Island focused on developing renewable energy sources
KINGSTON, Jamaica--(BUSINESS WIRE)--#DOBUSINESSJAMAICA--The Caribbean’s leader in renewable energy, Jamaica, is making significant strides in boosting the diversification of its energy sector, as the government looks to implement the island’s ambitious Integrated Resource Plan (IRP).
The initiative has set a goal of adding around 1,600 megawatts (MW) of generation capacity over the next 20 years to expand the island’s energy resources. The aim is to facilitate reduced energy prices, and decrease vulnerability of the energy sector to external shocks such as oil prices. The IRP creates business opportunities in the form of requests for proposals (RFPs) that seek investors to fulfill the demand for more energy generation.
The IRP’s targets include 1260 MW of wind and solar, 330 MW of liquid natural gas (LNG), and 74 MW of hydro, biomass or waste energy by the year 2037. JAMPRO, Jamaica’s investment promotions agency, is tasked with securing the local and foreign investment that will drive the plan’s success, and the achievement of these targets.
The island is well on its way. Jamaica wants to have 33 per cent of electricity generation from renewables by 2030, and there are already impressive renewable energy projects on the island that are proving to be a strong foundation for the country’s energy resource plan. The 20-megawatt (MW) Content Solar Ltd. solar energy electricity generation plant owned by WRB Energy Company in Clarendon is one such example. In Westmoreland, the largest photovoltaic power plant in Jamaica, the 51 MWp (megawatts-peak) Paradise Park solar farm, is one of the island’s cheapest producers of energy.
There is also the Wigton Windfarm in Rose Hill, Manchester, which is the largest facility of its kind in the Caribbean with a 20.7 MW plant and an 18 MW extension facility. Jamaica’s energy provider, the Jamaica Public Service (JPS)’s Munro Wind Farm has a 3 MW capacity, while Blue Mountain Renewable (BMR) Jamaica Wind generates 34 MW. In St. Elizabeth, the JPS utility company operates a 7.2 MW hydro-electric plant in Maggoty.
Regarding these projects, Don Gittens, JAMPRO’s Manager of Logistics, Energy, and Infrastructure, stated “Current renewable energy projects represent approximately 14 per cent of energy generation in Jamaica, but our target is 50 per cent. There is therefore a significant opportunity because we have that gap between 14 per cent and 50 per cent that we intend to fill with additional renewable energy investments.”
Jamaica is currently seeking to procure 320 MW of wind and solar, 120 MW of LNG and 74 MW of hydro, biomass or waste energy for this year. Gittens elaborated, “That is the opportunity that exists right now for investors, so, these are very exciting times.”
Interest high in Jamaica’s energy sector
According to JAMPRO, there is serious interest in Jamaica’s energy sector. The Agency is entertaining several local and international investors who are interested in partaking in the RFP that is to come with the aforementioned energy generation opportunities.
This interest was maintained by JAMPRO through the pandemic, as the organisation chose to intensify its marketing activities. The company increased its digital outreach and direct engagements with sector leaders and business executives locally and internationally.
Diane Edwards, President of JAMPRO, said, “While there was a feeling of uncertainty, especially at the beginning of the pandemic, we knew that we had to continue to nurture our relationships and the renewable energy opportunity in Jamaica, and increase our marketing activities. COVID-19 re-emphasised the fact that sectors like logistics, energy, and agriculture must be major priorities, so the Jamaican government really used this time to identify the areas that needed even more focus as we continue Jamaica’s development.”
Sector development initiatives have continued, and JAMPRO has partnered with entities like New Energy Events and the REA - The Association for Renewable Energy & Clean Technology in the UK to continue its global promotion of the energy industry. Jamaica has also begun work on the development of an electronic vehicle charging network, confirming the country’s commitment to alternative energy sources.
“This is a very exciting time within the local and global energy sector as everything is moving towards renewable energy,” Gittens enthused. “Once the RFPs are ready, we are confident there will be a lot of investment coming through.”
ABOUT JAMPRO
The Jamaica Promotions Corporation (JAMPRO)’s mission is to drive economic development through growth in investment and export. JAMPRO is an Agency of the Ministry of Industry, Investment, and Commerce.
For more information on JAMPRO, please visit https://dobusinessjamaica.com/.
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Tamica Parchment
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Tele: 876-978-7755
Each Year, PG&E Invests $2.5 Billion Beyond Customer Rates in Electric, Gas and Generation Safety and Reliability
Attracting Cost-Effective Capital Is Vital to Funding Expanded Undergrounding Work and Other Wildfire Mitigation Efforts
SAN RAMON, Calif.--(BUSINESS WIRE)--Earlier today, operational and emergency response leaders from PG&E Corporation and Pacific Gas and Electric Company (together “PG&E”) briefed representatives from the financial community on the company’s progress on investing in electric and gas infrastructure that is safe, reliable and clean for customers in Northern and Central California. Approximately 150 members of the financial community received an in-depth briefing at PG&E’s Wildfire Command Center in San Ramon, Calif., where company leaders track daily progress in key areas such as electric system hardening, miles of power lines cleared of vegetation and trees, equipment inspections, weather status, and future risk-reduction work plans. PG&E’s Wildfire Safety Operations Center also recently relocated to San Ramon from the company’s previous headquarters in San Francisco.
A link to the financial community briefing materials can be found here.
“We are encouraging investors from around the world to deploy their capital in California to reimagine and rebuild our energy system to make it safer and more reliable. As we are seeing with California’s current drought-fueled wildfires, we are in a war on climate change, and investment capital is one of the necessary tools in our arsenal to deliver the energy system that our hometowns deserve,” said Patti Poppe, CEO of PG&E Corporation.
Outside Capital Investments Required to Support Customers and Communities
Each year, PG&E invests approximately $7.5 billion in its electric, gas and generation infrastructure. About $5 billion of that figure comes from customer rates on a yearly basis. Therefore, the company must secure an additional $2.5 billion in funding from non-customer financial sources like investors to make up the difference. Those outside investments are needed to fund accelerated risk reduction and safety improvements, reliability upgrades, and clean energy assets that help California meet its climate goals.
Recently Announced Initiative to Underground 10,000 Miles of Power Lines
PG&E recently announced a major new initiative to expand the undergrounding of electric distribution power lines in High Fire Threat Districts (HFTDs) to further harden its system and help prevent wildfires.
The new infrastructure safety initiative is a multi-year effort to underground approximately 10,000 miles of power lines, or about half the distance around the globe. PG&E’s commitment represents the largest effort in the U.S. to underground power lines as a wildfire risk reduction measure and will require significant additional investor funding to realize in the coming years.
The exact number of projects or miles undergrounded each year through PG&E’s new expanded undergrounding program will evolve as PG&E performs further project scoping and inspections, estimating and engineering review.
PG&E’s Commitment to Community Wildfire Safety
Investors also received an update on PG&E’s multi-faceted Community Wildfire Safety Program, which includes both immediate and long-term action plans to further reduce wildfire risk and keep its customers and communities safe.
Since 2018, PG&E’s wildfire safety work has resulted in:
Ongoing PG&E Wildfire Mitigation and Resiliency Efforts
PG&E’s ongoing safety work to enhance grid resilience and address the growing threat of severe weather and wildfires continues on a risk-based and data-driven basis, as outlined in PG&E's 2021 Wildfire Mitigation Plan.
This includes:
Learn more about PG&E’s wildfire safety efforts by visiting pge.com/wildfiresafety.
About PG&E
Pacific Gas and Electric Company, a subsidiary of PG&E Corporation (NYSE:PCG), is a combined natural gas and electric utility serving more than 16 million people across 70,000 square miles in Northern and Central California. For more information, visit pge.com and pge.com/news.
Forward-Looking Statements
This news release contains forward-looking statements that are not historical facts, including statements about the beliefs, expectations, estimates, future plans and strategies of PG&E Corporation and PG&E, including but not limited to wildfire safety and mitigation measures expected to be taken by PG&E. These statements are based on current expectations and assumptions, which management believes are reasonable, and on information currently available to management, but are necessarily subject to various risks and uncertainties. In addition to the risk that these assumptions prove to be inaccurate, factors that could cause actual results to differ materially from those contemplated by the forward-looking statements include factors disclosed in PG&E Corporation and the Utility’s joint annual report on Form 10-K for the year ended December 31, 2020, their most recent quarterly report on Form 10-Q for the quarter ended June 30, 2021, and other reports filed with the Securities and Exchange Commission, which are available on PG&E Corporation's website at www.pgecorp.com and on the SEC website at www.sec.gov. PG&E Corporation and PG&E undertake no obligation to publicly update or revise any forward-looking statements, whether due to new information, future events or otherwise, except to the extent required by law.
Media Relations
415.973.5930
HOUSTON--(BUSINESS WIRE)--Tidewater Inc. (NYSE:TDW) announced today revenue for the three and six months ended June 30, 2021 of $90.0 million and $173.5 million, respectively, compared with $102.3 million and $218.7 million, respectively, for the three and six months ended June 30, 2020. Tidewater's net losses for the three and six months ended June 30, 2021, were $29.5 million ($0.72 per common share) and $64.8 million ($1.59 per common share), respectively, compared with $110.6 million ($2.74 per common share) and $129.1 million ($3.21 per common share) for the three and six months ended June 30, 2020. Included in the net losses for the three and six months ended June 30, 2021 were severance expenses of $0.8 and $0.9 million, respectively; and a credit loss impairment credit of $1.0 million for both periods. Excluding these items, we would have reported a net loss for the three and six months ended June 30, 2021 of $29.7 million ($0.73 per common share) and $64.9 million ($1.59 per common share), respectively. Included in the net losses for the three and six months ended June 30, 2020 were $111.5 million and $121.8 million, respectively, in long-lived asset impairments, affiliate credit losses, affiliate guarantee obligations, and one-time severance expenses. Excluding these costs, we would have reported net income for the three months ended June 30, 2020 of $0.9 million ($0.02 per common share) and a net loss for the six months ended June 30, 2020 of $7.3 million (or $0.18 per common share).
Quintin Kneen, Tidewater’s President and Chief Executive Officer, commented, “Revenue, active vessels, average day rate, active utilization, and operating margin were all up on a consolidated basis in the second quarter. Individual geographic segments were mixed, but the overall trend and our outlook are constructive as we proceed through the remainder of the year. We continued our track record of generating meaningful free cash flow during the second quarter of 2021. During the second quarter, we generated $26.0 million of free cash flow, and over the trailing 12 months we have generated $84.0 million. The scalable shore base infrastructure we built over the past few years is helping us drive reliable and increasing free cash flow generation, as demonstrated by the substantial incremental operating income margins in the quarter.
“During the second quarter of 2021, revenue improved 7.7% sequentially, driven primarily by vessels reactivated in response to the increase in activity in the Europe and Mediterranean and West Africa regions. During the second quarter, we reactivated seven vessels, bringing the total number of vessel reactivations to 12 during the first six months of 2021.
“At the end of the second quarter, we had $135.2 million of principal outstanding on our senior secured notes, which are scheduled to mature in August 2022, along with $151.4 million of cash on the balance sheet. We continue to monitor the debt capital markets for the optimal timing of a potential refinance of all or a portion of these notes, as early repayment of this debt carries a significant pre-payment penalty. During the quarter, we decreased our net debt position by $21.1 million, ending the second quarter with $4.5 million of net debt on the balance sheet. We remain dedicated to our objective of meaningful free cash flow generation though the maturity of these notes and thereafter.
“Our ongoing fleet development program includes the sale or responsible recycling of vessels that are deemed uneconomic or which otherwise do not meet our future strategic goals, and during the second quarter we disposed of seven vessels and other assets for $18.6 million. We expect both the sale and recycling of vessels to taper off in the next 12 months as we work through the 14 vessels remaining in assets held for sale.
“Lastly, we continue to monitor the COVID-19 Delta variant. Similar to the steps we took in 2020 to protect our employees and our cash generation capability, we will take appropriate steps to continue to safeguard our employees and optimize our business as these later phases of the pandemic unfold. We have not seen a significant impact to our operations due to the Delta variant, although we were originally anticipating the additional costs of the pandemic to wane throughout 2021 and we now anticipate those costs to continue at the same level for the next few quarters. The new phase of the pandemic, however, doesn’t seem to be limiting broader market inertia and, in fact, we continue to see activity increase in most geographic regions.”
In addition to the number of outstanding shares, as of June 30, 2021, the company also has the following in-the-money warrants.
Common Shares Outstanding |
|
|
41,000,575 |
|
New Creditor Warrants (strike price $0.001 per common share) |
|
|
639,354 |
|
GulfMark Creditor Warrants (strike price $0.01 per common share) |
|
|
669,601 |
|
Total |
|
|
42,309,530 |
|
Tidewater will hold a conference call to discuss results for the three months ending June 30, 2021 on August 10, 2021, at 8:00 a.m. Central Time. Investors and interested parties may listen to the earnings conference call via telephone by calling +1-888-771-4371 if calling from the U.S. or Canada (+1-847-585-4405 if calling from outside the U.S.) and asking for the “Tidewater” call just prior to the scheduled start time. A live webcast of the call will also be available in the Investor Relations section of Tidewater’s website at investor.tdw.com.
A replay of the conference call will be available beginning at 10:30 a.m. Central Time on August 10, 2021 and will continue until 11:59 p.m. Central Time on September 10, 2021. To access the replay, visit the Investor Relations section of Tidewater’s website at investor.tdw.com.
The conference call will contain forward-looking statements in addition to statements of historical fact. The actual achievement of any forecasted results or the unfolding of future economic or business developments in a way anticipated or projected by the company involves numerous risks and uncertainties that may cause the company’s actual performance to be materially different from that stated or implied in the forward-looking statements. Such risks and uncertainties include, among other things, risks associated with the general nature of the oilfield service industry and other factors discussed within the “Risk Factors” section of Tidewater’s most recent Forms 10-Q and 10-K.
Tidewater owns and operates one of the largest fleets of offshore support vessels in the industry, with more than 65 years of experience supporting offshore energy exploration, production, and generation activities worldwide.
Note: All per-share amounts are stated on a diluted basis.
Financial information is displayed beginning on the next page.
TIDEWATER INC. |
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
(In thousands, except per share data) |
||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|
||||||||||||
|
June 30, |
|
June 30, |
|
June 30, |
|
June 30, |
|
||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Vessel revenues |
$ |
88,514 |
|
$ |
100,975 |
|
$ |
169,507 |
|
$ |
212,949 |
|
||||
Other operating revenues |
|
1,439 |
|
|
1,369 |
|
|
3,950 |
|
|
5,763 |
|
||||
Total revenues |
|
89,953 |
|
|
102,344 |
|
|
173,457 |
|
|
218,712 |
|
||||
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Vessel operating costs |
|
64,263 |
|
|
64,774 |
|
|
125,283 |
|
|
143,599 |
|
||||
Costs of other operating revenues |
|
581 |
|
|
171 |
|
|
1,648 |
|
|
2,844 |
|
||||
General and administrative |
|
16,787 |
|
|
17,597 |
|
|
32,830 |
|
|
39,017 |
|
||||
Depreciation and amortization |
|
28,549 |
|
|
28,144 |
|
|
58,276 |
|
|
55,251 |
|
||||
Long-lived asset impairments and other |
|
— |
|
|
55,482 |
|
|
— |
|
|
65,689 |
|
||||
Affiliate credit loss impairment expense (credit) |
|
(1,000 |
) |
|
53,581 |
|
|
(1,000 |
) |
|
53,581 |
|
||||
Affiliate guarantee obligation |
|
— |
|
|
2,000 |
|
|
— |
|
|
2,000 |
|
||||
(Gain) loss on asset dispositions, net |
|
932 |
|
|
(1,660 |
) |
|
2,880 |
|
|
(6,991 |
) |
||||
|
|
110,112 |
|
|
220,089 |
|
|
219,917 |
|
|
354,990 |
|
||||
Operating loss |
|
(20,159 |
) |
|
(117,745 |
) |
|
(46,460 |
) |
|
(136,278 |
) |
||||
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foreign exchange gain (loss) |
|
422 |
|
|
(2,076 |
) |
|
(428 |
) |
|
(1,212 |
) |
||||
Equity in net earnings (losses) of unconsolidated companies |
|
52 |
|
|
— |
|
|
(1,797 |
) |
|
— |
|
||||
Dividend income from unconsolidated company |
|
— |
|
|
17,150 |
|
|
— |
|
|
17,150 |
|
||||
Interest income and other, net |
|
8 |
|
|
696 |
|
|
31 |
|
|
812 |
|
||||
Interest and other debt costs, net |
|
(3,944 |
) |
|
(5,959 |
) |
|
(8,485 |
) |
|
(12,101 |
) |
||||
Total other expense |
|
(3,462 |
) |
|
9,811 |
|
|
(10,679 |
) |
|
4,649 |
|
||||
Loss before income taxes |
|
(23,621 |
) |
|
(107,934 |
) |
|
(57,139 |
) |
|
(131,629 |
) |
||||
Income tax (benefit) expense |
|
6,026 |
|
|
2,730 |
|
|
8,035 |
|
|
(2,441 |
) |
||||
Net loss |
$ |
(29,647 |
) |
$ |
(110,664 |
) |
$ |
(65,174 |
) |
$ |
(129,188 |
) |
||||
Less: Net loss attributable to noncontrolling interests |
|
(185 |
) |
|
(41 |
) |
|
(397 |
) |
|
(120 |
) |
||||
Net loss attributable to Tidewater Inc. |
$ |
(29,462 |
) |
$ |
(110,623 |
) |
$ |
(64,777 |
) |
$ |
(129,068 |
) |
||||
Basic loss per common share |
$ |
(0.72 |
) |
$ |
(2.74 |
) |
$ |
(1.59 |
) |
$ |
(3.21 |
) |
||||
Diluted loss per common share |
$ |
(0.72 |
) |
$ |
(2.74 |
) |
$ |
(1.59 |
) |
$ |
(3.21 |
) |
||||
Weighted average common shares outstanding |
|
40,899 |
|
|
40,306 |
|
|
40,808 |
|
|
40,203 |
|
||||
Adjusted weighted average common shares |
|
40,899 |
|
|
40,306 |
|
|
40,808 |
|
|
40,203 |
|
||||
TIDEWATER INC. |
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(In thousands, except share and par value data) |
||||||||
|
|
June 30, |
|
|
December 31, |
|
||
ASSETS |
|
2021 |
|
|
2020 |
|
||
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
131,157 |
|
|
$ |
149,933 |
|
Restricted cash |
|
|
20,284 |
|
|
|
2,079 |
|
Trade and other receivables, less allowance for credit losses of $2,099 and $1,516 at June 30, 2021 and December 31, 2020, respectively |
|
|
90,229 |
|
|
|
112,623 |
|
Due from affiliates, less allowance for credit losses of $70,695 and $71,800 at June 30, 2021 and December 31, 2020, respectively |
|
|
64,922 |
|
|
|
62,050 |
|
Marine operating supplies |
|
|
15,404 |
|
|
|
15,876 |
|
Assets held for sale |
|
|
17,214 |
|
|
|
34,396 |
|
Prepaid expenses and other current assets |
|
|
15,953 |
|
|
|
11,692 |
|
Total current assets |
|
|
355,163 |
|
|
|
388,649 |
|
Net properties and equipment |
|
|
731,659 |
|
|
|
780,318 |
|
Deferred drydocking and survey costs |
|
|
40,372 |
|
|
|
56,468 |
|
Other assets |
|
|
24,539 |
|
|
|
25,742 |
|
Total assets |
|
$ |
1,151,733 |
|
|
$ |
1,251,177 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
16,189 |
|
|
$ |
16,981 |
|
Accrued expenses |
|
|
50,532 |
|
|
|
52,422 |
|
Due to affiliates |
|
|
59,759 |
|
|
|
53,194 |
|
Current portion of long-term debt |
|
|
7,355 |
|
|
|
27,797 |
|
Other current liabilities |
|
|
28,825 |
|
|
|
32,785 |
|
Total current liabilities |
|
|
162,660 |
|
|
|
183,179 |
|
Long-term debt |
|
|
148,612 |
|
|
|
164,934 |
|
Other liabilities and deferred credits |
|
|
80,723 |
|
|
|
79,792 |
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
|
Common stock |
|
|
41 |
|
|
|
41 |
|
Additional paid-in-capital |
|
|
1,373,727 |
|
|
|
1,371,809 |
|
Accumulated deficit |
|
|
(613,708 |
) |
|
|
(548,931 |
) |
Accumulated other comprehensive loss |
|
|
(1,082 |
) |
|
|
(804 |
) |
Total stockholder's equity |
|
|
758,978 |
|
|
|
822,115 |
|
Noncontrolling interests |
|
|
760 |
|
|
|
1,157 |
|
Total equity |
|
|
759,738 |
|
|
|
823,272 |
|
Total liabilities and equity |
|
$ |
1,151,733 |
|
|
$ |
1,251,177 |
|
TIDEWATER INC. |
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS |
||||||||||||||||
(In thousands) |
||||||||||||||||
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
||||
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
||||
Net loss |
|
$ |
(29,647 |
) |
|
$ |
(110,664 |
) |
|
$ |
(65,174 |
) |
|
$ |
(129,188 |
) |
Other comprehensive income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in pension plan and supplemental pension plan liability, net of tax of $0, $0.2 million, $0 and $0.2 million, respectively |
|
|
(207 |
) |
|
|
448 |
|
|
|
(278 |
) |
|
|
817 |
|
Total comprehensive loss |
|
$ |
(29,854 |
) |
|
$ |
(110,216 |
) |
|
$ |
(65,452 |
) |
|
$ |
(128,371 |
) |
TIDEWATER INC. |
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(In thousands) |
||||||||
|
|
Six Months |
|
|
Six Months |
|
||
|
|
Ended |
|
|
Ended |
|
||
|
|
June 30, |
|
|
June 30, |
|
||
|
|
2021 |
|
|
2020 |
|
||
Operating activities: |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(65,174 |
) |
|
$ |
(129,188 |
) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
36,694 |
|
|
|
34,271 |
|
Amortization of deferred drydocking and survey costs |
|
|
21,582 |
|
|
|
20,980 |
|
Amortization of debt premiums and discounts |
|
|
1,986 |
|
|
|
1,357 |
|
Provision for deferred income taxes |
|
|
648 |
|
|
|
206 |
|
(Gain) loss on asset dispositions, net |
|
|
2,880 |
|
|
|
(6,991 |
) |
Loss on debt extinguishment |
|
|
59 |
|
|
|
— |
|
Affiliate credit loss impairment expense (credit) |
|
|
(1,000 |
) |
|
|
53,581 |
|
Affiliate guarantee obligation |
|
|
— |
|
|
|
2,000 |
|
Long-lived asset impairments and other |
|
|
— |
|
|
|
65,689 |
|
Stock-based compensation expense |
|
|
2,676 |
|
|
|
2,736 |
|
Changes in operating assets and liabilities, net: |
|
|
|
|
|
|
|
|
Trade and other receivables |
|
|
22,394 |
|
|
|
(4,991 |
) |
Changes in due to/from affiliates, net |
|
|
4,693 |
|
|
|
3,242 |
|
Accounts payable |
|
|
(792 |
) |
|
|
(10,390 |
) |
Accrued expenses |
|
|
(2,074 |
) |
|
|
(13,007 |
) |
Deferred drydocking and survey costs |
|
|
(6,771 |
) |
|
|
(28,964 |
) |
Other, net |
|
|
(7,234 |
) |
|
|
(3,354 |
) |
Net cash provided by (used in) operating activities |
|
|
10,567 |
|
|
|
(12,823 |
) |
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
Proceeds from asset dispositions |
|
|
29,560 |
|
|
|
20,906 |
|
Additions to properties and equipment |
|
|
(1,861 |
) |
|
|
(4,075 |
) |
Net cash provided by investing activities |
|
|
27,699 |
|
|
|
16,831 |
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
Principal payments on long-term debt |
|
|
(37,901 |
) |
|
|
(4,742 |
) |
Debt modification costs |
|
|
(855 |
) |
|
|
(612 |
) |
Debt extinguishment premium |
|
|
(59 |
) |
|
|
— |
|
Tax on share-based awards |
|
|
(758 |
) |
|
|
— |
|
Net cash used in financing activities |
|
|
(39,573 |
) |
|
|
(5,354 |
) |
Net change in cash, cash equivalents and restricted cash |
|
|
(1,307 |
) |
|
|
(1,346 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
|
155,225 |
|
|
|
227,608 |
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
153,918 |
|
|
$ |
226,262 |
|
|
|
|
|
|
|
|
||
Supplemental disclosure of cash flow information: |
|
|
|
|
|
|
|
|
Cash paid during the year for: |
|
|
|
|
|
|
|
|
Interest, net of amounts capitalized |
|
|
7,028 |
|
|
|
10,734 |
|
Income taxes |
|
|
6,609 |
|
|
|
6,461 |
|
Note (A): Cash, cash equivalents and restricted cash at June 30, 2021 includes $2.5 million in long-term restricted cash, which is included in other assets in our consolidated balance sheet. |
TIDEWATER INC. |
||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY |
||||||||||||||||||||||||
(In thousands) |
||||||||||||||||||||||||
|
|
Three Months Ended |
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional |
|
|
|
|
|
|
other |
|
|
Non |
|
|
|
|
|
|||
|
|
Common |
|
|
paid-in |
|
|
Accumulated |
|
|
comprehensive |
|
|
controlling |
|
|
|
|
|
|||||
|
|
stock |
|
|
capital |
|
|
deficit |
|
|
income (loss) |
|
|
interest |
|
|
Total |
|
||||||
Balance at March 31, 2021 |
|
$ |
41 |
|
|
|
1,372,846 |
|
|
|
(584,246 |
) |
|
|
(875 |
) |
|
|
945 |
|
|
|
788,711 |
|
Total comprehensive loss |
|
|
— |
|
|
|
— |
|
|
|
(29,462 |
) |
|
|
(207 |
) |
|
|
(185 |
) |
|
|
(29,854 |
) |
Amortization of share-based awards |
|
|
— |
|
|
|
881 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
881 |
|
Balance at June 30, 2021 |
|
$ |
41 |
|
|
|
1,373,727 |
|
|
|
(613,708 |
) |
|
|
(1,082 |
) |
|
|
760 |
|
|
|
759,738 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at March 31, 2020 |
|
$ |
40 |
|
|
|
1,368,325 |
|
|
|
(371,134 |
) |
|
|
133 |
|
|
|
1,532 |
|
|
|
998,896 |
|
Total comprehensive income (loss) |
|
|
— |
|
|
|
— |
|
|
|
(110,623 |
) |
|
|
448 |
|
|
|
(41 |
) |
|
|
(110,216 |
) |
Amortization of share-based awards |
|
|
— |
|
|
|
1,320 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,320 |
|
Balance at June 30, 2020 |
|
$ |
40 |
|
|
|
1,369,645 |
|
|
|
(481,757 |
) |
|
|
581 |
|
|
|
1,491 |
|
|
|
890,000 |
|
|
|
Six Months Ended |
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional |
|
|
|
|
|
|
other |
|
|
Non |
|
|
|
|
|
|||
|
|
Common |
|
|
paid-in |
|
|
Accumulated |
|
|
comprehensive |
|
|
controlling |
|
|
|
|
|
|||||
|
|
stock |
|
|
capital |
|
|
deficit |
|
|
income (loss) |
|
|
interest |
|
|
Total |
|
||||||
Balance at December 31, 2020 |
|
$ |
41 |
|
|
|
1,371,809 |
|
|
|
(548,931 |
) |
|
|
(804 |
) |
|
|
1,157 |
|
|
|
823,272 |
|
Total comprehensive loss |
|
|
— |
|
|
|
— |
|
|
|
(64,777 |
) |
|
|
(278 |
) |
|
|
(397 |
) |
|
|
(65,452 |
) |
Amortization of share-based awards |
|
|
— |
|
|
|
1,918 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,918 |
|
Balance at June 30, 2021 |
|
$ |
41 |
|
|
|
1,373,727 |
|
|
|
(613,708 |
) |
|
|
(1,082 |
) |
|
|
760 |
|
|
|
759,738 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2019 |
|
$ |
40 |
|
|
|
1,367,521 |
|
|
|
(352,526 |
) |
|
|
(236 |
) |
|
|
1,611 |
|
|
|
1,016,410 |
|
Total comprehensive income (loss) |
|
|
— |
|
|
|
— |
|
|
|
(129,068 |
) |
|
|
817 |
|
|
|
(120 |
) |
|
|
(128,371 |
) |
Adoption of credit loss accounting standard |
|
|
— |
|
|
|
— |
|
|
|
(163 |
) |
|
|
— |
|
|
|
— |
|
|
|
(163 |
) |
Amortization of share-based awards |
|
|
— |
|
|
|
2,124 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,124 |
|
Balance at June 30, 2020 |
|
$ |
40 |
|
|
|
1,369,645 |
|
|
|
(481,757 |
) |
|
|
581 |
|
|
|
1,491 |
|
|
|
890,000 |
|
The company’s vessel revenues and vessel operating costs and the related percentage of total vessel revenues, were as follows: |
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||||||||||||||||||
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
||||||||||||||||||||
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
||||||||||||||||||||
(In thousands) |
|
|
|
|
|
|
% |
|
|
|
|
|
|
% |
|
|
|
|
|
|
% |
|
|
|
|
|
|
% |
||||
Vessel revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
|
$ |
23,481 |
|
|
|
27 |
% |
|
$ |
34,044 |
|
|
|
34 |
% |
|
$ |
49,705 |
|
|
|
29 |
% |
|
$ |
65,903 |
|
|
|
31 |
% |
Middle East/Asia Pacific |
|
|
25,628 |
|
|
|
29 |
% |
|
|
23,983 |
|
|
|
24 |
% |
|
|
50,042 |
|
|
|
30 |
% |
|
|
48,811 |
|
|
|
23 |
% |
Europe/Mediterranean |
|
|
22,467 |
|
|
|
25 |
% |
|
|
20,620 |
|
|
|
20 |
% |
|
|
37,216 |
|
|
|
22 |
% |
|
|
50,111 |
|
|
|
24 |
% |
West Africa |
|
|
16,938 |
|
|
|
19 |
% |
|
|
22,328 |
|
|
|
22 |
% |
|
|
32,544 |
|
|
|
19 |
% |
|
|
48,124 |
|
|
|
23 |
% |
Total vessel revenues |
|
$ |
88,514 |
|
|
|
100 |
% |
|
$ |
100,975 |
|
|
|
100 |
% |
|
$ |
169,507 |
|
|
|
100 |
% |
|
$ |
212,949 |
|
|
|
100 |
% |
Vessel operating costs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crew costs |
|
$ |
37,685 |
|
|
|
43 |
% |
|
$ |
38,691 |
|
|
|
38 |
% |
|
$ |
72,847 |
|
|
|
43 |
% |
|
$ |
83,178 |
|
|
|
39 |
% |
Repair and maintenance |
|
|
9,534 |
|
|
|
11 |
% |
|
|
6,656 |
|
|
|
7 |
% |
|
|
18,971 |
|
|
|
11 |
% |
|
|
17,254 |
|
|
|
8 |
% |
Insurance |
|
|
(137 |
) |
|
|
(0 |
)% |
|
|
2,010 |
|
|
|
2 |
% |
|
|
486 |
|
|
|
1 |
% |
|
|
3,795 |
|
|
|
2 |
% |
Fuel, lube and supplies |
|
|
6,541 |
|
|
|
7 |
% |
|
|
6,383 |
|
|
|
6 |
% |
|
|
12,401 |
|
|
|
7 |
% |
|
|
16,135 |
|
|
|
8 |
% |
Other |
|
|
10,640 |
|
|
|
12 |
% |
|
|
11,034 |
|
|
|
11 |
% |
|
|
20,578 |
|
|
|
12 |
% |
|
|
23,237 |
|
|
|
11 |
% |
Total vessel operating costs |
|
|
64,263 |
|
|
|
73 |
% |
|
|
64,774 |
|
|
|
64 |
% |
|
|
125,283 |
|
|
|
74 |
% |
|
|
143,599 |
|
|
|
67 |
% |
Vessel operating margin (A) |
|
$ |
24,251 |
|
|
|
27 |
% |
|
$ |
36,201 |
|
|
|
36 |
% |
|
$ |
44,224 |
|
|
|
26 |
% |
|
$ |
69,350 |
|
|
|
33 |
% |
Note (A): Vessel operating margin equals revenues less vessel operating costs and excludes general and administrative expenses and depreciation and amortization. |
The company’s operating loss and other components of loss before income taxes and its related percentage of total revenues, were as follows: |
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||||||||||||||||||
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
||||||||||||||||||||
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
||||||||||||||||||||
(In thousands) |
|
|
|
|
|
|
% |
|
|
|
|
|
|
% |
|
|
|
|
|
|
% |
|
|
|
|
|
|
% |
||||
Vessel operating profit (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
|
$ |
(4,940 |
) |
|
|
(5 |
)% |
|
$ |
4,505 |
|
|
|
4 |
% |
|
$ |
(6,591 |
) |
|
|
(4 |
)% |
|
$ |
3,341 |
|
|
|
2 |
% |
Middle East/Asia Pacific |
|
|
266 |
|
|
|
0 |
% |
|
|
599 |
|
|
|
1 |
% |
|
|
(1,587 |
) |
|
|
(1 |
)% |
|
|
(257 |
) |
|
|
(0 |
)% |
Europe/Mediterranean |
|
|
(1,986 |
) |
|
|
(2 |
)% |
|
|
(1,750 |
) |
|
|
(2 |
)% |
|
|
(10,007 |
) |
|
|
(6 |
)% |
|
|
(203 |
) |
|
|
(0 |
)% |
West Africa |
|
|
(5,355 |
) |
|
|
(6 |
)% |
|
|
(3,984 |
) |
|
|
(4 |
)% |
|
|
(12,122 |
) |
|
|
(7 |
)% |
|
|
(8,847 |
) |
|
|
(4 |
)% |
Other operating profit |
|
|
858 |
|
|
|
1 |
% |
|
|
1,198 |
|
|
|
1 |
% |
|
|
2,302 |
|
|
|
1 |
% |
|
|
2,919 |
|
|
|
1 |
% |
|
|
|
(11,157 |
) |
|
|
(12 |
)% |
|
|
568 |
|
|
|
1 |
% |
|
|
(28,005 |
) |
|
|
(16 |
)% |
|
|
(3,047 |
) |
|
|
(1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate expenses (A) |
|
|
(9,070 |
) |
|
|
(10 |
)% |
|
|
(8,910 |
) |
|
|
(9 |
)% |
|
|
(16,575 |
) |
|
|
(10 |
)% |
|
|
(18,952 |
) |
|
|
(9 |
)% |
Gain (loss) on asset dispositions, net |
|
|
(932 |
) |
|
|
(1 |
)% |
|
|
1,660 |
|
|
|
2 |
% |
|
|
(2,880 |
) |
|
|
(2 |
)% |
|
|
6,991 |
|
|
|
3 |
% |
Affiliate credit loss impairment (expense) credit |
|
|
1,000 |
|
|
|
1 |
% |
|
|
(53,581 |
) |
|
|
(52 |
)% |
|
|
1,000 |
|
|
|
1 |
% |
|
|
(53,581 |
) |
|
|
(24 |
)% |
Affiliate guarantee obligation |
|
|
— |
|
|
|
0 |
% |
|
|
(2,000 |
) |
|
|
(2 |
)% |
|
|
— |
|
|
|
0 |
% |
|
|
(2,000 |
) |
|
|
(1 |
)% |
Long-lived asset impairments and other |
|
|
— |
|
|
|
0 |
% |
|
|
(55,482 |
) |
|
|
(54 |
)% |
|
|
— |
|
|
|
0 |
% |
|
|
(65,689 |
) |
|
|
(30 |
)% |
Operating loss |
|
$ |
(20,159 |
) |
|
|
(22 |
)% |
|
$ |
(117,745 |
) |
|
|
(115 |
)% |
|
$ |
(46,460 |
) |
|
|
(27 |
)% |
|
$ |
(136,278 |
) |
|
|
(62 |
)% |
Note (A): General and administrative expenses for the three and six months ended June 30, 2021 include stock-based compensation of $1.5 million and $2.7 million, respectively. General and administrative expenses for the three and six months ended June 30, 2020 include stock-based compensation of $1.4 million and $2.7 million, respectively. In addition, vessel operating and general and administrative costs for the three and six months ended June 30, 2021, include $0.8 million and $0.9 million in one-time restructuring and integration related costs, respectively. Vessel operating and general and administrative costs for the three and six months ended June 30, 2020, include $0.4 million and $0.6 million in one-time restructuring and integration related costs, respectively. |
TIDEWATER INC. |
||||||||||||||||||||
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) – QUARTERLY DATA |
||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||
(In thousands, except per share data) |
||||||||||||||||||||
|
|
Three Months Ended |
|
|||||||||||||||||
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|||||
|
|
2021 |
|
|
2021 |
|
|
2020 |
|
|
2020 |
|
|
2020 |
|
|||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vessel revenues |
|
$ |
88,514 |
|
|
|
80,993 |
|
|
|
87,830 |
|
|
|
85,395 |
|
|
|
100,975 |
|
Other operating revenues |
|
|
1,439 |
|
|
|
2,511 |
|
|
|
4,029 |
|
|
|
1,072 |
|
|
|
1,369 |
|
Total revenues |
|
|
89,953 |
|
|
|
83,504 |
|
|
|
91,859 |
|
|
|
86,467 |
|
|
|
102,344 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vessel operating costs (A) |
|
|
64,263 |
|
|
|
61,020 |
|
|
|
63,397 |
|
|
|
61,784 |
|
|
|
64,774 |
|
Costs of other operating revenue |
|
|
581 |
|
|
|
1,067 |
|
|
|
342 |
|
|
|
219 |
|
|
|
171 |
|
General and administrative (A) |
|
|
16,787 |
|
|
|
16,043 |
|
|
|
16,992 |
|
|
|
17,438 |
|
|
|
17,597 |
|
Depreciation and amortization |
|
|
28,549 |
|
|
|
29,727 |
|
|
|
30,681 |
|
|
|
30,777 |
|
|
|
28,144 |
|
Long-lived asset impairments and other |
|
|
— |
|
|
|
— |
|
|
|
6,475 |
|
|
|
1,945 |
|
|
|
55,482 |
|
Affiliate credit loss impairment expense (credit) |
|
|
(1,000 |
) |
|
|
— |
|
|
|
(600 |
) |
|
|
— |
|
|
|
53,581 |
|
Affiliate guarantee obligation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,000 |
|
(Gain) loss on asset dispositions, net |
|
|
932 |
|
|
|
1,948 |
|
|
|
(80 |
) |
|
|
(520 |
) |
|
|
(1,660 |
) |
Total operating costs and expenses |
|
|
110,112 |
|
|
|
109,805 |
|
|
|
117,207 |
|
|
|
111,643 |
|
|
|
220,089 |
|
Operating loss |
|
|
(20,159 |
) |
|
|
(26,301 |
) |
|
|
(25,348 |
) |
|
|
(25,176 |
) |
|
|
(117,745 |
) |
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange gain (loss) |
|
|
422 |
|
|
|
(850 |
) |
|
|
(2,880 |
) |
|
|
(1,153 |
) |
|
|
(2,076 |
) |
Equity in net earnings (losses) of unconsolidated companies |
|
|
52 |
|
|
|
(1,849 |
) |
|
|
164 |
|
|
|
— |
|
|
|
— |
|
Dividend income from unconsolidated company |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
17,150 |
|
Interest income and other, net |
|
|
8 |
|
|
|
23 |
|
|
|
144 |
|
|
|
272 |
|
|
|
696 |
|
Interest and other debt costs, net |
|
|
(3,944 |
) |
|
|
(4,541 |
) |
|
|
(5,984 |
) |
|
|
(6,071 |
) |
|
|
(5,959 |
) |
Total other expense |
|
|
(3,462 |
) |
|
|
(7,217 |
) |
|
|
(8,556 |
) |
|
|
(6,952 |
) |
|
|
9,811 |
|
Loss before income taxes |
|
|
(23,621 |
) |
|
|
(33,518 |
) |
|
|
(33,904 |
) |
|
|
(32,128 |
) |
|
|
(107,934 |
) |
Income tax (benefit) expense |
|
|
6,026 |
|
|
|
2,009 |
|
|
|
(4,477 |
) |
|
|
5,953 |
|
|
|
2,730 |
|
Net loss |
|
|
(29,647 |
) |
|
|
(35,527 |
) |
|
|
(29,427 |
) |
|
|
(38,081 |
) |
|
|
(110,664 |
) |
Net loss attributable to noncontrolling interests |
|
|
(185 |
) |
|
|
(212 |
) |
|
|
(180 |
) |
|
|
(154 |
) |
|
|
(41 |
) |
Net loss attributable to Tidewater Inc. |
|
$ |
(29,462 |
) |
|
|
(35,315 |
) |
|
|
(29,247 |
) |
|
|
(37,927 |
) |
|
|
(110,623 |
) |
Basic loss per common share |
|
$ |
(0.72 |
) |
|
|
(0.87 |
) |
|
|
(0.72 |
) |
|
|
(0.94 |
) |
|
|
(2.74 |
) |
Diluted loss per common share |
|
$ |
(0.72 |
) |
|
|
(0.87 |
) |
|
|
(0.72 |
) |
|
|
(0.94 |
) |
|
|
(2.74 |
) |
Weighted average common shares outstanding |
|
|
40,899 |
|
|
|
40,716 |
|
|
|
40,604 |
|
|
|
40,405 |
|
|
|
40,306 |
|
Dilutive effect of stock options and restricted stock |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted weighted average common shares |
|
|
40,899 |
|
|
|
40,716 |
|
|
|
40,604 |
|
|
|
40,405 |
|
|
|
40,306 |
|
Vessel operating margin |
|
$ |
24,251 |
|
|
|
19,973 |
|
|
|
24,433 |
|
|
|
23,611 |
|
|
|
36,201 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note (A) One-time restructuring and integration related costs |
|
$ |
795 |
|
|
|
103 |
|
|
|
291 |
|
|
|
641 |
|
|
|
446 |
|
TIDEWATER INC. |
||||||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||
(In thousands) |
||||||||||||||||||||
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|||||
ASSETS |
|
2021 |
|
|
2021 |
|
|
2020 |
|
|
2020 |
|
|
2020 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
131,157 |
|
|
|
131,858 |
|
|
|
149,933 |
|
|
|
192,243 |
|
|
|
203,119 |
|
Restricted cash |
|
|
20,284 |
|
|
|
9,061 |
|
|
|
2,079 |
|
|
|
26,401 |
|
|
|
19,880 |
|
Trade and other receivables, net |
|
|
90,229 |
|
|
|
99,865 |
|
|
|
112,623 |
|
|
|
100,583 |
|
|
|
115,008 |
|
Due from affiliate, net |
|
|
64,922 |
|
|
|
62,474 |
|
|
|
62,050 |
|
|
|
65,692 |
|
|
|
65,766 |
|
Marine operating supplies |
|
|
15,404 |
|
|
|
15,676 |
|
|
|
15,876 |
|
|
|
17,808 |
|
|
|
20,580 |
|
Assets held for sale |
|
|
17,214 |
|
|
|
31,214 |
|
|
|
34,396 |
|
|
|
19,163 |
|
|
|
29,064 |
|
Prepaid expenses and other current assets |
|
|
15,953 |
|
|
|
13,594 |
|
|
|
11,692 |
|
|
|
18,925 |
|
|
|
20,350 |
|
Total current assets |
|
|
355,163 |
|
|
|
363,742 |
|
|
|
388,649 |
|
|
|
440,815 |
|
|
|
473,767 |
|
Net properties and equipment |
|
|
731,659 |
|
|
|
754,707 |
|
|
|
780,318 |
|
|
|
820,876 |
|
|
|
839,912 |
|
Deferred drydocking and survey costs |
|
|
40,372 |
|
|
|
46,648 |
|
|
|
56,468 |
|
|
|
63,975 |
|
|
|
74,585 |
|
Other assets |
|
|
24,539 |
|
|
|
23,833 |
|
|
|
25,742 |
|
|
|
25,108 |
|
|
|
27,411 |
|
Total assets |
|
$ |
1,151,733 |
|
|
|
1,188,930 |
|
|
|
1,251,177 |
|
|
$ |
1,350,774 |
|
|
$ |
1,415,675 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
16,189 |
|
|
|
14,622 |
|
|
|
16,981 |
|
|
|
12,953 |
|
|
|
17,111 |
|
Accrued expenses |
|
|
50,532 |
|
|
|
48,466 |
|
|
|
52,422 |
|
|
|
55,811 |
|
|
|
60,993 |
|
Due to affiliates |
|
|
59,759 |
|
|
|
56,356 |
|
|
|
53,194 |
|
|
|
53,355 |
|
|
|
48,803 |
|
Current portion of long-term debt |
|
|
7,355 |
|
|
|
18,201 |
|
|
|
27,797 |
|
|
|
9,576 |
|
|
|
9,437 |
|
Other current liabilities |
|
|
28,825 |
|
|
|
35,003 |
|
|
|
32,785 |
|
|
|
31,599 |
|
|
|
25,815 |
|
Total current liabilities |
|
|
162,660 |
|
|
|
172,648 |
|
|
|
183,179 |
|
|
|
163,294 |
|
|
|
162,159 |
|
Long-term debt |
|
|
148,612 |
|
|
|
148,337 |
|
|
|
164,934 |
|
|
|
246,179 |
|
|
|
273,215 |
|
Other liabilities and deferred credits |
|
|
80,723 |
|
|
|
79,234 |
|
|
|
79,792 |
|
|
|
87,724 |
|
|
|
90,301 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock |
|
|
41 |
|
|
|
41 |
|
|
|
41 |
|
|
|
40 |
|
|
|
40 |
|
Additional paid-in-capital |
|
|
1,373,727 |
|
|
|
1,372,846 |
|
|
|
1,371,809 |
|
|
|
1,370,778 |
|
|
|
1,369,645 |
|
Accumulated deficit |
|
|
(613,708 |
) |
|
|
(584,246 |
) |
|
|
(548,931 |
) |
|
|
(519,684 |
) |
|
|
(481,757 |
) |
Accumulated other comprehensive income (loss) |
|
|
(1,082 |
) |
|
|
(875 |
) |
|
|
(804 |
) |
|
|
1,106 |
|
|
|
581 |
|
Total stockholder's equity |
|
|
758,978 |
|
|
|
787,766 |
|
|
|
822,115 |
|
|
|
852,240 |
|
|
|
888,509 |
|
Noncontrolling interests |
|
|
760 |
|
|
|
945 |
|
|
|
1,157 |
|
|
|
1,337 |
|
|
|
1,491 |
|
Total equity |
|
|
759,738 |
|
|
|
788,711 |
|
|
|
823,272 |
|
|
|
853,577 |
|
|
|
890,000 |
|
Total liabilities and equity |
|
$ |
1,151,733 |
|
|
|
1,188,930 |
|
|
|
1,251,177 |
|
|
|
1,350,774 |
|
|
|
1,415,675 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due from related parties, net of due to related parties: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sonatide (Angola) |
|
$ |
5,163 |
|
|
|
6,118 |
|
|
|
8,856 |
|
|
|
12,337 |
|
|
|
16,963 |
|
Tidewater Inc.
West Gotcher
Vice President, Finance and Investor Relations
+1.713.470.5285
HOUSTON--(BUSINESS WIRE)--NRG Energy, Inc. (NYSE:NRG) has priced its offering of $1.1 billion in aggregate principal amount of 3.875% senior notes due 2032 (the “New Notes”). The New Notes will be senior unsecured obligations of NRG and will be guaranteed by each of NRG’s current and future subsidiaries that guarantee indebtedness under NRG’s credit agreement. The New Notes are being issued under NRG’s Sustainability-Linked Bond Framework, which sets out certain sustainability targets, including reducing greenhouse gas emissions.
The New Notes mature on February 15, 2032. The offering is expected to close on August 23, 2021, subject to customary closing conditions. Failure to meet the sustainability targets with respect to the New Notes will result in a 25 basis point increase to the interest rate payable on the New Notes from and including August 15, 2026.
NRG intends to use the net proceeds from the offering, together with cash on hand and borrowings under one or more of its liquidity facilities, to repurchase, pursuant to NRG’s concurrent exercise of its optional redemption rights, (i) all of the $1.0 billion outstanding aggregate principal amount of its 7.25% senior notes due 2026 (the “2026 Notes”) and (ii) $355 million of the $1.23 billion outstanding aggregate principal amount of its 6.625% senior notes due 2027 (the “2027 Notes”), and to pay fees and expenses incurred in connection with the repurchase of the 2026 Notes and 2027 Notes.
The New Notes and related guarantees are being offered only to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), or, outside the United States, to persons other than “U.S. persons” in compliance with Regulation S under the Securities Act. The New Notes and related guarantees have not been registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release does not constitute an offer to sell any security, including the New Notes, nor a solicitation for an offer to purchase any security, including the New Notes, the 2026 Notes or the 2027 Notes.
About NRG
At NRG, we’re bringing the power of energy to people and organizations by putting customers at the center of everything we do. We generate electricity and provide energy solutions and natural gas to millions of customers through our diverse portfolio of retail brands. A Fortune 500 company, operating in the United States and Canada, NRG delivers innovative solutions while advocating for competitive energy markets and customer choice, working towards a sustainable energy future.
Forward-Looking Statements
This communication contains forward-looking statements that may state NRG’s or its management’s intentions, beliefs, expectations or predictions for the future. Such forward-looking statements are subject to certain risks, uncertainties and assumptions, and typically can be identified by the use of words such as “will,” “expect,” “estimate,” “anticipate,” “forecast,” “plan,” “believe” and similar terms. Although NRG believes that its expectations are reasonable, it can give no assurance that these expectations will prove to have been correct, and actual results may vary materially. Factors that could cause actual results to differ materially from those contemplated above include, among others, risks and uncertainties related to the capital markets generally and whether NRG will offer the New Notes or consummate the offering, the anticipated terms of the New Notes and the anticipated use of proceeds.
The foregoing review of factors that could cause NRG’s actual results to differ materially from those contemplated in the forward-looking statements included herein should be considered in connection with information regarding risks and uncertainties that may affect NRG’s future results included in NRG’s filings with the SEC at www.sec.gov.
Investors:
Kevin L. Cole, CFA
609.524.4526
This email address is being protected from spambots. You need JavaScript enabled to view it.
Media:
Candice Adams
609.524.5428
This email address is being protected from spambots. You need JavaScript enabled to view it.
DEERFIELD, Ill.--(BUSINESS WIRE)--Mitsui & Co., Inc. (8031: JP), one of the leading ammonia marketers in the world, and CF Industries Holdings, Inc. (NYSE: CF), the world’s largest producer of ammonia, today announced a memorandum of understanding that will guide the companies in a joint exploration of the development of blue ammonia projects in the United States.
Blue ammonia generally relates to the production of ammonia (NH3) with its byproduct carbon dioxide (CO2) removed through carbon capture and sequestration (CCS). Demand for blue ammonia is expected to grow significantly as a decarbonized energy source, both for its hydrogen content or as a fuel itself.
“As countries and industries continue to develop plans to achieve net-zero carbon emissions, there is broad interest in blue and green hydrogen and ammonia to help meet the world’s clean energy needs,” said Tony Will, president and chief executive officer, CF Industries Holdings, Inc. “CF Industries and Mitsui share a belief that blue ammonia will play a critical role in accelerating the world’s transition to clean energy and that demand for blue ammonia will grow meaningfully. We are pleased to collaborate with Mitsui and leverage the world class expertise of both companies to explore the development of blue ammonia capacity in the United States to meet this expected demand.”
Under the memorandum of understanding, CF Industries and Mitsui plan to execute various preliminary studies on the feasibility of blue ammonia production in the United States. Among the areas that the companies will study include establishing blue ammonia supply and supply chain infrastructure, CO2 transportation and storage, expected environmental impacts, and blue ammonia economics and marketing opportunities in Japan and in other countries.
In 2020, CF Industries announced an evolution of its strategy to focus on supporting and accelerating the world’s transition to a clean energy economy, with a focus on decarbonizing its ammonia production network. Efforts to date include a definitive agreement to develop the first commercial-scale green ammonia project in North America at is Donaldsonville, Louisiana, complex, as well as initiatives to develop CCS opportunities and other CO2 abatement projects to enable blue ammonia production. CF Industries has also established goals for net zero carbon emissions by 2050, with a 25% reduction in emissions intensity by 2030.
About Mitsui & Co. Inc.
Mitsui & Co., Ltd. (8031: JP) is a global trading and investment company with a diversified business portfolio that spans approximately 64 countries in Asia, Europe, North, Central & South America, The Middle East, Africa and Oceania.
Mitsui has over 5,600 employees and deploys talent around the globe to identify, develop, and grow businesses in collaboration with a global network of trusted partners. Mitsui has built a strong and diverse core business portfolio covering the Mineral and Metal Resources, Energy, Machinery and Infrastructure, and Chemicals industries.
Leveraging its strengths, Mitsui has further diversified beyond its core profit pillars to create multifaceted value in new areas, including innovative Energy Solutions, Healthcare & Nutrition and through a strategic focus on high-growth Asian markets. This strategy aims to derive growth opportunities by harnessing some of the world’s main mega-trends: sustainability, health & wellness, digitalization and the growing power of the consumer.
For more information on Mitsui & Co’s businesses visit, www.mitsui.com.
About CF Industries Holdings, Inc.
At CF Industries, our mission is to provide clean energy to feed and fuel the world sustainably. With our employees focused on safe and reliable operations, environmental stewardship, and disciplined capital and corporate management, we are on a path to decarbonize our ammonia production network – the world’s largest – to enable green and blue hydrogen and nitrogen products for energy, fertilizer, emissions abatement and other industrial activities. Our nine manufacturing complexes in the United States, Canada, and the United Kingdom, an unparalleled storage, transportation and distribution network in North America, and logistics capabilities enabling a global reach underpin our strategy to leverage our unique capabilities to accelerate the world’s transition to clean energy. CF Industries routinely posts investor announcements and additional information on the company’s website at www.cfindustries.com and encourages those interested in the company to check there frequently.
Media
Chris Close
Director, Corporate Communications
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Investors
Martin Jarosick
Vice President, Investor Relations
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DALLAS--(BUSINESS WIRE)--Kosmos Energy (NYSE/LSE: KOS) (“Kosmos” or the “Company”) announced today that the transaction for the sale and lease back of the Greater Tortue Ahmeyim (“GTA”) floating, production, storage, and offloading vessel (“FPSO”) has been successfully completed.
Completion of the transaction secures additional funding for Kosmos’ future development costs on the GTA project. Capital expenditures associated with the GTA project in 2021 net to Kosmos were previously estimated to be around $350 million. With the completion of the GTA FPSO sale and lease back transaction, Kosmos’ 2021 capital expenditures associated with the GTA project have been reduced to approximately $190 million, with remaining cash calls on the project for 2021 covered through the proceeds of the sale. The balance of the sale proceeds, as well as the additional savings from the transfer of remaining FPSO construction payments to BP Buyer, are expected to be largely realized in 2022.
The company expects to refinance National Oil Company loans later this year, providing approximately $100 million in additional financing for the GTA project.
FPSO Sale and Purchase Agreement (FPSO SPA) and Lease Agreement
BP, as the operator of the GTA project (BP Operator), with the consent of the GTA Unit participants and the respective States, agreed to sell the GTA FPSO (which is currently under construction by Technip Energies in China) to an affiliate of BP (BP Buyer). The FPSO will be leased back to BP Operator under a long-term lease agreement, for exclusive use in the GTA project.
BP Operator will continue to manage and supervise the construction contract with Technip Energies. Delivery of the FPSO to BP Buyer will occur after construction is complete and the FPSO has entered international waters, with the lease to BP Operator becoming effective on the same date, currently estimated to be late third quarter of 2022.
Kosmos will reimburse BP Operator for its pro rata share of cost under the lease agreement, which will be classified as an operating expense.
GTA Project Status
Key workstreams across the GTA project continue to make good progress year-to-date with the following milestones achieved:
Andrew G. Inglis, Kosmos Energy’s Chairman and Chief Executive Officer, said: “We are pleased to have successfully completed this transaction, which secures additional funding for our future development costs on the GTA project. This transaction demonstrates the strength and alignment of the GTA partnership. Kosmos, BP, the Governments of Mauritania and Senegal, and the respective national oil companies, all recognize the strategic importance of the project and are working together to bring it to fruition.”
About Kosmos Energy
Kosmos is a full-cycle deepwater independent oil and gas exploration and production company focused along the Atlantic Margins. Our key assets include production offshore Ghana, Equatorial Guinea and U.S. Gulf of Mexico, as well as a world-class gas development offshore Mauritania and Senegal. Kosmos is listed on the New York Stock Exchange and London Stock Exchange and is traded under the ticker symbol KOS. As an ethical and transparent company, Kosmos is committed to doing things the right way. The Company’s Business Principles articulate our commitment to transparency, ethics, human rights, safety and the environment. Read more about this commitment in our Corporate Responsibility Report. For additional information, visit www.kosmosenergy.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Kosmos expects, believes or anticipates will or may occur in the future are forward-looking statements. Kosmos’ estimates and forward-looking statements are mainly based on its current expectations and estimates of future events and trends, which affect or may affect its businesses and operations. Although Kosmos believes that these estimates and forward-looking statements are based upon reasonable assumptions, they are subject to several risks and uncertainties and are made in light of information currently available to Kosmos. When used in this press release, the words “anticipate,” “believe,” “intend,” “expect,” “plan,” “will” or other similar words are intended to identify forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Kosmos, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. Further information on such assumptions, risks and uncertainties is available in Kosmos’ Securities and Exchange Commission (“SEC”) filings. Kosmos undertakes no obligation and does not intend to update or correct these forward-looking statements to reflect events or circumstances occurring after the date of this press release, except as required by applicable law. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement.
Investor Relations
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DEERFIELD, Ill.--(BUSINESS WIRE)--CF Industries Holdings, Inc. (NYSE: CF) today announced that its wholly owned subsidiary CF Industries, Inc. has elected to redeem on September 10, 2021, $250,000,000 principal amount, representing one-third of the currently outstanding $750,000,000 principal amount, of its 3.450% Senior Notes due 2023 (the “Notes”), in accordance with the optional redemption provisions of the indenture governing the Notes. CF intends to use cash on hand to fund the redemption.
This press release does not constitute a notice of redemption. Beneficial owners of the Notes with any questions should contact the brokerage firm or financial institution through which they hold the Notes.
About CF Industries Holdings, Inc.
At CF Industries, our mission is to provide clean energy to feed and fuel the world sustainably. With our employees focused on safe and reliable operations, environmental stewardship, and disciplined capital and corporate management, we are on a path to decarbonize our ammonia production network – the world’s largest – to enable green and blue hydrogen and nitrogen products for energy, fertilizer, emissions abatement and other industrial activities. Our nine manufacturing complexes in the United States, Canada, and the United Kingdom, an unparalleled storage, transportation and distribution network in North America, and logistics capabilities enabling a global reach underpin our strategy to leverage our unique capabilities to accelerate the world’s transition to clean energy. CF Industries routinely posts investor announcements and additional information on the company’s website at www.cfindustries.com and encourages those interested in the company to check there frequently.
Safe Harbor Statement
All statements in this communication by CF Industries Holdings, Inc. (together with its subsidiaries, the “Company”), other than those relating to historical facts, are forward-looking statements. Forward-looking statements can generally be identified by their use of terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “will” or “would” and similar terms and phrases, including references to assumptions. Forward-looking statements are not guarantees of future performance and are subject to a number of assumptions, risks and uncertainties, many of which are beyond the Company’s control, which could cause actual results to differ materially from such statements. These statements may include, but are not limited to, statements about strategic plans and management’s expectations with respect to the production of green and blue (low-carbon) ammonia, the development of carbon capture and sequestration projects, the transition to and growth of a hydrogen economy, greenhouse gas reduction targets, projected capital expenditures, statements about future financial and operating results, and other items described in this communication.
Important factors that could cause actual results to differ materially from those in the forward-looking statements include, among others, the cyclical nature of the Company’s business and the impact of global supply and demand on the Company’s selling prices; the global commodity nature of the Company’s fertilizer products, the conditions in the international market for nitrogen products, and the intense global competition from other producers; conditions in the United States, Europe and other agricultural areas; the volatility of natural gas prices in North America and Europe; weather conditions; the seasonality of the fertilizer business; the impact of changing market conditions on the Company’s forward sales programs; difficulties in securing the supply and delivery of raw materials, increases in their costs or delays or interruptions in their delivery; reliance on third party providers of transportation services and equipment; risks associated with cyber security; the Company’s reliance on a limited number of key facilities; acts of terrorism and regulations to combat terrorism; risks associated with international operations; the significant risks and hazards involved in producing and handling the Company’s products against which the Company may not be fully insured; the Company’s ability to manage its indebtedness and any additional indebtedness that may be incurred; the Company’s ability to maintain compliance with covenants under its revolving credit agreement and the agreements governing its indebtedness; downgrades of the Company’s credit ratings; risks associated with changes in tax laws and disagreements with taxing authorities; risks involving derivatives and the effectiveness of the Company’s risk measurement and hedging activities; potential liabilities and expenditures related to environmental, health and safety laws and regulations and permitting requirements; regulatory restrictions and requirements related to greenhouse gas emissions; the development and growth of the market for green and blue (low-carbon) ammonia and the risks and uncertainties relating to the development and implementation of the Company’s green and blue (low-carbon) ammonia projects; risks associated with expansions of the Company’s business, including unanticipated adverse consequences and the significant resources that could be required; risks associated with the operation or management of the strategic venture with CHS (the “CHS Strategic Venture”), risks and uncertainties relating to the market prices of the fertilizer products that are the subject of the supply agreement with CHS over the life of the supply agreement, and the risk that any challenges related to the CHS Strategic Venture will harm the Company’s other business relationships; and the impact of the novel coronavirus disease 2019 (COVID-19) pandemic, including measures taken by governmental authorities to slow the spread of the virus, on our business and operations.
More detailed information about factors that may affect the Company’s performance and could cause actual results to differ materially from those in any forward-looking statements may be found in CF Industries Holdings, Inc.’s filings with the Securities and Exchange Commission, including CF Industries Holdings, Inc.’s most recent annual and quarterly reports on Form 10-K and Form 10-Q, which are available in the Investor Relations section of the Company’s web site. It is not possible to predict or identify all risks and uncertainties that might affect the accuracy of our forward-looking statements and, consequently, our descriptions of such risks and uncertainties should not be considered exhaustive. There is no guarantee that any of the events, plans or goals anticipated by these forward-looking statements will occur, and if any of the events do occur, there is no guarantee what effect they will have on our business, results of operations, cash flows, financial condition and future prospects. Forward-looking statements are given only as of the date of this communication and the Company disclaims any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Media
Chris Close
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Investors
Martin Jarosick
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DUBLIN--(BUSINESS WIRE)--The "Emergency Spill Response - Global Market Trajectory & Analytics" report has been added to ResearchAndMarkets.com's offering.
Amid the COVID-19 crisis, the global market for Emergency Spill Response estimated at US$26.9 Billion in the year 2020, is projected to reach a revised size of US$39.3 Billion by 2027, growing at a CAGR of 5.6% over the period 2020-2027.
Product, one of the segments analyzed in the report, is projected to record 5.3% CAGR and reach US$29.3 Billion by the end of the analysis period. After an early analysis of the business implications of the pandemic and its induced economic crisis, growth in the Service segment is readjusted to a revised 6.5% CAGR for the next 7-year period.
The U.S. Market is Estimated at $7.9 Billion, While China is Forecast to Grow at 5.2% CAGR
The Emergency Spill Response market in the U.S. is estimated at US$7.9 Billion in the year 2020. China, the world's second largest economy, is forecast to reach a projected market size of US$6.9 Billion by the year 2027 trailing a CAGR of 5.2% over the analysis period 2020 to 2027. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 5.3% and 4.5% respectively over the 2020-2027 period. Within Europe, Germany is forecast to grow at approximately 4.6% CAGR.
Select Competitors (Total 46 Featured):
Key Topics Covered:
I. METHODOLOGY
II. EXECUTIVE SUMMARY
III. MARKET ANALYSIS
IV. COMPETITION
For more information about this report visit https://www.researchandmarkets.com/r/5fyfg
ResearchAndMarkets.com
Laura Wood, Senior Press Manager
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TULSA, Okla.--(BUSINESS WIRE)--NGL Energy Partners LP (NYSE:NGL) (“NGL,” “our,” “we,” or the “Partnership”) today reported its first quarter Fiscal 2022 results. Highlights for the quarter include:
“Our Water Solutions segment continues to drive the growth of the Partnership and performed very well during the first quarter. Adjusted EBITDA for the segment grew significantly quarter over quarter with both produced water volumes processed and Adjusted EBITDA achieving expectations. Results in our Crude Oil Logistics and Liquids Logistics segments were impacted by increases in our inventories and timing of recognizing hedge gains (losses). We expect to see improved results going forward due to embedded, unrealized gains in our inventory, with the annual result being in line with the low end of our original expectations for the fiscal year,” stated Mike Krimbill, NGL’s CEO. “Overall, the Partnership is pleased with the outlook for the future as both the macroeconomic environment and our Water Solutions business continue to improve,” Krimbill concluded.
Quarterly Results of Operations
The following table summarizes operating income (loss) and Adjusted EBITDA from continuing operations by reportable segment for the periods indicated:
|
|
Quarter Ended |
||||||||||||||||||
|
|
June 30, 2021 |
|
June 30, 2020 |
||||||||||||||||
|
|
Operating
|
|
Adjusted
|
|
Operating
|
|
Adjusted
|
||||||||||||
|
|
(in thousands) |
||||||||||||||||||
Water Solutions |
|
$ |
7,583 |
|
|
|
$ |
81,511 |
|
|
|
$ |
(16,047 |
) |
|
|
$ |
56,926 |
|
|
Crude Oil Logistics |
|
(11,581 |
) |
|
|
13,148 |
|
|
|
23,320 |
|
|
|
30,854 |
|
|
||||
Liquids Logistics |
|
(53,409 |
) |
|
|
5,574 |
|
|
|
4,562 |
|
|
|
12,232 |
|
|
||||
Corporate and Other |
|
(11,927 |
) |
|
|
(9,132 |
) |
|
|
(22,620 |
) |
|
|
(9,030 |
) |
|
||||
Total |
|
$ |
(69,334 |
) |
|
|
$ |
91,101 |
|
|
|
$ |
(10,785 |
) |
|
|
$ |
90,982 |
|
|
Water Solutions
The Partnership processed approximately 1.7 million barrels of water per day during the quarter ended June 30, 2021, a 22.0% increase when compared to approximately 1.4 million barrels of water per day processed during the quarter ended June 30, 2020, due to higher production volumes in the Delaware Basin driven by the recovery in crude oil prices from the prior year. Additionally, brackish non-potable water, resale of raw produced water and recycled water revenue all increased driven by the demand for these services.
Revenues from recovered crude oil, including the impact from realized skim oil hedges, totaled $16.0 million for the quarter ended June 30, 2021, an increase of $5.9 million from the prior year period. This increase was due to an increase in the number of wells completed in our area of operations during the current period and higher crude oil prices, as well as a strategic decision made by the Partnership to store the majority of its recovered barrels due to low prices during the quarter ended June 30, 2020.
Operating expenses in the Water Solutions segment decreased to $0.26 per barrel compared to $0.32 per barrel in the comparative quarter last year primarily due to significant steps taken to reduce operating costs per barrel along with higher produced water volumes processed. The Water Solutions segment continues to evaluate additional cost saving initiatives.
Crude Oil Logistics
Operating income for the first quarter of Fiscal 2022 decreased compared to the first quarter of Fiscal 2021 primarily due to an increase in net derivative losses on our inventory position as a result of increasing crude oil prices as well as lower activity and the reduction of minimum volume commitments on our Grand Mesa Pipeline. Revenues from third parties for Grand Mesa Pipeline decreased by $27.3 million, compared to the quarter ended June 30, 2020 due to lower third-party volumes transported on the pipeline. During the three months ended June 30, 2021, financial volumes on the Grand Mesa Pipeline averaged approximately 77,000 barrels per day, compared to approximately 119,000 barrels per day for the three months ended June 30, 2020.
Liquids Logistics
Operating loss for the Liquids Logistics segment totaled $53.4 million for the quarter ended June 30, 2021, including the $60.1 million loss on the sale of the Partnership’s membership interest in Sawtooth Caverns, LLC, which impacts comparability to the prior year period.
Total product margin per gallon, excluding the impact of derivatives, was $0.066 for the quarter ended June 30, 2021, compared to $0.024 for the quarter ended June 30, 2020. This increase in margin was primarily due to increased biodiesel and RIN prices and was offset by lower demand for other products. Refined products volumes decreased by approximately 26.7 million gallons, or 12.6%, during the quarter ended June 30, 2021 compared to the quarter ended June 30, 2020 due to tighter supply and continued weakness in demand in certain parts of the country due to the COVID-19 pandemic. Propane volumes decreased by approximately 82.0 million gallons, or 32.5%, as warmer weather during the quarter and higher prices led to weaker demand. Butane volumes increased by approximately 3.0 million gallons, or 2.5%, when compared to the quarter ended June 30, 2020.
Corporate and Other
Corporate and Other expenses decreased from the comparable prior year period primarily due the $10.2 million net loss recorded for the uncollectible portion of a loan receivable with a third party in the prior year.
Capitalization and Liquidity
Total liquidity (cash plus available capacity on our asset-based revolving credit facility) was approximately $303 million as of June 30, 2021. Borrowings on the Partnership’s revolving credit facility totaled $77 million, a $73 million increase to the March 31, 2021 balance. This increase was primarily due to increases in working capital balances as both inventory volumes and commodity prices increased.
The Partnership is in compliance with all of its debt covenants and has no significant debt maturities before November 2023. The Partnership still expects to generate excess cash flow in Fiscal Year 2022, which will be utilized to repay outstanding indebtedness and improve leverage.
First Quarter Conference Call Information
A conference call to discuss NGL’s results of operations is scheduled for 4:00 pm Central Time on Monday, August 9, 2021. Analysts, investors, and other interested parties may access the conference call by pre-registering here and providing access code 5592767. An archived audio replay of the conference call will be available for 7 days beginning at 1:00 pm Central Time on August 10, 2021, which can be accessed by dialing (855) 859-2056 and providing access code 5592767.
Non-GAAP Financial Measures
NGL defines EBITDA as net income (loss) attributable to NGL Energy Partners LP, plus interest expense, income tax expense (benefit), and depreciation and amortization expense. NGL defines Adjusted EBITDA as EBITDA excluding net unrealized gains and losses on derivatives, lower of cost or net realizable value adjustments, gains and losses on disposal or impairment of assets, gains and losses on early extinguishment of liabilities, equity-based compensation expense, acquisition expense, revaluation of liabilities, certain legal settlements and other. NGL also includes in Adjusted EBITDA certain inventory valuation adjustments related to TransMontaigne Product Services, LLC (“TPSL”), our refined products business in the mid-continent region of the United States (“Mid-Con”) and our gas blending business in the southeastern and eastern regions of the United States (“Gas Blending”), which are included in discontinued operations, and certain refined products businesses within NGL’s Liquids Logistics segment, as discussed below. EBITDA and Adjusted EBITDA should not be considered as alternatives to net loss, loss from continuing operations before income taxes, cash flows from operating activities, or any other measure of financial performance calculated in accordance with GAAP, as those items are used to measure operating performance, liquidity or the ability to service debt obligations. NGL believes that EBITDA provides additional information to investors for evaluating NGL’s ability to make quarterly distributions to NGL’s unitholders and is presented solely as a supplemental measure. NGL believes that Adjusted EBITDA provides additional information to investors for evaluating NGL’s financial performance without regard to NGL’s financing methods, capital structure and historical cost basis. Further, EBITDA and Adjusted EBITDA, as NGL defines them, may not be comparable to EBITDA, Adjusted EBITDA, or similarly titled measures used by other entities.
Other than for certain businesses within NGL’s Liquids Logistics segment, for purposes of the Adjusted EBITDA calculation, NGL makes a distinction between realized and unrealized gains and losses on derivatives. During the period when a derivative contract is open, NGL records changes in the fair value of the derivative as an unrealized gain or loss. When a derivative contract matures or is settled, NGL reverses the previously recorded unrealized gain or loss and record a realized gain or loss. NGL does not draw such a distinction between realized and unrealized gains and losses on derivatives of certain businesses within NGL’s Liquids Logistics segment. The primary hedging strategy of these businesses is to hedge against the risk of declines in the value of inventory over the course of the contract cycle, and many of the hedges cover extended periods of time. The “inventory valuation adjustment” row in the reconciliation table reflects the difference between the market value of the inventory of these businesses at the balance sheet date and its cost, adjusted for the impact of seasonal market movements related to our base inventory and the related hedge. NGL includes this in Adjusted EBITDA because the unrealized gains and losses associated with derivative contracts associated with the inventory of this segment, which are intended primarily to hedge inventory holding risk and are included in net income, also affect Adjusted EBITDA. In NGL’s Crude Oil Logistics segment, they purchase certain crude oil barrels using the West Texas Intermediate (“WTI”) calendar month average (“CMA”) price and sell the crude oil barrels using the WTI CMA price plus the Argus CMA Differential Roll Component (“CMA Differential Roll”) per NGL’s contracts. To eliminate the volatility of the CMA Differential Roll, NGL entered into derivative instrument positions in January 2021 to secure a margin of approximately $0.20 per barrel on 1.5 million barrels per month from May 2021 through December 2023. Due to the nature of these positions, the cash flow and earnings recognized on a GAAP basis will differ from period to period depending on the current crude oil price and future estimated crude oil price which are valued utilizing third-party market quoted prices. NGL is recognizing in Adjusted EBITDA the gains and losses from the derivative instrument positions entered into in January 2021 to properly align with the physical margin NGL is hedging each month through the term of this transaction. This representation aligns with management’s evaluation of the transaction.
Distributable Cash Flow is defined as Adjusted EBITDA minus maintenance capital expenditures, income tax expense, cash interest expense, preferred unit distributions and other. Maintenance capital expenditures represent capital expenditures necessary to maintain the Partnership’s operating capacity. For the CMA Differential Roll transaction, as discussed above, we have included an adjustment to Distributable Cash Flow to reflect, in the period for which they relate, the actual cash flows for the positions that settled that are not being recognized in Adjusted EBITDA. Distributable Cash Flow is a performance metric used by senior management to compare cash flows generated by the Partnership (excluding growth capital expenditures and prior to the establishment of any retained cash reserves by the Board of Directors) to the cash distributions expected to be paid to unitholders. Using this metric, management can quickly compute the coverage ratio of estimated cash flows to planned cash distributions. This financial measure also is important to investors as an indicator of whether the Partnership is generating cash flow at a level that can sustain, or support an increase in, quarterly distribution rates. Actual distribution amounts are set by the Board of Directors.
Forward-Looking Statements
This press release includes “forward-looking statements.” All statements other than statements of historical facts included or incorporated herein may constitute forward-looking statements. Actual results could vary significantly from those expressed or implied in such statements and are subject to a number of risks and uncertainties. While NGL believes such forward-looking statements are reasonable, NGL cannot assure they will prove to be correct. The forward-looking statements involve risks and uncertainties that affect operations, financial performance, and other factors as discussed in filings with the Securities and Exchange Commission. Other factors that could impact any forward-looking statements are those risks described in NGL’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other public filings. You are urged to carefully review and consider the cautionary statements and other disclosures made in those filings, specifically those under the heading “Risk Factors.” NGL undertakes no obligation to publicly update or revise any forward-looking statements except as required by law.
NGL provides Adjusted EBITDA guidance that does not include certain charges and costs, which in future periods are generally expected to be similar to the kinds of charges and costs excluded from Adjusted EBITDA in prior periods, such as income taxes, interest and other non-operating items, depreciation and amortization, net unrealized gains and losses on derivatives, lower of cost or net realizable value adjustments, gains and losses on disposal or impairment of assets, gains and losses on early extinguishment of liabilities, equity-based compensation expense, acquisition expense, revaluation of liabilities and items that are unusual in nature or infrequently occurring. The exclusion of these charges and costs in future periods will have a significant impact on the Partnership’s Adjusted EBITDA, and the Partnership is not able to provide a reconciliation of its Adjusted EBITDA guidance to net income (loss) without unreasonable efforts due to the uncertainty and variability of the nature and amount of these future charges and costs and the Partnership believes that such reconciliation, if possible, would imply a degree of precision that would be potentially confusing or misleading to investors.
About NGL Energy Partners LP
NGL Energy Partners LP, a Delaware limited partnership, is a diversified midstream energy company that transports, stores, markets and provides other logistics services for crude oil, natural gas liquids and other products and transports, treats and disposes of produced water generated as part of the oil and natural gas production process.
For further information, visit the Partnership’s website at www.nglenergypartners.com.
____________________
1 See the “Non-GAAP Financial Measures” section of this release for the definition of Adjusted EBITDA and a discussion of this non-GAAP financial measure.
2 See the “Forward-Looking Statements” section of this release for more information.
NGL ENERGY PARTNERS LP AND SUBSIDIARIES Unaudited Condensed Consolidated Balance Sheets (in Thousands, except unit amounts) |
|||||||||
|
June 30, 2021 |
|
March 31, 2021 |
||||||
ASSETS |
|
|
|
||||||
CURRENT ASSETS: |
|
|
|
||||||
Cash and cash equivalents |
$ |
2,471 |
|
|
|
$ |
4,829 |
|
|
Accounts receivable-trade, net of allowance for expected credit losses of $2,154 and $2,192, respectively |
844,072 |
|
|
|
725,943 |
|
|
||
Accounts receivable-affiliates |
8,775 |
|
|
|
9,435 |
|
|
||
Inventories |
246,181 |
|
|
|
158,467 |
|
|
||
Prepaid expenses and other current assets |
106,418 |
|
|
|
109,164 |
|
|
||
Total current assets |
1,207,917 |
|
|
|
1,007,838 |
|
|
||
PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation of $804,971 and $776,279, respectively |
2,548,552 |
|
|
|
2,706,853 |
|
|
||
GOODWILL |
744,439 |
|
|
|
744,439 |
|
|
||
INTANGIBLE ASSETS, net of accumulated amortization of $509,622 and $517,518, respectively |
1,187,070 |
|
|
|
1,262,613 |
|
|
||
INVESTMENTS IN UNCONSOLIDATED ENTITIES |
21,425 |
|
|
|
22,719 |
|
|
||
OPERATING LEASE RIGHT-OF-USE ASSETS |
143,365 |
|
|
|
152,146 |
|
|
||
OTHER NONCURRENT ASSETS |
54,722 |
|
|
|
50,733 |
|
|
||
Total assets |
$ |
5,907,490 |
|
|
|
$ |
5,947,341 |
|
|
LIABILITIES AND EQUITY |
|
|
|
||||||
CURRENT LIABILITIES: |
|
|
|
||||||
Accounts payable-trade |
$ |
763,220 |
|
|
|
$ |
679,868 |
|
|
Accounts payable-affiliates |
101 |
|
|
|
119 |
|
|
||
Accrued expenses and other payables |
182,230 |
|
|
|
170,400 |
|
|
||
Advance payments received from customers |
16,408 |
|
|
|
11,163 |
|
|
||
Current maturities of long-term debt |
2,230 |
|
|
|
2,183 |
|
|
||
Operating lease obligations |
45,864 |
|
|
|
47,070 |
|
|
||
Total current liabilities |
1,010,053 |
|
|
|
910,803 |
|
|
||
LONG-TERM DEBT, net of debt issuance costs of $52,385 and $55,555, respectively, and current maturities |
3,370,908 |
|
|
|
3,319,030 |
|
|
||
OPERATING LEASE OBLIGATIONS |
96,910 |
|
|
|
103,637 |
|
|
||
OTHER NONCURRENT LIABILITIES |
115,438 |
|
|
|
114,615 |
|
|
||
|
|
|
|
||||||
CLASS D 9.00% PREFERRED UNITS, 600,000 and 600,000 preferred units issued and outstanding, respectively |
551,097 |
|
|
|
551,097 |
|
|
||
|
|
|
|
||||||
EQUITY: |
|
|
|
||||||
General partner, representing a 0.1% interest, 129,724 and 129,724 notional units, respectively |
(52,348 |
) |
|
|
(52,189 |
) |
|
||
Limited partners, representing a 99.9% interest, 129,593,939 and 129,593,939 common units issued and outstanding, respectively |
448,963 |
|
|
|
582,784 |
|
|
||
Class B preferred limited partners, 12,585,642 and 12,585,642 preferred units issued and outstanding, respectively |
305,468 |
|
|
|
305,468 |
|
|
||
Class C preferred limited partners, 1,800,000 and 1,800,000 preferred units issued and outstanding, respectively |
42,891 |
|
|
|
42,891 |
|
|
||
Accumulated other comprehensive loss |
(258 |
) |
|
|
(266 |
) |
|
||
Noncontrolling interests |
18,368 |
|
|
|
69,471 |
|
|
||
Total equity |
763,084 |
|
|
|
948,159 |
|
|
||
Total liabilities and equity |
$ |
5,907,490 |
|
|
|
$ |
5,947,341 |
|
|
NGL ENERGY PARTNERS LP AND SUBSIDIARIES Unaudited Condensed Consolidated Statements of Operations (in Thousands, except unit and per unit amounts) |
||||||||||
|
|
Three Months Ended June 30, |
||||||||
|
|
2021 |
|
2020 |
||||||
REVENUES: |
|
|
|
|
||||||
Water Solutions |
|
$ |
130,226 |
|
|
|
$ |
88,065 |
|
|
Crude Oil Logistics |
|
553,624 |
|
|
|
276,039 |
|
|
||
Liquids Logistics |
|
804,805 |
|
|
|
479,998 |
|
|
||
Other |
|
— |
|
|
|
313 |
|
|
||
Total Revenues |
|
1,488,655 |
|
|
|
844,415 |
|
|
||
COST OF SALES: |
|
|
|
|
||||||
Water Solutions |
|
10,338 |
|
|
|
4,700 |
|
|
||
Crude Oil Logistics |
|
537,257 |
|
|
|
217,557 |
|
|
||
Liquids Logistics |
|
777,198 |
|
|
|
454,336 |
|
|
||
Other |
|
— |
|
|
|
454 |
|
|
||
Total Cost of Sales |
|
1,324,793 |
|
|
|
677,047 |
|
|
||
OPERATING COSTS AND EXPENSES: |
|
|
|
|
||||||
Operating |
|
65,784 |
|
|
|
64,987 |
|
|
||
General and administrative |
|
15,774 |
|
|
|
17,158 |
|
|
||
Depreciation and amortization |
|
84,102 |
|
|
|
83,986 |
|
|
||
Loss on disposal or impairment of assets, net |
|
67,536 |
|
|
|
12,022 |
|
|
||
Operating Loss |
|
(69,334 |
) |
|
|
(10,785 |
) |
|
||
OTHER INCOME (EXPENSE): |
|
|
|
|
||||||
Equity in earnings of unconsolidated entities |
|
212 |
|
|
|
289 |
|
|
||
Interest expense |
|
(67,130 |
) |
|
|
(43,961 |
) |
|
||
Gain on early extinguishment of liabilities, net |
|
51 |
|
|
|
19,355 |
|
|
||
Other income, net |
|
1,249 |
|
|
|
1,035 |
|
|
||
Loss From Continuing Operations Before Income Taxes |
|
(134,952 |
) |
|
|
(34,067 |
) |
|
||
INCOME TAX BENEFIT |
|
450 |
|
|
|
301 |
|
|
||
Loss From Continuing Operations |
|
(134,502 |
) |
|
|
(33,766 |
) |
|
||
Loss From Discontinued Operations, net of Tax |
|
— |
|
|
|
(1,486 |
) |
|
||
Net Loss |
|
(134,502 |
) |
|
|
(35,252 |
) |
|
||
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS |
|
(438 |
) |
|
|
(51 |
) |
|
||
NET LOSS ATTRIBUTABLE TO NGL ENERGY PARTNERS LP |
|
$ |
(134,940 |
) |
|
|
$ |
(35,303 |
) |
|
NET LOSS FROM CONTINUING OPERATIONS ALLOCATED TO COMMON UNITHOLDERS |
|
$ |
(159,332 |
) |
|
|
$ |
(55,815 |
) |
|
NET LOSS FROM DISCONTINUED OPERATIONS ALLOCATED TO COMMON UNITHOLDERS |
|
$ |
— |
|
|
|
$ |
(1,485 |
) |
|
NET LOSS ALLOCATED TO COMMON UNITHOLDERS |
|
$ |
(159,332 |
) |
|
|
$ |
(57,300 |
) |
|
BASIC LOSS PER COMMON UNIT |
|
|
|
|
||||||
Loss From Continuing Operations |
|
$ |
(1.23 |
) |
|
|
$ |
(0.43 |
) |
|
Loss From Discontinued Operations, net of Tax |
|
$ |
— |
|
|
|
$ |
(0.01 |
) |
|
Net Loss |
|
$ |
(1.23 |
) |
|
|
$ |
(0.44 |
) |
|
DILUTED LOSS PER COMMON UNIT |
|
|
|
|
||||||
Loss From Continuing Operations |
|
$ |
(1.23 |
) |
|
|
$ |
(0.43 |
) |
|
Loss From Discontinued Operations, net of Tax |
|
$ |
— |
|
|
|
$ |
(0.01 |
) |
|
Net Loss |
|
$ |
(1.23 |
) |
|
|
$ |
(0.44 |
) |
|
BASIC WEIGHTED AVERAGE COMMON UNITS OUTSTANDING |
|
129,593,939 |
|
|
|
128,771,715 |
|
|
||
DILUTED WEIGHTED AVERAGE COMMON UNITS OUTSTANDING |
|
129,593,939 |
|
|
|
128,771,715 |
|
|
||
EBITDA, ADJUSTED EBITDA AND DISTRIBUTABLE CASH FLOW RECONCILIATION (Unaudited) The following table reconciles NGL’s net loss to NGL’s EBITDA, Adjusted EBITDA and Distributable Cash Flow: |
||||||||||
|
|
Three Months Ended June 30, |
||||||||
|
|
2021 |
|
2020 |
||||||
|
|
(in thousands) |
||||||||
Net loss |
|
$ |
(134,502 |
) |
|
|
$ |
(35,252 |
) |
|
Less: Net income attributable to noncontrolling interests |
|
(438 |
) |
|
|
(51 |
) |
|
||
Net loss attributable to NGL Energy Partners LP |
|
(134,940 |
) |
|
|
(35,303 |
) |
|
||
Interest expense |
|
67,130 |
|
|
|
44,066 |
|
|
||
Income tax benefit |
|
(450 |
) |
|
|
(301 |
) |
|
||
Depreciation and amortization |
|
83,357 |
|
|
|
83,202 |
|
|
||
EBITDA |
|
15,097 |
|
|
|
91,664 |
|
|
||
Net unrealized (gains) losses on derivatives |
|
(16,264 |
) |
|
|
26,671 |
|
|
||
CMA Differential Roll net losses (gains) (1) |
|
24,310 |
|
|
|
— |
|
|
||
Inventory valuation adjustment (2) |
|
1,218 |
|
|
|
3,820 |
|
|
||
Lower of cost or net realizable value adjustments |
|
(3,806 |
) |
|
|
(32,003 |
) |
|
||
Loss on disposal or impairment of assets, net |
|
67,538 |
|
|
|
13,084 |
|
|
||
Gain on early extinguishment of liabilities, net |
|
(87 |
) |
|
|
(19,355 |
) |
|
||
Equity-based compensation expense (3) |
|
960 |
|
|
|
2,302 |
|
|
||
Acquisition expense (4) |
|
67 |
|
|
|
157 |
|
|
||
Other (5) |
|
2,068 |
|
|
|
4,348 |
|
|
||
Adjusted EBITDA |
|
$ |
91,101 |
|
|
|
$ |
90,688 |
|
|
Adjusted EBITDA - Discontinued Operations (6) |
|
$ |
— |
|
|
|
$ |
(294 |
) |
|
Adjusted EBITDA - Continuing Operations |
|
$ |
91,101 |
|
|
|
$ |
90,982 |
|
|
Less: Cash interest expense (7) |
|
63,359 |
|
|
|
40,399 |
|
|
||
Less: Income tax benefit |
|
(450 |
) |
|
|
(301 |
) |
|
||
Less: Maintenance capital expenditures |
|
7,745 |
|
|
|
9,168 |
|
|
||
Less: CMA Differential Roll (8) |
|
23,932 |
|
|
|
— |
|
|
||
Less: Preferred unit distributions paid |
|
— |
|
|
|
15,030 |
|
|
||
Distributable Cash Flow - Continuing Operations |
|
$ |
(3,485 |
) |
|
|
$ |
26,686 |
|
|
____________________
| (1) | Adjustment to align, within Adjusted EBITDA, the net gains and losses of the Partnership’s CMA Differential Roll derivative instruments positions with the physical margin being hedged. See “Non-GAAP Financial Measures” section above for a further discussion. |
||
| (2) | Amount reflects the difference between the market value of the inventory at the balance sheet date and its cost, adjusted for the impact of seasonal market movements related to our base inventory and the related hedge. See “Non-GAAP Financial Measures” section above for a further discussion. |
||
| (3) | Equity-based compensation expense in the table above may differ from equity-based compensation expense reported in the footnotes to our unaudited condensed consolidated financial statements included in the Partnership’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2021. Amounts reported in the table above include expense accruals for bonuses expected to be paid in common units, whereas the amounts reported in the footnotes to our unaudited condensed consolidated financial statements only include expenses associated with equity-based awards that have been formally granted. |
||
| (4) | Amounts represent expenses we incurred related to legal and advisory costs associated with acquisitions. |
||
| (5) | Amounts for the three months ended June 30, 2021 and 2020 represent non-cash operating expenses related to our Grand Mesa Pipeline, unrealized losses on marketable securities and accretion expense for asset retirement obligations. |
||
| (6) | Amounts include the operations of TPSL, Gas Blending and Mid-Con. |
||
| (7) | Amounts represent interest expense payable in cash for the period presented, excluding changes in the accrued interest balance. |
||
| (8) | Amount represents the cash portion of the adjustments of the Partnership’s CMA Differential Roll derivative instrument positions, as discussed above, that settled during the period. |
||
NGL Energy Partners LP
Trey Karlovich, 918-481-1119
Chief Financial Officer and Executive Vice President
This email address is being protected from spambots. You need JavaScript enabled to view it.
or
Linda Bridges, 918-481-1119
Senior Vice President - Finance and Treasurer
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DALLAS--(BUSINESS WIRE)--Kosmos Energy Ltd. (“Kosmos” or the “Company”) (NYSE: KOS) announced today its financial and operating results for the second quarter of 2021. For the quarter, the Company generated a net loss of $57 million, or $0.14 per diluted share. When adjusted for certain items that impact the comparability of results, the Company generated an adjusted net loss(1) of $10 million, or $0.03 per diluted share for the second quarter of 2021.
SECOND QUARTER 2021 HIGHLIGHTS
Commenting on the Company’s second quarter 2021 performance, Chairman and Chief Executive Officer Andrew G. Inglis said: “Kosmos delivered strong free cash flow in the second quarter. Through further debt reduction and EBITDAX growth, we expect leverage to continue to reduce through year-end 2021 and into 2022.
With strong cash generation, the successful RBL extension and the recently completed GTA FPSO transaction, Kosmos’ financial position has materially improved and we remain well positioned to execute our remaining financing plans later this year.
Operationally, we remain on track to grow production towards our year-end exit target of 60,000 boepd through our active infill drilling program.
With cash generative assets, a solid financial position and rising production, Kosmos is well positioned to generate significant shareholder value through the second half of the year and into 2022.”
FINANCIAL UPDATE
In May 2021, Kosmos successfully completed an amendment and restatement of the RBL facility in conjunction with the spring redetermination. The amendment extended the facility by two years, with a final maturity of March 2027 and reduced the facility size to $1.25 billion. The borrowing base was finalized, with a more conservative price deck, at approximately $1.24 billion with $1.0 billion outstanding as of June 30, 2021.
The base business net capital expenditure for the second quarter of 2021 was approximately $68 million, in-line with Company guidance. Net capital expenditure related to Mauritania and Senegal in the second quarter was $83 million.
Kosmos exited the second quarter of 2021 with $2.1 billion of net debt(1) and available liquidity of approximately $0.8 billion. The decrease in net debt in the quarter was primarily driven by increased cash generation from higher sales volumes and improving realized oil prices.
OPERATIONAL UPDATE
Production
Total net production(2) in the second quarter of 2021 averaged approximately 51,600 boepd.
Ghana
Production in Ghana averaged approximately 21,900 barrels of oil per day (bopd) net in the second quarter of 2021. As forecast, Kosmos lifted three cargos from Ghana during the second quarter.
At Jubilee, production averaged approximately 70,900 bopd gross during the quarter. At TEN, production averaged approximately 35,000 bopd gross for the second quarter.
The first two wells in our four-well campaign were drilled in the quarter with the first Jubilee producer well (J-56P) completed and now online with Jubilee currently producing around 80,000 bopd. The Jubilee injector well (J-55W) is expected online later this quarter, which should further increase production.
The rig is then scheduled to drill and complete a TEN gas injector well and a second Jubilee producer well later in the year with the Jubilee producer well expected online around the end of the year.
The reliability of the Ghana production facilities continues to improve, with uptime of the Jubilee and TEN FPSOs averaging about 98% year-to-date. Consistently high levels of water injection (>200,000 barrels/day) and gas offtake from the Government of Ghana (>110 mmscf/day) are helping to optimize reservoir performance at Jubilee, which is expected to support long-term production levels.
U.S. Gulf of Mexico
Production in the U.S. Gulf of Mexico averaged approximately 20,400 boepd net (82% oil) during the second quarter.
In April, the Kodiak-3 infill well was brought online with one of two zones intermittently producing. The Company is currently working with partners to evaluate the best intervention options to enhance production from the well.
In late-July, Talos Energy (the operator) announced the successful completion and start-up of the Tornado-5 infill well. The well was expected to add around 8,000-10,000 boepd gross to field production and is performing at the top end of expectations. As the operator reported, injection rates in the structurally downdip Tornado injector well were increased, now injecting at a rate of over 30,000 barrels of water per day into the producing B-6 formation, providing pressure support to enhance overall production and recovery efficiency.
In July, the Company commenced drilling the Zora infrastructure-led exploration prospect located in Desoto Canyon Block 266 (37.5% working interest). The well encountered reservoir quality sands however did not find hydrocarbons. The well is currently being plugged and abandoned and the well results will be integrated into the ongoing evaluation of the surrounding area. The company expects to record approximately $11 million of exploration expense in the third quarter related to the well.
During the first half of the year, Kosmos worked with its partners on an appraisal plan for Winterfell, which is expected to begin with a well in the third quarter. The appraisal well is planned to evaluate the adjacent fault block to the northwest of the original discovery, which has the same seismic signature as Winterfell, with an exploration tail into a deeper horizon. The Winterfell discovery is located within tie back distance to several existing and planned host facilities.
Equatorial Guinea
Production in Equatorial Guinea averaged approximately 29,100 bopd gross and 9,400 bopd net in the second quarter of 2021. As forecast, Kosmos lifted 1.5 cargos from Equatorial Guinea during the quarter.
The Okume upgrade project is expected to be completed in the fourth quarter, contributing additional power, water injection and gas lift capacity necessary for further de-bottlenecking of the facilities and additional electrical submersible pumps (ESPs). In April 2021, one ESP conversion was completed with additional ESP conversions planned following completion of the Okume upgrade project.
The first of three infill wells in the Okume Complex was spudded in June 2021 with positive initial results. The rig will now move to the second well location and hookup has commenced for the first well. All three wells are expected online in the fourth quarter of 2021.
At Ceiba, a major infrastructure integrity project has been completed, which is expected to improve reliability and allow greater flexibility for gas lift to additional wells.
Mauritania & Senegal
The Greater Tortue Ahmeyim liquified natural gas (LNG) project has made steady progress year-to-date with the following milestones achieved in the second quarter and post quarter-end.
As reported today in a separate press release, Kosmos announced that the GTA FPSO sale and lease back transaction has been successfully completed. Following the closing of this transaction, the Company will now work to complete the re-financing of the National Oil Company loans.
(1) A Non-GAAP measure, see attached reconciliation of non-GAAP measure
(2) Production means net entitlement volumes. In Ghana and Equatorial Guinea, this means those volumes net to Kosmos' working interest or participating interest and net of royalty or production sharing contract effect. In the Gulf of Mexico, this means those volumes net to Kosmos' working interest and net of royalty.
Conference Call and Webcast Information
Kosmos will host a conference call and webcast to discuss second quarter 2021 financial and operating results today at 10:00 a.m. Central time (11:00 a.m. Eastern time). The live webcast of the event can be accessed on the Investors page of Kosmos’ website at http://investors.kosmosenergy.com/investor-events. The dial-in telephone number for the call is +1-877-407-3982. Callers in the United Kingdom should call 0800 756 3429. Callers outside the United States should dial 1-201-493-6780. A replay of the webcast will be available on the Investors page of Kosmos’ website for approximately 90 days following the event.
About Kosmos Energy
Kosmos is a full-cycle deepwater independent oil and gas exploration and production company focused along the Atlantic Margins. Our key assets include production offshore Ghana, Equatorial Guinea and the U.S. Gulf of Mexico, as well as a world-class gas development offshore Mauritania and Senegal. We also maintain a sustainable proven basin exploration program in Equatorial Guinea, Ghana and the U.S. Gulf of Mexico. Kosmos is listed on the New York Stock Exchange and London Stock Exchange and is traded under the ticker symbol KOS. As an ethical and transparent company, Kosmos is committed to doing things the right way. The Company’s Business Principles articulate our commitment to transparency, ethics, human rights, safety and the environment. Read more about this commitment in the Kosmos Sustainability Report. For additional information, visit www.kosmosenergy.com.
Non-GAAP Financial Measures
EBITDAX, Adjusted net income (loss), Adjusted net income (loss) per share, free cash flow, and net debt are supplemental non-GAAP financial measures used by management and external users of the Company's consolidated financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines EBITDAX as Net income (loss) plus (i) exploration expense, (ii) depletion, depreciation and amortization expense, (iii) equity based compensation expense, (iv) unrealized (gain) loss on commodity derivatives (realized losses are deducted and realized gains are added back), (v) (gain) loss on sale of oil and gas properties, (vi) interest (income) expense, (vii) income taxes, (viii) loss on extinguishment of debt, (ix) doubtful accounts expense and (x) similar other material items which management believes affect the comparability of operating results. The Company defines Adjusted net income (loss) as Net income (loss) adjusted for certain items that impact the comparability of results. The Company defines free cash flow as net cash provided by operating activities less Oil and gas assets, Other property, and certain other items that may affect the comparability of results. The Company defines net debt as the sum of notes outstanding issued at par and borrowings on the RBL Facility, Corporate revolver, and GoM Term Loan less cash and cash equivalents and restricted cash.
We believe that EBITDAX, Adjusted net income (loss), Adjusted net income (loss) per share, free cash flow, Net debt and other similar measures are useful to investors because they are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the oil and gas sector and will provide investors with a useful tool for assessing the comparability between periods, among securities analysts, as well as company by company. EBITDAX, Adjusted net income (loss), Adjusted net income (loss) per share, free cash flow, and net debt as presented by us may not be comparable to similarly titled measures of other companies.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Kosmos expects, believes or anticipates will or may occur in the future are forward-looking statements. Kosmos’ estimates and forward-looking statements are mainly based on its current expectations and estimates of future events and trends, which affect or may affect its businesses and operations. Although Kosmos believes that these estimates and forward-looking statements are based upon reasonable assumptions, they are subject to several risks and uncertainties and are made in light of information currently available to Kosmos. When used in this press release, the words “anticipate,” “believe,” “intend,” “expect,” “plan,” “will” or other similar words are intended to identify forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Kosmos (including, but not limited to, the impact of the COVID-19 pandemic), which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. Further information on such assumptions, risks and uncertainties is available in Kosmos’ Securities and Exchange Commission (“SEC”) filings. Kosmos undertakes no obligation and does not intend to update or correct these forward-looking statements to reflect events or circumstances occurring after the date of this press release, except as required by applicable law. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement.
Kosmos Energy Ltd. Consolidated Statements of Operations (In thousands, except per share amounts, unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
June 30, |
|
June 30, |
||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Revenues and other income: |
|
|
|
|
|
|
|
|
||||||||
Oil and gas revenue |
|
$ |
384,045 |
|
|
$ |
127,314 |
|
|
$ |
560,519 |
|
|
$ |
305,094 |
|
Gain on sale of assets |
|
— |
|
|
— |
|
|
26 |
|
|
— |
|
||||
Other income, net |
|
74 |
|
|
— |
|
|
144 |
|
|
1 |
|
||||
Total revenues and other income |
|
384,119 |
|
|
127,314 |
|
|
560,689 |
|
|
305,095 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Costs and expenses: |
|
|
|
|
|
|
|
|
||||||||
Oil and gas production |
|
115,803 |
|
|
88,747 |
|
|
161,555 |
|
|
150,350 |
|
||||
Facilities insurance modifications, net |
|
1,270 |
|
|
52 |
|
|
1,941 |
|
|
8,090 |
|
||||
Exploration expenses |
|
9,289 |
|
|
15,711 |
|
|
17,470 |
|
|
60,316 |
|
||||
General and administrative |
|
21,728 |
|
|
18,186 |
|
|
44,169 |
|
|
39,097 |
|
||||
Depletion, depreciation and amortization |
|
151,161 |
|
|
121,857 |
|
|
227,702 |
|
|
215,159 |
|
||||
Impairment of long-lived assets |
|
— |
|
|
— |
|
|
— |
|
|
150,820 |
|
||||
Interest and other financing costs, net |
|
39,326 |
|
|
28,274 |
|
|
63,854 |
|
|
56,109 |
|
||||
Derivatives, net |
|
111,921 |
|
|
100,075 |
|
|
214,382 |
|
|
(35,963 |
) |
||||
Other expenses, net |
|
(2,659 |
) |
|
1,228 |
|
|
809 |
|
|
25,157 |
|
||||
Total costs and expenses |
|
447,839 |
|
|
374,130 |
|
|
731,882 |
|
|
669,135 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Loss before income taxes |
|
(63,720 |
) |
|
(246,816 |
) |
|
(171,193 |
) |
|
(364,040 |
) |
||||
Income tax expense (benefit) |
|
(6,533 |
) |
|
(47,425 |
) |
|
(23,238 |
) |
|
18,118 |
|
||||
Net loss |
|
$ |
(57,187 |
) |
|
$ |
(199,391 |
) |
|
$ |
(147,955 |
) |
|
$ |
(382,158 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Net loss per share: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
(0.14 |
) |
|
$ |
(0.49 |
) |
|
$ |
(0.36 |
) |
|
$ |
(0.94 |
) |
Diluted |
|
$ |
(0.14 |
) |
|
$ |
(0.49 |
) |
|
$ |
(0.36 |
) |
|
$ |
(0.94 |
) |
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Weighted average number of shares used to compute net loss per share: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
408,131 |
|
|
405,195 |
|
|
409,828 |
|
|
404,990 |
|
||||
Diluted |
|
408,131 |
|
|
405,195 |
|
|
409,828 |
|
|
404,990 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Dividends declared per common share |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
0.0452 |
|
Kosmos Energy Ltd. Condensed Consolidated Balance Sheets (In thousands, unaudited) |
||||||||
|
|
June 30, |
|
December 31, |
||||
|
|
2021 |
|
2020 |
||||
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
149,550 |
|
|
$ |
149,027 |
|
Receivables, net |
|
89,423 |
|
|
78,813 |
|
||
Other current assets |
|
204,493 |
|
|
172,451 |
|
||
Total current assets |
|
443,466 |
|
|
400,291 |
|
||
|
|
|
|
|
||||
Property and equipment, net |
|
3,374,643 |
|
|
3,320,913 |
|
||
Other non-current assets |
|
185,163 |
|
|
146,389 |
|
||
Total assets |
|
$ |
4,003,272 |
|
|
$ |
3,867,593 |
|
|
|
|
|
|
||||
Liabilities and stockholders’ equity |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
272,588 |
|
|
$ |
221,430 |
|
Accrued liabilities |
|
222,946 |
|
|
203,260 |
|
||
Current maturities of long-term debt |
|
22,500 |
|
|
7,500 |
|
||
Other current liabilities |
|
127,255 |
|
|
28,009 |
|
||
Total current liabilities |
|
645,289 |
|
|
460,199 |
|
||
|
|
|
|
|
||||
Long-term liabilities: |
|
|
|
|
||||
Long-term debt, net |
|
2,223,912 |
|
|
2,103,931 |
|
||
Deferred tax liabilities |
|
504,135 |
|
|
573,619 |
|
||
Other non-current liabilities |
|
322,694 |
|
|
289,690 |
|
||
Total long-term liabilities |
|
3,050,741 |
|
|
2,967,240 |
|
||
|
|
|
|
|
||||
Total stockholders’ equity |
|
307,242 |
|
|
440,154 |
|
||
Total liabilities and stockholders’ equity |
|
$ |
4,003,272 |
|
|
$ |
3,867,593 |
|
Kosmos Energy Ltd. Condensed Consolidated Statements of Cash Flow (In thousands, unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
June 30, |
|
June 30, |
||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Operating activities: |
|
|
|
|
|
|
|
|
||||||||
Net loss |
|
$ |
(57,187 |
) |
|
$ |
(199,391 |
) |
|
$ |
(147,955 |
) |
|
$ |
(382,158 |
) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
|
|
||||||||
Depletion, depreciation and amortization (including deferred financing costs) |
|
153,781 |
|
|
124,049 |
|
|
232,893 |
|
|
219,634 |
|
||||
Deferred income taxes |
|
(47,406 |
) |
|
(48,527 |
) |
|
(69,485 |
) |
|
23,650 |
|
||||
Unsuccessful well costs and leasehold impairments |
|
3,396 |
|
|
1,627 |
|
|
4,865 |
|
|
20,855 |
|
||||
Impairment of long-lived assets |
|
— |
|
|
— |
|
|
— |
|
|
150,820 |
|
||||
Change in fair value of derivatives |
|
117,001 |
|
|
104,707 |
|
|
223,159 |
|
|
(31,615 |
) |
||||
Cash settlements on derivatives, net(1) |
|
(63,617 |
) |
|
25,798 |
|
|
(96,615 |
) |
|
34,814 |
|
||||
Equity-based compensation |
|
7,608 |
|
|
8,347 |
|
|
15,889 |
|
|
17,693 |
|
||||
Gain on sale of assets |
|
— |
|
|
— |
|
|
(26 |
) |
|
— |
|
||||
Loss on extinguishment of debt |
|
15,223 |
|
|
2,215 |
|
|
15,223 |
|
|
2,215 |
|
||||
Other |
|
224 |
|
|
2,555 |
|
|
(666 |
) |
|
6,529 |
|
||||
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
||||||||
Net changes in working capital |
|
159,858 |
|
|
(67,253 |
) |
|
64,973 |
|
|
(125,273 |
) |
||||
Net cash provided by (used in) operating activities |
|
288,881 |
|
|
(45,873 |
) |
|
242,255 |
|
|
(62,836 |
) |
||||
|
|
|
|
|
|
|
|
|
||||||||
Investing activities |
|
|
|
|
|
|
|
|
||||||||
Oil and gas assets |
|
(161,951 |
) |
|
(51,526 |
) |
|
(290,399 |
) |
|
(135,242 |
) |
||||
Other property |
|
214 |
|
|
1 |
|
|
(140 |
) |
|
(1,536 |
) |
||||
Proceeds on sale of assets |
|
1,301 |
|
|
— |
|
|
1,932 |
|
|
1,713 |
|
||||
Notes receivable from partners |
|
(13,765 |
) |
|
(18,379 |
) |
|
(36,181 |
) |
|
(42,362 |
) |
||||
Net cash used in investing activities |
|
(174,201 |
) |
|
(69,904 |
) |
|
(324,788 |
) |
|
(177,427 |
) |
||||
|
|
|
|
|
|
|
|
|
||||||||
Financing activities: |
|
|
|
|
|
|
|
|
||||||||
Borrowings on long-term debt |
|
— |
|
|
100,000 |
|
|
100,000 |
|
|
150,000 |
|
||||
Payments on long-term debt |
|
(50,000 |
) |
|
— |
|
|
(400,000 |
) |
|
— |
|
||||
Advances under production prepayment agreement |
|
— |
|
|
50,000 |
|
|
— |
|
|
50,000 |
|
||||
Net proceeds from issuance of senior notes |
|
— |
|
|
— |
|
|
444,375 |
|
|
— |
|
||||
Redemption of senior secured notes |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||
Purchase of treasury stock / tax withholdings |
|
(19 |
) |
|
— |
|
|
(1,037 |
) |
|
(4,947 |
) |
||||
Dividends |
|
(14 |
) |
|
(25 |
) |
|
(444 |
) |
|
(19,181 |
) |
||||
Deferred financing costs |
|
(16,028 |
) |
|
(136 |
) |
|
(17,062 |
) |
|
(136 |
) |
||||
Net cash provided by (used in) financing activities |
|
(66,061 |
) |
|
149,839 |
|
|
125,832 |
|
|
175,736 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
48,619 |
|
|
34,062 |
|
|
43,299 |
|
|
(64,527 |
) |
||||
Cash, cash equivalents and restricted cash at beginning of period |
|
144,444 |
|
|
130,757 |
|
|
149,764 |
|
|
229,346 |
|
||||
Cash, cash equivalents and restricted cash at end of period |
|
$ |
193,063 |
|
|
$ |
164,819 |
|
|
$ |
193,063 |
|
|
$ |
164,819 |
|
| ____________________ | |
(1) |
Cash settlements on commodity hedges were $(58.8) million and $30.4 million for the three months ended June 30, 2021 and 2020, respectively, and $(87.4) million and $42.4 million for the six months ended June 30, 2021 and 2020, respectively. |
Kosmos Energy Ltd. EBITDAX (In thousands, unaudited) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Three months ended |
|
Six months ended |
|
Twelve Months
|
|
||||||||||||||
|
June 30, 2021 |
|
June 30, 2020 |
|
June 30, 2021 |
|
June 30, 2020 |
|
June 30, 2021 |
|
||||||||||
Net loss |
$ |
(57,187 |
) |
|
$ |
(199,391 |
) |
|
$ |
(147,955 |
) |
|
$ |
(382,158 |
) |
|
$ |
(177,383 |
) |
|
Exploration expenses |
9,289 |
|
|
15,711 |
|
|
17,470 |
|
|
60,316 |
|
|
41,770 |
|
|
|||||
Facilities insurance modifications, net |
1,270 |
|
|
52 |
|
|
1,941 |
|
|
8,090 |
|
|
7,012 |
|
|
|||||
Depletion, depreciation and amortization |
151,161 |
|
|
121,857 |
|
|
227,702 |
|
|
215,159 |
|
|
498,405 |
|
|
|||||
Impairment of long-lived assets |
— |
|
|
— |
|
|
— |
|
|
150,820 |
|
|
3,139 |
|
|
|||||
Equity-based compensation |
7,608 |
|
|
8,347 |
|
|
15,889 |
|
|
17,693 |
|
|
30,902 |
|
|
|||||
Derivatives, net |
111,921 |
|
|
100,075 |
|
|
214,382 |
|
|
(35,963 |
) |
|
267,525 |
|
|
|||||
Cash settlements on commodity derivatives |
(58,823 |
) |
|
30,430 |
|
|
(87,446 |
) |
|
42,449 |
|
|
(132,609 |
) |
|
|||||
Restructuring and other |
233 |
|
|
(222 |
) |
|
1,419 |
|
|
17,801 |
|
|
12,785 |
|
|
|||||
Other, net |
(2,892 |
) |
|
839 |
|
|
(610 |
) |
|
3,930 |
|
|
5,675 |
|
|
|||||
Gain on sale of assets |
— |
|
|
— |
|
|
(26 |
) |
|
— |
|
|
(92,189 |
) |
|
|||||
Interest and other financing costs, net |
39,326 |
|
|
28,274 |
|
|
63,854 |
|
|
56,109 |
|
|
117,539 |
|
|
|||||
Income tax expense (benefit) |
(6,533 |
) |
|
(47,425 |
) |
|
(23,238 |
) |
|
18,118 |
|
|
(46,565 |
) |
|
|||||
EBITDAX |
195,373 |
|
|
$ |
58,547 |
|
|
$ |
283,382 |
|
|
$ |
172,364 |
|
|
$ |
536,006 |
|
|
|
Kosmos Energy Ltd. Adjusted Net Income (In thousands, except per share amounts, unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
June 30, |
|
June 30, |
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Net loss |
$ |
(57,187 |
) |
|
$ |
(199,391 |
) |
|
$ |
(147,955 |
) |
|
$ |
(382,158 |
) |
|
|
|
|
|
|
|
|
||||||||
Derivatives, net |
111,921 |
|
|
100,075 |
|
|
214,382 |
|
|
(35,963 |
) |
||||
Cash settlements on commodity derivatives |
(58,823 |
) |
|
30,430 |
|
|
(87,446 |
) |
|
42,449 |
|
||||
Gain on sale of assets |
— |
|
|
— |
|
|
(26 |
) |
|
— |
|
||||
Facilities insurance modifications, net |
1,270 |
|
|
52 |
|
|
1,941 |
|
|
8,090 |
|
||||
Impairment of long-lived assets |
— |
|
|
— |
|
|
— |
|
|
150,820 |
|
||||
Restructuring and other |
233 |
|
|
(222 |
) |
|
1,419 |
|
|
17,801 |
|
||||
Other, net |
(3,110 |
) |
|
839 |
|
|
(787 |
) |
|
3,930 |
|
||||
Loss on extinguishment of debt |
15,223 |
|
|
2,215 |
|
|
15,223 |
|
|
2,215 |
|
||||
Total selected items before tax |
66,714 |
|
|
133,389 |
|
|
144,706 |
|
|
189,342 |
|
||||
|
|
|
|
|
|
|
|
||||||||
Income tax expense (benefit) on adjustments(1) |
(20,024 |
) |
|
(29,031 |
) |
|
(40,222 |
) |
|
5,433 |
|
||||
Impact of valuation adjustments and U.S. tax law changes |
— |
|
|
— |
|
|
— |
|
|
26,001 |
|
||||
Adjusted net loss |
$ |
(10,497 |
) |
|
(95,033 |
) |
|
(43,471 |
) |
|
(161,382 |
) |
|||
|
|
|
|
|
|
|
|
||||||||
Net loss per diluted share |
$ |
(0.14 |
) |
|
$ |
(0.49 |
) |
|
$ |
(0.36 |
) |
|
$ |
(0.94 |
) |
|
|
|
|
|
|
|
|
||||||||
Derivatives, net |
0.27 |
|
|
0.25 |
|
|
0.52 |
|
|
(0.09 |
) |
||||
Cash settlements on commodity derivatives |
(0.14 |
) |
|
0.07 |
|
|
(0.21 |
) |
|
0.10 |
|
||||
Gain on sale of assets |
— |
|
|
— |
|
|
— |
|
|
— |
|
||||
Facilities insurance modifications, net |
— |
|
|
— |
|
|
— |
|
|
0.02 |
|
||||
Impairment of long-lived assets |
— |
|
|
— |
|
|
— |
|
|
0.37 |
|
||||
Restructuring and other |
— |
|
|
— |
|
|
— |
|
|
0.05 |
|
||||
Other, net |
(0.01 |
) |
|
— |
|
|
— |
|
|
0.01 |
|
||||
Loss on extinguishment of debt |
0.04 |
|
|
0.01 |
|
|
0.04 |
|
|
0.01 |
|
||||
Total selected items before tax |
0.16 |
|
|
0.33 |
|
|
0.35 |
|
|
0.47 |
|
||||
|
|
|
|
|
|
|
|
||||||||
Income tax expense (benefit) on adjustments(1) |
(0.05 |
) |
|
(0.07 |
) |
|
(0.10 |
) |
|
0.01 |
|
||||
Impact of valuation adjustments and U.S. tax law changes |
— |
|
|
— |
|
|
— |
|
|
0.06 |
|
||||
Adjusted net loss per diluted share |
$ |
(0.03 |
) |
|
$ |
(0.23 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.40 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted average number of diluted shares |
408,131 |
|
|
405,195 |
|
|
409,828 |
|
|
404,990 |
|
||||
| ____________________ | |
(1) |
Income tax expense is calculated at the statutory rate in which such item(s) reside. Statutory rates for the U.S. and Ghana/Equatorial Guinea are 21% and 35%, respectively. |
Kosmos Energy Ltd. Free Cash Flow (In thousands, unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
June 30, |
|
June 30, |
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Reconciliation of net cash provided by operating activities to free cash flow: |
|
|
|
|
|
|
|
||||||||
Net cash provided by (used in) operating activities |
$ |
288,881 |
|
|
$ |
(45,873 |
) |
|
$ |
242,255 |
|
|
$ |
(62,836 |
) |
Net cash used in investing activities - base business |
(68,845 |
) |
|
(44,892 |
) |
|
(116,728 |
) |
|
(120,686 |
) |
||||
Net cash used in investing activities - Mauritania/Senegal |
(105,356 |
) |
|
(25,012 |
) |
|
(208,060 |
) |
|
(56,741 |
) |
||||
Free cash flow |
$ |
114,680 |
|
|
$ |
(115,777 |
) |
|
$ |
(82,533 |
) |
|
$ |
(240,263 |
) |
Investor Relations
Jamie Buckland
+44 (0) 203 954 2831
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Media Relations
Thomas Golembeski
+1-214-445-9674
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Nitrogen Price Improvement Driven by Strong Demand, Favorable Energy Spreads
Low Global Grains Stocks-to-Use Ratio Supports Nitrogen Demand Strength Into 2023
Forward Energy Curves Suggest Positive Global Nitrogen Cost Curve Over Next 2 Years
DEERFIELD, Ill.--(BUSINESS WIRE)--CF Industries Holdings, Inc. (NYSE: CF), a leading global manufacturer of hydrogen and nitrogen products, today announced results for its first half and second quarter ended June 30, 2021.
Highlights
“The CF team performed well in the first half of 2021 as strong global nitrogen demand and favorable energy spreads enabled us to generate approximately $1 billion in adjusted EBITDA, nearly 25 percent higher than the first half of 2020,” said Tony Will, president and chief executive officer, CF Industries Holdings, Inc. “These dynamics continue to support global nitrogen prices at levels far above those of a year ago, positioning CF Industries well for the second half of 2021. Looking ahead, we expect positive global nitrogen industry conditions to persist into 2023, underpinned by the need to replenish global grains stocks.”
Operations Overview
The Company continues to operate safely and efficiently across its network. As of June 30, 2021, the 12-month rolling average recordable incident rate was 0.28 incidents per 200,000 work hours, which is significantly better than industry benchmarks.
Gross ammonia production for the second quarter of 2021 was approximately 2.2 million tons, and was approximately 4.7 million tons for the first half of 2021. Management expects gross ammonia production in 2021 will be at the lower end of its previous forecast, approximately 9.5 million tons. This reflects higher maintenance activity in 2021 compared to 2020, which includes activities deferred from 2020 due to the COVID-19 pandemic as well as maintenance related to the plant outages from the forced shut-downs due to natural gas availability issues in February 2021. Additionally, management intends to complete certain maintenance activities originally planned for 2022 in the second half of 2021.
First Half 2021 Financial Results Overview
For the first half of 2021, net earnings attributable to common stockholders were $397 million, or $1.83 per diluted share; EBITDA was $994 million; and adjusted EBITDA was $997 million. These results compare to the first half of 2020 net earnings attributable to common stockholders of $258 million, or $1.20 per diluted share; EBITDA of $786 million; and adjusted EBITDA of $808 million.
Net sales in the first half of 2021 were $2.64 billion compared to $2.18 billion in the first half of 2020. Average selling prices for the first half of 2021 were higher than the first half of 2020 across all segments due to strong global demand as well as decreased global supply availability as higher global energy costs drove lower global operating rates. Sales volumes in the first half of 2021 were lower than the first half of 2020 due to lower supply availability from lower production.
Cost of sales for the first half of 2021 was higher compared to the first half of 2020 due to higher natural gas costs and higher maintenance costs, partially offset by the gain the Company recognized from the net settlement of certain natural gas contracts with suppliers during February 2021 and the impact of lower sales volumes.
In the first half of 2021, the average cost of natural gas reflected in the Company’s cost of sales was $3.24 per MMBtu(4) compared to the average cost of natural gas in cost of sales of $2.20 per MMBtu in the first half of 2020.
Second Quarter 2021 Financial Results Overview
For the second quarter of 2021, net earnings attributable to common stockholders were $246 million, or $1.14 per diluted share; EBITDA was $596 million; and adjusted EBITDA was $599 million. These results compare to second quarter 2020 net earnings attributable to common stockholders of $190 million, or $0.89 per diluted share; EBITDA of $472 million; and adjusted EBITDA of $490 million.
Net sales in the second quarter of 2021 were $1.59 billion compared to $1.20 billion in the second quarter of 2020. Average selling prices for the second quarter of 2021 were higher than the second quarter of 2020 across all segments due to strong global demand as well as decreased global supply availability as higher global energy costs drove lower global operating rates. Sales volumes in the second quarter of 2021 were lower than the second quarter of 2020 due to lower supply availability from lower production.
Cost of sales for the second quarter of 2021 was higher compared to the second quarter of 2020 primarily due to higher natural gas costs and higher maintenance costs, partially offset by the impact of lower sales volumes.
In the second quarter of 2021, the average cost of natural gas reflected in the Company’s cost of sales was $3.25 per MMBtu compared to the average cost of natural gas in cost of sales of $1.86 per MMBtu in the second quarter of 2020.
Capital Management
Capital expenditures in the second quarter and first half of 2021 were $110 million and $181 million, respectively. Management projects capital expenditures for full year 2021 will be in the range of $500 million, reflecting higher maintenance activity in 2021 due to maintenance deferred from 2020 as well as activity that was previously planned to occur in 2022.
On August 9, 2021, the company announced that its wholly owned subsidiary CF Industries, Inc. has elected to redeem on September 10, 2021, $250 million principal amount, representing one-third of the currently outstanding $750 million principal amount, of its 3.450% senior notes due 2023 (the “2023 Notes”) in accordance with the optional redemption provisions provided in the indenture governing the 2023 Notes. Based on market interest rates on August 2, 2021, the Company estimates that the total amount for the partial redemption of the 2023 Notes will be approximately $265 million, including accrued interest.
On July 30, 2021, the Board of Managers of CF Industries Nitrogen, LLC (CFN) approved a semi-annual distribution payment to CHS Inc. (CHS) of $130 million for the distribution period ended June 30, 2021. The distribution was paid on July 30, 2021.
Nitrogen Market Outlook
Management expects the global nitrogen pricing outlook to remain favorable as the need to replenish global coarse grains stocks, increased economic activity, and high energy prices in Europe and Asia should sustain a tighter global nitrogen supply and demand balance into 2023.
Global demand for nitrogen is robust and widespread. The global coarse grains stocks-to-use ratio, excluding China, was the lowest since 2012 entering the 2021 spring planting season, supporting historically high crop near-term and futures prices. This has led to strong demand for nitrogen fertilizer to maximize yield in the 2021 growing season. The Company expects that strong global demand for coarse grains will contribute to persistent low global stocks into 2022, and will require at least two more growing seasons to be replenished. This should support further strong nitrogen demand in upcoming years. Additionally, increased economic activity as the world emerges from the COVID-19 pandemic has supported higher industrial consumption of nitrogen products.
In North America, demand for nitrogen fertilizer has been positive in 2021. The U.S. Department of Agriculture projects that nearly 93 million acres of corn were planted in the U.S. while canola plantings in Canada increased 8 percent compared to 2020 according to Statistics Canada. The Company expects that corn plantings in the U.S. will be at a similar level in 2022 given current projections that 2021 ending stocks will be lower than recent historical norms due to high export demand. Industrial activity also continues to increase, supporting demand for nitrogen products such as diesel exhaust fluid and nitric acid.
Nitrogen requirements in other key regions are expected to remain robust through 2023, driven by continued strong demand for urea imports from India and Brazil. In the near-term, the Company expects India to tender for urea frequently in the second half of this year, supporting global import demand with purchases approaching 10 million metric tons for 2021. Imports of urea to Brazil were 24 percent higher year-over-year through the first six months of 2021. Management projects that urea imports to Brazil will remain substantial through the end of the year supported by higher crop prices, increased planted corn acres and improved farm incomes.
Energy prices in Europe and Asia have increased significantly from the lows of 2020 and returned to sizable differentials compared to Henry Hub natural gas prices in North America. This has steepened the global nitrogen cost curve and increased margin opportunities for low-cost North American producers. Forward curves suggest that favorable energy spreads will persist throughout 2022 and into 2023.
Clean Energy Initiatives
The Company 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 and green ammonia. Recent developments include:
CF Industries continues to develop other initiatives related to its clean energy strategy across the Company’s network.
UAN Antidumping and Countervailing Duty Investigations
On June 30, 2021, CF Industries, through certain of its production facilities, filed petitions with the U.S. Department of Commerce (“Commerce”) and the U.S. International Trade Commission (“ITC”) requesting the initiation of antidumping and countervailing duty investigations on imports of urea ammonium nitrate solutions (“UAN”) from Russia and Trinidad.
CF Industries, which is the largest producer of UAN in the United States, requested the investigations due to the harm the domestic UAN industry has experienced from dumped and unfairly subsidized UAN imports from Russia and Trinidad. CF Industries filed its petitions under United States antidumping and countervailing duty laws, which authorize Commerce to level the playing field for domestic industries injured by foreign imports that are dumped and unfairly subsidized. If Commerce and the ITC make affirmative determinations, then Commerce can impose duties equal to the level of dumping and unfair subsidies.
The ITC is expected to take a preliminary vote on whether there is a reasonable indication that imports are injuring the domestic industry on August 13. At this time, management cannot predict the outcome of the proceedings, including whether antidumping or countervailing duties will be imposed on imports from either country, or the rate of any such duties.
___________________________________________________ |
|
(1) |
Certain items recognized during the first half and second quarter of 2021 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. |
(4) |
Average cost of natural gas excludes the $112 million gain the Company recognized from the net settlement of certain natural gas contracts with suppliers during February 2021. |
Consolidated Results |
|||||||||||||||||
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
|
2020 |
|
||||||||
|
(dollars in millions, except per share and per MMBtu amounts) |
||||||||||||||||
Net sales |
$ |
1,588 |
|
|
$ |
1,204 |
|
|
$ |
2,636 |
|
|
|
$ |
2,175 |
|
|
Cost of sales |
1,085 |
|
|
870 |
|
|
1,844 |
|
|
|
1,637 |
|
|
||||
Gross margin |
$ |
503 |
|
|
$ |
334 |
|
|
$ |
792 |
|
|
|
$ |
538 |
|
|
Gross margin percentage |
31.7 |
% |
|
27.7 |
% |
|
30.0 |
|
% |
|
24.7 |
|
% |
||||
|
|
|
|
|
|
|
|
||||||||||
Net earnings attributable to common stockholders |
$ |
246 |
|
|
$ |
190 |
|
|
$ |
397 |
|
|
|
$ |
258 |
|
|
Net earnings per diluted share |
$ |
1.14 |
|
|
$ |
0.89 |
|
|
$ |
1.83 |
|
|
|
$ |
1.20 |
|
|
|
|
|
|
|
|
|
|
||||||||||
EBITDA(1) |
$ |
596 |
|
|
$ |
472 |
|
|
$ |
994 |
|
|
|
$ |
786 |
|
|
Adjusted EBITDA(1) |
$ |
599 |
|
|
$ |
490 |
|
|
$ |
997 |
|
|
|
$ |
808 |
|
|
|
|
|
|
|
|
|
|
||||||||||
Tons of product sold (000s) |
5,174 |
|
|
5,386 |
|
|
9,738 |
|
|
|
10,074 |
|
|
||||
|
|
|
|
|
|
|
|
||||||||||
Natural gas supplemental data (per MMBtu): |
|
|
|
|
|
|
|
||||||||||
Cost of natural gas used for production in cost of sales(2) |
$ |
3.25 |
|
|
$ |
1.86 |
|
|
$ |
3.24 |
|
|
|
$ |
2.20 |
|
|
Average daily market price of natural gas Henry Hub (Louisiana) |
$ |
2.88 |
|
|
$ |
1.65 |
|
|
$ |
3.13 |
|
|
|
$ |
1.76 |
|
|
Average daily market price of natural gas National Balancing Point (UK) |
$ |
8.90 |
|
|
$ |
1.60 |
|
|
$ |
7.90 |
|
|
|
$ |
2.40 |
|
|
|
|
|
|
|
|
|
|
||||||||||
Unrealized net mark-to-market gain on natural gas derivatives |
$ |
— |
|
|
$ |
— |
|
|
$ |
(6 |
) |
|
|
$ |
(12 |
) |
|
Depreciation and amortization |
$ |
243 |
|
|
$ |
239 |
|
|
$ |
447 |
|
|
|
$ |
450 |
|
|
Capital expenditures |
$ |
110 |
|
|
$ |
52 |
|
|
$ |
181 |
|
|
|
$ |
119 |
|
|
|
|
|
|
|
|
|
|
||||||||||
Production volume by product tons (000s): |
|
|
|
|
|
|
|
||||||||||
Ammonia(3) |
2,232 |
|
|
2,483 |
|
|
4,711 |
|
|
|
5,153 |
|
|
||||
Granular urea |
968 |
|
|
1,206 |
|
|
2,152 |
|
|
|
2,491 |
|
|
||||
UAN (32%) |
1,628 |
|
|
1,708 |
|
|
3,317 |
|
|
|
3,307 |
|
|
||||
AN |
449 |
|
|
546 |
|
|
924 |
|
|
|
1,061 |
|
|
||||
_______________________________________________________________________________ |
|
(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 six months ended June 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. The Company has also announced steps to produce blue ammonia and market to external customers for its hydrogen content in clean energy applications. In addition, the Company upgrades ammonia into other nitrogen products such as urea, UAN and AN.
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
|
2020 |
|
||||||||
|
(dollars in millions, except per ton amounts) |
||||||||||||||||
Net sales |
$ |
459 |
|
|
$ |
364 |
|
|
$ |
665 |
|
|
|
$ |
557 |
|
|
Cost of sales |
333 |
|
|
262 |
|
|
413 |
|
|
|
435 |
|
|
||||
Gross margin |
$ |
126 |
|
|
$ |
102 |
|
|
$ |
252 |
|
|
|
$ |
122 |
|
|
Gross margin percentage |
27.5 |
% |
|
28.0 |
% |
|
37.9 |
|
% |
|
21.9 |
|
% |
||||
|
|
|
|
|
|
|
|
||||||||||
Sales volume by product tons (000s) |
1,036 |
|
|
1,118 |
|
|
1,719 |
|
|
|
1,880 |
|
|
||||
Sales volume by nutrient tons (000s)(1) |
850 |
|
|
917 |
|
|
1,410 |
|
|
|
1,542 |
|
|
||||
|
|
|
|
|
|
|
|
||||||||||
Average selling price per product ton |
$ |
443 |
|
|
$ |
326 |
|
|
$ |
387 |
|
|
|
$ |
296 |
|
|
Average selling price per nutrient ton(1) |
540 |
|
|
397 |
|
|
472 |
|
|
|
361 |
|
|
||||
|
|
|
|
|
|
|
|
||||||||||
Adjusted gross margin(2): |
|
|
|
|
|
|
|
||||||||||
Gross margin |
$ |
126 |
|
|
$ |
102 |
|
|
$ |
252 |
|
|
|
$ |
122 |
|
|
Depreciation and amortization |
61 |
|
|
60 |
|
|
97 |
|
|
|
99 |
|
|
||||
Unrealized net mark-to-market gain on natural gas derivatives |
— |
|
|
— |
|
|
(2 |
) |
|
|
(4 |
) |
|
||||
Adjusted gross margin |
$ |
187 |
|
|
$ |
162 |
|
|
$ |
347 |
|
|
|
$ |
217 |
|
|
Adjusted gross margin as a percent of net sales |
40.7 |
% |
|
44.5 |
% |
|
52.2 |
|
% |
|
39.0 |
|
% |
||||
|
|
|
|
|
|
|
|
||||||||||
Gross margin per product ton |
$ |
122 |
|
|
$ |
91 |
|
|
$ |
147 |
|
|
|
$ |
65 |
|
|
Gross margin per nutrient ton(1) |
148 |
|
|
111 |
|
|
179 |
|
|
|
79 |
|
|
||||
Adjusted gross margin per product ton |
181 |
|
|
145 |
|
|
202 |
|
|
|
115 |
|
|
||||
Adjusted gross margin per nutrient ton(1) |
220 |
|
|
177 |
|
|
246 |
|
|
|
141 |
|
|
||||
_______________________________________________________________________________ |
|
(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 2021 to 2020 first half 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 June 30, |
|
Six months ended June 30, |
||||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
|
2020 |
|
||||||||
|
(dollars in millions, except per ton amounts) |
||||||||||||||||
Net sales |
$ |
433 |
|
|
$ |
329 |
|
|
$ |
832 |
|
|
|
$ |
666 |
|
|
Cost of sales |
241 |
|
|
205 |
|
|
505 |
|
|
|
429 |
|
|
||||
Gross margin |
$ |
192 |
|
|
$ |
124 |
|
|
$ |
327 |
|
|
|
$ |
237 |
|
|
Gross margin percentage |
44.3 |
% |
|
37.7 |
% |
|
39.3 |
|
% |
|
35.6 |
|
% |
||||
|
|
|
|
|
|
|
|
||||||||||
Sales volume by product tons (000s) |
1,092 |
|
|
1,314 |
|
|
2,412 |
|
|
|
2,695 |
|
|
||||
Sales volume by nutrient tons (000s)(1) |
502 |
|
|
604 |
|
|
1,109 |
|
|
|
1,239 |
|
|
||||
|
|
|
|
|
|
|
|
||||||||||
Average selling price per product ton |
$ |
397 |
|
|
$ |
250 |
|
|
$ |
345 |
|
|
|
$ |
247 |
|
|
Average selling price per nutrient ton(1) |
863 |
|
|
545 |
|
|
750 |
|
|
|
538 |
|
|
||||
|
|
|
|
|
|
|
|
||||||||||
Adjusted gross margin(2): |
|
|
|
|
|
|
|
||||||||||
Gross margin |
$ |
192 |
|
|
$ |
124 |
|
|
$ |
327 |
|
|
|
$ |
237 |
|
|
Depreciation and amortization |
55 |
|
|
66 |
|
|
121 |
|
|
|
138 |
|
|
||||
Unrealized net mark-to-market gain on natural gas derivatives |
— |
|
|
— |
|
|
(2 |
) |
|
|
(4 |
) |
|
||||
Adjusted gross margin |
$ |
247 |
|
|
$ |
190 |
|
|
$ |
446 |
|
|
|
$ |
371 |
|
|
Adjusted gross margin as a percent of net sales |
57.0 |
% |
|
57.8 |
% |
|
53.6 |
|
% |
|
55.7 |
|
% |
||||
|
|
|
|
|
|
|
|
||||||||||
Gross margin per product ton |
$ |
176 |
|
|
$ |
94 |
|
|
$ |
136 |
|
|
|
$ |
88 |
|
|
Gross margin per nutrient ton(1) |
382 |
|
|
205 |
|
|
295 |
|
|
|
191 |
|
|
||||
Adjusted gross margin per product ton |
226 |
|
|
145 |
|
|
185 |
|
|
|
138 |
|
|
||||
Adjusted gross margin per nutrient ton(1) |
492 |
|
|
315 |
|
|
402 |
|
|
|
299 |
|
|
||||
_______________________________________________________________________________ |
|
(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 2021 to 2020 first half 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.
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, Investor Relations
847-405-2045 - This email address is being protected from spambots. You need JavaScript enabled to view it.
NEW YORK--(BUSINESS WIRE)--International Seaways, Inc. (NYSE: INSW) (the “Company” or “INSW”), one of the largest tanker companies worldwide providing energy transportation services for crude oil and petroleum products, today reported results for the second quarter of 2021.
Highlights
“During the second quarter, Seaways maintained an unrelenting focus on strengthening our industry position and enhancing our ability to create long-term value for stakeholders,” said Lois K. Zabrocky, International Seaways’ President and CEO. “We are excited to have completed our transformational and highly accretive merger with Diamond S last month, solidifying Seaways’ status as an industry bellwether with enhanced scale, capabilities and significant financial strength. With a diversified 100-vessel fleet of crude and product tankers that provides considerable operating leverage, we are poised to benefit from positive long-term industry fundamentals, as well as near-term developments, notably recovering global oil demand, continued inventory destocking, and increased OPEC production.”
Ms. Zabrocky continued, “Our strategic focus remains on achieving the highest operational standards, executing our disciplined and balanced approach to capital allocation and preserving our financial strength, while concentrating on achieving the considerable economies of scale that have been made possible by the merger. By combining two leading U.S.-based tanker owners with first-rate teams and high-quality fleets, we have further strengthened our commitment to operational excellence, sustainability and meeting the evolving needs of leading energy companies. As we move forward, we will also continue to prioritize returning capital to shareholders, as highlighted by our recent merger-related $31.5 million, or $1.12 per share, special dividend, our regular quarterly dividend, as well as our outstanding $50 million share repurchase authorization. Of note, we have now paid over $70 million to shareholders since 2020 in the form of stock buybacks and dividends.”
Jeff Pribor, the Company’s CFO, added, “Our completed merger is highly accretive to earnings and cash flow, and we continue to expect cost synergies in excess of $23 million and revenue synergies of $9 million to be fully realizable within 2022. Importantly, our significant pro forma cash and liquidity positions, as well as our overall balance sheet strength and ongoing support from our industry leading banking group, will continue to serve us well in a challenging rate environment.”
Second Quarter 2021 Results
Net loss for the second quarter of 2021 was $18.8 million, or $0.67 per diluted share, compared to net income of $64.4 million, or $2.24 per diluted share, for the second quarter of 2020. The decline in the second quarter of 2021 results primarily reflects significantly lower TCE revenues(B), which was partially offset by lower vessel expenses, depreciation and amortization, charter hire expenses and interest expense. Net loss for the first half of 2021 was $32.1 million, or $1.15 per diluted share, compared to net income of $97.4 million, or $3.35 per share, for the first half of 2020.
Consolidated TCE revenues for the second quarter were $44.7 million, compared to $135.3 million for the second quarter of 2020. Shipping revenues for the second quarter were $46.3 million, compared to $139.7 million for the second quarter of 2020. Consolidated TCE revenues for the first half of 2021 were $89.9 million, compared to $255.0 million for the first half of 2020. Shipping revenues for the first half of 2021 were $93.1 million compared to $265.1 million for the first half of 2020.
Adjusted EBITDA(C) for the second quarter was $9.8 million, compared to $96.3 million for the second quarter of 2020. Adjusted EBITDA was $20.5 million for the first half of 2021, compared to $170.5 million for the first half of 2020.
Crude Tankers
TCE revenues for the Crude Tankers segment were $31.1 million for the second quarter compared to $105.9 million for the second quarter of 2020. $54.8 million of this decrease primarily resulted from the impact of lower average rates in the VLCC, Suezmax, Aframax and Panamax sectors, with average spot earnings declining to approximately $13,700, $18,500, $8,600 and $16,500 per day, respectively. Also contributing to the decrease in TCE revenues was the impact of a 238-day reduction in VLCC revenue days, aggregating $16.5 million; a $2.0 million days-related decline in the Aframax fleet as a result of the sale of an older Aframax in 2020; and a $1.2 million decrease in revenue in the Lightering business in the second quarter. Shipping revenues for the Crude Tankers segment were $32.5 million for second quarter of 2021 compared to $110.4 million for the second quarter of 2020. TCE revenues for the Crude Tankers segment were $67.0 million for the first half of 2021, compared to $194.7 million for the first half of 2020. Shipping revenues for the Crude Tankers segment were $70.1 million for the first half of 2021, compared to $204.1 million for the first half of 2020.
Product Carriers
TCE revenues for the Product Carriers segment were $13.6 million for the second quarter, compared to $29.4 million for the second quarter of 2020. The decrease is primarily attributable to lower period-over-period average daily blended rates earned by the LR2, LR1 and MR fleets, which accounted for a decrease in TCE revenues of approximately $14.4 million. Average spot rates fell during the second quarter of 2021 to approximately $15,300 and $10,600, respectively, for the LR1 and MR fleets. In addition, fewer revenue days in the MR fleet during the second quarter due to the redelivery of a time chartered-in MR to its owner in July 2020 contributed an aggregate decrease in TCE revenues of approximately $1.3 million. Shipping revenues for the Product Carriers segment were $13.8 million for the second quarter of 2021, compared to $29.3 million for the second quarter of 2020. TCE revenues for the Product Carriers segment were $22.8 million for the first half of 2021, compared to $60.3 million for the first half of 2020. Shipping revenues for the Product Carriers segment were $23.0 million for the first half of 2021, compared to $61.0 million for the first half of 2020.
Completed Merger with Diamond S Shipping
Subsequent to the end of the second quarter, the Company completed its previously announced merger with Diamond S Shipping Inc. (“Diamond S”). The Company expects to achieve cost synergies in excess of $23 million and revenue synergies of $9 million, which are expected to be fully realizable within 2022. International Seaways is now the second largest U.S.-listed tanker company by vessel count with approximately 100 vessels and the third largest by deadweight tons (“dwt”), aggregating approximately 11.0 million dwt.
In accordance with the terms of the Merger Agreement, which was approved by INSW and Diamond S shareholders at their respective special meetings held on July 13, 2021, pre-merger INSW shareholders own approximately 55.75% of the equity of the combined company and former Diamond S stockholders own approximately 44.25%. On July 15, 2021, pre-merger INSW shareholders of record as of July 14, 2021, received a special dividend of $1.12 per share.
Vessel Sales
During the second quarter of 2021, the Company agreed to sell a 2002-built VLCC, a 2002-built Panamax and a 2003-built Panamax. The 2002-built VLCC delivered to its buyer in the third quarter of 2021. Additionally, the Company agreed to sell two additional 2002-built Panamaxes in July 2021, which are expected to deliver in the third and fourth quarter of 2021.
In addition, the Company agreed to sell seven MRs acquired in the Merger. Four of the MRs have delivered to the buyers and the balance are expected to be delivered during the third quarter of 2021.
The twelve vessels sold are expected to provide aggregate net proceeds of approximately $75 million after the repayment of debt.
Payment of Regular Cash Dividend
The Company’s Board of Directors declared a regular quarterly dividend of $0.06 per share of common stock on July 28, 2021. The dividend will be paid on September 23, 2021 to shareholders of record at the close of business on September 9, 2021.
Conference Call
The Company will host a conference call to discuss its second quarter 2021 results at 10:00 a.m. Eastern Time (“ET”) on Monday, August 9, 2021. To access the call, participants should dial (855) 940-9471 for domestic callers and (412) 317-5211 for international callers. Please dial in ten minutes prior to the start of the call. A live webcast of the conference call will be available from the Investor Relations section of the Company’s website at https://www.intlseas.com.
An audio replay of the conference call will be available until August 16, 2021 by dialing (877) 344-7529 for domestic callers and (412) 317-0088 for international callers, and entering Conference ID 10159011.
About International Seaways, Inc.
International Seaways, Inc. (NYSE: INSW) is one of the largest tanker companies worldwide providing energy transportation services for crude oil and petroleum products in International Flag markets. International Seaways owns and operates a fleet of 97 vessels, including 13 VLCCs (including three newbuildings), 15 Suezmaxes, five Aframaxes/LR2s, 12 Panamaxes/LR1s, 44 MR tankers and six Handy tankers. Through joint ventures, it has ownership interests in two floating storage and offloading service vessels. International Seaways has an experienced team committed to the very best operating practices and the highest levels of customer service and operational efficiency. International Seaways is headquartered in New York City, NY. Additional information is available at https://www.intlseas.com.
Forward-Looking Statements
This release contains forward-looking statements. In addition, the Company may make or approve certain statements in future filings with the U.S. Securities and Exchange Commission (SEC), in press releases, or in oral or written presentations by representatives of the Company. All statements other than statements of historical facts should be considered forward-looking statements. These matters or statements may relate to the Company’s merger with Diamond S and plans to issue dividends, its prospects, including statements regarding vessel acquisitions, expected synergies, trends in the tanker markets, and possibilities of strategic alliances and investments. Forward-looking statements are based on the Company’s current plans, estimates and projections, and are subject to change based on a number of factors. Investors should carefully consider the risk factors outlined in more detail in the Annual Report on Form 10-K for 2020 for the Company, the Quarterly Report on Form 10-Q for the quarter ended June 30, 2021, the Company’s Amended Registration Statement on Form S-4 dated June 3, 2021, and in similar sections of other filings made by the Company with the SEC from time to time. The Company assumes no obligation to update or revise any forward-looking statements. Forward-looking statements and written and oral forward-looking statements attributable to the Company or its representatives after the date of this release are qualified in their entirety by the cautionary statements contained in this paragraph and in other reports previously or hereafter filed by the Company with the SEC.
Category: Earnings
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Consolidated Statements of Operations |
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($ in thousands, except per share amounts) |
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Three Months Ended |
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Six Months Ended |
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June 30, |
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June 30, |
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2021 |
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2020 |
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2021 |
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2020 |
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(Unaudited) |
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(Unaudited) |
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(Unaudited) |
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(Unaudited) |
Shipping Revenues: |
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Pool revenues |
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$ |
26,455 |
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$ |
100,059 |
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$ |
51,114 |
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$ |
201,268 |
Time and bareboat charter revenues |
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11,714 |
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26,655 |
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26,412 |
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|
35,259 |
Voyage charter revenues |
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8,135 |
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13,011 |
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15,534 |
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28,535 |
Total Shipping Revenues |
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46,304 |
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139,725 |
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93,060 |
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265,062 |
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Operating Expenses: |
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Voyage expenses |
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1,586 |
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4,436 |
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3,173 |
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|
10,042 |
Vessel expenses |
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27,877 |
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30,278 |
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54,204 |
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|
63,238 |
Charter hire expenses |
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5,863 |
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7,540 |
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11,604 |
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17,771 |
Depreciation and amortization |
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17,079 |
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18,880 |
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33,833 |
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37,147 |
General and administrative |
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6,829 |
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6,694 |
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14,969 |
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14,128 |
Provision for credit losses, net |
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2 |
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(129) |
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43 |
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(67) |
Third-party debt modification fees |
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- |
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- |
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- |
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|
232 |
Merger and integration related costs |
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481 |
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- |
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|
481 |
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- |
Loss on disposal of vessels and other property,
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4,005 |
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4,134 |
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4,016 |
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1,330 |
Total operating expenses |
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63,722 |
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71,833 |
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122,323 |
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143,821 |
(Loss)/income from vessel operations |
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(17,418) |
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67,892 |
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(29,263) |
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121,241 |
Equity in income of affiliated companies |
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5,375 |
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5,205 |
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10,843 |
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10,316 |
Operating (loss)/income |
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(12,043) |
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73,097 |
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(18,420) |
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131,557 |
Other income/(expense) |
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267 |
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143 |
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559 |
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(13,289) |
(Loss)/income before interest expense and income taxes |
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(11,776) |
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73,240 |
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(17,861) |
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118,268 |
Interest expense |
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(7,006) |
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(8,881) |
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(14,286) |
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(20,890) |
(Loss)/income before income taxes |
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(18,782) |
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64,359 |
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(32,147) |
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97,378 |
Income tax provision |
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(1) |
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(1) |
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(1) |
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(1) |
Net (loss)/Income |
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$ |
(18,783) |
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$ |
64,358 |
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$ |
(32,148) |
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$ |
97,377 |
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Weighted Average Number of Common Shares Outstanding: |
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Basic |
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28,051,946 |
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28,469,969 |
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28,031,184 |
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28,812,299 |
Diluted |
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28,051,946 |
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28,639,780 |
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28,031,184 |
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28,989,146 |
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Per Share Amounts: |
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Basic net (loss)/income per share |
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$ |
(0.67) |
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$ |
2.26 |
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$ |
(1.15) |
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$ |
3.37 |
Diluted net (loss)/income per share |
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$ |
(0.67) |
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$ |
2.24 |
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$ |
(1.15) |
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$ |
3.35 |
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Consolidated Balance Sheets |
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($ in thousands) |
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June 30, |
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December 31, |
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2021 |
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2020 |
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(Unaudited) |
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(Unaudited) |
ASSETS |
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Current Assets: |
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Cash and cash equivalents |
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$ |
117,391 |
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$ |
199,390 |
Voyage receivables |
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50,981 |
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43,362 |
Other receivables |
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6,324 |
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4,479 |
Inventories |
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2,103 |
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3,601 |
Prepaid expenses and other current assets |
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6,365 |
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6,002 |
Vessels held for sale |
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29,146 |
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- |
Total Current Assets |
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212,310 |
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256,834 |
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Restricted Cash |
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16,173 |
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16,287 |
Vessels and other property, less accumulated depreciation |
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1,055,747 |
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1,108,214 |
Vessels construction in progress |
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14,606 |
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- |
Deferred drydock expenditures, net |
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39,405 |
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36,334 |
Total Vessels, Deferred Drydock and Other Property |
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1,109,758 |
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1,144,548 |
Operating lease right-of-use assets |
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16,999 |
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21,588 |
Investments in and advances to affiliated companies |
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149,580 |
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141,924 |
Long-term derivative assets |
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6,526 |
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2,129 |
Other assets |
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7,519 |
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3,229 |
Total Assets |
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$ |
1,518,865 |
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$ |
1,586,539 |
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LIABILITIES AND EQUITY |
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Current Liabilities: |
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Accounts payable, accrued expenses and other current liabilities |
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$ |
29,453 |
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$ |
34,425 |
Current portion of operating lease liabilities |
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7,226 |
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|
8,867 |
Current installments of long-term debt |
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61,483 |
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61,483 |
Current portion of derivative liabilities |
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3,950 |
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|
4,121 |
Total Current Liabilities |
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102,112 |
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108,896 |
Long-term operating lease liabilities |
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7,541 |
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10,253 |
Long-term debt |
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444,566 |
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474,332 |
Long-term derivative liabilities |
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3,782 |
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6,155 |
Other liabilities |
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13,410 |
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|
14,861 |
Total Liabilities |
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571,411 |
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614,497 |
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Equity: |
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Total Equity |
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947,454 |
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|
972,042 |
Total Liabilities and Equity |
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$ |
1,518,865 |
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$ |
1,586,539 |
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Consolidated Statements of Cash Flows |
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($ in thousands) |
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Six Months Ended June 30, |
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2021 |
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2020 |
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(Unaudited) |
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(Unaudited) |
Cash Flows from Operating Activities: |
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Net (loss)/income |
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$ |
(32,148) |
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$ |
97,377 |
Items included in net (loss)/income not affecting cash flows: |
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Depreciation and amortization |
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33,833 |
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37,147 |
Loss on write-down of vessels and other assets |
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3,497 |
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|
5,469 |
Amortization of debt discount and other deferred financing costs |
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|
1,077 |
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|
1,708 |
Deferred financing costs write-off |
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- |
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|
12,501 |
Stock compensation |
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|
2,263 |
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|
2,503 |
Earnings of affiliated companies |
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(10,843) |
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|
(10,209) |
Change in fair value of interest rate collar recorded through earnings |
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- |
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|
1,271 |
Write-off of registration statement costs |
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|
694 |
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- |
Other – net |
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|
831 |
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|
512 |
Items included in net (loss)/income related to investing and financing activities: |
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Loss/(gain) on disposal of vessels and other property, net |
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|
519 |
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(4,139) |
Loss on extinguishment of debt |
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- |
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|
1,014 |
Cash distributions from affiliated companies |
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|
3,625 |
|
|
5,250 |
Payments for drydocking |
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(14,720) |
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|
(12,513) |
Insurance claims proceeds related to vessel operations |
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|
710 |
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|
570 |
Changes in operating assets and liabilities |
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(11,856) |
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|
(10,771) |
Net cash (used in)/provided by operating activities |
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(22,518) |
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|
127,690 |
Cash Flows from Investing Activities: |
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|
|
Expenditures for vessels and vessel improvements |
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(24,130) |
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|
(40,949) |
Proceeds from disposal of vessels and other property, net |
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|
3,431 |
|
|
13,578 |
Expenditures for other property |
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|
(271) |
|
|
(348) |
Investments in and advances to affiliated companies, net |
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|
(95) |
|
|
(46) |
Net cash used in investing activities |
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|
(21,065) |
|
|
(27,765) |
Cash Flows from Financing Activities: |
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|
|
Issuance of debt, net of issuance costs |
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|
(49) |
|
|
362,989 |
Extinguishment of debt |
|
|
- |
|
|
(382,699) |
Payments on debt |
|
|
(30,742) |
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|
(51,266) |
Cash payments on derivatives containing other-than-insignificant financing element |
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|
(2,623) |
|
|
- |
Common stock issuance costs |
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|
(717) |
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|
(122) |
Repurchases of common stock |
|
|
- |
|
|
(29,997) |
Cash dividends paid |
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|
(3,369) |
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|
(3,412) |
Cash paid to tax authority upon vesting of stock-based compensation |
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|
(1,030) |
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|
(1,200) |
Net cash used in financing activities |
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|
(38,530) |
|
|
(105,707) |
Net decrease in cash, cash equivalents and restricted cash |
|
|
(82,113) |
|
|
(5,782) |
Cash, cash equivalents and restricted cash at beginning of year |
|
|
215,677 |
|
|
150,243 |
Cash, cash equivalents and restricted cash at end of period |
|
$ |
133,564 |
|
$ |
144,461 |
Spot and Fixed TCE Rates Achieved and Revenue Days
The following tables provides a breakdown of TCE rates achieved for spot and fixed charters and the related revenue days for the three months ended June 30, 2021 and the comparable period of 2020. Revenue days in the quarter ended June 30, 2021 totaled 2,846 compared with 3,241 in the prior year quarter. A summary fleet list by vessel class can be found later in this press release. The information in these tables excludes commercial pool fees/commissions averaging approximately $641 and $719 per day for the three months ended June 30, 2021 and 2020, respectively.
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Three Months Ended June 30, 2021 |
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Three Months Ended June 30, 2020 |
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Spot |
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Fixed |
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Total |
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Spot |
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Fixed |
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Total |
Crude Tankers |
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VLCC |
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Average TCE Rate |
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$ |
13,684 |
|
$ |
43,877 |
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$ |
71,747 |
|
$ |
67,214 |
|
|
|
Number of Revenue Days |
|
|
651 |
|
|
91 |
|
|
742 |
|
|
719 |
|
|
261 |
|
|
980 |
Suezmax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate |
|
$ |
18,485 |
|
$ |
- |
|
|
|
|
$ |
48,989 |
|
$ |
- |
|
|
|
Number of Revenue Days |
|
|
182 |
|
|
- |
|
|
182 |
|
|
180 |
|
|
- |
|
|
180 |
Aframax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate |
|
$ |
8,589 |
|
$ |
- |
|
|
|
|
$ |
30,559 |
|
$ |
- |
|
|
|
Number of Revenue Days |
|
|
266 |
|
|
- |
|
|
266 |
|
|
334 |
|
|
- |
|
|
334 |
Panamax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate |
|
$ |
16,535 |
|
$ |
11,396 |
|
|
|
|
$ |
35,049 |
|
$ |
16,258 |
|
|
|
Number of Revenue Days |
|
|
91 |
|
|
523 |
|
|
614 |
|
|
91 |
|
|
540 |
|
|
631 |
Total Crude Tankers Revenue Days |
|
|
1,190 |
|
|
614 |
|
|
1,804 |
|
|
1,324 |
|
|
801 |
|
|
2,125 |
Product Carriers |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LR2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate |
|
$ |
- |
|
$ |
17,784 |
|
|
|
|
$ |
38,933 |
|
$ |
- |
|
|
|
Number of Revenue Days |
|
|
- |
|
|
91 |
|
|
91 |
|
|
91 |
|
|
- |
|
|
91 |
LR1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate |
|
$ |
15,291 |
|
$ |
- |
|
|
|
|
$ |
30,851 |
|
$ |
- |
|
|
|
Number of Revenue Days |
|
|
541 |
|
|
- |
|
|
541 |
|
|
545 |
|
|
- |
|
|
545 |
MR |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average TCE Rate |
|
$ |
10,627 |
|
$ |
- |
|
|
|
|
$ |
17,168 |
|
$ |
- |
|
|
|
Number of Revenue Days |
|
|
410 |
|
|
- |
|
|
410 |
|
|
480 |
|
|
- |
|
|
480 |
Total Product Carriers Revenue Days |
|
|
951 |
|
|
91 |
|
|
1,042 |
|
|
1,116 |
|
|
- |
|
|
1,116 |
Total Revenue Days |
|
|
2,141 |
|
|
705 |
|
|
2,846 |
|
|
2,440 |
|
|
801 |
|
|
3,241 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue days in the above tables exclude days related to full service lighterings and days for which recoveries were recorded under the Company’s loss of hire insurance policies.
Fleet Information
As of August 9, 2021, INSW’s fleet totaled 97 vessels, including 3 newbuilds and 94 operating vessels, of which 92 were owned, 2 were chartered in, and 2 FSOs were held through joint ventures.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vessels Owned |
|
Vessels Chartered-in |
|
Total at August 1, 2021 |
||||||||
Vessel Type |
|
Number |
|
Weighted
|
|
Number |
|
Weighted
|
|
Total Vessels |
|
Vessels
|
|
Total Dwt |
Operating Fleet |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FSO |
|
2 |
|
1.0 |
|
- |
|
- |
|
2 |
|
1.0 |
|
864,046 |
VLCC |
|
10 |
|
10.0 |
|
- |
|
- |
|
10 |
|
10.0 |
|
3,012,171 |
Suezmax |
|
15 |
|
15.0 |
|
- |
|
- |
|
15 |
|
15.0 |
|
2,381,911 |
Aframax |
|
2 |
|
2.0 |
|
2 |
|
2.0 |
|
4 |
|
4.0 |
|
452,375 |
Panamax |
|
7 |
|
7.0 |
|
- |
|
- |
|
7 |
|
7.0 |
|
487,365 |
Crude Tankers |
|
36 |
|
35.0 |
|
2 |
|
2.0 |
|
38 |
|
37.0 |
|
7,197,868 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LR2 |
|
1 |
|
1.0 |
|
- |
|
- |
|
1 |
|
1.0 |
|
112,691 |
LR1 |
|
5 |
|
5.0 |
|
- |
|
- |
|
5 |
|
5.0 |
|
372,705 |
MR |
|
44 |
|
44.0 |
|
- |
|
- |
|
44 |
|
44.0 |
|
2,206,626 |
Handy |
|
6 |
|
6.0 |
|
- |
|
- |
|
6 |
|
6.0 |
|
220,450 |
Product Carriers |
|
56 |
|
56.0 |
|
- |
|
- |
|
56 |
|
56.0 |
|
2,912,472 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating Fleet |
|
92 |
|
91.0 |
|
2 |
|
2.0 |
|
94 |
|
93.0 |
|
10,110,340 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Newbuild Fleet |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VLCC |
|
3 |
|
3.0 |
|
- |
|
- |
|
3 |
|
3.0 |
|
900,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Newbuild Fleet |
|
3 |
|
3.0 |
|
- |
|
- |
|
3 |
|
3.0 |
|
900,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating and
|
|
95 |
|
94.0 |
|
2 |
|
2.0 |
|
97 |
|
96.0 |
|
11,010,340 |
Reconciliation to Non-GAAP Financial Information
The Company believes that, in addition to conventional measures prepared in accordance with GAAP, the following non-GAAP measures may provide certain investors with additional information that will better enable them to evaluate the Company’s performance. Accordingly, these non-GAAP measures are intended to provide supplemental information, and should not be considered in isolation or as a substitute for measures of performance prepared with GAAP.
Investor Relations & Media Contact:
David Siever, International Seaways, Inc.
(212) 578-1635
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LOS ANGELES--(BUSINESS WIRE)--#EVs--Fisker Inc. (NYSE: FSR) (“Fisker”) – passionate creator of the world's most sustainable electric vehicles and advanced mobility solutions – announced today that Henrik Fisker, Chairman and Chief Executive Officer of Fisker, will participate in the Canaccord Genuity 41st Annual Growth Conference.
Henrik Fisker’s “Fireside Chat” will cover a wide range of topics, including product development progress of Fisker Ocean (with manufacturing partner Magna) and Fisker PEAR (a no-compromises sub-$30,000 EV with manufacturing partner Foxconn) and President Biden’s recently-stated goal of 50% EV sales in the U.S. by 2030.
The event will take place on Wednesday, August 11, 2021, from 2:00 to 2:25 p.m. ET and will be available via webcast. To register for and access the event, please click here. The webcast will also be available through the Events & Presentations page of Fisker’s investor relations website by clicking here.
About Fisker Inc.
California-based Fisker Inc. is revolutionizing the automotive industry by developing the most emotionally desirable and eco-friendly electric vehicles on Earth. Passionately driven by a vision of a clean future for all, the company is on a mission to become the No. 1 e-mobility service provider with the world's most sustainable vehicles. To learn more, visit www.FiskerInc.com – and enjoy exclusive content across Fisker's social media channels: Facebook, Instagram, Twitter, YouTube and LinkedIn. Download the revolutionary new Fisker mobile app from the App Store or Google Play store.
Forward-Looking Statements
This press release includes forward-looking statements, which are subject to the “safe harbor” provisions of the US Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as “feel,” “believes,” expects,” “estimates,” “projects,” “intends,” “should,” “is to be,” or the negative of such terms, or other comparable terminology and include, among other things, statements regarding the Company’s strategy and other future events that involve risks and uncertainties. Such forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, which could cause actual results to differ materially from the forward-looking statements contained herein due to many factors, including, but not limited to: Fisker’s limited operating history; Fisker’s ability to enter into additional manufacturing and other contracts with Magna, or other OEMs or tier-one suppliers in order to execute on its business plan; the risk that OEM and supply partners do not meet agreed upon timelines or experience capacity constraints; Fisker may experience significant delays in the design, manufacture, regulatory approval, launch and financing of its vehicles; Fisker’s ability to execute its business model, including market acceptance of its planned products and services; Fisker’s inability to retain key personnel and to hire additional personnel; competition in the electric vehicle market; Fisker’s inability to develop a sales distribution network; and the ability to protect its intellectual property rights; and those factors discussed in Fisker’s Annual Report on Form 10-K, as amended, under the heading “Risk Factors,” filed with the Securities and Exchange Commission (the “SEC”), as supplemented by Quarterly Reports on Form 10-Q, and other reports and documents Fisker files from time to time with the SEC. Any forward-looking statements speak only as of the date on which they are made, and Fisker undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.
Fisker Inc.
Dan Galves, VP, Investor Relations
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Simon Sproule, SVP, Communications
310.374.6177
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Rebecca Lindland, Director, Corporate Communications
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DUBLIN--(BUSINESS WIRE)--The "LNG Bunkering Market by Product Type and Application: Global Opportunity Analysis and Industry Forecast, 2020-2027" report has been added to ResearchAndMarkets.com's offering.
The global LNG bunkering market was valued at $0.38 billion in 2019, and is projected to reach $5.14 billion by 2027, growing at a CAGR of 45.2% from 2020 to 2027.
The global shipping industry faced an IMO legislation to significantly limit sulfur emissions from ships, firstly in North America and then Northern Europe in 2015. LNG (liquid natural gas) is a potential solution to meet these requirements due to its negligible sulfur content, and its combustion produces low NOx compared to fuel oil and marine diesel oil. LNG is not only a cleaner burning fuel but also possesses economic advantages on a calorific value basis. Even higher LNG prices in Asia-Pacific are lower than global bunker fuel prices. As a result, there have been recent developments to promote the use of LNG as a bunker fuel.
The International Maritime Organization's regulations of sulfur cap of 0.50% m/m (mass/mass) in 2020 for marine fuels, increase in ocean-borne trade, especially in ton-km travelled, and the lower cost of LNG bunker fuel than other variants of ECA-compliant fuels are the factors that drive the growth of the global LNG bunkering market. However, the demand-supply gap for LNG bunkering is expected to increase with the implementation of IMO regulations; hence, supply must expand rapidly to meet global demand and premium priced Asia-Pacific demand in particular. On the contrary, increase in investment and financing toward LNG bunkering are expected to create opportunity for key players in the LNG bunkering market during the forecast period.
The global LNG bunkering market is segmented on the basis of product type, application, and region. Depending on product type, the market is categorized into truck-to-ship, port-to-ship, ship-to-ship, and portable tanks. The applications covered in the study include container fleet, tanker fleet, cargo fleet, ferries, inland vessels, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Key Benefits
Market Dynamics
Drivers
Restraints
Opportunity
Key Players
Other players operating in the LNG bunkering market are ENN Energy Holdings, Ltd., Statoil ASA, Gas Natural Fenosa, Eagle LNG, EVOL LNG, Fjord Line, and others.
For more information about this report visit https://www.researchandmarkets.com/r/3zi1hj
ResearchAndMarkets.com
Laura Wood, Senior Press Manager
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AUSTIN, Texas--(BUSINESS WIRE)--Hyliion Holdings Corp. (NYSE: HYLN) (“Hyliion”), a leader in electrified powertrain solutions for Class 8 semi-trucks, recently met with U.S. Secretary of Energy Jennifer Granholm and U.S. Representative Haley Stevens to showcase the Hypertruck ERX™ at development collaborator FEV North America’s Auburn Hills, Michigan facility. The visit was part of a tour to promote the Biden administration’s $1 trillion bipartisan infrastructure proposal.
Secretary Granholm and Representative Stevens were given an in-depth overview of the innovative, American-made technology that powers the Hypertruck ERX™, and also took a ride in a proof-of-concept unit, experiencing firsthand the quiet power of an electrified Class 8 truck.
“We were so pleased to showcase the Hypertruck ERX™ to Secretary Granholm, whose commitment to helping America achieve its goal of net-zero carbon emissions through innovative clean energy technology aligns with our vision of an electrified trucking industry,” said Bobby Cherian, Senior Vice President of Sales and Supply Chain.
“Hyliion’s powertrain technology provides fleets with a next-generation solution that empowers them to efficiently address sustainability goals by reducing their carbon footprint while bolstering performance,” Cherian added.
The Hypertruck ERX™ is an electric powertrain that is recharged by an onboard natural gas generator for Class 8 commercial trucks and will provide lower operating costs, emissions reductions, and superior performance to fleets nationwide. Utilizing the 700+ commercial natural gas vehicle filling stations across North America, it enables long range and quick refueling, and when fueled with renewable natural gas, can provide net-negative carbon emissions to commercial fleets.
In April, Hyliion announced a first of its kind Hypertruck Innovation Council with leading fleet and technology companies that will test and provide feedback on the Hypertruck ERX™. Just last week, the company noted that one of its current customers, Detmar Logistics LLC, has executed a reservation agreement covering 300 Hypertruck ERX™, with Hyliion showcasing demonstration units to the Detmar team in late 2021 and trials running in 2022.
About Hyliion
Hyliion’s mission is to reduce the carbon intensity and greenhouse gas (GHG) emissions of Class 8 commercial trucks by being a leading provider of electrified powertrain solutions. Leveraging advanced software algorithms and data analytics capabilities, Hyliion offers fleets an easy, efficient system to decrease fuel and operating expenses while seamlessly integrating with their existing fleet operations. Headquartered in Austin, Texas, Hyliion designs, develops, and sells electrified powertrain solutions that are designed to be installed on most major Class 8 commercial trucks, with the goal of transforming the commercial transportation industry’s environmental impact at scale. For more information, visit www.hyliion.com.
Forward Looking Statements
The information in this press 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. All statements, other than statements of present or historical fact included in this press release, regarding Hyliion and its future financial and operational performance, as well as its strategy, future operations, estimated financial position, estimated revenues, and losses, projected costs, prospects, plans and objectives of management are forward looking statements. When used in this press release, including any oral statements made in connection therewith, the words “could,” “should,” “will,” “may,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. Except as otherwise required by applicable law, Hyliion expressly disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements herein, to reflect events or circumstances after the date of this press release. Hyliion cautions you that these forward-looking statements are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of Hyliion. These risks include, but are not limited to, Hyliion’s ability to disrupt the powertrain market, Hyliion’s focus in 2021 and beyond, the effects of Hyliion’s dynamic and proprietary solutions on its commercial truck customers, accelerated commercialization of the Hypertruck ERX™, the ability to meet 2021 and future product milestones, the impact of COVID-19 on long-term objectives, the ability to reduce carbon intensity and greenhouse gas emissions and the other risks and uncertainties set forth in “Risk Factors” section of Hyliion’s annual report on Form 10-K/A filed with the Securities and Exchange Commission (the “SEC”) on May 17, 2021 for the year ended December 31, 2020. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Should one or more of the risks or uncertainties described in this press release occur, or should underlying assumptions prove incorrect, actual results and plans could different materially from those expressed in any forward-looking statements. Additional information concerning these and other factors that may impact Hyliion’s operations and projections can be found in its filings with the SEC. Hyliion’s SEC Filings are available publicly on the SEC’s website at www.sec.gov, and readers are urged to carefully review and consider the various disclosures made in such filings.
Press Contact
Ryann Malone
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Investor Contact
Louis Baltimore
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Gaston County review will allow time for constructive engagement
BELMONT, N.C.--(BUSINESS WIRE)--Piedmont Lithium Inc. (Nasdaq: PLL) (ASX: PLL) (“Piedmont” or the “Company”) is providing the following update as to the county rezoning process for its Carolina Lithium Project.
On August 6, 2021, during a special meeting of the Gaston County Board of Commissioners, the commissioners voted to approve a 60-day temporary development moratorium in new approvals for mining and quarrying activities in order to review the county’s current industry regulations and their potential impact on future operations. The Company looks forward to constructive engagement with the county commissioners and staff on the many important matters subject to their review.
“We would like to thank the Gaston County Board of Commissioners for their leadership in creating this framework and review structure where the County and Company can move forward together. We wholeheartedly agree that it’s important for the commissioners to have the time to review existing state and county regulations and how they may apply to plans for the Carolina Lithium Project,” said Piedmont Lithium CEO Keith Phillips.
“We note that counsel representing the county made clear in a statement during the special meeting that Gaston County supports economic growth and development, and that the resolution is not intended to stop mining but rather to give the county time to perform their due diligence. We look forward to engaging with the commissioners and the broader community regarding our commitment to environmental stewardship and economic prosperity for the county as we work to advance the United States supply chain for a low-carbon economy.”
Piedmont also confirmed that the Company is on track to publish its upcoming Definitive Feasibility Study in 2H 2021 and the Company will continue to work on the state and county level permits that are required for the Project.
About Piedmont Lithium
Piedmont Lithium (Nasdaq:PLL, ASX:PLL) is developing a world-class integrated lithium business in the United States, enabling the transition to a net zero world and the creation of a clean energy economy in America. Our location in the renowned Carolina Tin Spodumene Belt of North Carolina, the cradle of the lithium industry, positions us to be one of the world’s lowest cost producers of lithium hydroxide, and the most strategically located to serve the fast-growing U.S. electric vehicle supply chain. The unique geographic proximity of our resources, production operations and prospective customers places us on the path to be the most sustainable producer of lithium hydroxide in the world and should allow Piedmont to play a pivotal role in supporting America’s move to the electrification of transportation and energy storage. For more information, please visit www.piedmontlithium.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of or as described in securities legislation in the United States and Australia, including statements regarding exploration, development and construction activities; current plans for Piedmont’s mineral and chemical processing projects; strategy; and expectations regarding permitting. Such forward-looking statements involve substantial and known and unknown risks, uncertainties and other risk factors, many of which are beyond our control, and which may cause actual timing of events, results, performance or achievements and other factors to be materially different from the future timing of events, results, performance or achievements expressed or implied by the forward-looking statements. Such risk factors include, among others: (i) that Piedmont will be unable to commercially extract mineral deposits, (ii) that Piedmont’s properties may not contain expected reserves, (iii) risks and hazards inherent in the mining business (including risks inherent in exploring, developing, constructing and operating mining projects, environmental hazards, industrial accidents, weather or geologically related conditions), (iv) uncertainty about Piedmont’s ability to obtain required capital to execute its business plan, (v) Piedmont’s ability to hire and retain required personnel, (vi) changes in the market prices of lithium and lithium products, (vii) changes in technology or the development of substitute products, (viii) the uncertainties inherent in exploratory, developmental and production activities, including risks relating to permitting, zoning and regulatory delays, (ix) uncertainties inherent in the estimation of lithium resources, (x) risks related to competition, (xi) risks related to the information, data and projections related to Sayona Quebec and IronRidge Resources, (xii) occurrences and outcomes of claims, litigation and regulatory actions, investigations and proceedings, (xiii) risks regarding our ability to achieve profitability, enter into and deliver product under supply agreements on favorable terms, our ability to obtain sufficient financing to develop and construct our projects, our ability to comply with governmental regulations and our ability to obtain necessary permits, and (xiv) other uncertainties and risk factors set out in filings made from time to time with the U.S. Securities and Exchange Commission (“SEC”) and the Australian Securities Exchange, including Piedmont’s most recent filings with the SEC. The forward-looking statements, projections and estimates are given only as of the date of this presentation and actual events, results, performance and achievements could vary significantly from the forward-looking statements, projections and estimates presented in this presentation. Readers are cautioned not to put undue reliance on forward-looking statements. Piedmont disclaims any intent or obligation to update publicly such forward-looking statements, projections and estimates, whether as a result of new information, future events or otherwise. Additionally, Piedmont, except as required by applicable law, undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of Piedmont, its financial or operating results or its securities.
This announcement has been approved for release by the Company’s CEO, Mr. Keith Phillips.
For further information, contact:
Keith D. Phillips
President & CEO
T: +1 973 809 0505
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Brian Risinger
Vice President – Corporate Communications
T: +1 704 910 9688
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Distribution dates and amounts announced for TYG, NTG, TTP, NDP, TPZ and TEAF
OVERLAND PARK, KS--(BUSINESS WIRE)--TortoiseEcofin and the Board of the closed-end funds announce several actions to improve shareholder value for its closed-end funds:
Tortoise Energy Infrastructure Corp. (NYSE: TYG)
Tortoise Midstream Energy Fund, Inc. (NYSE: NTG)
Tortoise Pipeline & Energy Fund, Inc. (NYSE: TTP)
Tortoise Energy Independence Fund, Inc. (NYSE: NDP)
Tortoise Power and Energy Infrastructure Fund, Inc. (NYSE: TPZ)
Ecofin Sustainable and Social Impact Term Fund (NYSE: TEAF)
TTP and NDP Status Update
Following the proposal to merge the two funds, management and the Board concluded that TTP and NDP will remain separate funds, each continuing to be managed under their existing strategies.
NDP invests primarily in North American energy companies that engage in exploration and production of crude oil, natural gas and related essential commodities, while TTP invests primarily in pipeline companies that transport these products. The management team and the Board maintain full conviction in the energy sector and believe it will continue to be essential to our everyday needs. They also believe that the companies in which the funds invest will meaningfully contribute in the energy transition with new projects and by repurposing existing assets to support cleaner energy sources. Learn more from the portfolio managers in these short videos: TTP, NDP.
The Board also approved an increase to TTP’s quarterly distribution by 131.3% and to reinstate a quarterly distribution for NDP. Additionally, TTP and NDP adopted managed distribution policies resulting in a NAV-based distribution, similar to the NAV-based distribution policies previously announced for TYG and NTG. The annualized distribution rate will be reviewed on a semi-annual basis in February and August each year and is expected to equal at least 6% of the average NAV per share for the previous fiscal semi-annual period.
NAV-based distributions align with the goal of maximizing NAV and provides the portfolio management team the flexibility to own investments with the most compelling total return potential. This formulaic and disciplined approach decouples distribution decisions from distributable cash flow and tracks NAV performance. Net cash flow not distributed can be used to fund share repurchases, reinvest in portfolio securities or reduce leverage.
Tortoise Capital Advisors, L.L.C., the adviser to TTP and NDP, has voluntarily agreed, effective September 1, 2021, to reimburse each fund for their Operating Expenses in order to ensure that Operating Expenses do not exceed 1.35% of average daily managed assets for each fund. In its sole discretion and at any time, the funds’ adviser may elect to extend, terminate or modify its temporary expense reimbursement upon written notice.
TPZ Distribution
The Board approved the adoption of a managed distribution policy and an increase of 20.0% to the monthly distribution for TPZ. The annualized distribution rate will be reviewed on a semi-annual basis in February and August each year and is expected to equal at least 5% of the average NAV per share for the previous fiscal semi-annual period.
TYG and NTG Distributions Increase
In line with the funds’ NAV-based distribution polices that were introduced in July 2020 with the goal of maximizing NAV, the Board approved an increase to TYG and NTG distributions for the third consecutive quarter. TYG and NTG quarterly distributions for the third fiscal quarter increased by 7.4% and 6.9%, respectively. Distribution amounts are generally expected to fall in the range of 5% to 7% of trailing average NAV. Net cash flow not distributed can be used to fund share repurchases, reinvest in portfolio securities or reduce leverage.
TEAF will maintain its current distribution and the Board will review once the fund achieves its long-term portfolio allocation targets.
Distributions Amounts and Dates
Fund |
Ticker |
Distribution Amount |
Distribution Policy |
Distribution Frequency |
Tortoise Energy Infrastructure Corp. |
TYG |
$0.365 |
NAV-based |
Quarterly |
Tortoise Midstream Energy Fund, Inc. |
NTG |
$0.385 |
NAV-based |
Quarterly |
Tortoise Pipeline & Energy Fund, Inc. |
TTP |
$0.370 |
NAV-based |
Quarterly |
Tortoise Energy Independence Fund, Inc., |
NDP |
$0.310 |
NAV-based |
Quarterly |
Tortoise Power and Energy Infrastructure Fund, Inc. |
TPZ |
$0.060 |
NAV-based |
Monthly |
Ecofin Sustainable and Social Impact Term Fund |
TEAF |
$0.075 |
|
Monthly |
TYG, NTG, TTP and NDP quarterly distributions are payable on August 31, 2021 to shareholders of record on August 24, 2021. TPZ is expected to continue to declare distributions monthly, with the August distribution payable on August 31, 2021 to shareholders of record on August 24, 2021. TEAF monthly distributions are payable on September 30, 2021, October 29, 2021 and November 30, 2021 to shareholders of record on the respective dates of September 23, 2021, October 22, 2021 and November 23, 2021.
For book purposes, the source of distributions for TYG and NTG is estimated to be 100% return of capital, and the source of distributions for NDP is estimated to be approximately 10 to 20% ordinary income, with the remainder as return of capital and TEAF is estimated to be approximately 90 to 100% ordinary income, with the remainder as return of capital. For tax purposes, the characterization will not be made until determination of earnings and profits after year end.
You should not draw any conclusions about TTP’s or TPZ’s investment performance from the amount of these distributions or from the terms of TTP’s or TPZ’s distribution policy.
TTP and TPZ estimate that they have distributed more than their income and net realized capital gains; therefore, a portion of the distribution may be return of capital. A return of capital may occur, for example, when some or all of the money that you invested in TTP and TPZ is paid back to you. A return of capital distribution does not necessarily reflect TTP’s and TPZ’s investment performance and should not be confused with “yield” or “income.”
TTP and TPZ will report the sources for their distributions at the time of the payment in the applicable Section 19(a) Notice. The amounts and sources of distributions TTP and TPZ report are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon TTP’s and TPZ’s investment experience during the remainder of their fiscal years and may be subject to changes based on tax regulations.
Operating Expenses excludes taxes, leverage/borrowing costs, interest expense, brokerage commissions, acquired fund fees and expenses, expenses incurred in connection with any merger or reorganization, or extraordinary expenses.
About TortoiseEcofin
TortoiseEcofin focuses on essential assets – those assets and services that are indispensable to the economy and society. We strive to make a positive impact on clients and communities by investing in energy infrastructure and the transition to cleaner energy and by providing capital for social impact projects focused on education and senior living. TortoiseEcofin brings together strong legacies from Tortoise, with expertise investing across the energy value chain for more than 20 years, and from Ecofin, which unites ecology and finance and has roots back to the early 1990s. For additional information, please visit www.TortoiseEcofin.com.
Tortoise Capital Advisors, L.L.C. (also dba TCA Advisors) (“TCA”) is the adviser to Tortoise Energy Infrastructure Corp., Tortoise Midstream Energy Fund, Inc., Tortoise Pipeline & Energy Fund, Inc., Tortoise Energy Independence Fund, Inc., Tortoise Power and Energy Infrastructure Fund, Inc. and Ecofin Sustainable and Social Impact Term Fund. Ecofin Advisors Limited is a sub-adviser to Ecofin Sustainable and Social Impact Term Fund.
For additional information on these funds, please visit cef.tortoiseecofin.com.
Safe harbor statement
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains certain statements that may include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, included herein are "forward-looking statements." Although the funds and TCA believe that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the fund’s reports that are filed with the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required by law, the funds and TCA do not assume a duty to update this forward-looking statement.
Maggie Zastrow, (913) 981-1020
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Xos’ planned delivery of 120 electric vehicles to FedEx Corp Independent Service Providers (ISPs) in 2021 and 2022 to support further electrification of FedEx fleet
LOS ANGELES & BOCA RATON, Fla.--(BUSINESS WIRE)--Xos, Inc. (“Xos”), a leading manufacturer of fully electric Class 5 to Class 8 commercial vehicles that has announced a planned business combination with NextGen Acquisition Corporation (NASDAQ: NGAC, “NextGen”), today announced that Xos has signed agreements with FedEx Ground operators to deliver 120 zero emission electric trucks across 35 different FedEx Ground operators based in California, New York, New Jersey, Massachusetts, and Texas. Delivery of these vehicles is expected to occur in Q4 2021 and 2022. Discussions regarding additional vehicle deliveries in 2022 and 2023 to these customers, as well as additional FedEx Ground operators in these and other states, are ongoing.
“Working with FedEx Ground operators, who operate every day within FedEx’s global delivery and logistics network, both validates our business model and our innovative, cost-efficient, zero emission and operationally ready products, which are tailored for commercial fleets focusing on last-mile delivery,” said Dakota Semler, Xos’ Co-Founder and CEO. “We are pleased to support the electrification of FedEx’s medium duty pickup-and-delivery fleet across several U.S. states as FedEx continues to advance sustainability efforts and work toward achieving carbon emissions goals across its global business. We are thrilled with our current FedEx Ground relationships and look forward to expanding them further among the 4,000 FedEx Ground operators who support the FedEx network.”
“We are delighted to provide our FedEx Ground customers with our best-in-class electric trucks. We look forward to continuing to support them in meeting their site infrastructure and charging needs at vehicle depots in addition to offering Fleet-as-a-Service and financing alternatives to streamline their purchasing, maintenance, and operating experience,” said Gio Sordoni, Xos’ Co-Founder and COO.
Shareholder Meeting Set for August 18, 2021
NextGen recently announced that its extraordinary general meeting of shareholders to approve, among other things, the proposed business combination, will be held in a virtual format and physically at the offices of Skadden, Arps, Slate, Meagher & Flom LLP located at One Manhattan West, New York, NY 10001 on August 18, 2021 at 9:00 a.m. Eastern Time or virtually via live webcast at https://www.cstproxy.com/nextgenacq/sm2021. The Board of Directors of NextGen recommends that shareholders of record who owned NextGen’s shares as of July 2, 2021 – even if they have since sold their shares – vote by 11:59 p.m. Eastern Time on August 17, 2021 to ensure the deal proceeds in a timely manner. More information on how to vote can be found at https://www.nextgenacq.com/vote.html.
About Xos, Inc.
Xos, Inc. is an electric mobility company dedicated to making fleets more efficient. Xos designs and develops fully electric battery mobility systems specifically for commercial fleets. The company’s primary focus is on medium- and heavy-duty commercial vehicles that travel on “last mile” routes (i.e. predictable routes that are less than 200 miles per day). The company leverages its proprietary technologies to provide commercial fleets zero emission vehicles that are easier to maintain and more cost-efficient on a total cost of ownership (TCO) basis than their internal combustion engine and commercial EV counterparts. For more information, please visit www.xostrucks.com.
About NextGen
NextGen Acquisition Corporation is a blank check company whose business purpose is to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. NextGen is led by George Mattson, a former Partner at Goldman, Sachs & Co., and Gregory Summe, former Chairman and CEO of Perkin Elmer and Vice Chairman of the Carlyle Group. NextGen is listed on NASDAQ under the ticker symbol "NGAC." For more information, please visit www.nextgenacq.com.
IMPORTANT LEGAL INFORMATION
Additional Information and Where to Find It
This document relates to a proposed transaction between Xos and NextGen. This document is not a proxy statement or solicitation of a proxy, consent or authorization with respect to any securities or in respect of the potential transaction and shall not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. In connection with the proposed transaction, NextGen filed a registration statement on Form S-4 with the SEC on May 14, 2021, as amended on June 25, 2021, July 22, 2021, July 28, 2021 and July 29, 2021, which was declared effective by the SEC on July 30, 2021 and includes a document that serves as a prospectus and proxy statement of NextGen (the “proxy statement/prospectus”). A definitive proxy statement/prospectus has been mailed to all NextGen’s shareholders of record as of July 2, 2021, the record date established for the extraordinary general meeting of shareholders relating to the proposed transaction. NextGen also will file other documents regarding the proposed transaction with the SEC. Before making any voting decision, investors and security holders of NextGen are urged to read the registration statement, the proxy statement/prospectus included therein and all other relevant documents filed or that will be filed with the SEC in connection with the proposed transaction as they become available because they will contain important information about the proposed transaction. Investors and security holders may obtain free copies of the registration statement, the proxy statement/prospectus included therein and all other relevant documents filed or that will be filed with the SEC by NextGen through the website maintained by the SEC at www.sec.gov. The documents filed by NextGen with the SEC also may be obtained free of charge at NextGen’s website at https://www.nextgenacq.com/nextgen-i.html or upon written request to 2255 Glades Road, Suite 324A, Boca Raton, Florida 33431.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the federal securities laws with respect to the proposed transaction between Xos and NextGen, including statements regarding the anticipated timing of the transaction and the products, customers and markets of Xos. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: (i) the risk that the transaction may not be completed in a timely manner or at all, which may adversely affect the price of NextGen’s securities, (ii) the risk that the transaction may not be completed by NextGen’s business combination deadline and the potential failure to obtain an extension of the business combination deadline if sought by NextGen, (iii) the failure to satisfy the conditions to the consummation of the transaction, including the adoption of the Merger Agreement by the shareholders of NextGen, the availability of the minimum amount of cash available in the trust account in which substantially all of the proceeds of NextGen's initial public offering and private placements of its warrants have been deposited following redemptions by NextGen’s public shareholders and the receipt of certain governmental and regulatory approvals, (iv) the lack of a third party valuation in determining whether or not to pursue the proposed transaction, (v) the inability to complete the PIPE investment in connection with the transaction, (vi) the occurrence of any event, change or other circumstance that could give rise to the termination of the Merger Agreement, (vii) the effect of the announcement or pendency of the transaction on Xos’s business relationships, operating results, and business generally, (viii) risks that the proposed transaction disrupts current plans and operations of Xos and potential difficulties in Xos employee retention as a result of the transaction, (ix) the outcome of any legal proceedings that may be instituted against Xos or against NextGen related to the Merger Agreement or the proposed transaction, (x) the ability to maintain the listing of NextGen’s securities on a national securities exchange, (xi) the price of NextGen’s securities may be volatile due to a variety of factors, including changes in the seven competitive and regulated industries in which NextGen plans to operate or Xos operates, variations in operating performance across competitors, changes in laws and regulations affecting NextGen’s or Xos’ business, Xos’ inability to implement its business plan or meet or exceed its financial projections and changes in the combined capital structure, (xii) the ability to implement business plans, forecasts, and other expectations after the completion of the proposed transaction, and identify and realize additional opportunities, and (xiii) the risk of downturns and a changing regulatory landscape in the highly competitive electric vehicle industry. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of NextGen’s registration statement on Form S-1 (File No. 333-248921), the registration statement on Form S-4 discussed above, the definitive proxy statement/prospectus and other documents filed or that may be filed by NextGen from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward looking statements, and Xos and NextGen assume no obligation and do not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Neither Xos nor NextGen gives any assurance that either Xos or NextGen, or the combined company, will achieve its expectations.
Xos Investor Relations
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Xos Media Relations
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NextGen
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Escalante Power Project to Convert Coal-fired Power Plant to Clean Hydrogen
LEAWOOD, Kan.--(BUSINESS WIRE)--Tallgrass Energy, LP announced today that it has closed on the purchase of a 75 percent membership interest in Escalante H2 Power (EH2 Power). EH2 Power is developing a first-of-its-kind hydrogen-to-power project at Tri-State Generation and Transmission Association, Inc.’s Escalante Generating Station near Prewitt, New Mexico, by converting the retired coal-fired power plant into a clean hydrogen-fired power generating facility.
“Our acquisition of a 75 percent membership interest in EH2 Power further advances our overall hydrogen development and clean energy infrastructure strategy,” said Tallgrass CEO William R. Moler. “We believe the Escalante Station is uniquely positioned to be a proving ground for hydrogen-to-power in the U.S. We look forward to working with Tri-State, Newpoint, the local community, and stakeholders throughout New Mexico on this exciting project.”
Tallgrass acquired its membership interest in EH2 Power from Denver-based Brooks Energy Company. The ownership of Newpoint Gas, LLC will retain a 25 percent membership interest in EH2 Power and continue to partner with Tallgrass in EH2’s development of the hydrogen conversion project at the Escalante Station.
"This marks another step forward for New Mexico’s push into a thriving clean energy future, one that builds new opportunities for communities transitioning toward new horizons," said Gov. Michelle Lujan Grisham. "New Mexico has what it takes to become an international hydrogen hub, furthering our decarbonization and climate efforts while creating quality jobs for New Mexicans."
“The EH2 Power team has brought tremendous vision and drive to the conversion project, and the State of New Mexico’s leadership in clean hydrogen innovation is exciting for development at Escalante and across the state,” said Dwayne Phillips, Vice President - Hydrogen for Tallgrass. “We are very appreciative of the Brooks Energy team, and we look forward to working with our partners at Newpoint to build on the successes they have achieved with Brooks.”
“We look forward to working with the Tallgrass team on transforming Escalante into a clean hydrogen hub,” said Wiley Rhodes, CEO of Newpoint Gas, LLC. “Building on Newpoint’s work, Tallgrass brings strong technical expertise to the project. Of equal importance, Newpoint and Tallgrass share the goal of advancing next-generation hydrogen technologies and offering critical decarbonized energy solutions through the Escalante Station.”
For more information about Tallgrass, visit www.tallgrassenergy.com.
Cautionary Note Concerning Forward-Looking Statements
Disclosures in this press release contain forward-looking statements. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that management expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the successful conversion of the Escalante Station into a clean hydrogen-fired power generating facility and a hydrogen hub; the expected benefits of the conversion and from operating the Escalante Station as a proving ground for hydrogen-to-power technology; the timing of the completion of the conversion project; and the expected benefits from emerging energy technologies involving hydrogen and other decarbonized energy. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Tallgrass, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements, and other important factors that could cause actual results to differ materially from those projected, including those set forth in reports and financial statements made available by Tallgrass. Any forward-looking statement applies only as of the date on which such statement is made, and Tallgrass does not intend to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
Media and Trade Inquiries
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CHICAGO--(BUSINESS WIRE)--Energy Capital Ventures (ECV), the only strategic venture capital fund purpose-built for driving environmental, social and governance innovation and digital transformation for the natural gas distribution industry, today announced it has closed on $45 million in capital commitments from five leading publicly-traded natural gas utility and multi-line utility companies.
ECV will concentrate on sustainability, reliability and resilience imperatives for the natural gas utility sector. The fund will work collaboratively with its corporate limited partners to identify the top founders and innovators that bring strategic value to its limited partners. This collaborative approach will also provide value-add support and industry access to ECV’s portfolio companies.
This is the first tranche of capital toward a larger fund targeting additional natural gas and diversified utilities, companies participating in and along the natural gas value chain, as well as traditional institutional limited partners who appreciate the ESG imperatives of the fund and the principals’ strong track record, according to ECV managing general partner Vic Pascucci III.
“I’m excited and honored to support our fantastic limited partners in their innovation journeys as we look to the entrepreneurial community to solve their ESG and digital transformation strategic priorities,” Pascucci said. “The opportunity to provide a platform to foster innovation and collaboration for our strategic partners who play such a critical role in our country’s energy transformation is truly amazing.”
Pascucci, a successful venture capitalist and top-performing investor, has led numerous investments in multibillion-dollar companies and category-defining startups. His previous investments include Personal Capital (acquired by Empower Retirement), ID.me, MX, Extend, TRUECar (NASDAQ: TRUE), Care.com (NYSE: CRCM), Coinbase (NASDAQ: COIN) and Clearcover.
Leading Utility Companies Join Fund as Limited Partners
The cornerstone of ECV’s partnership model is customization of the engagement to each limited partner’s strategic priorities, internal processes, resource availability, culture and business imperatives. The founding limited partners are Avista Utilities (NYSE: AVA), Black Hills Corporation (NYSE: BKH), NiSource (NYSE: NI), Southwest Gas (NYSE: SWX) and Spire (NYSE: SR). ECV has a tightly integrated and customized customer service approach toward advancing the industry. With leading natural gas utility companies as limited partners, ECV provides entrepreneurs with immediate access to commercial opportunities and first-hand industry insight.
“Innovation within the energy industry is essential to achieving a clean energy future. New technologies must emerge and evolve to propel us forward. Innovation is in Avista’s DNA. We’ve been innovating for more than 130 years, most recently through Avista’s Energy Innovation Lab,” said Avista President and CEO Dennis Vermillion. “By investing in Energy Capital Ventures, we’re also supporting and enabling the innovation of other companies that could bring new technologies to market to help advance our energy industry. By working together, we can move forward toward the clean energy future we all want.”
“Continually innovating to deliver leading technologies is critical to being ready to serve the future energy needs of our customers and communities,” said Linn Evans, President and CEO of Black Hills Corp. “This collaborative investment in Energy Capital Ventures in a cleaner energy future through safe and reliable natural gas technologies aligns with our ambition to make tomorrow even better than today.”
“As we prepare for the energy needs of future generations, investment in innovation is fundamental. At NiSource, we take a balanced approach to sustainability, which enables our customers to pursue their energy preferences safely, reliably, and affordably,” NiSource President and CEO Joe Hamrock said. “A fund dedicated to the ESG goals and technology advancement of our industry is a transformative enabler that helps us partner with innovative startups to serve our customers and community better.”
“Southwest Gas is committed to helping our customers and the communities we serve to build a sustainable energy future that is clean, affordable and reliable. We know natural gas service will have an essential role in our nation’s energy future and are proud to fund innovations that will propel our industry forward sustainably,” said John P. Hester, President and CEO of Southwest Gas. “Joining forces with industry peers through ECV, we believe our investment will lead to transformational technologies which will benefit both the environment and customers for generations to come.”
“Advancing through innovation is how we work every day at Spire. That’s why we are excited to be a part of ECV, supporting breakthrough innovations to transform how energy is delivered to customers and truly advance our industry,” said Spire CEO Suzanne Sitherwood. “By matching innovative entrepreneurs with established corporations, ECV can push the boundaries of what’s possible in delivering the affordable, reliable, clean natural gas customers depend on.”
ECV General Partners and Strategic Advisory Board Feature Notable Names in the Utility Sector
Joining Pascucci as general partners are Jeff Yingling and Ray O’Connor, two career-long energy sector investment bankers with billions of dollars in completed transaction volume combining for over 70 years of experience. Also joining as a general partner is successful Insurtech investor Rick Viton, who is also a partner with IA Capital, one of the largest strategic Insurtech fund managers with over 15 insurance company limited partner investors. ECV will leverage IA Capital’s strategic investment philosophy as well as the numerous synergistic relationships, technologies, market dynamics and innovation trends between Insurtech/Fintech and the utility industry, including AI technology for workforce and industrial safety, leak detection, IoT, risk management, cyber and climate risk solutions.
ECV has assembled a diverse and accomplished Strategic Board of Advisors to drive natural gas ESG innovation and digital transformation. ECV’s Advisors include active and retired corporate executives, regulators, global energy consultants and civic leaders, including:
About Energy Capital Ventures
Energy Capital Ventures (ECV) is a strategic venture capital firm focusing on the ESG imperatives, clean energy solutions and digital transformation of the natural gas utility sector. ECV specializes in decarbonization, renewable natural gas and other sustainability solutions for natural gas local distribution companies. Headquartered in Chicago with a presence in New York, ECV takes a customer-centric, ESG perspective on innovation for the industry as it deals with impending paradigm shifts. Learn more at energycapitalventures.com.
Treble
Ethan Parker
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