximize value from its Bakken production. The first VLCC cargo of 2.1 million barrels was sold in China in September with cash proceeds received in October.

      Gulf of Mexico (Offshore U.S.): Net production from the Gulf of Mexico was 49,000 boepd, compared with 59,000 boepd in the prior-year quarter reflecting hurricane-related downtime as well as higher planned maintenance. The Esox-1 well, which commenced production in February, reached its gross peak rate of approximately 17,000 boepd, or 9,000 boepd, net to Hess in the third quarter.

       In October, the Corporation entered into an agreement to sell it's 28% working interest in the Shenzi Field for total consideration of $505 million, subject to customary adjustments, with an effective date of July 1, 2020. Hess’ net share of production from the Shenzi Field during the first nine months of 2020 was 11,000 boepd. The sale is expected to close during the fourth quarter of 2020 and is subject to customary closing conditions.

      The BP operated Galapagos Deep well (Hess – 25%) in the Mississippi Canyon area of the deepwater Gulf of Mexico was not a commercial success and third quarter results include exploration expenses of $37 million, primarily for well costs incurred through September 30, 2020.

      Guyana (Offshore): At the Stabroek Block (Hess – 30%), the Corporation’s net production from the Liza Field, which commenced in December 2019, averaged 19,000 bopd in the third quarter of 2020. During the third quarter, the operator Esso Exploration and Production Guyana Limited continued work to complete the commissioning of the natural gas injection system that should enable the Liza Destiny floating production, storage and offloading vessel (FPSO) to reach its capacity of 120,000 gross bopd in the fourth quarter. Phase 2 of the Liza Field development, which will utilize the Liza Unity FPSO with an expected capacity of 220,000 gross bopd, remains on target to achieve first oil by early 2022.

     The Corporation announced it had made the final investment decision to proceed with development of the Payara Field on the Stabroek Block after the development plan received approval from the government of Guyana. Payara will utilize the Prosperity FPSO, which will have the capacity to produce up to 220,000 gross bopd and will target an estimated resource base of approximately 600 million barrels of oil. First oil is expected in 2024. Ten drill centers are planned with a total of 41 wells, including 20 production wells and 21 injection wells. Excluding pre-sanction costs and FPSO purchase cost, the Corporation’s net share of development costs is forecast to be approximately $1.8 billion.

      At the Stabroek Block, the operator announced discoveries at the Yellowtail-2 and Redtail-1 exploration wells. Yellowtail-2, the 17 ^th discovery on the Block, encountered approximately 69 feet of high quality oil bearing reservoirs adjacent to and below the Yellowtail-1 discovery. Redtail-1, the 18 ^th discovery on the Block, encountered approximately 232 feet of high quality oil bearing sandstone and is located 1.5 miles northwest of the Yellowtail discovery. The estimate of gross discovered recoverable resources on the Block has been increased to approximately 9 billion boe.

      Following the completion of appraisal work at the Yellowtail-2 well, the Stena Carron drillship began drilling the Tanager-1 well on the Kaieteur Block, located 46 miles northwest of Liza in August. Tanager-1 drilling operations are ongoing. The Noble Don Taylor drillship completed the drilling of the Redtail-1 well, and is currently drilling and completing Liza Phase 2 development wells. The other two drillships, the Noble Bob Douglas and the Noble Tom Madden, are drilling and completing Liza Phase 1 and Phase 2 development wells.

     South East Asia (Offshore): Net production at the North Malay Basin and JDA was 50,000 boepd, compared with 60,000 boepd in the prior-year quarter, reflecting COVID-19 impacts on economic activity in Malaysia which reduced natural gas nominations.

Midstream:

      The Midstream segment had net income of $56 million in the third quarter of 2020, compared with net income of $39 million in the prior-year quarter. The improved third quarter 2020 results were primarily driven by higher throughput volumes.

Corporate, Interest and Other:

     After-tax expense for Corporate, Interest and Other was $117 million in the third quarter of 2020, compared with $191 million in the third quarter of 2019. On an adjusted basis, after-tax expense for Corporate, Interest and Other was $116 million in the third quarter of 2020 compared with $103 million in the year-ago quarter. Interest expense increased $18 million compared with the prior-year quarter due to interest on the Corporation's $1.0 billion three year term loan entered into in March 2020 and a decrease in capitalized interest of $11 million.

Capital and Exploratory Expenditures:

     E&P capital and exploratory expenditures were $331 million in the third quarter of 2020, down from $661 million in the prior-year quarter. The decrease is primarily driven by the lower rig count in the Bakken and reduced development drilling in the Gulf of Mexico during the third quarter of 2020. For full year 2020, E&P capital and exploratory expenditures are expected to be approximately $1.8 billion which is down from prior guidance of approximately $1.9 billion. Midstream capital expenditures were $66 million in the third quarter of 2020, down from $112 million in the prior-year quarter.

Liquidity:

     Excluding the Midstream segment, Hess Corporation had cash and cash equivalents of $1.28 billion and debt and finance lease obligations totaling $6.6 billion at September 30, 2020. The Corporation’s debt to capitalization ratio as defined in its debt covenants was 45.7% at September 30, 2020 and 39.6% at December 31, 2019. At September 30, 2020, the fair value of crude oil put option hedge contracts, which cover more than 80% of the Corporation’s forecasted oil production for the remainder of 2020, was approximately $205 million. Realized settlements on closed contracts during the first nine months of 2020 were approximately $700 million. Proceeds from the sale of the first VLCC cargo of 2.1 million barrels of oil was received in October and proceeds from the sale of the second and third VLCC cargos totaling 4.2 million barrels of oil are expected in the first quarter of 2021. The Corporation expects to receive proceeds in the fourth quarter from the sale of its working interest in the Shenzi Field for total consideration of $505 million based on an effective date of July 1, 2020.

      The Midstream segment had cash and cash equivalents of $4 million and total debt of $1.9 billion at September 30, 2020.

     Net cash provided by operating activities was $136 million in the third quarter of 2020, down from $443 million in the third quarter of 2019 primarily due to lower realized crude oil selling prices, the impact on cash flows from deferring sales for 2.6 million barrels of oil loaded on VLCCs in the third quarter, and receipt of cash proceeds from the sale of the first VLCC cargo occurring in October. Net cash provided by operating activities before changes in operating assets and liabilities ² was $468 million in the third quarter of 2020, compared with $522 million in the prior-year quarter. Changes in operating assets and liabilities during the third quarter of 2020 decreased cash flow from operating activities by $332 million, primarily due to a reduction in payables reflecting reduced operating activity levels and the temporary increase in accounts receivable and inventory resulting from our VLCC transactions which will reverse over the next two quarters, compared with a net cash outflow of $79 million in the third quarter of 2019.

Items Affecting Comparability of Earnings Between Periods:

     The following table reflects the total after-tax income (expense) of items affecting comparability of earnings between periods:

     Third Quarter 2020: Third quarter results included a pre-tax charge for severance of $27 million ($27 million after income taxes) related to cost reduction initiatives. The pre-tax amounts are reported in Operating costs and expenses ($20 million), General and administrative expenses ($6 million), and Exploration expenses ($1 million).

     Third Quarter 2019: Corporate, Interest & Other included a noncash charge to recognize unamortized pension actuarial losses of $88 million ($88 million after income taxes) resulting from the purchase of a single premium annuity contract using funds of the pension plan to settle a portion of the plan’s benefit obligations. The charge is included in Other, net nonoperating income in the income statement. E&P results included a pre-tax charge of $21 million ($19 million after income taxes) related to a settlement on historical cost recovery balances in the JDA and is included in Marketing, including purchased oil and gas in the income statement.

Reconciliation of U.S. GAAP to Non-GAAP measures:

      The following table reconciles reported net income (loss) attributable to Hess Corporation and adjusted net income (loss):

The following table reconciles reported net cash provided by (used in) operating activities from net cash provided by (used in) operating activities before changes in operating assets and liabilities:

Hess Corporation will review third quarter financial and operating results and other matters on a webcast at 10 a.m. today (EDT). For details about the event, refer to the Investor Relations section of our website at www.hess.com.

Hess Corporation is a leading global independent energy company engaged in the exploration and production of crude oil and natural gas. More information on Hess Corporation is available at www.hess.com.

Forward-looking Statements

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Words such as “anticipate,” “estimate,” “expect,” “forecast,” “guidance,” “could,” “may,” “should,” “would,” “believe,” “intend,” “project,” “plan,” “predict,” “will,” “target” and similar expressions identify forward-looking statements, which are not historical in nature. Our forward-looking statements may include, without limitation: our future financial and operational results; our business strategy; estimates of our crude oil and natural gas reserves and levels of production; benchmark prices of crude oil, NGLs and natural gas and our associated realized price differentials; our projected budget and capital and exploratory expenditures; expected timing and completion of our development projects and proposed asset sale; and future economic and market conditions in the oil and gas industry.

Forward-looking statements are based on our current understanding, assessments, estimates and projections of relevant factors and reasonable assumptions about the future. Forward-looking statements are subject to certain known and unknown risks and uncertainties that could cause actual results to differ materially from our historical experience and our current projections or expectations of future results expressed or implied by these forward-looking statements. The following important factors could cause actual results to differ materially from those in our forward-looking statements: fluctuations in market prices of crude oil, NGLs and natural gas and competition in the oil and gas exploration and production industry, including as a result of the global COVID-19 pandemic; potential disruption or interruption of our operations due to catastrophic events, such as accidents, severe weather, geological events, shortages of skilled labor, cyber-attacks or health measures related to COVID-19; reduced demand for our products, including due to the global COVID-19 pandemic or the outbreak of any other public health threat or due to the impact of competing or alternative energy products and political conditions and events, such as instability, changes in governments, armed conflict, and economic sanctions; potential failures or delays in increasing oil and gas reserves, including as a result of unsuccessful exploration activity, drilling risks and unforeseen reservoir conditions; potential failures or delays in achieving expected production levels given inherent uncertainties in estimating quantities of proved reserves; changes in tax, property, contract and other laws, regulations and governmental actions applicable to our business, including legislative and regulatory initiatives regarding environmental concerns, such as measures to limit greenhouse gas emissions and well fracking bans; the ability of our contractual counterparties to satisfy their obligations to us, including the operation of joint ventures under which we may not control; the ability to satisfy the conditions to the proposed sale; unexpected changes in technical requirements for constructing, modifying or operating exploration and production facilities and/or the inability to timely obtain or maintain necessary permits; availability and costs of employees and other personnel, drilling rigs, equipment, supplies and other required services; any limitations on our access to capital or increase in our cost of capital as a result of weakness in the oil and gas industry or negative outcomes within commodity and financial markets; liability resulting from litigation, including heightened risks associated with being a general partner of Hess Midstream LP; and other factors described in Item 1A—Risk

For Hess Corporation

Investors:
Jay Wilson
(212) 536-8940

Media:
Lorrie Hecker
(212) 536-8250

Jamie Tully
Sard Verbinnen & Co
(312) 895-4700

MIAMI--(BUSINESS WIRE)--World Fuel Services Corporation (NYSE: INT) today announced that it has published its 2019 Sustainability Report, which highlights the company’s efforts around key environmental, social and governance areas that are important to the company’s business as well as its employees, customers, suppliers, investors and other stakeholders. The report covers a broad range of actions and initiatives that demonstrate World Fuel Services Corporation’s commitment to create a more environmentally and socially sustainable world.

The sustainability report includes World Fuel Services Corporation’s carbon footprint, reflecting the company’s global scope 1 and scope 2 greenhouse gas (GHG) emissions for 2019, totaling approximately 60,000 metric tons of CO₂ emissions. The company’s management team then designed a comprehensive renewable energy and carbon offset program to make the carbon emissions from its operations net zero for 2019. World Fuel Services Corporation is focused on making additional enhancements to its processes and technologies with the aim of further improving efficiencies and decarbonizing its operations over the long-term to achieve its sustainability goals.

“We have dedicated our resources with the aim of creating a more sustainable future for quite some time, and we believe this resonates through our actions, investments, and energy solutions,” stated Michael J. Kasbar, chairman and chief executive officer. “To further assist in accelerating the world’s energy transition, we are committed to continuing to drive innovative and cost-effective sustainability solutions for our clients, including increasing the availability and affordability of low to zero-carbon energy sources.”

About World Fuel Services Corporation

Headquartered in Miami, Florida, World Fuel Services is a global energy management company involved in providing energy procurement advisory services, supply fulfillment and transaction and payment management solutions to commercial and industrial customers, principally in the aviation, marine and land transportation industries. World Fuel Services sells fuel and delivers services to its clients at more than 8,000 locations in more than 200 countries and territories worldwide.

Information Relating to Forward-Looking Statements

This release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our beliefs and expectations with respect to the enhancements to our processes and technologies and our ability to further improve efficiencies and decarbonize our operations over the long-term, our expectations regarding our dedication of resources and our actions, investments and energy solutions, as well as our ability to drive innovative and cost-effective sustainability solutions for our clients, including increasing the availability and affordability of low to zero-carbon energy sources. These forward-looking statements are qualified in their entirety by cautionary statements and risk factor disclosures contained in the company’s Securities and Exchange Commission (“SEC”) filings, including the company’s most recent Annual Report on Form 10-K filed with the SEC.

Actual results may differ materially from any forward-looking statements due to risks and uncertainties, including, but not limited to: adverse conditions in the industries in which our customers operate and our ability to effectively manage the effects of the coronavirus pandemic; customer and counterparty creditworthiness and our ability to collect accounts receivable and settle derivative contracts, particularly for those customers most significantly impacted by the pandemic; sudden changes in the market price of fuel or extremely high or low fuel prices that continue for an extended period of time; the impact of climate change, extreme weather and natural disasters, including the economic, operational and other effects of severe storms, hurricanes, droughts and earthquakes; seasonal variability that adversely affects our revenues and operating results; changes in the political, economic or regulatory environment generally and in the markets in which we operate, including costs of compliance with existing and future environmental requirements, such as those related to climate change; reputational harm and potential impacts on our ability to attract or retain talent arising from negative perception of fossil fuels, environmental impacts and health and safety incidents; our ability to effectively leverage technology and realize the anticipated benefits; federal and state regulations, laws and other efforts designed to promote and expand the use of energy efficiency measures and related advancements in technology that reduce energy consumption; our ability to capitalize on new market opportunities and successfully implement our growth strategy; our ability to integrate acquired businesses and recognize the anticipated benefits; the effects of competition on our ability to grow our sustainability offerings; environmental and other risks associated with the storage, transportation and delivery of petroleum products; risks associated with operating in high-risk locations, including supply disruptions, border closures and other logistical difficulties that arise when working in these areas; the loss of, or reduced sales to a significant government customer, such as the North Atlantic Treaty Organization; our ability to achieve the expected level of benefit from any restructuring activities and cost reduction initiatives as well as successfully execute and achieve efficiencies; the availability of cash and sufficient liquidity to fund our working capital and strategic investment needs; uninsured losses; unanticipated tax liabilities or adverse results of tax audits, assessments, or disputes; the outcome of pending litigation and other proceedings; our ability to retain and attract senior management and other key employees and other risks detailed from time to time in our SEC filings.

We operate in a very competitive and rapidly changing environment and new risks emerge from time to time. It is not possible for us to predict all of those risks, nor can we assess the impact of all of those risks on our business or the extent to which any factor may cause actual results to differ materially from those contained in any forward-looking statement. Further, forward-looking statements speak only as of the date they are made, and unless required by law, we expressly disclaim any obligation or undertaking to publicly update any of them in light of new information, future events, or otherwise. Any public statements or disclosures by us following this report that modify or impact any of the forward-looking statements contained in or accompanying this report will be deemed to modify or supersede such forward-looking statements.

Ira M. Birns
Executive Vice President & Chief Financial Officer
Glenn Klevitz
Vice President, Treasurer & Investor Relations
305-428-8000
www.wfscorp.com

ST. JOHN’S, Newfoundland and Labrador--(BUSINESS WIRE)--$ALS.TO--Altius Minerals Corporation (ALS:TSX) (ATUSF:OTCQX) (“Altius”) is pleased to report the first investment under the recently announced joint venture between its subsidiary, Altius Renewable Royalties Corp., and certain funds managed by affiliates of Apollo Global Management, Inc. (NYSE:APO) (“Apollo”). This US$25 million investment in Tri Global Energy (“TGE”) follows an initial US$30 million investment announced in Q1 2019 and reflects TGE’s continuing success in completing project sales with attached royalties while also expanding its future projects pipeline. The full text of the announcement by Great Bay Renewables, LLC, the operating subsidiary of the Altius-Apollo joint venture, is reproduced below.

Great Bay Renewables Extends Additional Renewable Royalty Financing to Tri Global Energy

October 28, 2020 | Great Bay Renewables News & Media

PORTSMOUTH, N.H. (October 28, 2020) – Great Bay Renewables, LLC (“Great Bay”) is pleased to announce that it has closed an additional US$25 million royalty investment in Tri Global Energy’s (“TGE”) portfolio of wind and solar energy development projects located across the United States.

This follow-on investment in TGE is the first investment made by Great Bay following the recently announced joint venture between certain funds managed by affiliates of Apollo Global Management, Inc. (NYSE:APO) and Altius Minerals Corporation (TSX:ALS) subsidiary Altius Renewable Royalties Corp. to accelerate the growth of Great Bay’s innovative renewable energy royalty business (see press release).

The additional investment into TGE is an extension of the current US$30 million royalty investment that Great Bay made in TGE in early 2019, bringing the total royalty capital commitment to US$55 million. As TGE develops and sells individual projects, Great Bay receives a gross revenue royalty on each project for the full life of the project. To date, TGE has sold nearly 1 GW of renewable energy projects subject to the Great Bay royalty program and currently has over 2.5 GW in its development pipeline.

Frank Getman, President and CEO of Great Bay, commented, “We are excited to provide this extension of our current royalty investment based on TGE’s continued success in selling projects and expanding its development portfolio. The Great Bay royalty capital is helping TGE expand and diversify into developing solar energy as well as additional wind energy projects in new regions. We value our partnership with TGE and are thrilled to continue the advancement of a clean energy future through our renewable royalty financing.”

“Today Tri Global Energy is one of the top five developers of wind energy in the U.S. because of our commitment to growth and notable partnerships, like that with Great Bay,” said John Billingsley, Chairman and CEO of Tri Global Energy.

“We also really believe the future of this country and around the world is renewable energy. And it’s not a question of whether or when we’re going to get there. We’re already here,” Billingsley said.

Great Bay was advised on this transaction by an advisory team from CCA Capital LLC led by Martin Pasqualini and a legal team at Pierce Atwood LLP led by Kris Eimicke.

About Great Bay Renewables
Great Bay provides capital to the renewable energy sector in exchange for royalties in renewable energy generating facilities at all stages in their life cycle. Great Bay’s management team has extensive experience in renewable energy development, financing and operations across a range of renewable technologies located throughout the United States. Great Bay is backed by Altius Renewable Royalties Corp. and funds managed by affiliates of Apollo. Learn more about Great Bay at www.greatbayrenewables.com or follow us on LinkedIn.

About Tri Global Energy
Tri Global Energy (TGE) is an independent renewable energy originator and developer in the U.S. The company is the leading wind developer in Texas and among the top five in the U.S. for projects under construction. Nearly 4,000 megawatts of TGE’s development projects are either in financing, construction or operation, including wind, solar and energy storage projects.

Founded in 2009, Tri Global Energy’s mission is to improve communities through local economic development generated by originating and commercializing renewable energy projects. The company currently develops and owns utility-scale wind and solar energy projects in Texas, Nebraska, Illinois, Indiana, Pennsylvania and Virginia. Tri Global Energy is headquartered in Dallas with regional development offices in Lubbock, Texas; El Paso and Forreston, Illinois and Hartford City, Indiana. For more information, visit www.triglobalenergy.com.

About Altius
Altius’s strategy is to create per share growth through a diversified portfolio of royalty assets that relate to long life, high margin operations. This strategy further provides shareholders with exposures that are well aligned with sustainability-related global growth trends including the electricity generation transition from fossil fuel to renewables, transportation electrification, reduced emissions from steelmaking and increasing agricultural yield requirements. These each hold the potential to cause increased demand for many of Altius’s commodity exposures including copper, renewable based electricity, several key battery metals (lithium, nickel and cobalt), clean iron ore, and potash. Altius has 41,464,462 common shares issued and outstanding that are listed on Canada’s Toronto Stock Exchange. It is a member of both the S&P/TSX Small Cap and S&P/TSX Global Mining Indices.

Forward-Looking Information
This news release contains forward-looking information. The statements are based on reasonable assumptions and expectations of management and Altius provides no assurance that actual events will meet management's expectations. In certain cases, forward-looking information may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would". Although Altius believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those projected. Readers should not place undue reliance on forward-looking information. Altius does not undertake to update any forward-looking information contained herein except in accordance with securities regulation.

Flora Wood
This email address is being protected from spambots. You need JavaScript enabled to view it.
Tel: 1.877.576.2209
Direct: +1(416)346.9020

Ben Lewis
This email address is being protected from spambots. You need JavaScript enabled to view it.
1.877.576.2209

LONDON--(BUSINESS WIRE)--nVent Electric plc (NYSE:NVT) (“nVent”), a global leader in electrical connection and protection solutions, today launched the nVent RAYCHEM Supervisor IIoT (Industrial Internet of Things) platform, which is designed to connect, control and monitor temperature-critical assets.

The first offering of nVent’s new IIoT platform will be nVent RAYCHEM Pipeline Supervisor, which the company expects to deliver a groundbreaking “temperature-sensitive” heat trace monitoring software solution. It will offer unique access to performance trends and rich actionable data insights to enable the safe and efficient operation of vital heat tracing infrastructure.

“The nVent RAYCHEM Supervisor IIoT platform represents the culmination of nVent’s experience with engineering and deploying critical heat tracing infrastructure,” says Brad Faulconer, President of nVent’s Thermal Management segment. “We are excited our first offering within this platform will be nVent RAYCHEM Pipeline Supervisor, which will feature state of the art software-based solutions for predictive maintenance of temperature-sensitive pipelines.”

nVent RAYCHEM Supervisor and Elexant Controllers

With installations in facilities owned by the world’s largest chemical producers and oil and gas refiners, nVent RAYCHEM Supervisor incorporates 17 years of field-proven experience in demanding industrial applications. Supervisor is designed to program and monitor nVent RAYCHEM electronic temperature control products from centralized and remote locations.

nVent’s recently-launched Elexant controllers combined with the Elexant 9200i wireless connectivity interface provide centralized control and seamless connectivity to streamline data integration, manage energy consumption and maximize operational efficiencies.

nVent RAYCHEM Pipeline Supervisor

nVent RAYCHEM Pipeline Supervisor will enable operators and field maintenance personnel to assess heat trace infrastructure health in real time with a flexible browser-based user interface, aimed to optimize flow assurance and reduce operating costs. Using predictive analytics, Pipeline Supervisor will provide advanced warnings of pending threats to the safe and secure operation of critical pipelines.

A Complete Turn-Key Solution

nVent provides a complete turn-key product and services package for all control and monitoring solutions with design, engineering and commissioning capabilities, for a successful deployment in the field. This includes a comprehensive services package to ensure customers are fully supported post-deployment. Furthermore, nVent RAYCHEM Pipeline Supervisor will be compatible for retrofits so it can be seamlessly incorporated into existing infrastructure.

Through ongoing investment in research and development, nVent continues to be at the forefront of IIoT software and controller innovation throughout the heat tracing industry.

For more information on nVent RAYCHEM Supervisor products, please visit raychem.nvent.com/IIoT.

About nVent

nVent is a leading global provider of electrical connection and protection solutions. We believe our inventive electrical solutions enable safer systems and ensure a more secure world. We design, manufacture, market, install and service high performance products and solutions that connect and protect some of the world's most sensitive equipment, buildings and critical processes. We offer a comprehensive range of enclosures, electrical connections and fastening and thermal management solutions across industry-leading brands that are recognized globally for quality, reliability and innovation. Our principal office is in London and our management office in the United States is in Minneapolis. Our robust portfolio of leading electrical product brands dates back more than 100 years and includes nVent CADDY, ERICO, HOFFMAN, RAYCHEM, SCHROFF and TRACER.

nVent, CADDY, ERICO, HOFFMAN, RAYCHEM, SCHROFF and TRACER are trademarks owned or licensed by nVent Services GmbH or its affiliates.

Media Contacts:
Will Wright, +1-713-735-8740
nVent Marketing Manager
This email address is being protected from spambots. You need JavaScript enabled to view it.

Third Quarter 2020 Highlights:

• Net income was $115.8 million. Net cash provided by operating activities was $149.6 million.
• Net income attributable to Hess Midstream LP was $5.6 million, or $0.31 per Class A share, after deduction for noncontrolling interests.
• Adjusted EBITDA¹ was $181.6 million, DCF¹ was $156.2 million and free cash flow¹ was $115.2 million.
• Increased quarterly cash distribution to $0.4417 per Class A share, an increase of 1.2% compared with the second quarter of 2020, resulting in a 1.2x coverage ratio relative to distributions.
• Throughput volumes increased across all segments compared with the prior-year quarter, including 14% for gas processing and 8% for crude oil terminaling, driven by higher Hess Corporation production and increased gas capture by Hess Midstream LP.

Guidance:

• Following strong year-to-date results, Hess Midstream LP is raising its full year 2020 guidance for net income to $465 - $475 million and Adjusted EBITDA to $725 - $735 million, representing 48% and 33% growth, respectively, at the midpoint compared with full year 2019 results.
• Hess Midstream LP expects approximately 20% growth in Adjusted EBITDA in 2021 compared with newly issued and increased full year 2020 Adjusted EBITDA guidance.
• Hess Midstream LP is reaffirming its previously announced expectation for annual free cash flow in both 2021 and 2022 of approximately $750 million, with approximately 95% minimum volume commitment revenue protection, fully funding interest and growing distributions without incremental debt or equity.
• Hess Midstream LP is reaffirming its 5% annual distribution per share growth rate target through 2022 with expected distribution coverage of approximately 1.3x in 2020 and 1.4x in 2021 and 2022.

HOUSTON--(BUSINESS WIRE)--Hess Midstream LP (NYSE: HESM) (“Hess Midstream”) today reported third quarter 2020 net income of $115.8 million compared with net income of $87.4 million for the third quarter of 2019, as recast for the 2019 acquisition of Hess Infrastructure Partners LP (“HIP”) by Hess Midstream Operations LP (formerly known as Hess Midstream Partners LP) (the “Partnership”), Hess Midstream’s controlled subsidiary. After deduction for noncontrolling interests, net income attributable to Hess Midstream was $5.6 million, or $0.31 per Class A share. Hess Midstream generated Adjusted EBITDA of $181.6 million. DCF for the third quarter of 2020 was $156.2 million and free cash flow was $115.2 million.

Commenting on the third quarter 2020 results, John Gatling, President and Chief Operating Officer of Hess Midstream said, “We achieved another strong quarter driven by higher Hess production and increased gas capture by Hess Midstream. We are on track to deliver over 30% Adjusted EBITDA growth this year compared to 2019 and expect another year of Adjusted EBITDA growth in 2021 supported by our contracts. The strength and visibility of our business model is clear even in this period of macro uncertainty.”

Hess Midstream’s results contained in this release include the historical results of HIP for all periods prior to the closing of the Partnership’s acquisition of HIP, incentive distribution rights simplification and conversion from a master limited partnership into an “Up-C” structure on December 16, 2019 (collectively, the “Transaction”), which was accounted for as a business combination of entities under common control. We refer to certain results as “attributable to Hess Midstream LP,” which exclude (i) the noncontrolling interests in the Partnership retained by affiliates of Hess Corporation (“Hess”) and Global Infrastructure Partners, (ii) the noncontrolling interests in the historical operating subsidiaries of the Partnership, and (iii) historical activity of HIP prior to its acquisition by the Partnership, which is included in “net parent investment.”

Ongoing Response to COVID-19

The safety of our workforce and the communities where we operate continues to be our top priority. A cross-functional response team remains in place to coordinate our COVID-19 response from a health and safety perspective and to ensure that the detailed prevention protocols in place at all Hess Midstream assets are based on the most current recommendations by government and public health agencies.

Financial Results

Revenues and other income in the third quarter of 2020 were $264.8 million compared with $214.9 million in the prior-year quarter. Third quarter 2020 revenues included $29.3 million of pass-through rail transportation, electricity, produced water trucking and disposal costs and $7.8 million of shortfall fee payments related to minimum volume commitments (“MVC”) compared with $34.8 million and $3.0 million, respectively, in the prior-year quarter. Revenues were up primarily attributable to higher throughput volumes, MVC levels and tariff rates. Total costs and expenses in the third quarter of 2020 were $127.6 million up from $115.6 million in the prior-year quarter, primarily attributable to higher Little Missouri 4 (“LM4”) processing fees, maintenance expenditures on expanded infrastructure and depreciation expense for additional assets placed in service.

Net income for the third quarter of 2020 was $115.8 million and net cash provided by operating activities for the quarter was $149.6 million.

Adjusted EBITDA for the third quarter of 2020 was $181.6 million. Relative to distributions, DCF for the third quarter of 2020 of $156.2 million resulted in an approximately 1.2x distribution coverage ratio. Free cash flow for the third quarter of 2020 was $115.2 million.

Operational Highlights

Throughput volumes were up in all segments in the third quarter of 2020 compared with the third quarter of 2019 driven by higher Hess production and increased gas capture by Hess Midstream. In the gathering segment, throughput volumes increased 17% for gas gathering, 16% for crude oil gathering and 73% for water gathering. In the gas processing segment, throughput volumes increased 14%, and in the crude oil terminaling segment, throughput volumes increased 8%. Third parties comprised approximately 9% of crude oil gathering and 7% of gas gathering volumes for the third quarter of 2020.

Capital Expenditures

Capital expenditures for the third quarter of 2020 totaled $66.4 million, including $62.6 million of expansion capital expenditures and $3.8 million of maintenance capital expenditures. Capital expenditures in the prior-year quarter were $122.3 million, including $110.9 million of expansion capital expenditures, $10.0 million of equity investments associated with the LM4 gas processing plant, and $1.4 million of maintenance capital expenditures. Expansion capital expenditures in the third quarter of 2020 were primarily attributable to field construction activities for the planned expansion of the Tioga Gas Plant.

Quarterly Cash Distributions

On October 26, 2020, our general partner’s board of directors declared a cash distribution of $0.4417 per Class A share for the third quarter of 2020, an increase of 1.2% over the distribution for the prior quarter, which equals a 5% increase on an annualized basis. The distribution is expected to be paid on November 13, 2020 to shareholders of record as of the close of business on November 5, 2020.

2020 Guidance

Following strong year-to-date results, Hess Midstream updates its full year 2020 guidance as follows:

Investor Webcast

Hess Midstream will review third quarter financial and operating results and other matters on a webcast today at 12:00 p.m. Eastern Time. The live audio webcast is accessible on the Investor page of our website www.hessmidstream.com. Conference call numbers for participation are 866-395-9624, or 213-660-0871 for international callers. The passcode number is 6679756. A replay of the conference call will be available at the same location following the event.

About Hess Midstream

Hess Midstream LP is a fee‑based, growth-oriented midstream company that operates, develops and acquires a diverse set of midstream assets to provide services to Hess and third‑party customers. Hess Midstream owns oil, gas and produced water handling assets that are primarily located in the Bakken and Three Forks Shale plays in the Williston Basin area of North Dakota. More information is available at www.hessmidstream.com.

Reconciliation of U.S. GAAP to Non‑GAAP Measures

In addition to our financial information presented in accordance with U.S. generally accepted accounting principles (“GAAP”), management utilizes certain additional non‑GAAP measures to facilitate comparisons of past performance and future periods. “Adjusted EBITDA” presented in this release is defined as reported net income (loss) before net interest expense, income tax expense, depreciation and amortization and our proportional share of depreciation of our equity affiliates, as further adjusted to eliminate the impact of certain items that we do not consider indicative of our ongoing operating performance, such as transaction costs, other income and other non‑cash, non‑recurring items, if applicable. “Distributable Cash Flow” or “DCF” is defined as Adjusted EBITDA less net interest, excluding amortization of deferred financing costs, cash paid for federal and state income taxes and maintenance capital expenditures. DCF does not reflect changes in working capital balances. “Free cash flow” is defined as Adjusted EBITDA less capital expenditures, excluding acquisition capital expenditures. We believe that investors’ understanding of our performance is enhanced by disclosing these measures as they may assist in assessing our operating performance as compared to other publicly traded companies in the midstream energy industry, without regard to historical cost basis or, in the case of Adjusted EBITDA, financing methods, and assessing the ability of our assets to generate sufficient cash flow to make distributions to our shareholders. These measures are not, and should not be viewed as, a substitute for GAAP net income or cash flow from operating activities and should not be considered in isolation. Reconciliations of Adjusted EBITDA, DCF and free cash flow to reported net income (GAAP) and net cash provided by operating activities (GAAP), are provided below.